A new escrow thread for a new housing market...

[25w100k+_IHB]

The question is, were you guys building equity or were both loans IO? I'd think that would make a difference on getting out now vs. holding. Also if a reset was coming...

 

[CapitalismWorks_IHB]

Are you regretting selling your house?

Yup. If my company wasn't going under and my employment coming to an end, probably not nearly as much so. If we were still in the condo, we'd be able to eek out monthly break-even with my UI income. In the rental, even with UI, it'll mean dipping into savings by $1K per month. I hate spending reserves.

Don't worry, in due time your decision to sell will look like a great call. Prices for my old condos are down to the high $500k.

I don't think prices have fallen that much in QH either. 90 Canopy just closed with a 221 CS. 8 Tall Oak was a 227. When the cost of upgrades is factored in to the basis on your old condo, your sale was a 228 CS value. If you'd have paid for labor on those upgrades vs. doing in yourself, your CS number would have probably have been around 220 meaning the two most recent sales would have actually been higher relative to yours.

I bet you'd be able to sell your old place today for $600K.

Bear in mind that all recent closings are reflective of all time low interest rates, and the related upward pressure on prices. Combined with artificially low invetory levels, and the stage was set for the temporary stabalization of prices.

As for Tman's sale, considering their are two similar places on market for now at $550K and $585K, I cannot imagine closing for much more.

 

[ipoplaya_IHB]

The question is, were you guys building equity or were both loans IO? I'd think that would make a difference on getting out now vs. holding. Also if a reset was coming...

I was on a recently refinanced regular 5-year ARM @ 5%.

 

[ipoplaya_IHB]

As for Tman's sale, considering their are two similar places on market for now at $550K and $585K, I cannot imagine closing for much more.

Those properties are both shorts. Their list prices are not necessarily indicative of market value. Both could very well have offers at $600K for all we know... It is not uncommon for shorts to have an artificially low list to troll for offers to take to the bank.

 

[usctrojanman29_IHB]

As for Tman's sale, considering their are two similar places on market for now at $550K and $585K, I cannot imagine closing for much more.

Those properties are both shorts. Their list prices are not necessarily indicative of market value. Both could very well have offers at $600K for all we know... It is not uncommon for shorts to have an artificially low list to troll for offers to take to the bank.

That may be true, but the reality is that I wouldn't have gotten $620k today. I'm glad I sold because I decreased my monthly housing expense from around $3,400 to around $1,400.

 

[25w100k+_IHB]

As for Tman's sale, considering their are two similar places on market for now at $550K and $585K, I cannot imagine closing for much more.

Those properties are both shorts. Their list prices are not necessarily indicative of market value. Both could very well have offers at $600K for all we know... It is not uncommon for shorts to have an artificially low list to troll for offers to take to the bank.

That may be true, but the reality is that I wouldn't have gotten $620k today. I'm glad I sold because I decreased my monthly housing expense from around $3,400 to around $1,400.

Damn thats a big difference. And if you were on an IO payment, even the tax write-off probably wasn't helping enough. Could you have gotten a roommate though to bring down the costs? Thats my idea for now.

 

[ipoplaya_IHB]

As for Tman's sale, considering their are two similar places on market for now at $550K and $585K, I cannot imagine closing for much more.

Those properties are both shorts. Their list prices are not necessarily indicative of market value. Both could very well have offers at $600K for all we know... It is not uncommon for shorts to have an artificially low list to troll for offers to take to the bank.

That may be true, but the reality is that I wouldn't have gotten $620k today. I'm glad I sold because I decreased my monthly housing expense from around $3,400 to around $1,400.

That's amazing you could save that much. Are you comparing net, i.e. after-tax, spend amounts? For a net spend on housing of $3400 per month, that would mean probably a gross of over $5K per month as an owner. That seems very high for a 1900sf condo...

 

[CapitalismWorks_IHB]

As for Tman's sale, considering their are two similar places on market for now at $550K and $585K, I cannot imagine closing for much more.

