Affordable homes in Southern California?

[pacific2]

Originally Posted by jdusmc

If you make 100000. or 120,000. you can live very nice.... very nice. People in California like to make is sound like you have to be a millionaire.. Not true, come on and you can find a beach property for 300,000. walk to beach.. Fact.
No I am not a realtor.

We are not talking fantasy here, where is this nice $300,000 beach home located?

[Charles]

Originally Posted by pacific2

We are not talking fantasy here, where is this nice $300,000 beach home located?

Recent sales under $300K, within maybe 1/4 mile of the beach, roughly $350/sqft to $450/sqft:

25014 TERRACE LANTERN #33, Dana Point, CA 92629 | MLS# P694345

218 MONTE VISTA Ave, San Clemente, CA 92672 | MLS# S603122

418 HARDING St #6, Newport Beach, CA 92661 | MLS# P748035

230 LILLE Lgt #205, Newport Beach, CA 92663 | MLS# U10003050

2000 PACIFIC COAST Hwy #204, Huntington Beach, CA 92648 | MLS# S583645

16872 PACIFIC COAST Hwy #101, Huntington Beach, CA 92649 | MLS# S613198

102 SCHOLZ Plz #137, Newport Beach, CA 92663 | MLS# P728405

[pacific2]

Thanks, but the OP specifically said he/she is not looking for a condo, but a house:

I've always wanted to live in California, but it may not be worth it if the only thing I can afford is a condo or run-down house.

[lrmsd]

Originally Posted by mysticaltyger

Well, on that income it's difficult but far from impossible. It really depends a lot on YOU. I have a friend who is a psychiatrist who lives in San Francisco (which is even more expensive than SoCal). He lived in an ordinary 1BR apartment (rent was around $1100 or $1200 a month) for 2 years so he could pay down his student loans, and save money for a house, while still contributing to his 401k. He was making around 160K per year, but also had 6 figure student loan debt. He managed to pay them off. He still has his 10 year old Honda and doesn't plan on getting another car anytime soon.

He finally bought a swanky studio condo in San Francisco last December. I don't know how much it was, but I'm sure it was at least 450K. I know the monthly condo fees are like $650 for his building. This is a nice condo right in the heart of downtown SF. He had to give up living space to be there. By the way, he didn't buy the condo until age 40 (he went to med school later in life).

The point being, depending on whether you have student loans or not, you could easily live in a decent 1BR apartment, and save 25K to 50K or more per year, and have a very fat down payment for a decent (but definitely not luxurious) place in 3 years.

If you expect to live in a flashy and large house in a premium area, forget it. However, if you can be happy with a pleasant 3BR house in a decent area and are willing to save aggressively for it for a few years, you'll be fine. With your income, you DO have the ability to save aggressively, even if you have student loans.

One thing is certain, though....you will have to make some lifestyle trade offs in any desireable part of California that you would not have to make in many other metro areas. I think the real challenge comes for those who marry and have kids and want their kids to be in a top school district but doesn't want both parents working. That's where the really tough trade off comes in California. Top school disctricts typically require 2 six-figure incomes in order to avoid being house poor. My psychiatrist friend I used as an example is gay, so he doesn't care about kids and school districts and all that, so no real trade off for him....but since most people aren't gay, well then the equation changes.

By the way, have you ever read The Millionaire Next Door? The authors specifically talk about how, in their research, they found doctors (and lawyers) to be big overspenders with little money saved. So if you are talking to other doctors about the subject of money management, you might not be getting the best advice. Whatever you decide, I highly recommend the book.

Amazon.com: The Millionaire Next Door (9780671015206): Thomas J. Stanley, William D. Danko: Books

SO funny that you mentioned this book-I just borrowed it from the library here in san diego-as i happened to see it on the shelf...I agree-it's a great read....

On this subject, to the OP: we live in a 'swank' area of SD; we rent a 2 bedroom apt [nice with lots of amenities], and we make less than 50k per year. I stay home b/c we homeschool [funny-we aren't even using the 'top school district' we live in], and we drive 10 year old plus cars. There are plenty of people doing this to make ends me, and enjoy life on their own terms. Also, many older family members of my spouses, bought their homes years ago, prior to the insane boom in the early 2000's.

I was going to say that it's easier to drive an old beater and be 'frugal' in SFO-cuz it's more crunchy there, and you can live in Marin and see millionaires in very old volvo wagons...and in SFO you can be sitting next to someone on the public bus and not know if they're homeless or a dot com CEO [this is true-i lived in sfo, as well].
BUT...........it's actually becoming trendy now to live frugally everywhere. So cal does have more of an 'image issue'-but plenty of folks I k now live on what we make; it's tight, but point is: You can certainly live well on what YOU would be making, and save for a condo/house.

