[ybitz]

Looks like he was “smart” enough to mortgage the whole amount; otherwise he would’ve lost his down payment when he walked away.
I think this guy took a risky bet and lost. I certainly wouldn’t have done what this guy did, but I don’t think it was “stupid”. My parents stretched financial to buy their first house (and broke the “golden rules”) when they first got married, and now it’s all paid off and it worked out really well for them. They saved tons of money by not buying a starter home and upgrading later, and bought their dream home right off the bat. I think the golden rules, like all generalizations, are just guideline/suggestions. Only you know your own risk tolerance level best.

[ybitz]

Looks like he was “smart” enough to mortgage the whole amount; otherwise he would’ve lost his down payment when he walked away.
I think this guy took a risky bet and lost. I certainly wouldn’t have done what this guy did, but I don’t think it was “stupid”. My parents stretched financial to buy their first house (and broke the “golden rules”) when they first got married, and now it’s all paid off and it worked out really well for them. They saved tons of money by not buying a starter home and upgrading later, and bought their dream home right off the bat. I think the golden rules, like all generalizations, are just guideline/suggestions. Only you know your own risk tolerance level best.

[ybitz]

Looks like he was “smart” enough to mortgage the whole amount; otherwise he would’ve lost his down payment when he walked away.
I think this guy took a risky bet and lost. I certainly wouldn’t have done what this guy did, but I don’t think it was “stupid”. My parents stretched financial to buy their first house (and broke the “golden rules”) when they first got married, and now it’s all paid off and it worked out really well for them. They saved tons of money by not buying a starter home and upgrading later, and bought their dream home right off the bat. I think the golden rules, like all generalizations, are just guideline/suggestions. Only you know your own risk tolerance level best.

[ybitz]

Looks like he was “smart” enough to mortgage the whole amount; otherwise he would’ve lost his down payment when he walked away.
I think this guy took a risky bet and lost. I certainly wouldn’t have done what this guy did, but I don’t think it was “stupid”. My parents stretched financial to buy their first house (and broke the “golden rules”) when they first got married, and now it’s all paid off and it worked out really well for them. They saved tons of money by not buying a starter home and upgrading later, and bought their dream home right off the bat. I think the golden rules, like all generalizations, are just guideline/suggestions. Only you know your own risk tolerance level best.

[ybitz]

[quote=Nor-LA-SD-guy]Geeze scaredy, Don’t you listen to the media ???

I mean they have been saying housing is falling off a cliff again all week,

But listening to two of my buddies up in the L.A. area who lost out on bidding wars they are kind of scratching their heads and saying What ?????

Maybe they know something we don’t though.[/quote]

Right on the mark. The media, and everyone who’s not actually actively house shopping says it’s a great time to buy — how interest rate is low and prices are low. But everyone I know who is actually house hunting knows that prices in many parts of San Diego are still quite high and it’s very hard to get an offer accepted due to bidding wars.

[ybitz]

[quote=Nor-LA-SD-guy]Geeze scaredy, Don’t you listen to the media ???

I mean they have been saying housing is falling off a cliff again all week,

But listening to two of my buddies up in the L.A. area who lost out on bidding wars they are kind of scratching their heads and saying What ?????

Maybe they know something we don’t though.[/quote]

Right on the mark. The media, and everyone who’s not actually actively house shopping says it’s a great time to buy — how interest rate is low and prices are low. But everyone I know who is actually house hunting knows that prices in many parts of San Diego are still quite high and it’s very hard to get an offer accepted due to bidding wars.

[ybitz]

[quote=Nor-LA-SD-guy]Geeze scaredy, Don’t you listen to the media ???

I mean they have been saying housing is falling off a cliff again all week,

But listening to two of my buddies up in the L.A. area who lost out on bidding wars they are kind of scratching their heads and saying What ?????

Maybe they know something we don’t though.[/quote]

Right on the mark. The media, and everyone who’s not actually actively house shopping says it’s a great time to buy — how interest rate is low and prices are low. But everyone I know who is actually house hunting knows that prices in many parts of San Diego are still quite high and it’s very hard to get an offer accepted due to bidding wars.

[ybitz]

[quote=Nor-LA-SD-guy]Geeze scaredy, Don’t you listen to the media ???

I mean they have been saying housing is falling off a cliff again all week,

But listening to two of my buddies up in the L.A. area who lost out on bidding wars they are kind of scratching their heads and saying What ?????

