Less than 20% fall in home prices will destroy the banking system?

[traderdragon2]

"I have a buddy out in San Diego and he pays $3500 rent on a house that is appraised at 350k"

At current rates, 350K fixed loan = $2042/month


Your buddy is getting seriously ass raped.

That home would rent for $1000 in san diego, probably less, since it would be a rat shack in the ghetto

 

[volente_00]

Quote from ByLoSellHi:

True, unless you put 20% down and eliminate need for PMI (I know; it's rare these days).

Also, taxes can run much higher.

I pay $9,800 per year in property taxes.

Or you could just have a special appraiser, who jacks your appraisal up 20% when you buy it so that you don't have to pay pmi.


I was using 2% for taxes and 1 for insurance another .5 or so for pmi. That 9800 is based on what property value ?

 

[traderdragon2]

I checked zillow in his area code, zoomed straight in and there are plenty of 600K places. His place is around 1200 square feet.

http://www.zillow.com/search/Search.htm?addrstrthood=&citystatezip=92104

Quote from volente_00:

Define little place, because this is what shows up for rent


http://sdhomessearch.signonsandiego.com/Rentals/SearchResults.asp



Those are not 600k houses.

My friend tells me housing is running ~ 200 a sq ft around sd. How many square feet is your friends house ?

 

[volente_00]

Quote from traderdragon2:

"I have a buddy out in San Diego and he pays $3500 rent on a house that is appraised at 350k"

At current rates, 350K fixed loan = $2042/month


Your buddy is getting seriously ass raped.

That home would rent for $1000 in san diego, probably less, since it would be a rat shack in the ghetto

You are so full of crap, you can barely rent a 2 bedroom apartment out there in the ghetto for 1000, townhomes are running 1500-2000 and houses in the dump start in the high teens.

 

[2ez]

Quote from volente_00:

That is strange that they wait 13 years to reappraise. Here in Texas it is done every year. Seems like the state is screwing themselves by waiting that long.

so if prices pull back......will your taxes decrease ?

 

[volente_00]

Quote from traderdragon2:

I checked zillow in his area code, zoomed straight in and there are plenty of 600K places. His place is around 1200 square feet.

http://www.zillow.com/search/Search.htm?addrstrthood=&citystatezip=92104

So you are telling me 500 a sq ft is norm over there ?

 

[volente_00]

Quote from 2ez:

so if prices pull back......will your taxes decrease ?

We don't get the bubbles like the west and east do. Hell you can build a nice house loaded out for $80 sq ft here and that is using a GC.

 

[2ez]

Quote from volente_00:

We don't get the bubbles like the west and east do. Hell you can build a nice house loaded out for $80 sq ft here and that is using a GC.

The so-called bubble in the west and east will have residual effects where you are too.

 

[traderdragon2]

You just proved you dont know a damn thing about the san diego market. You can get a luxury apartment in carmel valley where the best schools in san diego are, in the high teens.

http://sandiego.craigslist.org/apa/302788919.html

You should stick to talking about areas you know about. I live here.

Quote from volente_00:

You are so full of crap, you can barely rent a 2 bedroom apartment out there in the ghetto for 1000, townhomes are running 1500-2000 and houses in the dump start in the high teens.

 

[volente_00]

That is crazy, what is so special about that neighborhood ? Those houses look like dumps for 300-400k.