Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
In what part of SoCal is the rent vs. mortgage spread only $300/mo unless you put $250k down?
I live in San Gabriel Valley (Pasadena area). You can still get a nice condo or small house for $375,000-400,000, which would be about an $80,000 down payment (20%) and your payment would probably be around $1,800 - $1,900 a month. This is just off the top of my head....so the figures may be slightly off.....but you definitely don't need $250,000 down to get a nice place.
mmmmm...my wife, daughter and I moved outside of Ithaca, NY the end of July from Simi valley, and we just love it out here. But then again we are winter people, we hate the heat, and enjoy being in snow and activities pertaining to snow.
People here are nicer, very liberal open, and friendly, and so willing to help just because. Very safe as well. I've never lived anywhere in CA (born and raised) that I felt completely safe. Sure, there were some safe NEIGHBORHOODS, but it never truly was. Here we all for once feel totally safe. People leave their cars running, going into stores, front doors are wide open. And sure it gets hot and humid sometimes, but there are actually breaks in the weather, like rain that will cool it down for a few days, instead of months straight of 90+ heat, like in CA
Plus housing is cheap, and so many FREE things to do out here, if you love the outdoors. The outdoors is just outside your doorstep. It truly is God's country out here.
I'm currently living in Huntington Beach (Sea Cliff area), two blocks from PCH, but I'm restless and have decided to enter the fray in the downtown real estate market.
I'm an attorney transitioning to the real estate business full time. I worked in traditional legal practice both as a litigator and transactional specialist (in both SoCal and Atlanta) but simply did not enjoy either very much. I started doing real estate closings for a change in pace, and opened an escrow company in OC and liked it much better. While in escrow, I observed that the dude making all the money is the broker, so I got my broker's license, joined the local board, became a member of the grievance/ethics committee and arbitration panel to better understand the industry and "market mentality", sold several homes in the past year and now I've moved on to opening my own brokerage serving the downtown area.
If you work hard and smart, commission/contingency pay is always better than a straight salary, even for an attorney.
A good comparison between making money in LA and in Atlanta is as follows:
1. As an attorney: you can charge double to triple in LA what you can demand in Atlanta for the same work
2. As a closer/escrow company: in Atlanta I earn no more than $900 per closing, but in California I average at least $2,000 with less liability and less work on my part
3. As a broker, well, 2%-3% commission for the average $800,000 home in LA is much better than 3% for the average $300,000 home in Atlanta for the same amount of effort, right?
USC 13-0 Undefeated National Champions
Dateline New Orleans, 1/7/2008: Tonight, the undefeated #1 ranked USC Trojans outlasted the hometown #2 ranked LSU Tigers 31-28 in the BCS College Football championship game...
Thank you for the detailed answer.
You are still comfortable with raising kids in LA? Public schools? Private?
I don't doubt your numbers. I do question the value a person gets for their net return.
There are some niches that can thrive in LA. I guess it's not for me.
I am interested how it is for you with kids - especially considering the "If you work hard" part.
Please re-read the post to see your answers. As usual, people can't understand why someone would act different than them, and then when presented with reasons, ignore them.
Another thread down the drain.
Whhheeeeeeeee!!!!
Most of the people who have responded are not under the same circumstances and probably already had their home pre-boom...i.e. the person with a $1600 mortgage. I am specifically inquiring on who would buy high now under specific circumstances in regards to income and current home prices and what makes it worth it to live in LA since there is little money left for other investing in retirement, traveling, etc. It is more about the financial aspect of it. ok
You are still comfortable with raising kids in LA? Public schools? Private? I don't doubt your numbers. I do question the value a person gets for their net return.
There are some niches that can thrive in LA. I guess it's not for me.
I am interested how it is for you with kids - especially considering the "If you work hard" part.
I would be gravely disappointed if SC did not win the NC this year - if there was a team that had all the players, this would be it.
To be honest, I would not raise my kids in downtown LA simply because there are no schools in downtown, and the nearby ones are pretty unacceptable. If I wanted to raise my kids near downtown, we would be living in South Pasadena where I can take the Goldline and avoid traffic. Other than South Pas, I'd pick the Southbay (Redondo, PV, RH) or Glendale (where I grew up) as another place to commute to downtown LA.
Just to compare, Atlanta has one of the worst public school systems in the country, and if you live in the Atlanta metro area and you make over $150,000 a year, you most likely are sending your kids to one of the many good private schools in Atlanta.
However, I would not buy a home anywhere in LA/OC at this time - too much change in the market. If my business takes off in LA as I expect, it would be at least 3 years before I'm ready to buy and then I would be shopping for homes within a 10 minute ride to the nearest metrolink/metrorail.
Most of the people who have responded are not under the same circumstances and probably already had their home pre-boom...i.e. the person with a $1600 mortgage. I am specifically inquiring on who would buy high now under specific circumstances in regards to income and current home prices and what makes it worth it to live in LA since there is little money left for other investing in retirement, traveling, etc. It is more about the financial aspect of it. ok
Your question is a good one - there are a large number of people who are indeed buying in Downtown right now. Take a look at the Roosevelt Lofts in Downtown - a restored historic building that attracts upscale residents. Prices range from $600,000 to a little over $1 million for units from 800sq.ft to 1300 sq.ft. HOA is not cheap at around $.60 per sq.ft. That's a lot of money for very little home, but they're already 75% sold (occupancy to start by this December). Who are these people who make $200,000 to buy a 1000sq.ft. loft?? Similarly, there are at least 2 other lofts in the same price range that's come to market in the last 3 months and all have sold over 50%.
