[want a good deal]

“Now we only have one third of the eligible buyers that we had before, and five times as many houses.”

The problem is that doesnt work out. If only 1/3 can qualify why are sales only down 10 – 20% yoy. Can someone explain that to me!

[want a good deal]

What percentage of people can still buy a home based on the new standards. Is anyone writing 100% financing loans anymore? If you got prequalified with them a couple months ago and lock a rate but now you wont qualify under the new standards will they still honor the loan or do you get booted to the curb? This would be in reference to buying a condo that was not yet built but you went into contract with the builder by putting down your 5% non-refundable deposit. Dont worry, I didnt do this, just wondering what affect it will have on the market.

[want a good deal]

Dont know how much this pertains to the conversation but I read in the UT that only 9% of SD County residents make over 75k a year. Even if a lot are 2 income households it seems like thats hard to pay a mortgage on a million $ home. It was a good article talking about the hourglass shape of incomes in the county. The upper incomes are increasing and the lower are too but the middle incomes are stagnant. Good solid middle income jobs are being replaced by lower paying tourism jobs and high paying execs are coming here. Also on the high end education and healthcare is doing well. I had to go to three breakfast joints this morning to find one without a 30 minute wait. People definately are not eating at home. I eat out at least 8 times a week and the restaurant business is good. At least the middle of the road type places. Only eat real high end once a week and they are hit and miss as far as business goes.

[want a good deal]

Well I am new to this but I do understand there is a lot more to it that meets the eye. The big tax benefit comes from writing down your investment while you are in a high tax bracket and either cashing out or having solid retirement income when you are in a lower tax bracket. To get to that point is the math equation to make sure you havent over invested in the property to where you negate the benefit down the road. It seems like rental rates will come up a little and property values will or should come down a lot making it a good time to start thinking about rental property. As with everything you should buy when everyone is running for the hills as long as you are well capitalized and have at least 20 years before you retire. I also realize most people on here will probably be running for the hills until values hit 1996 levels but thats not very realistic.

[want a good deal]

Thanks for the comments. It doesnt seem like you are factoring in appreciation. Keep in mind I understand we have not bottomed out yet. I came up with $300k because that is what I want to pay for condos that now sell for $400 – $450 and it seems you can rent these out for around $2k a month. It seems like if I can break even and have the tax benefit by renting it out for 9-10 months out of the year that would make sense. Am I confused?

[want a good deal]

I take it they must still be making loans or they wouldnt be still around, is this correct?
They did not have rates in the paper just phone numbers beside the different kind of loans.
I am just trying to figure if they go under how it will impact all the people and the property who are in the loan process with them.

[want a good deal]

Wow, that is an amazing article. It is truly amazing how they figure out all these intricate ways to make money. I take it this is what you think may be happening in this case. Do you know if they are actively making loans.

[want a good deal]

How many REOs do they have? I thought some bank gave them a huge cash infusion.

[want a good deal]

They had an ad in todays UT. Thats where I got the 5.75 from. Maybe its only here in SD they are offering it. My other question is if they are the ones writing a lot of the loans for the downtown condo market and the buildings are almost done are they going to still write the loans or are the buyers going to have to go get other financing. Does anyone know what they are charging for jumbo condo loans. It seems the more they pay for money the more the profit gets squeezed.

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