[WarChestSM]

Back in 2006 or so, I was in college taking a mortgage finance class. Rich was brought in as a guest speaker and I knew right away he was dead right about the bubble. Total breath of fresh air from the two mortgage broker perma-bulls teaching the class.

I moved back to LA and started the “santa monica distress monitor” where I followed the bubble pop in real time for all to see. I deleted the blog long ago but it was a lot of fun, and I have Rich to thank for starting me on the right path.

Fast forward to 2011 and I bought a house in Culver City at little after the bottom. The crummy $800k fixer has just about doubled in value and I can’t thank Rich enough for helping me time a once in a lifetime purchase so well. Cheers!

[WarChestSM]

4. Would be cool to be old and have NO house payment. Even better, would be cool to be young and have NO house payment.

[WarChestSM]

No.

[WarChestSM]

I actually think there is a lot of shadow inventory but in a different way. Around my area in Los Angeles there is extremely limited inventory, yet I keep seeing houses come up for rent. I feel like everyone got the memo on “low inventory equals higher prices”, and thus people are on the margin hanging onto properties and renting them out instead of selling them in hopes of even bigger gains over time…Softer rental prices or much higher interest rates probably would change things but both of those seem to be happening very slowly so far.

[WarChestSM]

Yes, there is a golden rule.

You don’t need any life insurance if you are completely financially independent. If your family can live off of a safe withdrawal rate from your existing assets and doesn’t need your income at all then you should stop paying for life insurance regardless of your feelings, playing the odds, expected value, etc.

Insurance is for things you can’t afford the loss on. Once you can afford the hit, cancel the insurance.

[WarChestSM]

You guys got way off topic. Forget the dogs subject.

MMM is brilliant because he explains what really matters. Happiness. That’s it. But the problem is that people think spending money, convenience, and “luxury” will make them happy.

Even with a paid off house and low property taxes, I couldn’t live on $25k/year. But after reading his blog and soaking it in, I’ve lowered my spending a fair amount and found my happiness level going up. Yes, really.

[WarChestSM]

I’m in Culver City and like it a lot. Everything in LA is based on commute and schools. Manhattan Beach would be great for you based on an easy commute and great public schools…but it is really expensive.

Tons of construction in Playa Vista right now with new condos/apartments/tech offices going up. Lots going on.

For Culver area realtor check out Dannie Cavanaugh. Old time, long standing resident and agent.

Prices are really high right now and the market everywhere is smoking hot. May be best to rent for a while and get a feel for things.

[WarChestSM]

*Update*

Went to lunch with another buddy I hadn’t seen in a while. He and his wife faced a similar situation of owning a condo and wanting to move up. They listed their place and quickly sold it to an all cash buyer who then leased it back to them while they looked for another property to buy. It worked out and they bought a house…but still, seems risky and I don’t like the idea of being out of the market and hoping/needing a good place to come up for sale in a short period of time.

[WarChestSM]

Bring on the bulldozer!

[WarChestSM]

Valencia?! 35 miles outside of downtown LA. So far away and so friggin hot out there! Live 10 miles away and actually have some culture in your life and find a place in or around Culver City. The Expo line goes to downtown from there if you want the public transit option, otherwise the drive ain’t bad. And you are looking at 80 degree days in the summer vs 95 degree days in Valencia.

[WarChestSM]

And I should mention that you will hate your commute to downtown from just about anywhere in the Valley…even with transport options it will be brutal. The weather is also a big deal as it is really hot in the valley in the summer. I would advise ponying up a few extra bucks and staying out of the valley if you can.

[WarChestSM]

I have been running a Santa Monica based bubble blog for 5 years. Just google “santa monica distress monitor”. Anyway, I turned more bullish a few years back and ended up buying in Culver City. I also work in downtown LA and my commute is 10 miles and is against the traffic flow for the most part so it is quick. The light rail just opened as well so you can go that route too. You also get away from LAUSD schools here which is good. $675k is on the lower side for something decent here but there are pockets of Culver City which could work for you in that range. Best of luck.

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