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Supultlbich
07-22-2005, 04:55 PM
Was wondering if there are any opinions on the future of the housing market in Havasu. Am looking to build a vacation home for my family and am curious what you folks think as to the future of the market and the growth of the city, and the surrounding area??

riverroyal
07-22-2005, 05:40 PM
you may not see the price jump like the last three years,but it will do better than socal

Ion
07-22-2005, 06:08 PM
Unless some unforeseen major catastrophe occurs, Havasu will always be a good investment, like any other resort town with features people find desireable.

2Driver
07-22-2005, 06:24 PM
From experience, Go for a view lot in LHC or waterfront in Parker, both always stand the test of time and draw a premium. (If you can)

SummitKarl
07-22-2005, 06:32 PM
Was wondering if there are any opinions on the future of the housing market in Havasu. Am looking to build a vacation home for my family and am curious what you folks think as to the future of the market and the growth of the city, and the surrounding area??
ok I have been in the market here sence 1996, and have been a Architect in Havasu for the Last 3yrs.
Havasu sustained a avg of 12-15% growth (in Value) per year between 1996 and 2002, in 2003 we jumped and sustained a 30% plus per year increase in Value,through the start of 2005, it's slowed down a bit in the last 6 months mostly due to a FLOOD of resales (people taking taking their equity) and new home construction is about Half of what it was last year, mostly due the increase cost of land, but it has only slightly affected the price of New homes or the increase of our booming 30%+ per year return, Havasu will continue to grow mostly to the North end of town and will eventually build out through Topock to the I -40, on the other side of the I -40 golden shores is currently in it's beginning boom and will eventualy build out into the community of sterling to be located at H-95 and I-40, I will continue to buy land and build homes here for many years to come.
If you chose to build a home I cam promiss you at least a $30k profit from the time you sign a contract to the time you C.O. and move in. and that will continue to happen till western AZ is built out from BHC to Erinberg and then it will just build east till it meets up with Pheonix. I fully expect Western Az to catch up with Ca prices as the river becomes the next SoCal coast line.
just a little FYI from my exp.

TCHB
07-22-2005, 06:32 PM
I feel the property will continue to go up for these reasons.
1. California people selling expensive homes and moving to Havasu (retire).
2. California people buying vacation homes with plans to move to Havasu.
3. California people buying vacation homes as fun and investment.
4. California people moving to Havasu to be able to buy a home, eat and
raise a family.

Burley1
07-22-2005, 07:18 PM
[QUOTE=TCHB]I feel the property will continue to go up for these reasons.
1. California people selling expensive homes and moving to Havasu (retire).
2. California people buying vacation homes with plans to move to Havasu.
3. California people buying vacation homes as fun and investment.
4. California people moving to Havasu to be able to buy a home, eat and
raise a family.[/QUOTE
I must agree

SummitKarl
07-22-2005, 07:21 PM
[QUOTE=TCHB]I feel the property will continue to go up for these reasons.
1. California people selling expensive homes and moving to Havasu (retire).
2. California people buying vacation homes with plans to move to Havasu.
3. California people buying vacation homes as fun and investment.
4. California people moving to Havasu to be able to buy a home, eat and
raise a family.[/QUOTE
I must agree
you forgot "snowbirds" that buy way more homes here than Taxifornian's

shueman
07-22-2005, 07:34 PM
you forgot "snowbirds" that buy way more homes here than Taxifornian's
Yup...

Jrocket
07-22-2005, 07:38 PM
What about the Californians that took out huge equity lines on there homes to put money down on these Havasu places,and then the market and interest rates go back up and so does there interest only equity line payments.Work gets slow and then what will we have?And what about all those odd ball loans that are out there for these Havasu house,how will those catch up when the real payments start in?

riverroyal
07-22-2005, 07:48 PM
nice buzz kill

djunkie
07-22-2005, 07:49 PM
What about the Californians that took out huge equity lines on there homes to put money down on these Havasu places,and then the market and interest rates go back up and so does there interest only equity line payments.Work gets slow and then what will we have?And what about all those odd ball loans that are out there for these Havasu house,how will those catch up when the real payments start in?
Thats why I got mine locked in at a low rate. :D

bigq
07-22-2005, 08:00 PM
And China has just pushed it over the edge today.

Jrocket
07-22-2005, 08:00 PM
nice buzz kill
LMAO...just trying to see both sides of the story.

Jrocket
07-22-2005, 08:01 PM
And China has just pushed it over the edge today.
What now..fill me in news guy.

SummitKarl
07-22-2005, 08:03 PM
What about the Californians that took out huge equity lines on there homes to put money down on these Havasu places,and then the market and interest rates go back up and so does there interest only equity line payments.Work gets slow and then what will we have?And what about all those odd ball loans that are out there for these Havasu house,how will those catch up when the real payments start in?
if you notice on the boards there are several that are suffering this fate, (instant gratification through California equity) it will not Phase Havasu one little bit, the homes will go up for resale and they WILL sell, this is no different than the stock market, if you Leverage your self your risking you investment. (those that have to have it all now....will most certiantly loose it all later)
If you were wise and SAVED you way into a 2nd home then your risk is almost NILL!!
CREDIT KILLS!!!!!!!!!!!!!!!!!!! it's stupid and is the source of most peoples failures, work for it save for it and you will appericate it MUCH MORE!!!!!!!
and most of all NEVER EVER NEVER!!!!!!!!!!!let you debt ratio exceed 55% of your NET INCOME, no matter what any lender tell you.
Signed
retired at 39yrs old and NEVER HAD A CREDIT CARD AND NEVER WILL

