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califdreamer 12-12-2005 05:15 PM

cash out of Calif SFR?
 
Hi everyone.* I just signed on and wanted to ask if anyone out there has cashed out of their home and moved, downsized or used their equity in some way that assisted them in retiring.* I'm single and 46 and sitting in too big a house and sitting on too much equity.* I actually sold the house last Spring but got cold feet and decided to stay put.* I love living in the San Diego area but have toyed with moving to an area with lower housing costs (Phoenix, Tucson, Austin, El Paso, etc.)* *I could consider going jobless if I were to manage things well enough after making such a move.*

Perhaps someone who has gone through this has some insight.

Thanks and great to be aboard.*

Brat 12-12-2005 05:23 PM

Re: cash out of Calif SFR?
 
Almost any place in the country has cheaper housing the San Diego!! Start looking for a job, when you find what you want move.

dumpster56 12-12-2005 05:30 PM

Re: cash out of Calif SFR?
 
Quote:

Originally Posted by califdreamer
Hi everyone. I just signed on and wanted to ask if anyone out there has cashed out of their home and moved, downsized or used their equity in some way that assisted them in retiring. I'm single and 46 and sitting in too big a house and sitting on too much equity. I actually sold the house last Spring but got cold feet and decided to stay put. I love living in the San Diego area but have toyed with moving to an area with lower housing costs (Phoenix, Tucson, Austin, El Paso, etc.) I could consider going jobless if I were to manage things well enough after making such a move.

Perhaps someone who has gone through this has some insight.

Thanks and great to be aboard.

Well my friend we are putting the house here in new jersey on the market in jan . Gonna take about 300,000 in equity when we sell it even if the market slows, a nice 2700 sq foot center hall colonial toll bros house.

I will be 50 in april and gonna buy a house for cash in North Carolina outside of Raleigh.

I am Sick of teaching in Newark nj.

Have a pension and with the penalty I still get around 30 and med bennies.

It is a no brainer the kids are grown and on there own.

Hey I can always sell books at borders, coffee at starbucks kayaks at rei or tend bar!

Lets go for it!

Nords 12-12-2005 06:26 PM

Re: cash out of Calif SFR?
 
Quote:

Originally Posted by califdreamer
I'm single and 46 and sitting in too big a house and sitting on too much equity.* I actually sold the house last Spring but got cold feet and decided to stay put.* I love living in the San Diego area but have toyed with moving to an area with lower housing costs (Phoenix, Tucson, Austin, El Paso, etc.)* *I could consider going jobless if I were to manage things well enough after making such a move.*

There's nothing wrong with taking your $250K tax-free cap gain and getting on with your life. San Diego's a great place but way too expensive & crowded for daily living, and you seem to have found other areas of the country that you can tolerate with a quarter-million and your freedom...

califdreamer 12-12-2005 06:33 PM

Re: cash out of Calif SFR?
 
Thanks Brat and Newguy. *

Brat, you make a good point. *Why not move to another sunny but cheaper place and work a few more years before securely retiring.

Newguy, right after I posted I found your thread. *You've got a perfect situation with the pension, etc. *You are absolutely doing the right thing!

I'm doing well on paper due to real estate investments that have turned out better than I planned on and a generous ESOP from my employer. *As I mentioned, I'm 46, single, no dependents. *I have about 850K equity in rental properties with a bit over 200K in cash on the sidelines. *I would clear about 400k on the sale of the SFR. *The ESOP and 401K total 330K. *Of course I can't touch those without penalties until 59.5. *

It looks great on paper but it's basically a lot of built-up equity that I haven't figured out quite how to harness for ER. *

Thanks for your replies. *And congratulations Newguy on your move!

califdreamer 12-12-2005 06:52 PM

Re: cash out of Calif SFR?
 
Thanks for your post Nords. Yes, life is very good in San Diego when you're not in traffic or contemplating losing your home equity in a possible real estate crash. Is life here really so much better than in, say, Phoenix, that it's worth sitting on the equity? I've rolled this around in my head for the better part of a year.

Michael Moore 12-12-2005 08:39 PM

Re: cash out of Calif SFR?
 
We own our home in San Francisco. So far, we haven't found a compelling reason to move to somewhere less salubrious.

cheers,
Michael

Jarhead* 12-13-2005 08:10 AM

Re: cash out of Calif SFR?
 
Quote:

Originally Posted by The Other Michael
We own our home in San Francisco.* So far, we haven't found a compelling reason to move to somewhere less salubrious.

cheers,
Michael

Word of the Day at Dictionary.Com for Tue. Feb 6, 2002.

Salubrious: Favorable to health, promoting health, healtful.

Have about two hours before T-Off this AM, so thanks for helping me kill some time. ;)

HFWR 12-13-2005 08:15 AM

Re: cash out of Calif SFR?
 
I'm already teed-off this morning... >:(

But then I'm at work... :'(

Dawg52 12-13-2005 08:33 AM

Re: cash out of Calif SFR?
 
Quote:

Originally Posted by ex-Jarhead


Have about two hours before T-Off this AM, so thanks for helping me kill some time. ;)

This makes me sick. I haven't played in 2 weeks due to frigging work! Lord, help me get through one more year of work.* :(

Cali, I sold my house 2 years ago and downsized to less than half of what I had. It really feels good to have low fixed expenses too. Low taxes, utilities, maintenance, etc.* You won't be sorry!


califdreamer 12-13-2005 07:32 PM

Re: cash out of Calif SFR?
 
Thanks for input. Just curious, dog51, did you downsize your housing in the same market or did you move from an expensive housing market to a less expensive one? Did you opt to pay cash or keep a mortgage? Some have advised me to pay all cash for the cheaper home, others tell me I should have a mortgage even if I'm able to pay cash.

Has anyone one else gone through this? Any advice?

PS One (somewhat risky) strategy is to sell out and rent. Most seem to advise against timing the market though.

Dawg52 12-13-2005 07:51 PM

Re: cash out of Calif SFR?
 
Quote:

Originally Posted by califdreamer
Thanks for input.* Just curious, dog51, did you downsize your housing in the same market or did you move from an expensive housing market to a less expensive one?* Did you opt to pay cash or keep a mortgage?* Some have advised me to pay all cash for the cheaper home, others tell me I should have a mortgage even if I'm able to pay cash.*

Has anyone one else gone through this?* Any advice?

PS* One (somewhat risky) strategy is to sell out and rent.* Most seem to advise against timing the market though.

Actually I moved in a house my aunt owns. She had already moved in with my mother due to age and health reasons. I'm gonna inherit the house anyway so instead of letting it go down, I decided to go ahead and take advantage of it. I probably sold my house a little early as it was located in a new subdivision that was fairly hot. But thats life.* :-\

MRGALT2U 12-13-2005 07:59 PM

Re: cash out of Calif SFR?
 
