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I just bought a house and it will cost half as much to own vs rent same house


By PockyClipsNow   Follow   Fri, 12 Oct 2012, 3:54pm   29,080 views   564 comments
In Los Angeles CA 90044   Watch (0)   Share   Quote   Permalink   Like   Dislike  

I hope this is a real world math lesson for some of the 'should I buy now' crowd. Its a tough decision.

Price: 875k
$ Financed: 700k

Loan: 5/1 Interest Only ARM at 2.875 with .25 points (union bank)
Payment: 1677
Prop tax: 912
total: 2588
(im in 28% effective tax bracket so 2588 * .72 = 1863 'after tax write off payment')
Add fire ins of 129 per month and total pmt after tax write off = $1992

This is a custom built, recently remodeled huge estate home on acreage and zoned for horses - would rent for 3800 to 4200 based on craigslist comps.

If I change jobs I can make 1k per month easy in profit when renting it out. Its not a great rental though, but an awsome to live in property.

I sold four homes off in 05/06 and the plan was wait for 50% drop then buy back in. Well prices only came down to 70% of peak fraud prices - close enough with the low intrest rates (which I am betting are permanent, as in the rest of your life. If rates spike in 5 years I will simply pay off the loan, refi, or get a loan mod - no worries here.)

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  1. The Professor


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    525   8:28am Mon 25 Mar 2013   Share   Quote   Permalink   Like   Dislike   Protected  

    I live in a world where:
    Housing costs are going up but but wages are not.
    Wealthy people are getting more and the poor are asked to do with less.
    Higher insurance premiums are called "Affordable care".
    War after war are declared but never won.

    If it is to your advantage to see housing costs go up then "housing recovery" sounds good. If you are one car breakdown from poverty, rising rent is a catastrophe.

    I have nothing against landlords, someone has to provide housing for the transient. I do have a problem with the government enacting policies that benefit a few and cause suffering for many.

    Pockylips just bought a house. He would have to pay twice as much to rent a similiar house. Of course Pockylips had the savings for a down payment, good credit, and good timing.

    Housing is NOT a right, but I do not want to live in a land of serfs ruled by the overlord class.

  2. David Losh


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    526   8:43am Mon 25 Mar 2013   Share   Quote   Permalink   Like (1)   Dislike  

    robertoaribas says

    buying in 2006 and 2007 certainly was foolish and very risky, no wonder you have left active real estate.

    You have no idea what you are saying or talking about.

    My margins in 2006, and 2007 were twice what flippers are getting today. We turn properties, but not today, because the margins are tight.

    You are looking solely at your own get rich quick scheme, and trying to make it universal.

    The facts are that not all Real Estate market places are rising, as I pointed out about Atlanta. 2008, or 2009 was the bottom of the Real Estate if you wanted to use that phrase.

    You claimed banks were stupid to sell properties in 2008, 2009, for less than if they had waited. I said banks know exactly what they are doing.

    Banks did pull inventory, and they are getting twice the price for properties by creating an artificial shortage, coupled with historically low interest rates.

    Now we have Billions of dollars tied up in Real Estate assets from large investors. Those investors will move on the same as they did after the Savings, and Loan scandal.

    There is nothing in you being a college professor, in math, or anything else that would prepapre you for a career in Real Estate. The Real Estate market place is getting more clear, and you are getting more lost.

    Have another bottle of wine, look at your sales data, pat yourself on the back again, but you should really come up with some new material.

  3. Reality


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    527   9:18am Mon 25 Mar 2013   Share   Quote   Permalink   Like   Dislike  

    The Professor says

    Real estate agent?

    No.

    Do you have a job title and description you are willing to claim?

    I have several jobs. The one most closely related to the topic at discussion, my customers call me "landlord" but I don't consider myself landlord as I doubt any of them would be interested in renting land from me if the properties that I own were bare land. I manage and repair houses so the people on annual leases can have a place to call home without having to deal with the repairs, up keeps, paying expensive transaction fees or exposed to the gyrations of the housing market prices. Meanwhile, the town gets the tax bills paid and the properties maintained so they don't become eye sores. That's why I call myself a housing service provider in that job capacity.

