Home flipping rampant in Orange County (Costa Mesa, Mesa: short sales, foreclosures, to rent)

[antarez]

Originally Posted by flo2900

Bush's version of capitalism was obtaining a 1 million dollar purchase loan with stated income. That better?
Lets look at the source of all this.

Let's look at who is failing NOW, Bush WAS a poor president, Obama IS a poor president.

[Electrician4you]

Originally Posted by flo2900

Bush's version of capitalism was obtaining a 1 million dollar purchase loan with stated income. That better?
Lets look at the source of all this.

You're right lets look at the source if all this
You might want to start by looking back past Pres. Bush and check into Pres. Clinton. The whole thing on loose lending started way before Pres. Bush
Look at this thing called Community Reinvestment Act which was passed and started during the Clinton era. At that time the gross misuse of Fanny and Freddy Mac and the selling of those now well know toxic MBS which didn't surface simply because ponzi borrowers were flush with cash. But back then was truly when the market started to go into the clouds.

[johnmanners]

Originally Posted by antarez

let's look at who is failing now, bush was a poor president, obama is a poor president.

+1

[Teckeeee]

Last time I was back at Christmas, I was chatting with the nurse at Hoag while my Mom was being seen. Oh you are from Denver metro my sister lives blah blah and it's cheaper to buy than rent there whereas here it's cheaper to rent than buy.

So why are people so gung ho to buy in OC when you can rent cheaper? I am planning to move back soon and unless I can find a fixer up in Costa Mesa I would rent.

[Electrician4you]

Originally Posted by Colorado xxxxx

Last time I was back at Christmas, I was chatting with the nurse at Hoag while my Mom was being seen. Oh you are from Denver metro my sister lives blah blah and it's cheaper to buy than rent there whereas here it's cheaper to rent than buy.

So why are people so gung ho to buy in OC when you can rent cheaper? I am planning to move back soon and unless I can find a fixer up in Costa Mesa I would rent.

.

Since now flippers/investors found a EASY way to just make a killing on home buying and selling and since they have big money backing them banks rather give them first dibs. Normal Buyer is either gonna get what nobody wants or they have to get in a bidding war to buy what a flipper/REO is selling.
Or the hedge funds/investment/banks that all are getting in on the landlord business are buying everything that normally would be purchased by the traditional first time buyer you can see why people are panicking to buy.

Basically your first time buyer is being cut out of getting into the low priced houses to start a family which does not allow the guy currently living in that first time buyer type house with his family to move up to another bigger house and the guy in that bigger house to move up to and so on.......all these buyers are being cut out.
The normal house buying cycle is disrupted because big bad wolf hedge/investment/flippers are just savaging the entry level market and even the higher end market and pumping the hell out of it by either renting it or sale price pumping it till you get a nose bleed. So people go ape s**t and start going nuts believing in the if you not get in you will be left out.

The problem with high house prices is that it ties up a lot of the money a family makes. And since a buyer has to overbid he most likely is stretching his finances so he has to spend more on the house and can't spend on the other things car, toys etc, he most likely will take a HELOC to buy those things. That means more debt more payments more financial stretching. So people saying high house prices are good for the economy are idiots. It's absolutely the worse for the economy. Just like high rents. It ties too much money to th roof over your head.

These house prices are just as crazy as the first bubble in 04-07. Believe me I worked through it, watching a few hundred people line up to get on a waiting list to get the opportunity to get on a qualifying list so they can bid. Oh yeah they got to bid on houses that were not even built. People were opening escrow on houses that didn't even have a foundation poured yet. You think I'm kidding? In Irvine one project sold ALL the houses in a track in a week. Houses wouldn't be ready for a year. Everybody is rooting or the prices to go up to the height of 05 as if somehow that will cure all. The only thing it will do is let the banks make their books whole and foreclose and sell these overpriced houses to some other head in the clouds foaming at the mouth to buy at any cost buyer.

