Author Topic: Declining Rents  (Read 4537 times)

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Offline USCTrojanCPA

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Re: Declining Rents
« Reply #30 on: September 02, 2022, 08:20:34 PM »
Yeah, a whopping 0.13% decrease after 12.3% increase. Scary!!! Really bad news!!! Housing price will fall by 0.13%. Run for the hills.

A -1.6% annualized decline with inflation running at 10%.  Landlords are getting squeezed by higher costs and lower rents, and this is just the first of what will be many months of bad news. 

Your new neighbors were smart to rent because their costs are fixed, if not declining, while yours are steadily increasing.

Ask LL, he rents in Irvine.

Yep, rent free though.  ;)

The declining in a 20 % YOY increase, WTF is LL smokin'?

The posters here are literally losing their minds.

I hope they didn't rent in the past 6-9 months because rents are up over 25% in Irvine in the past year and if they rented a home earlier those tenants can expect a rent hike upon lease expiration.  I bought 2 rentals in 2021 with a client and our fixed rate is 2.99% so how are our costs going up?
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Offline TestingIrvine

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Re: Declining Rents
« Reply #31 on: September 02, 2022, 08:32:26 PM »
Yeah, a whopping 0.13% decrease after 12.3% increase. Scary!!! Really bad news!!! Housing price will fall by 0.13%. Run for the hills.

A -1.6% annualized decline with inflation running at 10%.  Landlords are getting squeezed by higher costs and lower rents, and this is just the first of what will be many months of bad news. 

Your new neighbors were smart to rent because their costs are fixed, if not declining, while yours are steadily increasing.

Ask LL, he rents in Irvine.

Yep, rent free though.  ;)

The declining in a 20 % YOY increase, WTF is LL smokin'?

The posters here are literally losing their minds.

Looks who’s speaking. I feel really sad for you, my friend.

LL is so dumb it's not even funny.

When you are dead, you do not know you are dead. It's only painful & difficult for others. The same applies when you are stupid…or named Liar Loan.

It’s just a joke.

Just send us real info / data, or be reasonable in your arguments instead of doubling/tripling down on your argument man.

Offline CalBears96

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Re: Declining Rents
« Reply #32 on: September 02, 2022, 09:27:41 PM »
Yeah, a whopping 0.13% decrease after 12.3% increase. Scary!!! Really bad news!!! Housing price will fall by 0.13%. Run for the hills.

A -1.6% annualized decline with inflation running at 10%.  Landlords are getting squeezed by higher costs and lower rents, and this is just the first of what will be many months of bad news. 

Your new neighbors were smart to rent because their costs are fixed, if not declining, while yours are steadily increasing.

Ask LL, he rents in Irvine.

Yep, rent free though.  ;)

The declining in a 20 % YOY increase, WTF is LL smokin'?

The posters here are literally losing their minds.

I hope they didn't rent in the past 6-9 months because rents are up over 25% in Irvine in the past year and if they rented a home earlier those tenants can expect a rent hike upon lease expiration.  I bought 2 rentals in 2021 with a client and our fixed rate is 2.99% so how are our costs going up?

Basically, LL is just throwing shit on the wall and hopes it sticks. He just doesn't understand anything. My friend's lease just expired and her rent hike was like 30%. She moved to another apartment, but the rent hike was also more than 20%. She just moved a couple of weeks ago, so this is not a few months ago.

Offline sleepy5136

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Re: Declining Rents
« Reply #33 on: September 09, 2022, 04:59:35 PM »
The low interest rates during 2020-2021 really screwed over first time home buyers that did not get in during that time. We now have a situation where people with those low rates are not going to move and hog up those homes. So much so that even if those people were to up-size, they might just rent it out and cash flow. That will only create less inventory and push prices up longer term.

Offline CalBears96

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Re: Declining Rents
« Reply #34 on: September 09, 2022, 07:21:57 PM »
The low interest rates during 2020-2021 really screwed over first time home buyers that did not get in during that time. We now have a situation where people with those low rates are not going to move and hog up those homes. So much so that even if those people were to up-size, they might just rent it out and cash flow. That will only create less inventory and push prices up longer term.