Krumbsnatcher
07-22-2005, 08:15 PM
I look around town and yes every where a house is going up, but at the same time renters are in and out of those so called investments for people who choose the properties as an investment. So eventually they all sell, and new investors give it a try.
Lets face it all the land is pretty much bought up and people will make the money. However, most of the population in havasu is unfortunately priced out of the market as most californians have been out priced in cali.
So you must ask yourself how can a town that is supported by tourism and its local economy keep up with the growth and demand social and infrastructure before it costs sky rocket.
The answer is they will start to raise property and building taxes to meet the demands of the revenue they need to sustain the growth. What this means is that the person who has a second home in havasu has a primary home somewhere else, where do you think the owner will make the first payment if things go sour.
To me havasu was a great investment 8 years back, and I know a lot of people who are buying building and flipping homes in havi and are all asking the question when will it end.
The bottom line is jobs and the local economy, we have high paying jobs in cali because we have a demand for higher skilled workers and the corporations local to our residences, which in turn we all work for directly or inderectly. This alone will keep houseing prices in demand here, but all it will take is a bad year and my freinds prices here will fluctuate but they will take a serious hit in havasu.
just .02

TCHB
07-22-2005, 08:16 PM
Snow birds seem to be getting priced out of the cheap Havasu housing. I think it is all California spill over that is driving Havasu.

locogringo
07-22-2005, 08:18 PM
if you notice on the boards there are several that are suffering this fate, (instant gratification through California equity) it will not Phase Havasu one little bit, the homes will go up for resale and they WILL sell, this is no different than the stock market, if you Leverage your self your risking you investment. (those that have to have it all now....will most certiantly loose it all later)
If you were wise and SAVED you way into a 2nd home then your risk is almost NILL!!
CREDIT KILLS!!!!!!!!!!!!!!!!!!! it's stupid and is the source of most peoples failures, work for it save for it and you will appericate it MUCH MORE!!!!!!!
and most of all NEVER EVER NEVER!!!!!!!!!!!let you debt ratio exceed 55% of your NET INCOME, no matter what any lender tell you.
Signed
retired at 39yrs old and NEVER HAD A CREDIT CARD AND NEVER WILL
I almost had to slap you for what you were saying but then you redeemed yourself in the end by talking about saving and debt ratio. Never say..."I Guarantee" though like you did becasue that can come back and bite you in the ass.
How many homes do you think are bought in Havasu and California and pushed through with all these creative financing? You can;t tell me that Havasu won't see a slump. They will, just postponed after Californias.

Jrocket
07-22-2005, 08:33 PM
How many homes do you think are bought in Havasu and California and pushed through with all these creative financing? You can;t tell me that Havasu won't see a slump. They will, just postponed after Californias.
If something has to give,it will be the vactaion home going first,and so forth.All this good cant last forever.And these people that are buying these havasu homes at top dollar arent just coming up with high paying jobs or big raises in the salaries,alot are creative financing and refi's on their Cali homes for down payments.Over extended cash flow will be coming to an end sooner than they think.

locogringo
07-22-2005, 08:40 PM
If something has to give,it will be the vactaion home going first,and so forth.All this good cant last forever.And these people that are buying these havasu homes at top dollar arent just coming up with high paying jobs or big raises in the salaries,alot are creative financing and refi's on their Cali homes for down payments.Over extended cash flow will be coming to an end sooner than they think.
Yep. And then I am buying, buying, buying!!!

SummitKarl
07-22-2005, 08:44 PM
I almost had to slap you for what you were saying but then you redeemed yourself in the end by talking about saving and debt ratio. Never say..."I Guarantee" though like you did becasue that can come back and bite you in the ass.
How many homes do you think are bought in Havasu and California and pushed through with all these creative financing? You can;t tell me that Havasu won't see a slump. They will, just postponed after Californias.
If the Cali market were to crash, then yes we would see a slow down 6-9 months later, and only during April -Oct (seasonal) it really has more to do with interest rates than anything, I know buy the contracts on my desk (year after year) that Snowbirds BY FAR!!!!!!!!!! out number the Californian's (of which I am one) last year it was about 3:1 snowbird vs. Cali's, this year I do not know yet I have to wait till January to even have a idea, but Yes they are getting priced out of the market, this is why I am buying in Erinberg, quartzsite BHC and golden shores.
the latest one on my desk is a 9684 sq ft (under roof) bought by a couple in Florida, thats about $1.7m TO BUILD not to mention the $750k lot on the golf course. and I am seeing alot of Vegas people heading this way, not even blinking at $175k lots and ploping a $500k home on it. The loss of Californians would affect the economy for a bit but People are coming from all over for a play land with things to do every day all year long. I don't subscribe to the "Californian's made Havasu" theory, but I am glad to see so many making a good living catering to their needs here.
CHIRP>>>>>>>>CHIRP

SummitKarl
07-22-2005, 08:52 PM
I look around town and yes every where a house is going up, but at the same time renters are in and out of those so called investments for people who choose the properties as an investment. So eventually they all sell, and new investors give it a try.
Lets face it all the land is pretty much bought up and people will make the money. However, most of the population in havasu is unfortunately priced out of the market as most californians have been out priced in cali.
So you must ask yourself how can a town that is supported by tourism and its local economy keep up with the growth and demand social and infrastructure before it costs sky rocket.
The answer is they will start to raise property and building taxes to meet the demands of the revenue they need to sustain the growth. What this means is that the person who has a second home in havasu has a primary home somewhere else, where do you think the owner will make the first payment if things go sour.
To me havasu was a great investment 8 years back, and I know a lot of people who are buying building and flipping homes in havi and are all asking the question when will it end.
The bottom line is jobs and the local economy, we have high paying jobs in cali because we have a demand for higher skilled workers and the corporations local to our residences, which in turn we all work for directly or inderectly. This alone will keep houseing prices in demand here, but all it will take is a bad year and my freinds prices here will fluctuate but they will take a serious hit in havasu.
just .02
tell me when you have ever seen RE go Backwards, level out YES, drop out I never heard of that in my 42yrs

