patrick.net

lisyb, I live in El Sob, I absolutely love it. I have lived in SF, Berkeley, Orinda. El Sob #1

I am nearly 40, married, 2 dogs, one horse. We bought from a family member for about 2001 price in 2004. Serious fixers in our neighborhood are selling for about 20% less than we owe, but our house was a serious fixer when we bought it, and now is like new (new roof, gutters, landscaping, windows, ceilings, floors, kitchen, bathroom, all new energy star appliances, central heating, all good quality). Our mortgage payment is about what we would pay for rent (although for not nearly as nice a house as far as condition and updating). We are locked in to a 30 year fixed at 5.3%. Our payment is less than 20% of our gross earnings.

We have no debt outside the mortgage, have 6 months+ savings and at least some retirement savings. I was laid off in 2008 but found work quickly since I was an early lay off when there were still jobs, I now have a much more stable job in IT with a public university system. My husband is a mechanic and a steady job with regular job offers at other shops.

We still cannot realize our dream of a farm or ranch up in the foothills as a weekend/vacation/retirement property as everything up there is still pretty inflated, so we continue to work, save, enjoy life in the Bay Area, and be patient.

Status: Owner
Purchased: 2003
Downpayment: about 15%
Upside Down? not in Palo Alto
Home equity - about $600,000
Income is mortgage? 10% of gross income
Current Age? 38
Married? no

I didn't mention my age (late 40's), and that I have animals large & small. Or, they have me.

Renter. We had no need to own a house until 2004 or so, at which point it would have been insane to buy. In terms of lifestyle, I would like to own, set down roots and feel settled, but I am really very glad that we did not buy in 2004 or thereafter. I don't really have a good feeling about California or the Bay Area long-term, and we are looking elsewhere to buy.

Mid 30s, single, renting a small apt, half a mil net worth and no debt... lived with roommates for 10 years and had some crazy parties but now living with GF. I've been financially "ready" to buy a house for years, but never felt the need to put myself into that situation. Never thought the housing (and stock market) boom was sustainable and cashed out of all stock market investments in late 2006/early 2007.

Still think housing prices have a ways to fall, I don't feel the immediate need to buy anything since material objects really don't make me happy. I may or may never buy a house in the Bay Area... but I love the area.

Good thread, nice to see the other side of the people who usually put only housing related opinions.

About me, I am early 30s with 2 kids, married, single income HH, dont own a home, was looking seriously last year, but figured I would wait, as the area I am looking is still at 2004/2005 price range at least the list prices, dont want to get in bidding war.

Early 40's, single, and currently renting. Had a house from the from around 2000 and sold it in 2006 when things were getting bad and friends called me crazy that I should rent it out. I bought under my means so I had an emergency fund. Upon selling, made 32% gain (before Realtor commission (5% (3%/2%)) and other fees/taxes to close). Saw the market and thought it might be bad so I held out since then and glad I did. Told my CPA in 2006 and 2007 I didn't want to buy and the CPA thought I was a dreamer that a fall was coming, and told me I need to buy for the tax write offs. But now I'm glad I didn't listen to that person and followed my gut. Sometimes I get lucky! It's not often though if you look at my stocks and other investments. I just hope I make a smart decision next time as well as I'm getting close to investing in some of the lower priced areas if I can get an 8% cap rate or more. The place I want to live is still too high in price so contemplating if I want to invest in the interim.

39, married and bought in SF in 2001, sold in August 2008 just before the s**t hit the fan (not becuase of any great financial acumen but more just because we wanted more space, were sick of our neighbors and were unsure if we'd be staying in SF). We were lucky to make a decent profit on our house which has been sitting in a savings account ever since earning a paltry 1% but since I'm bearish on the economy in general I'm fine with that.

