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Replies (29)
- Terri Linnell, "DebtsNMesses"
- Contributions:6728
Now that the interest rates dropped over the last week, I can buy a break even rental with 20% down. I can actually pull a profit. I'm in Poway. I'm not taking into consideration the rent bubble that's been happening. I'm counting only the rent I'm able to get from 3 years ago.
Honestly, I'm not sure, but with the interest rates dropping this past week, it's getting pretty close. Too bad only hindsight will tell us if it's time to buy NOW! lol I have 20% down, so I'm not sure what to tell you. I'm not sure what to do either! I do know I need time to think on this new developement.
- mewanthouse
- Contributions:14
Well at least you have 20% down payment for your potential purchase. You are in a much better shape than I am. Since I am a Veteran (Marines), I am planning on capitalizing on the VA home loan I am entiteled to. I think I can get as much as 413k with 0 down and payed loan insurance and competative rates. I think I am waiting for some more vendetta to happen...
Good Luck to you,
- Space Acer
- Contributions:625
"Few days ago, I've seeing 4 bedrooms/ 2bath for around 340k to 370k."
I say go out give an offer and see what happens, Low Ball down to 330K. I just wonder if the Realtors would slip in the "other multiple bidders, can you go higher"....
back out of the bid and see if its relisted (?). Report back what you find/
- LongIslandBubble
- Contributions:2793
When the recession is over.
- BuyEqualsRent
- Contributions:1491
I wouldn't call a 330k offer a lowball. 250k would be a lowball, IMHO...
- KD in Texas
- Contributions:859
Realist Debts N Messes: You're in Poway? I used to live in Mira Mesa and went to the Poway Stables every summer. I remember this one house with a big-*ss rock behind it and wondered if it would ever tip over on it.
- KD in Texas
- Contributions:859
Don't click on the link. I don't know how I made a link.
- Terri Linnell, "DebtsNMesses"
- Contributions:6728
Mew... my bro-in-law is a vet. Zero down, and they will go over that amount. My sis just told me yesterday. Without the 20% down, check payments carefully to see if they will be break even with last years rent (not this bubble). There are LOTS of homes under 400K, so you may be able to find something around the low 300's (not a condo, either! Woooo hooo). Do the math. I'd love to hear your results. I have a mortgage broker in scripps ranch that is getting the approval of my parents, me, my sis... which is rare if you want to bounce numbers off him. Just email me under my profile here and I'll give it to you. Either way, talk with a good mortgage broker and get some numbers.
- Terri Linnell, "DebtsNMesses"
- Contributions:6728
Poway stables are gone. No more hay rides! :-(
Tooth rock is still there. lol Lots of McMansions under it now, too.
- dunmoved
- Contributions:451
Let me know when you decide to jump...we'll take your rental! We'd buy in a heartbeat here (Penasquitos, Poway, Scripps Ranch, etc.) at the moment with interest rates what they are but we haven't sold our house in Nevada. >:-[
- Terri Linnell, "DebtsNMesses"
- Contributions:6728
I'm sorry to hear that dun. Are you aggressively pricing the Nev home? It's hard to compete against the foreclosed homes, where the banks are willing to take even further losses. 45% of the homes in San Diego that sold in Dec were foreclosed homes. I don't know Nev stats, but thats tough on the sellers!
- dunmoved
- Contributions:451
It's not that there are a lot of foreclosures in "our" part of Nevada (NOT Vegas thank the lord!), it's just that everyone was sitting on their hands waiting for whatever. We have the house rented and will probably put it back on the market in April.