I would not buy at these inflated prices, but apparently many people are. Maybe they are speculators waiting to flip them 12 months from now?
Your question is a good one - there are a large number of people who are indeed buying in Downtown right now. Take a look at the Roosevelt Lofts in Downtown - a restored historic building that attracts upscale residents. Prices range from $600,000 to a little over $1 million for units from 800sq.ft to 1300 sq.ft. HOA is not cheap at around $.60 per sq.ft. That's a lot of money for very little home, but they're already 75% sold (occupancy to start by this December). Who are these people who make $200,000 to buy a 1000sq.ft. loft?? Similarly, there are at least 2 other lofts in the same price range that's come to market in the last 3 months and all have sold over 50%.
I would not buy at these inflated prices, but apparently many people are. Maybe they are speculators waiting to flip them 12 months from now?
Re: USC...OMG! I feel like I'm talking to my husband here! LOL! Whenever USC loses a game, he turns on his heel with a beaten-dog look on his face and goes to bed. Poor dude. I remember when his old boss was replaced with a new guy. "He's a Bruin," my husband said, "...but he's cool," he added, putting his hands up in a white-flag gesture.
As to the above, I agree. I'll bet it's people who want to flip the homes that are doing a large chunk of the buying right now.
p.s. Fight on, bluh bluh, SC, something something, to victory. Sorry--I'm not a Trojan--just a Trojan supporter!
mmmmm...my wife, daughter and I moved outside of Ithaca, NY the end of July from Simi valley, and we just love it out here. But then again we are winter people, we hate the heat, and enjoy being in snow and activities pertaining to snow.
People here are nicer, very liberal open, and friendly, and so willing to help just because. Very safe as well. I've never lived anywhere in CA (born and raised) that I felt completely safe. Sure, there were some safe NEIGHBORHOODS, but it never truly was. Here we all for once feel totally safe. People leave their cars running, going into stores, front doors are wide open. And sure it gets hot and humid sometimes, but there are actually breaks in the weather, like rain that will cool it down for a few days, instead of months straight of 90+ heat, like in CA
Plus housing is cheap, and so many FREE things to do out here, if you love the outdoors. The outdoors is just outside your doorstep. It truly is God's country out here.
Places like Ithaca and most other parts of New England, as well as Great Lakes states like Wisconsin and Minnesota, have consistently ranked high on annual "Best Places to Live" lists for good reason - but unless you're White, those areas are not appealing options to minorities. As a minority, I am limited to where I can raise my family without concern for prejudice and stereotypes that would make growing up difficult for my kids. Areas most favorable for minority families are California, Texas, Florida, NYC, Atlanta and maybe Chicago.
What makes it "worth it" to live in LA is not really a financial question.....at least I don't see it as one. People think its worth it for a variety of personal reasons. I think that some people view real estate as an integral part of their lives----emotional, financial, and practical and LA is where they call home. My Mom is semi-retired and her method of making money and living the life she wants is to never stop buying property. She owns more than a million in property and uses that property for leverage to buy other properties, rental income, etc. If you are smart with real estate it can provide a lot of flexibility and freedom....but you have to have the intuition and skill to do well. I've tried to follow in my mother's footsteps and am on my second house. I always buy something that is undervalued (you can find them in any market). They are the properties with intrinsic value that is hard for others to recognize due to cosmetic or other defects. This adds up to a big discount for you. Example: historic spanish colonial revival with high beam ceilings that no one wanted b/c of the shag carpet, dark paneling ala 1970s, and the overwhelming smell of pee. Purchased for $450,000 and restored for $40,000 the home is worth $650,000 and is currently rented for $2,300 a month which covers its payments. I understand that this is not typically the way people buy real estate. They look for the "perfect" house and pay what they have to to get it. I NEVER buy something that is already fixed up b/c you are paying a premium for someone elses taste and work/improvements. I prefer to put in my own sweat equity so that I know I have added value to my property.
If you are uncomfortable buying and owning real estate then by all means rent. Being in the real estate market isn't for everyone.
Who would buy a small 1000sf, 3 bedroom, 1 1/2 bath, small backyard, 1960's home in an okay LA neighborhood and average schools for over $550K with an annual income of $125K or less gross and let's say $20K for a down payment and why???
I'm curious what makes it worth it to buy a home in LA under these circumstances since LA isn't exactly paradise as some would like to believe.
We decided it wasn't worth it ... although for us, the choice was either stay in Orange County where my husband grew up and pay a fortune to live there or find a cheaper alternative. Moving out of state was an option but, my husband does have a good job which has great retirement so, we didn't want to give that up. Plus, even with all of it's downsides, we still love California.
I've lived in a lot of places: Louisiana, Texas, North Carolina, Virginia, Washington, D.C., New York, San Francisco and Orange County. It got to the point that I didn't really care where I lived as long as I had a cheap mortgage on a house that I liked and was making good money.
So, we moved out to the California desert. I'm sure some people will say it totally sucks but it's worked out pretty well for us.
I've lived in the cheap towns mostly in the south and the east coast but, the the problem there is that you can also be stuck with stagnant wages so, the cheaper cost of living isn't always beneficial there. On the flip side, you go to San Francisco and the wages are great but the cost of living pretty much takes all of that away.
So that's why the desert appealed to us. We picked up a house for $150K, and there's lots of growth out here ... as an RN I'm making just as much as RN's in San Francisco at over $100K a year.
No ... it's definitely NOT LA or San Francisco but ... as a doctor I work with said the other day: money does make life so much easier.
Last edited by sheri257; 08-23-2007 at 02:55 PM..
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
