Assuming this is a adequately researched thesis, I do like the conclusions. (San Diego: for sale)

[FromCalitoSteinerRanch]

Too bad we left??? Hehe.

http://www.statesman.com/search/content/business/stories/personalfinance/04/08/8burns.html (broken link)

Edit: Sorry, the title should be "Assuming this is an adequately researched thesis, I do like the conclusions."

[mrsengle]

The only problem I have with this article is the example the author used. If you can afford it, of course it's always better to own than to rent if you plan to be in a given area for at least two years. 200K income in San Diego is still a far cry from the median income, so this couple has more options than the average Joe.

Here is another look at the statistics according to San Diego Housing Commission:

http://www.sdhc.net/giaboutus2.shtml

The number of foreclosures in the area is scary, and those numbers were from 2005-2006. With the sub-prime bubble-pop, I'm guessing it's going to get worse for 2007, and the median home price will drop. They'll still get the tax write-off though.

[FromCalitoSteinerRanch]

Originally Posted by mrsengle

The only problem I have with this article is the example the author used. If you can afford it, of course it's always better to own than to rent if you plan to be in a given area for at least two years. 200K income in San Diego is still a far cry from the median income, so this couple has more options than the average Joe.

Here is another look at the statistics according to San Diego Housing Commission:

http://www.sdhc.net/giaboutus2.shtml

The number of foreclosures in the area is scary, and those numbers were from 2005-2006. With the sub-prime bubble-pop, I'm guessing it's going to get worse for 2007, and the median home price will drop. They'll still get the tax write-off though.

Good, I hope to get some good education everytime I post.

I don't know why, but when I saw his starting salary of $200K, I didn't even blink an eye! Doh, even though I got a very small raise when we moved out here, it was based on a lower salary after taking a 10% pay cut when I was hit by a full site closure for the high tech company I was working for over 8 years. And, it wasn't $200K!

I guess even though the article may make me feel better that we can rejoin the California market if we choose (fat chance, we wouldn't have enough for down payment), it could still be a sound decision. We have "two" reasons not to even think about it, and they are 6 3/4 and 8 years old.

[gigi927]

Cali...when we moved out of CA several years ago, we did it with the assumption that we'd never be able to get back in (if we ever wanted to)...now, maybe someday there's a chance for a nice little beach shack once husband and I are empty nesters!

[FromCalitoSteinerRanch]

Originally Posted by gigi927

Cali...when we moved out of CA several years ago, we did it with the assumption that we'd never be able to get back in (if we ever wanted to)...now, maybe someday there's a chance for a nice little beach shack once husband and I are empty nesters!

I found a beach shack once, and of course this was CA standards, so it was only one room. Actually, it was really just a bathroom, not be gross or anything, but I was really starting to like it.

Then someone else must have found the same place, and I became worried about a bidding war because they were trying to come inside too. But when I listened closely, they just kept saying, "hey, don't hog the "Port 'O Potty" and then I realized it was actually NOT for sale, yet...

[gigi927]

Originally Posted by FromCalitoSteinerRanch

I found a beach shack once, and of course this was CA standards, so it was only one room. Actually, it was really just a bathroom, not be gross or anything, but I was really starting to like it.

Then someone else must have found the same place, and I became worried about a bidding war because they were trying to come inside too. But when I listened closely, they just kept saying, "hey, don't hog the "Port 'O Potty" and then I realized it was actually NOT for sale, yet...

Funny, yet not too far from the truth, either!!!!

thanks for making my day with that laugh!

[mrsengle]

I think the worst part about the statistics listed in the website I posted was the statement: 'The minimum annual household income first-time buyers need to purchase a median-priced home at $472,000 in San Diego is about $100,000. (San Diego Metropolitan, 3/07; California Association of Realtors) '

Even if they had a 72K downpayment and 5% interest on a 30 year loan, their monthly payment would be $2147 (according to bankrate.com). That's about half of their net monthly income. I'm not saying it can't be done, but add a couple of kids and a car note to the mix, and there's no wiggle room if there's an emergency - let alone saving for retirement.

OK - not half, about 1/3. IF they had 72K to put down, which isn't even 20%.