Maybe they know something we don’t though.[/quote]

Right on the mark. The media, and everyone who’s not actually actively house shopping says it’s a great time to buy — how interest rate is low and prices are low. But everyone I know who is actually house hunting knows that prices in many parts of San Diego are still quite high and it’s very hard to get an offer accepted due to bidding wars.

[ybitz]

[quote=Nor-LA-SD-guy]Geeze scaredy, Don’t you listen to the media ???

I mean they have been saying housing is falling off a cliff again all week,

But listening to two of my buddies up in the L.A. area who lost out on bidding wars they are kind of scratching their heads and saying What ?????

Maybe they know something we don’t though.[/quote]

Right on the mark. The media, and everyone who’s not actually actively house shopping says it’s a great time to buy — how interest rate is low and prices are low. But everyone I know who is actually house hunting knows that prices in many parts of San Diego are still quite high and it’s very hard to get an offer accepted due to bidding wars.

[ybitz]

[quote=paranoid]Gary, thanks for the link.
I think the credit is related to the total net tax you owe to colifornia for the year, regardless how much withholding is being taken month by month. For example, for a regular emplyee, a portion of your salary is withheld for each pay-check. if your net tax is $6k for the year, and your accumulated total withholding is $7k, you are still going to get the $3,333 credit for the year, so that your total refund (by april next year) will be (7k-6k) + 3.333k = $4.333k.

Is this correct?[/quote]

Yeah, this is correct. It’s irrelevant how much was withheld; your overall tax liability is the same. As long as your tax liability is over $3333, you’ll get the whole amount.

[ybitz]

[quote=paranoid]Gary, thanks for the link.
I think the credit is related to the total net tax you owe to colifornia for the year, regardless how much withholding is being taken month by month. For example, for a regular emplyee, a portion of your salary is withheld for each pay-check. if your net tax is $6k for the year, and your accumulated total withholding is $7k, you are still going to get the $3,333 credit for the year, so that your total refund (by april next year) will be (7k-6k) + 3.333k = $4.333k.

Is this correct?[/quote]

Yeah, this is correct. It’s irrelevant how much was withheld; your overall tax liability is the same. As long as your tax liability is over $3333, you’ll get the whole amount.

[ybitz]

[quote=paranoid]Gary, thanks for the link.
I think the credit is related to the total net tax you owe to colifornia for the year, regardless how much withholding is being taken month by month. For example, for a regular emplyee, a portion of your salary is withheld for each pay-check. if your net tax is $6k for the year, and your accumulated total withholding is $7k, you are still going to get the $3,333 credit for the year, so that your total refund (by april next year) will be (7k-6k) + 3.333k = $4.333k.

Is this correct?[/quote]

Yeah, this is correct. It’s irrelevant how much was withheld; your overall tax liability is the same. As long as your tax liability is over $3333, you’ll get the whole amount.

[ybitz]

[quote=paranoid]Gary, thanks for the link.
I think the credit is related to the total net tax you owe to colifornia for the year, regardless how much withholding is being taken month by month. For example, for a regular emplyee, a portion of your salary is withheld for each pay-check. if your net tax is $6k for the year, and your accumulated total withholding is $7k, you are still going to get the $3,333 credit for the year, so that your total refund (by april next year) will be (7k-6k) + 3.333k = $4.333k.

Is this correct?[/quote]

Yeah, this is correct. It’s irrelevant how much was withheld; your overall tax liability is the same. As long as your tax liability is over $3333, you’ll get the whole amount.

[ybitz]

[quote=paranoid]Gary, thanks for the link.
I think the credit is related to the total net tax you owe to colifornia for the year, regardless how much withholding is being taken month by month. For example, for a regular emplyee, a portion of your salary is withheld for each pay-check. if your net tax is $6k for the year, and your accumulated total withholding is $7k, you are still going to get the $3,333 credit for the year, so that your total refund (by april next year) will be (7k-6k) + 3.333k = $4.333k.

Is this correct?[/quote]

Yeah, this is correct. It’s irrelevant how much was withheld; your overall tax liability is the same. As long as your tax liability is over $3333, you’ll get the whole amount.

[ybitz]

I think the situation in San Diego and metro areas might be very different than the rest of California. Anecdotal evidence from a friend of mine in Bakersfield suggests that it’s a buyer’s market out there, where San Diego is anything but.

[Author]

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