SANDAG: Housing Crunch Is Not Going Away Anytime Soon (San Diego: loans, how much)

[NYSD1995]

When I bought my first house at 29 (top of the bubble in 2005) homes were more expensive when they were now and interest rates were higher. Saved my ass off, put a big wad (70k) of hard earned cash down and watched the market tank and my equity evaporate. Stayed put, paid my mortgage, saved for another 10 years and bought a nicer house and now I rent out the old one. That same house today is actually LESS expensive than 13 years ago - our interest rate was 2 points higher.

It's pretty simple math... if you can't buy and your income qualifies, you either have not enough cash or bad credit. If you have not enough cash, why didn't you save more? What happened to your money all those years? If you have bad credit, you have to deal with that before you can buy, I went through that too. This is just the reality of buying a home in an expensive city.

No one would say "I grew up in NYC and I'm not an investment banker, why can't I afford a penthouse", right? Blaming others for not wanting to turn SD into Tokyo is a false argument. A lot of people feel entitled not only to live in a certain place but to own in a certain place, take some personal responsibility and stop blaming everyone else, no one is trying to deny you a place to live.

[BBslider001]

Originally Posted by Sassberto

When I bought my first house at 29 (top of the bubble in 2005) homes were more expensive when they were now and interest rates were higher. Saved my ass off, put a big wad (70k) of hard earned cash down and watched the market tank and my equity evaporate. Stayed put, paid my mortgage, saved for another 10 years and bought a nicer house and now I rent out the old one. That same house today is actually LESS expensive than 13 years ago - our interest rate was 2 points higher.

It's pretty simple math... if you can't buy and your income qualifies, you either have not enough cash or bad credit. If you have not enough cash, why didn't you save more? What happened to your money all those years? If you have bad credit, you have to deal with that before you can buy, I went through that too. This is just the reality of buying a home in an expensive city.

No one would say "I grew up in NYC and I'm not an investment banker, why can't I afford a penthouse", right? Blaming others for not wanting to turn SD into Tokyo is a false argument. A lot of people feel entitled not only to live in a certain place but to own in a certain place, take some personal responsibility and stop blaming everyone else, no one is trying to deny you a place to live.

LOL....not even sure where or how this applies, but thanks for your input. Tokyo? Blaming others?

[SEAandATL]

Originally Posted by BBslider001

LOL....not even sure where or how this applies, but thanks for your input. Tokyo? Blaming others?

Isn't San Diego already nicknamed "San Diokyo"? Lol

[TacoSoup]

Originally Posted by SEAandATL

Isn't San Diego already nicknamed "San Diokyo"? Lol

I’ve been here since 1982 and have never heard that. I would’ve, I’ve heard them all.

[T. Damon]

Originally Posted by SEAandATL

Isn't San Diego already nicknamed "San Diokyo"? Lol

You are mixing up San Diego with Vancouver, British Columbia aka, Hongcouver.

San Diego doesn’t nearly have the foreign buyers of that city, the Bay Area or Orange County, though there is more than a few, including wealthy Mexicans owning a good chunk of Coronado Shores.

[SEAandATL]

Originally Posted by T. Damon

You are mixing up San Diego with Vancouver, British Columbia aka, Hongcouver.

San Diego doesn’t nearly have the foreign buyers of that city, the Bay Area or Orange County, though there is more than a few, including wealthy Mexicans owning a good chunk of Coronado Shores.

Actually I was jokingly mixing it up with "San Fransokyo" in reference to the movie Big Hero 6. Maybe not so much related to the topic of this thread, but California as a whole is said to be like Japan.

[SanSav]

Here in Golden Hill, we've got a few new developments, condos and such. The "guild on 30th" seems to be pretty well representative of them all. Prices seem quite high, the one bedroom being listed at 529k and 2 bedrooms listed at 700. Of the five Broadway facing units, only one has sold and another has a for rent sign. I've no idea how much they're asking for rent. The rest are all available.They came on the market (as far as I can tell) July of last year.

I find it odd that the asking prices remain the same even after nine months. Most properties that sit for 9 months would be discounted, ... right? So I really wonder if what's happening here is happening in most of these other new developments around town where many of these "luxury" spaces sit vacant. One would think that negotiating still happens, right?

as an aside, calling housing in golden hill "luxury" is at best, ridiculous.

[metoque]

Things that would help San Diego prices and inventory:
- Eliminate Prop13 and value-based property taxes. Make them based on type and size of land so that it's WAY more fair.
- Prohibit foreign investment in residential real estate
- Eliminate all tax benefits to landlords and owners of 2nd homes and beyond.
- Fed needs to unwind it's QE, which is happening now, so that interest rates are set by the market and not so artificially low

A lot of people (especially homeowners) are in denial about how much of a debt bubble our world is in, and it will come crashing down bringing real estate with it. Enjoy the price gains you've had.

[1AngryTaxPayer]

My house currently valued at around 750K sold for 16 grand in the 60s. I'd say it's easy to see which way values are headed.

Some win, some lose.

[expatCA]

Originally Posted by metoque

Things that would help San Diego prices and inventory:
- Eliminate Prop13 and value-based property taxes. Make them based on type and size of land so that it's WAY more fair.
- Prohibit foreign investment in residential real estate
- Eliminate all tax benefits to landlords and owners of 2nd homes and beyond.
- Fed needs to unwind it's QE, which is happening now, so that interest rates are set by the market and not so artificially low

A lot of people (especially homeowners) are in denial about how much of a debt bubble our world is in, and it will come crashing down bringing real estate with it. Enjoy the price gains you've had.

The people buying homes now can afford it. If the market crashed to where they couldn't, no one could so it would help no one except the rich and foreign buyers. Can't buy a home if you have no job.