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<p>Money solves many potential issues. I don't know that it's any different elsewhere.</p>

<p>teach,</p> <p>Getting a little touchy, are we? I think $2500 is stretching as it will acount for about 36% of your gross income, but it is not terrible or unmanageable. And I completely agree with you that you should never expect mortgage to fall below rent for a comparable place. It can...

<p>garfangle,</p> <p>That is a good point, and I agree there is a disconnect between the median income & median prices. So it begs to reason, then, why would a rent-to-mortgage balance not equate to income-to-mortgage balance? I think this answer lies somewhere in income-to-housing cost...

I would imagine they are buying Hondas because it is cheaper, and is closest thing to a "luxury" brand without actually being one. Mercedes does discount, and quite a bit selectively. MBLN has an annual event where they discount by the thousands on some of their slower moving models. We...

<p>IR,</p> <p>I agree, if these assumptions are made arbitrarily in order to satisfy one's needs, then one can make undue mistake in their calculations. My numbers are based on historical data however, which from a technical standpoint is the only thing you can base on and stay objective. So...

You guys are... I think this calls for intervention!

<p>IR,</p> <p>I disagree. In any investment (and maybe it doesn't work this way for RE, but it should), you need to take into account a time horizon. That time horizon must include an expected rate of return. It's the only way you can calculate a proper NPV. Having said that, my...

<p>I don't think teacher is too far off, actually. I don't foresee rental rates declining much, if at all, and that supports a price that is not much lower than what you are seeing now (well, maybe another 15-20%). A case in point, if we assume $2600 rent for an 1800sf sfr in Irvine, that...

There really needs to be a review of the appraisal standards by the industry board. I guess the proper guideline is to use a balance of the 3 methods, but we all know this isn't the case. I wouldn't go so far as to say that Income Approach is the only valid method, as I believe market value is...

<p>Nice post Janet, that is very helpful and something I will certainly look out for when buying a house.</p> <p>Not to be nit-picky, but there is a time-value of money factor that will stretch the break-even on that deal to over 7 years in your example, based on a 5% return rate. So if you...

<p>I guess I'm falling on deaf ears, but from a company's standpoint you cannot just stop your on-going operations on a dime like that. If I understand correctly, TIC already owns this land and is "leasing or selling" to the builders? If this is the case, TIC has already made their capital...

So... TIC will rather sit on their land and generate no revenue for a number of years? That sounds far fetched. Maybe they have other revenue streams that will enable them to continue operating as a business, but what will they do with all the employees in the residential sector? Are you...

That makes it tough. If you aren't able to buy anyway, I'd keep the house. If by selling that will enable you to buy your own, I would sell... and then wait another year or so to buy. I think borrowing now, you are dealing with too much investor nervousness. My take is that qualification...

Oh wait, the fact that you want to buy... that changes things a bit. Do you really have a choice but to sell if you want to buy your own place?

I think you need to keep it: $2400 annual loss to keep, $45K loss if sold at $275K, it's a no brainer. And you would expect rent to creep up over the years, so it only makes sense to keep it. You're not so much worried about the price if you don't have to get rid of it, so ride it out. The...

<p>bk,</p> <p>Your deep knowledge is obvious with planning and marketing aspects, so I take it you work within those areas? I would have to also guess that you are pretty much involved with the day-to-day aspects within those areas, since your perspective from the broader level tend to be...

bk, Those are great information based on the perspective of TIC’s marketing and operations departments, but neglect to take into account the decisions that must be made by the executives beyond these numbers. Fact of the matter is, TIC is a company that sells land. They can’t just “sit” on...

<p>"Is a 30 year fixed 700+fico (first row - Platinum) 7.9% on a 80% LTV?"</p> <p>I think that is for 5/25 ARM. But that's even worse, I would think a 30-yr fixed would be slightly higher under the same conditions.</p>

Conceptually, the system was supposed to use a balance of the three methods to properly appraise homes. Obviously, as the market demanded higher pricing, one method began to be favored over the others, and appraisers simply ignored whatever was unfavorable to the demands. The current rules...

<p>reason,</p> <p>The primary reason the builders are still building is because that is their business. If they stopped building and selling, they are no longer a viable, ongoing concern. If you had a restaurant and no one was coming, you would have two choices: keep it open and wait for...