Where to buy (house/condo) for $300k? (housing market, market)

[SOON2BNSURPRISE]

If Oxnard isn't too much of a commute he may want to consider it. I know plenty of people that make that commute and survive. Could even get a little place near the beach in Port Hueneme or even a home in Port Hueneme for under $300,000 and take the PCH down. Heck he could drive to your place in Malibu from Port Hueneme and it wouldn't kill him. If he is used to the Phoenix commute problems this may not be something that he is against. I did see a condo in Port Hueneme with a partial Ocean view listed at $199,000 with 2 bed 2 bath.

In Oxnard at the Riverpark development he can find a new 4 bed 4 bath for under $300,000. They have several commuter vans that head into the LA area. Also the Metro Rail leaves Oxnard and heads into LA.

[JonathanLB]

Originally Posted by JohnG72

For the parts of LA they would be looking at, you also cant really ignore the fact that $300K buys at most an 1100 sq ft condo. Perhaps if he is willing to take on a risky part of Van Nuys or North Hills, or a very blue collar area of central/south LA, he can get a house up to around 1500 sq ft.

You say that like it's small. A 1,100 sq. foot condo is not small at all, that's if anything above average. Most condos are around 800 to 1,000 sq. feet.

You can absolutely get a nice condo for around $300,000. In my building you're looking at $360,000 for something like mine, 920 sq. feet, but there are other buildings in downtown that are nice where $300K will get you in. I'm assuming there are cheaper prices elsewhere too as downtown is one of the most expensive areas to live in. Our rental prices are still the highest around basically, and this building rents higher than anywhere else in downtown. There have to be some other good deals out there.

In fact I found a townhouse in Burbank I saw listed, with another similar one, about 700 sq. feet for $150,000.

I'm also looking to buy something like that, something small and cheap, sell this thing, move to Vegas, and maintain a small condo here somewhere.

[JohnG72]

Originally Posted by JonathanLB

You say that like it's small. A 1,100 sq. foot condo is not small at all, that's if anything above average. Most condos are around 800 to 1,000 sq. feet.

You can absolutely get a nice condo for around $300,000. In my building you're looking at $360,000 for something like mine, 920 sq. feet, but there are other buildings in downtown that are nice where $300K will get you in. I'm assuming there are cheaper prices elsewhere too as downtown is one of the most expensive areas to live in. Our rental prices are still the highest around basically, and this building rents higher than anywhere else in downtown. There have to be some other good deals out there.

In fact I found a townhouse in Burbank I saw listed, with another similar one, about 700 sq. feet for $150,000.

I'm also looking to buy something like that, something small and cheap, sell this thing, move to Vegas, and maintain a small condo here somewhere.

For OP's purposes you are ignoring HOA's which is probably a large factor as well.

And your downtown LA comparison is beyond ridiculous. Maybe someday that "investment" *cough* will pay off, but right now its absolutely ludicrous. For a similiar size place(857 sq ft) in the more expensive area of downtown(south park) I currently pay $1575 a month. That includes parking, outside gym membership, $1000 move in incentive, some utilities, and no down payment.

Assuming a $60K downpayment on a $300K condo($240K mortgage), excellent credit, and a 4% interest rate, the mortgage payment would be around $1450 a month. Then factor in parking($150/mo and most places downtown do not provide residents parking), an HOA likely at $450-850/mo(cept the ritz which is like $2k), and now your in rarefied air as far as cost. And no, the interest on the mortgage is not going to lead to a tax write off that is significantly more than the standard deducion. At most, it will in effect reduce some of the HOA fee.

As to your building renting out for more...thats just LOL. From what I've seen, the places in South Park with the higher rents are sucking wind as far as getting tennants at those high rents. Or I could just be imagining all those craigslist ads they run. I could also be imagining that someone who can afford $2500(requires a six figure income) a month is really gonna take a <800 sq ft place.

I'll make a final note that I'd just about never ever buy a place this small. Its small, no matter how I cut it. Anyway, the above is just keeping things real....I can't stand the downtown "Buy now" cheerleaders. The people I've talked to have zero clue about vacancy rates and actual rental prices. The saving grace for their purchase is if property values go up, which in the very long term I'm quite certain they will. But were talking 10-15 years out for significant appreciation, and most owners don't tend to talk that kind of timeline. Most talk the 5 year timeline of a flipper.

[1200RT]

Thanks for all the input, folks.

