Every time this issue comes up in a thread, I post the link above.
Doesn’t that help prove my theory?
That Irvine will lag in price drops because of foreign buyers?
I think a big difference now than the past bubble is that loans are much harder to qualify for… so it favors heavy cash buyers more than it did in the past. I remember back in the early 90s during the last decline, 0-5% down loans were much easier to get. Nowadays, even 20% loans are harder.
So the areas that have a higher concentration of cash buyers* would be slower to drop in pricing because fundamentals get blurred. How do you explain rental parity to someone who doesn’t care about renting and income-to-debt ratios to someone who doesn’t need to document their income?
*Again, I’m not saying this has increased in percentage… just saying the percentage is higher than other areas.
Every time this issue comes up in a thread, I post the link above.
Doesn’t that help prove my theory?
That Irvine will lag in price drops because of foreign buyers?
I think a big difference now than the past bubble is that loans are much harder to qualify for… so it favors heavy cash buyers more than it did in the past. I remember back in the early 90s during the last decline, 0-5% down loans were much easier to get. Nowadays, even 20% loans are harder.
So the areas that have a higher concentration of cash buyers* would be slower to drop in pricing because fundamentals get blurred. How do you explain rental parity to someone who doesn’t care about renting and income-to-debt ratios to someone who doesn’t need to document their income?
*Again, I’m not saying this has increased in percentage… just saying the percentage is higher than other areas.
It might have a slight impact on the timing of the drop, but there’s no doubt that the drop will be the same with or without foreign investors with large downpayments.
The idea is that price will get back to fundamentals.
If one can qualify for the DTI limits, why not go max conforming FHA with 3.5% down, levered, and keep the cash for other investment opportunities? Won’t the buyer pool be so thin in a year or two that sellers will salivate for any hint of an offer from a fully qualified buyer?
You may want to ask this of a few hundred thousand folks who are losing their homes right now. Their “investment opportunities” may not have worked out exactly as they has planned.
I seriously doubt those people qualified full doc fully amortized with low DTI. I always learned the best way to invest in RE was OPM. If I have outstading credit and high enough documented income, why not treat a residential transaction similar to how a developer with a strong balance sheet would execute their strategy, with as little of their own equity as possible? I plan to keep the loan to less than 3x income with a 30 yr fixed fully amortized loan. With the crash gaining major steam up here in SV, my target class of property in my target town has fallen to within $100K of my target loan amount. I’m hoping the next wave of resets breaks the dam and brings it home to papa.
If I assume stable employment and everyone is happy with the size of house, does anyone see risks beyond the ability to find investments generating more than paying off the loan? Thanks.
If the buyer fall out of escrow, it will cost the seller a few grand per month due to the way house price is going. So a buyer will actually take a lower or comparable offer if the portion of the cash payment is higher.
At 2% per month of price declines, it will cost them $10,000 for a one month delay on a $500k house.
In Malibu, prices have been dropping $30-50k a month on homes from $1-2 million. Yes, in just 3 years homes in Malibu will be free.
Paying more than you have to for anything with interest at near 0 is absurd. You won’t even get a write off. If you’re that rich, why are you buying inland and not on the water???
Deflation = pay cash now, inflation = load up on debt now. Some believe that a fairly long deflationary cycle may be unavoidable. Some believe otherwise.
Watch out Irvine, we coming to take over your land. We’ve got whole lotta cash. 100% Down ... NO PROBLEM!
The Shanghai Mafia - COMING SOON TO IRVINE NEAR YOU. By 2018, 75% of all of Irvine will be Chinese. Be scared.. Be Very Scared.
OMG! This picture is just SO Wrong. Are those 2 karat diamond teeth?
Shanghai? LOL you wish! i dont think so… more like Seoul mafia… You need to get your facts straight, before you speak.. you never know who is watching. that guy pictured is a korean american custom jeweler for the hip hop industry.
I read your other post about mr kim and mr wu.. you sound like you have a problem with koreans.. or maybe you are a jealous hater trash talking from the sidelines.
irvine has a large chinese community. so what? why should anyone be scared? you sound like a shmuck.. now be quite, you are giving the rest of the asian community a bad rep.
Watch out Irvine, we coming to take over your land. We’ve got whole lotta cash. 100% Down ... NO PROBLEM!
The Shanghai Mafia - COMING SOON TO IRVINE NEAR YOU. By 2018, 75% of all of Irvine will be Chinese. Be scared.. Be Very Scared.
OMG! This picture is just SO Wrong. Are those 2 karat diamond teeth?
