Forclosure In The Neighborhood
Since I’ve been a homowner, landlord and tenant in my neighborhood for the past 6 years, I follow the real estate market pretty closely. I recently noticed that there was a condo on Realtor.com listed at $264,900. Since I bought my 2nd condo in 2003 for $270,000, I was curious to find out more info on it.
![[Picture of a foreclosed condo for sale in San Diego]](http://www.livingoffdividends.com/wp-content/uploads/2008/02/propertyx.jpg)
I emailed my friend who’s an agent and she sent me the list details. Apparently its bank-owned. The previous owners bought in 2001 for $170,000 and refinanced it last year for $260,000. The mortgage company has it listed at $265k to break-even on it.
These condos were sold at a peak price of $375,000. I sold both of mine on either sides of the peak at around $350,000 each. A sale price of $265,000 represents a 30% drop from the peak. I’d be amazed if it sold at the asking price.
If I was in a hurry to buy property, I’d be tempted to make a low-ball offer. When I bought my condo in 2001 and again in 2003, there was usually only 1 for sale at a time and usually several buyers. Right now, its the opposite, several for sale and not a single buyer!
Even though the pricing looks good, I expect things to get considerably worse.
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February 27th, 2008 at 10:41 am
It’s pretty strange that I looked at that picture and guessed that you lived in Southern California. Sure enough, I looked at your About page and found out you did.
I recently wrote a post about living off of the difference between a rent payment and a mortgage payment. You can actually retire in 30 years with $3M saved/invested if you rent instead of own and invest the difference here in CA. Take a look: http://www.erica.biz/2008/the-real-american-dream-hint-its-not-owning-a-house/
Keep up the good work!
-Erica