[CA4Now]

"Mednick was slightly less optimistic, predicting the price run-up would last two to three years. More and more beginning investors, he said, will jump into the market as prices continue to rise. 'But there will be a point when it gets so hot that a lot of the big investors will be pulling back,' he said.
Home flipping frenzy returns to Southland real estate market - latimes.com

[Electrician4you]

Originally Posted by CA4Now

"Mednick was slightly less optimistic, predicting the price run-up would last two to three years. More and more beginning investors, he said, will jump into the market as prices continue to rise. 'But there will be a point when it gets so hot that a lot of the big investors will be pulling back,' he said.
Home flipping frenzy returns to Southland real estate market - latimes.com

I don't see this lasting another three years. Prices are already peaking and we are within 15-20% of the last bubble ( and we all know those prices were stupid inflated) and we are well on the way there but this time without the help of the HELOC money every homeowner was using to spend. I can tell you that a lot f people are stretching. i feel sorry fir anyone who s using a FHA loan now. yeah you got. Great rate but you better hope the value goes up like crazy and blue doesn't go own so you can refi otherwise you are gonna be stuck with lifetime PMI. What are you gonna do? Refi your house to a higher interest with a property that lost value because rates went up? FHA? You'll probably be stuck with that lifetime PMI. Better hope lues. Rocket up to the moon.
I can guarantee you my buddy wasn't buying a 50k truck and a 120k custom boat on a 65k a year income. Remember the last craze only lasted 2 years when it was on fire ( although the buying started way before that) but it boy took 3-5 months for the whole thing to crash down. It's like that game Jenga. I see this either flattening out with low sales low inventory or the fed loses control ( as if they ever had it) of long term interest rates and that's when IMO the " fun" begins. It will be so much fun were ll gonna laugh cause the other option is to cry

[CA4Now]

Originally Posted by Electrician4you

I don't see this lasting another three years.

I agree.

[russlancea]

Originally Posted by Colorado xxxxx

Last time I was back at Christmas, I was chatting with the nurse at Hoag while my Mom was being seen. Oh you are from Denver metro my sister lives blah blah and it's cheaper to buy than rent there whereas here it's cheaper to rent than buy.

So why are people so gung ho to buy in OC when you can rent cheaper? I am planning to move back soon and unless I can find a fixer up in Costa Mesa I would rent.

My husband and I have been renters since we got married back at the peak of the housing boom. Hubby and I wanted to buy, yeah, but couldn't justify the price. Now we have 2 youngins and renting even 3 bedroom, 1 3/4 bath apartment that felt like a house was not enough. Believe me, the rent I was paying for that unit was dirt cheap, but I had to give it up. Just bought a 4 bedrm, 1 3/4 house in a nice, quiet, "safe" (what's really safe these days?) area and wow, what a difference!

Why would someone buy when they can rent? If you can buy a well-maintained house that you can afford, I mean, afford with a lot of savings left in the bank for emergencies, it is sooo worth it. Believe me, my husband and I have been waiting for years for prices to drop to a reasonable price. We ideally hoped for prices to drop and interest rates to climb back to 6%, 7%? Well, we waited and waited and it just didn't happen. The market did not get flooded with foreclosures like we thought.

So who knows what will happen when investors leave the market???? Hubby and I decided we had to just buy and the opportunity was right. Private sale, we had the money, we needed more room, etc.

If I were to rent a comparable home, the rent would be MORE than my mortgage (interest, principal, taxes & insurance). Serious and I just bought my house. Rent is expensive out there. How much is it to rent a 4 bedroom, 1 3/4 bath in a good area? $2400, $2500? Even with the cost of water and trash, which I didn't have to pay at the apt, it's still cheaper. Some people just told me that 3 bedroom 2 bath apts rent around $2100 in Tustin, Costa Mesa, etc. No way!

Yes, I did give up $100k of my own money for the down payment. I now have to mow my own lawn, tend to my small garden, and do home repairs, but I actually love doing those things. The kids have room to play, we all have enough space for our belongings and toys and one day, maybe 30 years from now, it will be mine.

It's so worth it to buy if you can, but not everyone can. Oh, yes, don't buy a dump. I would rather rent than buy a money pit. Fortunately, my house was well taken care of, so didn't have to paint or do repairs. Wood roof will need tending to and replaced maybe in 5-6 years.

I don't say this to "rub it in", flaunt or anything. From my other posts, you may know that I had a mountain of debt to pay off once. To everyone who wants to buy, you can. You may have to sacrifice, but you can.

[Teckeeee]

russ that' s makes logical sense good for you.