Shanghai? LOL you wish! i dont think so… more like Seoul mafia… You need to get your facts straight, before you speak.. you never know who is watching. that guy pictured is a korean american custom jeweler for the hip hop industry.
I read your other post about mr kim and mr wu.. you sound like you have a problem with koreans.. or maybe you are a jealous hater trash talking from the sidelines.
irvine has a large chinese community. so what? why should anyone be scared? you sound like a shmuck.. now be quite, you are giving the rest of the asian community a bad rep.
Yeah, I’ve got problems with Koreans. Their breath reeks of Kim Chee… and I can’t stand it… What are you going to do about it?
Are you asking for war with my Shanghai mafia with your small Seoul mafia. My guys out number your guys by 3 to 1 here in Irvine. You don’t stand a chance.
Yeah, I’ve got problems with Koreans. Their breath reeks of Kim Chee… and I can’t stand it… What are you going to do about it?
Are you asking for war with my Shanghai mafia with your small Seoul mafia. My guys out number your guys by 3 to 1 here in Irvine. You don’t stand a chance.
Easy Panda. Anyone who refers to the gangs of Koreans as the Seoul Mafia, and the Chinese gangs as the Shanghai Mafia can’t be taken seriously. You might be afraid of the Korean Killers, or the Triads, but who ever these gangs are, are nothing to be afraid of if you know the real deal. You would also know that the Korean Killers and the Triads work together. Anyone who goes against the grain would be quickly squashed out, so to speak. So put your gat IHB gat down, and go back to dreaming of Irvine. Chill… Winston…
Plus, you know it ain’t the kim chee that is the problem, it is oma’s bulgogi…
Fumbling, I don’t remember because my father-in-law took me to several restaurants there. Fullerton Korean restaurants taste better than authentic Korean food in Seoul. He tells me that the restaurants in Garden Grove is not very good. I personally witnessed that the Korean restaurants in Irvine are terrible. I will PM you next time i speak with him.
Thanks, one of the main reasons I moved to Irvine was to be closer to good authentic Asian food (Chinese, Korean, Vietnamese and Japanese) and I thought Garden Grove was the place for Korean food, but if Fullerton is the place to go to for better-than-Korea Korean food, then I’m there!
Thanks, one of the main reasons I moved to Irvine was to be closer to good authentic Asian food (Chinese, Korean, Vietnamese and Japanese) and I thought Garden Grove was the place for Korean food, but if Fullerton is the place to go to for better-than-Korea Korean food, then I’m there!
I just want to be around the cute asian girls…maybe I should move around UCI. haha
Thanks, one of the main reasons I moved to Irvine was to be closer to good authentic Asian food (Chinese, Korean, Vietnamese and Japanese) and I thought Garden Grove was the place for Korean food, but if Fullerton is the place to go to for better-than-Korea Korean food, then I’m there!
I just want to be around the cute asian girls…maybe I should move around UCI. haha
Just go to places that sell drinks with tapioca in it.
Thanks, one of the main reasons I moved to Irvine was to be closer to good authentic Asian food (Chinese, Korean, Vietnamese and Japanese) and I thought Garden Grove was the place for Korean food, but if Fullerton is the place to go to for better-than-Korea Korean food, then I’m there!
I just want to be around the cute asian girls…maybe I should move around UCI. haha
Having lived in Westpark for 3 years USC, I find that the UCI girls make their way across the 405 to shop in Westpark quite a bit. Spend a little time at Ralph’s or Red Mango at Harvard and Main, or at the Target at Crossroads center—- you’ll see what I mean. We are pulling out of Westpark for West Irvine in December….after spending a little time what will be my “new” Target up at the Marketplace, I must admit the “quality” was not nearly as good as it is with the UCI crowd from Westpark. :(
Thanks, one of the main reasons I moved to Irvine was to be closer to good authentic Asian food (Chinese, Korean, Vietnamese and Japanese) and I thought Garden Grove was the place for Korean food, but if Fullerton is the place to go to for better-than-Korea Korean food, then I’m there!
