Less than 20% fall in home prices will destroy the banking system?

"I have a buddy out in San Diego and he pays $3500 rent on a house that is appraised at 350k"

At current rates, 350K fixed loan = $2042/month


Your buddy is getting seriously ass raped.

That home would rent for $1000 in san diego, probably less, since it would be a rat shack in the ghetto

 

Or you could just have a special appraiser, who jacks your appraisal up 20% when you buy it so that you don't have to pay pmi.


I was using 2% for taxes and 1 for insurance another .5 or so for pmi. That 9800 is based on what property value ?

 

I checked zillow in his area code, zoomed straight in and there are plenty of 600K places. His place is around 1200 square feet.

http://www.zillow.com/search/Search.htm?addrstrthood=&citystatezip=92104

 

You are so full of crap, you can barely rent a 2 bedroom apartment out there in the ghetto for 1000, townhomes are running 1500-2000 and houses in the dump start in the high teens.

 

so if prices pull back......will your taxes decrease ?

 

So you are telling me 500 a sq ft is norm over there ?

 

We don't get the bubbles like the west and east do. Hell you can build a nice house loaded out for $80 sq ft here and that is using a GC.

 

The so-called bubble in the west and east will have residual effects where you are too.

 

You just proved you dont know a damn thing about the san diego market. You can get a luxury apartment in carmel valley where the best schools in san diego are, in the high teens.

http://sandiego.craigslist.org/apa/302788919.html

You should stick to talking about areas you know about. I live here.

 

That is crazy, what is so special about that neighborhood ? Those houses look like dumps for 300-400k.