Quote:

Originally Posted by DOG51
Actually I moved in a house my aunt owns. She had already moved in with my mother due to age and health reasons. I'm gonna inherit the house anyway so instead of letting it go down, I decided to go ahead and take advantage of it. I probably sold my house a little early as it was located in a new subdivision that was fairly hot. But thats life.* :-\

My parents have deeded their house over to my brother and me.
It's a nice house. I can't imagine any circumstances where
either of us would ever live in it.

JG

Dawg52 12-13-2005 08:15 PM

Re: cash out of Calif SFR?
 
Quote:

Originally Posted by MRGALT2U
My parents have deeded their house over to my brother and me.
It's a nice house.* I can't imagine any circumstances where
either of us would ever live in it.

JG

I won't be here forever as the neighborhood has gone down but it's just around the corner from my mother and aunt. Easy to keep an eye on them from here.* :)

ALushLife 12-13-2005 09:45 PM

Re: cash out of Calif SFR?
 
Hi Dreamer! This is what I just did! I own my home in So Fl on the water and I bought a second home in the mountains in NC. I plan on spending summers there and if I LOVE it there then I may eventually sell my So Fl home...I bought a beautiful turn of the century farmhouse on 2.7 acres on a river w/ mountain views that was a real fixer upper. I am enjoying updating my new old home. For now I am looking at this as an adventure and I'll be living the best of both worlds! I personally wouldn't sell a home I loved unless I had a very good reason to or I had to. The area I purchased my second home reminds me of So Fl 25 years ago....they are building gated developments w/ million dollar homes all around me....beleive me...I didn't pay anywhere near 1 million! Good luck! Annie

califdreamer 12-13-2005 09:56 PM

Re: cash out of Calif SFR?
 
Thanks for replies everyone! Annie, your NC property sounds great. Those million dollar comps in the area won't hurt!

Retire Soon 12-14-2005 07:52 PM

Re: cash out of Calif SFR?
 
Califdreamer,

We're in a situation very similar to yours.* We also live and own a home in the San Diego area.* A year and a half ago, we purchased a home in Bend,Oregon.* We plan to retire in June and to relocate there.* We would like to escape the congestion of Southern California.* We were able to purchase a house in Oregon that was nearly comparable to ours at one half the price of what our San Diego property is worth. Yes, San Diego does have perfect weather, but it is at a price that we're no longer willing to pay.* Traffic was a major consideration.* It is getting progressively worse.* The governor has recently approved Veijas Casino* for an unlimited amount of slot machines.* *This move will seriously impact traffic on I-8 in East S.D. County. San Diego has only a few major freeways to accommodate* the large influx of people who move here every day.

It is a difficult decision to sell a home that we both like and have* made improvements on for the past 15 years. However, we're keeping our fingers crossed that when we put it on the market in April, that* prices will still be stable.* It's a hard decision to make, but we have many relatives who have left the area with absolutely no regrets.* I think it's a good time to take an advantage of the real estate prices.* If they go way down, it may be a long, long time before they return to their current level.


califdreamer 12-14-2005 08:54 PM

Re: cash out of Calif SFR?
 
Thanks for message, Retire Soon. Congratulations on your purchase in Bend. That is a beautiful place!

It's easy to agonize over deciding whether to stay put in a place I really enjoy or pulling out and living mortgage-free and having additional capital to invest.

Even though many other markets have experienced drastic appreciation, most still look attractive compared to California. It's tempting when you see newly constructed homes with a pool in a sunny climate listed for 300,000 or less on realtor.com.

One other option would be to move to a smaller house in Temecula (Riverside County). I could stay nearby and live mortgage free (or live with a small mortgage and some additional money to invest). But if housing takes a tumble in SD, nearby areas would surely follow.

Then there's Cabo.....



danm 12-15-2005 10:52 AM

Re: cash out of Calif SFR?
 
We did so, sold our house recently (N. Ca) and took nearly $400k from the sale and are now renting a much better house, with no worries and nothing to fix. We're not even sure when we'll next buy a house, maybe if prices fall and bottom out. We've now got more money, less work and more mobility than we ever did with the house.

Retire Soon 12-15-2005 05:11 PM

Re: cash out of Calif SFR?
 
Califdreamer,

Temecula has great weather and is not too far from San Diego. We just drove through there on I-15 this weekend. It's almost unbelievable that so many new developments could have sprung up since we went through there a year ago. A friend at lunch today, who lives up there, mentioned that you can buy 5 bedroom houses up there for $300,000. A lot of people have left San Diego to move there, because they have been priced out of the market here. But, you're leaving for a better reason in that you want to lock in profits on a booming real estate market. Sounds like a good decision.


ALushLife 12-15-2005 05:19 PM

Re: cash out of Calif SFR?
 
I LOVE Realtor.com! That's how I found my Buyer's agent and flew to NC to look at properties :laugh: Annie

califdreamer 12-16-2005 12:59 AM

Re: cash out of Calif SFR?
 
Thanks for replies. DanM, sounds like you made out well selling in Nor Cal. Because I moved some equity into this house when I bought it three years ago my mortgae payment is reasonably low. Because of that, I'd have to pay more in rent for even a smaller place in San Diego. Of course, if the market takes a dive, renting would look brilliant in hindsight.

Great to hear from you again, retire soon. I checked out Temecula SFRs on realtor.com and found the lowest detatched homes at around 360K. I think as you move north up I-15 you get lower prices in Lake Elsinore, Perris, Hemet, etc. It might still make sense to get into Temecula at 400K or thereabouts. Would provide for extra funds for investment.

Just curious, LushLife, how did you decide to look in NC for your second home? Was it from browsing on realtor.com or some other research?

Note to Retire Soon: I think the housing mkt here may hold out pretty well in early 2006. Looks like hike in interest rates may slow down as inflation looks tame. Good news if you're a seller in Spring 06.






Retire Soon 12-16-2005 07:31 PM

Re: cash out of Calif SFR?
 
Califdreamer,

Thanks for the moral support. I am cautiously optimistic.* I think you're right, in that slowing* inflation can work in our favor.

NYCGuy 12-17-2005 10:53 AM

Re: cash out of Calif SFR?
 
Quote:

Originally Posted by califdreamer
The ESOP and 401K total 330K. Of course I can't touch those without penalties until 59.5.

There are at least two ways that you can tap the 401k money prior to age 59.5 without a penalty:

1. If you leave your last company at age 55 or older you can begin withdrawals from the 401k without penalty even if you are not yet 59.5. This is one of the unique benefits of a 401k and is often overlooked in discussions about rolling over. This option does not apply to 401k accounts you may still have from prior employers. If you have any of those and do want to take this option then you could roll them into your current 401k before you retire, if that plans permits you. Of course, you would have to weigh this benefit versus the investment choices, maintenance fees, etc.

