A Peek Into the California Real Estate Bubble

in LeoFinance2 months ago (edited)

In July of 2019 I bought a 1225 square foot, 2 bedroom, 2 bathroom condo in San Diego with access to a pool for $334,000 USD.

In the United States, when you own a condominium, you buy the space inside the address. Everything outside, from your balcony, to your stairs, to the grounds to the parking spot, belongs to the homeowners association.

The Price for the homeowners association was $250 per month, which included maintenance of the complex, basic insurance, use of the facilities, and trash service.

Today the sale of my condo finalized and I sold it for $400,000 USD

I had listed it for 380,000$. The new owner STILL has to pay $250 per month to the Homeowners association.

Now that my condo is sold, it is time for me to purchase a stand alone home for me and my children.

I am looking for a 5 bedroom home with a comfortable living area, yard, laundry, garage etc. A basic home.

Simple Listed Real Estate Postcard.jpg

There are none available in my price range as I would need to finance $800,000 USD

I decided to go smaller.

I found a four bedroom home which I loved, but my husband didn't. It is a bit awkward of a layout, if you are having a party of some sort, but for me and my young family it was the perfect space.

The home was listed for $560,000 USD.

I bid $620,000 USD

I wrote in the bid that I would pay for my own Home Warranty, that I would pay for my own inspections, and that basically, I was asking nothing of the current owner, except for them to sell me their house at $60,000 above asking price.

They said no, thank you.

At least I know my bid was good enough to warrant a response.

Simple Real Estate Listing Presentation.jpg

Why would I make such a decision? Why not just stay in my two bedroom condo?

Because I live in the United States, California, in a Condo with a Homeowners association, and after the purchase of my home, I had another child.

The maximum amount of people who can live in this place is five, which is fine most of the time since my husband lives in a separate household. However, when he comes and visits, it gets uncomfortable to know that you have too many people living in a home and run the risk of getting reported for too many people living in one place.

It would be rare for this to happen giving my neighborhood (lots of people live in this complex) but I would rather not have to worry about Big Brother looking down on me and starting to take notes

What is the real estate market like where you live?

Orange Real Estate Flowchart.jpg

Posted Using LeoFinance Beta

Sort:  

Fuck me, you're talking astronomical numbers, even worse when I convert it into our local currency, its like multi-millionaire status a few times over lol. Cali is going for japanification, there was a time I remember hearing that one part of Japan was in a real estate bubble and this one piece of land with a palace on it was worth more than the entire state of california

I wonder how long this keeps going up surly theres only so many people with a salary in the ENTIRE world that would qualify for home finance at those prices, surly demand dries up and prices level off

Unless you guys do take more of the Japan play book and issue 100 year mortgages lol

Where my husband lives a three bedroom house is going for 1.6 million, there is only one available.

We waited there for 8 years for the market to “slow down.” It didn’t.

When the bubble does finally happen, if we get put upside down, there are programs to short sell our homes to ourselves.

It’s really more a paperwork game than real money.

Posted Using LeoFinance Beta

Interesting will have to read up about that short selling deal, but thats also essentially defaulting on the debt, which could be a big problem for banks

So this side homes in the 1.8 mill range and up have actually started to lose value, especially ones in the higher ends so 2-4 million have been cut in half as demand dries up (most owned by foreigners) while the normal market so the 300k and down has still kept steady and rising since there's always a new sucker born every minute.

Japanification was back in the early 80s when they had generational mortgages (paid off by grand and great grand children) today japan is quite cheap.

Until recently I lived inside the Yamanote Line in Tokyo - that means deep downtown - If it was NYC it would be the center of Manhatten. My one bed loft was (and still is) about Y95k which is about $600-650 per month. Prices (of everything haven't gone up in Japan in over 20 years - even subway/train fares are the same.

