Welcome to City-Data.com Forum!
U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > U.S. Forums > California > Orange County
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 06-16-2015, 02:33 PM
 
1,078 posts, read 1,076,568 times
Reputation: 1041

Advertisements

Quote:
Originally Posted by payutenyodagimas View Post
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
Yeah, as long as the Rent covers the Mortgage payments and gives you an extra $$$ income a month. It's all good.
Reply With Quote Quick reply to this message

 
Old 06-16-2015, 02:52 PM
 
Location: Sputnik Planitia
7,829 posts, read 11,788,932 times
Reputation: 9045
Just saw one of those guys carrying signs on the sidewalk in Irvine (near the District)... it says 1400 sqft townhomes new starting in the mid 700s, madness!

The bottom line is people are willing to stretch their budgets to buy, 5x or 6x income is what they are doing with their entire savings depleted towards the down payment. Some are even borrowing from 401k.
Reply With Quote Quick reply to this message
 
Old 06-16-2015, 05:37 PM
 
Location: So Ca
26,731 posts, read 26,812,827 times
Reputation: 24795
The article is not referring to balloon payments; it's about second mortgages and HELOCs.
Reply With Quote Quick reply to this message
 
Old 06-16-2015, 05:47 PM
 
5,151 posts, read 4,529,245 times
Reputation: 8347
[quote=russlancea;39248570]Wait it out, they said. No one can afford these homes. The bubble will burst...

My husband and I waited, thinking the market would be flooded with foreclosures after the first bubble. Nope, didn't happen.
The bubble did not burst but got bigger and bigger. Is it really ever going to stop? I hope so, but I have a feeling it's not going to happen.

I just came back from Northern California--Redwood City. The older homes on small lots start in the $800k. Will prices be that way down here?[/QUOTE




There was a bubble, big time in SoCal... San Diego Co., the Inland Empire, also Vegas, Arizona. San Diego is insane again.
Reply With Quote Quick reply to this message
 
Old 06-16-2015, 05:52 PM
 
1,078 posts, read 1,076,568 times
Reputation: 1041
[quote=thisplacesucks;40047309]
Quote:
Originally Posted by russlancea View Post
Wait it out, they said. No one can afford these homes. The bubble will burst...

My husband and I waited, thinking the market would be flooded with foreclosures after the first bubble. Nope, didn't happen.
The bubble did not burst but got bigger and bigger. Is it really ever going to stop? I hope so, but I have a feeling it's not going to happen.

I just came back from Northern California--Redwood City. The older homes on small lots start in the $800k. Will prices be that way down here?[/QUOTE




There was a bubble, big time in SoCal... San Diego Co., the Inland Empire, also Vegas, Arizona. San Diego is insane again.

The avg household income in OC is 75k. At 75k, they cannot afford a 550k home. Let alone the going rate of near 599k.

Bubble will burst. Not even sure how these people qualify for a $550k+ mortgage on a combined household income for 75k...

I'm guessing the majority of buyers are investors who are renting out these properties to people who get rental assistance by the Government or to a bunch of people depend on roommates.
Reply With Quote Quick reply to this message
 
Old 06-16-2015, 05:53 PM
 
5,151 posts, read 4,529,245 times
Reputation: 8347
Quote:
Originally Posted by CA4Now View Post
The article is not referring to balloon payments; it's about second mortgages and HELOCs.
That was a secondary problem during "the bubble". Several of my longterm neighbors & friends in San Diego Co. obtained HELOCS & lived large...new cars, lavish home improvements including pools...BAM...went into foreclosure on houses they had lived in 10-20 yrs....
Reply With Quote Quick reply to this message
 
Old 06-16-2015, 05:58 PM
 
1,078 posts, read 1,076,568 times
Reputation: 1041
Quote:
Originally Posted by thisplacesucks View Post
That was a secondary problem during "the bubble". Several of my longterm neighbors & friends in San Diego Co. obtained HELOCS & lived large...new cars, lavish home improvements including pools...BAM...went into foreclosure on houses they had lived in 10-20 yrs....

House just a few block away from me. I see a really nice Mercedes and boat that is collecting dust on the drive way.

Reply With Quote Quick reply to this message
 
Old 06-16-2015, 06:28 PM
 
Location: Laguna Niguel, Orange County CA
9,807 posts, read 11,142,657 times
Reputation: 7997
Quote:
Originally Posted by incognitoe View Post
House just a few block away from me. I see a really nice Mercedes and boat that is collecting dust on the drive way.
You are likely looking at the reasons why that person was overextended (Mercedes and boat). No sympathy here.
Reply With Quote Quick reply to this message
 
Old 06-17-2015, 09:39 AM
 
3,888 posts, read 4,542,046 times
Reputation: 5185
[quote=thisplacesucks;40047309]
Quote:
Originally Posted by russlancea View Post
Wait it out, they said. No one can afford these homes. The bubble will burst...

My husband and I waited, thinking the market would be flooded with foreclosures after the first bubble. Nope, didn't happen.
The bubble did not burst but got bigger and bigger. Is it really ever going to stop? I hope so, but I have a feeling it's not going to happen.

I just came back from Northern California--Redwood City. The older homes on small lots start in the $800k. Will prices be that way down here?[/QUOTE




There was a bubble, big time in SoCal... San Diego Co., the Inland Empire, also Vegas, Arizona. San Diego is insane again.
Yeah, where IS that shadow inventory I kept hearing about huh? I feel ya!
We have a middle class income on the humble side (for this area) but our credit is good and a few years ago we were ready to go with a pre-approved loan and everything. However, we didn't have a large down payment and still had some credit card debt that we were steadily paying off. Nevertheless, we could have afforded a 2 bedroom condo easy enough, it would have been as much as our rent.

Anyway, we were nervous and consulted with our friend's financial adviser and he wanted us to do everything "by the book", paying off all our debt, have a years savings for emergencies, save up for a 20% down, because he said his wife was a long time broker, and said it would be "yeeeeeaaaaarrrrs" until this thing sorted itself out! Ha ha... whoops!

Oh well, we're still in our apartment and it's fairly reasonable comparatively, and we're saving for our retirement I guess, cause we're not buying anything now. The condos in one complex where we were considering, are now going for 100 K more than they were 3 years ago!

So obviously the Financial Adviser's wife didn't see the Chinese coming. And the snowballing investor groups. I don't blame him... a lot of people didn't see the sharp rise coming, and no one has a crystal ball.
Reply With Quote Quick reply to this message
 
Old 06-18-2015, 08:15 PM
 
Location: Sputnik Planitia
7,829 posts, read 11,788,932 times
Reputation: 9045
interesting piece:


https://www.youtube.com/watch?v=bK4M2yVzNos
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:


Settings
X
Data:
Loading data...
Based on 2000-2020 data
Loading data...

123
Hide US histogram


Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > U.S. Forums > California > Orange County

All times are GMT -6. The time now is 01:04 PM.

© 2005-2024, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Contact Us - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37 - Top