My wife has taken a liking to Cielo 3. We'll give ourselves 1.5-2 years to earn enough for 40%-50% down payment from the proceeds selling our Eastvale and Lake Elsinore homes to see if we can buy one. That really depends on how the housing market fares. Now I'm hoping for a 20% drop.  ;D If we can somehow afford to buy it, and by the time we move in the housing market has recovered, we'll sell the Bluffs home. Otherwise, we'll rent it out for 3 years and then sell.

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Offline sleepy5136

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Re: Declining Rents
« Reply #35 on: September 09, 2022, 07:48:17 PM »
The low interest rates during 2020-2021 really screwed over first time home buyers that did not get in during that time. We now have a situation where people with those low rates are not going to move and hog up those homes. So much so that even if those people were to up-size, they might just rent it out and cash flow. That will only create less inventory and push prices up longer term.

My wife has taken a liking to Cielo 3. We'll give ourselves 1.5-2 years to earn enough for 40%-50% down payment from the proceeds selling our Eastvale and Lake Elsinore homes to see if we can buy one. That really depends on how the housing market fares. Now I'm hoping for a 20% drop.  ;D If we can somehow afford to buy it, and by the time we move in the housing market has recovered, we'll sell the Bluffs home. Otherwise, we'll rent it out for 3 years and then sell.
Hopefully you wait at least 2 years to collect the 500k tax exemption

Offline USCTrojanCPA

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Re: Declining Rents
« Reply #36 on: September 09, 2022, 08:06:45 PM »
The low interest rates during 2020-2021 really screwed over first time home buyers that did not get in during that time. We now have a situation where people with those low rates are not going to move and hog up those homes. So much so that even if those people were to up-size, they might just rent it out and cash flow. That will only create less inventory and push prices up longer term.

My wife has taken a liking to Cielo 3. We'll give ourselves 1.5-2 years to earn enough for 40%-50% down payment from the proceeds selling our Eastvale and Lake Elsinore homes to see if we can buy one. That really depends on how the housing market fares. Now I'm hoping for a 20% drop.  ;D If we can somehow afford to buy it, and by the time we move in the housing market has recovered, we'll sell the Bluffs home. Otherwise, we'll rent it out for 3 years and then sell.

Smart move, tax free gains for the win!
Martin Mania, CPA
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714-747-3884 cell

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Offline CalBears96

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Re: Declining Rents
« Reply #37 on: September 09, 2022, 08:28:16 PM »
The low interest rates during 2020-2021 really screwed over first time home buyers that did not get in during that time. We now have a situation where people with those low rates are not going to move and hog up those homes. So much so that even if those people were to up-size, they might just rent it out and cash flow. That will only create less inventory and push prices up longer term.

My wife has taken a liking to Cielo 3. We'll give ourselves 1.5-2 years to earn enough for 40%-50% down payment from the proceeds selling our Eastvale and Lake Elsinore homes to see if we can buy one. That really depends on how the housing market fares. Now I'm hoping for a 20% drop.  ;D If we can somehow afford to buy it, and by the time we move in the housing market has recovered, we'll sell the Bluffs home. Otherwise, we'll rent it out for 3 years and then sell.
Hopefully you wait at least 2 years to collect the 500k tax exemption

That's why we're giving ourselves 1.5-2 years before buying. With the 6 months or so construction time, we'll pass the 2 years period.

We love our current home, but it has its flaws. At least, it lets us to be in Irvine, so it's going to be a lot easier to upsize. If things don't work out with Cielo 3, we still have this one. If it works out, then great.

Offline Ready2Downsize

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Re: Declining Rents
« Reply #38 on: September 10, 2022, 07:35:40 AM »
The low interest rates during 2020-2021 really screwed over first time home buyers that did not get in during that time. We now have a situation where people with those low rates are not going to move and hog up those homes. So much so that even if those people were to up-size, they might just rent it out and cash flow. That will only create less inventory and push prices up longer term.

