I’m asking about people who I’m asking about people who want to buy a primary home to live in.
Also if you still plan to buy, please share why.
ibjames
September 15, 2008 @
1:51 PM
If I was to buy, it would be If I was to buy, it would be because I am looking in areas that have already deflated a lot (Mira Mesa) the only thing that keeps me from buying is because I think there is a chance that it could go down further..
though as many post on here, it doesn’t seem that MM could go down much further and already is at break even for a lot of properties
though part of me still thinks it could see a decent decrease still.. though I have been known to drink the koolaid
an
September 15, 2008 @
2:01 PM
I am still looking to buy in I am still looking to buy in the next 6 months, if I can find a place I like at the price I want. It will be a SFR in Mira Mesa. At today’s price, mortgage would be a couple hundred more than what I’m paying for my rent (2 bedroom apartment). It will be a home and I can easily afford it on single income. If you compare rent vs interest only (throw away $ vs throw away $) then buying a house is actually cheaper than rent of a 2 bedroom apartment.
ibjames
September 15, 2008 @
2:15 PM
AN, you have an email address AN, you have an email address I can get a hold of you at?
an
September 15, 2008 @
2:50 PM
ibjames, check your PM. ibjames, check your PM.
kev374
September 15, 2008 @
2:54 PM
i’m not in any hurry to buy, i’m not in any hurry to buy, i’ve waited so long what’s another year or two. This is THE opportunity to exercise some patience and buy low.
markzuber
September 15, 2008 @
3:17 PM
Yes, if you compare rent vs Yes, if you compare rent vs interest only mortgage, buying a house is not much more expensive than renting.
I have been paying for my 2 bedroom apartment about $1800 monthly. At the end of August 2008 I purchased brand new house for $420K with a down payment of 20%. My fixed interest only loan mortgage payment is $1855.
I am losing interest income on my down payment, but there will be some tax savings and I will get $7500 tax rebate for first time home buyer.
cr
September 15, 2008 @
3:18 PM
I’m in the wait and see, I’m in the wait and see, where I’ve been for 2 years. This only confirms my decision.
What I’m waiting for however is hard to describe, but I’m basically waiting for everyone to say, oh no, don’t buy a house, the market will still go down for a long time.
I don’t hear that yet, and I don’t think it will until we are so far past what everyone thought would be a bottom, that buying a house looks as foolish as not buying did 2 years ago.
I am starting to hear now is a good time to buy because prices fell 30%, but I’d be upside down in a year or two kicking myself for listening to an “expert”.
Most people don’t realize prices need to fall another 30% to be where they should be. It’s at that point I expect to be told not to buy, and when I probably will.
Unless I lose my job.
temeculaguy
September 15, 2008 @
4:03 PM
I was firing off lowballs as I was firing off lowballs as of yesterday, now I want to see how the next 3 months plays out. All my offers are on shorts so I’m not obligated, I think we are going to see some serious chunks come out of the prices in the next few months and the downpayment requirements will rise, while employment falls, the perfect storm is brewing. Hope you piggy’s saved your nickels, there are going to be some sweet deals but you will need some cash in order to join this party.
The economy just reached the tipping point, the ride down begins now, keep yours eyes peeled, the signpost for the market bottom can be hard to see.
Eugene
September 15, 2008 @
4:36 PM
I have an offer on a short I have an offer on a short sale working its way through the pipeline. If it falls through, I have a couple more properties in mind. I’m allowing for 20% appreciation since 2000, which is below fundamentals but would compensate me for the risk of buying during a downtrend and a recession. I’m not in a hurry to buy but I’m on the lookout for good deals.
I think that we’re 3-6 months away from the housing bottom & the stock market bottom.
davelj
September 15, 2008 @
5:35 PM
I just closed on a I just closed on a foreclosure in Imperial Beach (just west of the 5). It’s not a primary residence or an investment property (it’s not for me – long story that I won’t go into).
Paid $155K (post renovations) for 4bed/2bath 1350 sq.ft. condo. Sold for $385K in 2005. It would rent for $1500-$1600/month, for what it’s worth. You can do the math.
Will it go lower? Sure, probably. A lot lower? Probably not, but I don’t care. Had to solve a problem and it works for all concerned.
Would I have bought it as an investment (if I were inclined to do such things)? No, not yet. But another 10%-20% lower, probably.
temeculaguy
September 15, 2008 @
10:27 PM
davelj, actually those davelj, actually those numbers support an excellent rent nuetral investment (the condo hoa notwithstanding), if you can get another, do so. Hoping for better numbers than 100x rent may be too optimistic, even in down markets they are rare and anything in the 2 digit rent multiplier is an overcorrection bargain. If you can honestly get 1500 rent on 150k it’s rated as a “buy”. If it were in another area, using the same numbers, lets say it was in carmel valley and would fetch 2700 rent and could be bought for 270k, you’d have to beat people to get to it. Rentals in marginal areas usually pencil out better yet they seem to find fewers takers. If you do find 1500/mo rentals for 125k, run don’t walk, because it won’t last.
CA renter
September 16, 2008 @
2:30 AM
We’re waiting for pre-2001 We’re waiting for pre-2001 prices, if not better, in the “good” areas before we buy.
Been waiting and renting since 2004, so a couple/few more years really won’t hurt us.
IMHO, we will not see positive price appreciation until at least 2012, if then. It’s possible we don’t see peak prices for decades to come.
It’s all about the credit markets and how far back they’ll unwind…1982, anyone???
Enorah
October 7, 2008 @
3:16 PM
temeculaguy wrote:I was [quote=temeculaguy]I was firing off lowballs as of yesterday, now I want to see how the next 3 months plays out. All my offers are on shorts so I’m not obligated, I think we are going to see some serious chunks come out of the prices in the next few months and the downpayment requirements will rise, while employment falls, the perfect storm is brewing. Hope you piggy’s saved your nickels, there are going to be some sweet deals but you will need some cash in order to join this party.
The economy just reached the tipping point, the ride down begins now, keep yours eyes peeled, the signpost for the market bottom can be hard to see.[/quote]
No way, man!
