ALL CASH OFFERS IN IRVINE

how much do you want to bet that the people making under $10k, appear to "write-off" more than they actually do... the bottom quarter probably makes puts more money in the pocket than the top quarter... again, I have reasons to believe, along with BK that FCB are great, ligament or otherwise at evading the IRS...



I know a lot of Asians, in Irvine, and I can safely tell you that none make under $10k at year... ok,, I'll take that back.. the only one exception are those families similar to momo's example, where parents and in-laws subsidize every living expenses... the 2nd gen kids basically stay at home all day, play, raise a family, eat, go to disneyland, the beach, do mission work/ministry... I?ve talked to some of those husbands, it must be nice to not even worry about what their next career move is, haven?t updated a resume in years, have a endless charge card, a large house, plenty of food and all the time and freedom in the world?



Bla? again? my tone is not of envy! I know they have their struggles too?
 
[quote author="roundcorners" date=1248564649]how much do you want to bet that the people making under $10k, appear to "write-off" more than they actually do... the bottom quarter probably makes puts more money in the pocket than the top quarter... again, I have reasons to believe, along with BK that FCB are great, ligament or otherwise at evading the IRS...



I know a lot of Asians, in Irvine, and I can safely tell you that none make under $10k at year... ok,, I'll take that back.. the only one exception are those families similar to momo's example, where parents and in-laws subsidize every living expenses... the 2nd gen kids basically stay at home all day, play, raise a family, eat, go to disneyland, the beach, do mission work/ministry... I?ve talked to some of those husbands, it must be nice to not even worry about what their next career move is, haven?t updated a resume in years, have a endless charge card, a large house, plenty of food and all the time and freedom in the world?



Bla? again? my tone is not of envy! I know they have their struggles too?</blockquote>


Why would foreign cash buyers have to evade the IRS?
 
[quote author="Daedalus" date=1248526328]13% of Asian families make over $200k/year; I would guess at least 10% of households across the board make that much. With a good credit score and conventional financing limits, $200k/year will support roughly an $800k mortgage.</blockquote>


You don't have to guess, the data are all there. Here's some of it in a combined table:

<pre class="code">



# ALL White Asian ALL White Asian

Total: 43048 26117 14457

Less than $10,000 1204 535 615 2.80% 2.05% 4.25%

$10,000 to $14,999 541 339 164 1.26% 1.30% 1.13%

$15,000 to $24,999 1369 867 446 3.18% 3.32% 3.09%

$25,000 to $34,999 1548 996 404 3.60% 3.81% 2.79%

$35,000 to $49,999 3155 1746 1098 7.33% 6.69% 7.59%

$50,000 to $74,999 5253 3406 1422 12.20% 13.04% 9.84%

$75,000 to $99,999 5989 3003 2590 13.91% 11.50% 17.92%

$100,000 to $149,999 10815 6805 3557 25.12% 26.06% 24.60%

$150,000 to $199,999 6147 3618 2251 14.28% 13.85% 15.57%

$200,000 or more 7027 4802 1910 16.32% 18.39% 13.21%

</pre>
 
The notion that all-cash buyers are supporting prices up seems absurd to me.

The advantage of the all-cash buyer is that he can pay less, not more, than the person with financing.

Even on this site I have read many reports of sellers accepting an offer that was not the highest one, just because it was cash and a sure thing.

My personal experience from buying cars is that it's much easier to drive the price down when you are paying with cash.

It seems to me that all-cash offers are a good thing.
 
[quote author="hedgehog" date=1248599042]The notion that all-cash buyers are supporting prices up seems absurd to me.

The advantage of the all-cash buyer is that he can pay less, not more, than the person with financing.

Even on this site I have read many reports of sellers accepting an offer that was not the highest one, just because it was cash and a sure thing.

My personal experience from buying cars is that it's much easier to drive the price down when you are paying with cash.

It seems to me that all-cash offers are a good thing.</blockquote>


Without the cash buyers, a lot of houses will likely take much longer to sell and prices will need to drop in order to find someone that can obtain financing. Buying a house is different from buying a car. Many people can afford to pay $30000 cash for a car. Not many can pay half a million cash for a home.
 