My wife has taken a liking to Cielo 3. We'll give ourselves 1.5-2 years to earn enough for 40%-50% down payment from the proceeds selling our Eastvale and Lake Elsinore homes to see if we can buy one. That really depends on how the housing market fares. Now I'm hoping for a 20% drop.  ;D If we can somehow afford to buy it, and by the time we move in the housing market has recovered, we'll sell the Bluffs home. Otherwise, we'll rent it out for 3 years and then sell.

I was at the pool a couple days ago and got to talking with some other people there. First thing that comes up is always where are you from (Cali, Oregon and WA state in this group). Next thing is weather, then do we like it here. Everyone says LOVE it (not the heat but everything else). Lastly is house prices (thank God we sold. Doesn't matter how far things fall because we all bought lower and got cash in the bank so no matter what we're ahead). THEN someone says I'm praying houses crash. I want to buy another house here with x or y features and everyone of us it turns out is hoping for the same thing. I said I'm going to let my daughter live in this one and rent their house out and the rest said they would rent out what they have. We all have enough cash in the bank from our sales to buy another house.

Bottom line, I think there are alot of people actually hoping houses tank in addition to investors who already were buying and anyone who missed out. We've seen too many downturns in stocks and housing to be scared out of buying in a downturn.

I'm keeping my eyes on the builders here. They all knew things were slowing and all at once changed course from releasing only 3 or 4 houses and building a spec home or two every month to suddenly releasing a dozen. That's why there are so many on the mls but they actually aren't built yet. That comes at year end or early next year. Been around the block enough to know when they sit awhile actually built, that is the time to negotiate all those upgrades they stuck in there out. Just waiting. I know this area is coming back after the glut they created is worked thru. People are still moving here and companies are still building new facilities which won't be open till 2024.

Too many renting out could cause rents to plummet but a downturn in prices will take care of that and jobs are going to increase here to sop up those units.

Offline Danimal

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Re: Declining Rents
« Reply #39 on: September 10, 2022, 08:44:39 AM »
The low interest rates during 2020-2021 really screwed over first time home buyers that did not get in during that time. We now have a situation where people with those low rates are not going to move and hog up those homes. So much so that even if those people were to up-size, they might just rent it out and cash flow. That will only create less inventory and push prices up longer term.

My wife has taken a liking to Cielo 3. We'll give ourselves 1.5-2 years to earn enough for 40%-50% down payment from the proceeds selling our Eastvale and Lake Elsinore homes to see if we can buy one. That really depends on how the housing market fares. Now I'm hoping for a 20% drop.  ;D If we can somehow afford to buy it, and by the time we move in the housing market has recovered, we'll sell the Bluffs home. Otherwise, we'll rent it out for 3 years and then sell.
Hopefully you wait at least 2 years to collect the 500k tax exemption

That's why we're giving ourselves 1.5-2 years before buying. With the 6 months or so construction time, we'll pass the 2 years period.

We love our current home, but it has its flaws. At least, it lets us to be in Irvine, so it's going to be a lot easier to upsize. If things don't work out with Cielo 3, we still have this one. If it works out, then great.

Already thinking about buying new place? That was fast. You have barely lived in Bluff 2 for less than 3 months.  What flaws do you see?

Cielo 3 is nice but current price is outrageous.

Offline CalBears96

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Re: Declining Rents
« Reply #40 on: September 10, 2022, 01:52:00 PM »
The low interest rates during 2020-2021 really screwed over first time home buyers that did not get in during that time. We now have a situation where people with those low rates are not going to move and hog up those homes. So much so that even if those people were to up-size, they might just rent it out and cash flow. That will only create less inventory and push prices up longer term.

My wife has taken a liking to Cielo 3. We'll give ourselves 1.5-2 years to earn enough for 40%-50% down payment from the proceeds selling our Eastvale and Lake Elsinore homes to see if we can buy one. That really depends on how the housing market fares. Now I'm hoping for a 20% drop.  ;D If we can somehow afford to buy it, and by the time we move in the housing market has recovered, we'll sell the Bluffs home. Otherwise, we'll rent it out for 3 years and then sell.
Hopefully you wait at least 2 years to collect the 500k tax exemption

That's why we're giving ourselves 1.5-2 years before buying. With the 6 months or so construction time, we'll pass the 2 years period.

