Is this a good price to consider buying?
1282 POPPY WY Cupertino, CA Cupertino California, 95014 Asking Price $1,268,000
By crazydesi Follow Tue, 14 Jun 2011, 5:08pm 3,245 views 43 comments
Watch (0) Share
Quote
Permalink Like Dislike « First « Previous Viewing Comments 4-43 of 43 Last » See most liked comments
|
crazydesi is moderator of this thread. |
Follow
Befriend (5)
27 threads
2,073 comments
That is a good calculator, Patrick. For example, if you lived in the house for 20 years, and housing prices only went up 1% a year and rent went up 2.5% a year, you would still be better of monetarily by renting.
Follow
Befriend
4 threads
2,095 comments
RealtyTrac claims that 1282 Poppy Way has date with the courthouse steps on June 24 and shows over $1.6million owed. Don't worry, they put 10% down. I mean, what could go wrong with two 'variable rate' mortgages from America's Wholesale Lender? Perhaps they got a reprieve?
Follow
Befriend (6)
5 threads
2,359 comments
Anybody who reads this site who has to ask, cannot afford it.
Even if they think they can.
Follow
Befriend (2)
44 threads
66 comments
San Jose, CA
crazydesi's website
Thanks for the replies.
Are we sure the prices in Cupertino is not going to rise or going to stay stable?
I agree that the previous buyer bought it at peak.
I'm in the 33% tax bracket, and my taxes are killing me (almost paying 80k$ on taxes). I thought if the price is going to hold, then I might save money.
I'm not sure if I buy in milpitas area where I can get newer home in 800k$ range, would it be a good buy?
I want to know the probability of prices falling/rising in milpitas compared to cupertino.
Follow
Befriend (6)
5 threads
2,359 comments
crazydesi says
If you can afford to 80K on taxes, I don't think they are killing you. It's a rich person's problem.
Follow
Befriend (2)
44 threads
66 comments
San Jose, CA
crazydesi's website
As per the calculator I use, I can save 30k$ per year on taxes, If I buy this house. So in 10 years I can save 300K$ on taxes alone. If the price is stable as long as it does not fall, I should be fine? Is it not? My lease is ending soon and my owner is giving away this home to his kids, and I hate moving from place to place every year.
Follow
Befriend (2)
44 threads
66 comments
San Jose, CA
crazydesi's website
sybrib:
I'm in worst case of paying taxes.
I dont have kids and I rent a house, and we are just two people in the house, so no extra deductions. Its only the 401k which I'm having for tax savings. I lost money in stock market, so dont trust it anymore. my bank does not pay good interest, so it is waste to put money in bank.
what do I do? Any suggestions?
Follow
Befriend (6)
5 threads
2,359 comments
crazydesi says
Be thankful you're not on the streets.
Invest a little bit in people, in your community. You can even deduct it from your taxes!
Follow
Befriend (2)
44 threads
66 comments
San Jose, CA
crazydesi's website
Im already giving away 80k$ for the society, If I give more, then defiantly I will be on streets.
Follow
Befriend (5)
27 threads
2,073 comments
crazydesi says
The mortgage interest deduction is a discount on the interest rate you pay -- it is not a net tax benefit, because you have to pay 5% interest, for example, in order to save 1.5% of the rate via taxation. You need to compare it to renting in order to determine whether you have a net monetary benefit.
In addition, the mortgage interest deduction is incorporated into the price of houses -- if the deduction did not exist, then housing prices would be higher.
The mortgage interest deduction will also decrease over time. It may be $30K in one year, but it won't be $30K 9 years later.
Follow
Befriend (6)
5 threads
2,359 comments
Crazy,
If you lose your income, betcha won't be worrying about any more 31% income taxes to pay.
But you will still have the whopper of a property tax bill due each year for that Fortress Property.
If you buy that place to live in then in a sense you are a landlord and a tenant. If you lose your income from job loss or injury or illness or business failure or lawsuit then the landlord part of you will still have the obligation and good luck evicting the tenant and finding someone to give you a good rental stream. (There's a reason the "investors" here like iwog and E-man are not investing in Fortress Properties).
Max out your tax shelters IRAs or whatever (I know it's not deductible the year you do it), even buying investment property or something like it with a decent cash flow.
Follow
Befriend (5)
10 threads
2,329 comments
crazydesi says
Buy properties in Mumbai for a quick 12 times money making. :)
Follow
Befriend (1)
104 threads
2,851 comments
Patrick says
The actual value is what it sold for on the free market, not a made-up number on a calculator.
