What would you recommend?

[Sir Newf Junior Member Find all posts View Profile Close Sir Newf]

Hi all..Thanks for this forum on California.
I have a question and am looking for feedback/recommendations from folks that live in CA.
We live in PA, but travel often to CA, especially between Laguna and Carlsbad.
We are considering buying a 'recreational' condo in Carlsbad area, for approx $300-$400k, or, we are considering purchasing a couple weeks of Four Seasons Aviara. Neither would be financed, and 4S would be 'resale' of course....We're torn btwn either a condo purchase, or 4S timeshare. The 4S is the type of luxury we enjoy and the condo would be nice, but modest by comparison. Do you think a condo in Carlsbad would be a decent investment in the long run, or keep the $300k cash invested and enjoy 4S timeshare annually? What would you decide? (By the way, we have other properties, not sure I want to add another), (and we know maint fees at 4S are high, not a concern)...Many thanks for any and all input....

[janna0808 Junior Member Find all posts View Profile Close janna0808]

Go for the TS

Personally, I would buy the timeshare weeks at the FS AViara and not hassle with maintaining another property. Just MHO.

[4ARedOctober Super Moderator Find all posts View Profile Close 4ARedOctober]

RE Prices in CA keep dropping. We are looking for investment property like a condo which we can rent. We are waiting for prices to drop more and to find a way to keep positive cash flow to carry the property until it appreciates in value. We would be renting the property full time on year to year leases. Rents are still maintaining their high levels.

Are you thinking of buying and using a couple of weeks a year? What about when you are not there....are you going to do vacation rentals? That takes a lot of work.

It really all depends on what you are planning to do with it before anyone can give you any advice.

[4ARedOctober Super Moderator Find all posts View Profile Close 4ARedOctober]

Real estate returns: Lower rates and prices cause excitement - February 2008 Carlsbad Business Journal - Carlsbad Chamber of Commerce

Real estate returns: Lower rates and prices cause excitement

By Tyson Lund with the Lund Team
Feb 01, 2008


As expected, Carlsbad’s winter market created opportunity for those few buyers willing to purchase during the traditionally slower winter selling season.

There were only 136 homes sold between October and December of 2007 with an average asking price of $835,000 and an average sale price of $787,000. This is a notable decrease in sales when compared to the same period in 2006 when 206 detached homes sold for an average list price of $880,000 and a sold price of $835,000.

With fewer buyers in the market, sellers dropped their asking prices to help make their homes sell. The winter buyers celebrated their good fortune, as they were able to secure exceptional prices.


Short sales

Foreclosure and short sale homes are pushing prices downward, as they are often priced below recent sales by as much as 10 percent. A short sale occurs when an owner attempts to sell their property for less than they owe and the bank agrees to accept less than full payment of the loan. Banks are agreeing to low-priced short sales to avoid the costly foreclosure process and any future market declines. Short sales have recently become more popular with those unable to stay in their homes, primarily because of the banks’ willingness to consider them. Many lending institutions are working on fast-track programs that speed up the process of acceptance of a short sale from four months to 45 days. With the Dec. 20 passing of the Mortgage Forgiveness Debt Relief Act of 2007, short sellers are no longer taxed on the difference between what is owed and the actual sale price as income. Because a short sale will not ruin their credit like a foreclosure, some say the elimination of the tax penalties may encourage other homeowners to attempt a short sale, as opposed to staying in their homes.


Mortgage rates

As of Jan. 17, mortgage rates for loans at or below $417,000 are at their lowest levels in several years. The 30-year fixed mortgage dropped to as low as 5.35 percent and the 15-year fixed rate was near a low 5.1 percent. Conforming loan rates have been on a downward trend for the last half of 2007, coming down from the June 2007 high of 6.75 percent for a 30-year fixed rate loan. For the last three years, rates dropped during the last three months of the year, which has helped encourage buyers to purchase during a traditionally slower time of the year for real estate. The current drop in mortgage rates is important and exciting. The payment between a mortgage rate of 6.65 percent (June of 2007) for a $417,000 home and a 5.375 percent (January of 2008) loan for a $515,000 home is the same. The lower interest rates are making expensive homes more affordable, and should help slow any price declines. The lower, fixed rates also will allow homeowners with adjustable-rate mortgages the ability to refinance into a low 30-year mortgage, which should bring stability to the market over the next year.


Carlsbad town homes and condominiums

Throughout 2007, it looked as though attached homes had hit a pricing equilibrium. Town homes that sold for as high as $550,000 retreated to $450,000 in 2006, but held strong throughout nine months during 2007. During the slower winter selling period in 2007, attached properties succumbed to buyer demands as the average sale price for an attached home dipped to $435,000. Carlsbad’s attached homes are an attractive option for first-time homebuyers looking for something more affordable. Carlsbad has several excellent attached communities where you can find a three bedroom, more than 1,200-square-foot home for as little as $330,000. At the newer 5.375 percent rates for a 30-year fixed mortgage, a mortgage payment for such a home is less than $1,500 a month. With the new lower prices and the currently low, conforming mortgage rates, attached homes are expected to sell well throughout this year.


Selling a home in Carlsbad

Those selling their home in the current market can expect it to be listed for sale for at least three months, with an additional 45 days for escrow. In today’s market, buyers are making offers below asking price, as the overall market sentiment is expecting further price declines over 2008. Sellers should expect this and be prepared to make a fair deal. Also, sellers should make counteroffers with caution. Buyers are skittish in the current market and want to feel as though they have the upper hand at the negotiating table. If a counteroffer comes back too high, the buyer will more likely cool-off and decide to wait to purchase. Sellers also are advised to sell their home before deciding to purchase. Online and appraised property valuation continues to be inaccurate by as much as 10 percent in the current market.

[Bill4728 Super Moderator Find all posts View Profile Close Bill4728]

I own several weeks worth of TS in the SoCal area (at Riviera Shores in Dana Point) And the resort there is OK. But we have used it to trade into Marriott's Newport Coast(NCV) 5 times in the past 3 years. We love NCV but untill we can't trade in we're not buying.

BUT, if I had to choose between NCV and FSA for a purchase I'd choose NCV. It isn't as nice as FSA but the MF are 40% of FSA and it is so much closer to the ocean. Over 1/2 of the units at NCV have killer ocean views which we find much more appealing then the added space and luxury of FSA.

Just my 2 cents.