I just want to be around the cute asian girls…maybe I should move around UCI. haha
Having lived in Westpark for 3 years USC, I find that the UCI girls make their way across the 405 to shop in Westpark quite a bit. Spend a little time at Ralph’s or Red Mango at Harvard and Main, or at the Target at Crossroads center—- you’ll see what I mean. We are pulling out of Westpark for West Irvine in December….after spending a little time what will be my “new” Target up at the Marketplace, I must admit the “quality” was not nearly as good as it is with the UCI crowd from Westpark. :(
Trojan,
When you are headed for Red Mango and Target off of Harvard and Main, Make sure you drive up in a nice BMW (preferably in a 3 coupe, 5 or 7 series). Driving up in a Hyundai Genesis or an Acura TSX is not going to cut it with the cute asian girls of UCI. I don’t blame you for going after cute asian girls. Once you are married to one, they sure know how to take care of their men.
Panda,
I don’t know, i’m doing my Phd at UCI and alot of the girls take notice that I drive a nicer car. The few that I have told about real estate are VERY interested, reguardless if I have a wife or not (which I find funny and disturbing…).
Anyways good luck
-bix
To be honest with you guys, women don’t know the difference between a 3, 5, or 7 series BMW versus any other car. Hot cars are only noticed by other guys. Bix, I think those ladies are interested in you for who you are, not what you drive. They like you because you’re savvy and a personable guy. I’ll bet you have a good sense of humor in person too. What men think attracts women and what actually draws their attention are usually very different things (the same goes for what women presume men like.)
Thanks, one of the main reasons I moved to Irvine was to be closer to good authentic Asian food (Chinese, Korean, Vietnamese and Japanese) and I thought Garden Grove was the place for Korean food, but if Fullerton is the place to go to for better-than-Korea Korean food, then I’m there!
I just want to be around the cute asian girls…maybe I should move around UCI. haha
Having lived in Westpark for 3 years USC, I find that the UCI girls make their way across the 405 to shop in Westpark quite a bit. Spend a little time at Ralph’s or Red Mango at Harvard and Main, or at the Target at Crossroads center—- you’ll see what I mean. We are pulling out of Westpark for West Irvine in December….after spending a little time what will be my “new” Target up at the Marketplace, I must admit the “quality” was not nearly as good as it is with the UCI crowd from Westpark. :(
Trojan,
When you are headed for Red Mango and Target off of Harvard and Main, Make sure you drive up in a nice BMW (preferably in a 3 coupe, 5 or 7 series). Driving up in a Hyundai Genesis or an Acura TSX is not going to cut it with the cute asian girls of UCI. I don’t blame you for going after cute asian girls. Once you are married to one, they sure know how to take care of their men.
To be honest with you guys, women don’t know the difference between a 3, 5, or 7 series BMW versus any other car. Hot cars are only noticed by other guys. Bix, I think those ladies are interested in you for who you are, not what you drive. They like you because you’re savvy and a personable guy. I’ll bet you have a good sense of humor in person too. What men think attracts women and what actually draws their attention are usually very different things (the same goes for what women presume men like.)
Very true, as long as the guy isn’t homely looking and takes decent care of himself he has a chance with most women. The personality and confidence are key and it doesn’t hurt to be doing well for yourself as woman do look for providers.
What men think attracts women and what actually draws their attention are usually very different things (the same goes for what women presume men like.)
I’d bet that women know more about what men like than vice versa.
Because let’s face it… it doesn’t take much to draw a guy’s attention.
To be honest with you guys, women don’t know the difference between a 3, 5, or 7 series BMW versus any other car. Hot cars are only noticed by other guys. Bix, I think those ladies are interested in you for who you are, not what you drive. They like you because you’re savvy and a personable guy. I’ll bet you have a good sense of humor in person too. What men think attracts women and what actually draws their attention are usually very different things (the same goes for what women presume men like.)
Very true, as long as the guy isn’t homely looking and takes decent care of himself he has a chance with most women. The personality and confidence are key and it doesn’t hurt to be doing well for yourself as woman do look for providers.
I think that is an male way of looking at it. You are right that it helps to take care of yourself and not look homely (or is it homeless? LOL) But, ok, I’m going to be REALLY honest. In my opinion, a hot car can also draw negative attention from us women. There are some women who will assume the guy’s ego is about as grandiose as the car he’s driving and that is an instant turn-off. Remember, there is a fine line between being confident and coming off as cocky. Some will even assume they are over-compensating for something. (Present company excluded, of course!) I think the point is women are not as concerned with the superficial aspects of a person as men are. Again, these cars carry FAR more weight with other men than women. You don’t commonly see car pin-ups with men sprawled across the hood. Granted, some people are more shallow than others and you’ll find that in both gender. These cars are magnets for only the shallowest of women. If that’s what you’re looking for then that’s what you’ll find. If you want a solid girl, drive a normal car. Just my .02 but I have lived a little.