    I teach computer science and applications to college students. I am a teacher. My mission is to inspire confidence and instill ability.

    You are a petty bureaucrat. Your primary goal at the college is to draw a tenured check that is better pay than what you can get elsewhere. If you were primarily concerned with inspiring confidence and instill ability, you'd be either volunteering without pay or start your own computer science after-school program so you don't have to deal with the typical college administrative bureaucracy.

  4. Reality


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    528   9:21am Mon 25 Mar 2013   Share   Quote   Permalink   Like   Dislike  

    The Professor says

    If it is to your advantage to see housing costs go up then "housing recovery" sounds good. If you are one car breakdown from poverty, rising rent is a catastrophe.

    What do you think would drive rent down? More housing service providers on the supply side! It's no different from encouraging private food production by farmers would result in plenty food for everyone, whereas government bureaucratically run "fair" food production schemes always end up in mass starvation. Every time I finish renovate a house, guess what I have to do in order to attract customers? I have to offer a price lower than my competitors in order to get my units filled quickly! Time/occupancy is a perishable good.

  5. mell


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    529   9:26am Mon 25 Mar 2013   Share   Quote   Permalink   Like (1)   Dislike  

    Reality says

    The Professor says

    If it is to your advantage to see housing costs go up then "housing recovery" sounds good. If you are one car breakdown from poverty, rising rent is a catastrophe.

    What do you think would drive rent down? More housing service providers on the supply side! It's no different from encouraging private food production by farmers would result in plenty food for everyone, whereas government bureaucratically run "fair" food production schemes always end up in mass starvation. Every time I finish renovate a house, guess what I have to do in order to attract tenant? I have to offer a price lower than my competitors in order to get my units filled quickly!

    But your willingness to hold out for the price you want to get strongly depends on how much your financing and upkeep costs are for keeping it vacant. And if you have access to close to zero interest rates you can certainly wait much longer, thus reducing the pressure to underprice for anybody.

  6. Reality


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    530   9:36am Mon 25 Mar 2013   Share   Quote   Permalink   Like   Dislike  

    mell says

    But your willingness to hold out for the price you want to get strongly depends on how much your financing and upkeep costs are for keeping it vacant. And if you have access to close to zero interest rates you can certainly wait much longer, thus reducing the pressure to underprice for anybody.

    Do the math, every month of vacancy would require 9% higher rent in the next 11 months to make up! If you were ever on the supplier side, you'd know that vacancy is extremely costly, usually the result of the owner getting distracted by something else in his/her life and unable to manage the property efficiently, not a deliberate strategy.

  7. mell


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    531   9:43am Mon 25 Mar 2013   Share   Quote   Permalink   Like   Dislike  

    Reality says

    mell says

    But your willingness to hold out for the price you want to get strongly depends on how much your financing and upkeep costs are for keeping it vacant. And if you have access to close to zero interest rates you can certainly wait much longer, thus reducing the pressure to underprice for anybody.

    Do the math, every month of vacancy would require 9% higher rent in the next 11 months to make up! If you were ever on the supplier side, you'd know that vacancy is extremely costly, usually the result of the owner getting distracted by something else in his/her life and unable to manage the property efficiently, not a deliberate strategy.

    Sure, but what do you think about the reports a couple of years ago about big real estate trusts that just let their mostly commercial complexes sit and rot until they get an acceptable offer by the city/state to fill it or buy them out because it was better for them to roll over, especially if they financed those properties mostly and hardly had any down-payment at stake?