2. You can always take Substantially Equal Periodic Payments from a 401k or and IRA prior to 59.5 without penalties. Google it if you are unfamiliar with SEPP.

There is a new book on the question you raise: Gillette Edmunds' "Retire on the House". I haven't read it, but liked his earlier book on retirement a lot.

I think it is at least sometimes possible to time a market and the current real estate market is one of them. I sold my apartment in New York City and am renting now. Very glad I did it from every point of view, not the least of which is protecting my RE gains for retirement.

Good luck.

ALushLife 12-17-2005 06:11 PM

Re: cash out of Calif SFR?
 
How did I find NC!!!? I published a high end design magazine for 15 years and in the last 5 I know at least 6 very successful So Fl homeowners buying 2nd homes in NC. Funny story...just before the last hurricane I was at Target and ran into aquantainces that own a home in the mountains in NC. The wife is a little b**chy and lets her Hubby work while she is in the mountains all summer.. I was so excited to share my news and tell them I bought and closed on a home....LOL...she said to me...."why do you need a home in NC?"....I replied..."Do you think you are the only upwardly mobile baby boomer entitled to a vacation home?" LOL! LOL! Her Hubby and I had a good laugh!

califdreamer 12-17-2005 11:51 PM

Re: cash out of Calif SFR?
 
Thanks NYCGuy for heads up on SEPP for 401k/IRA withdrawal. I will research!

LushLife, sounds like you'll have active social life in NC.

I crunched the numbers more carefully and came up with an interesting scenario. I sell house in SD and reposition some income properties (won't bore you w/ details). Relocate to sunny town in SW that didn't go nuts during RE boom and pay cash for 3br newer (<5yrs) home w/ pool and perhaps a little more sq footage than I actually need. Take in 51,500 in cash flow on repositioned RE assets (5% yield), leave one propty for growth w/o expectations for cash flow and bank 100K. For now, leave ESOP (which will become IRA) and 401k alone pending research on early withdrawal options.

I am EXTREMELY tempted to do this but I would certainly miss San Diego and my friends here. I would risk not being able to jump back in the SD housing mkt if for some reason I wanted to return someday. I would need to make the right moves to get 5% cash return on RE (it's tougher than it sounds). I would slow down my RE investment equity growth by tapping into it for cash. I am pretty frugal and unconcerned with status-oriented material stuff but would need to be comfortable with 51.5K. Out of that would come health insurance and money for hobbies (golfing, skiing, intl travel).

I've been very impressed with the wealth of experience, knowledge and wisdom throughout the website. I appreciate your views and insights.

califdreamer 12-19-2005 09:17 PM

Re: cash out of Calif SFR?
 
Quote:

Originally Posted by califdreamer
Thanks NYCGuy for heads up on SEPP for 401k/IRA withdrawal. I will research!

LushLife, sounds like you'll have active social life in NC.

I crunched the numbers more carefully and came up with an interesting scenario. I sell house in SD and reposition some income properties (won't bore you w/ details). Relocate to sunny town in SW that didn't go nuts during RE boom and pay cash for 3br newer (<5yrs) home w/ pool and perhaps a little more sq footage than I actually need. Take in 51,500 in cash flow on repositioned RE assets (5% yield), leave one propty for growth w/o expectations for cash flow and bank 100K. For now, leave ESOP (which will become IRA) and 401k alone pending research on early withdrawal options.

I am EXTREMELY tempted to do this but I would certainly miss San Diego and my friends here. I would risk not being able to jump back in the SD housing mkt if for some reason I wanted to return someday. I would need to make the right moves to get 5% cash return on RE (it's tougher than it sounds). I would slow down my RE investment equity growth by tapping into it for cash. I am pretty frugal and unconcerned with status-oriented material stuff but would need to be comfortable with 51.5K. Out of that would come health insurance and money for hobbies (golfing, skiing, intl travel).

I've been very impressed with the wealth of experience, knowledge and wisdom throughout the website. I appreciate your views and insights.

Hi everyone,

I didn't mean to sign off when I wrote that last paragraph... I guess it sounds like a goodbye. Or maybe you're bored with me ... which is understandable ;).

I'll throw out another scenario and see if anyone has an opinion on which method is better:

I sell SD house and move to Temecula (inland about 30 minutes from where I am now... and cheaper per sq ft). I buy smaller house. I get a mortgage that will equal my current one and invest the extra equity. I like rental properties (not in Calif ) so that's where I'd invest. If I got 5% on investment RE equity at that point I'd bring in about 66K/yr. But I would have a 1600/mo house payment. So I'd count on 10% compounded return on equity for the next 2 yrs (which I believe is quite conservative) so that my cash flow would be 80K. I would be able to keep my current job if I move there so that's how I could let the RE equity grow for 2 yrs.

I know lots of people think this sounds like overkill, but rental income is not as ironclad as pension money. I would also be shouldering the costs of health insurance. Some have a guaranteed pension and health coverage. That enables them to not have to shoot for quite so much income and provides some peace of mind due to less volatility. Perhaps some of my concern is from my down and out days in the nasty early nineties! Never want to go back there.

Thanks in advance for any opinions, advice, etc.

riskadverse 12-20-2005 08:27 PM

Re: cash out of Calif SFR?
 
I'm retired in San Diego, and I can't imagine moving.* Sure there's lots of traffic, but I almost never hit it because I'm not going to work or returning from it.* Some of the worst traffic I've ever seen (outside of LA) is in Temecula.* As for real estate values, I can't think of a place that is more likely to keep high values.* In your situation, I might sell and buy smaller, getting the excess out tax free.* In my case, I like a big house and am keeping mine all paid off.* If I ever start running out of savings, a reverse mortgage should tide me over till the end.* * *

Trace 12-20-2005 08:41 PM

Re: cash out of Calif SFR?
 
The following article from Money Magazine is interesting.* It provides real estate appreciation projections for the next two years in the top 100 markets:

https://money.cnn.com/pf/features/lis...owth_forecast/

I was feeling good about my decision to relocate to San Antonio this year (#1 city for projected real estate appreciation).*

REWahoo 12-20-2005 08:47 PM

Re: cash out of Calif SFR?
 
Trace,

This article was posted yesterday in this thread:

https://www.early-retirement.org/forums/i...91876#msg91876

BTW, I live in the San Antonio area. Send me a PM if I can help you out with area information.

REW

califdreamer 12-22-2005 12:55 AM

Re: cash out of Calif SFR?
 
