|
|
condo guy
 |
| 09/30/2007 9:40 PM |
 Alert
|
5% after taxes is 3%
If you have 1 million in cds you can make enough to pay $2500 in rent.
But I guarantee you dont have 1 million because if you were that smart you wouldnt still be renting. Once again let me state that I realize you have made your first mistake by not buying when the market was reasonable. There is no reason to be in a hurry now and make your second mistake. I still think there is an ez 100k downside in most $350 - $450 priced condos. Be patient you dont have to live like this much longer. You will get a second chance to join us. Granted it wont be at my bargain basement ocean view price but then again I didnt wait and put my money in cds but I am now since my payment is nice and low. Gee seems like I ended up with the best of both. Nothing for me to complain about and no reason to try and justify the price I paid either. |
|
|
condo loser
|
| 09/30/2007 9:46 PM |
Alert
|
| These are just bitter buyers who got screwed who are just harassing renters on here. BTW, you can get muni bonds near 4% which aren't taxed. Even Buffet owns his original house in Omaha which costs maybe $400K today so it's not everything to own. |
|
|
No worries
|
| 09/30/2007 10:12 PM |
Alert
|
| See my game plan is to enjoy my urban condo in North Park with awesome views at least until I retire in 15 years with a government pension. If my place hasn't risen in value by then, then I'll tip my hat to every bitter renter out there. But something tells me that by then it is they who will be tipping their hats to me. And if I decide to move before then I'll be able to rent this place out easy to college students or whoever to more than cover my mortgage. Especially after they're done adding my Japanese guest bath. See, my point is, we all have our strategies for getting ahead. Let's focus on those and not on pretending to know what is best for people who we don't even know. I apologize about my snide remarks on the $2,500 rent. They were in response to snide remarks about someone's 'lifestyle' being better than mine, but nonetheless I shouldn't have descended to that level. Anyway it will be fun watching this board and others as the market goes through its permuations in the months and years ahead, as markets tend to do. |
|
|
BMFarley
|
| 09/30/2007 11:04 PM |
Alert
|
I agree with condo loser. Anyone that is an owner, a real estate agent, or morgage lender, or anyone in that industry... they are biased in favor of their market and position. They have a monetary investment. Money often trumps having a level head.
Rationally, it's pure mind-numbingly dumb to buy right now, or not sell if you're an owner... unless you plan on being in your place more than 10 years... or just need stability like religous people need to know their is a god. Look for current day values to drop further. 10% would be conservative. 20% is more likely. Further, we will likley not see today's values return for many many years.
I feel sorry for all those that have a vested interest in owning or selling right now. I also feel pity for those that have their blinders on and own a home and are unsure whether to get out or not. For those people, I tell them selling and becoming a renter is smart. Renting any place in San Diego or California right now is much cheaper than paying a monthly morgage. As an example, downtown units are selling for about $450 per sq foot right now. Or more. An 800sqft unit will cost about $360k... or have an approximate $2200 per month based on a 6.1% morgage. Add another $300 per month for HOA fees and you're looking at almost $2500 a month!!! Does that make any sense at all when the same unit has a $1500 or $1600 per month rental market value??? I don't think so!!!! Only a fool would think so. |
|
|
Anonymous
|
| 10/01/2007 1:06 AM |
Alert
|
I rent a million dollar 2/2 condo downtown with a view for $2500 net. You pay about the same for a $370k condo in a fringe neighborhood. I think that clearly my "lifestyle" or standard of living is higher than yours.
I didn't miss the real estate run up. I sold my co-op in Manhattan for top price before moving to San Diego. I'll buy again when the time is righ -- either in San Diego or LA.
Right now, I'm enjoying seeing my investments grow while your home equity shrinks by the day. When the time comes, I'll pay cash in order to get the very best deal.
I certainly don't envy those bitter owners out there.
|
|
|
downtown dude
|
| 10/01/2007 6:35 AM |
Alert
|
"See, my point is, we all have our strategies for getting ahead. Let's focus on those and not on pretending to know what is best for people who we don't even know."