  8. Reality


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    532   9:47am Mon 25 Mar 2013   Share   Quote   Permalink   Like (1)   Dislike  

    mell says

    Sure, but what do you think about the reports a couple of years ago about big real estate trusts that just let their mostly commercial complexes sit and rot until they get an acceptable offer by the city/state to fill it or buy them out because it was better for them to roll over, especially if they financed those properties mostly and hardly had any down-payment at stake?

    They needed more competition. The city/state should never be in a position to be able to fill them or buy them out to begin with. Talk about messed up incentives.

  9. The Professor


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    533   11:25am Mon 25 Mar 2013   Share   Quote   Permalink   Like   Dislike   Protected  

    Reality says

    you'd be either volunteering without pay or start your own computer science after-school program so you don't have to deal with the typical college administrative bureaucracy.

    You go volunteer. I have bills to pay.

    I have run an after school technical program at a middle school. I taught Lego robotics, Video Game programming and Computer applications. Moved on, but I still have the largest Lego collection of anyone I know.

    We all have to deal with bureucracy (even you reality) but I am not a bureucrat. I am a teacher. I make a positive difference in the world. I help people learn and I earn my pay.

    Reality says

    my customers call me "landlord" but I don't consider myself landlord

    There is no shame in being a landlord. As you explained you provide a needed service. Would you prefer the title "Keeper of Houses"?

  10. The Professor


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    534   11:33am Mon 25 Mar 2013   Share   Quote   Permalink   Like   Dislike   Protected  

    Reality says

    Do the math, every month of vacancy would require 9% higher rent in the next 11 months to make up! If you were ever on the supplier side, you'd know that vacancy is extremely costly, usually the result of the owner getting distracted by something else in his/her life and unable to manage the property efficiently, not a deliberate strategy.

    Banks have done the math. In their calculus not only can they go without collecting mortgage they will also pay a delinquent loanowners taxes and insurance.

    There are still more pre-foreclosures than for sale houses in California. There are still a lot of bank owned unoccupied houses (2 within 2 blocks of me).

    "All real estate is local". There may be some healthy real estate markets but the system is sick.

  11. Reality


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    535   11:45am Mon 25 Mar 2013   Share   Quote   Permalink   Like   Dislike  

    The Professor says

    You go volunteer. I have bills to pay.

    Actually I do/did. I volunteered at local schools and colleges when I had more time.

    The Professor says

    There is no shame in being a landlord. As you explained you provide a needed service. Would you prefer the title "Keeper of Houses"?

    I may consider that. Thanks. I don't like the term "landlord" because the term's imprecision: the primary asset of value is not land but the house, and there is no "lordship" but a service, me and my workers being at the service of the customers. The appropriate medieval analogy would be the innkeeper not the feudal lord. It's a two-way negotiation for service at pay, not overlordship.

  12. Reality


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    536   11:48am Mon 25 Mar 2013   Share   Quote   Permalink   Like   Dislike  

    The Professor says

    Banks have done the math. In their calculus not only can they go without collecting mortgage they will also pay a delinquent loanowners taxes and insurance.

    Banks do that in order to avoid recognizing losses on bad loans. It's a form of fraudulent book keeping. The hope is to punt to the next bank manager or wait for taxpayer bailout.

    The typical housing service provider however have no such luxury. He/she would have to eat the lost revenue by him/herself.

  13. The Professor


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    537   11:57am Mon 25 Mar 2013   Share   Quote   Permalink   Like   Dislike   Protected  

    Reality says

    The Professor says

    Banks have done the math. In their calculus not only can they go without collecting mortgage they will also pay a delinquent loanowners taxes and insurance.

    Banks do that in order to avoid recognizing losses on bad loans. It's a form of fraudulent book keeping. The hope is to punt to the next bank manager or wait for taxpayer bailout.

    The typical housing service provider however have no such luxury. He/she would have to eat the lost revenue by him/herself.

    There is the problem. Our taxes and the secretive Fed has propped up the fraudulent banks.

    The bigger problem is the entire FIRE industry and the lawyers and politicians they finance. Too many counterproductive people.

