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Submitted by SDHopes on August 7, 2013 - 1:40pm

Update #2:

Thanks for all the advice!

We are now in escrow!

So happy to get out of here and back to San Diego where we belong!

Submitted by BoomerAang on August 7, 2013 - 1:55pm.

You can rent out your existing Temecula home while renting a place in North County.

I was debating between Temecula and North County as well back in 2009, but ended up getting a townhome in Carlsbad. Loving the fact that work is only a little bit away, but wondering how big of a house I could have had. I have a couple friends in Temecula that are trying to get back to a place nearby in North County as well.

Submitted by SDHopes on August 7, 2013 - 2:11pm.

BoomerAang wrote:
You can rent out your existing Temecula home while renting a place in North County.

I was debating between Temecula and North County as well back in 2009, but ended up getting a townhome in Carlsbad. Loving the fact that work is only a little bit away, but wondering how big of a house I could have had. I have a couple friends in Temecula that are trying to get back to a place nearby in North County as well.

That's good advice and we seriously considered doing that. Unfortunately the going rate for renting out our house is 500 dollars less than our mortgage. So renting an apartment back in San Diego County plus the extra 500 dollars would come to more than what we pay now. So frustrating!

Submitted by FormerSanDiegan on August 7, 2013 - 2:12pm.

SDHopes wrote:
BoomerAang wrote:
You can rent out your existing Temecula home while renting a place in North County.

I was debating between Temecula and North County as well back in 2009, but ended up getting a townhome in Carlsbad. Loving the fact that work is only a little bit away, but wondering how big of a house I could have had. I have a couple friends in Temecula that are trying to get back to a place nearby in North County as well.

That's good advice and we seriously considered doing that. Unfortunately the going rate for rent is 500 dollars less than our mortgage. So renting an apartment back in San Diego County plus the extra 500 dollars would come to more than what we pay now. So frustrating!

I would stick it out and live in it for two full years so that you can sell without paying any capital gains.

If you sell your primary less than two years after buying it, you'll pay capital gains tax (15% federal, plus whatever state income tax bracket you are in ... likely at least 6% if you have the income to afford a 300+K house).

Submitted by BoomerAang on August 7, 2013 - 2:16pm.

Would you be able come out even if you sold your Temecula home with all the commissions, etc.? If projected rent does not cover your mortgage, insurance, property taxes, but selling the place would recoup your original downpayment and pay for all of the commission fees then you probably have your answer.

Submitted by ljinvestor on August 7, 2013 - 2:34pm.

If you have a large gain after fees it might be worth sticking it out until you have lived in it 2yrs as your primary.

If the taxable gain is minimal, why not sell when the market is hot. Life is too short to not enjoy the area your living in.

Submitted by SDHopes on August 9, 2013 - 9:19am.

Thank you for the advice so far!

Submitted by SDHopes on August 7, 2013 - 2:42pm.

ljinvestor wrote:

Life is too short to not enjoy the area your living in.

How true, how true!

Submitted by SDHopes on August 7, 2013 - 2:43pm.

FormerSanDiegan wrote:
SDHopes wrote:
BoomerAang wrote:
You can rent out your existing Temecula home while renting a place in North County.

I was debating between Temecula and North County as well back in 2009, but ended up getting a townhome in Carlsbad. Loving the fact that work is only a little bit away, but wondering how big of a house I could have had. I have a couple friends in Temecula that are trying to get back to a place nearby in North County as well.

That's good advice and we seriously considered doing that. Unfortunately the going rate for rent is 500 dollars less than our mortgage. So renting an apartment back in San Diego County plus the extra 500 dollars would come to more than what we pay now. So frustrating!

I would stick it out and live in it for two full years so that you can sell without paying any capital gains.

If you sell your primary less than two years after buying it, you'll pay capital gains tax (15% federal, plus whatever state income tax bracket you are in ... likely at least 6% if you have the income to afford a 300+K house).

Great information, thank you!

Submitted by The-Shoveler on August 7, 2013 - 2:54pm.

Wow, 300K for a Condo in TV!

Sounds like a real nice condo, I would think you could find a condo in north county for that. maybe not walking distance to the beach however.

Just remember The HOA Nazi's are much the same all over, if that is the issue.

Submitted by SDHopes on August 7, 2013 - 3:35pm.

The-Shoveler wrote:
Wow, 300K for a Condo in TV!

Sounds like a real nice condo, I would think you could find a condo in north county for that. maybe not walking distance to the beach however.

Just remember The HOA Nazi's are much the same all over, if that is the issue.

It's not a condo, it's a new construction SFR.

Submitted by The-Shoveler on August 7, 2013 - 3:22pm.

OK My bad I thought it was a condo.

Still I would think you should be able to find a condo in North county for that 300-350K (maybe an older 3-2) a little inland.

Submitted by SDHopes on August 7, 2013 - 3:36pm.

The-Shoveler wrote:
OK My bad I thought it was a condo.

Still I would think you should be able to find a condo in North county for that 300-350K (maybe an older 3-2) a little inland.

We thought so also. It wasn't the case for us last year which is why we made the mistake of buying in Temecula. Perhaps in the future.....

Submitted by SDHopes on August 7, 2013 - 4:21pm.

ljinvestor wrote:
If you have a large gain after fees it might be worth sticking it out until you have lived in it 2yrs as your primary.

If the taxable gain is minimal, why not sell when the market is hot. Life is too short to not enjoy the area your living in.

What would you consider to be a large gain? Housing market is expected to go up another 19 percent in the area by next year....is that large enough or would you sell now? Thanks for your advice!

