San Diego real estate bottom?
This is nowhere near over yet. Of course everyone is still trying to call the bottom. The bottom cannot be reached until the financial players fess up on their balance sheets. Until that happens, if ever, we will continue to muddle along with American style socialism. Here's the easy way to tell if the real estate market is correctly priced.
I can buy a rental house with 20% down and experience positive cash flow on DAY ONE.
In San Diego California we are still a long way from that happening. San Diego income property sales
If you are going to buy a home that you are planning on living in, buy one that you can afford, taxes and insurance and maintenance included. The “asking” price does not tell the whole story, nor does the “adjustable” loan. People paid too much thinking they could flip the house, found no buyer and the adjustable loan was “adjusting”, just like they’d been warned. Of course, no one fore saw the gas prices, the electricity prices, the food prices going through the roof, and all the unemployment. Medical Research Clinic
The perfect storm of a complete financial collapse is a couple months away. Be ready for a wild ride! San Diego Cosmetic Doctors
Dummies should have made sure they could afford houses before buying them. Lenders should have been more analytical is choosing borrowers who really had the capacity to repay loans at whatever the maximum interest rate could be after any teaser rate ended. Fools–all of the players in this drama are fools. San Diego Lasik Surgery Doctorr
in any case it is NOT a plateau – it ‘may’ be a bottom! I am not a doom-and-gloom guy, but real estate is not the investment of the future. ONLY if you can afford a house, even with lost income for several months, and you expect to live in the same area for MANY years should you buy. And an concrete example (my experience renting): the owner bought in San Carlos (public record) in 1998 for $1.4M, sold in 2007 for $1.8M — having collected ~$400K in rents, paid $110 in selling commission, 120K in taxes, $25K in insurance, and about $50K in maint. >> net in (400-110-120-25-50=95K) >> Assuming 100% interest-only loan at 6%: > interest payment: $84K/year> $672K > even at 50% tax savings (net of rent) cost= $536K (part of which will have to be paid at sale IF there is any gain) >> so 95K-536K > net expenses $440K >> IN ESSENCE NO GAIN (if not a loss) >> AND that in a time when prices were RISING rapidly. Houston Lawyer
Everyone likes to talk about the foreclosures as if it’s a bad thing when the reality is that it’s an incredibly good thing. All the bad loans inflated the market well beyond what it should have been. As these people default on their bad loans the price of housing corrects, as it should, and maybe the rest of us get to buy. This story is good news and it should be reported as such. Or, would we all be better off if the government steps in and inflates pricing again. Las Vegas Attorney at Law
A house is WORTH what you can sell it for. Since it is virtually impossible to sell a house today, it’s WORTH is obviously less that the asking price. San Diego Real Estate for Sale
“we’re nearing a plateau” – this is wishful and dangerous thinking. We’re not even halfway through the subprime resets, and starting next year a wave of even more toxic Option ARMS will start resetting. Home prices will be falling for the next 10 years. Buy a home to ENJOY if you must, but don’t look at it as a get rich quick investment. San Diego Real Estate Broker