California real estate
Submitted by Jason on Tue, 10/18/2005 - 09:23.
I found some interesting information regarding California real estate at the following site:
http://www.patrick.net/housing/crash.html
There are daily updated links to info. It's kinda scary if you read it all the way through. Fresno prices are way out of wack, much worse then the Bay Area. If prices decline significantly, a lot of people will be hurting!
* Renting is cheaper
* Incomes aren't keeping pace
1. Interest rates are rising
2. High leverage loans are commonplace
Patrick.net
Read it!
Now!
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Be more specific Jason
How long did you own the home? Where do you own the home. If you have owned the home for at least 2 years and its your primary residence you will walk away with money in your pocket.
Not to mention where are prices falling? I see prices stabilizing. If you have to sell your home due to a job change that was poor planning on that persons part.
Make sure not to get the Cofi loan at 3.9% you will not be paying off the principle and you will actually owe more in 5 years. Simply put be a smart consumer get a 15 year fixed and pay more each month than you have to. Make sure it goes to paying down the principle. You will pay off sooner and save thousands of dollars.
If you have to sell your home due to illness then I assume your insurance is all used up? *looks confused. Even if you have amazing hospital bills the most they can do far as I know is put a lien on your home. That means you wont be selling it or refinancing it w/o paying it off but you still have a place to live.
Far as Divorce goes well a marriage is much like any investment if you dont pay attention to it and nurture it you will get nothing out of it. Be happy if you get any proceeds and try again.
Jason life isnt fair and there are times you will lose money in real estate. That being said coming from my perspective as a renter it is very difficult to lose money in the California real estate market.
If you have a Fico score of 720 or higher you can walk into any bank and get a loan for a home. Buy that starter home at 100-200k. Sit on it for 10 years and you will have made money. From there you can either move up into a better home or continue paying off your loan. What you end up with is a nest egg. You can get a 2nd as needed or just sell the home and retire wherever you want to.
Keep away from people who try to belittle your ambitions. Small people always do that, but the really great make you feel that you, too, can become great.
Mark Twain
What if you have to sell due
What if you have to sell due to divorce, illness, or job change while prices are falling?
lol
"If you buy, at least you have a house, but if you rent, you end up with nothing."
FALSE. Renters in this market end up with much more money, while living in the same quality house as an owner. At the end of 30 years under our current conditions, a disciplined renter would have enough principal saved to buy the same house outright and would have an extra $425,880 of accumulated interest savings, and would have lived in an equivalent house all that time. Owners frequently end up with nothing because they lose the house to foreclosure.
This reminds me of when I used to sell mortgage. A "disciplined" renter would already own a house.
This guy makes so many assumptions and it sounds like he lost money or an oppurtunity in the bay area.
The truth is if you own a home in California thanks to Prop 13 you will end up ahead. Prices may fall but they will eventually go up again. Simple reasons, prop 13 keeps taxes at 1% and the weather. When one of those things change I will change my opinion.
Keep away from people who try to belittle your ambitions. Small people always do that, but the really great make you feel that you, too, can become great.
Mark Twain
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