Submitted by UCGal on August 7, 2013 - 3:59pm.

ljinvestor wrote:
If you have a large gain after fees it might be worth sticking it out until you have lived in it 2yrs as your primary.

If the taxable gain is minimal, why not sell when the market is hot. Life is too short to not enjoy the area your living in.

This is good advice.

Submitted by ljinvestor on August 7, 2013 - 4:30pm.

If you think the home could increase by 19% the next year then you should stay, but nobody has that crystal ball.

Submitted by The-Shoveler on August 7, 2013 - 5:19pm.

19% does seem rather high to me as well but who knows!

Actually I like the TV area, I think it has a great future but obviously it’s not for everybody.

If you found the area acceptable I think it you would find it a great investment 10 years from now.
How you get there is another issue.
But good luck.

I need to find that crystal ball, where is TG when you need him LOL.

Submitted by spdrun on August 7, 2013 - 5:56pm.

19% median rise doesn't mean a 19% rise in home values. Doubt it, if anything I see things (THANKFULLY!!!!!!!!) slowing down in the areas where I'm looking.

Submitted by SDHopes on August 7, 2013 - 6:45pm.

spdrun wrote:
19% median rise doesn't mean a 19% rise in home values. Doubt it, if anything I see things (THANKFULLY!!!!!!!!) slowing down in the areas where I'm looking.

Can you clarify what you mean? Zillow predicts a 19.5% rise in home value in my area of Temecula. So what do they mean when that say that? Sorry for being ignorant, glad I have all of you that know this kind of thing!

Submitted by spdrun on August 7, 2013 - 6:48pm.

19.5% rise in value, or median price? Secondly, a lot of entities can predict a lot of things. A lot of the time, the predictions are totally wrong.

Submitted by SDHopes on August 7, 2013 - 6:53pm.

spdrun wrote:
19.5% rise in value, or median price? Secondly, a lot of entities can predict a lot of things. A lot of the time, the predictions are totally wrong.

Good to know, thanks! Rise in value.

Submitted by HLS on August 7, 2013 - 7:00pm.

What is your current interest rate and how much is your PMI ?
Did you get an FHA loan or conventional ?
If you have 20%-22% equity now, you should be able to get mortg insurance removed if you did not go FHA.
that can help a bit. $500 off for a rental ?
Rents are decent in the area, are you dealing with Mello Roos ?

Most info on Zillow is worth what you are paying for it.
I don't believe that Temec will increase much in the next year, a lot depends on interest rates.

Submitted by SDHopes on August 7, 2013 - 7:04pm.

HLS wrote:
What is your current interest rate and how much is your PMI ?
Did you get an FHA loan or conventional ?
If you have 20%-22% equity now, you should be able to get mortg insurance removed if you did not go FHA.
that can help a bit. $500 off for a rental ?
Rents are decent in the area, are you dealing with Mello Roos ?

Most info on Zillow is worth what you are paying for it.
I don't believe that Temec will increase much in the next year, a lot depends on interest rates.

Yes we are dealing with high property tax, mello roos, homeowner association fee of 170, etc. So yes, 500 off for a rental. We did a 5 percent conventional loan.

Submitted by moneymaker on August 7, 2013 - 7:59pm.

I think if values go up 20% in TV then they will probably go up a similar amount in SD north, so waiting will not really help. Are you expecting large increases in incomes soon? I personally would wait the 2 years minimum and see if TV grows on you, if not at least you will not get the tax hit. If you really can't stand it or find the perfect place then you could rent it until the 2 years is up then sell.

Submitted by ocrenter on August 7, 2013 - 8:55pm.

so why the regret? the commute? the neighborhood?

would not rely on zillow predictions. it is great for data mining of recent home sales to get a good sense of current values, but don't use it for prediction of future gains.

and where in North SD would you and the family be ok with? Fallbrook? 4S? Escondido? Encinitas? North County is extremely diverse and spread out. If you are regretting Temecula, there's going to be large parts of North County you'll regret as well.

Submitted by paramount on August 7, 2013 - 10:06pm.

I'm not happy about this thread, it's bad PR.

Please, tell us what your major issue is with Temecula.

The weather has been great so far this summer...

Submitted by SDHopes on August 8, 2013 - 8:24am.

paramount wrote:
I'm not happy about this thread, it's bad PR.

Please, tell us what your major issue is with Temecula.

The weather has been great so far this summer...

We specifically are not listing what our issue is, as to not offend those who enjoy residing in Temecula. We purposely left it simple, we regret moving here. We are looking for advice on when and how to get out of here. Not to bash Temecula. Thanks for understanding.

Submitted by zk on August 8, 2013 - 8:45am.

I'd say do whatever you think will make your children happiest in the long run. Nothing else really compares in importance. Especially not money.

Submitted by spdrun on August 8, 2013 - 8:46am.

Jumping Jeebus Xhrist on a unicycle, just say it; maybe people from Temecula would actually be able to help rather than being offended.

Submitted by SDHopes on August 8, 2013 - 9:25am.

zk wrote:
I'd say do whatever you think will make your children happiest in the long run. Nothing else really compares in importance. Especially not money.

Thank you. Needed to hear this today, means a great deal.

Submitted by paramount on August 8, 2013 - 10:42am.

spdrun wrote:
Jumping Jeebus Xhrist on a unicycle, just say it; maybe people from Temecula would actually be able to help rather than being offended.

+1

Seriously...

I thought Temecula was covered pretty well here, at least by me IMO.

It's hard for me to imagine what could be a major issue that hasn't already been stated.

What is it - the rednecks/low class local/yocals?

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