Jrocket
07-22-2005, 08:56 PM
If the Cali market were to crash, then yes we would see a slow down 6-9 months later, and only during April -Oct (seasonal) it really has more to do with interest rates than anything, I know buy the contracts on my desk (year after year) that Snowbirds BY FAR!!!!!!!!!! out number the Californian's (of which I am one) last year it was about 3:1 snowbird vs. Cali's, this year I do not know yet I have to wait till January to even have a idea, but Yes they are getting priced out of the market, this is why I am buying in Erinberg, quartzsite BHC and golden shores.
the latest one on my desk is a 9684 sq ft (under roof) bought by a couple in Florida, thats about $1.7m TO BUILD not to mention the $750k lot on the golf course. and I am seeing alot of Vegas people heading this way, not even blinking at $175k lots and ploping a $500k home on it. The loss of Californians would affect the economy for a bit but People are coming from all over for a play land with things to do every day all year long. I don't subscribe to the "Californian's made Havasu" theory, but I am glad to see so many making a good living catering to their needs here.
CHIRP>>>>>>>>CHIRP
I mean people from all over not just California that will be having this problem,when they start to run out of fun sorta speek.

bigq
07-22-2005, 09:05 PM
What now..fill me in news guy.
China announced today they were going to strenghten it's currency. It will stop purchasing so much US treasuries which drives the bond prices down. When bond value goes down the yield goes up. Mortgages are tied to bonds so it will drive the cost to use monies for a mortgage up. Currently I think China is the second biggest purchaser of US treasuries, go figure.Secondly it could mean that China will buy more American products and we would buy less China products which seems good till you factor in the cost of inflation. Personally I am all for ridding the US of anything to do from China. This is how I understand it anyway.

bigq
07-22-2005, 09:07 PM
tell me when you have ever seen RE go Backwards, level out YES, drop out I never heard of that in my 42yrs
Late 80's early 90's. Lots went into forclosure or short sales, owed more than the house was worth.

Supultlbich
07-22-2005, 09:17 PM
So whats the verdict??? To buy or not to buy??? It would seem to me thqat the smart money always goes with real estate. As a wise man once said, god isnt making any more of it, and isnt it safe to say that in the worst case, I could sell for what I paid??

SummitKarl
07-22-2005, 09:33 PM
Late 80's early 90's. Lots went into forclosure or short sales, owed more than the house was worth.
well I bought in 89 in Encinitas Ca, at the peak of over inflation, payed $279k 3250 sqft, held on for 10yrs and sold for $620k, but then again I folllowed the rules 20% down on a 30yr loan and paid extra principal each month.
but I must agree with what someone said earlier in this thread, people are getting priced out, I was making a nice 6fig salay in S.D. and I saw the writing on the wall = cost of living vs. salary, now I am here making less and saving 4x as much as I could before. but I see many of those here in LHC that can barely afford living here, Salarys are on the increase across the board out here, thats why I design some real low cots homes for those that live here, so everyone has the opertunity for the american dream. the other thing is Havasu is getting industry that use to be exclusive to SoCal and Silicon Valley see (riverratmike), Havasu is on it's way no different that. O.C. 30yrs ago and North San Diego County 20 yrs ago.

SummitKarl
07-22-2005, 09:37 PM
So whats the verdict??? To buy or not to buy??? It would seem to me thqat the smart money always goes with real estate. As a wise man once said, god isnt making any more of it, and isnt it safe to say that in the worst case, I could sell for what I paid??
Build or BUY!!!!!!!!!it ain't going to get cheaper, unless we get to much of a glut of resales that sit.
PM roln 20s, INSMAN and ESSEX502 for their impartial and informed opinions
and if you decide to build/buy here PM warlock25 she is one of the best realtor/lenders in town

bigq
07-22-2005, 09:47 PM
So whats the verdict??? To buy or not to buy??? It would seem to me thqat the smart money always goes with real estate. As a wise man once said, god isnt making any more of it, and isnt it safe to say that in the worst case, I could sell for what I paid??
If you can afford it and are able to hold on to if their is a downturn I would buy if I could. I would be looking farther north though even as far as Topok. 10 years from now that place should be cranking.

SummitKarl
07-22-2005, 09:58 PM
If you can afford it and are able to hold on to if their is a downturn I would buy if I could. I would be looking farther north though even as far as Topok. 10 years from now that place should be cranking.
BINGO!!!!!!!!!!!!!!!!!

Ion
07-22-2005, 10:07 PM
...You can;t tell me that Havasu won't see a slump. They will, just postponed after Californias.
I'll take some of that action...there is some merit to what you're stating (there really are a substantial amount of Havasu property owners from CA), but weather its 10% of new homes or 50%, it really doesn't matter, cuz there will always be new Californians wanting to move here, as well many others, who like me, are from other states. So far, noone has been able to name a popular resort town with comparable ameneties in our country that has gone belly up.
Carrying on with the theme of the thread:
Although Havasu will always be a good investment, it's continuing to be more costly as time passes. There are some excellent, up & coming locations outside Havasu where you can get more bang for your buck which based on my last 11 months, will yeild over 125% growth. I really can't see any of this general vicinity being anything but a good investment.