  14. Reality


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    538   11:59am Mon 25 Mar 2013   Share   Quote   Permalink   Like   Dislike  

    To the original poster's numbers:

    At 1% annual repair reserve, the $875k house needs a $730/mo repair and "honey-do" reserve (most home improvements demanded by the wife will have very little resale value in the future). So between the $3800 rental potential and $2588 PIT, there's only less than $500/mo left for insurance and water/sewer bill, which just about cover the $500/mo for such a house.

    So the original poster is getting almost 0% return on his $190k or so down payment and purchasing/closing cost, as far as cash flow is concerned. The only gain since buying would have to come from home appreciation.

    What's there to be jealous about again?

    Just as I suspected, the "rent being double the ownership cost" is pure figment of imagination. The doubling can not possibly be there when the house' rental yield is so low.

  15. PockyClipsNow


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    539   12:02pm Mon 25 Mar 2013   Share   Quote   Permalink   Like   Dislike  

    Well 20% price appreciation is pretty sweet. I will let you all know what my best offer is - plan to sell in June.

  16. The Professor


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    540   12:19pm Mon 25 Mar 2013   Share   Quote   Permalink   Like   Dislike   Protected  

    Reality says

    It's a two-way negotiation for service at pay, not overlordship.

    I am gonna lose Reality with some conspiratorial theory.

    The real owners don't work at all. The oligarchy has minions that are constantly coming to them with schemes and profit splits. They, the powers that be, are constantly scheming and playing with the muppets.

    The right hand knows not the orders to the left.

    The overlords perpetuate war, class, race, real war. They care not the suffering their machinations cause.

    Landlords are not the overlords. The keeper of the house is smarter, or luckier, than the tenant. They posess the real estate.

    They earn their money. Many of them, like Roberto and Iwog, have been quite successful in gaming the system. They work.

    The oligarchy wants us to hate the player. They rig the game.

    Back to Reality.

  17. Reality


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    541   9:27pm Mon 25 Mar 2013   Share   Quote   Permalink   Like   Dislike  

    Roberto,

    Budgeting 1% of house value as annual repair reserve is fairly standard practice for basic home ownership financial planning. Water heater replacement is a miniscule cost in the scheme of things. The more expensive items are like roof etc. More expensive houses tend to have bigger more expensive roofs and are located in areas with higher cost of labor.

    In the cases similar to the original poster, where the house price to rent yield ratio is close to 20:1 (both of us would probably pause at somewhere close to 10:1), I was also counting the typical wife's demand on frivolous home improvements towards that 1%. Improvements that will add very little to house value at sale time. It's just a matter of keeping up with the Joneses in those neighborhoods and keeping a wife.

    As for banks being slow at recognizing losses, what I wrote was not a statement on whether they are doing it, but a reason for why they did it once upon a time (if they did), as The Professor raised the issue.

  18. Reality


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    542   9:53pm Mon 25 Mar 2013   Share   Quote   Permalink   Like   Dislike  

    robertoaribas says

    the home owner is on the thread, why not ask him what he spent in his 9 months of ownership?

    What he has done in 9 months in anticipation of selling after less than a year of ownership is not necessarily reflective of the long term ownership cost. A roof has to be replaced after a couple decades. The gradual deterioration takes place over time, not in the single year prior to replacement.

    robertoaribas says

    My girlfriend leaves all home improvement decisions to me, since I'm the expert...

    That's why you and I keep girlfriends instead of wives. OTOH, girlfriends have their own problems due to lack of commitment from us. There is no perfect solution in life. Sometimes we can be slaves to what we own.

  19. The Professor


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    543   10:03pm Mon 25 Mar 2013   Share   Quote   Permalink   Like   Dislike   Protected  

    robertoaribas says

    Banks have to file SEC reports of how many loans are 30/60/90 days late or in foreclosure. SO, they simply are not sitting on homes,

    Because you say so?

