patrick.net

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

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.

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.

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.

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

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.

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...

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.

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).

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.

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.

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.

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%?

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.

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.

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?