I called tipping point last august 2007
lol
University City Renter
October 7, 2008 @
4:27 PM
Our plan now is to buy in Our plan now is to buy in Dec. 2010, hoping to get the best deal with it being the beginning of winter, end of the year, etc. We’d like to buy a SFH in Mira Mesa, RB, RP – this area of SD. But, we could be enticed by a nice 3 bd town home/condo in UTC if the price was right. We have been renting and saving for 5 years now in SD, waiting for something we liked and can afford. I agree don’t catch a falling knife but there just comes a time when you no longer can stand to wait & get onto the next stage of your life (buy a 2nd car, get nice furniture, have kids, etc.).
We rent right now so our offer would be without contingencies. For the price we will be looking at, our down payment would be >30% by then. Given that and the time of year we want to buy, do you think we will get an accepted low-ball offer (10-15 %)? Our credit is fine.
I have noticed some beautiful homes for sale in Chula Vista lately. After the down payment, our payments would only be a few hundred more than we pay now for a 1B 1 B apartment in UTC. I am tempted! The problem is I work in La Jolla and that’s not going to change. What do you think about that commute every day? Would it be worth it to live in a really beautiful house?
HarryBosch
October 7, 2008 @
6:14 PM
23109VC. The other option you 23109VC. The other option you have is to short sell your house. That way you avoid the ugly stain of foreclosure on your credit report and it is a more noble (honorable?) exit than just walking away. I live in Temecula and short sold my house earlier this year.
I short sold it for $150/sqft and lost money. If I had known then what I know now I might have simply stopped paying. But what is really sad is that, today, in my neighborhood, similar houses are being sold for $110/sqft.
I feel bad for the person who bought my house – they’ve lost about $100K on this house in less than a year. Had I stayed and tried to tough it out I would be upside down another $100K by now. Unbelievable but true.
patientrenter
October 7, 2008 @
6:20 PM
University City: “The problem University City: “The problem is I work in La Jolla and that’s not going to change. What do you think about that commute [Chula Vista]every day? Would it be worth it to live in a really beautiful house?”
No.
Unless you place little value on your free time.
Anonymous
September 16, 2008 @
10:02 AM
Yes, if you compare rent vs Yes, if you compare rent vs interest only mortgage, buying a house is not much more expensive than renting.
I’m too conservative to purchase a house with an interest only loan. I don’t like the higher interest rates they command, and I do want to pay the house off. Secondly, the $7500 tax rebate is a loan that must be repaid to the government.
an
September 16, 2008 @
10:43 AM
JordanT wrote:I’m too [quote=JordanT]I’m too conservative to purchase a house with an interest only loan. I don’t like the higher interest rates they command, and I do want to pay the house off. Secondly, the $7500 tax rebate is a loan that must be repaid to the government.[/quote]
I don’t know about the other poster, but for me, when I compare rent vs interest only, it doesn’t mean I’ll be getting an interest only. I will be getting a 30 year fixed. I’ll take the interest I can get w/ a 30 year fixed and 20% down, then use that rate to calculate the the payment if I would put 0% down and an interest only loan w/out PMI. That way, it’ll be more of an apple to apple comparison when comparing vs rent.
ibjames
September 16, 2008 @
11:46 AM
AN.. my private messages is AN.. my private messages is jacked up or something.. it shows up blank.
HP is laying off 24,600 HP is laying off 24,600 jobs.
The tech layoffs are occurring in earnest.
When jobs are scarce, there will be few buyers.
ibjames
September 16, 2008 @
11:54 AM
patientlywaiting wrote:HP is [quote=patientlywaiting]HP is laying off 24,600 jobs.
The tech layoffs are occurring in earnest.
When jobs are scarce, there will be few buyers.
[/quote]
Is that 24,600 in San Diego?
fm
September 16, 2008 @
10:40 PM
ibjames [quote=ibjames][quote=patientlywaiting]HP is laying off 24,600 jobs.
The tech layoffs are occurring in earnest.
When jobs are scarce, there will be few buyers.
[/quote]
Is that 24,600 in San Diego?
[/quote]
I believe it is likely to be mainly EDS people, since HP is acquiring EDS. That would nearly double the number of employees. As far as in San Diego, well I don’t really know, except the inkjet division (which is one of the divisions in SD) makes most of the money.
sdnerd
September 15, 2008 @
2:29 PM
I’m in the wait and see, I’m in the wait and see, although I could see buying in the next 6-12 months.
Not looking to time the very bottom, and the wife pressure builds more and more each year.
We’ve mainly been looking in the East CV & West RB areas. The new construction there has had some pretty heavy price declines, and hopefully some REO’s start start to pop up over the next few months.
So it basically boils down to REO and New Construction activity. Interest rates are coming down, and could possibly fall even further. Just waiting for the price to be right… and waiting… and waiting… 🙂
23109VC
September 16, 2008 @
8:37 PM
hell, i bought a little over hell, i bought a little over a year ago and i’m ready to dump my house, walk away, and just rent.
f*** it. don’t buy. learn from me. i was on this site, people said don’t buy, i bought. shame on me.
peterb
September 16, 2008 @
9:10 PM
The falling knife is getting The falling knife is getting sharper by the day now. Run Forrest, run.
patientlywaiting
September 17, 2008 @
9:26 AM
23109VC wrote:hell, i bought [quote=23109VC]hell, i bought a little over a year ago and i’m ready to dump my house, walk away, and just rent.
f*** it. don’t buy. learn from me. i was on this site, people said don’t buy, i bought. shame on me.[/quote]
23109VC, I remember reading your posts about buying in Temecula.
How much equity do you have left in your house now? How much did your house depreciate in 1 year?
EconProf
September 17, 2008 @
9:35 AM
23109VC: thanks for the 23109VC: thanks for the honesty…that takes courage.
zzz
September 17, 2008 @
10:16 AM
DWCAP I’m in the wait and see DWCAP I’m in the wait and see group. I have been wanting to buy a home for some time now, but I want to buy the “right” home for me that I can either live in for the forseaable future or rent out should I move out of SD. I like many thought the market was way too high and I was unwilling to buy at those levels so since I’ve waited this long, I don’t see why I should hurry now in a declining market. I’m not willing to settle.
