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Old 05-23-2016, 02:34 PM
 
285 posts, read 192,249 times
Reputation: 326

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Quote:
Originally Posted by mixxalot View Post
Coastal metro cities in California are WAY OVERPRICED for buying real estate and rents sky high too.

Inland California cities and towns except for Sacramento are dirt cheap. Redding, Oroville and Modoc are 1/5 cost of large coastal cities like San Diego and San Francisco. Of course the jobs there are super low paying or non existent for the inland cities. Still if you travel or work from home, these can be a better value if you don't mind hotter weather inland than paying a million bucks for a crapshack in San Diego, SF, San Jose or LA.
They are not overpriced.

You can get a very nice home in Los Angeles for $600,000 to $700,000. A couple making $100,000 a year combined can afford it. That is a nurse and a teacher. Not a big deal.

In fact, rents are higher than mortgages. There is a disconnect there but probably because so many young people are willing to roommate, so they pack into apartments. But even studio apartments are like $1,200 in a decent area. I do not get the rents out here. They are getting nuts.
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Old 05-23-2016, 02:36 PM
 
1,851 posts, read 1,478,697 times
Reputation: 1283
Quote:
Originally Posted by Csonka View Post
They are not overpriced.

You can get a very nice home in Los Angeles for $600,000 to $700,000. A couple making $100,000 a year combined can afford it. That is a nurse and a teacher. Not a big deal.

In fact, rents are higher than mortgages. There is a disconnect there but probably because so many young people are willing to roommate, so they pack into apartments. But even studio apartments are like $1,200 in a decent area. I do not get the rents out here. They are getting nuts.
Rents are out of whack everywhere. It's a consequence of the housing crash. Fewer people are in a position to buy, thus rents go up. Once more people are in a position to buy, housing costs will go up (even faster than they are now). It's all about demand.
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Old 05-23-2016, 02:53 PM
 
Location: Boston, MA
8,729 posts, read 7,686,254 times
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Quote:
Originally Posted by IrishIllini View Post
Rents are out of whack everywhere. It's a consequence of the housing crash. Fewer people are in a position to buy, thus rents go up. Once more people are in a position to buy, housing costs will go up (even faster than they are now). It's all about demand.
Huh?

So if demand is low, price is high. And if demand is high, price is high?

Or do you mean if people don't have enough money, price is high and if people have more money, price is still high?

Right now in many cities, we high demand and low supply. It's not all about demand. Supply is vital. If there were substantially more housing in Boston, where I live, price would go down. I would have more choices, so the housing market would have to try to appeal to me more. Unfortunately, it's so hard to get permission to build anything this is unlikely to change.

It's all about demand AND supply.
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Old 05-23-2016, 09:37 PM
 
Location: Great upstate
185 posts, read 128,267 times
Reputation: 99
Portland , Seattle , Denver , all of SoCal and Bay Area . 1200 should be able to get you a nice place in a safe area . 1500 can get you a 20 year old sh1tbox way out in the valley surrounded by tweakers and illegals in la .
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Old 05-23-2016, 11:28 PM
 
4,486 posts, read 2,672,469 times
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Quote:
Originally Posted by bjimmy24 View Post
Huh?

So if demand is low, price is high. And if demand is high, price is high?

Or do you mean if people don't have enough money, price is high and if people have more money, price is still high?

Right now in many cities, we high demand and low supply. It's not all about demand. Supply is vital. If there were substantially more housing in Boston, where I live, price would go down. I would have more choices, so the housing market would have to try to appeal to me more. Unfortunately, it's so hard to get permission to build anything this is unlikely to change.

It's all about demand AND supply.
He's saying sale prices and rents are countercyclical, which is true.

When fewer people can buy, more people rent. The addition renters push rents up.

Good points in your last two paragraphs.
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Old 05-24-2016, 12:46 AM
 
7,706 posts, read 4,569,470 times
Reputation: 8423
Quote:
Originally Posted by Csonka View Post
They are not overpriced.

You can get a very nice home in Los Angeles for $600,000 to $700,000. A couple making $100,000 a year combined can afford it. That is a nurse and a teacher. Not a big deal.

In fact, rents are higher than mortgages. There is a disconnect there but probably because so many young people are willing to roommate, so they pack into apartments. But even studio apartments are like $1,200 in a decent area. I do not get the rents out here. They are getting nuts.
Someone has been playing with online mortgage calculators. There's zero chance that a real world couple making 100K can afford a $600,000 house without someone GIVING them a substantial chunk of cash.
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Old 05-27-2016, 10:08 PM
 
Location: San Francisco Bay Area
12,594 posts, read 15,062,766 times
Reputation: 12139
With 20% down (120K), their monthly payment would be about $2,200. Add property tax ($700 or so) and they are looking at a $2,900 mortgage.

That does not include maintenance, utilities, insurance or other expenses. It could be done, but they would be in a bind every month. Unless they have additional income, they won't get approved unless they have a higher down.

Quote:
Originally Posted by gladhands View Post
Someone has been playing with online mortgage calculators. There's zero chance that a real world couple making 100K can afford a $600,000 house without someone GIVING them a substantial chunk of cash.
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Old 05-28-2016, 04:19 AM
 
7,706 posts, read 4,569,470 times
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Quote:
Originally Posted by ccm123 View Post
With 20% down (120K), their monthly payment would be about $2,200. Add property tax ($700 or so) and they are looking at a $2,900 mortgage.

That does not include maintenance, utilities, insurance or other expenses. It could be done, but they would be in a bind every month. Unless they have additional income, they won't get approved unless they have a higher down.
Assuming a couple making a combined hundred thousand dollars could save $120,000 while paying rent in a high rent market like Los Angeles, I estimate their full monthly mortgage payment, including property taxes and insurance to be more like $3300. That couple does not get approved for that loan, and even if they did they couldn't afford it. So, like I said, someone would have to give them money in order for them to afford even the cheapest house in the aforementioned 600-700k range. Throw a kid in the mix (after all, what childless couple needs a 600k house) and it becomes even more laughably unaffordable. You realistically need to earn about 200k to make that doable.

Sincerely,

Father of two, who spends 30k on daycare/preschool
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Old 05-28-2016, 05:07 AM
 
5,612 posts, read 6,093,359 times
Reputation: 4184
Cities with a high level of amenities are expensive!

St. Louis, Cleveland, Kansas City and Columbus can give you a lot for your money depending on where you live and how you build your life in those cities. At the same time, you will not find a Lincoln Park or Back Bay type neighborhood in either of those cities.

Chicago can be good depending on where you live and what you are looking for. There are suburbs like Joliet that are very average that can give you more value than similar type suburb of Atlanta.
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Old 05-28-2016, 06:34 AM
 
1,804 posts, read 6,284,552 times
Reputation: 1185
Quote:
Originally Posted by mjtinmemphis View Post
Cities with a high level of amenities are expensive!

St. Louis, Cleveland, Kansas City and Columbus can give you a lot for your money depending on where you live and how you build your life in those cities. At the same time, you will not find a Lincoln Park or Back Bay type neighborhood in either of those cities.

Chicago can be good depending on where you live and what you are looking for. There are suburbs like Joliet that are very average that can give you more value than similar type suburb of Atlanta.
You may be right about that!! lol
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