Those properties are both shorts. Their list prices are not necessarily indicative of market value. Both could very well have offers at $600K for all we know... It is not uncommon for shorts to have an artificially low list to troll for offers to take to the bank.

Or they could have no offers, and be languishing until foreclosure.

 

[irvine_home_owner_IHB]

I don't see many people talk about the tax-writeoff savings all that much and maybe because many posters here are renters but when I did my taxes, it seems that writeoff is very significant, especially in the first years of the mortgage.

Maybe my taxes were done wrong but writing off $4000+ of interest each month was a huge tax savings when we filed.

 

[ipoplaya_IHB]

I don't see many people talk about the tax-writeoff savings all that much and maybe because many posters here are renters but when I did my taxes, it seems that writeoff is very significant, especially in the first years of the mortgage.

Maybe my taxes were done wrong but writing off $4000+ of interest each month was a huge tax savings when we filed.

A $.37 deduction on each dollar spent on MI and PT is indeed very significant and makes a HUGE difference when doing calculations. Our gross spend on mortgage interest and property taxes was a smidge over $2K pre-tax but less than $1,300 after-tax.

 

[usctrojanman29_IHB]

As for Tman's sale, considering their are two similar places on market for now at $550K and $585K, I cannot imagine closing for much more.

Those properties are both shorts. Their list prices are not necessarily indicative of market value. Both could very well have offers at $600K for all we know... It is not uncommon for shorts to have an artificially low list to troll for offers to take to the bank.

That may be true, but the reality is that I wouldn't have gotten $620k today. I'm glad I sold because I decreased my monthly housing expense from around $3,400 to around $1,400.

Damn thats a big difference. And if you were on an IO payment, even the tax write-off probably wasn't helping enough. Could you have gotten a roommate though to bring down the costs? Thats my idea for now.

That was before tax, after tax I was looking at $2,500 and I did have a roommate that paid $800 a month so net, net I was in at $1,700 per month. Also, I had a 5 year regular ARM that was going to be adjusting in Jan. 2010.

 

[rickhunter_IHB]

When did you buy and then sell? Like others here, you were betting the market for your house would be 20% - 30% off by now? In a few years?

Looking at IPO's comps, do you think your lost the bet? Whatever the reasons...the prices are at where they are at.

That was before tax, after tax I was looking at $2,500 and I did have a roommate that paid $800 a month so net, net I was in at $1,700 per month. Also, I had a 5 year regular ARM that was going to be adjusting in Jan. 2010.

 

[ipoplaya_IHB]

That was before tax, after tax I was looking at $2,500 and I did have a roommate that paid $800 a month so net, net I was in at $1,700 per month. Also, I had a 5 year regular ARM that was going to be adjusting in Jan. 2010.

So instead of saving the $2K per month that we all freaked about, it is actually $300 per month in savings? Still fabulous, just not exponentially so...

 

[usctrojanman29_IHB]

When did you buy and then sell? Like others here, you were betting the market for your house would be 20% - 30% off by now? In a few years?

Looking at IPO's comps, do you think your lost the bet? Whatever the reasons...the prices are at where they are at.

That was before tax, after tax I was looking at $2,500 and I did have a roommate that paid $800 a month so net, net I was in at $1,700 per month. Also, I had a 5 year regular ARM that was going to be adjusting in Jan. 2010.

I got into contract on my condo back in Jan. 2004 and closed in Dec. 2004 for $557k. I put about $30k in upgrades into it and sold it in early Oct. 2008 for $620k. I would have sold my condo at the peak (2006) for about $730k-$750k. I'd be willing to make a big bet that I wouldn't be able to sell the same condo today for more than $600k.

 

[usctrojanman29_IHB]

That was before tax, after tax I was looking at $2,500 and I did have a roommate that paid $800 a month so net, net I was in at $1,700 per month. Also, I had a 5 year regular ARM that was going to be adjusting in Jan. 2010.

So instead of saving the $2K per month that we all freaked about, it is actually $300 per month in savings? Still fabulous, just not exponentially so...