Quote:

Originally Posted by riskaverse
I'm retired in San Diego, and I can't imagine moving. Sure there's lots of traffic, but I almost never hit it because I'm not going to work or returning from it. Some of the worst traffic I've ever seen (outside of LA) is in Temecula. As for real estate values, I can't think of a place that is more likely to keep high values. In your situation, I might sell and buy smaller, getting the excess out tax free. In my case, I like a big house and am keeping mine all paid off. If I ever start running out of savings, a reverse mortgage should tide me over till the end.

Believe me, risk averse, I often have a hard time thinking about moving away. And you're absolutely right about Temecula traffic. What I've found about the idea of downsizing in SD is, by the time you pay commissions and closing costs, it's difficult to gain much.

Thanks to REWahoo and Trace re Money magazine article on housing markets. Interestingly enough, the town I had my eye on for relocating was El Paso which is near the top of the list for best appreciation in 06-07.


old woman 12-25-2005 03:09 PM

Re: cash out of Calif SFR?
 
*The ESOP and 401K total 330K. *Of course I can't touch those without penalties until 59.5.

There are ways to take your retirement money sooner without penalties. Read publication 590 from the IRS. I know you are 46 but at 55 you could take 401K money if you leave the employer without penalty. You can roll your 401K to a IRA and convert some to a ROTH then after 5 years you can withdraw without penalty. You would pay the tax on conversion and can't take out the profits. That would work if you did it now you could start getting some out penalty free at 51. Another method is substantually equal payments.
Any money you already have in ROTH that coverted more than 5 years ago or you contributed can be taken now except the profits.

califdreamer 12-30-2005 05:05 PM

Re: cash out of Calif SFR?
 
Thanks, OW, for early withdrawal options for 401k.

I should probably quit looking at realtor.com. I was inspired to look again after seeing another post about people retiring early to rural towns. It is just crazy what deals you can find in Tyler, TX and places like that. It's the old dilemma, is it really worth staying put in CA when you can literally free up 100s of 1000s of dollars to buy a beautiful home for cash and have lots left over to invest?!? After all, if you can go golfing, wine and dine, travel and do plenty of things you like to do does it really matter where you are? For me, as long as it's pretty much a sunny and warm climate, I can be happy.

I also looked at San Antonio at realtor.com and came away astounded at what you can get for 100-200K. Nice, newer homes in good areas of town. I know there are some San Antonians out there. What do you think are the pros and cons of living there? It's probably a fast growing area with people from all over.

Has anyone out there cashed out of an urban area and moved to a small town? How has it gone for you?

REWahoo 12-30-2005 05:29 PM

Re: cash out of Calif SFR?
 
Quote:

Originally Posted by califdreamer
I also looked at San Antonio at realtor.com and came away astounded at what you can get for 100-200K. Nice, newer homes in good areas of town. I know there are some San Antonians out there. What do you think are the pros and cons of living there? It's probably a fast growing area with people from all over.

San Antonio has fire ants, scorpions, high property taxes, and 90 to 100F temperatures from May through October. Other than that, it's OK. :P

Seriously, it is a nice place but is growing like mad. I live just northwest of the city and for various reasons, the housing boom and population growth is moving westward from the city after bumping up against growth barriers to the south (lower socio-economic area), east (industrial area), and north (building restrictions over the aquifer recharge area supplying almost 100% of the city's water). The growth concentration is placing real stress on the infrastructure, and traffic is going from bad to really bad (I know you are from California, so don't laugh). The school district where all the growth is occurring is predicting they will need 60+ additional schools constructed in this area in the next 10 years. And since schools are funded by property taxes in Texas, hang on to your wallet!

But it's a nice place...really! ;)


califdreamer 12-30-2005 06:53 PM

Re: cash out of Calif SFR?
 
Hmm... fire ants, scorpions, heavy traffic. You're giving me second thoughts, Wahoo. Are you pretty far outside of the city? Are there areas with lakes that are within an hour or so of town (I know, an hour outside of the commuting hours)? I'm familiar with some of Central TX. How far out is Kerrville? Is that a remote outpost or are there things to do? Any nice places north of SA toward Austin? Thanks for your input on this.

Anyone out there go the rural route? Perhaps a small college town in Georgia or the Carolinas? Are there some "sleeper" towns out there that are underpriced for the lifestyle offered?

Brat 12-30-2005 06:57 PM

Re: cash out of Calif SFR?
 
Husband and I cashed out of NW Portland and moved to Bainbridge Island- which the locals like to think of as 'rural'.* Because of our taste in real estate it was a push.* Property taxes are actually lower, and there is no income tax.

NW Portland is very pedistrian oriented with lots of street life, the neighborhood I live in now is much more suburban.*

In the neighborhood near the ferry (called Winslow) there is a good supply of condos (more going up every day) - and a decent cultural life.* [The library is outstanding, bakeries and coffee shops plentiful.* There is a community performing arts center and world class performing arts just a ferry ride away.]

Weather wise, it is no San Diego.* However, it seldom gets below freezing for long and weather in the 90s is rare.* A much more moderate climate than Portland's because the Pudget Sound acts as a heat pump. *No tornadoes or hurricanes, but an occasional shake that wouldn't wake a Californian.* For me it is valhalla.

REWahoo 12-30-2005 09:59 PM

Re: cash out of Calif SFR?
 
Quote:

Originally Posted by califdreamer
Hmm... fire ants, scorpions, heavy traffic. You're giving me second thoughts, Wahoo. Are you pretty far outside of the city? Are there areas with lakes that are within an hour or so of town (I know, an hour outside of the commuting hours)?

I'm about 10 miles outside the city limits (25 miles northwest of downtown) in a neighboring county. I'm three miles from a lake (Medina) and here are a couple of links to developments nearby. Search zip 78056 in realtor.com to sample some home prices. Note that the developments below are near but not on the lake. Prices go up substantially for waterfront property.

https://www.laurelcanyonranch.com/
https://www.dancingbearranch.com/

North of town an hour or so is Canyon Lake. I'm less familiar with the developments around it, but they are numerous. Both Medina and Canyon are beautiful "clear water" lakes located in limestone basins.

Quote:

Originally Posted by califdreamer
I'm familiar with some of Central TX. How far out is Kerrville? Is that a remote outpost or are there things to do?

Kerrville is 60 miles out I-10 from SA. It's nice, but in my opinion, overpriced and over developed. It became a retirement hot spot a few years ago and is suffering the rewards.

Quote:

Originally Posted by califdreamer
Any nice places north of SA toward Austin?

Lots of nice places north of SA and west of Austin in the Texas Hill Country. This area has been "discovered" and people (like me and Ol_Rancher) are filling the place up. The roads in towns like Boerne, Kerrville, Wimberly and Fredericksburg are jammed with RV's and Buicks with stuck turn signals.

Glad to help... :)


califdreamer 12-31-2005 12:11 AM

Re: cash out of Calif SFR?
 