And... if anyone would actually take the time to go look at the data over at <a href="http://irvinerealtorsite.com/">IrvineRealtorSite</a>, then you would see that the percentage of cash buyers is the same in May as it was in February. I will work on smoothing out the historical average, since no one else here actually wants to look at the current factual data (not talking about IR2, just to be clear), to see that the percentage of cash buyers hasn't changed much, if at all. Just because there are more cash buyers, doesn't mean there are more for what is happening in sales. 1 cash buyer for 10 sales is the same as 10 cash buyers for 100 sales.



Anyone who thinks there are more cash buyers than normal are either new to shopping for RE, or never paid attention. There are not more cash buyers out there... this is all in your head and the facts prove this. Stop listening to the RealTurd propaganda, and start thinking for yourself. Otherwise you are just part of the herd that will be lead off the cliff. Mark my words... it is 1993 all over again.
 
[quote author="awgee" date=1248569740]

Why would foreign cash buyers have to evade the IRS?</blockquote>
Maybe they started taxing people outside the US jurisdiction?



"Mr. Lee/Prakash/Kazemi... I need you to fly back to the United States... we need to audit your foreign income."
 
I find it amusing when people think that cash buyers would be foolish and would overpay. You gotta give some credit to the people with the cash, they must have done something right (yeah, there are exceptions). The cash buyers can always get a better deal than the rest. They are also usually the most rational players as they do not feel any pressure to buy for fear of being priced out, or for fear of rising mortgage rates. (Obviously a cash buyer would love it if rates went up.)
 
[quote author="hedgehog" date=1248661591]I find it amusing when people think that cash buyers would be foolish and would overpay.</blockquote>


One word: Jealousy. People will make stuff up and resort to personal attacks to make themselves feel better. BTW, cash buyers love bear markets and the lower the price goes the better.
 
[quote author="asianinvasian" date=1248674690][quote author="hedgehog" date=1248661591]I find it amusing when people think that cash buyers would be foolish and would overpay.</blockquote>
BTW, cash buyers love bear markets and the lower the price goes the better.</blockquote>
You finally got something right. And prices will continue to go lower. And cash buyers will buy at the bottom and soon thereafter.
 
[quote author="asianinvasian" date=1248674690][quote author="hedgehog" date=1248661591]I find it amusing when people think that cash buyers would be foolish and would overpay.</blockquote>


One word: Jealousy. People will make stuff up and resort to personal attacks to make themselves feel better. BTW, cash buyers love bear markets and the lower the price goes the better.</blockquote>


I don't believe in all that myth about all the cash buyers are asians. I met a self made white guy on IHB a year ago, who put down $900,000 on a $1.3M house last year. He wasn't kidding because I saw his home come through IR2's excel spreadsheet. Persians and whites also have the cash buying power as much as the asians do in Irvine.
 
[quote author="awgee" date=1248680539][quote author="asianinvasian" date=1248674690][quote author="hedgehog" date=1248661591]I find it amusing when people think that cash buyers would be foolish and would overpay.</blockquote>
BTW, cash buyers love bear markets and the lower the price goes the better.</blockquote>
You finally got something right. And prices will continue to go lower. And cash buyers will buy at the bottom and soon thereafter.</blockquote>


And the gold buyers will come in soon after that, just when the market is turning for recovery. I have a funny panda feeling that by 2012 prices in Irvine will be $250ppsf across the board... and at the same time, no banks will be willing to loan. If you don't have money in hand, and hoping to borrow up to 80-90% against your Irvine home in 2012, you may be royally screwed. The true winners in this game will be the ones who can put 100% down in 2012 when mortgage rates will be in the stratosphere, and believe me, panda is not one of them.
 