We love our current home, but it has its flaws. At least, it lets us to be in Irvine, so it's going to be a lot easier to upsize. If things don't work out with Cielo 3, we still have this one. If it works out, then great.

Already thinking about buying new place? That was fast. You have barely lived in Bluff 2 for less than 3 months.  What flaws do you see?

Cielo 3 is nice but current price is outrageous.

Yeah, the price is outrageous right now, but so is the market.  If it drops 10%, then it's reasonable. If it drops 20%, then great. I think $2.1M to $2.4M range is pretty good.

It's not that we want to buy a new place. It's just that my wife had been watching too many Youtube videos from real estate agents on Cielo and she really likes Cielo 3.  ;D

As much as we love Bluffs 2, the one thing that I start disliking even more is the lack of driveway. Two of my neighbors haven't moved in yet and most of the street parking is full. It's especially bad on garbage day. And my wife really loves the volume ceiling (vs. vaulted ceiling). And Cielo's master closet and bathroom is huge compared to ours.

I guess I would say that the flaw is lack of driveway and the others are more desirable features. But then again, once our landscaping is done, we could park both cars in the garage, so the flaw isn't really bad that. It's more accurate to say that Cielo 3 has a lot of additional features that we could check off our dream house boxes.

Offline The California Court Company

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Re: Declining Rents
« Reply #41 on: September 10, 2022, 02:52:53 PM »
once you go 3CWG + driveway + single loaded street it is hard to go back...also nice to play indoor badminton with the kids in the great room when it is raining outside...

The low interest rates during 2020-2021 really screwed over first time home buyers that did not get in during that time. We now have a situation where people with those low rates are not going to move and hog up those homes. So much so that even if those people were to up-size, they might just rent it out and cash flow. That will only create less inventory and push prices up longer term.

My wife has taken a liking to Cielo 3. We'll give ourselves 1.5-2 years to earn enough for 40%-50% down payment from the proceeds selling our Eastvale and Lake Elsinore homes to see if we can buy one. That really depends on how the housing market fares. Now I'm hoping for a 20% drop.  ;D If we can somehow afford to buy it, and by the time we move in the housing market has recovered, we'll sell the Bluffs home. Otherwise, we'll rent it out for 3 years and then sell.
Hopefully you wait at least 2 years to collect the 500k tax exemption

That's why we're giving ourselves 1.5-2 years before buying. With the 6 months or so construction time, we'll pass the 2 years period.

We love our current home, but it has its flaws. At least, it lets us to be in Irvine, so it's going to be a lot easier to upsize. If things don't work out with Cielo 3, we still have this one. If it works out, then great.

Already thinking about buying new place? That was fast. You have barely lived in Bluff 2 for less than 3 months.  What flaws do you see?

Cielo 3 is nice but current price is outrageous.

Yeah, the price is outrageous right now, but so is the market.  If it drops 10%, then it's reasonable. If it drops 20%, then great. I think $2.1M to $2.4M range is pretty good.

It's not that we want to buy a new place. It's just that my wife had been watching too many Youtube videos from real estate agents on Cielo and she really likes Cielo 3.  ;D

As much as we love Bluffs 2, the one thing that I start disliking even more is the lack of driveway. Two of my neighbors haven't moved in yet and most of the street parking is full. It's especially bad on garbage day. And my wife really loves the volume ceiling (vs. vaulted ceiling). And Cielo's master closet and bathroom is huge compared to ours.

I guess I would say that the flaw is lack of driveway and the others are more desirable features. But then again, once our landscaping is done, we could park both cars in the garage, so the flaw isn't really bad that. It's more accurate to say that Cielo 3 has a lot of additional features that we could check off our dream house boxes.
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Offline CalBears96

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Re: Declining Rents
« Reply #42 on: September 10, 2022, 04:47:27 PM »
once you go 3CWG + driveway + single loaded street it is hard to go back...also nice to play indoor badminton with the kids in the great room when it is raining outside...