I believe there were will be some great deals out there for those of us with enough patience. I’m watching markets such as Mission Hills, Point Loma, Del Mar, Encinitas, Solana Beach and they have not declined at levels that justify my buying. I am not interested in living in Mira Mesa, Escondido, south SD, east county, nor in a condo. I’m not really concerned about interest rates. I agree with those that higher interest rates will just drive home prices down further and it means less competition. I will also borrow far less, so I won’t be rushing to buy even if interest rates start to climb to much higher levels, say 7,8,9%.
I like some do not have pressures or life forces that are really driving me to buy other than the fact that I want to live in a home I own versus renting. So I’m less emotionally attached to owning a home than some.
So I’m waiting and seeing what happens to the broader economy, our financial system, the housing market, and decide whether to make the plunge.
Eugene
September 17, 2008 @
12:07 PM
23109VC wrote:hell, i bought [quote=23109VC]hell, i bought a little over a year ago and i’m ready to dump my house, walk away, and just rent.
f*** it. don’t buy. learn from me. i was on this site, people said don’t buy, i bought. shame on me.[/quote]
At least you bought with 100% financing. You have nothing to lose except your credit rating. Also IIRC your payments are comparable with what it would cost to rent a comparable house. As long as you like the area and the house, and you don’t have to move, you’re not in such a bad situation.
peterb
September 17, 2008 @
12:35 PM
There seems to be quite a bit There seems to be quite a bit of comparison as to the rent/buy costs. I would be careful here as these are not numbers that cant change. If unemployment keeps growing like it is, rents may be headed down. If this is the case, you would have to recalculate. This is far from a static environment right now. Give it a little time to see what shakes out. 6 months, maybe 12.
23109VC
October 7, 2008 @
12:00 PM
esmith wrote:23109VC [quote=esmith][quote=23109VC]hell, i bought a little over a year ago and i’m ready to dump my house, walk away, and just rent.
f*** it. don’t buy. learn from me. i was on this site, people said don’t buy, i bought. shame on me.[/quote]
At least you bought with 100% financing. You have nothing to lose except your credit rating. Also IIRC your payments are comparable with what it would cost to rent a comparable house. As long as you like the area and the house, and you don’t have to move, you’re not in such a bad situation.
[/quote]
That’s partially true… I bought with 100% so if I did just walk away and dump it, all I lose is my credit rating. I have a guy telling me that if I do dump and walk, I could actually probably stay for 6-12 months before they booted me out – so in reality I could pocket all the money I *would* pay to rent/mortgage befoe I walk.. so I could walk..but stall/stay as long as possible to bank $$$.
but if I do stay – my monthly loan payments are MORE than pure rent. my loan is a 30 yr fixed, int rate is so-so.. if you look at the interest I pay per month, factor in the write off I get, I’m paying about what i would pay in rent to get another house – but if you add in the principal reduction, and HOA – i’m paying more.
I think all in all, my monthly nut is about $3200. that’s on a 1900 sq ft house in Harveston.
I could rent something for $2000 that is quite a bit larger and similar in “nice” upgrades.
factor in my tax break for int write off, HOAs I pay, and I think if I just walked out and turned into a renter, I could pocket at least $500-600/month.
the money right now that goes to “principal” reduction is basically being pissed away, because it’s going to take a decade before my house returns to it’s purchase price level…
at this point, i’m SERIOUSLY thinking of just stopping payments and see if the bank will at least renegotitate my laon.
i’m not the kind of person to play games or be immoral – but at this point – after seeing all this bailout BS and other nonsense going on – screw being a good guy. i’m sick of being the good guy, paying my bills on time, following the rules, only buying what I COULD afford, and then watch as the “system” rewards people who bought with ARMS, refi’d used the house as an ATM to buy toys, etc. why should I get screwed while those losers get freebies…
so i may stop paying. see if my bank will give me a freebie too. if they won’t, i can pocket 12 months of mortgage payments, and effectively walk away from my house with a year of free rent, and about $36k in my pocket.
my credit will be scrwed, but why shoudl I be $100k-150k upside down in a house for the next ten years…
i have a few relatives who have decent cash reserves. once we finally hit”bottom” one of them coudl snatch up a house and carry paper and I’d pay them. heck, i can use that 36k as a down payment.. 🙂
it’s really sad when people like me – well paid worker, nicely educated, the kind of person who woudl buy a house and want to stay – are thinking that it would be financially insane to stay in your house an dkeep paying and the only rational thing to do in this market/economy is to dump your house and walk away and let the bank take it up the a$$…
mercedes7
October 7, 2008 @
1:47 PM
Wasn’t able to vote, but I am Wasn’t able to vote, but I am in the wait and see camp. Temeculaguy, happy to hear you didn’t buy…I think you will find much better value in the future. Sold my home in ’06 and sitting on cash. Have been waiting as I think homes are going much lower but it will take time. If interest rates ever go down, would love to lock in a 30 year fixed somewhere in the 4% range, if inflation kicks in and rates rise, can pay cash if I have to. I think lending standards will remain tight in the credit market for many years to come, which means fewer qualifying buyers. And don’t forget the Alt-A and Option Arms resets looming over the horizon. Also am looking forward to paying cash for a new car at 1/2 to 2/3rds the price. If things get really bad, I think it will happen. Only concern I have is if feds suddenly decide to forgive loans or renegotiate loans to keep people in “their” home. Don’t know about any of you, but that would really upset me and others like me who have always saved, always paid my bills and have not taken on huge amounts of debt. Have a really hard time rewarding people for paying/spending beyond their means, or those that took unnecessary risk. Lets face it, those that bought a home within their means are not getting foreclosed, even though they may be underwater. (Although, they may just decide to walk away in the end).
peterb
October 7, 2008 @
1:48 PM
23109VC. Have you looked into 23109VC. Have you looked into the tax implications of the foreclosure? I think the IRS will hit you for the amount of the loan balance you dont pay-off. And you cant BK from the IRS.