We've been renting since and it's been a nice break from owning. I'm not a homeowner basher, but it's just nice to not have to worry about repairs, property taxes, etc. for a while. We also have a 3 year old who will be going to school soon and due to CA's sorry state it will probably be private school. I have a problem paying $10k in property taxes and then get assigned to a bottom of the barrel public school and have to pay for private school anyway.

I bought in 04,07,08 used profits to put towards downpayment.

I like owning and would never go back to renting anywhere in the bay area.
If I moved to an area I didn't know I might rent.
Not sure if I'm underwater.

I've lived in an historic victorian built in 1913 in Oakland since June of 2002. My rent has only gone up $100 per month since I've lived there and that's because I chose to move across the hall to live in a 1 bedroom apartment (much better apartment) than the studio I was living in when I moved in. That was 4+ish years ago and my rent has been the same since. The owner of the building appreciates tenants who stay long term and who pay rent on time by not raising rents even though he could raise my rent according to the dictates of the Rent Adjustment Board.

I came here to go to grad school. I got into major debt with both student and credit card loans even though I worked full time while going to grad school full time. Expenses here in the Bay Area are insane as we all know. I dug myself out of credit card debt on my meagre salary as an intern by negotiating with my credit card companies, cancelling all cards. I live without credit cards now and no credit card debt. I pay everything with cash (I use my debit card).

My income doesn't allow for any extravagance, really. Yet I'm proud to say that I'll be making the last payment on a 60 month car loan in the beginning of April. That will free up some money so I can start building a cash reserve and start paying my student loans which are all federal. I wisely avoided any "private" student loans and I have very reasonable payback conditions.

I'm closing in on being licensed in my profession which will free me to earn more income within the next year. It's been a long, hard, struggle.

I like to rent. I hate doing any maintenance or arranging for maintenance. Having a land lord who fixes anything (almost) within 24 hours makes me very happy. My neighborhood is safe, friendly, and clean. I have a drug store, grocery store, bakery, restaurants, hair stylists, movie theater, coffee shop, sushi place, 2 banks, chiropractor, doctor, dentist, lawyer, driving school, auto parts place, car repair shops, and more all within a 4 block radius. If I'm home and I need just about anything I can walk to it if I wanted. I have a large, beautiful, estuary called a "lake" only two blocks from my apartment that is this country's first wildlife sanctuary. The entire park is being renovated with completion set for 2013 or so. There are endless varieties of birds that come through our neighborhood since our estuary is a major stop on migratory paths. I hella love Oakland. People are friendlier than in Berkeley or San Francisco. And most people are quite tolerant of differences and share whatever "The Town" has to offer. I love it that people on the peninsula, Marin, Lamorinda, Walnut Crack, Unpleasanton, Berkeley, etc. believe that Oakland is so scary and dangerous. It keeps the snobs out. We Oaklanders mostly live in peace. And we know which neighborhoods to avoid. And we love our "Town."

My utility costs are minimal since I'm single and I work a lot.

I won't buy anything here until it makes financial sense. Right now, it doesn't make sense to own and I can't afford to do it anyway right now.

My job is stable for now. I work with homeless 18-25 year olds in Berkeley. Believe it or not, 97% of the people with whom I work come from Berkeley, Oakland, Richmond, El Cerrito, or other Bay Area locations. The young adults of the Bay Area today cannot make enough to afford to live where they grew up anymore. Our program tries to help them get through school, find work, save money, and get started in life so they can be responsible tax-paying citizens. We have a 70-80% success rate. We are Federally funded with very little coming in from the State through MediCal and a bit coming from the City of Berkeley. We also have other grants that we have won through hard work and a proven track record.

I love what I do. I love who I've become. Money does not buy happiness. I know. I used to be a corporate whore who was trapped by "golden handcuffs." I make much less than I used to make, but making a difference gives me so much more satisfaction than making someone else rich doing work that doesn't matter in the grand scheme of things. I'd say that at 40 years old, I do OK. *smile/wink*

Located in the Antelope Valley. Have been perusing the market since December of 2002. Saw the market values increase through the following year and though that things were overheated. Have been claiming that the market was overpriced here in the desert since January 2003. There is still plenty of room for prices to drop here due to the stabilizing effect of the many military families who cannot simply walk away from their toxic mortgage. Once they have a way to move on from their underwater mortgages, the prices will continue to drop here another 20-30%, maybe more.