Who would prefer to rent if he have the money to buy? Of course no one in Nigeria so it's better to buy and if you would need to have more room like you do, sell and buy the one suitable for you but here in Nigeria, nothing concern anyone about the number of people living in a house

Wow, now I know why you responsiveness has decreased to some extent on Discord - that are serious decisions, a lot of work and things to take into consideration. Given the numbers you hopefully have to deal not too often with this kind of financial decisions in a lifetime. Here in Germany there are also some urban areas where the prices for (hard to get) houses are within the range you described, but if you go to the countryside you can still buy for a fraction of that. I wonder if during the next years an exodus from city to landscape will equalize prices, but this process has (if it will cone) just started slowly.

I have grew up in the city I currently live in. I lived in a different city for 8 years, but because my extended family is here I visited offen (2-3 times per year).

There has been a massive exodus time and time over, we keep building, we keep going higher - and the prices keep going up.

I have been stuck on the market - haven’t even gotten excited over 30,000 Bitcoin yet.

I’ll be staying at my husbands house until I buy a new one and will have looooots of time in the early new year.

Thanks for commenting.

Posted Using LeoFinance Beta

I hope you get the house of your dreams soon. Maybe our crypto-activities will increase your financial-possibilities to a relevant amount (let LEO moon 😊)

Lets get in contact than early in 2021 to boost the spinvest-leo account. It is much more fun to do that as a team...

The maximum amount of people who can live in this place is five, which is fine most of the time since my husband lives in a separate household. However, when he comes and visits, it gets uncomfortable to know that you have too many people living in a home and run the risk of getting reported for too many people living in one place.

What would be the consequences for being reported on?

Posted Using LeoFinance Beta

It depends on who reports what to who.

The rules state that properties can be inhabited by 2 people per room, plus one extra person. I'm not sure if it's a law or guideline or exactly what.

I do know that if your neighbors complain to your HOA - who are not lawmakers, but rule enforcers, that there are too many people in your unit, you can face fines or even eviction - even if you own the property.

As far as children are concerned, too many people in the home make your children technically homeless - and if a spiteful neighbor calls Child Protection Services or such - you may have problems that way.

From my personal experience, this is very rare. Unless you are a complete nuisance people leave you alone. I however didn't want to take my chances.

What is the real estate market like where you live?

Like this:

https://www.etuovi.com/myytavat-asunnot/lahti?haku=M1587182328

The population of the city is 120,000. It's about 60 to 70 minutes by car or 50 minutes by train from central Helsinki, which is the center of Helsinki Urban Area with a total population of about 1.4 million. The median monthly salary of full-time employees here is €3140 or $3740.

The market is not overheated in this particular locality by any means.

This is Helsinki:

https://www.etuovi.com/myytavat-asunnot/helsinki?haku=M1587183957

Posted Using LeoFinance Beta

Your post has been voted as a part of Encouragement program. Keep up the good work!
Try https://ecency.com and Earn Points in every action (being online, posting, commenting, reblog, vote and more).
Boost your earnings, double reward, double fun! 😉

Support Ecency, in our mission:
Ecency: https://ecency.com/proposals/141
Hivesigner: Vote for Proposal

I nearly wet myself when I returned from Japan to London after 12 years. I used to live in the center of London but there was no way that I could even afford a cardboard box in a doorway. I did a scout around for a cheap city and found Liverpool. For the prices you are looking at you could get something in the dead center in historic and rather beautiful building. Not as sunny as San Diego but the beaches are less crowded and you can get everywhere on foot as the center is so compact. ;)

Congratulations @metzli! You have completed the following achievement on the Hive blockchain and have been rewarded with new badge(s) :

You distributed more than 15000 upvotes. Your next target is to reach 16000 upvotes.

You can view your badges on your board and compare yourself to others in the Ranking
If you no longer want to receive notifications, reply to this comment with the word STOP

Do not miss the last post from @hivebuzz:

Feedback from the January 1st Hive Power Up Day
Happy New Year - Project Activity Update