I agree. I rent and it suits my lifestyle well. However there are many non-monetary reasons to buy vs. rent. People are at all different points in their lives with many different considerations. |
|
|
Anonymous
|
| 10/01/2007 7:45 AM |
Alert
|
Ok, let's put it this way then. Current renters are cold and calculating. They care about maximizing their investment portfolio. Current owners are warm and fuzzy they want pride of ownership and the ability to paint the walls the color they want.
|
|
|
Anonymous
|
| 10/01/2007 7:57 AM |
Alert
|
" There is no reason to be in a hurry now and make your second mistake. I still think there is an ez 100k downside in most $350 - $450 priced condos."
condo guy, read what you said again. I never made any mistake. But that's why i'm not buying now. And that's why anybody with a brain is not buying right now. if you think that a lower of the range condo can decline another $100k, imagine how much a top of the range condo can decline. Therefore you'd have to be stupid to buy today!! (the future is another story).
$100k invested well would pay my HOA for life. Why would I want to give it up to some idiot who's selling right now? Let him take his loss so I can bank that amount.
The people who already own have no choice but to hold. But they won't convince me that their situation is more desirable.
|
|
|
Anonymous
|
| 10/01/2007 8:09 AM |
Alert
|
Guys, guys, don't kid yourselves. The foreclosures are still going stronger than ever. In fact foreclosure are setting new records.
We still have a long ride down. |
|
|
North Parkian
|
| 10/01/2007 8:59 AM |
Alert
|
" I rent a million dollar 2/2 condo downtown with a view for $2500 net. You pay about the same for a $370k condo in a fringe neighborhood. I think that clearly my "lifestyle" or standard of living is higher than yours. "
Dude, you're a mess. You can have your overpriced, overcrowded, pink-haired tourist-riden, nametag-wearing conventioneer-laden, sterile downtown "with a view." I'll stick with a real neighborhood with character where the arts are thriving, diversity is strong, mom-and-pop businesses outnumber boring chains, the treasures of Balboa Park are a stroll away and people say hi to each other by name when they walk down the street. If that's "fringe" then give me that lifestyle any day over yours. |
|
|
Rent to own
|
| 10/01/2007 9:46 AM |
Alert
|
| Hmmm, what I don't understand is a logic that says renting for $2,500 a month is better than owning for about the same amount a month. Both renter and owner can save money on top of what they pay for housing. The renter will be left with savings but no equity in a property he can call his own. The owner will have savings in addition to a property of his own. The renter can buy with his savings when the market hits rock bottom, but he'll be out much of his savings. The owner already has a place to live when the market hits rock bottom, so his savings will continue to grow. He'll have a home and growing savings, while the renter will have a home and diminished savings. So who comes out ahead? |
|
|
TREZ63
|
| 10/01/2007 9:56 AM |
Alert
|
I'd have to agree with Anon all the day on this one.
I sold all my RE two years ago while the market was still hot. Now I've got most of the money short on Home Builders. I'm also living in a $1.4M High rise condo in Irvine and loving it. I pay $3200 for rent while others in the same building pay $10K for the same. The interest on the money I made in the up market pays my rent and more.
I think the move by DR Horton was a smart one for the but a bad one for the industry as a whole. They moved a lot of units (not closed yet so we'll see, I'm guessing a lot of the bidders will have buyers remorse asap) but they caused a lot of panic and hoopla.
Personally I'm just waiting around eating my popcorn and watching this hilarious market tank. I honestly can't believe anyone is buying right now.
Here is what is fundamentally wrong with the RE market in SOCAL. No first time home buyers.
In order for the market to start recovery, first time home buyers (FTHB) must be able to afford a home.
Now your good FTHB is going to be the guy with $25K down and can afford around $1800/mo (all inclusive, tax, hoa...). That's so that it makes sense for him not to rent instead (remember those calculators that told you to rent/buy). Anyway. For that to happen at 7% interest rates. He's going to have to get a place for around $250K or so. Keep in mind, this FTHB that I'm referring to makes around $50-$70K so he doesn't want to live in a bad neighbor hood. So we're talking average neighborhood, average condo.
SO until the condo in question is at about $250K, the guy who owns it can't sell to upgrade to his $400K home and so on and so forth. So we can sit him and analyze consumer confidence and builder inventory and the impact of the Fed fund rate on housing prices till the cow come home, and then we can discuss them with the cows. But the fact is none of that is gonna matter until our FTHB-guy decides it's time to buy a condo vs. rent a condo.