I'm 35, still renting and have seen my rent go from $455/month in 2001 to $800/month in 2009. We are putting away cash in order to buy, but still haven't found the location plus price point that we are looking for. It's there, we are just a couple of months ahead of the game at the moment.

Your initial question is how are people doing in the recession. It appears that posters here are still employed. That makes all the difference.

I am employed, but crossing fingers it will stay that way. I know far too many people who have lost jobs or have reduced income. Hubby and I went through that several years ago, our own 3+ year personal recession. We know what it's like. That's why we live below our income now. But then, we're in the conservative midwest, so it seems normal to us.

This is our third SFH. Borrowed no more than we could afford, did not live on HELOCs, refi'd 3x to reduce rate or term. We will be mortgage free next year.

BTW, during that tough financial time, we had the option of refinancing our home to a longer term for probably half the payment. I'm glad we didn't have to do that. I did not want to extend the term when we are so close to payoff. But we did have the choice. Renters cannot choose to cut their rent in half when their income is cut.

Been checking this site out for years :-( as I realized long ago that the prices were out of whack - only now starting to see the cracks appear in my area - Mountain View/Los Altos.

Renting for 7 years now - same house, rent increase only once in all that time. Rollercoaster ride with my husbands work - 8 year old start-up - still waiting for them to go public. Once they do, then we might finally be able to afford a home around here - if we still want to stick around then. In the meantime, I have been watching the creep of foreclosures from across the other side of San Jose move closer to where we want to buy.

Unfortunately, the government's interventions has lengthened the amount of time it will all take to crumble - I am really fed up of waiting. And then, you have to wonder whether by the time you can afford to buy a house where you want - will you still have the job to be able to do so?

I go by Mnt. View every day I've been watching this house go into foreclosure

and finally put back on the market. It looks like a dumpy ugly house on a busy street
so I was hoping I could maybe snag it for a good price

it just went on the market for nearly a million $.

http://www.redfin.com/CA/Mountain-View/1533-Miramonte-Ave-94040/home/646516

toothfairy says

I go by Mnt. View every day I’ve been watching this house go into foreclosure
and finally put back on the market. It looks like a dumpy ugly house on a busy street

so I was hoping I could maybe snag it for a good price
it just went on the market for nearly a million $.
http://www.redfin.com/CA/Mountain-View/1533-Miramonte-Ave-94040/home/646516

That is insane. How about $249,900? That sounds more like it.

That house is near where I live, it was bought for +/-$675,000 and refinaced to over a $1,000,000 and eventually given back to the bank. The brand new 3beds on that same road are selling for the same price they want for this house now - hmmm, I wonder how long it will languish on the market - unfortunately there are a lot of people that still want in in this area though.

Another thing about that house - I noticed that it's listed as a sold comp for that area for the amount the bank is on the hook for - so it sets a comp that is way over what it should be worth for that location - how about that as a complaint?

30's. have lived a variety of places along the East Coast over the past 10 years. Still renting. looking for the elsive concept of "value". Have been close to buying a couple of times, but never quite was able to get the deal done. Job situation has bee stable, thanks be to God.

Long Beach, California
Renter
Married
Dink household
33
Been wanting to buy since 2005, couldn't afford to buy in 2005. We put out 4 offers for houses and were beat by all-cash investors every time -- really disappointed every time too and shocked at what some people were offering. Then, the housing crash.
Now have good-sized down payment, excellent credit, 2 stable jobs, waiting for government housing incentives to stop, and for housing prices to stabilize for a couple of years. I have a husband who wants to buy immediately, but I am holding him back until the market is stable. I want to see 2 years of stable prices before I'll believe that the crash is over. I suspect we will buy between 2012 and 2015. We are having a baby this year, and its been hard for my husband because he wanted to own a house when we have kids, but owning is not a necessity to live. Its a want not a need and we try to do what makes good financial sense for us. The majority of

The majority of

Sorry, Having my text cut off.
The majority of

JJ says

Sorry, Having my text cut off.
The majority of

...not your day, huh?