3CWG is great to have, but not a necessity. Driveway, on the other hand, is something I feel I must have. Sometimes.

Offline Danimal

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Re: Declining Rents
« Reply #43 on: September 10, 2022, 04:54:13 PM »
The low interest rates during 2020-2021 really screwed over first time home buyers that did not get in during that time. We now have a situation where people with those low rates are not going to move and hog up those homes. So much so that even if those people were to up-size, they might just rent it out and cash flow. That will only create less inventory and push prices up longer term.

My wife has taken a liking to Cielo 3. We'll give ourselves 1.5-2 years to earn enough for 40%-50% down payment from the proceeds selling our Eastvale and Lake Elsinore homes to see if we can buy one. That really depends on how the housing market fares. Now I'm hoping for a 20% drop.  ;D If we can somehow afford to buy it, and by the time we move in the housing market has recovered, we'll sell the Bluffs home. Otherwise, we'll rent it out for 3 years and then sell.
Hopefully you wait at least 2 years to collect the 500k tax exemption

That's why we're giving ourselves 1.5-2 years before buying. With the 6 months or so construction time, we'll pass the 2 years period.

We love our current home, but it has its flaws. At least, it lets us to be in Irvine, so it's going to be a lot easier to upsize. If things don't work out with Cielo 3, we still have this one. If it works out, then great.

Already thinking about buying new place? That was fast. You have barely lived in Bluff 2 for less than 3 months.  What flaws do you see?

Cielo 3 is nice but current price is outrageous.

Yeah, the price is outrageous right now, but so is the market.  If it drops 10%, then it's reasonable. If it drops 20%, then great. I think $2.1M to $2.4M range is pretty good.

It's not that we want to buy a new place. It's just that my wife had been watching too many Youtube videos from real estate agents on Cielo and she really likes Cielo 3.  ;D

As much as we love Bluffs 2, the one thing that I start disliking even more is the lack of driveway. Two of my neighbors haven't moved in yet and most of the street parking is full. It's especially bad on garbage day. And my wife really loves the volume ceiling (vs. vaulted ceiling). And Cielo's master closet and bathroom is huge compared to ours.

I guess I would say that the flaw is lack of driveway and the others are more desirable features. But then again, once our landscaping is done, we could park both cars in the garage, so the flaw isn't really bad that. It's more accurate to say that Cielo 3 has a lot of additional features that we could check off our dream house boxes.

Driveway is so useful in so many ways.  We learned a hard lesson with our old home not having one and sharinf courtyard. 
I actually dont mind smaller bathroom and closet in master bedroom. In fact, i wish IP have option for removing bathtub. We have not used it once since the move. 1/2 of the closet sits empty and the one  in the downstair suite is collecting dust.🤓

Offline CalBears96

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Re: Declining Rents
« Reply #44 on: September 10, 2022, 06:13:34 PM »
Driveway is so useful in so many ways.  We learned a hard lesson with our old home not having one and sharinf courtyard. 
I actually dont mind smaller bathroom and closet in master bedroom. In fact, i wish IP have option for removing bathtub. We have not used it once since the move. 1/2 of the closet sits empty and the one  in the downstair suite is collecting dust.🤓

Yeah, driveway is nice. It's something that I really want now.

My wife likes the big space in the Cielo 3 master closet. And trust me, my wife uses up all closet space. She'd find a way to do it.  ;D I 100% agree with you about having the option to remove the bathtub in master bath. We never used it.

So we went to look at the models again. I think now Cielo 1 has become the front runner. For some reason, only Cielo has the stacked kitchen cabinets upgrade option. Cielo 2 and 3 and all Azul plans don't have this option. The thing my wife doesn't like about Cielo 3 is the shower in master bath. It has glass on 2 sides and the shower head sprays water toward one of the glass pieces. It's a lot of glass cleaning for her.

I would say our current preference is Cielo 1 > Cielo 3 > Azul 3 > Cielo 2. Cielo 3 and 2 seem to be the more popular ones, so that would give us a good chance at Cielo when the time is right.

 

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