Mira Mesa, Scripps Ranch, Ranch Penasquitas, Rancho Bernardo

Tips and Deals Forums Buying Your Home Buying a Home in San Diego Mira Mesa, Scripps Ranch, Ranch Penasquitas, Rancho Bernardo

This topic contains 6 replies, has 2 voices, and was last updated by  Anonymous 8 years, 2 months ago.

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  • #209252


    I’m looking to buy a detached home in the above-listed area (basically, within a couple of miles of where the 15 and the 56 cross). *Preferably a relatively new home, in the high-$400K to low-$500K range.


    I’ve been watching prices there go down slowly. *Recently, I noticed something interesting: *In my price range, there are actually VERY few properties available. *Where did they all go? *Are they all locked away in “shadow inventory”?


    Some properties came on the market at the start of 2011, and it looks like it was not a happy experience for the sellers and their banks (many of them were short sales), because most of them went through several rounds of price cuts before either selling or being delisted. *So did that experience scare off other would-be sellers?


    I don’t think my price range is unrealistic. *At various times in the last couple of years there were lots of homes there in that price range. *Now, that market has come to a virtual stop. *What’s going on? *Everyone hunkered down?


    Anyone know any online resources where I can find the size of the shadow inventory in that area? *I’d be much obliged.



  • #442058


    Yes, but it will be taxable income, so you’ll pay taxes on your 2008 1040.

  • #442059


    Yes you definitely could. But of course you will have to pay taxes on it. Isn’t it sad to see that we are cashing in our hard earned stashed money to pay off debt due to this bad economy. It is ridiculous. I hate it. Good luck and I guess we have to do what we have to do.

  • #442060


    Well, if you take into consideration that the cost of servicing the debt is higher, which usually is the case, you will be saving some money there. But if you have to sacrifice a part of the fresh capital to taxes, this amount has to be deduced from the gained savings.

    If you also lose tax deduction of the interest paid, this has to be factored is as well.

    It might well be that the end result becomes negative because of the accrued fiscal charge, in which case it will be better to hold on to the bond and continue to service the debt.

  • #442061


    If your debt has an interest rate higher than 2 or 4%, it might be a good idea to cash them in to get the debt paid off. It would save you money. If your debt is no-interest and you plan to pay it off in full before interest starts, then keep the bonds.

  • #442062


    Something to consider…

    If you do use these bonds to pay off debt, will that allow you to save?

    If you can pay off some smaller debts and that frees up cash flow for you which will both improve your lifestyle and allow you to save up some money again over time it might make sense. If, however, you use the bonds to pay down a large debt and you are still making the same payments as before; it will not have a large impact on your daily life and you will have less money available in case of an emergency.

    The things everyone else said are all true, but usually when it comes to paying off debt, it makes the most sense to find ways to do it that will either improve your lifestyle, or your peace of mind.

  • #442063



    Cashing in the bonds is certainly a possibility, but there are other options as well.

    There’s a good article at eHow on steps to take to begin tackling your debt. Take a look at it:

    How to Stop Escalating Debt

    You can also look here for tips on earning some extra cash online:

    How to make money on the internet, scam-free

    Lastly, here’s an interesting alternative to conventional lending…getting a “social networking” loan from Virgin Money (from the same folks who run Virgin Airlines):

    Social Loans from Virgin Money

    Hope these help.

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