Claire,

I'm not following you. . Are you saying that the 1M+ refinance "value" is being claimed as a valid comp?

The house was sold to the bank at auction for the outstanding loan balance (that's what happens when they foreclose right?) and that is listed as a sale and shows up on Redfin under a title "nearby similar sales" when looking at houses in that area. Here is what's listed for the property.

Date Event Price Appreciation Source
Mar 03, 2010 Listed $964,900 -- MLSListings #81010104
Nov 09, 2009 Sold (Public Records) $1,050,358 8.6%/yr Public Records
Jun 30, 2004 Sold (Public Records) $675,000 2.2%/yr Public Records
Jan 05, 2001 Sold (Public Records) $625,000 -- Public Records

It never occurred to me before that that then sets the comps higher - now having said that - yes, some can argue that houses in this area are selling for that kind of money anyway - but that house, in that condition shouldn't have.

Maybe an appraiser would look deeper and not use it as a comp - but for us laymen looking on redfin - we would look at that and think it was a comp. If anyone has more insight - let me know.

just pull a title report and it will show the whole story. I get them for free, but I would pay for them if I had too.

i lost my house in a divorce three years ago. since then i have been waiting waiting waiting for a some housing correction in marin. not happening, i have lost faith that there will be any significant reductions here. it's looking like if i ever want to buy again i will need to move completely out of the area away from friends, family, my business etc. makes me sad, i've called sausalito home for the past 14 years. i would love to buy again. i have had two very difficult landloards in the past three years. honestly, i hate renting an apartment due to the lack of privacy, personal space and defered maintenence of rentals in general. yes, it is nice to know i need not worry about values dropping but i'd rather be renting a home from a bank on a 15 year fixed. at least at i will own a a place to live at the end of my term

I'm 29, single, living with family (no rent), and employed. I've been in the market for a home since late 2008. I've made several offers all with 40%++ downpayment. The properties keep getting snagged by all cash offers even when I overbid. It appears the only way I will be able to get in on a decent home is if I overbid even more to a ridiculous 2006/2007 price. This will not happen. I'm waiting for the right time to purchase still. The area I am focusing on currently has a 5.1% rent:price ratio. I know it's a little steep but I expect positive cash flow if I rent it out due to the large downpayment.

Claire says

Maybe an appraiser would look deeper and not use it as a comp - but for us laymen looking on redfin - we would look at that and think it was a comp. If anyone has more insight - let me know.

I've noticed that too and I generally am able to spot those out because they are the ones with no pictures of the home.

Hello from the Twin Cities (Minneapolis-St. Paul area), where the housing market is still inflated (except North MPLS, where they are still bulldozing houses every day) and Joe Mauer seems to be our most valuable natural resource (except our thousands of lakes and the Boundary Waters Canoe Area, of course).

Age: 33
Status: Renter, $1250 for a 3 bedroom/1 bath upper duplex with utilities paid that overlooks the
Mississippi River and downtown St. Paul
Houshold Income: 2 (partner, unmarried), no kids, 5 birds and a dog on the way
Credit: Excellent (FICO in the 750 range)
Net worth (myself): about 10k at the moment but debt will soon be paid off.

We almost purchased our first home for $169,900 with FHA and 3.5% down just days ago but backed out of the purchase agreement after the inspection, which found an attic full of loose (not contained in walls or floor boards) vermiculite insulation, which is assumed to contain asbestos.