Thanks, wahoo, that's a wealth of information that will be very useful. No wonder the area is filling up. It looks very desirable.

Thanks also to Brat for info re Bainbridge Island in WA. Beautiful area. Had some friends who lived there in the 90s and enjoyed it very much.

old woman 12-31-2005 12:17 AM

Re: cash out of Calif SFR?
 
Quote:

Originally Posted by Brat
Husband and I cashed out of NW Portland and moved to Bainbridge Island- which the locals like to think of as 'rural'.* Because of our taste in real estate it was a push.* Property taxes are actually lower, and there is no income tax.

NW Portland is very pedistrian oriented with lots of street life, the neighborhood I live in now is much more suburban.*

In the neighborhood near the ferry (called Winslow) there is a good supply of condos (more going up every day) - and a decent cultural life.* [The library is outstanding, bakeries and coffee shops plentiful.* There is a community performing arts center and world class performing arts just a ferry ride away.]

Weather wise, it is no San Diego.* However, it seldom gets below freezing for long and weather in the 90s is rare.* A much more moderate climate than Portland's because the Pudget Sound acts as a heat pump. *No tornadoes or hurricanes, but an occasional shake that wouldn't wake a Californian.* For me it is valhalla.

I like the Seattle area weather, I don't like it when it is over 80 and my perfect day is 70 and overcast with a slight drizzle. I don't like sun in my eyes. To me Texas or Pheonix or most of California would be misserable. I had to spend the night in Yuma once couldn't wait to leave. Some people like sun and heat, I like to wear sweaters year round. My office hasn't got air conditioning, several days a year I wish I wasn't at work. I have a window unit for one room at home but only need it about a week a year.

califdreamer 12-31-2005 01:03 AM

Re: cash out of Calif SFR?
 
Some like it hot... I tend to enjoy warmer, sunnier climates. Southern California weather is just about ideal but I like the sunny Southwest as well. In those "Places Rated" books I tend to disagree with their emphasis on moderation. I look for things like number of sunny days, least number of freezing days, least rainy and the like. I could get into Hawaii or Cabo San Lucas climates. That's stating the obvious I guess. As gorgeous as the Northwest is, and it is phenomenally beautiful, I struggle with short winter days, cloud cover and cool temps.

dumpster56 12-31-2005 08:16 AM

Re: cash out of Calif SFR?
 
Quote:

Originally Posted by califdreamer
Some like it hot... I tend to enjoy warmer, sunnier climates. Southern California weather is just about ideal but I like the sunny Southwest as well. In those "Places Rated" books I tend to disagree with their emphasis on moderation. I look for things like number of sunny days, least number of freezing days, least rainy and the like. I could get into Hawaii or Cabo San Lucas climates. That's stating the obvious I guess. As gorgeous as the Northwest is, and it is phenomenally beautiful, I struggle with short winter days, cloud cover and cool temps.

I am still trying to figure out where in North Carolina to drop my hat from New Jersey. I am tending to think 50 or so miles outside of wake county the raleigh area. They are growing like mad and building schools.

Property taxes are much less in the carolinas, they fund education a bit differently with the property tax NOT the real funding source.

Anyhow, my house here in NJ goes on the market around march 1st or so, decided to wait out the snow and cold here, not in the mood for realtors and people tromping thru in jan and feb with wet shoes etc!
A spring sale, WE HOPE.

Trace 12-31-2005 10:17 AM

Re: cash out of Calif SFR?
 

Califdreamer wrote:

I also looked at San Antonio at realtor.com and came away astounded at what you can get for 100-200K.* Nice, newer homes in good areas of town.* I know there are some San Antonians out there.* What do you think are the pros and cons of living there?* It's probably a fast growing area with people from all over.*


I will share with you my initial thoughts from living in the city for 7 months.

I enjoy all of the activities that are within a short driving distance:* * The Riverwalk, Fiesta Texas, Schlitterbahn, Sea World & Parks.*

I also appreciated the opportunity to buy a nice home in a great community at a low price.* *Most of the houses in my neighborhood are 75-80% brick exteriors.* Community swimming pools & recreational facilities add to the value.*

This article outlines 300 real estate markets.* It shows that San Antonio is currently 11% undervalued.

https://money.cnn.com/2005/12/29/real...kets/index.htm

I was also very impressed with the Northeast ISD school district.* Great schools with state of the art technology &* small class sizes.*

I do not like how the roads are layed out.* The city uses "Access Roads" that parallel some of the main highways.* For example, there are many times I have to use the turnaround to reach my destination (instead of just using an exit).* *This is hard to explain - - you really need to experience it.* *The city needs to spend some $$ to upgrade it's roadways.* *This may happen through the use of toll roads.*

There are times the the heat is unbearable (July, August, & September).* *You really need to be inside during the 100+ heat days.* The weather during the winter months has been great.*

I currently pay a property tax rate of 2.5%.* My home is right on the city limits border and I expect to be annexed at any time.* *This will increase my tax rate up to 3.0%.* The majority of my taxes go for the schools.* No state taxes though.* *

One additional thing ...* *The soil where I live (and much of San Antonio) is very rocky.* *The landscaping company had to utilize a jackhammer to plant my tree.* *

I hope this helps.* *Let me know if you have any additional questions.* * * *


REWahoo 12-31-2005 10:29 AM

Re: cash out of Calif SFR?
 
Quote:

Originally Posted by Trace

I will share with you my initial thoughts from living in the city for 7 months.

Trace, you mentioned the opressive summer heat, but you failed to say anything about the high property taxes, high water bills, fire ants, scorpions, and other varmits that inhabit city hall... :rant:


Trace 12-31-2005 11:08 AM

Re: cash out of Calif SFR?
 
Oh yeah ...* *Scorpions

Seven months = Three scorpions in the house

The first one showed up the first night in the new residence (crawled up through the pipes).* * They don't eat much though* *;D

That number would have been higher w/o the pest control company.*

The water bills are very high (just paid it today $109.00).* *

califdreamer 12-31-2005 12:33 PM

Re: cash out of Calif SFR?
 
Thanks for additional feedback to all.

New Guy, I think interest rates will stay reasonable through Spring when you're going to sell, so waiting til March should be fine. Don't blame you for not wanting snow and sleet dragged thru the house... having the house ready to show is a pain even in perfect weather. All of the "places rated" articles seem to rank Raleigh-Durham-Chapel Hill highly. Sounds like it's got a nice mix of mild weather, culture and laid back lifestyle. I've heard the area along the coast in Wilimington has become popular though it looks like we're in a nasty hurricane cycle for a while. Others talk about Asheville and the mountains although that sounds like it has cold winter weather that you're getting away from up North. What about the Charlotte area? Sounds like its economy is bouncing back and the housing is very reasonably priced. All in all, NC sounds like it has a lot to offer for the early retiree. Good luck and keep us posted.

