- On 23 May 2013
in
1366 Rainbow Dr., San Mateo, CA 94402,
wave9x said:
I was actually a little low.
- On 23 May 2013
in
1366 Rainbow Dr., San Mateo, CA 94402,
wave9x said:
The house sold for $1.18m, for anyone interested.
- On 3 May 2013
in
1366 Rainbow Dr., San Mateo, CA 94402,
wave9x said:
Looks like this house is already sold after just a few days.
- On 2 May 2013
in
Hey Indians, why so rapey?,
wave9x said:
That is because most crime, especially rape, in 3rd world countries is not reported or prosecuted
- On 1 May 2013
in
1366 Rainbow Dr., San Mateo, CA 94402,
wave9x said:
You are assuming that people only buy things based on the cost of construction, which is an incorrect assumption. It can literally take 2 years to build a house in this area, if it will even be approved by the city or county at all. Avoiding the effort, waiting, and hassles is worth a lot to most people, not to mention avoiding paying two mortgages (or rent plus mortgage) during the process. I also disagree that new construction is automatically better, many new building techniques are centered around cost savings rather than quality. And you won't get features like wood burning fireplaces that are outlawed here in new houses.
- On 1 May 2013
in
1366 Rainbow Dr., San Mateo, CA 94402,
wave9x said:
The point is, it is simply not possible to build a house for $50k in this area, never mind the time and effort you need to dedicate to such a project. Thus having a structure on the land that you can live in is worth more than $50k. In other words, the lot plus this house would sell for much more than the lot itself, I would think twice as much.
Anyway, this house is in great shape - new electrical, new copper plumbing, new roof, new water heater, and no noticeable structural issues. They actually updated important things and maintained the house. It isn't a lipstick on a pig flip.
- On 1 May 2013
in
1366 Rainbow Dr., San Mateo, CA 94402,
wave9x said:
Rebuild cost is much higher than $50k-75k, not sure if you were being facetious or not. It's at least $300/sqft for a mid grade house in this area due to all of the regulations and permits required. So it isn't just the land, it is also that building a house here costs a fortune.
- On 26 Apr 2013
in
Is it better to buy or rent?,
wave9x said:
4% cost of buying is way too high - that would be $40k in closing costs on a $1m place.
- On 26 Apr 2013
in
Is it better to buy or rent?,
wave9x said:
Of course you can't predict the future, but that doesn't mean you should take a random course of action and hope for the best. You can make educated, conservative guesses as to what inflation and other factors will be based on historical data. I think saying 2% inflation with house values and rents matching that is pretty conservative and is biased towards renting if anything. House values and rents have gone up much more than inflation in my area over the past 10 years.
- On 26 Apr 2013
in
Is it better to buy or rent?,
wave9x said:
Even if his rent never went up, i.e. 0% rent increase, he will STILL be ahead buying in 4 years. Sorry that angers you, donjumpsuit, I'm just doing the math.
- On 26 Apr 2013
in
Is it better to buy or rent?,
wave9x said:
In comparison to the above scenario, my property taxes are lower, house appreciation higher, rent increases higher, income tax higher, and ROI lower. All of these parameters favor buying even more.
- On 26 Apr 2013
in
Is it better to buy or rent?,
wave9x said:
Barely more than inflation is not more than the cost of renting. How about this then, being very conservative:
30% income tax
7% ROI
3.5% interest
20% down
1.35% property tax
House prices and rents rise with inflation (2%)
5k/yr house maintenance and renovation
1k/yr homeowners
Cost of buying 1%
Cost of selling 6%You're ahead buying in 4 years. You will need an ROI of 11% to make renting a better deal. Good luck with that.
- On 25 Apr 2013
in
Is it better to buy or rent?,
wave9x said:
If you set rent increase to 2%/year, i.e. same as inflation, you will be ahead buying in 3 years. If you set your rent increase to 0%/year, you will STILL be ahead buying in 3 years. And what are the chances your rent will be fixed for 30 years? My old $2200/mo rental from 10 years ago is now renting for $3900, an average increase of 8%/yr.
Put it this way - you are borrowing for barely more than the rate of inflation. Also, you are able to deduct the interest from your taxes, so you are pretty much getting the loan for free. Maintenance, property tax, and the opportunity cost of not putting your down payment in stocks or something are the main costs. Those don't outweigh the cost of renting.
