How can so many people in California afford multi million dollar homes? (Huntington Beach: fit in, lease)

[nullgeo]

I bought my first home, in one of the best neighborhoods in Seattle, for $16,500 in 1970. I still own it and rent back to a couple of my kids. While I re-fi'd a couple times and built a second story, etc., before the bust it was appraised at $850,000 ... after bust now still about $550,000. I bought island waterfront in the San Juans, Puget Sound, before the biggest rate of jump and built two small cabin style homes, for me and rental (now rent both), and nearly tripled value in 12 years in spite of the market collapse.

That's how it's done. I wasn't out to make money. I have never earned much money, salaried or self-employed ... yet my properties, bought with good timing and held make my net-worth strong. I am also worth considerably more than the two properties listed in other compensations I earned, though never have taken even the equivalent of $50K a year in earnings in my life. I support 3 people on less than that still. I guess I could be considered a millionaire though I live at near poverty level.

Don't have to be earning gobs of money to be financially stable.

One of my best friends lives as I do, in his van and on his boats. He owns 7 fairly small and inexpensive rental properties -- 4 of them are actually well cared for trailer homes -- in a smallish town. All paid for by tenants who are happy with his rates and service. This friend raised his family of four in a bread truck, and on several boats (a couple of which he built himself) in places from Hawaii to Mexico to San Francisco Bay to Puget Sound San Juans. One of his kids is a nurse, the other, without any college, is a software engineer in Silicon Valley area. Both kids home schooled traveling / living on boats.

There is still more than one way to skin a cat and live a good life and retire with enough to be secure.

[andrewzimber]

Originally Posted by YoungTraveler2011

i understand that there are a lot of artists and stuff living there but seriously, every other house you see is 1kk............

what the hell do these people do.....

A lot of people in the area were I live have land passed down.
I am 29 and bought my first house a year ago.
It is worth around 800K it's in Huntington Beach, CA.
My brother and I also have land passed down to us from our great grandfather.
We have 12 acres of land in Newport Coast, CA it is now valued around $40mil.
I have 50% ownership and my brother has the other 50%.
We don't consider ourselves wealthy because of our land though.
Are land is going to be untouched by us and passed down to future generations.
My brother and I live a happy/stable life and we don't need the value of our land to help us.

[ponyupgrl]

Originally Posted by andrewzimber

A lot of people in the area were I live have land passed down.
I am 29 and bought my first house a year ago.
It is worth around 800K it's in Huntington Beach, CA.
My brother and I also have land passed down to us from our great grandfather.
We have 12 acres of land in Newport Coast, CA it is now valued around $40mil.
I have 50% ownership and my brother has the other 50%.
We don't consider ourselves wealthy because of our land though.
Are land is going to be untouched by us and passed down to future generations.
My brother and I live a happy/stable life and we don't need the value of our land to help us.

Wait did you for real create an account to post this on a 5+ year old thread?

[Perma Bear]

Originally Posted by SportyandMisty

Interest rates are largely irrelevant. Most people who buy $1MM to $10MM homes just pay cash. I did - why bother with a mortgage when the opportunity cost of money is so low.

Yeah, next time I go back to the 1950s I'll buy 10 houses.

[Perma Bear]

Originally Posted by andrewzimber

A lot of people in the area were I live have land passed down.
I am 29 and bought my first house a year ago.
It is worth around 800K it's in Huntington Beach, CA.
My brother and I also have land passed down to us from our great grandfather.
We have 12 acres of land in Newport Coast, CA it is now valued around $40mil.
I have 50% ownership and my brother has the other 50%.
We don't consider ourselves wealthy because of our land though.
Are land is going to be untouched by us and passed down to future generations.
My brother and I live a happy/stable life and we don't need the value of our land to help us.

Did you trip on a suitcase filled with gold bullion too? You're literally saying you're not rich when you're in the top 1%.

[expatCA]

Originally Posted by Perma Bear

Did you trip on a suitcase filled with gold bullion too? You're literally saying you're not rich when you're in the top 1%.

Only on paper. The truly Rich also have a LOT of cash and quickly convertible assets.

[pacific2]

Originally Posted by andrewzimber

A lot of people in the area were I live have land passed down.
I am 29 and bought my first house a year ago.
It is worth around 800K it's in Huntington Beach, CA.
My brother and I also have land passed down to us from our great grandfather.
We have 12 acres of land in Newport Coast, CA it is now valued around $40mil.
I have 50% ownership and my brother has the other 50%.
We don't consider ourselves wealthy because of our land though.
Are land is going to be untouched by us and passed down to future generations.
My brother and I live a happy/stable life and we don't need the value of our land to help us.

So, what are the annual property taxes, who pays them, and how?

[Perma Bear]

Originally Posted by expatCA

Only on paper. The truly Rich also have a LOT of cash and quickly convertible assets.

It doesn't matter whether it's on paper or not you are rich. You can afford an 800k house for gods sake.

[payutenyodagimas]

you are rich if you don't need to work, whether you have passive income coming in or properties to sell.


if you still need to work whether 5, 6, 7, 8 figure income, you are just like everybody else

[Perma Bear]

Originally Posted by payutenyodagimas

you are rich if you don't need to work, whether you have passive income coming in or properties to sell.


if you still need to work whether 5, 6, 7, 8 figure income, you are just like everybody else

I could double or triple my net worth and live off dividends in the Phillipines. Does that mean I'm rich? That's a preposterous definition.