Also, if you've 'always wanted to live in CA', then do it. Rent for awhile and see how you like living in CA. It may not even be the place you want to own/live for long-term. At least you'd have the experience to make that decision. But saying no to something b/c of what you might want down the road, doesn't make sense to me. Just my two cents.

The post i'm quoting is very accurate, in my experience.

Wish you well-
(:

[lrmsd]

Originally Posted by mysticaltyger

Well, on that income it's difficult but far from impossible. It really depends a lot on YOU. I have a friend who is a psychiatrist who lives in San Francisco (which is even more expensive than SoCal). He lived in an ordinary 1BR apartment (rent was around $1100 or $1200 a month) for 2 years so he could pay down his student loans, and save money for a house, while still contributing to his 401k. He was making around 160K per year, but also had 6 figure student loan debt. He managed to pay them off. He still has his 10 year old Honda and doesn't plan on getting another car anytime soon.

He finally bought a swanky studio condo in San Francisco last December. I don't know how much it was, but I'm sure it was at least 450K. I know the monthly condo fees are like $650 for his building. This is a nice condo right in the heart of downtown SF. He had to give up living space to be there. By the way, he didn't buy the condo until age 40 (he went to med school later in life).

The point being, depending on whether you have student loans or not, you could easily live in a decent 1BR apartment, and save 25K to 50K or more per year, and have a very fat down payment for a decent (but definitely not luxurious) place in 3 years.

If you expect to live in a flashy and large house in a premium area, forget it. However, if you can be happy with a pleasant 3BR house in a decent area and are willing to save aggressively for it for a few years, you'll be fine. With your income, you DO have the ability to save aggressively, even if you have student loans.

One thing is certain, though....you will have to make some lifestyle trade offs in any desireable part of California that you would not have to make in many other metro areas. I think the real challenge comes for those who marry and have kids and want their kids to be in a top school district but doesn't want both parents working. That's where the really tough trade off comes in California. Top school disctricts typically require 2 six-figure incomes in order to avoid being house poor. My psychiatrist friend I used as an example is gay, so he doesn't care about kids and school districts and all that, so no real trade off for him....but since most people aren't gay, well then the equation changes.

By the way, have you ever read The Millionaire Next Door? The authors specifically talk about how, in their research, they found doctors (and lawyers) to be big overspenders with little money saved. So if you are talking to other doctors about the subject of money management, you might not be getting the best advice. Whatever you decide, I highly recommend the book.

Amazon.com: The Millionaire Next Door (9780671015206): Thomas J. Stanley, William D. Danko: Books

Also, the reason why said author found Drs/Lawyers to be 'big spenders', is largely b/c their lifestyle requires that they maintain a certain 'image' in the community. Whereas, teachers and other professionals can and often are expected, to live frugally in middle class neighborhoods, drs/lawyers are given more credibility/seen as successful, if they live in the best areas and drive new, expensive cars.
That was the main reason, in addition to the fact that many drs/lawyers come from families with money and have always maintained a certain lifestyle.

The book is very elementary and a bit redundant in it's writing style, and I question some of their 'research', but they do outline some very interesting facts/thoughts about what wealth is, and how to maintain it.

[lrmsd]

Originally Posted by pacific2

You can get a decent house in a nice Orange County neighborhood within that salary range, provided you are either single, or just have one dependent; and you are not saddled with debt. It would be a different story if you had a family of three or four to support on your salary alone.
Your income is well above the median household income for Orange County.
Check the “advanced search” feature of homeseekers.com to find houses in your desired price range and locale.
Good luck!

I DO think you have to be creative and think long-term, as well.
OP could buy a place and rent out a room to someone, for a few years, to supplement the mortgage...or, rent a room in a nice home, nice area, in the beginning, to get a feel for the area and know where he/she wants to be. Or, simply rent an apt or condo, living the so cal life for awhile-then move on and buy a home somewhere else that you may want to live. [you may not find OC is 'your place' on the planet, you know?]

I have no idea where OP lives now, or if he/she has visited OC and CA prior...so i'm just making suggestions based on unknown variables. And CA is not always a place to do the 'traditional American dream' route-sometimes yo uhave to do it in stages, or in an unconventional way....get creative, etc., if you want it bad enough. For some, that's a ridiculous thought; for others, it's reality.