Supultlbich
07-22-2005, 10:17 PM
Thanks alot folks, we seemed to have covered all of the bases. We were leaning toward building, I just wanted to hear from those with some non biased opinions.
thanks

bigq
07-22-2005, 10:17 PM
BINGO!!!!!!!!!!!!!!!!!
Any inside knowledge there??? :D :D

Dusty Times
07-22-2005, 10:24 PM
There are many Havasu builders doing houses in Kingman due to the lack of available lots in Havasu. Plus it is alot cheaper but farther from the lake.

SDLifesaver
07-22-2005, 10:38 PM
Little bitch, I thought you already put the ink on the paper? Quit being shy and do what I told you to do 3 years ago when we did. Buy and build. Hurry up so we can be near neighbors and on a clear night we can hear the voice amplifiers from our houses. SSSUUUUUUUUUUUUUUUUUUPPPPPPPPPP! Nick

SummitKarl
07-22-2005, 11:01 PM
Any inside knowledge there??? :D :D
yes but I cannot speak of it yet, promised a friend, something will happen there in 2yrs, thats all I can say,
want to make a good investment, look accross from Havasu Heights thats all I can say without getting in trouble

SummitKarl
07-22-2005, 11:05 PM
Thanks alot folks, we seemed to have covered all of the bases. We were leaning toward building, I just wanted to hear from those with some non biased opinions.
thanks
well mines not exactly non biased, I can get HB'ers up to 3% off if you build with me, go to the Image Gallery search for Summit and you can see 4 of my RV garage floor plans(they also come in 3 car) or I do complete custom designs for $1200 and I have dozens of others to chose from
Karl

Boozer
07-22-2005, 11:09 PM
Couldn't one technically take out all the equity in their home via a HELOC in California then buy 2-3 homes in AZ with the equity they took out and walk away from their California home if they had to without risking the loss of the properties they bought in AZ with the equity they got out of their HELOC?

SummitKarl
07-22-2005, 11:15 PM
Couldn't one technically take out all the equity in their home via a HELOC in California then buy 2-3 homes in AZ with the equity they took out and walk away from their California home if they had to without risking the loss of the properties they bought in AZ with the equity they got out of their HELOC?
sure if you can be sure your job is going to be there every morning and a paycheck each week.
thats what I was tring to say earlier, leveraging your equity, will eventually catch up, unless your sure their will never be any surprises in your life, sell the Cali house buy (2) here and rent the other one out and let someone else pay your mortgage, best IRA you could have

INSman
07-23-2005, 03:47 AM
yes but I cannot speak of it yet, promised a friend, something will happen there in 2yrs, thats all I can say,
want to make a good investment, look accross from Havasu Heights thats all I can say without getting in trouble
Where exactly is Havasu Heights ??

Freak
07-23-2005, 05:11 AM
China announced today they were going to strenghten it's currency. It will stop purchasing so much US treasuries which drives the bond prices down. When bond value goes down the yield goes up. Mortgages are tied to bonds so it will drive the cost to use monies for a mortgage up. Currently I think China is the second biggest purchaser of US treasuries, go figure.Secondly it could mean that China will buy more American products and we would buy less China products which seems good till you factor in the cost of inflation. Personally I am all for ridding the US of anything to do from China. This is how I understand it anyway.
Yep with the reval of the Yuan the dollar is loosing more value so greenspan will have to raise rates to keep inflation in check and guess what he is giving warning of it now.
"Alan Greenspan, chairman of the Federal Reserve, appears to be stepping up his effort to "jawbone" financial markets, using language rather than direct policy to suggest that investors, especially home buyers, take greater heed of long-term risks.
After having discounted worries about a speculative "bubble" in housing prices in the past, Greenspan suggested for the first time in his testimony to Congress on Wednesday that a drop in housing prices was possible.
"The U.S. economy has weathered such episodes before without experiencing significant declines in the national average of housing prices," he said. "Nevertheless, we certainly cannot rule out declines in home prices, especially in local markets."
But he made it clear that he was not overly worried. A decline in housing prices "would be accompanied by some economic stress," he said, but "the macroeconomic implications need not be substantial."
Greenspan offered a fairly optimistic prediction of steady growth and low inflation through next year. But his tone was tougher and blunter about the need for additional protection from inflation. Having presided over nine interest rate increases since June 2004, Greenspan signaled that three or four more were likely by the end of the year.
He expressed unease about rising labor costs and slowing growth in productivity, and his message seemed to be that the economy was strong enough to handle higher borrowing costs.
Fulfilling the benign forecast for "reasonably good" economic growth and low inflation, he said without qualifications, "will require the Federal Reserve to continue to remove monetary accommodation."
That, along with a repeat of the Fed's longstanding goal of raising rates at a "measured" pace, means that the central bank is likely to raise rates by a quarter point from 3.25 percent now to about 4 percent by the end of the year.
The Federal funds rate on overnight loans between banks is 3.25 percent, up from 1 percent in June 2004. Investors have been waiting for the Fed to hint that rates were close a "neutral" level that neither slows the economy nor promotes inflation.
In many ways, the Fed's stance is the mirror image of its stance two years ago. In 2003, Greenspan argued that it made sense to keep interest rates extraordinarily low as a form of "insurance" against a Japanese-style deflation in prices.
One reason that the Fed continues to push rates higher is that long-term interest rates and mortgage rates, which the central bank does not directly control, remain so low that housing prices continue to soar at double-digit rates.
But more so than in the past, Greenspan warned that bond investors, as well as home buyers, may have been lulled into a false sense of complacency that interest rates and inflation will remain low for years to come.
"History cautions that long periods of relative stability often engender unrealistic expectations of its permanence," he said. And these unrealistic expectations, he said, "may lead to financial excess and economic stress."

nodigg
07-23-2005, 05:19 AM
Buy real estate if you can. Period. Skip the new boat for a year or two. Summit is right on about the joys of real estate. (Let's keep that Havasu Heights thing quiet till I get some more acreage out there though).