Trace, thanks for your thoughts about living in San Antonio. Last night I had nightmares from wahoo's post.... driving down a packed I-10, air conditioner on the fritz, scorpions and fire ants coming in the rolled down car window. :o
I'm surprised your propty tax rate would go to 3% if your area gets annexed by San Antonio. Geez, that's pretty hefty.

Thanks very much for feedback and Happy New Year to all!

REWahoo 12-31-2005 01:32 PM

Re: cash out of Calif SFR?
 
Quote:

Originally Posted by califdreamer
Trace, thanks for your thoughts about living in San Antonio. Last night I had nightmares from wahoo's post.... driving down a packed I-10, air conditioner on the fritz, scorpions and fire ants coming in the rolled down car window. :o

califdreamer, I saw this on a chamber of commerce website for a small town in NY state, and thought it would be an interesting measuring stick for life in San Antonio:

"...we don't have earthquakes, mud slides, wild fires, floods, droughts, hurricanes, tornadoes, hail storms, dust storms, air pollution indoor-only days, 100 degree heat, high humidity, laws banning fireplaces, avalanches, scorpions, rattle snakes, alligators, fire ants, water restriction days, killer bees, or roaming power outages "

6 out of 21 ain't too bad... :laugh:


dumpster56 12-31-2005 01:54 PM

Re: cash out of Calif SFR?
 
Quote:

Originally Posted by califdreamer
Thanks for additional feedback to all.

New Guy, I've heard the area along the coast in Wilimington has become popular though it looks like we're in a nasty hurricane cycle for a while.


Thanks very much for feedback and Happy New Year to all!

We have a family vacation house near wilmington, Nice to visit, the area as far as I am concerned is NOT what I like.

The thought of having a new home in a Hurricane zone is well NOT appealing, sure ya get insurance but a cat 4 or 5 storm destroys so much, we all saw what Katrina and Rita did to areas on the gulf, I remember HUGO and Fran in north carolina so I am aware!

So it will be off to raleigh area and a new start.

Happy new year guys from the newguy..

LEX 12-31-2005 02:30 PM

Re: cash out of Calif SFR?
 
Caldreamer:

I live in Phoenix, but I really like San Diego, especially in the summer.* As part of my so called "investing" (read random luck, both good and BAD!) I* bought a small one bedroom 1980's vintage condo in Vista just outside of Oceanside two years ago. It had sunburst tan toned* appliances, which are now back in vougue>* Please, that is what I told my spouse and I may be able to keep her semi-happy at least until this next summer when I pull them out and go with stainless fridge, dishwasher and Stove.* I paid 225K for it (its worth about what the same today,* as a one bedroom this far inland is not a big since its too small for the move-up crowd, and its not west of I5) and it works for the present as a summer getaway, but I could live there year round.* Its not a bad idea, since you are already wired into SOCAL.* Sell the big place and pay cash for a one bedroom or so in North County.* (The beach is is just a short cruise away and if you are like me you would miss it.)

Maybe you should consider just scaling down but staying in the San Diego area?*

Heres but one example of a potential way to scale down and still remain in San Diego County:

https://www3.helpusell.com/FirstChoic...X?LID=17755751


astromeria 01-01-2006 09:26 AM

Re: cash out of Calif SFR?
 
We cashed out of our San Francisco place and bought in Charleston County, South Carolina. This is a great place to live if you love a walkable and beautiful small city with moderate traffic, white sand beaches, pretty gardens, nature areas and tidal creeks, restaurants from great cheap eats & up, fresh local seafood and farmers markets, boating, colleges for free & cheap events, as well as lots of music & theatre groups, art galleries, and the annual SpoletoUSA Festival--one of the outstanding arts festivals in the world. For the sporty, there's fishing/shrimping/crabbing/oystering, boating/parasailing/swimming, minor league baseball, College of Charleston basketball, and lots of golf courses. We love the slower pace here and the balance among age groups--lots of retirees and semi-retirees in their 40s-60s, quite a few former military who were once based at the Charleston Navy Yard or Air Base, and quite a few from the mid-Atlantic and Midwest. There's a wide range of housing options and prices--small, older houses from $100k and brand new ones for $150k on up, and condos start under $100k. Our property taxes are really REALLY low compared to the Bay Area and suburban Boston. There's a 10 (15?)% prop tax break for seniors.

This part of SC has a lower rate of hurricane hits than the area close to NC--not to mention a far lower chance of hurricanes than FL or NC. Hurricane Hugo actually did more damage inland in Charlotte, NC than it did in Charleston. I pay attention to the weather June-October and keep a hurricane stash (canned food, batteries, tarps and such), good insurance, and my 8-yr-old 4Runner with manly tires ;D

califdreamer 01-01-2006 07:10 PM

Re: cash out of Calif SFR?
 
Wahoo, you really should consider running for mayor of San Antonio ;)

Newguy, sounds like you're zeroed in on Raleigh-Durham area of NC. I've never been to that part of the state but it sure sounds good from all the "most livable cites" type articles.

You know, LEX, I have looked at downsizing here in SD and I always run into the same mental roadblocks. I brought some equity into the purchase of my current house 3 yrs ago and got a 5% loan rate. So it's tough to beat the monthly payments. I also have a strong preference for detatched housing. And, of course, the thought of spending 40k+ on commissions, etc. makes me sick to my stomach. I figure I really have to move further inland (for example to Temecula) or to another state to make the downsize strategy worthwhile.

Thanks for great info on Charleston, SC, astromeria. I saw the perfect house in the area on realtor.com for about 230k. Interesting. Sounds like a very comfortable lifestyle there. This will sound somewhat trivial but are the mosquitoes bad? Do people put those nets around their backyard pools to keep them away?

Thanks for all the great input and hope everyone's 06 is off to a good start!

astromeria 01-01-2006 08:19 PM

Re: cash out of Calif SFR?
 
It is more buggy and humid here than anywhere I've been in CA for sure--San Diego is paradise climate-wise, and we didn't have or need window screens in San Francisco. Some SC people who want to be in their yards at dusk and in the evening spray for bugs or use bug zappers--I never saw a screened-in pool here. While there are gnats and mosquitos, I don't develop the huge itchy/painful welts that I got when I lived in New England. The evening bugs are worse in Massachusetts & New Hampshire (and according to my daughter, Houston and Dallas) than here--but I'm a mile or so from the ocean, so it might be better here than further inland.

justin 01-03-2006 01:58 PM

Re: cash out of Calif SFR?
 
I'm a lifelong resident of Raleigh-Durham-Chapel Hill and I can tell you it is a nice place to live. Growing very fast though. Cost of living is relatively low compared to California, DC, urban Florida or New England. Generally good schools in the urban areas. Good roads. Low property taxes (as long as you aren't in Chapel Hill).