Its just a bit of culture shock for my buddy. Coming from a nice home in AZ to LA is definitely the wrong direction financially.

I always comment on this forum on how expensive it is to live here, coming from other places (especially AZ), but i've never had to deal with it personally.

He came from a very nice home in AZ, paid off (which is where the $300k number came from).

To get what he wants, it looks like he'll probably take that $300k and take out another $300k mortgage - but my part is done - thats all on him.

[Mike121]

Pulling from the last DQNews / LA Times zip code chart, the neighborhoods where houses are actually moving and where the average price is below $325 are

Azusa 91702 $278
Baldwin Pk 91706 $265
Bell 90201 $230
Carson 90746 $325
Carson 90745 $292
Compton 90222 $135
Compton 90220 $190
Compton 90221 $170
Covina 91722 $315
Huntngtn Pk 90255 $238
LA 90018 $280
LA 90062 $205
LA 90037 $205
LA 90011 $170
LA 90016 $267
LA 90003 $164
LA 90047 $243
La Puente 91746 $273
La Puente 91744 $245
LA/AugFHw 90059 $133
LA/AugFHw 90044 $180
LA/East LA 90022 $235
LA/ElSereno 90032 $244
LA/Firstn Pk 90001 $178
LA/Glassell 90065 $303
LA/VPk/WH 90043 $260
LA/Watts 90002 $143
Lancaster 93534 $90
Lancaster 93536 $195
Lancaster 93535 $120
Littlerock 93543 $95
Long Beach 90810 $250
Long Beach 90805 $260
Lynwood 90262 $236
N Hollywd 91606 $318
Norwalk 90650 $280
Pacoima 91331 $250
Palmdale 93591 $75
Palmdale 93551 $207
Palmdale 93552 $155
Palmdale 93550 $120
Panorama C 91402 $285
Paramount 90723 $210
Pico Rivera 90660 $287
Pomona 91768 $215
Pomona 91767 $235
Pomona 91766 $213
Reseda 91335 $308
Sn Fernando 91340 $230
South Gate 90280 $253
Sylmar 91342 $323
Torrance 90501 $320
Van Nuys 91405 $320
Whittier 90602 $323
Whittier 90606 $280
Whittier 90605 $305

[Charles]

Originally Posted by 1200RT

it looks like he'll probably take that $300k and take out another $300k mortgage.

This information drastically changes this thread. We're going budget $300K to $600K.

[1200RT]

Originally Posted by Charles

This information drastically changes this thread. We're going budget $300K to $600K.

Yeah. That opens up a lot of areas that I'm familiar with.

[justinfreeman1974]

[FONT=Verdana]I am a new Real Estate agent at the Rodeo Office in Woodland Hills just north of Los Angeles and even I am unable to buy the type of house my wife and I would like in the area we would like at this time. My wife and I rent a 1400 Sq. Ft. home in the city of Winnetka and we pay $1,815.00 a month. We rent from a friend and the local homes in my area rent for about $2,300.00. I feel home prices are going to drop between 8-10% in the next year depending on the employment rates. I would recommend renting for a while to you familiarize yourself with the area and find a place you would feel comfortable living in. Homes are not cheep and you don’t want to make the wrong decision.[/FONT]

[CA4Now]

Originally Posted by JonathanLB

You can absolutely get a nice condo for around $300,000...

That's true but one has to factor in the surrounding area. It doesn't really matter if the condo itself is nice if the neighborhood isn't so nice (have seen plenty in that category). Also, here's another concern in regard to condos that wasn't really an issue a few years ago:
Condo, co-op and town house owners could end up paying their neighbors' bills - latimes.com

[mrsltd]

Originally Posted by justinfreeman1974

I am a new Real Estate agent at the Rodeo Office in Woodland Hills just north of Los Angeles and even I am unable to buy the type of house my wife and I would like in the area we would like at this time. My wife and I rent a 1400 Sq. Ft. home in the city of Winnetka and we pay $1,815.00 a month. We rent from a friend and the local homes in my area rent for about $2,300.00. I feel home prices are going to drop between 8-10% in the next year depending on the employment rates. I would recommend renting for a while to you familiarize yourself with the area and find a place you would feel comfortable living in. Homes are not cheep and you don’t want to make the wrong decision.

I'm sure you know this (??), but Winnetka is a community within the City of Los Angeles, albeit in the San Fernando Valley.