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We may see a +3% 10 year sooner than later. Then again a few more -200 stock days should postpone higher rates as investors in stocks get wobbly. People will begin to weigh in the balance if it's wise to buy more FANG stock or a big bundle of 3% government debt.

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+3% would be crazy if homes continue to appreciate like Delano. Remember that we still have the growing 1.48T national student loan debt. Only a few years ago, we were at $800B. A 3% rate increase plus these student loans will all but wipe out any average Z-gens any chances of buying a (Irvine) home.

Soylent refer to the 10 T-bill rate at which is approaching 3 percent or 2.96 % to be exact on April 20, 2018. The 10 yrs T-Bill is a correlation to mortgage rate increase. This will hit and push rate to 5 % for jumbo loan by summer.

Oh my bad. In that case, I think it will be a minor impact.
2
We may see a +3% 10 year sooner than later. Then again a few more -200 stock days should postpone higher rates as investors in stocks get wobbly. People will begin to weigh in the balance if it's wise to buy more FANG stock or a big bundle of 3% government debt.

(Facebook Apple Netflix Google)

+3% would be crazy if homes continue to appreciate like Delano. Remember that we still have the growing 1.48T national student loan debt. Only a few years ago, we were at $800B. A 3% rate increase plus these student loans will all but wipe out any average Z-gens any chances of buying a (Irvine) home.

Soylent refer to the 10 T-bill rate at which is approaching 3 percent or 2.96 % to be exact on April 20, 2018. The 10 yrs T-Bill is a correlation to mortgage rate increase. This will hit and push rate to 5 % for jumbo loan by summer.
3
Multiple story duplexes are actually very common in West LA . But again , those are dense neighborhoods , much more so than great park , so not apples to apples comparison . But there is proof it works under the right circumstances .

That’s not apples to apples comparison. We can’t talk about multi-million dollar Manhattan apartments or apartments in Trump towers...
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Multiple story duplexes are actually very common in West LA . But again , those are dense neighborhoods , much more so than great park , so not apples to apples comparison . But there is proof it works under the right circumstances .
5
We may see a +3% 10 year sooner than later. Then again a few more -200 stock days should postpone higher rates as investors in stocks get wobbly. People will begin to weigh in the balance if it's wise to buy more FANG stock or a big bundle of 3% government debt.

(Facebook Apple Netflix Google)

+3% would be crazy if homes continue to appreciate like Delano. Remember that we still have the growing 1.48T national student loan debt. Only a few years ago, we were at $800B. A 3% rate increase plus these student loans will all but wipe out any average Z-gens any chances of buying a (Irvine) home.



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My personal needs dictate when I buy. If rates are much higher, I will still buy but I’ll have to buy a cheaper home than if rates were <4%.
7
We may see a +3% 10 year sooner than later. Then again a few more -200 stock days should postpone higher rates as investors in stocks get wobbly. People will begin to weigh in the balance if it's wise to buy more FANG stock or a big bundle of 3% government debt.

(Facebook Apple Netflix Google)
8
Any potential problem areas would be Balboa Island and Huntington/Seal Beaches. Meh... those area have flooded for years.

You're going to burn in a wildfire or experience an inland flood before we ever get to sea level issues
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Staying on the topic, 5 % rate I think will make people continue to buy, because the one that looking to buy now or in the near future, they buy with personal reasons. Perhaps they’ve been renting and decided that it’s time to have a place of their own. And rate will continue to march upward and it will cost even more. That’s why 3 and 4 story makes sense to them because you get more squares footage, vertical living and have a smaller mortgage.

3 and 4 story makes sense? Must be joking right. it only makes sense when the millennial is priced out and there’s nothing left to buy. Not to mention the loss of square footage to stairs and terrible corridor designs. Even USCTrojan knows, these homes diminishes your buyer pool greatly compared to 1 and 2 story homes of the same sqfootage. IIRC our TI member dream16 had a hard time with his tri-floor PS condo.

As soon as the millennials can get enough of an equity, job promotion, etc.. they should get out of their 3/4 story convalescent homes while they can. There are already evidence of this happening in GP homes that I posted in the other thread..

Now I do agree, there will always be desperate millennials who need to buy something, anything and yes these 3/4 story convalescent homes are their only shot. But they don’t make any sense in the medium/long run to raise a family, or even have grandma live with you.
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For me personally, higher interest rate is less of a deterring factor than higher home prices.

I rather buy a home at 10% interest rate but with a 50% lower home prices than other way around.

Yes of course that is the best scenario. But what if you have a continuing higher rate and continually higher price?
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