My wife just started a new job at a company with a few hundred other new employees, most of whom were former New England residents. After talking to many of her coworkers over the last few weeks at holiday parties, I keep hearing about how they decided to move to Raleigh-Durham because of the cheap housing and costs of living, and how the pace of life is a little "slower". People say "hi" when you pass by and wave to you. And don't think we're illiterate hicks from the sticks - it's one of the best educated areas in the nation with almost the highest concentration of PhD's in the nation.

Get used to hot, humid summers and generally mild winters (usually above freezing during the day). Spring and fall - the weather is perfect!

Brat 01-03-2006 05:06 PM

Re: cash out of Calif SFR?
 
Quote:

hot, humid summers
In my part of the world moisture has the decency to fall to the ground. I can walk, run and breathe in comfort.

Jay_Gatsby 01-03-2006 05:20 PM

Re: cash out of Calif SFR?
 
Quote:

Originally Posted by justin
I'm a lifelong resident of Raleigh-Durham-Chapel Hill and I can tell you it is a nice place to live.* Growing very fast though.* Cost of living is relatively low compared to California, DC, urban Florida or New England.* Generally good schools in the urban areas.* Good roads.* Low property taxes (as long as you aren't in Chapel Hill).*

My wife just started a new job at a company with a few hundred other new employees, most of whom were former New England residents.* After talking to many of her coworkers over the last few weeks at holiday parties, I keep hearing about how they decided to move to Raleigh-Durham because of the cheap housing and costs of living, and how the pace of life is a little "slower".* People say "hi" when you pass by and wave to you.* And don't think we're illiterate hicks from the sticks - it's one of the best educated areas in the nation with almost the highest concentration of PhD's in the nation.*

Get used to hot, humid summers and generally mild winters (usually above freezing during the day).* Spring and fall - the weather is perfect!

I've heard a lot of good things about living in North Carolina, particularly if you have kids. If you're young and single, then a large Eastern Seaboard city is a better choice.

dumpster56 01-03-2006 05:35 PM

Re: cash out of Calif SFR?
 
Quote:

Originally Posted by Jay_Gatsby
I've heard a lot of good things about living in North Carolina, particularly if you have kids. If you're young and single, then a large Eastern Seaboard city is a better choice.

Kids grown and married and professional jobs.

Gonna be 50 in april, the wife is 52 and still sweet and beautiful!

Still looking at nc, the wifes fun family is in the carolinas and my family would move there or visit!

justin 01-04-2006 12:13 PM

Re: cash out of Calif SFR?
 
Quote:

Originally Posted by Jay_Gatsby
I've heard a lot of good things about living in North Carolina, particularly if you have kids. If you're young and single, then a large Eastern Seaboard city is a better choice.

Where I live in NC is rather kid/family friendly. Two nice city parks within walking distance. Good K-12 schools and two great Universities within 30 minutes that offer in state tuition and essentially every curriculum known to man. My daughter can walk to her elementary school (when she learns to walk). The public high school I attended here in Raleigh usually gets ranked in the top 50 nationally on some poll. Low crime.

califdreamer 01-04-2006 12:51 PM

Re: cash out of Calif SFR?
 
OK, I've had the holidays to think this thing (cash out of Calif SFR?) through and here's my thinking today (as of 10:30 AM PST subject to change by 11:30).

The investment real estate will provide for FIRE (see original post in this thread for detailed financials) but it will take a few more years. I could cash out of CA, move to a less expensive place and have 200K more for investing and buy a house for cash. That would get me in a position to retire, perhaps in 2006. But the fact is, I really like it here and I think I'd like to retire here. Yes, it will take an additional year (or three) to do it but I have a lot of years left and I'd like to spend them here (for forseeable future anyway).

In order to be able to retire here sooner, I could broker some apartment investment deals. After a year or two, if this enterprise looks promising, I could leave my paycheck job (where I work out of my home and have tremendous flexibility) and just do the real estate deals. I could, I suppose, do some of this as a sideline during ER. I've been investing in apts for almost ten years so I have a good feel for the business. I might even be better at it than I am at my current pleasant but boring job.

Possible downsides: San Diego home prices crash and I lose a quarter million I could've used for relocation... the real estate brokerage doesn't pan out... I die of boredom waiting for ER ;)

I'll throw it open to everyone. Am I crazy? Should I take the money and run? Would it be crazy to relocate just to cash in on home equity? Is my 10:30 decision to stay and pursue a side career in real estate brokerage a good one? As always, thanks in advance for your valuable input.


dumpster56 01-04-2006 01:17 PM

Re: cash out of Calif SFR?
 
Quote:

Originally Posted by califdreamer
OK, I've had the holidays to think this thing (cash out of Calif SFR?) through and here's my thinking today (as of 10:30 AM PST subject to change by 11:30).

The investment real estate will provide for FIRE (see original post in this thread for detailed financials) but it will take a few more years.* I could cash out of CA, move to a less expensive place and have 200K more for investing and buy a house for cash.* That would get me in a position to retire, perhaps in 2006.* But the fact is, I really like it here and I think I'd like to retire here.* Yes, it will take an additional year (or three) to do it but I have a lot of years left and I'd like to spend them here (for forseeable future anyway).*

In order to be able to retire here sooner, I could broker some apartment investment deals.* After a year or two, if this enterprise looks promising, I could leave my paycheck job (where I work out of my home and have tremendous flexibility) and just do the real estate deals.* I could, I suppose, do some of this as a sideline during ER.* I've been investing in apts for almost ten years so I have a good feel for the business.* I might even be better at it than I am at my current pleasant but boring job.*

Possible downsides:* San Diego home prices crash and I lose a quarter million I could've used for relocation... the real estate brokerage doesn't pan out... I die of boredom waiting for ER ;)

I'll throw it open to everyone.* Am I crazy?* Should I take the money and run?* Would it be crazy to relocate just to cash in on home equity?* Is my 10:30 decision to stay and pursue a side career in real estate brokerage a good one?* As always, thanks in advance for your valuable input.


Your time responses are just what I have been going thru. I however do not post them . I too have doubts at times but when I look at my numbers, with a state pension of over 30,000 with medical bennies for both myself and wife with minimal co pays and prescription coverage foe generics at 15 dollar co pay for 90 day supply and then the selling of the home and having near 300,000 to purchase a home for cash in north carolina from new jersey I say what the heck it is time and I am only 50!

Sure I can stay for anothe 1 2 or 3+ years and get an additional 250 dollars a month every year but that means still having to drive 120 miles a day and continue to teach in Newark new jersey!

My situation is a no brainer, New jersey stinks! Time to go, heck Selling Kayaks and running shoes at a sporting goods store while coaching a track team part time is my new career track!

