How do average people afford houses in California? (Los Angeles, Oakland: real estate market, good credit)

[CantWait2Bthere]

Originally Posted by shannon94

You mean jealous? lmao

HA HA...I would rather be human and err .... Pleezzz typos are so damn common...than to be someone who is complaining that they can't afford a home. Gotta go...I have to clean up my nice kitchen after having a house full of guests.

[cigarfanatic]

Originally Posted by Ultrarunner

My neighbors daughter age 22 and her same age husband bought a nice starter home on their own in November 2006.

She graduated with a BSN (Bachelor of Nursing) and he graduated in Administration of Justice. This young couple, aged 22 had multiple job offers... she from every hospital she applied and he from 3 police local departments.

I think if you have a skill in demand that you can do quite well. The Hospital and Police even offered sign-on bonuses which they put 100% towards their down payment. The Police even offered housing assistance if he would have bought a home in the city that hired him.

Hello,

I would like to know the location (city), sq. ft. of home, and price of home if you do not mind. It can be done but I have to say the couple is fortunate enough to graduate young and marry young. This isn't the average around here at age 22.

[Jonah1979]

Here's how an average person in california buys an overpriced house...

You go down to the local bank and take out an interest only loan and worry about how you'll pay for the principal later! That's why there's more forclosures in California that any other state with plenty more to come.

That's the one great thing about economics...it's all about peaks and valleys and the california housing market has peaked before and has crashed.

[EscapeCalifornia]

Originally Posted by Jonah1979

Here's how an average person in california buys an overpriced house...

You go down to the local bank and take out an interest only loan and worry about how you'll pay for the principal later! That's why there's more forclosures in California that any other state with plenty more to come.

That's the one great thing about economics...it's all about peaks and valleys and the california housing market has peaked before and has crashed.

Naw, reverse amortization is where its at. Screw paying all the interest because your house will always appreciate. Keep that payment as low as possible.

[canibeyou]

Originally Posted by logybogy

The most common ways I can think of:

* Your parents or other relatives who bought a house in the 1970's or before die and you inherit their old house

* Your well-to-do parents buy you a house or give you a substantial down payment

* You lie about your income and get a no money down or negative amortization loan on that $500,000 3/2 ranch and pray your income increases

* You live in an outlying area 50 miles or more from major employment centers

* You live in a high-crime area or otherwise undesirable area

* You ditch the single family home dream and live in a cramped condo

I'll first state, I haven't read this entire thread.... but I can say...none of what you listed applies to my husband and I. We rented an apt. for a while (read: 3 years) when we first got married, saved money and bought a very nice home on acreage four years ago. With that said, I retired 5 years ago (when I was 33 years old) and we have absolutely no debt (other than a house payment (which is cheaper than any rent prices I've seen in California.. and that was due to putting a huge chunk of money down when we bought) and your average monthly bills like electric bill, gas bill, water bill....). No car payment (paid cash for our cars and other motorized toys), no credit card bills (pay for everything with cash; no cash... don't buy it). We take vacations all the time; everything from big planned vacations to cool weekend getaways. No, we aren't millionaires; we're probably considered middle class/ average. No outstanding CEO type job or a job requiring a degree or anything. Nothing that would make us any more special than the average person, I'd assume.

What I always have a hard time understanding is a two income household, big house, new SUV's in the driveway and in debt up to their eyeballs. Working so much to afford to pay for the house they're in; to the point where they can't enjoy their house/ yard.... you know, relax.

I hate math. Seriously. I really don't do math at all. I have no words to describe my inability to do math and therfore my loathe of it. So if I can do it... why can't more people???? I simply wouldn't be able to sleep at night if I owed anybody money (and I'm not talking the normal payments like I listed above).

I have met some people that must not be affected by debt like I would be. They have every credit card maxed out, their mortgage payments are outrageous, the cost of gas for their huge cars must hurt the wallet and the list could go on..... and they're sleeping well each night (or, well enough).

It boggles my mind.


Perhaps it helps that we have no kids??? I don't know. I'm just puzzeld that my mathematically challenged brain could put together a plan to have a great set-up like we do and more people haven't.

Sorry... went off topic there a bit.

[fairweathergolfer]

I may have missed this in your list but . . . * You work hard for your money and can afford it.

Originally Posted by logybogy

The most common ways I can think of:

* Your parents or other relatives who bought a house in the 1970's or before die and you inherit their old house

* Your well-to-do parents buy you a house or give you a substantial down payment

* You lie about your income and get a no money down or negative amortization loan on that $500,000 3/2 ranch and pray your income increases

* You live in an outlying area 50 miles or more from major employment centers

* You live in a high-crime area or otherwise undesirable area

* You ditch the single family home dream and live in a cramped condo

[fairweathergolfer]

Exactly!

[quote=Sassberto;785973]You forgot a couple:

- bust your ass for years and years gaining the education and experience you need to have a high paying career.

- marry someone who busted their ass for years and years to gain the experience and education you need to have a high-paying career.

The idea that everyone who owns a home is either on a trust fund or up to their eyeballs in debt is insulting to those of us who worked hard and make enough money to afford a home here.[/QUOTE]

[canibeyou]

Originally Posted by whowants2know

It used to be that people could rent until they saved up enough for the dp; but, now the rents are so out of reach that that option is history. And, because some landlords purchased property as a rental only, they have to charge $1,500++ for a 1-bed apt. The greedy landlords who don't need to, still charge that much to pad their wallets.

Are you upset that a businessman/woman is making money??? I'm confused by the nastiness of this comment. Just because someone is out to make money doesn't make them "greedy"... it makes them wanting to make money... just like yourself. The difference might be is that "the greedy landlord" is his own boss, whereas, you might be employeed by someone/ not your own boss. If I was in the rental business (which I'm not), I'd be in the business of "padding my wallet" as you called it (it's actually called "making money"). Of course... I'd be in the rental business to make money, not to give out free housing to people (and that includes charging just enough to make the mortgage on the rental property). The general public dictates how high rents can go. You have your place priced too high and no one is gonna want to rent it. But instead of the general public telling all the landlords to go hang themsleves, they work it out in their minds what they have to do to get the rent check every month... instead of saying, "No thanks, that's way too high".

It's a mentality I don't comprehend, but it's the same way with how people buy cars nowadays. Forget how much the final cost of the car is gonna be... all anyone is interested in today is, "How much money a month do I have to come up with in order to be able to drive this car".

[eastern]

I Just Moved To This State From Pennsylvania. Plus The Very High Cost Of Almost Everything Here, People Are The Rudest I Have Ever Seen May Be In My Life. You Say :goodmorning " They Do Not Even Care To Answer Back You Say "thank You" They Respond "ahhhh".you Give A Signal On The High Way To Shift To The Other Lane They Speed Up So That You Do Not Move Anywhere. For The First Time I Call 911 And I Get A Recorded Message!!!! Can Anyone Believe This, It Happened Here In Los Angeles.most People Are Ignorants

[montevista1]

here is a good way, purchase a 4plex with 3 friends. A descent fourplex will run you 1-1.2million each person is responsible for 1/4 tax, insurance, mortgage payment. When you sell you get 1/4 of profits, in the meantime you enjoy the 1/4 tax benifits and pay mortgage, tax, and insurance to an amount comparable to rent.