But then again, my income is down so my tax benefit on the margin would also be slightly down. It's still much easier to make a $1,400 housing payment versus $3,400. My housing expense will be going down another $150/month when my lease expires and I'll be moving to another IAC complex, plus I save about $100+/month on utilities. If I can find a nice 1,500 sf or so single story home with a decent yard for around $300k in a nice area AND I have a full-time job, I'll be a buyer.

 

[rickhunter_IHB]

You are ahead with the purchase and sale, not by much but...

For the buyer of your home that essentially bought "at the peak", how much do you think they have lost? According to IPO comps, they are even?

When did you buy and then sell? Like others here, you were betting the market for your house would be 20% - 30% off by now? In a few years?

Looking at IPO's comps, do you think your lost the bet? Whatever the reasons...the prices are at where they are at.

That was before tax, after tax I was looking at $2,500 and I did have a roommate that paid $800 a month so net, net I was in at $1,700 per month. Also, I had a 5 year regular ARM that was going to be adjusting in Jan. 2010.

I got into contract on my condo back in Jan. 2004 and closed in Dec. 2004 for $557k. I put about $30k in upgrades into it and sold it in early Oct. 2008 for $620k. I would have sold my condo at the peak (2006) for about $730k-$750k. I'd be willing to make a big bet that I wouldn't be able to sell the same condo today for more than $600k.

 

[usctrojanman29_IHB]

You are ahead with the purchase and sale, not by much but...

For the buyer of your home that essentially bought "at the peak", how much do you think they have lost? According to IPO comps, they are even?

When did you buy and then sell? Like others here, you were betting the market for your house would be 20% - 30% off by now? In a few years?

Looking at IPO's comps, do you think your lost the bet? Whatever the reasons...the prices are at where they are at.

That was before tax, after tax I was looking at $2,500 and I did have a roommate that paid $800 a month so net, net I was in at $1,700 per month. Also, I had a 5 year regular ARM that was going to be adjusting in Jan. 2010.

I got into contract on my condo back in Jan. 2004 and closed in Dec. 2004 for $557k. I put about $30k in upgrades into it and sold it in early Oct. 2008 for $620k. I would have sold my condo at the peak (2006) for about $730k-$750k. I'd be willing to make a big bet that I wouldn't be able to sell the same condo today for more than $600k.

No way they are even, I say they are down anywhere from $20k to $40k and she bought when conforming rates were at 5.75%.

 

[irvine123_IHB]

assuming your buyer put down 20%, her net expenses on the houses after tax effect is similar to renting a 2/2 at IAC - around $2300 / month.

The house value might be down 20K to 40K, that 3 to 6% of the value in two years? If she considers this is her home, not an investment, and she can afford the payments, then I will say she made the right choice for HER family. There is no right or wrong, it is matter of life style and preference.

 

[Geotpf_IHB]

assuming your buyer put down 20%, her net expenses on the houses after tax effect is similar to renting a 2/2 at IAC - around $2300 / month.

The house value might be down 20K to 40K, that 3 to 6% of the value in two years? If she considers this is her home, not an investment, and she can afford the payments, then I will say she made the right choice for HER family. There is no right or wrong, it is matter of life style and preference.

Plus, they would have had to rent during that time. That is, if values are dropping slower than the monthly cost to rent the same place, there's not really a loss, assuming an owner occupied unit.

That's why waiting to buy doesn't always make sense, even if you think prices will continue to drop somewhat. You still gotta live somewhere while waiting.

 

[25inIrvine_IHB]

assuming your buyer put down 20%, her net expenses on the houses after tax effect is similar to renting a 2/2 at IAC - around $2300 / month.

The house value might be down 20K to 40K, that 3 to 6% of the value in two years? If she considers this is her home, not an investment, and she can afford the payments, then I will say she made the right choice for HER family. There is no right or wrong, it is matter of life style and preference.

Isn't that 20% also quite a big difference? Rental you put down your deposit...like a months rent? The other one you put down over 100k of cash in order to get a comparable monthly expense?