dfw back to sunny sd (San Diego, Chula Vista: appointed, short sales, real estate)

[skeke]

It would be scary to spend 50% or more of one's income on a mortgage. Our mortgage takes 9% of our monthly income and that includes the impound account for taxes and insurance. I guess I don't need a lot to keep me happy. Since we both work for the State of CA we have both received roughly 15% cuts in the past few months due to furloughs. That has changed things. It has slowed down fixing up the house and for the first time in years I stayed away from the Nordstrom anniversary sale. My car is a modest one that was new in 2006. I intend to keep it for years. Cars just never were very important to me. I don't need a lot of stuff to be happy. I do need beauty and surround myself with that, but I don't need a lot of stuff. I'm sure you are right, that I would have a larger fancier house and more spending money somewhere else, but I like it here.

[Sassberto]

Originally Posted by skeke

It would be scary to spend 50% or more of one's income on a mortgage.

For most young families in San Diego, even renters, that is unfortunately the reality. I live near you, in a modest home with a modest lifestyle. But as a first time homeowner I didn't have the luxury of putting a huge amount of cash down. My mortgage is 30% of my income and it is comfortable. I'd still rather have it be smaller though. Many of my friends live in places like Carlsbad and Carmel Valley and have extremely large mortgages, monthly payments over 3k, even 4k/mo. I work with a woman my age who has a million-dollar home in Poway, her property tax bill is over 1k/mo. They are shackled to their 2-income lifestyle.

[nmnita]

Originally Posted by REGGieSD

my wife will continue school in san diego if we decide to move.



i guess the reality is setting in when it comes to the financial things...it sucks to hear that we can't afford to live in a city we love.

with the current pay i have now..i'm suppose to be making around 125k/yr in the next 3 yrs...and also if we move there, i get to take advantage of the gi bill that's available to military veterans...it pays me to go to school (or in my case, on-the-job training with the new facility i'll be working at) and it pays me a monthly allowance for school and the military housing allowance which will add a little bit of income for the next 2-3 yrs of my training.

when it comes to buying a home in the distant future, i have the va loan available which gives me the privilege of not having to put any money down for down payment for a home. but like i said, we were looking into renting/leasing a home for now until the wife finishes up school and starts working full time.

Reggie, I think the reality is setting in: yes, you have the GI bill, which is great but that doesn't make your payments and the VA loan doesn't help with house payments, in fact, because you do not have to put anything or much down, those payments can be even higher. Even if you are making $125,000 in 3 years which may or may not happen, you will not have any money left. The kids are going to start costing more as they get into activities. You probably already have seen that.

Of course in 2 years your wife will have graduated, that will be helpful, but in the meantime you have to pay for her education. If she is going to a public college, which I imagine she is, the out of state tuition is going to be another factor.

Nita

[The Gribbler]

Go. Go go go.

If I had the chance to move to SD I'd jump on it.

[skeke]

Yes. I do have friends who have large mortgage payments. A young couple in Sacto bought a house they were paying $2,800 a month for. I have friends here who are paying $3,000 per month on an interest only mortgage for an adorable cottage on a small lot. My age has made a difference. As I posted before, I started buying homes when you could get a house in AZ for under $20,000. With one exception, we always made money on the sale of each home. The exception was the Rancho Bernardo townhouse I bought after the divorce. I sold it and moved out of San Diego after buying in the highpriced early 90s and selling in the down turn that occurred in the mid nineties. I sold my last house for 275% more than I paid and plunged all the profit in to my current home, refusing to even consider anything that would not be doable in retirement. Some of afforability in homes is luck, some timing, some choices, some values. It became apparent to me when my son was looking that a house like mine (even in Poway, his city of choice) would not do. He wanted something large, nicer, newer. Of the eight homes I have owned four are my favorites: the first. in Phoenix, the fifth in Poway, the seventh in Sacramento, and finally, the eighth, in San Diego. The last house is the only tract home on the list, but I like it and being a 1950 house, it has been changed over the years, as have many others in the neighborhood, so it is unique, even though a tract house.

[zmover]

Originally Posted by Sassberto

Many of my friends live in places like Carlsbad and Carmel Valley and have extremely large mortgages, monthly payments over 3k, even 4k/mo.

Ditto, for me to have a similar home I had before I came here would be in the 600k range. That's at least a hefty 3+k a month.

People at work that are my age are one small step from disaster and both must remain working to afford a home. That's tough with kids and really no way to live when you've seen how others live.

My wifes family is from NYC area. They all moved out in the 80's to Florida and never looked back. Lord knows, I now understand why.. And at least they had NYC!

[nmnita]

Originally Posted by Sassberto

I don't want to discourage the OP - It definitely can be done - just a question of whether or not it's worth it. You have to understand and be willing to make the tradeoffs. High income + high COL is a tough road, you are putting a lot of pressure on your career and there is not a lot of room in bad times like now. It just depends on what you are willing to accept to live here.

Paying 50%+ of your income to housing with a single income and small children in a very uncertain jobs climate is stressful, at least to me. I would trade off sunshine in a hot second for a high income / low COL situation, I would feel a lot more at ease if I could bank another 20,30% of my income. Most of our friends are 2-income households and are right on the edge financially, one or two paychecks away from losing it all, I just can't live that way, not in San Diego at least. I might feel more comfortable in a big city where the jobs landscape was a bit more mature.

The other issue for me was that as a renter with a high income in a high-tax state you get taxed through the nose, so you almost have to buy property so at least you get to spend it on something you want. I remember writing 10k checks to the IRS, that is the worst feeling in the world.

I agree with you as I usually do: no one should try and discourage the OP, but to explain, the trade offs may not be worth it. I can see why the OP would like to return to So California, but I have lived in both places and DFW is a great place to raise a family plus it is affordable.

NIta

[Charles]

Originally Posted by REGGieSD

it sucks to hear that we can't afford to live in a city we love.

You didn't hear that or read it either.

Here are 52 recent sales, 4BR SFR, $300K to $400K, built before 1990 (so probably no Mello Roos) in decent school districts, in the north SD/Poway area:

Recent Sales $300K to $400K SFR, 4 Bedrooms

[zmover]

It's unlikey an honest homeowner will get a deal here. Those 300k homes in Poway could have been REO's and from what I understand you're competing with sophisticated investors, such as outlined in this thread, who often have indside access.

IMHO this RE speculation which is rampant in SoCal is unatractive to workers. Instead of working through industry and stable employment, people think a home is a retirement vehicle. And it has indeed been here. I'm not interested in paying for someones retirement.

I hope this week marks one of my last here, then ya'll won't have to deal with my minority view point. However if I must stay I'm sure I'll adjust.

[Charles]

Originally Posted by zmover

It's unlikey an honest homeowner will get a deal here. Those 300k homes in Poway could have been REO's and from what I understand you're competing with sophisticated investors, such as outlined in this thread, who often have indside access.

One of the nice things about Redfin is you can filter out short sales.

Here is an example of a home for sale that isn't a short sale (listed at $375K now, sold for $560K in 2004)

10120 Tilton, San Diego, CA 92126 | MLS# 090047154

It is listed at $275/sqft, the recent sales I listed earlier are more like $230/sqft, so there is evidence of wiggle room.

Originally Posted by REGGieSD

i have the va loan available which gives me the privilege of not having to put any money down for down payment for a home.

This guy (the original poster) has a solid job. I think he can make this happen. In fact, with 20% down (which I think he wrote he doesn't need to do), he could pull this off on his income alone - easily.

If a person ever wanted to move to California, he may have a golden opportunity in the next year or two. Rates are low, prices are falling.