Honestly, if I were you, I’d stay in the house rent free for as long as the bank let me. The way they are behaving lately, they may not boot you out for a year or longer. If you could get some cash out of a bunch of credit cards as well as the money you save in payments….you may be able to get into something new by the time the bank evicts you. It sounds pretty bad, but I agree, if congress can make sure all those thieves get taken care of on wall street, shouldnt we all maximize out ability to save ourselves in whatever way the system will allow?
seattle-relo
October 7, 2008 @
1:53 PM
23109VC wrote:esmith [quote=23109VC][quote=esmith][quote=23109VC]hell, i bought a little over a year ago and i’m ready to dump my house, walk away, and just rent.
f*** it. don’t buy. learn from me. i was on this site, people said don’t buy, i bought. shame on me.[/quote]
At least you bought with 100% financing. You have nothing to lose except your credit rating. Also IIRC your payments are comparable with what it would cost to rent a comparable house. As long as you like the area and the house, and you don’t have to move, you’re not in such a bad situation.
[/quote]
That’s partially true… I bought with 100% so if I did just walk away and dump it, all I lose is my credit rating. I have a guy telling me that if I do dump and walk, I could actually probably stay for 6-12 months before they booted me out – so in reality I could pocket all the money I *would* pay to rent/mortgage befoe I walk.. so I could walk..but stall/stay as long as possible to bank $$$.
but if I do stay – my monthly loan payments are MORE than pure rent. my loan is a 30 yr fixed, int rate is so-so.. if you look at the interest I pay per month, factor in the write off I get, I’m paying about what i would pay in rent to get another house – but if you add in the principal reduction, and HOA – i’m paying more.
I think all in all, my monthly nut is about $3200. that’s on a 1900 sq ft house in Harveston.
I could rent something for $2000 that is quite a bit larger and similar in “nice” upgrades.
factor in my tax break for int write off, HOAs I pay, and I think if I just walked out and turned into a renter, I could pocket at least $500-600/month.
the money right now that goes to “principal” reduction is basically being pissed away, because it’s going to take a decade before my house returns to it’s purchase price level…
at this point, i’m SERIOUSLY thinking of just stopping payments and see if the bank will at least renegotitate my laon.
i’m not the kind of person to play games or be immoral – but at this point – after seeing all this bailout BS and other nonsense going on – screw being a good guy. i’m sick of being the good guy, paying my bills on time, following the rules, only buying what I COULD afford, and then watch as the “system” rewards people who bought with ARMS, refi’d used the house as an ATM to buy toys, etc. why should I get screwed while those losers get freebies…
so i may stop paying. see if my bank will give me a freebie too. if they won’t, i can pocket 12 months of mortgage payments, and effectively walk away from my house with a year of free rent, and about $36k in my pocket.
my credit will be scrwed, but why shoudl I be $100k-150k upside down in a house for the next ten years…
i have a few relatives who have decent cash reserves. once we finally hit”bottom” one of them coudl snatch up a house and carry paper and I’d pay them. heck, i can use that 36k as a down payment.. 🙂
it’s really sad when people like me – well paid worker, nicely educated, the kind of person who woudl buy a house and want to stay – are thinking that it would be financially insane to stay in your house an dkeep paying and the only rational thing to do in this market/economy is to dump your house and walk away and let the bank take it up the a$$… [/quote]
I understand your thinking. There’s just one thing – really bad credit can cause you a lot of problems that go beyond not getting a loan. For one, yes you could stay in you place an live rent free for months, but what landlord will rent to you? At least not one in a decent hood. Second a foreclosure on your credit could hurt your ability to get a decent job. Employers now look at your credit and can deny you a job. Plus if you currently travel for work and use a corporate card, your current employer will know something is up with your credit when you corporate cc calls them and pulls your card. If you end up living outside of CA, your car insurance can go sky high and so will the interest rate on your cc. Credit card companies watch your credit score and even if you are always on time with their payment, they will jack up your interest rate if you default on your mortgage. Like I said I understand your thinking, but a foreclosure on your credit can spill out in other aspects of your life that you may not expect. It does suck to watch your home value tank, trust me I know! Mine’s down at least 150K, and I actually did put down a downpayment – all that money gone! UGH! Though, I do believe home prices should come down, I just wish I understood what BS was going on before I bought – oh well, can’t change the past.
patientlywaiting
October 7, 2008 @
2:02 PM
23109VC, everyone is getting 23109VC, everyone is getting a bailout. So you might as well make your own. I wouldn’t blame you if you did.
If you walk, make sure you do so before 12/31/2009.
There’s no Federal tax on debt cancellation and California should be conforming soon (bill pending). http://www.irs.gov/individuals/article/0,,id=179414,00.html
If I were to milk the system, I’d walk in the Spring of 2009 and live there rent/mortgage free as long as possible.
If you bullshit the mortgage company and promise that you’d get current thanks to an inheritance or whatever, you can delay the foreclosure for over 1 year (as documented by OCrenter).
After foreclosure, I’d collect cash for keys to move out.
DWCAP
September 16, 2008 @
11:13 PM
who are all of you people? I who are all of you people? I mean 9+33+12 is 54 votes. I know there are quiet a few people who post here, but I dont think I would recognize 53 other people’s tag names. Please if you are a lurker who is actually taking the time to vote, chime in. I know I am interested to hear why you are so interesting in buying in the wait and see group.
vegasrenter
September 17, 2008 @
10:35 AM
Prices in Las Vegas are down Prices in Las Vegas are down 50% in many areas. The rent/mortgage ratio is becoming very favorable for certain properties.
poorgradstudent
September 17, 2008 @
10:54 AM
I’m not in a position to I’m not in a position to afford it yet, but I probably will be in about a year. The current crisis would only affect my plans if it drives up interest rates. Of course, I’d probably still be waiting for prices to get a bit more affordable.