TOBTEK
07-23-2005, 05:44 AM
you may not see the price jump like the last three years,but it will do better than socal
I heard on CNBC the other morning on the way to work (where my 15 min drive...takes over an hour because of traffic :mad: ) that our SO-CAL property values have really slowed down. They were ONLY up 8% in relation to the previous years 23.9%.....I'll take the 8% ALL DAY LONG. an extra $40,000.00 a year, based on a 500k home....some parts of the country NEVER see this kind of growth.

INSman
07-23-2005, 07:15 AM
Buy real estate if you can. Period. Skip the new boat for a year or two. Summit is right on about the joys of real estate. (Let's keep that Havasu Heights thing quiet till I get some more acreage out there though).
Quit trying to corner the market Rick !! :hammerhea :boxingguy :D

Mrs.Racer277
07-23-2005, 07:16 AM
Build or BUY!!!!!!!!!it ain't going to get cheaper, unless we get to much of a glut of resales that sit.
PM roln 20s, INSMAN and ESSEX502 for their impartial and informed opinions
and if you decide to build/buy here PM warlock25 she is one of the best realtor/lenders in town
I agree! :D :D

Mrs.Racer277
07-23-2005, 07:17 AM
Buy real estate if you can. Period. Skip the new boat for a year or two. Summit is right on about the joys of real estate. (Let's keep that Havasu Heights thing quiet till I get some more acreage out there though).
This is the man to speak to. He knows his stuff. :D :D

SummitKarl
07-23-2005, 07:19 AM
I heard on CNBC the other morning on the way to work (where my 15 min drive...takes over an hour because of traffic :mad: ) that our SO-CAL property values have really slowed down. They were ONLY up 8% in relation to the previous years 23.9%.....I'll take the 8% ALL DAY LONG. an extra $40,000.00 a year, based on a 500k home....some parts of the country NEVER see this kind of growth.
being as I lived in Carlsbad, Encinitas and San Marcos for 40yrs I feel your pain
(where my 15 min drive...takes over an hour because of traffic :mad: )
and is the sole reason I said goodbye to my HOME!!!!!!!!! I worked in Sorrento Valley so you know where I am comming from, even makeing 1/2 the money here as I was there I am 4x better off with the $$$
San Marcos is unique right now 92025 had poor values just 4ys ago now what sold for 150k is up around 450k, SM is not reflective of the SoCal Market, but I nice SPIKE to retire on.

OutCole'd
07-23-2005, 07:22 AM
tell me when you have ever seen RE go Backwards, level out YES, drop out I never heard of that in my 42yrs
I bought my house in SCV, CA in 91 for 195k, sold it eight years later for 160k :(
Need real estate advise, do opposite of what I do.

Not So Fast
07-23-2005, 07:53 AM
What about the Californians that took out huge equity lines on there homes to put money down on these Havasu places,and then the market and interest rates go back up and so does there interest only equity line payments.Work gets slow and then what will we have?And what about all those odd ball loans that are out there for these Havasu house,how will those catch up when the real payments start in?
Exactly, been saying that for sometime and now the finacial wizards are starting to talk the same way, VOODOO financing and the rates are GOING UP! The biggest worry is WHERE is the water going to come from to support the growth, the Colorado River system can only support so many people and is at capacity now. Sorry for the hijack :( NSF

Not So Fast
07-23-2005, 07:59 AM
tell me when you have ever seen RE go Backwards, level out YES, drop out I never heard of that in my 42yrs
Early 90's in the O.C. and I was there but it didnt matter because I was not spec'ing, I was there for 23 years and I knew it would come back but it did go backwards :notam: NSF

rivercrazy
07-23-2005, 08:43 AM
IMO - The worst thing for the housing market is the low down payment/interest only loan deals. Its nothing short of vegas style gambling. The gamble is whether real estate prices continue to climb. Things that go up come down. Its been proven for centuries.
When people start saying you can never loose by investing in anything, its pretty close to the top and ready to start its way back down.

totenhosen
07-23-2005, 09:00 AM
My opinion is that if CA r/e tanks than so will Havasu. Havasu is to me still a vacation getaway comprised with a larger than normal amount of 2nd homes etc. Do you think if a cash crunch comes that people are going to risk losing their primary residence to keep their 2nd home?
Having said that if you do your due diligence, aren't over leveraged and can ride out a downturn (remember unless you sell it is only a lose on paper) than in time when the cycle swings back the other way you'll be fine.

nodigg
07-23-2005, 09:08 AM
About 1 year ago there was a thread about Golden Shores Property on this board and I was one of the people that laughed and said all Golden Shores was is a bunch of Meth Labs. Well now fast forward a year and lots that I could (should) have bought for $7,000.00 are now $20,000.00. I bought in Havasu instead so I did alright, but right now I would rather have 10 lots in Golden Shores than my 1 house in Havasu.
If they every build a golf course out near the 40/95 interchange and continue 95 straight through to BHC without the detour that will open up a whole bunch of land and opportunity. Buy, Buy, Buy but remember keep an open mind because there are many opportunities outside the city of Lake Havasu.
Golden shores is HOT for increases right now. 5k lots all day long two years ago, now closer to 35k! and a big tract is being graded right now. Who new?

nodigg
07-23-2005, 09:11 AM
He is usually very tight lipped when it comes to this stuff......At least to me :) Oh well, maybe he is changing his ways. Are you BIACH? (meant for Nodigg)
I still keep a lot of quiet stuff, I'm just trying to bring the value of my land up in Havasu Heights by starting a land rush!

