Tuesday, July 12, 2011

A Job Opening and real estate observations

My current job will probably have layoffs this months. A bunch of people accepted early retirement and I am not a numbers cruncher like some people but I assume that a one time write-off in the financial reporting will mean early retirements and layoffs will occur in same financial quarter.

Managers at work are going batshit trying to be make sure aspect of big project they are responsible for gets done ahead of restructuring makes work a little more stressful, but managers are always a bit stressed to make the deadlines that they had no clue how company could accomplish. Every engineering schedule is based on noting going wrong. My current project is first one that had schedule impacted by a tsunami.

I have decided with Timberwolves firing of Kurt Rambis I should apply to replace as I think it is nice raise and how hard can it be to do better than 32-132. Saying in baseball is team wins 50 games no matter what manager does, team loses 50 games no matter what manager does and it is other 50 games where manager earns his pay (154 game season made this saying a lot cleaner). Doing better than 20% seems trivial.

South Bay rental prices are a bit out of control. In general monthly rents are increasing by ~$400/month and a lot of apartments are refurbishing to add granite counters in kitchen as well as stainless steel appliances. I have no frkn clue why counter top and what surface you add art and notes to on refrigerator rates a rent premium.

My observation is washer/dryer in apartment is $400
Square footage over 800 is $20/sq ft/month
Granite + stainless is $300/month

Deal with current apartment is they want to jack rent $400/month but end of lease we have to either move out, move to another apartment in complex (that this year would cost $300/month more) or move out for a month where we refurbish.

This morning my wife tried to talk me into just sucking it up and renewing lease for year.

I countered with we should buy a condo a mile away because kid would go to same frkn bus stop and from prices I am seeing on zillow Mortgage + Insurance + HOA + Property tax would be $300/month less. I leave for work thinking it is no brainer decision and am frustrated wife is still arguing. Wife does decide when I leave for work go ahead and get condo if you want! I think this is case either where she has forgotten I do not understand subtlety or believes my trend of not paying full cable bill or cell bill each month has torpedoed credit rating.

At lunch I talk about condo pries vs. rental rates with co-workers. I work with engineers so OF COURSE none of us have wife's view of granite + stainless having any value.

Work hypothesis developed is people who paid $500-$600k for local condo are underwater and thus shortselling or walking away letting foreclosures happen since they can't refinance underwater properties and are now increasing rental demand. The math for buying these same condos in the $300-$400 range make it attractive for renters who can afford down payment to jump in.

This all prompts me to check credit rating, apply via web for loan pre-approval and try to find buyer broker.

I get home and much to my surprise wife has bought into idea with both feet and has lined up buyer broker. Little do I realize that her friend Sunny (who I have met) probably is involved in buying or selling house/month along my route to light rail station. I am quite oblivious but I swear her picture on real estate sign is a LOT different than she looks in person.

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