September 15, 2008 @ 1:22 PM
I’m asking about people who
I’m asking about people who want to buy a primary home to live in.
Also if you still plan to buy, please share why.
September 15, 2008 @ 1:51 PM
If I was to buy, it would be
If I was to buy, it would be because I am looking in areas that have already deflated a lot (Mira Mesa) the only thing that keeps me from buying is because I think there is a chance that it could go down further..
though as many post on here, it doesn’t seem that MM could go down much further and already is at break even for a lot of properties
though part of me still thinks it could see a decent decrease still.. though I have been known to drink the koolaid
September 15, 2008 @ 2:01 PM
I am still looking to buy in
I am still looking to buy in the next 6 months, if I can find a place I like at the price I want. It will be a SFR in Mira Mesa. At today’s price, mortgage would be a couple hundred more than what I’m paying for my rent (2 bedroom apartment). It will be a home and I can easily afford it on single income. If you compare rent vs interest only (throw away $ vs throw away $) then buying a house is actually cheaper than rent of a 2 bedroom apartment.
September 15, 2008 @ 2:15 PM
AN, you have an email address
AN, you have an email address I can get a hold of you at?
September 15, 2008 @ 2:50 PM
ibjames, check your PM.
ibjames, check your PM.
September 15, 2008 @ 2:54 PM
i’m not in any hurry to buy,
i’m not in any hurry to buy, i’ve waited so long what’s another year or two. This is THE opportunity to exercise some patience and buy low.
September 15, 2008 @ 3:17 PM
Yes, if you compare rent vs
Yes, if you compare rent vs interest only mortgage, buying a house is not much more expensive than renting.
I have been paying for my 2 bedroom apartment about $1800 monthly. At the end of August 2008 I purchased brand new house for $420K with a down payment of 20%. My fixed interest only loan mortgage payment is $1855.
I am losing interest income on my down payment, but there will be some tax savings and I will get $7500 tax rebate for first time home buyer.
September 15, 2008 @ 3:18 PM
I’m in the wait and see,
I’m in the wait and see, where I’ve been for 2 years. This only confirms my decision.
What I’m waiting for however is hard to describe, but I’m basically waiting for everyone to say, oh no, don’t buy a house, the market will still go down for a long time.
I don’t hear that yet, and I don’t think it will until we are so far past what everyone thought would be a bottom, that buying a house looks as foolish as not buying did 2 years ago.
I am starting to hear now is a good time to buy because prices fell 30%, but I’d be upside down in a year or two kicking myself for listening to an “expert”.
Most people don’t realize prices need to fall another 30% to be where they should be. It’s at that point I expect to be told not to buy, and when I probably will.
Unless I lose my job.
September 15, 2008 @ 4:03 PM
I was firing off lowballs as
I was firing off lowballs as of yesterday, now I want to see how the next 3 months plays out. All my offers are on shorts so I’m not obligated, I think we are going to see some serious chunks come out of the prices in the next few months and the downpayment requirements will rise, while employment falls, the perfect storm is brewing. Hope you piggy’s saved your nickels, there are going to be some sweet deals but you will need some cash in order to join this party.
The economy just reached the tipping point, the ride down begins now, keep yours eyes peeled, the signpost for the market bottom can be hard to see.
September 15, 2008 @ 4:36 PM
I have an offer on a short
I have an offer on a short sale working its way through the pipeline. If it falls through, I have a couple more properties in mind. I’m allowing for 20% appreciation since 2000, which is below fundamentals but would compensate me for the risk of buying during a downtrend and a recession. I’m not in a hurry to buy but I’m on the lookout for good deals.
I think that we’re 3-6 months away from the housing bottom & the stock market bottom.
September 15, 2008 @ 5:35 PM
I just closed on a
I just closed on a foreclosure in Imperial Beach (just west of the 5). It’s not a primary residence or an investment property (it’s not for me – long story that I won’t go into).
Paid $155K (post renovations) for 4bed/2bath 1350 sq.ft. condo. Sold for $385K in 2005. It would rent for $1500-$1600/month, for what it’s worth. You can do the math.
Will it go lower? Sure, probably. A lot lower? Probably not, but I don’t care. Had to solve a problem and it works for all concerned.
Would I have bought it as an investment (if I were inclined to do such things)? No, not yet. But another 10%-20% lower, probably.
September 15, 2008 @ 10:27 PM
davelj, actually those
davelj, actually those numbers support an excellent rent nuetral investment (the condo hoa notwithstanding), if you can get another, do so. Hoping for better numbers than 100x rent may be too optimistic, even in down markets they are rare and anything in the 2 digit rent multiplier is an overcorrection bargain. If you can honestly get 1500 rent on 150k it’s rated as a “buy”. If it were in another area, using the same numbers, lets say it was in carmel valley and would fetch 2700 rent and could be bought for 270k, you’d have to beat people to get to it. Rentals in marginal areas usually pencil out better yet they seem to find fewers takers. If you do find 1500/mo rentals for 125k, run don’t walk, because it won’t last.
September 16, 2008 @ 2:30 AM
We’re waiting for pre-2001
We’re waiting for pre-2001 prices, if not better, in the “good” areas before we buy.
Been waiting and renting since 2004, so a couple/few more years really won’t hurt us.
IMHO, we will not see positive price appreciation until at least 2012, if then. It’s possible we don’t see peak prices for decades to come.
It’s all about the credit markets and how far back they’ll unwind…1982, anyone???
October 7, 2008 @ 3:16 PM
temeculaguy wrote:I was
[quote=temeculaguy]I was firing off lowballs as of yesterday, now I want to see how the next 3 months plays out. All my offers are on shorts so I’m not obligated, I think we are going to see some serious chunks come out of the prices in the next few months and the downpayment requirements will rise, while employment falls, the perfect storm is brewing. Hope you piggy’s saved your nickels, there are going to be some sweet deals but you will need some cash in order to join this party.
The economy just reached the tipping point, the ride down begins now, keep yours eyes peeled, the signpost for the market bottom can be hard to see.[/quote]
No way, man!
