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Old 02-08-2018, 07:19 PM
 
Location: Bay Area, CA
28,220 posts, read 43,497,100 times
Reputation: 18654

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Just checked the data for my city (outside of San Jose), and here's what it says...

Median household income: $121,546
Median house or condo value: OVER $1,000,000

Try doing THAT math, lol.
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Old 02-08-2018, 07:34 PM
 
Location: Bay Area, CA
28,220 posts, read 43,497,100 times
Reputation: 18654
Quote:
Originally Posted by CGab View Post
My point is, OP if you are looking to buy a home in the future, but don't feel you can afford your area then it's time to move to where you can afford it!!
Sometimes that is feasible, other times not so much. What about folks who work in location-specific industries (like high tech in Silicon Valley or entertainment in LA), and simply wouldn't find that kind of work anywhere else? And also, what about the differences in salaries? I did mention that I'm trying to relocate, but already know and accept that my salary will drop significantly. I can seek work anywhere, as a librarian, but there's little chance that I'd earn the $84K I get here... more likely I'd be earning between $50-60K, if I'm lucky, which may or may not be equivalent when you factor in the COL differences.

So you do have to consider those factors, and do the math on salary cut vs lowered housing/expenses. Simply moving somewhere cheaper is only an easy solution if you're retired, work from home, or somehow struck gold and found a new job (in the cheaper region) with equal pay. Oh yeah, and if you have enough cash to actually fund that move. Moving ain't cheap!
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Old 02-08-2018, 08:54 PM
 
Location: Saint John, IN
10,647 posts, read 3,324,377 times
Reputation: 12754
Quote:
Originally Posted by gizmo980 View Post
Sometimes that is feasible, other times not so much. What about folks who work in location-specific industries (like high tech in Silicon Valley or entertainment in LA), and simply wouldn't find that kind of work anywhere else? And also, what about the differences in salaries? I did mention that I'm trying to relocate, but already know and accept that my salary will drop significantly. I can seek work anywhere, as a librarian, but there's little chance that I'd earn the $84K I get here... more likely I'd be earning between $50-60K, if I'm lucky, which may or may not be equivalent when you factor in the COL differences.

So you do have to consider those factors, and do the math on salary cut vs lowered housing/expenses. Simply moving somewhere cheaper is only an easy solution if you're retired, work from home, or somehow struck gold and found a new job (in the cheaper region) with equal pay. Oh yeah, and if you have enough cash to actually fund that move. Moving ain't cheap!
I already addressed that in an earlier post. No itís not feasible for all, but sometimes living in a lower COL state makes more sense even with s lower salary! We happen to live within 30 miles of Chicago so the majority of people work there and earn higher salaries, but live in NW Indiana where homes, property taxes and taxes overall are much less instead of living in Illinois.
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Old 02-08-2018, 10:53 PM
 
Location: Sydney Australia
597 posts, read 303,249 times
Reputation: 868
It is certainly a world wide problem. Saw a friend this morning whose daughter, aged 40, and her partner, are living in a one bedroom apartment with their toddler. They own the apartment and both have professional jobs and are reluctant to move further out into the suburbs because of the commute time. They will have to choose between space and commute time, like everyone else. But the generation older than them would have easily bought a house with a yard. It is the last five years that has seen the prices skyrocket out of all proportion to income.
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Old 02-09-2018, 04:59 AM
 
Location: The Triad (NC)
26,878 posts, read 57,960,239 times
Reputation: 29317
Quote:
Originally Posted by gizmo980 View Post
Sometimes that is feasible, other times not so much.
Meh. Feasible is one of those words with a flexible or variable definition.
But if you can't afford to be there, doctor or burger flipper, you go where you can afford to be.
Even if that is inconvenient or has some expense you don't like.
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Old 02-09-2018, 06:58 AM
 
3,052 posts, read 1,216,716 times
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Quote:
Originally Posted by American Expat View Post
Since he's not saying, I'll just venture a WAG....SoCal.
The OP has to be within 20 minutes of his work. There are plenty of areas in the US where the median home price is $600K with high taxes within a small radius.

Many NYC suburban areas have that level of taxation, and also in Boston. A lot of the north Chicago suburbs are also quite pricy with high median home prices and high taxation. The DC area is also quite expensive as is Seattle. The list goes on when we are talking about compact geographic areas.
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Old 02-09-2018, 07:57 AM
 
7,843 posts, read 11,154,564 times
Reputation: 10085
Quote:
Originally Posted by aslowdodge View Post
What am I not getting?
You make 180k a year and you can't afford a 600k house?
I wouldn't buy a 600,000 thousand dollar house on 180 a year.
Unless I was making that in my 20s and and was pretty sure my
income was going to keep going up.
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Old 02-09-2018, 08:33 AM
 
Location: NY/LA
3,091 posts, read 2,557,340 times
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Quote:
Originally Posted by Giesela View Post
I wouldn't buy a 600,000 thousand dollar house on 180 a year.
Unless I was making that in my 20s and and was pretty sure my
income was going to keep going up.
He's just starting his career as a physician, so it's likely his income will be going up.
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Old 02-09-2018, 09:03 AM
 
Location: Paranoid State
12,685 posts, read 9,455,990 times
Reputation: 14953
Quote:
Originally Posted by gizmo980 View Post
Welcome to California, I guess?

I live in the Bay Area, where median home prices are well over $900K in most neighborhoods
Then there's Palo Alto. Here's what $1.7M buys you:

https://www.zillow.com/homes/817-%26...,-CA-94301_rb/

Then there's this for $1,879,000M but be prepared to bid way over asking price:

https://www.zillow.com/homes/468-E-C...,-CA-94306_rb/

Or this for $2,328,000: https://www.zillow.com/homes/3519-Em...,-CA-94306_rb/


This one is clearly a steal: https://www.zillow.com/homes/629-Gle...,-CA-94306_rb/
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Old 02-09-2018, 09:08 AM
 
939 posts, read 405,684 times
Reputation: 2300
Quote:
Originally Posted by BostonMike7 View Post
I live in a similar HCOL area. I guess I might be one of "these people" who is buying that type of home. Our household income is 3X that of the state median and houses here are in the $500-600+ range. Inventory is low, and the bidding is competitive.


You need a down payment, pure and simple. That's the only way to bring mortgage costs down enough to be able to comfortably live. Many people obtain such a down payment through the sale of their first starter home, and roll the proceeds over into the purchase of their next. I don't have hard numbers, but I'd say 20%+ down is pretty common for this particular area.


So, in order for us to do it....I had to write a pretty big check up front.
Yes. Why are you calculating this without a down payment? Paying PMI is absolutely stupid, especially given your description of your economic situation. Put away for a down payment for a few years and then mortgage the remaining 80%.
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