rivercrazy
07-23-2005, 09:11 AM
My opinion is that if CA r/e tanks than so will Havasu. Havasu is to me still a vacation getaway comprised with a larger than normal amount of 2nd homes etc. Do you think if a cash crunch comes that people are going to risk losing their primary residence to keep their 2nd home?
Having said that if you do your due diligence, aren't over leveraged and can ride out a downturn (remember unless you sell it is only a lose on paper) than in time when the cycle swings back the other way you'll be fine.
Couldn't agree more. Conservative use of debt and healthy equity typically floats the boat

nodigg
07-23-2005, 09:15 AM
I prefer to be diversified myself.
I like to be diversified also, a little desert commercial, residential, heavy industrial, mixed with some O.C. commercial, residential and income property. of all types. Heck, I even have about $250.00 in the stock market still! And a 401k that just never seems to grow fast enough for me.

nodigg
07-23-2005, 09:23 AM
Quit trying to corner the market Rick !! :hammerhea :boxingguy :D
I ain't got that kinda dough! ........yet! lol!
You asked earlier and I did not see any one reply, Havasu Heights is near the top of the grade as you go south on 95 from the Pilot. Its on the left and has large lots, (acreage). There has been some activity, (sshhhhh) on the opposite side of the highway.

Mrs.Racer277
07-23-2005, 09:24 AM
[QUOTE=nodigg]I ain't got that kinda dough! ........yet! lol!
:rolleyes: :rolleyes: :rolleyes: :rolleyes:
:) :)

nodigg
07-23-2005, 09:27 AM
[QUOTE=nodigg]I ain't got that kinda dough! ........yet! lol!
:rolleyes: :rolleyes: :rolleyes: :rolleyes:
:) :)
Hi Dia! :D

Mrs.Racer277
07-23-2005, 09:30 AM
Hi Dia! :D
Hello there. :D How is Havi??? Find me a job yet?? ;)

Party Cat
07-23-2005, 09:35 AM
Hello there. :D How is Havi??? Find me a job yet?? ;)
I doubt that there are any that can support your Post Wh0re addiction :D :D

nodigg
07-23-2005, 09:41 AM
Hello there. :D How is Havi??? Find me a job yet?? ;)
This place sucks in late July and August! j/k. But is IS too hot! I'm outta here in a few minutes, headin for the Oc beach weather! I got a job just waitin' for you. The wage sucks and there are no fringe benefits and the a/c is not very good, but, but, ut-oh! there is not good side! lol!

SummitKarl
07-23-2005, 09:43 AM
Golden shores is HOT for increases right now. 5k lots all day long two years ago, now closer to 35k! and a big tract is being graded right now. Who new?
yes I know the contract is on my desk 400 homes from 1400-1800 sqft, the guy that owns it sold all 400 lots in 3 days at $30k each

nodigg
07-23-2005, 09:44 AM
I doubt that there are any that can support your Post Wh0re addiction :D :D
Nor yours! :D

nodigg
07-23-2005, 09:45 AM
yes I know the contract is on my desk 400 homes from 1400-1800 sqft, the guy that owns it sold all 400 lots in 3 days at $30k each
Simply amazing! Again, I did not buy enough because I was not sure it would pop! :hammer2:

nodigg
07-23-2005, 09:48 AM
yes I know the contract is on my desk 400 homes from 1400-1800 sqft, the guy that owns it sold all 400 lots in 3 days at $30k each
Is it true he took deposits only?

SummitKarl
07-23-2005, 09:50 AM
My opinion is that if CA r/e tanks than so will Havasu. Havasu is to me still a vacation getaway comprised with a larger than normal amount of 2nd homes etc. Do you think if a cash crunch comes that people are going to risk losing their primary residence to keep their 2nd home?
Having said that if you do your due diligence, aren't over leveraged and can ride out a downturn (remember unless you sell it is only a lose on paper) than in time when the cycle swings back the other way you'll be fine.
Havasu is quite self sufficent, we have plenty of Hi-tech manufactures moving in, and plenty of the big retailers on their way, Yes!! Cali's, snowbirds and others helped to get it going, now "THE CHILD" has grown up and can take care of itself just fine.
oh if that primary carries 3-4x the mortgage of the Havi house, which choice would you make? I know which one I made and I am far better off for it.

SummitKarl
07-23-2005, 09:53 AM
Is it true he took deposits only?
yes I speak with Jim at least 2-3 times a week if your interested PM me and I can hook you up with Jim, I won't post his cell

nodigg
07-23-2005, 09:53 AM
Now that Lowes is a done deal, wonder how long till the mall gets started with a big anchor store?

SummitKarl
07-23-2005, 09:55 AM
Hello there. :D How is Havi??? Find me a job yet?? ;)
I told you good looking that all you have to do is tell me when you want to start, and I will hook you up

Mrs.Racer277
07-23-2005, 10:02 AM
This place sucks in late July and August! j/k. But is IS too hot! I'm outta here in a few minutes, headin for the Oc beach weather! I got a job just waitin' for you. The wage sucks and there are no fringe benefits and the a/c is not very good, but, but, ut-oh! there is not good side! lol!
LOL, Sounds like a great place to work. :rolleyes: Who needs air when it is 130 outside. :cry:
Have a great time at the beach. We were just down in Laguna last weekend it was great. Great Weather. :)
We will be out there first weekend in August. :)

Mrs.Racer277
07-23-2005, 10:03 AM
I told you good looking that all you have to do is tell me when you want to start, and I will hook you up
Thank you
I will keep you posted as to when. Updating my resume. :) :)

Party Cat
07-23-2005, 10:05 AM
Nor yours! :D
I'm not the one looking to move ;)...
Besides...You've got a job...and more posts than me...so if I did want to move...there's hope LOL

Party Cat
07-23-2005, 10:07 AM
I'm outta here in a few minutes, headin for the Oc beach weather!
So what time is the 1st Captain's and DC ???