Until then, I'll continue to live worry free in an amazing building in which condo prices are dropping an average of $50K a month.
btw, thanks a thousand times for posting those numbers. You're awesome for taking the time. This is the only place on the web I was able to find them. |
|
|
Emmet Pierce
|
| 10/01/2007 11:02 AM |
Alert
|
| Hi, I'm Emmet Pierce, a staff writer for The San Diego Union-Tribune. I would like to talk to folks who attended the auction. 619-293-1372. Thanks. |
|
|
Guest
|
| 10/01/2007 11:08 AM |
Alert
|
I initially went to the auction as a La Boheme owner to satiate my curiosity/drive up the prices (which I did on about 5 units). I ended up grabbing one of the one bedrooms, but have since decided to toss it back. This building is a brilliant place to live, but I just can't swing two mortgages right now. Thankfully, unlike many of the new buildings downtown, our building is nearly full.
Here's to the adventure of SOCAL real estate! |
|
|
TREZ63
|
| 10/01/2007 11:11 AM |
Alert
|
| Wow! You already changed your mind? And you admit that you were only there to drive up prices? From having been there, do you have any idea how many people where doing a similar thing? Is there no obligation at all? If I were to venture a guess, I'd say that only a very small percentage of the auction sales will actually close. Maybe 40% if they're lucky. I guess we'll know soon enough. Please update us with your opinion. |
|
|
Anonymous
|
| 10/01/2007 11:36 AM |
Alert
|
Right on TREZ63!!!
rent to own, you're an idiot who badly needs financial education.
The example showed that the owner was only making INTEREST ONLY payments. In that case he doesn't own didly. He's has a mortgage that's to infinity that doesn't build one penny in equity. In fact, the market is declining so he's losing equity everyday.
Look at it in terms of value for shelter. I rent a 1 million dollar place for $2500. OR I could buy a $370k place for $2500 in INTEREST ONLY, HOA and property taxes. Regardless of location, why would I not choose to enjoy the more expensive shelter for the same money.
If you could can lease a Mercedes for $250/month with no strings attached, would you borrow the money at $250/month in INTEREST ONLY (NO PRINCIPAL) to buy a chevy? That would never happen in the automobile market, but it's the kind of amaziing deal you can get in the housing market. Why not take advantage of it?
I'm not saying never buy, I'm saying NOT RIGHT NOW. NOT FOR AT LEAST ANOTHER 2 YEARS.
|
|
|
Anonymous
|
| 10/01/2007 11:44 AM |
Alert
|
I'm sure there were plenty of shills at the auction driving up the prices. If there are no obligations to buy once you win the bid, then the auction is meaningless.
Emmett Pierce, I hope that when you write your story, you will mention this fact.
I'm very dissappointed in the the UT's coverage of the housing market. You guys are nothing but cheerleaders for the market. In fact you should be educating the readers who are not sophisticated and are often taken by the shysters.
The press' handling of the housing market has been the same as the coverage leading up to the Iraq war -- a total disgrace. As the fourth branch, you failed miserably in your responsiblity to the American people.
|
|
|
Anonymous
|
| 10/01/2007 11:55 AM |
Alert
|
North Parkian, I won't argue the merit of location with you. You like North Park. Good for you.
Regardless of location, given the same amount every month (rent vs. Interest+Tax+Insurance+HOA), wouldn't you rather live in the better property with more space? I'm sure that $2,500/mo would rent a much nicer place than a 900sf 1bd/1bt + loft in North Park, Hillcrest, Mission Hills or Bankers' Hill.
|
|
|
Renter
|
| 10/01/2007 12:23 PM |
Alert
|
| Us renters here should be a little more honest in comparing cost of renting to cost of owning. Yes condo owners have HOA and insurance and tax. But renters who are smart also have renter's insurance, and when things go wrong with their units they sometimes have to wrangle with a landlord for weeks or months or sometimes go to court over it. We've all heard the horror stories about that. A responsive HOA can fix things more quickly. Just asking for a little honesty here folks, that's all. |
|
|
Renter
|
| 10/01/2007 12:25 PM |
Alert
|
| Oh and let's not forget the great tax savings that owners get over renters. So you know what? Maybe it's all a wash in the end and nobody should feel too smug about renting or owning. Just do what's right for you and believe whatever makes you sleep easier at night. |
|
|
|
|