- Terri Linnell, "DebtsNMesses"
- Contributions:6728
If it's a break even rental, maybe you could afford to keep it and still buy? They count rentals at 75% income. So if you get 1,000, they put it on your side at 750 year round income. I would check with an mortgage broker. Just a thought. I'll yell if I move out! I have dirt cheap rent. lol
- Space Acer
- Contributions:625
http://www.housingbubblebust.com/OFHEO/Major/SoCal.html
Looks like San Diego is heading for a 50% haircut. A year ago SD was test to see if CA was going to have a soft landing or hard landing. I sure dont hear anyone talking about a soft landing anymore. The biggest con the Realtors made up was saying Baby Boomers will soon retire to places in CA like SD and SF. Many Retirees dont have that kind of money. With prices this high in CA, a buyer will wipe out the majority of their savings. And if you do have a anything left over the taxes will kill you. The great rush to flock to the CA coast isnt going to happen. CA prices are toast!
- Terri Linnell, "DebtsNMesses"
- Contributions:6728
Space, as I've said before, the inflation line is wrong. It looks more like what I would think is the wage line! lol
- mewanthouse
- Contributions:14
Thanks Realist for the contact. I'll keep you updated with my situation while I am on a hunt for my first home.
- Terri Linnell, "DebtsNMesses"
- Contributions:6728
You're quite welcome. Once you gather all the data, you will be well informed on your decision. Whatever you do, don't let the payment be in over your head. Keep it under rent, especially the well under the bubble rent we are now in.
- Space Acer
- Contributions:625
OK! What do you think Inflation should be and why is the current published numbers wrong?
Do you see inflation higher lower or what?
- ls1ownzu
- Contributions:35
I live in north county san diego. its seems that home owners though dropping, havent dropped a ton. if you shop around and find a bank owned property however, you get get a very good deal. one place in my area (hidden meadows) which if you know the neighborhood its nice, i found a bank owned 4bd 3bath 2400sf for 353k. im sure if you have been looking you know thats dirt cheap for that size house in a nice area of north county. so you just have to do your homework and you can find a good deal right now. ive been looking for a second home if i can find a REALLY good deal like that one and they are out there if you look. plus, although interest rates have been all over the place the last couple weeks, just a couple days ago the person i get loans through at washington mutual called to say rates were at 5.15 for a 30 year fixed which is great if you can lock in on a day like that. at that rate the rent/own is looking alot better and if you can find a forecloser at a steal ur almost looking at the same amount to rent. just have to be a little more savvy if you are looking to buy soon and you can still end up ahead with instant equity so if house prices go down you arent too bad off, and a low payment so it makes sense.
- Terri Linnell, "DebtsNMesses"
- Contributions:6728
Yes, ls1, it does make sense, but I would not expect any instant equity, nor would I use it, nor would I expect it to stay throughout this downturn. In the next boom, I think the equity will return. Even then, I would not use it. This lifestyle of buying on borrowed money is rediculous. If I pay 250K for a house, when I'm done paying off the house I would have given the bank an extra 300K in interest at 6%. Just think of what we're all paying for the use of credits cards! By the time we've paid for that shirt, or vacation, what did it really cost us at 15%, or 30% interest? lol
- ls1ownzu
- Contributions:35
Yea, abusing credit like that will get you in trouble in a hurry. Personally i just use credit cards as a way to not have to carry money and pay them off at the end of the month. Im not suggesting to use the equity which is why some ppl are losing their homes including ppl who have owned them for many years, but saying that if you get a home so far under the current value then even if real estate goes down you didnt make a bad deal. Especially if you can lock in a great rate for 30 years which will put you ahead of the game.
- Terri Linnell, "DebtsNMesses"
- Contributions:6728
My neighbor owes 75K, and doesn't even own a home. I know student loans, cars, motorcycles ect, are expensive, but that's a downpayment on a house! They just bought a new entertainment center, too. Xmas takes 1/4 of their living room. Everything on credit.
They can't even afford the rent I pay (they pay parents 1/2 rent), which hasn't raised in 3 yrs! We only had 20K in student loans, and bought 1 car on credit. All have been paid off. We can live on less than 1/2 the money they can for the same size family. That's a lot of debt.
Just think of how much money our country could spend on usa goods if we just got rid of credit cards! lol There would be NO recession fears.