I called tipping point last august 2007
lol
October 7, 2008 @ 4:27 PM
Our plan now is to buy in
Our plan now is to buy in Dec. 2010, hoping to get the best deal with it being the beginning of winter, end of the year, etc. We’d like to buy a SFH in Mira Mesa, RB, RP – this area of SD. But, we could be enticed by a nice 3 bd town home/condo in UTC if the price was right. We have been renting and saving for 5 years now in SD, waiting for something we liked and can afford. I agree don’t catch a falling knife but there just comes a time when you no longer can stand to wait & get onto the next stage of your life (buy a 2nd car, get nice furniture, have kids, etc.).
We rent right now so our offer would be without contingencies. For the price we will be looking at, our down payment would be >30% by then. Given that and the time of year we want to buy, do you think we will get an accepted low-ball offer (10-15 %)? Our credit is fine.
I have noticed some beautiful homes for sale in Chula Vista lately. After the down payment, our payments would only be a few hundred more than we pay now for a 1B 1 B apartment in UTC. I am tempted! The problem is I work in La Jolla and that’s not going to change. What do you think about that commute every day? Would it be worth it to live in a really beautiful house?
October 7, 2008 @ 6:14 PM
23109VC. The other option you
23109VC. The other option you have is to short sell your house. That way you avoid the ugly stain of foreclosure on your credit report and it is a more noble (honorable?) exit than just walking away. I live in Temecula and short sold my house earlier this year.
I short sold it for $150/sqft and lost money. If I had known then what I know now I might have simply stopped paying. But what is really sad is that, today, in my neighborhood, similar houses are being sold for $110/sqft.
I feel bad for the person who bought my house – they’ve lost about $100K on this house in less than a year. Had I stayed and tried to tough it out I would be upside down another $100K by now. Unbelievable but true.
October 7, 2008 @ 6:20 PM
University City: “The problem
University City: “The problem is I work in La Jolla and that’s not going to change. What do you think about that commute [Chula Vista]every day? Would it be worth it to live in a really beautiful house?”
No.
Unless you place little value on your free time.
September 16, 2008 @ 10:02 AM
Yes, if you compare rent vs
Yes, if you compare rent vs interest only mortgage, buying a house is not much more expensive than renting.
I’m too conservative to purchase a house with an interest only loan. I don’t like the higher interest rates they command, and I do want to pay the house off. Secondly, the $7500 tax rebate is a loan that must be repaid to the government.
September 16, 2008 @ 10:43 AM
JordanT wrote:I’m too
[quote=JordanT]I’m too conservative to purchase a house with an interest only loan. I don’t like the higher interest rates they command, and I do want to pay the house off. Secondly, the $7500 tax rebate is a loan that must be repaid to the government.[/quote]
I don’t know about the other poster, but for me, when I compare rent vs interest only, it doesn’t mean I’ll be getting an interest only. I will be getting a 30 year fixed. I’ll take the interest I can get w/ a 30 year fixed and 20% down, then use that rate to calculate the the payment if I would put 0% down and an interest only loan w/out PMI. That way, it’ll be more of an apple to apple comparison when comparing vs rent.
September 16, 2008 @ 11:46 AM
AN.. my private messages is
AN.. my private messages is jacked up or something.. it shows up blank.
Can you email me at: explosive31@nospamhotmail.com
*take out nospam*
September 15, 2008 @ 2:25 PM
HP is laying off 24,600
HP is laying off 24,600 jobs.
The tech layoffs are occurring in earnest.
When jobs are scarce, there will be few buyers.
September 16, 2008 @ 11:54 AM
patientlywaiting wrote:HP is
[quote=patientlywaiting]HP is laying off 24,600 jobs.
The tech layoffs are occurring in earnest.
When jobs are scarce, there will be few buyers.
[/quote]
Is that 24,600 in San Diego?
September 16, 2008 @ 10:40 PM
ibjames
[quote=ibjames][quote=patientlywaiting]HP is laying off 24,600 jobs.
The tech layoffs are occurring in earnest.
When jobs are scarce, there will be few buyers.
[/quote]
Is that 24,600 in San Diego?
[/quote]
I believe it is likely to be mainly EDS people, since HP is acquiring EDS. That would nearly double the number of employees. As far as in San Diego, well I don’t really know, except the inkjet division (which is one of the divisions in SD) makes most of the money.
September 15, 2008 @ 2:29 PM
I’m in the wait and see,
I’m in the wait and see, although I could see buying in the next 6-12 months.
Not looking to time the very bottom, and the wife pressure builds more and more each year.
We’ve mainly been looking in the East CV & West RB areas. The new construction there has had some pretty heavy price declines, and hopefully some REO’s start start to pop up over the next few months.
So it basically boils down to REO and New Construction activity. Interest rates are coming down, and could possibly fall even further. Just waiting for the price to be right… and waiting… and waiting… 🙂
September 16, 2008 @ 8:37 PM
hell, i bought a little over
hell, i bought a little over a year ago and i’m ready to dump my house, walk away, and just rent.
f*** it. don’t buy. learn from me. i was on this site, people said don’t buy, i bought. shame on me.
September 16, 2008 @ 9:10 PM
The falling knife is getting
The falling knife is getting sharper by the day now. Run Forrest, run.
September 17, 2008 @ 9:26 AM
23109VC wrote:hell, i bought
[quote=23109VC]hell, i bought a little over a year ago and i’m ready to dump my house, walk away, and just rent.
f*** it. don’t buy. learn from me. i was on this site, people said don’t buy, i bought. shame on me.[/quote]
23109VC, I remember reading your posts about buying in Temecula.
How much equity do you have left in your house now? How much did your house depreciate in 1 year?
September 17, 2008 @ 9:35 AM
23109VC: thanks for the
23109VC: thanks for the honesty…that takes courage.