C-2
07-23-2005, 10:19 AM
So do we take our $400K equity here; build in Havasu for a home value in the neighborhood of $600-$800K, mortgage free?
Get a job at McDonalds and live happily ever after?
I keep trying to convince my wife of this, but she won't do it.
Recently she said, find me a lot to keep horses on and we can do it.

SummitKarl
07-23-2005, 10:43 AM
So do we take our $400K equity here; build in Havasu for a home value in the neighborhood of $600-$800K, mortgage free?
Get a job at McDonalds and live happily ever after?
I keep trying to convince my wife of this, but she won't do it.
Recently she said, find me a lot to keep horses on and we can do it.
well I don't know about Micky D's but I know several that have done just that
CASH OUT and build a new house CASH!!!!!!! and just work part time at Home Depot, and they live a GREAT!!!!!! life, and yes we do have a (spelling) aquesterian area here

C-2
07-23-2005, 10:52 AM
well I don't know about Micky D's but I know several that have done just that
CASH OUT and build a new house CASH!!!!!!! and just work part time at Home Depot, and they live a GREAT!!!!!! life, and yes we do have a (spelling) aquesterian area here
My bro built a 4K sq foot home with a 3700sq ft garage, on an acre in the horse district, for about $450K. It's now worth 1.1.
I wouldn't mind doing that.....it's just that damn heat and those CF'ers!

SummitKarl
07-23-2005, 11:02 AM
My bro built a 4K sq foot home with a 3700sq ft garage, on an acre in the horse district, for about $450K. It's now worth 1.1.
I wouldn't mind doing that.....it's just that damn heat and those CF'ers!
most likey alot more than $1.1m
7300 sq under roof is about $750k TO BUILD 1 acre lot up there your talking $500k min so 1.25m +(30% for resale) if its got a lake view add 50-60k to that. your BRO did very well

C-2
07-23-2005, 11:10 AM
most likey alot more than $1.1m
7300 sq under roof is about $750k TO BUILD 1 acre lot up there your talking $500k min so 1.25m +(30% for resale) if its got a lake view add 50-60k to that. your BRO did very well
yup, he got his lot for $150K and after putting his house up; the lot across the street went to $400K.
Time to get busy on the wife.....

Wmc
07-23-2005, 11:25 AM
What about the Californians that took out huge equity lines on there homes to put money down on these Havasu places,and then the market and interest rates go back up and so does there interest only equity line payments.Work gets slow and then what will we have?And what about all those odd ball loans that are out there for these Havasu house,how will those catch up when the real payments start in?
I work for a Mortgage Lender and here's what will happen to those people who took out all their equity on their California property and purchased an Investment property in Havasu. 1st if they have an interest only payment I would suggest refinancing into something fixed, especially if they have an equity line of credit. Those are climbing higher & higher. If you can't refinancie your 1st & 2nd into one I would suggest refinancing the Home Equity line into a fixed 30/15. Another scenario for these types of people is they are going to walk in 2 years time because they pulled out all of their equity and they have that popular Interest Only payment. Well that is only fixed for 2, 3 or 5 years, so now they are going to be faced with an increase in their house payment. We are going to see a foreclosure market coming up and that is the time my friends to Invest!!! If you have a lot of equity now, save it in 2 years time we will all be rich because we will be able to buy those foreclosures for investment purposes.... Unfortunately there are alot of people out there that don't even understand the type of loan they got to buy their home in Havasu and that is most unfortunate. It is always a plus to know someone in the business because they can educate you on different types of loan scenarios. Hope this helps.

rivercrazy
07-23-2005, 11:29 AM
We have a BINGO! Good call WMC

Wmc
07-23-2005, 11:36 AM
If something has to give,it will be the vactaion home going first,and so forth.All this good cant last forever.And these people that are buying these havasu homes at top dollar arent just coming up with high paying jobs or big raises in the salaries,alot are creative financing and refi's on their Cali homes for down payments.Over extended cash flow will be coming to an end sooner than they think.
I do loans for people everyday who have taken every bit of equity out 100% cash out refi to purchase in Havsu or Laughlin, or any resort community. That to me is terrible judgement. Prices will come down not like we saw in 1996, but they will start to decrease mildly, so now you are upside down in your current property. That is a mistake. Like you said save your money, work hard and then use that as a down payment on your vacation home. I recommend never exceeding 50% in your debt to ihcome ratio. I work for A paper lender good credit and we will not do a loan for anyone who exceeds 50%. 2 months ago we wouldn't do a loan for anyway that exceeded 40%, but we had to change to keep up with the competition. I also recommend to never get into an Interest Only loan unless you plan on flipping the property. You are not paying down principal and if you are doing that something tells me you can't afford the property to begin with.

Wmc
07-23-2005, 11:37 AM
We have a BINGO! Good call WMC
Why thank you!! I just like to educate people on the right choices for mortgage. That is our biggest credit decision ever and it is always good to do the right thing!!!