    Are you saying all of the Zillow pre-foreclosure listings are bogus?

    Isn't the SEC the bureucracy that is supposed to stop banking fraud?

    There are houses sitting empty and delinquent loanowners whose insurance and property tax are being paid by the bank.

  20. Reality


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    544   10:07pm Mon 25 Mar 2013   Share   Quote   Permalink   Like   Dislike  

    Roberto,

    We are not talking about a million dollar two BR condo in NYC, but in the original poster's words a "huge estate home on acreage, zoned for horses" There are probably substantial on-going landscaping and grounds keeping expenses in addition to maintaining the "huge estate home" house structure itself.

  21. The Professor


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    545   10:31pm Mon 25 Mar 2013   Share   Quote   Permalink   Like   Dislike   Protected  

    The fringe neighborhoods of the San Francisco Bay Area are among the most troubled real estate markets in the country. The bank is sitting on thousands of homes. They are paying for insurance and property taxes while letting the underwater loanowner occupy the house for free.

    Following are a couple random examples of loanowners not being foreclosed.

    http://www.zillow.com/homes/Antioch-CA_rb/#/homedetails/2626-Leopard-Way-Antioch-CA-94531/50916510_zpid/
    AUG 30 2005 Loan issued $520,000
    FEB 19 2013 Home in default $22,387 past due
    Foreclosure Est: $271,841

    http://www.zillow.com/homes/Pittsburg-CA_rb/#/homedetails/750-Central-Ave-Pittsburg-CA-94565/18315173_zpid/
    MAY 24 2012 Loan issued $210,587
    NOV 29 2012 Home in default $10,882 past due
    Foreclosure Est: $104,262

    http://www.zillow.com/homes/vallejo_rb/#/homedetails/3423-Edgewater-Pl-Vallejo-CA-94591/51602865_zpid/
    AUG 6 2001 Previous sale $435,000
    SEPT 1 2005 Loan issued $628,000
    JAN 23 2013 Home in default $61,908 past due
    Foreclosure Est: $310,931

    http://www.zillow.com/homes/vallejo_rb/#/homes/make_me_move/pf_pt/days_sort/38.376654,-121.736069,37.800561,-122.455673_rect/9_zm/
    Try your own random click.

  22. Philistine


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    546   11:15pm Mon 25 Mar 2013   Share   Quote   Permalink   Like   Dislike  

    Reality says

    in the original poster's words a "huge estate home on acreage, zoned for horses" There are probably substantial on-going landscaping and grounds keeping expenses in addition to maintaining the "huge estate home" house structure itself

    Not even sure where in LA such a house for $875k would exist. This sounds more like a Valley-or-north area, or, worse, Inland Empire. This is like bragging you bought 30 acres in Gainseville, FL. Big whoop.

  23. Philistine


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    547   11:38pm Mon 25 Mar 2013   Share   Quote   Permalink   Like   Dislike  

    robertoaribas says

    he just noted a smaller, less improved property selling for something like 1.2 million..

    I have no problem with this as a mere business transaction. My problem is with saying this property is in LA, when I know for a fact that 900k-1.3 mill barely buys you a 4/3 2500 sqft house on a 10,000 sqft lot. Unless you want to live in Crenshaw.

    The Valley and Inland Empire are not LA. You can buy spacious "estates" out there for $875k no problem. But that's like buying a house in Elizabeth, NJ and saying you bought in NYC.

  24. PockyClipsNow


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    548   10:58am Tue 26 Mar 2013   Share   Quote   Permalink   Like   Dislike  

    I'm not in the IE.

  25. PockyClipsNow


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    549   3:16pm Tue 26 Mar 2013   Share   Quote   Permalink   Like   Dislike  

    KarlRoveIsScum says

    28% tax rate and you can afford a $1M home and multiple properties?

    Sounds fishy!

    If your income is that low how the hell did you qualify?