September 17, 2008 @ 10:16 AM
DWCAP I’m in the wait and see
DWCAP I’m in the wait and see group. I have been wanting to buy a home for some time now, but I want to buy the “right” home for me that I can either live in for the forseaable future or rent out should I move out of SD. I like many thought the market was way too high and I was unwilling to buy at those levels so since I’ve waited this long, I don’t see why I should hurry now in a declining market. I’m not willing to settle.
I believe there were will be some great deals out there for those of us with enough patience. I’m watching markets such as Mission Hills, Point Loma, Del Mar, Encinitas, Solana Beach and they have not declined at levels that justify my buying. I am not interested in living in Mira Mesa, Escondido, south SD, east county, nor in a condo. I’m not really concerned about interest rates. I agree with those that higher interest rates will just drive home prices down further and it means less competition. I will also borrow far less, so I won’t be rushing to buy even if interest rates start to climb to much higher levels, say 7,8,9%.
I like some do not have pressures or life forces that are really driving me to buy other than the fact that I want to live in a home I own versus renting. So I’m less emotionally attached to owning a home than some.
So I’m waiting and seeing what happens to the broader economy, our financial system, the housing market, and decide whether to make the plunge.
September 17, 2008 @ 12:07 PM
23109VC wrote:hell, i bought
[quote=23109VC]hell, i bought a little over a year ago and i’m ready to dump my house, walk away, and just rent.
f*** it. don’t buy. learn from me. i was on this site, people said don’t buy, i bought. shame on me.[/quote]
At least you bought with 100% financing. You have nothing to lose except your credit rating. Also IIRC your payments are comparable with what it would cost to rent a comparable house. As long as you like the area and the house, and you don’t have to move, you’re not in such a bad situation.
September 17, 2008 @ 12:35 PM
There seems to be quite a bit
There seems to be quite a bit of comparison as to the rent/buy costs. I would be careful here as these are not numbers that cant change. If unemployment keeps growing like it is, rents may be headed down. If this is the case, you would have to recalculate. This is far from a static environment right now. Give it a little time to see what shakes out. 6 months, maybe 12.
October 7, 2008 @ 12:00 PM
esmith wrote:23109VC
[quote=esmith][quote=23109VC]hell, i bought a little over a year ago and i’m ready to dump my house, walk away, and just rent.
f*** it. don’t buy. learn from me. i was on this site, people said don’t buy, i bought. shame on me.[/quote]
At least you bought with 100% financing. You have nothing to lose except your credit rating. Also IIRC your payments are comparable with what it would cost to rent a comparable house. As long as you like the area and the house, and you don’t have to move, you’re not in such a bad situation.
[/quote]
That’s partially true… I bought with 100% so if I did just walk away and dump it, all I lose is my credit rating. I have a guy telling me that if I do dump and walk, I could actually probably stay for 6-12 months before they booted me out – so in reality I could pocket all the money I *would* pay to rent/mortgage befoe I walk.. so I could walk..but stall/stay as long as possible to bank $$$.
but if I do stay – my monthly loan payments are MORE than pure rent. my loan is a 30 yr fixed, int rate is so-so.. if you look at the interest I pay per month, factor in the write off I get, I’m paying about what i would pay in rent to get another house – but if you add in the principal reduction, and HOA – i’m paying more.
I think all in all, my monthly nut is about $3200. that’s on a 1900 sq ft house in Harveston.
I could rent something for $2000 that is quite a bit larger and similar in “nice” upgrades.
factor in my tax break for int write off, HOAs I pay, and I think if I just walked out and turned into a renter, I could pocket at least $500-600/month.
the money right now that goes to “principal” reduction is basically being pissed away, because it’s going to take a decade before my house returns to it’s purchase price level…
at this point, i’m SERIOUSLY thinking of just stopping payments and see if the bank will at least renegotitate my laon.
i’m not the kind of person to play games or be immoral – but at this point – after seeing all this bailout BS and other nonsense going on – screw being a good guy. i’m sick of being the good guy, paying my bills on time, following the rules, only buying what I COULD afford, and then watch as the “system” rewards people who bought with ARMS, refi’d used the house as an ATM to buy toys, etc. why should I get screwed while those losers get freebies…
so i may stop paying. see if my bank will give me a freebie too. if they won’t, i can pocket 12 months of mortgage payments, and effectively walk away from my house with a year of free rent, and about $36k in my pocket.
my credit will be scrwed, but why shoudl I be $100k-150k upside down in a house for the next ten years…
i have a few relatives who have decent cash reserves. once we finally hit”bottom” one of them coudl snatch up a house and carry paper and I’d pay them. heck, i can use that 36k as a down payment.. 🙂
it’s really sad when people like me – well paid worker, nicely educated, the kind of person who woudl buy a house and want to stay – are thinking that it would be financially insane to stay in your house an dkeep paying and the only rational thing to do in this market/economy is to dump your house and walk away and let the bank take it up the a$$…
October 7, 2008 @ 1:47 PM
Wasn’t able to vote, but I am
Wasn’t able to vote, but I am in the wait and see camp. Temeculaguy, happy to hear you didn’t buy…I think you will find much better value in the future. Sold my home in ’06 and sitting on cash. Have been waiting as I think homes are going much lower but it will take time. If interest rates ever go down, would love to lock in a 30 year fixed somewhere in the 4% range, if inflation kicks in and rates rise, can pay cash if I have to. I think lending standards will remain tight in the credit market for many years to come, which means fewer qualifying buyers. And don’t forget the Alt-A and Option Arms resets looming over the horizon. Also am looking forward to paying cash for a new car at 1/2 to 2/3rds the price. If things get really bad, I think it will happen. Only concern I have is if feds suddenly decide to forgive loans or renegotiate loans to keep people in “their” home. Don’t know about any of you, but that would really upset me and others like me who have always saved, always paid my bills and have not taken on huge amounts of debt. Have a really hard time rewarding people for paying/spending beyond their means, or those that took unnecessary risk. Lets face it, those that bought a home within their means are not getting foreclosed, even though they may be underwater. (Although, they may just decide to walk away in the end).