We could have easily afforded the home, however, the insulation wasn't worth the hastle and risk to us (both as people living in the home and sellers down the line). Also, we couldn't safely enter the attic make repairs in (2 were recommended by the inspector) unless purchased respirators and such. To abate it and blow in new insulation, it would have cost 10-15k. And no, the buyer wouldn't pay for the abatement (vermiculite insulation is not in any way regulated like, for example, lead paint). And, since the timing of all this was the worst possible in terms of when our lease was up (with no option to go month-to-month or add a buy-or-build), we decided to stick to renting until my partner has a couple years of grad school under the belt and we figure out if we'd like to move to a different city.

So, instead of having a mortgage payment that is only $25 less than current rent and having to pay utilities and everything else that needs to be done/added to a house, we are continuing to rent and save cash. We still have the 7K we saved up for a down payment to build on and are going to use a portion of it to pay off any remaning debt and build upon for future investments.

Any comments/opinions/suggestions/observations are appreciated!

WIN TWINS!

Living at home and saving and looking for a house but hesitant. I can't decide where the market will go over the next 1 or 2 years..

richnewton says

Living at home and saving and looking for a house but hesitant. I can’t decide where the market will go over the next 1 or 2 years..

I think sideways inland empire, Sacto. down on the coast

Has anyone kept a tally on renters vs debt slaves (such as myself)? The one thing I've noticed is that no one has been overly excited about buying just for the sake of buying, everyone here seems pretty pragmatic about the whole buying experience.

that's pretty cool.

If I knew what pragmatic meant, I'd comment. Just kiddin. No, really.

Married. Bought in 2000. My current mortgage payment(including a refi of 70k for student loans and including taxes/insurance) for a 2800 sq ft home(4 bed 3 bath) is now equal to a 3 bed 2 bath apartment 2 blocks away from me. I loved renting when I was younger in the late 90's. 3 years on the beach in Long Beach and 1 year in Hollywood. The same 2 bed 2 bath in LB is now going for $500-1000(depending what floor you're on) more than what my current mortgage is. The Hollywood apartment is now $500 more than what I'm paying in mortgage.

My status: I live under a bridge in a cardboard box. I am President Obama's half brother. Please tell him I need help. Thank you.

RayAmerica says

My status: I live under a bridge in a cardboard box. I am President Obama’s half brother. Please tell him I need help. Thank you.

Sorry, your not too big to fail...

RayAmerica says

My status: I live under a bridge in a cardboard box. I am President Obama’s half brother. Please tell him I need help. Thank you.

I wasn't aware that Hawaii had internet access & electricity under its bridges. We'll have to cut back on your government benefits.

elliemae says

I wasn’t aware that Hawaii had internet access & electricity under its bridges.

You meant Kenya didn't you?

Los Angeles.

Bought in '91 sold in 2000 (worst mistake I ever made) Decided to get 'educated' not to make the same mistake again. Waited out the entire housing boom (since 2000). Bought beachfront property in Bahamas, 3 houses in London (turning profit). While waiting. Still renting from 2000, starting to put some offers. I'm in on 3 short sales at ridiculous prices. So I expect to buy in the next 2 years. Or not I don't care. Unless I use cash I probably will never own a US home outright. Not sure I want to go into retirement with a mortgage. So I'm on the 'fence'. I need something I can pay off in 5 years.

So we'll see.

RayAmerica says

elliemae says

I wasn’t aware that Hawaii had internet access & electricity under its bridges.

You meant Kenya didn’t you?

Kenya clarify that remark? There's proof of birth from the state of Hawaii and a birth announcement from the newspaper when he was born. Wait - let me put on my tinfoil hat and point it in the right direction before you answer.

elliemae says

Kenya clarify that remark? There’s proof of birth from the state of Hawaii and a birth announcement from the newspaper when he was born. Wait - let me put on my tinfoil hat and point it in the right direction before you answer.

Who is questioning where Obama was born .... not me. Try reading the comment and you'll find I was referring to his half brother, duh.