- Roberta Murphy, "RobertaMurphy"
- Contributions:19
You may want to explore home financing options available today that might not have worked just a couple of years ago.
The ACORN loan (available through Bank of America and Chase) is great for buyers earning less than $92,000 per year and who own no other real estate. The down payment is low and there is no PMI (private mortgage insurance). Loans are available up to $500,000, and buyers must attend a one-day class on home ownership prior to receiving an eligibility certificate.
FHA loans are also making a recent strong appearance in San Diego, and we are using them with a number of our buyers. These loans offer 3 percent down payments on mortgages up to almost $700,000. There are additional fees involved with FHA loans, but motivated sellers may be willing to assist with these costs--and may also be willing to reduce the home price to meet FHA loan maximums.
The best strategy is to find a very well-priced home (compare to area comparables)--or perhaps even a
San Diego foreclosure-- and secure the best available mortgage financing.
It's a raging buyer's market that will benefit the courageous, hard-working and smart investor.
- 30ashopper
- Contributions:160
Oh my goodness mewanthouse,
Ignore all the advice from realtors and sellers here and just wait… it… out. Monitor these boards, read Calculated Risk, and show some patients. We are light years from a recovery.
“Ahh and save as much as possible for a down payment (I know; you are going to say: "Good luck with that")”
Huh? No I’m going to say – hell yes, that’s exactly what you should be doing!!
- KD in Texas
- Contributions:859
I used to live on Acama St in Mira Mesa and my folks bought that house for about $30k back when I was 4-5 years old. $340k seems high to me. :)
- jal74
- Contributions:1077
It's a raging buyer's market that will benefit the courageous, hard-working and smart investor.
No - its trying to catch a falling knife that will once again ruin the financial future of another generation of american debtors. The only benefit will be that the commission check you get means you don't miss another payment on your humvee. However that buyer in So Cal that only puts 3% down and finds out 12 months later that his house dropped another 15% in value and now desparately needs to move has ruined his financial future for the next 5 years
- OnePawUp
- Contributions:255
I'm in the San Diego market and my wife & I just made our first offer.
There are some great deals to be had. In this case we made an offer on a 2b/2ba condo that was in foreclosure. The thing is - we made one offer and that's it. If they counter on price we walk and just wait meanwhile saving more money for downpayment & reserves as the prices keep falling.
From what we've seen there are still a LOT of sellers out there that have unrealistic expectations for their prices so we prefer to deal with the abundancy of short sales and REOs in the area.
- Waiting4Ever
- Contributions:684
wait until next year
more price drops
more foreclosures
unemployment lasts 26 weeks ( i think)
when that runs out
savings gone
401K gone
more foreclosures
you've got a lot of unemployed
that haven't hit bottom yet
bankers, builders, construction, etc, etc
wait for the nicer houses
they're coming
right now, you're just seeing the sub prime
if you buy now
you will be thinking in a year or so
"that house is nicer and its the same price i paid"
anyways
good luck
- tobiasjones
- Contributions:109
San Diego will be a great deal when they have when the term of your loan is shorter than the citys water supply (around 4 years right now I think)
Until When Should We Wait Until We Buy in San Diego?
As bad as it might seem, I am happy nowadays to witness home prices in my San Diego community dwindel much more rapidlly than I can remember. Yes, you guessed right. I am not a home owner obviously. I am, like many others, standing by and waiting for more pulling back of home prices to happen. I remember just a year and half ago when you could not get a 3 bedroom/2 bath house for less than 500k. Now is a different story here in Mira Mesa (San Diego community). Few days ago, I've seeing 4 bedrooms/ 2bath for around 340k to 370k.
With us being at the outset of the so-called upcomming recessions, and with the recent Havoc in Wall Street, it is very unlikely to expect the housing prices to bottom out. Is it?
With this uncertaity looming over us, what can future home buyers like me do until then? I guess we should just sit and watch..... Ahh and save as much as possible for a down payment (I know; you are going to say: "Good luck with that")
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