SummitKarl
07-23-2005, 02:16 PM
I work for a Mortgage Lender and here's what will happen to those people who took out all their equity on their California property and purchased an Investment property in Havasu. 1st if they have an interest only payment I would suggest refinancing into something fixed, especially if they have an equity line of credit. Those are climbing higher & higher. If you can't refinancie your 1st & 2nd into one I would suggest refinancing the Home Equity line into a fixed 30/15. Another scenario for these types of people is they are going to walk in 2 years time because they pulled out all of their equity and they have that popular Interest Only payment. Well that is only fixed for 2, 3 or 5 years, so now they are going to be faced with an increase in their house payment. We are going to see a foreclosure market coming up and that is the time my friends to Invest!!! If you have a lot of equity now, save it in 2 years time we will all be rich because we will be able to buy those foreclosures for investment purposes.... Unfortunately there are alot of people out there that don't even understand the type of loan they got to buy their home in Havasu and that is most unfortunate. It is always a plus to know someone in the business because they can educate you on different types of loan scenarios. Hope this helps.
Right on!!! you said (directly) what I was tring to tell people (softly)
I am waiting as well, I am debt free and own my homes, I am saving like a bandit and I am just waiting to pounce :D

C-2
07-23-2005, 03:19 PM
Everybody, myself included, has been predicting a foreclosure boom for the past three years now....and just when is it coming? Or is it coming?
If there's one thing I've learned about the peeps on this board - most are a lot wiser than we give them credit for (no pun intended).
Blasting equity for toys is not the smartest thing to do; but blasting it to purchase real property in an ever-increasing market - maybe a good thing?Had I done ith three years ago, instead of worrrying the market was about to crash, I, like many people, would have been feeling pretty good about right now.
If we only had the answer to the million dollar question - will it crash?

Jrocket
07-23-2005, 03:50 PM
I took out a second to pay the first,its the third that is killing me! LOL
WMC,I agree with you.

imirsh1
07-28-2005, 10:27 AM
WMC hit the nail on the head! My good friend just went to ameriquest mortgage to set up all their I.T. they have actually hired 140 FT. employees to handle the foreclosures and repos',So they are expecting the bubble to burst.

howitchy
07-28-2005, 12:36 PM
About 1 year ago there was a thread about Golden Shores Property on this board and I was one of the people that laughed and said all Golden Shores was is a bunch of Meth Labs. Well now fast forward a year and lots that I could (should) have bought for $7,000.00 are now $20,000.00. I bought in Havasu instead so I did alright, but right now I would rather have 10 lots in Golden Shores than my 1 house in Havasu.
If they every build a golf course out near the 40/95 interchange and continue 95 straight through to BHC without the detour that will open up a whole bunch of land and opportunity. Buy, Buy, Buy but remember keep an open mind because there are many opportunities outside the city of Lake Havasu.
Anyone hear of Stagecoach Trails in Yucca, AZ? It's about 30-40 minutes from Havasu; probably 15-20 to Topac. A few exits pass Havasu on I-40. They have 10-acre lots for $40,000 and 40-acres for $125,000. Anyone have any info?

mbrown2
07-28-2005, 01:16 PM
WMC hit the nail on the head! My good friend just went to ameriquest mortgage to set up all their I.T. they have actually hired 140 FT. employees to handle the foreclosures and repos',So they are expecting the bubble to burst.
Sounds like they are doing a lot of questionable loans if they are ramping up the Foreclosure staff such like that...

Up 4 River
07-28-2005, 02:45 PM
Intersting to see median new home prices drop 5.5%
HOME SALES
The Commerce Department said new single-family home sales rose to a seasonally adjusted annual rate of 1.374 million units from an upwardly revised 1.321 million unit rate in May.
The June sales pace was 14 percent higher than a year earlier, and well above Wall Street's estimate of a 1.300 million unit pace.
But the national median sales price of a new home fell 5.5 percent, to $214,800 from $227,400 in May. The average sales price on a new home fell to $267,400 in June from $287,400 the previous month.
Even so, the median price of existing home sales, which involve far more properties, rose to $219,000 in June from $206,000 the month before, data released on Monday showed.
"It just looks as if we're finally seeing a little stabilization in prices after strong increases last year," said Gary Thayer, chief economist at A.G. Edwards and Sons in St. Louis.
Banc of America Securities analyst Daniel Oppenheim attributed the drop in new home prices to the mix of homes sold.
"This was likely driven by a higher proportion of sales in the Midwest, where average selling prices tend to be lower, and a shift to higher density housing," he wrote in a research note.
On Wall Street, major homebuilders' shares fell over 2 percent immediately after the housing report. But the Dow Jones U.S. Home Construction Index a wide barometer of homebuilding stocks, later rebounded, trading up 0.56 percent as major indexes moved higher in late afternoon trading.
The surprisingly strong durable goods orders initially boosted the U.S. dollar, although it later pared its gains, while prices of U.S. government bonds fell as traders anticipated future Federal Reserve interest-rate hikes.

Roxysnow
07-28-2005, 02:53 PM
WMC hit the nail on the head! My good friend just went to ameriquest mortgage to set up all their I.T. they have actually hired 140 FT. employees to handle the foreclosures and repos',So they are expecting the bubble to burst.
Ameriquest is a primarily a subprime loan company. Their foreclosure rate has always been high. Your one step away from foreclosure or bankruptcy if your loan is with them!

TripleTrouble
07-28-2005, 03:26 PM
Hate to SPAM, but my family and I have some property for sale in the Parker/Parker Strip area. If anybody is interested just drop me a line, either here or at jamsduc748@yahoo.com for more info.

totenhosen
07-28-2005, 03:54 PM
Ameriquest is a primarily a subprime loan company. Their foreclosure rate has always been high. Your one step away from foreclosure or bankruptcy if your loan is with them!
That company is so crappy and shady that they are required to have a 5 day recession period instead of 3. (At least I think it is them.)