That's how markets work.
Follow
Befriend (6)
5 threads
2,359 comments
Nomo,
that's also how markets don't work, like in many places in 2006.
Follow
Befriend (5)
27 threads
2,073 comments
Nomograph says
Ever heard of market failure? It happens sometimes. Think banksters.
Follow
Befriend (54)
5,188 threads
6,157 comments
46 male
Menlo Park, CA
Premium
Nomograph says
No, the asking price is the made-up number. The calculator just uses math to find the break-even point between owning and renting the exact same thing.
Owner loses in this case, showing the price is far greater than the actual value.
Follow
Befriend (2)
176 comments
Virginia Beach, VA
Patrick says
Follow
Befriend
4 threads
2,095 comments
The NOTS was filed on 2/9/11. RealtyTrac also showed an earlier auction date, so perhaps that bank is looking for the "highest bidder" with bank financing versus the guy with a suitcase full of cash on the courthouse steps. Will be interesting to see if this property goes the distance.
Follow
Befriend (5)
10 threads
2,329 comments
EBGuy says
Some one rich with recent IPO offerings is all set.
Follow
Befriend (5)
27 threads
2,073 comments
bubblesitter says
Better wait for the 180 day lockup period to end, first. Also, isn't P at par now?
Follow
Befriend (5)
10 threads
2,329 comments
corntrollio says
I was referring to the Palo Alto story. Can't find the link.
Follow
Befriend (5)
27 threads
2,073 comments
bubblesitter says
Some form of this article, maybe?
http://www.sfgate.com/cgi-bin/article.cgi?f=/g/a/2011/06/14/bloomberg1376-LMIF0E1A74E901-0N2R7Q2ST1TU21TT53UQ78166N.DTL&ao=all
These trend stories are stupid, because they're talking about the LinkedIn IPO, when the shareholders are still subject to lockup, and because they only mention the houses that go significantly above asking because they were underpriced to begin with.
Follow
Befriend (1)
22 threads
142 comments
crazy my friendly and Desi suggestion to you.
Don't buy in Milpitas , you should buy in a place where people from All ethinicities desire to buy ( Not just one ethinic group ).
Look in the Map for Areas which still has good schools 850-930 API and the prices are still not over the head- you'll come to a natural conclusion.
Follow
Befriend (2)
44 threads
66 comments
San Jose, CA
crazydesi's website
Seems there will be lot of bidding for this house ... I'm planning to stay away as per Patrick's suggestion.
Are Milpitas schools not good?
cloud13 says
Follow
Befriend (5)
10 threads
2,329 comments
crazydesi says
Good decision for that reason.
Follow
Befriend (54)
5,188 threads
6,157 comments
46 male
Menlo Park, CA
Premium
bubblesitter says
I agree. The main flaw in our system is that real estate is a completely secret auction, and there are huge incentives to lie. You have no ability to actually know what the other bids are, or even if they exist.
Only the seller's agent knows the truth about what other bids there might be. Not even the seller knows, because buyers are not allowed to talk directly to sellers.
You can't even sue for fraud, because you don't have the legal right to get documentation of the other bids.
One helpful technique: mail a copy of your bid directly to the seller's house, just so their agent can't block it.
Follow
Befriend (2)
44 threads
66 comments
San Jose, CA
crazydesi's website
As per the agents info it is a short sale, so not sending my bid (saving paper and printer ink)
How about these?
http://www.redfin.com/CA/Milpitas/821-Strickroth-Dr-95035/home/1506383
http://www.redfin.com/CA/Milpitas/935-N-Hillview-Dr-95035/home/1703561
http://www.redfin.com/CA/Milpitas/855-De-Anza-Ct-95035/home/727769
Are they good.
Patrick says
Follow
Befriend (31)
34 threads
2,545 comments
San Jose, CA
Premium
Hailing from Milpitas.
If I have to choose one out of those 3, I choose 821 Strickroth Dr. The other two homes are too close to I-680. Also, no freaking way the lender will approve $600k for the home at 855 De Anza.
K-6 API = 885
7-8 API = 872
9-12 API = 796
Not sure if that would meet your standards.
