1st time homebuyer - Not looking so good right now (San Diego: rent, condos)

[Podo944]

Originally Posted by incognitoe

The housing market right now is just crazy. I've seen listing that are just 2-3 days old that now have "SOLD" right on the sign. And some of these properties are garbage.

Can't believe just 3 or so years ago, I could have purchased a property for $400k.

Wow... drove down a street in my old stomping grounds in the San Fernando Valley, and saw this house for sale. Over a mill for an 80 year old 2 bedroom, 1 bath with some dirty carpets. Location location location I guess, and yes, it's in a prime spot in Studio City right behind Arts Deli, and it's a pretty street, but the area is dense, the traffic nuts, (I couldn't WAIT to get out of the valley where I grew up when we moved to Orange County) but if someone wants to live near all those cool shops and restaurants and spot a celebrity every so often, well... different strokes I guess.

12124 Cantura St, Studio City, CA 91604 is For Sale | Zillow

[payutenyodagimas]

Originally Posted by mrwumpus

I think they are returning to bubble level. During the last bubble peak my parents' 3BR/3BA townhouse in Portola Hills was estimated at high around $540k, and right now it is inching toward $500k again. Time to sell and run for the hills in another state!

we bought at $450k last Nov and recent sales are already in $510s

[LuvSouthOC]

Originally Posted by Podo944

Wow... drove down a street in my old stomping grounds in the San Fernando Valley, and saw this house for sale. Over a mill for an 80 year old 2 bedroom, 1 bath with some dirty carpets. Location location location I guess, and yes, it's in a prime spot in Studio City right behind Arts Deli, and it's a pretty street, but the area is dense, the traffic nuts, (I couldn't WAIT to get out of the valley where I grew up when we moved to Orange County) but if someone wants to live near all those cool shops and restaurants and spot a celebrity every so often, well... different strokes I guess.

12124 Cantura St, Studio City, CA 91604 is For Sale | Zillow

And that tiny house needs a little updating too

[k374]

One article I read says incomes have risen very strongly to support increased price levels and unemployment in Southern California is at record low levels. There is supposed to be a huge shortage of talent and the labor market is supposedly very tight especially in high paying fields such as technology and engineering.

[Cardiff Kook]

Originally Posted by payutenyodagimas

we bought at $450k last Nov and recent sales are already in $510s

Same...similar houses to mine are already selling for 70k more than I bought my house for a little over a year ago

[k374]

Originally Posted by Cardiff Kook

Same...similar houses to mine are already selling for 70k more than I bought my house for a little over a year ago

This is one of the reasons why real estate is so hot, where can investors get this sort of return on investment? Not only do you have ridiculous capital gains you also get rental income from the property. It is an insane rate of return and for investors it is just like they have died and gone to heaven.

[payutenyodagimas]

Originally Posted by k374

This is one of the reasons why real estate is so hot, where can investors get this sort of return on investment? Not only do you have ridiculous capital gains you also get rental income from the property. It is an insane rate of return and for investors it is just like they have died and gone to heaven.

If you don't have to pay brokers fees and prop taxes, yes its a good investment. I am not even thinking if my 20% dp will return 100% after 10 years

[LuvSouthOC]

Originally Posted by k374

This is one of the reasons why real estate is so hot, where can investors get this sort of return on investment? Not only do you have ridiculous capital gains you also get rental income from the property. It is an insane rate of return and for investors it is just like they have died and gone to heaven.

Just remember we are a boom and bust state. People need to remember that this was almost entirely a monetary created boom. There are far too few first time buyers in the mix. There are still people who are out of the workforce, those with jobs are constrained by debt, and so many of our better paying jobs are going to HIBs.

I think at the prices I am seeing, we are now in bubble territory. However, the prices are lower in real terms as compared to 2006 because we have printed so much money so perhaps the bubble is not quite as bad as it was then.

Think hard before buying unless you plan to stay in that place for the long haul.

[mrwumpus]

Originally Posted by Cardiff Kook

Same...similar houses to mine are already selling for 70k more than I bought my house for a little over a year ago

A couple 3BR/3BA townhouses in Portola Hills are pushing almost $500k but those seem to have upgrades and/or bigger yards than usual. Still, that's only $40k or so less than the last bubble.

[incognitoe]

Why do people buy town homes? Are these like Seniors who are to lazy to do yard work or to find someone to do it for them?