- On 25 Apr 2013
in
Is it better to buy or rent?,
wave9x said:
FunTime, you said your annual rent was 4.65% of the price. Say the price is $1m. Your rent is then $3,875/mo. With this scenario, you will be financially ahead buying in 3 years and beyond. This assumes: 3.5% interest rate, 3% rent increase/yr, 2% house appreciation/yr, 2% inflation, 40% overall income tax, 20% down, 1.35% property tax, $5k/yr insurance and maintenance.
- On 22 Apr 2013
in
Iphone 5 or samsung galazy s3,
wave9x said:
I'd take the iPhone 5. Best hardware and software IMO. Best support. Best apps. Best resale. I like the iPhone form factor better also, the S3 is way too big. If you like to fiddle and tweak, iOS can be "rooted" (aka jailbroken) just like Android. If you don't, iOS is very maintenance free. Also iPhones get OS updates for years so are much more future proof than Android phones.
- On 21 Apr 2013
in
No relief as Nor. California prices continue to accelerate,
wave9x said:
Contra Costa is not going to become a haven for the elite. It is going to become an Asian ghetto. Parts already have. There will be meat stores with puppy and kitten carcasses hanging in the window.
One thing I noticed about Asian-dominated neighborhoods is that they don't have many trees. Asians like to cut down 100 year old oaks and elms and put in a rock garden. Makes the neighborhood look like shit. They also cram 20 family members into their house, no matter how small the house.
- On 31 Mar 2013
in
Feel like I missed the boat in the bay area,
wave9x said:
I moved to Seattle from SF. After 2 years I moved back. Don't underestimate how depressing the cloudy weather gets.
- On 21 Mar 2013
in
Hong Kong Homes Face 20% Price Drop as Banks Raise Rates,
wave9x said:
"Prices could fall as much as 20 percent over the next two years"... Could? Seriously? This is news?
- On 20 Mar 2013
in
The 2012 Inventory Collapse,
wave9x said:
David Losh, please stop giving poor advice based on nothing more than the theories you pull out of your ass. The inexperienced may not understand enough to dismiss your ridiculous statements and you are doing them a disservice.
- On 12 Mar 2013
in
Why Redfin, Zillow, and Trulia Haven't Killed Off Real Estate Brokers, Yet,
wave9x said:
Wayyyy too much incentive for dishonesty in RE with agents. $6k for a $300k house sale is huge bucks. Heck if the agent is the listing and selling agent they may pull down 6% or $12k for the same sale. People will put narcotics in their nether-regions and try and smuggle it across the border for that kinda dough. I bet a hitman is cheaper, lol.
Check your math... It's actually worse.
- On 23 Jan 2013
in
Growing numbers of Valley residents want walkable neighborhoods,
wave9x said:
The whole "walkable neighborhood" thing seems like a fad. Once you've been to the local bars and restaurants so many times and put up with your annoying neighbors above, below, and to either side of you for so long, you will be desperate for a house on a nice sized lot with space and privacy, which you aren't going to find in a "walkable neighborhood".
- On 4 Jan 2013
in
2013 setting up to be highest real estate inflation ever,
wave9x said:
Those making over $400k/yr are not going to have an effect on the $750k house market much, and they won't be hurting from a minor tax increase. As for interest rates, they will go up if there is inflation. If there is inflation then house prices are going up.
What really matters is the difference between the interest rate and the inflation rate, not the absolute interest rate. If interest equals inflation, whether a low or high rate, then it is better to borrow money and buy a house, because there is no real cost to borrowing and you can deduct the interest.
- On 3 Jan 2013
in
Is the threat of shadow inventory truly manageable?,
wave9x said:
I have worked with banks - they are incredibly incompetent. Think "Three Stooges". For them to pull off a concerted yet secret plan to sequester away property in order to control the market is pretty close to laughable.
- On 22 Dec 2012
in
2 years since we bought,
wave9x said:
I have just one question for you all:
Is it cheaper to rent or to own the house you bought over the median holding period of 6 years? Remember that half of all buyers own for even less than 6 years.
The average tenure for owner-occupiers in California is 13.44 years, and over 11 years in Texas and Florida, according to this study - http://dss.ucsd.edu/~miwhite/wasi-white-final.pdf. Where is the 6 year figure coming from? The median and average couldn't be that different.
- On 30 Nov 2012
in
Mortgage interest deduction benefits realtors and rich, not middle class,
wave9x said:
I say both dividends and capital gains should be considered income. Many on this forum say you should put your money into stocks rather than a house, but the stock market is also propped up with sweet tax incentives and is 10x more corrupt and manipulated.