    I put down 20%.
    Make 100k a year.
    Got an IO ARM.
    Pretty much maxed out what they would lend me. At first they denied the loan, then saw my major cash position in the bank and approved it. What would be fishy - I'm making shit up? lol

  26. BoomAndBustCycle


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    550   3:52pm Tue 26 Mar 2013   Share   Quote   Permalink   Like   Dislike  

    Philistine says

    The Valley and Inland Empire are not LA. You can buy spacious "estates" out there for $875k no problem. But that's like buying a house in Elizabeth, NJ and saying you bought in NYC.

    The Valley is definitely part of Los Angeles... It may not be Beverly Hills.. but it's not Crenshaw either. LA is made up of a bunch of rich and poor areas.. But it's still all Los Angeles.

  27. PockyClipsNow


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    551   4:56pm Tue 26 Mar 2013   Share   Quote   Permalink   Like   Dislike  

    KarlRoveIsScum says

    it's your marginal rate, i understand.

    Do you know how much you could get a loan for in the UK on $100k

    a max of $350k

    Wouldnt that vary wildly with the variable intrest rates?
    I mean with 2.8% IO loan that is a wildly different payment than the same amount financed at 7.25 30 year fixed( i had a loan like that in 2001).
    So now I should be able to finance double the loan since rates are half what they were in 2001. This is how they let us have 'affordable housing' - prices are not allowed to go down for long.

  28. Philistine


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    552   5:11pm Tue 26 Mar 2013   Share   Quote   Permalink   Like   Dislike  

    robertoaribas says

    nobody gives a rat's tail with what you consider to be LA,

    Actually, Redfin and Zillow do. So does the state government. Between zipcodes and real estate maps, nobody considers Thousand Oaks to be Los Angeles. BTW, Thousand Oaks is a good 90 minute commute to most work centers in LA, and is a paradise of '80s stucco box living and chain restaurants. Now I see why you are so fit for Phoenix.

  29. PockyClipsNow


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    553   5:19pm Tue 26 Mar 2013   Share   Quote   Permalink   Like (1)   Dislike  

    Thousand Oaks is pretty much LA....but way nicer. Half the town is actually in LA county I think.

  30. lostand confused


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    554   5:27pm Tue 26 Mar 2013   Share   Quote   Permalink   Like   Dislike  

    PockyClipsNow says

    Thousand Oaks is pretty much LA....but way nicer. Half the town is actually in LA county I think.

    I think Thouand Oaks is in Ventura County. I used to live in Westlake Village which straddles both sides of the county. I love that whole area of the Conejo valley-got a very nice feel to it and the beach is a short hop away. Lovely hiking and plenty of activities. But the commute can be a pain if you have to commute to say downtown or Burbank etc. But know a few people who do it and love it. It has a nice feel to it.

  31. BoomAndBustCycle


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    555   5:41pm Tue 26 Mar 2013   Share   Quote   Permalink   Like   Dislike  

    Philistine says

    Actually, Redfin and Zillow do. So does the state government. Between zipcodes and real estate maps, nobody considers Thousand Oaks to be Los Angeles. BTW, Thousand Oaks is a good 90 minute commute to most work centers in LA, and is a paradise of '80s stucco box living and chain restaurants. Now I see why you are so fit for Phoenix.

    Thousand Oaks is quite a commute away during rush hour.. Only 30-40 minutes on off peak times to Hollywood.. And yes, i believe it's Ventura County.. a neighbor county of LA.

    But it's a pretty UPPER middle class area from when I've visited. I'd actually love to live there if it weren't for the commute on the 101. Homes are still pricey though...

  32. Philistine


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    556   5:44pm Tue 26 Mar 2013   Share   Quote   Permalink   Like   Dislike  

    Thousand Oaks is fine if you are not a city person. I just find it ironic all the people that live in LA and hate city living. LA is a sprawling mess, and the least urban of any city I've lived in.

