How do people get by financially in California? (credit card, houses)

[LivingLikeAGradStudent]

If you're good at your job, and it's one that pays better in California, that's a start.
Live below your means.
Look at your housing situation as just that and not an investment. A well-managed retirement account is much more flexible and, in general, more longlasting than trying to time the housing market.

[Charles]

Originally Posted by BayAreaHillbilly

There are four main ways I see people dealing with it:
1) They are already equipped with hereditary wealth, and buy whatever they want, when they want. They are often land lords of outstanding properties that they rent out to other wealthy people and also, often own large tracts of raw land, in addition to the rest of their portfolio.
2) They are pulling seriously high income. They may also exhibit certain aspects of #1 (but a more modest version).
3) They are of modest means and abuse credit to create the illusion of comfort and plenty.
4) They live in the least "sexy" parts of the state.

People who are not part of these 4 situations are likely making some sort of significant sacrifice in order to be here.

I think there is one other explanation that really should have been mentioned: People bought when housing prices were more in line with incomes, like 1997 ($120-$150/sqft). Those who bought then, wouldn't need the incomes to support the same house at 2006's ($400+/sqft) or even today's ($250/sqft) prices, though today at $250/sqft isn't that much more expensive than 1997's $150/sqft assuming wages increased around 4%/year - and interest rates are lower today than they were in 1997.

[Mailman]

Originally Posted by jc76

Not to get in your business, but out of curiousity how much was your home in the early 70's???
You probably now own a half a million dollar home or more.
Seems like those who moved to CA pre 1990 have better outlooks on it. Maybe it's because they don't have a $3500. mortgage payment

I believe we paid about $24,000. I recall at the time my payments were about $200 per month, and I paid extra in order to pay off the loan sooner.
Some of my co-workers at the time had payments in the $100 range, and were shocked at what I was paying.
As I'm retired now, there is no way in hell I could afford to move here.

[Wing Feathers]

Live in your car. It's the only way to afford California.

[grapico]

Originally Posted by LivingLikeAGradStudent

If you're good at your job, and it's one that pays better in California, that's a start.
Live below your means.
Look at your housing situation as just that and not an investment. A well-managed retirement account is much more flexible and, in general, more longlasting than trying to time the housing market.

Very true... plus you have more options, more set bills... You can take bigger risks and you can actually cheer yourself on for smart investments or put yourself to blame as opposed to putting everything in the house and being more at will of the market.

[jc76]

Originally Posted by Wing Feathers

Live in your car. It's the only way to afford California.

Tell that to the millions of people living in apartments and homes

[jc76]

Originally Posted by Mailman

I believe we paid about $24,000. I recall at the time my payments were about $200 per month, and I paid extra in order to pay off the loan sooner.
Some of my co-workers at the time had payments in the $100 range, and were shocked at what I was paying.
As I'm retired now, there is no way in hell I could afford to move here.

Man, that sounds cool. I really hope CA someday comes back down to be affordable. Ya know what they say, wish in one hand......

[Greenchili]

Hmmm,lets see, my husband is retired military,so having that as extra income helps,he has a civil service job now. We moved to Lompoc CA 8 yrs ago and bought a 60s fixer upper.Sold two yrs ago,made some $$,bought a new home one yr ago. I dont work outside the home,never have. We live fine. Then again we dont eat out much,or go to movies,etc etc. We are pretty dull I guess But all I can think of is that God takes care of us and has blessed us mightily!

Greenchili

[Charles]

Originally Posted by Greenchili

God takes care of us and has blessed us

I doubt imaginary beings have anything to do with your situation.


YouTube - George Carlin -God bless America

[jc76]

Originally Posted by Charles

I doubt imaginary beings have anything to do with your situation.


YouTube - George Carlin -God bless America

R.I.P George. One of the greats who told it like it is. Glad you posted this, I have yet to see his later stuff before he died.