October 7, 2008 @ 1:48 PM
23109VC. Have you looked into
23109VC. Have you looked into the tax implications of the foreclosure? I think the IRS will hit you for the amount of the loan balance you dont pay-off. And you cant BK from the IRS.
Honestly, if I were you, I’d stay in the house rent free for as long as the bank let me. The way they are behaving lately, they may not boot you out for a year or longer. If you could get some cash out of a bunch of credit cards as well as the money you save in payments….you may be able to get into something new by the time the bank evicts you. It sounds pretty bad, but I agree, if congress can make sure all those thieves get taken care of on wall street, shouldnt we all maximize out ability to save ourselves in whatever way the system will allow?
October 7, 2008 @ 1:53 PM
23109VC wrote:esmith
[quote=23109VC][quote=esmith][quote=23109VC]hell, i bought a little over a year ago and i’m ready to dump my house, walk away, and just rent.
f*** it. don’t buy. learn from me. i was on this site, people said don’t buy, i bought. shame on me.[/quote]
At least you bought with 100% financing. You have nothing to lose except your credit rating. Also IIRC your payments are comparable with what it would cost to rent a comparable house. As long as you like the area and the house, and you don’t have to move, you’re not in such a bad situation.
[/quote]
That’s partially true… I bought with 100% so if I did just walk away and dump it, all I lose is my credit rating. I have a guy telling me that if I do dump and walk, I could actually probably stay for 6-12 months before they booted me out – so in reality I could pocket all the money I *would* pay to rent/mortgage befoe I walk.. so I could walk..but stall/stay as long as possible to bank $$$.
but if I do stay – my monthly loan payments are MORE than pure rent. my loan is a 30 yr fixed, int rate is so-so.. if you look at the interest I pay per month, factor in the write off I get, I’m paying about what i would pay in rent to get another house – but if you add in the principal reduction, and HOA – i’m paying more.
I think all in all, my monthly nut is about $3200. that’s on a 1900 sq ft house in Harveston.
I could rent something for $2000 that is quite a bit larger and similar in “nice” upgrades.
factor in my tax break for int write off, HOAs I pay, and I think if I just walked out and turned into a renter, I could pocket at least $500-600/month.
the money right now that goes to “principal” reduction is basically being pissed away, because it’s going to take a decade before my house returns to it’s purchase price level…
at this point, i’m SERIOUSLY thinking of just stopping payments and see if the bank will at least renegotitate my laon.
i’m not the kind of person to play games or be immoral – but at this point – after seeing all this bailout BS and other nonsense going on – screw being a good guy. i’m sick of being the good guy, paying my bills on time, following the rules, only buying what I COULD afford, and then watch as the “system” rewards people who bought with ARMS, refi’d used the house as an ATM to buy toys, etc. why should I get screwed while those losers get freebies…
so i may stop paying. see if my bank will give me a freebie too. if they won’t, i can pocket 12 months of mortgage payments, and effectively walk away from my house with a year of free rent, and about $36k in my pocket.
my credit will be scrwed, but why shoudl I be $100k-150k upside down in a house for the next ten years…
i have a few relatives who have decent cash reserves. once we finally hit”bottom” one of them coudl snatch up a house and carry paper and I’d pay them. heck, i can use that 36k as a down payment.. 🙂
it’s really sad when people like me – well paid worker, nicely educated, the kind of person who woudl buy a house and want to stay – are thinking that it would be financially insane to stay in your house an dkeep paying and the only rational thing to do in this market/economy is to dump your house and walk away and let the bank take it up the a$$… [/quote]
I understand your thinking. There’s just one thing – really bad credit can cause you a lot of problems that go beyond not getting a loan. For one, yes you could stay in you place an live rent free for months, but what landlord will rent to you? At least not one in a decent hood. Second a foreclosure on your credit could hurt your ability to get a decent job. Employers now look at your credit and can deny you a job. Plus if you currently travel for work and use a corporate card, your current employer will know something is up with your credit when you corporate cc calls them and pulls your card. If you end up living outside of CA, your car insurance can go sky high and so will the interest rate on your cc. Credit card companies watch your credit score and even if you are always on time with their payment, they will jack up your interest rate if you default on your mortgage. Like I said I understand your thinking, but a foreclosure on your credit can spill out in other aspects of your life that you may not expect. It does suck to watch your home value tank, trust me I know! Mine’s down at least 150K, and I actually did put down a downpayment – all that money gone! UGH! Though, I do believe home prices should come down, I just wish I understood what BS was going on before I bought – oh well, can’t change the past.
October 7, 2008 @ 2:02 PM
23109VC, everyone is getting
23109VC, everyone is getting a bailout. So you might as well make your own. I wouldn’t blame you if you did.
You’ll be only 1 in 10 million walkers.
http://piggington.com/10_million_homeowners_have_incentives_to_walk
If you walk, make sure you do so before 12/31/2009.
There’s no Federal tax on debt cancellation and California should be conforming soon (bill pending).
http://www.irs.gov/individuals/article/0,,id=179414,00.html
If I were to milk the system, I’d walk in the Spring of 2009 and live there rent/mortgage free as long as possible.
If you bullshit the mortgage company and promise that you’d get current thanks to an inheritance or whatever, you can delay the foreclosure for over 1 year (as documented by OCrenter).
After foreclosure, I’d collect cash for keys to move out.
September 16, 2008 @ 11:13 PM
who are all of you people? I
who are all of you people? I mean 9+33+12 is 54 votes. I know there are quiet a few people who post here, but I dont think I would recognize 53 other people’s tag names. Please if you are a lurker who is actually taking the time to vote, chime in. I know I am interested to hear why you are so interesting in buying in the wait and see group.
September 17, 2008 @ 10:35 AM
Prices in Las Vegas are down
Prices in Las Vegas are down 50% in many areas. The rent/mortgage ratio is becoming very favorable for certain properties.
September 17, 2008 @ 10:54 AM
I’m not in a position to
I’m not in a position to afford it yet, but I probably will be in about a year. The current crisis would only affect my plans if it drives up interest rates. Of course, I’d probably still be waiting for prices to get a bit more affordable.