Targeting40 01-04-2006 02:08 PM

Re: cash out of Calif SFR?
 
We lived in Cary for 5 years. Cary is right between Raleigh/Durham. We absolutely loved the area. Real estate prices and corresponding property taxes are very reasonable. There has been very little change in real estate prices in Cary for about the last 8 years. Many studies show real estate prices are undervalued compared to the rest of the country. The only downside is state taxes and that is ultimately what made us decide to move to Florida. We were paying 8.25% in NC state income taxes. We absolutely loved the area but by moving to Florida the tax savings alone would pay for our mortgage.

We moved to Central Florida about 4 years ago and built a new home. Then the housing boom hit and our property nearly doubled in price in just 2 years. We were now sitting on a tax-free capital gain of $410K. We could not believe people were willing to pay such prices so we could not resist the temptation to cash out. About this time a year ago, we put our house on the market and sold within 3 months.

We then moved to north Florida where prices are extremely affordable. In fact the prices in Tallahassee are equivalent to what the central Florida prices were 4 years ago. For the first time we own our own home without a mortgage. We are only in our low 30s so we feel this is quite an accomplishment.

Both moves were difficult because we loved both areas we were leaving, but the financial gains were too good to pass up. Cashing out and moving was a tough decision but locking in the gains has been very satisfying.

Good luck in making your decision.

califdreamer 01-04-2006 05:10 PM

Re: cash out of Calif SFR?
 
Thanks for replies!

Newguy, if I were in your situation I would go to NC in a heartbeat. Everything about moving makes sense for you.... you can cash out of a big SFR... you can move to a very high-quality-of-life area that is actually cheaper!... you can say goodbye to a brutal commute... you can get away from inner city violence (that in itself would be enough for me to go)... you have a defined-benefit pension with health coverage... you have family connections in the new location... you can do things you enjoy while you earn a little spare cash (kayaks, track coaching, etc.)...you can even go back to teaching if you get restless. Makes all the sense in the world to go for it.

Targeting40 thanks for an interesting post and congratulations on being mortgage free in your early 30s. You have made some shrewd real estate moves and you've likely made another one with your purchase in No FL. If I were in my 30s (I'm 46) I would be more inclined to take the money and run. Or if I were dissatisfied with where I was living (like newguy) I'd bolt. But I'm kinda close to ER and I really like it here so I'm leaning toward staying put.

By the way, if you have some money to invest you could consider buying another house or fourplex (perhaps with a partner) in your area. Could be a good investment.

I welcome any other input, opinions, etc. Thanks again!

LEX 01-08-2006 01:41 PM

Re: cash out of Calif SFR?
 
I would figure out how to stay in SD. 8)

Home Equity at the high end of the range ( throphy homes La Jolla and Rancho Santa Fe) will most likely go down but you can handle it. Look at it this way, you can open your windows in winter for the 70 degree breeze rather than pay 200/month gas bills. Outside of the house costs its not so expensive to live in SD. Shop at Costco and drive a Mazda or Toyota.

I would check the craigslist for SD real property adds. There are a lot o good deals FSBO w/o brokers (but plenty of crooks, do your homework before hand!). IMHO by middle of next year you will see the flippers dumping their high leverage no money down 'investments' and some may be worth picking up, especially in the edges of North County and out east. Its all good!

califdreamer 01-08-2006 02:07 PM

Re: cash out of Calif SFR?
 
Thanks for the post LEX. You make some good points about the SD housing dilemma. Yes, my property value will go down. But so will everyone else's around here. And if you want to stay here that's what matters. I agree with you it will be the La Jolla high end stuff that will get socked more than my tract home on the cul de sac in the burbs. There will also be deals to be found in 2007 and 2008 and maybe beyond as the troubled loans come home to roost. I haven't looked at craigslist that much but sounds interesting for FSBOs. Maybe my best strategy is to stay put and keep an eye out over next several years for distressed seller opportunities.

Yesterday I went golfing with some friends and it was just an absolutely beautiful sunny day. We had drinks and bbq on my friend's patio and watched the sun set over the Pacific. And we talked about what to do with home equity. He had contacted an agent in San Antonio (I didn't tell him about the fire ants and scorpions) and said he and his wife were looking into a possible move. We also talked about what a beautiful day it had been golfing and sitting outside. We wondered if we'd end up regretting it if we did move.

LEX 01-08-2006 06:39 PM

Re: cash out of Calif SFR?
 
Dreamer:

I lived in Texas when I was younger ( I now live in Arizona) and there are lots of nice things about Texas, especially the lack of a state income tax.* However, having spent a significant time each summer in SD (Vista) I prefer the climate and abience of SD county. Tastes and preferences vary, of course.

There are always Real estate deals no matter where you live.* People divorce, go broke, and leave estates and though there are pro's that always work these listings you have a chance to find them, especially if you net work with your friends.* Yes, its easy to move to Texas as well as other places and ride your equity into the sunset.* That is a very valid decision.* However, I bought into North County for an investment/summer getaway and do not regret it at all.* It helps me save on my annual utilities once the temp here in Phoenix gets above 100 in April enough to offsett some of the costs, and I expect that a one bedroom flat will hold its value. 8)




califdreamer 01-09-2006 11:49 PM

Re: cash out of Calif SFR?
 
Tomorrow evening (Tuesday) I'm going to see Robert Campbell speak in Los Angeles. He writes an newsletter about the San Diego and Southern California real estate markets. He has an interesting model for predicting rates of appreciation and the best time to get in and out of RE markets. I know he is extremely bearish on the RE mkt here. I've heard he is forecasting a mind blowing 40% drop in housing values in SD. Even though I think he's smart to look at lots of data and all that I think he's going too far with that prediction. I think we're in for something like a 15-20% drop. I know he likes the idea of investing in undervalued mkts like those in Texas. Should be very informative and thought provoking. I believe his website is realestatetiming.com if anyone's interested.

Having said all that, even though I could stand to save equity by bailing out of the house and renting I would sure hate to go thru the moving drill if housing prices didn't drop enough to offset costs of moving. I figure the breakeven point for coming out ahead would be a 10% decline in market value but the psychic costs would tag on another 10%. I figure it would be about a wash so might as well stay put. Unless robert scares the s**t out of me tomorrow night.




LEX 01-10-2006 12:07 AM

Re: cash out of Calif SFR?
 
You might find this article by Scott Burns about your home as an investment a good read, given what you are thinking about these days:

https://www.uexpress.com/scottburns/

8)

califdreamer 01-10-2006 12:32 AM

Re: cash out of Calif SFR?
 
Thanks LEX... good article. Maybe it's best to look at the very long term and enjoy the shelter benefits author talks about. I'll report on Campbell's presentation tomorrow PM or Wednesday.


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