I am a fortunate San Diego homeowner
August 30th, 2008 Categories: Real Estate News, San Diego county Real Estate News, Triathlon Club of San Diego Race Reports, What to do in San Diego
SAN DIEGO– Lately I have been feeling a bit down. Those that know me pretty well would say I am pretty optimistic guy and am there to help lift others out of their funk. Lately, I have been feeling a bit down.
See, I am a people person. An extrovert that feels most alive when around other sharing good times. This is why I love the Triathlon Club of San Diego so much. Last night for the first time in many years I attended the Friday night La Jolla Cove swim and absolutely had a BLAST!!! See I stubbornly did not want to deal with the hassle of I-5 south and La Jolla parking on a summer’s Friday evening. What a dope as I have been missing a great time. But that’s not why I have been feeling down.
I have been feeling down because I have not been working with as many clients. And while I would like to say these feelings are not at all from financial perspective, I REALLY miss working with some of the best clients most REALTORs will never be fortunate enough to have. The challenge of the financing. The hunt for the best home. The ups and downs of the negotiations and then finally the celebration of the ‘new home’. That is what I really miss. But yes, I will concede, a dwindling bank account does wreak havoc on one’s feeling of self worth and sense of security.
But this morning I woke up and I feel fortunate. See I have a home, only one, that is mine. I can do with it whatever I please and we gutted the place. The only thing in the home from when it was purchased is the framing, most of the drywall, some flooring and that’s about it. It did not need gutting, but I did. I love working with my hands and now own everything from a drywall scroll, to help install can lighting, to a table saw, for, well, 
all kinds of cool things. The best part, they are all used. However, despite this influx of both dollars and sweat equity, sometimes blood too, my home has lost about 28% of its value from the peak and I am at about break even on the purchase price.
But today I feel fortunate.
I am a 1099 independent contractor so the loan I used to buy our home was a stated income loan. Today, that loan is gone. It is now an excuse, a cause if you will, for the devastation to the housing market from the over exuberance of the closing Greenspan years. Because I write off everything I LEGALLY can as a businessman, my tax records would not support me if I tried to buy my home today using the resurrected FHA loan. Someone in my position would need roughly $75,000 to $110,000 to purchase in the $300,000 to $475,000 price range. Buying in that same price range for someone able to use FHA would require approximately $12,000 to $16,000, so there is hope for many!!!
The San Diego Union Tribune last Sunday had an article in their home section titled, “Raising the Bar”. It is a well written article about the changes in the mortgage market, but it has a troubling close.
“Tighter lending practices are making loans less likely to fail, but they’re also reducing the ability of the first time buyers to enter the market. That’s not necessarily a bad thing , said Jay Brinkman, an economist for the Mortgage Bankers Association.”– San Diego Union Tribune, 8/24/2008
I worked and am working with first home buyers and I find this statement disconcerting. I like to hear the economist representing the mortgage trace association saying,
“We are looking at ways to protect not only the housing market, but too also provide opportunities to the first time home buyer. We have always considered home ownership a huge part of the American dream and areas where home ownership is high, we see a strong sense of community.”– Brian Long, wishful thinking, 8/30/2008
But I feel fortunate today.
There is a great op-ed piece from the Los Angeles Times that looks at the positive side of the 2004–2007 home purchase and while I bought just prior to that it was a shot of sunshine. To anyone out there considering handing over the keys with the outlook that your home is an investment strategy that no longer ‘makes sense’, I would recommend printing this article and carrying it in your wallet. See you need to accept the fact that YOU ARE going to be buying home. Currently you just have the choice of whether it is yours or the landlords.
“Those of us who purchased nonspeculative property from 2004 to 2007 for the gratuitously self-indulgent purposes of raising a family and investing in our neighborhoods will ultimately have the last laugh.”– Los Anglese Times, 8/17/2008
So I feel fortunate today. (and I sure do hope this affirmation thing works!!!)
If I can help you realize your American dream or if, unfortunately, you need help do to financial hardship, call me at 760–415–3329 or email me.
well I feel fortunate as well beinga homeowner in Bay park, I bought 3 years ago at what I call the beginiing of the downslide. But I love my home and location, relatively close to surf compared to poway and such, so I am here to stay, maybe for the next 10 years at least as I just found out I am to have a baby in 7 months.
cheers,
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