    My entire point is not "what is LA", which is a nonstarter. My point is a place like Thousand Oaks (to run with this example) is 20 miles away. We are talking the suburbs. Trying to compare a suburban real estate market with a major city market is apples-to-oranges.

  33. Philistine


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    557   5:46pm Tue 26 Mar 2013   Share   Quote   Permalink   Like   Dislike  

    BoomAndBustCycle says

    Only 30-40 minutes on off peak times to Hollywood

    Yes, maybe to H'wood off peak. I live in Mid-Wilshire, which is more central, and it takes 90 minutes to get to Topanga on a Saturday afternoon. It's the traffic, not the distance (26 miles).

  34. Philistine


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    558   6:41pm Tue 26 Mar 2013   Share   Quote   Permalink   Like   Dislike  

    Again, you miss the point. All real estate is local. I know you like to be insulting, but really you should be more interested in advancing the conversation.

  35. Philistine


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    559   1:17am Wed 27 Mar 2013   Share   Quote   Permalink   Like   Dislike  

    robertoaribas says

    what the hell is he supposed to do, every time anyone asks where he lives, give out precise latitude and longitude?

    Nope. I merely asked Pocky where in LA he bought (a long while back in this thread). LA is a pretty spread out area, and where you buy here makes a pretty huge difference in price/quality/amenities.

    It's still valid: Thousand Oaks is 40 miles from LA. So is Malibu. Two completely different kinds of markets. You have my permission to call them both "LA" if you like.

  36. E-man


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    560   1:40am Wed 27 Mar 2013   Share   Quote   Permalink   Like   Dislike  

    PockyClipsNow says

    Well 20% price appreciation is pretty sweet. I will let you all know what my best offer is - plan to sell in June.

    Already? You just barely moved in. Imagine after you cashed out and we get hit with hyperinflation. Isn't that going to wipe you out? :)

    Why sell now and pay capital gain? Wait until you hit the 2 year ownership mark and get $250k capital gain exclusion. $500k if you're married or your significant other is also on the title.

  37. bdrasin


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    Alameda, CA

    561   4:18am Wed 27 Mar 2013   Share   Quote   Permalink   Like   Dislike  

    PockyClipsNow says

    Price: 875k

    $ Financed: 700k

    Loan: 5/1 Interest Only ARM at 2.875 with .25 points (union bank)

    What is the fully indexed rate? Like 8.874%?

  38. PockyClipsNow


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    Los Angeles, CA

    562   11:33am Wed 27 Mar 2013   Share   Quote   Permalink   Like   Dislike  

    Yes I have contemplated waiting until the 2 year mark for taxes.

    BUT I am still going to get the remodeling done and put it on market in June to see what its worth. This will motivate me to gitter done (mostly all painting/tile I'm doing myself).

    Then if I get a 1.2m offer I will take it, anything less I would think about and probably wait a year.

    One issue is I closed escrow in late november. SO if i want to hit the 2 year mark for tax selling that means closing in december 2014 - have to basically list it in September..... 6 months after the spring rush when you normally get top dollar. This market is far from normal now though.

    So in theory probably best to wait until spring 2015 to sell if prices keep rising and in regards to minimize taxes/maximize sales price. Thats pretty far off.

  39. PockyClipsNow


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    563   11:59am Wed 27 Mar 2013   Share   Quote   Permalink   Like (1)   Dislike  

    All good points.
    Well if i dont get a fat offer then my choice is made for me.
    Also probably a good idea to list your house every spring to 'see what its worth'.

    The only reason i bought this damn thing was to make money/keep up with inflation in housing. I was actually happier in a 1 bedroom apt bubble sitting. Now my weekends are home depot and lowes...used to be at the beach and travelling or finding cool bars.

  40. errc


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    564   12:53pm Mon 5 Aug 2013   Share   Quote   Permalink   Like   Dislike  

    PockyClipsNow says

    Well 20% price appreciation is pretty sweet. I will let you all know what my best offer is - plan to sell in June.

    How'd you make out?

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