Why People Moving to CA Should RENT For 1-2 Years (Moreno Valley: sales, real estate)

[MiamiDisplaced]

We have been looking for a home here in CA intensely for about 6 months. And moved here about 3 months ago. We are currently renting. I/we have been pulling my hair out trying to find a place to live here in SoCal.

Viewing this segment on CBS 60 Minutes really made me throttle back and relax on the immediate need to buy something. I suggest anyone that is looking to purchase and are currently renting to just wait this out. In addition to Fortune magazine saying in LA county we have another 25% free fall, is this 60 Minutes piece saying it's going to be worse than that.

Don't let realtors tell you we are at the bottom. I have 4 different realtors working in 4 different areas all telling me the same.....that we are very close, if not at, the bottom. And I have a close friend....extremely realestate savvy telling me not to do an f....g thing. Told me before I left Miami to plan on spending xmas in boxes. To not unpack more than I need to live for a year and wait this out. That advice couldn't have been more on the mark.

Here's the link:

A Second Mortgage Disaster On The Horizon?, 60 Minutes: New Wave Of Mortgage Rate Adjustments Could Force More Homeowners To Default - CBS News

[dweej]

This is great advice for a longterm financial investment- I just hate how expensive rent is, and if you're renting a house in the IE these days, chances are that it will go into foreclosure and you'll be evicted just a couple months after moving in. If you've got kids, you know constantly moving, changing schools, getting resettled isn't something you want to put your family through. So renting is a dicey game these days too, unless you stick with apartments....

[tkdmom]

It seems kind of greedy to me. If you are in need of a home you should buy it.

[dweej]

Hmmmmm....I don't know about that. If you need a moving van, is it greedy to only rent it because you'll only need it for a short time and? Buying it would be the 'not greedy' way to go? I think buying it would be financially insane. Rentals are built into the system for a reason, and I can see circumstances where it is beneficial and necessary for all parties involved, I'm just saying that it's risky to rent a house around here these days, especially if you have kids. Plus, sometimes you don't have enough money for your down payment yet....so where do you live then?

[IloveOC]

I would like to post my opinion just to help you make your decision. I have ben in the mortgage business for over 20 years. Most people who are paid commission will say whatever it takes to make a sale. I have bought and sold many homes and found the majority looking to make a sale - rather than looking for what I was interested in. However, I am not bullied into a sale and I take all information in - think about it - and then make my own decision. I have also seen the same done by mortgage consultants who are not looking out for their customers best interest, but how much they will be paid on that loan.

Just use common sense and do your own research, so that you feel comfortable with the decision you make. I cannot speak or the California property market - but I do know that rates are down a little and could come down a little more. We are anticipating a possible drop around March. But that is a gamble too. Maybe someone there can refer you a real estate agent they have worked with and trust.

[EscapeCalifornia]

Originally Posted by tkdmom

It seems kind of greedy to me. If you are in need of a home you should buy it.

Choosing not to dump your life's savings into an illiquid asset that won't be worth what you paid for it next month is greedy? How smart is it to set yourself up to lose tens or hundreds of thousands of dollars by buying a house today?

[EscapeCalifornia]

Originally Posted by dweej

if you're renting a house in the IE these days, chances are that it will go into foreclosure and you'll be evicted just a couple months after moving in.

Does anyone know how you can check up on a house to make sure the owner is making the payments?

[dweej]

Originally Posted by EscapeCalifornia

Does anyone know how you can check up on a house to make sure the owner is making the payments?

This I don't know, but I do know that since CA is a full disclosure state, you can find previous sales prices pretty easily. Basically if someone bought in 2002 for $450K and is now offering the place for rent for $1600 per month, chances are that they're just gonna pocket your money and run. Maybe you're safe if the property has been a rental before and was purchased before the bubble at a decent price, the payment for which your rent will more than cover.... ?

[tkdmom]

Originally Posted by EscapeCalifornia

Choosing not to dump your life's savings into an illiquid asset that won't be worth what you paid for it next month is greedy? How smart is it to set yourself up to lose tens or hundreds of thousands of dollars by buying a house today?

Of course not !

Here's something to think about though, by the time prices bottom out AGAIN, certain neighborhoods will probably not be as desirable as they once were, due to a lower socio economic class of people moving in anyway. Isn't that what happened to Moreno Valley !

[tkdmom]

Originally Posted by dweej

Hmmmmm....I don't know about that. If you need a moving van, is it greedy to only rent it because you'll only need it for a short time and? Buying it would be the 'not greedy' way to go? I think buying it would be financially insane. Rentals are built into the system for a reason, and I can see circumstances where it is beneficial and necessary for all parties involved, I'm just saying that it's risky to rent a house around here these days, especially if you have kids. Plus, sometimes you don't have enough money for your down payment yet....so where do you live then?

Yes, it's greedy to rent a moving van !

I guess it's a personal choice, but I would never want to live in a rental or an apt. I've owned my home for going on 13 yrs., and even though it's not worth what it was a few years ago, I'm going to ride out the crash, because atleast myself and my kid won't have to be subjected to someones rules, and will never be evicted. That's what I meant by greedy, need should trump money. Because even if you do get a great deal, value could drop again, it's not gauranteed.

And yeah, it is risky renting a home around here these days. A lot of them are in foreclosure.