Follow
Befriend (5)
27 threads
2,073 comments
Patrick says
Yes, this is a problem. However, the problem is also on the buyer side, where people get too emotionally invested in a particular house and bid irrationally for it. If people were comfortable with the price they bid, they wouldn't fall for situations when the used house salesman is bluffing. There are always more houses, and it's rare that a particular property is truly unique. A Pacific Heights mansion might be unique (or perhaps just rarely on the market), but a random 50s or later tract home in Silicon Valley is almost certainly not.
Patrick says
This is a good idea when the used house salesman is being obstructive. Nothing prevents you from knocking on the seller's door. Sometimes, you'll get some BS from the used house salesman that "this bid is so low as to be insulting," and they won't take it to the seller even though it's a fair offer. Sometimes those houses will sit and sit.
I've heard stories about people offering $X for a house, and the used house salesman will reject it out of hand for being too low. Then the seller or bankster will chase the market down, and beg the prior bidder to buy it for $X several months later. Rightfully, the bidder should say (and has said), "my offer is less than $X now."
What we also need is a system where the used house salesman actually has fiduciary duties. If you're a lawyer, and you get a settlement offer, you have an ethical obligation to take the offer, no matter how crappy it is, to your client.
Follow
Befriend (1)
22 threads
142 comments
crazydesi says
Look in Cambrian , It's more cosmo, it has good schools and eveywhere around is nice. It's surrounded by Wilo Glenn, Campbelll, Los Gatos and Almaden.....So it's good from all sides
Follow
Befriend (5)
10 threads
2,329 comments
corntrollio says
Eh, now I know what caused the bubble. :)
Follow
Befriend (5)
10 threads
2,329 comments
corntrollio says
But the seller is brain washed by the RE dude, DO NOT talk the buyer directly.
Follow
Befriend
3 threads
189 comments
Cloud13 is right, Cambrian is a good value in Santa Clara county. Good schools, nice and pleasant, cheaper than Cupertino and West SJ. And more diverse if that is important. Some may prefer these schools to Fortress schools due to less pressure.
Only real drawback is longer commute to most jobs.
Follow
Befriend (54)
5,188 threads
6,157 comments
46 male
Menlo Park, CA
Premium
SiO2 says
It depends on the PRICE. Cambrian is a nice place, but if they charge you two or three times what it's worth, then you got a bad deal.
It is always possible to pay too much. Don't overpay, and your life will be much more pleasant.
Follow
Befriend (5)
27 threads
2,073 comments
bubblesitter says
I hear that. Used house salesmen would be out of business if home sellers realized that most realtors have no real expertise in anything, that all realtors really provide is standardized forms, and that buyers and sellers could save a hell of a lot of money by hiring a good real estate attorney instead of an incompetent realtor.
I've heard realtors contend that they are really good at helping people navigate the disclosures. Are they committing unauthorized practice of law? Because if they are really helping with disclosures, that could be construed as legal advice. A good lawyer would be better and cheaper than the majority of used house salesmen.
There are very few realtors that are truly able to add value.
Follow
Befriend (1)
22 threads
142 comments
SiO2 says
SiO2 ..the commute is only a problem if you want to find a job in SF but everything else is great. My wife works in Cupertino and it's just 10 miles ( No Hassle). Also I goto Palo Alto once a fortnight ( 20 miles) and again it's no Hassle.
Follow
Befriend
28 threads
1,489 comments
San Jose, CA
Premium
Patrick says
This is a very conservative calculation, because it assumes only a 1% annual reduction in price, which will be more like 7-8%.
Follow
Befriend
4 threads
51 comments
San Francisco, CA
PRIME's website
crazy - please make sure you understand the mortgage interest deduction before basing a decision on it. you can only deduct interest paid. if you pay a bank $1 in interest and you get a 30 cent tax break, you are still out 70 cents.
Follow
Befriend (6)
5 threads
2,359 comments
Yeh, but we folks in Santa Clara County can sure use that Property Tax payment that crazy will have to make each year.
So, please, through some money to local government.
Thanks !
Follow
Befriend (2)
11 threads
218 comments
San Jose, CA
crazydesi says
Are you trying to be funny? If your 33% tax bracket is $80K, then you're earning $240K... what are you doing with that $160K?
Hey I earn less than half of your salary. How is it possible that I'm still alive???
crazydesi says
Depends on your down payment, but you could be paying $90K a year in interest. That's $900K over 10 years. I suppose you think it's better to give $90K a year to the greedy banks vs $30K a year to uncle sam.