[quote author="PANDA" date=1248683336][quote author="awgee" date=1248680539][quote author="asianinvasian" date=1248674690][quote author="hedgehog" date=1248661591]I find it amusing when people think that cash buyers would be foolish and would overpay.</blockquote>
BTW, cash buyers love bear markets and the lower the price goes the better.</blockquote>
You finally got something right. And prices will continue to go lower. And cash buyers will buy at the bottom and soon thereafter.</blockquote>


And the gold buyers will come in soon after that, just when the market is turning for recovery. I have a funny panda feeling that by 2012 prices in Irvine will be $250ppsf across the board... and at the same time, no banks will be willing to loan. If you don't have money in hand, and hoping to borrow up to 80-90% against your Irvine home in 2012, you may be royally screwed. The true winners in this game will be the ones who can put 100% down in 2012 when mortgage rates will be in the stratosphere, and believe me, panda is not one of them.</blockquote>


Ha ha. I love Panda. As much as I hate predictions, I will just respond for the fun of it. $250/ft2 across the board. Ain't happening. $250 In Woodbridge, West Irvine, Woodbury? Possible. $250 in Turtle Ridge/Turtle Rock? Close to a dream, but it may come true. $250 in Shady? Tsunami has touched down on the California coast. No banks willing to loan=bankruptcy. You can still borrow 80% with good credit. Mortgage rates in the stratosphere in 2012? Depends on how tall is the stratosphere. As I said predicting the future really is just a mental exercise, so don't take it too seriously.
 
Since we're talking predictions, I've been wondering about this one for awhile. If gold goes to $15,000/oz, how much will it cost to rent a typical 3 bedroom house/condo in Orange County?
 
[quote author="ABC123" date=1248686336]Since we're talking predictions, I've been wondering about this one for awhile. If gold goes to $15,000/oz, how much will it cost to rent a typical 3 bedroom house/condo in Orange County?</blockquote>
It is prudent to wonder. And I have no idea. Just as I have no idea what the peak price for gold will be, $15,000 or another amount, nor is it important. The point is that dollars will be devalued greatly and the trend and the volatility of exchange will be of much greater import.



Panda is right about the future of interest rates. Interest rates will increase drastically and currency is devalued.
 
[quote author="ABC123" date=1248686336]Since we're talking predictions, I've been wondering about this one for awhile. If gold goes to $15,000/oz, how much will it cost to rent a typical 3 bedroom house/condo in Orange County?</blockquote>


I've been wondering about that too... so the USD is totally inflated; interest rates are 15%+,, so homes being a commodity should also increase in price? Because a lot of dollars are chasing few goods,, right? Even though interest rates are high, housing would still be high? Rents will also go up; tracking the value of homes... your savings will be worthless, your income will increase but buying power be down...
 
[quote author="roundcorners" date=1248694070][quote author="ABC123" date=1248686336]Since we're talking predictions, I've been wondering about this one for awhile. If gold goes to $15,000/oz, how much will it cost to rent a typical 3 bedroom house/condo in Orange County?</blockquote>


I've been wondering about that too... so the USD is totally inflated; interest rates are 15%+,, so homes being a commodity should also increase in price? Because a lot of dollars are chasing few goods,, right? Even though interest rates are high, housing would still be high? Rents will also go up; tracking the value of homes... your savings will be worthless, your income will increase but buying power be down...</blockquote>


You won't need to rent one, you'll just squat like 50% of the population.
 
[quote author="asianinvasian" date=1248674690][quote author="hedgehog" date=1248661591]I find it amusing when people think that cash buyers would be foolish and would overpay.</blockquote>


One word: Jealousy. People will make stuff up and resort to personal attacks to make themselves feel better. BTW, cash buyers love bear markets and the lower the price goes the better.</blockquote>


I just hope all the FCBs don't spend all their cash knife-catching. The FCBs I know are convinced the market has bottomed already. They tend to be pretty optimistic when it comes to Irvine real estate.
 
I know several FCBs and FNCBs that are all trying to convince me that housing in Irvine has bottomed. NOW IS THE TIME TO BUY!!! I just can't see what would drive a housing recovery. Rental parity? No. Job growth? No. Wage growth? No. Increasing rental rates? No. Interest rates dropping further? How could they?



The only thing I can think of is that if EVERYONE thinks that housing prices are going up soon in Irvine, and tries to buy a house, we could see a short-term bump in prices before the bottom falls out again.
 
You must log in or register to reply here.
Back
Top