[Jim was kind enough to leave a JimTV in the cue. Â Enjoy. -RD]
On second look, the 10% undercut mentioned in this video is harder to discern. We’ll call the ‘upgrades’ credit even, figuring all buyers got something similar.
They have a slightly smaller house (2,976sf) listed for $539,950, which is $30,000 less than the last golf-course-front sale. So it’s not a full 10% discount, but heading downward.
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Somehow, today’s tv does not work for me.
Never mind, I fixed my own problem. It works.
I’m out of state looking into NSD area for future move. How is this Arrowwood location? How many minutes of driving for shopping, I5, I15, beach, downtown SD, airports (both SD and JW) etc.?
75 min to airports
60 Min to PB
30 min to Carlsbad beach
15 min to get past gangster area
1 min to Camp Pendleton
Definitely a “keep up with the Jones’ ” ‘hood. I live in a more “fuck the Jones’s” ‘hood.
If you need ‘special financing’ to buy a home, you can’t afford it. I would certainly check the extra fees (voter approved bonds, mellow roos, HOA, etc…) before buying. I know a few couples who moved into a different neighborhood to ‘upgrade’ to a bigger house, but are paying more in community voter approved bonds. Some areas are willing to spread the wealth than others? A few hundred bucks more per month can get you a house in a better neighborhood. And I smaller house in a better neighborhood (generally speaking) trumps square footage.
Do they wink before they give you ‘special financing’?
They should just pass a law saying home buyers are responsible for making sure they can afford a home before they buy. Hire an accountant if you have to, it’s no worse than all the other fees you pay to close anyways and can do a lot more good. Have the accountant prepare 1 sheet showing your cash flow and debt, attach your 3 years of tax documents, and explain how in the world you think you can afford this place. You can even keep your file sealed, and it will stay sealed unlike your other mortgage docs unless you foreclose.
These days, the idea that you “promise” to pay someone back and signed a “contract” to that effect really has no meaning anymore. Our economy ran on a combination of trust and collateral, with too much emphasis on trust.
Everyone loves a special deal, even if it isn’t. I remember once I was shopping for a piano (fyi, piano salesmen are close to used car salesman for sleeze.) I was in the store about 3 minutes before the salesman offered me a “special deal” because I was such a “good customer.” Puh-leeze.
Nice surprise at the end of the video, Jim. Laugh-riot.
$500/month in extra fees? You could join a country club with that.
In college, my economic professor’s first words were ‘there is no free lunch’ and ‘you can squeeze blood from a turnip. Though the former is dead on so to speak (assuming one doesn’t cheat or lie), the later is built on the ‘Generation Me’ faulty logic where those in their teens, 20s and 30s display healthy levels of self-esteem though they haven’t accomplished much to earn it. The age of entitlement is still strong. I believe DAPs are still allowed – thanks to a very strong lobbying effort and this only serves to artificially keep the price of new homes high.
errr I meant ‘you can’t squeeze blood from a turnip’.
Remember how last month I said a friend was renting out their house and moving into cheaper UTC rental themselves? Seems to be a trend!
http://finance.yahoo.com/news/Homeowners-Turn-to-Renting-cnbc-15216285.html
I’ve known several people rent out their CV Townhome at a loss, but make up the difference and then some by renting somewhere smaller and cheaper. Cut your own rent in half, use the savings and rental income to subsidize your mortgage.
Like all housing schemes, this assumes housing prices will improve in a couple of years. Only disciplined people can survive much longer than that.
Insert jokes about “wide stance” here.
Hey Jim, or anyone else, can you tell me which government agency handles the RE auctions for the county? I’m a former San Diegan, now living in Colorado, out here properties go through the public trustee’s office for each county. I can’t seem to find anything online at the county website, …… maybe my google’s broken 🙂
Thanks in advance, from a long time reader and Jim the Realtor fan!
“Our economy ran on a combination of trust and collateral, with too much emphasis on trust.”
Agreed. And with all the non-recourse loans out there, I’m not so sure about the emphasis on collateral, either.
“They should just pass a law saying home buyers are responsible for making sure they can afford a home before they buy”
That house would dive to 250k very quick. You know, about what it’s worth.
San Diego going to pay one way or other. I notice very little consumer spending. Not many Targets, new malls, etc. Thats because a 250k house sells for 500k.
Time will tell who wins.
Calculated Risk just ran a story on a street of involuntary landlords in Newport Beach:
http://www.calculatedriskblog.com/2009/05/cant-sell-try-renting.html
> Like all housing schemes, this assumes housing prices will improve in a couple of years. <
It’s honorable that people are renting out their homes and not defaulting on their mortgages, but who are they really helping? They are investing a lot of time and effort just to save their credit scores, which they don’t really need anyway since they’ve become renters themselves!
“They are investing a lot of time and effort just to save their credit scores, which they don’t really need anyway since they’ve become renters themselves!”
Credit scores (and reports) can affect your ability to get a rental.
In a few years FICO will not be as important. There are so many people with low FICO, institutions will need a grandfather clause of some sort to forgive those who live beyond their means.
In a few years FICO will not be as important.
Beg to differ. Lending standards will continue to tighten, so as opposed to any mirror-fogger getting credit only those that are squeaky clean will. The rest will be relegated to layaway, rent-a-center, and/or paying with cash from (gasp!) savings.
While deep down I wish your scenario plays out, it isn’t going to happen. Stranger days ahead – one can’t make this stuff up. We are living in an age of entitlement and I have lost much confidence in the system. Sad but true.
OT – sighted the other day, a bumper sticker:
“Honk if I’m paying your mortgage”
Another sign ‘o da times”
I saw an Ice Cream Truck “for sale” in Vista on S. Sante Fe yesterday sitting in front of a car repair joint! Not kidding!
I have to get my phone camera and get a shot of it if its still there for vacationing Jim!
Maybe the foreclosure pipeline slowdown is being fueled by bank repo’s on Ice Cream Trucks…take the trucks off the road…you know the rest!
I put $17,000 down on one of these houses two years ago. While waiting for it to be built I saw homes going into foreclosure. I was seeing nicer homes with better lots and more upgrades selling for less than mine. I haven’t looked at comps lately but I bet you’d get a much better deal looking for one of those. Homes in Arrowood sold before and through the peak. There were so many homes, buyers were turned away. I’m sure there’s a high percentage in some stage of foreclosure. I lost my $17,000 when I walked away, but I kept my $150k I equity I would have put down.
If Arnold gets his way, Del Mar Fairgrounds will be bulldozed for more homes in a few more years. Don’t we have a ‘drought’?
Ok, I’m from da sticks… what is a mellow ruse (sic)?