How can you consider $500,000 to be "affordable housing"? (Los Angeles: sale, rent)

[TheRealAngelion]

Originally Posted by desertdawgx

The fact that a 700k home rents for 2500 mo tells you that RE is overvalued and will come down alot as it already is doing.700k homes will sell for 350k soon as the banks will no longer lend money for overvalued RE.California RE booms and busts every 10 to 15 years and this time the bust will be severe.

No way. That would be a market crash for values to drop 50 percent. There would have to be a major economic calamity (like the stock market crashing) for that to happen IMO.

[EscapeCalifornia]

Originally Posted by TheRealAngelion

No way. That would be a market crash for values to drop 50 percent. There would have to be a major economic calamity (like the stock market crashing) for that to happen IMO.

Agreed. As much as I'd like it to happen, I'm not holding my breath or planning my life around it.

[Cattknap]

I was born in So. California and have lived here my whole life - there is a lot of wealth here and a lot of married couples working their tails off to have all the extras in life. Rental houses in our modest neighborhood draw literally hundreds of applicants when rental signs go up - little 800 square foot, two bedroom, one bath homes in our middle class neighborhood rent for $1800 a month....it is what the market will bare. Until the demand goes down, which probably won't happen in a long time because of all the people choosing to rent instead of buy, rental houses are highly desirable and owners can be very choosy about who they rent to.

[jemarqu]

Originally Posted by TheRealAngelion

No way. That would be a market crash for values to drop 50 percent. There would have to be a major economic calamity (like the stock market crashing) for that to happen IMO.

With housing increases of 280% in a 5 year period, the fear of a tremendous drop (up to 50%) is real.

The Feds are afraid of a stock market drop and that's why they recent cut rates.

[JackSparrow]

"Wonder if the moderators ever think of telling the trolls to use the search button???"

or

"Why do I have to keep reading the same threads???"

[Beth56]

Originally Posted by jemarqu

With housing increases of 280% in a 5 year period, the fear of a tremendous drop (up to 50%) is real.

The Feds are afraid of a stock market drop and that's why they recent cut rates.

Housing increases of 280%

I have no idea where you are getting this from. I live in one of the most expensive housing markets in the Nation. California beach properties such as mine grew about 125% since the year 2000.

[Charles]

Originally Posted by Beth56

Housing increases of 280%

I have no idea where you are getting this from. I live in one of the most expensive housing markets in the Nation. California beach properties such as mine grew about 125% since the year 2000.

Data point: Thousand Oaks, Lang Ranch neighborhood

Purchased from builder (Standard Pacific) November 1997, $331K
Sold June 2006, $920K

Tax Basis Adjustments, numbers below are in dollars, lazily pasted from excel:
Landscaping 25000
Blinds 2500
Wood Floors 4000
Tile 7000
Paint 1000
Whole House Fan 500
Carpet 1500
Spa 12000 (yes, we were able to use this and the gas lines/concrete as an adjustment)
Tinted Windows 1000
Sprinklers 500
Solatube 700
broken window 200

Sum of above is around $56K...

Yes, above...we needed to minimize to the $500K capital gains. $920 - $331 = $589...how can we "creatively" dissolve the extra $89K... So we only pay capital gains on around $34K....so 15% of $34K is $4700.

We can deal with that.

FYI: We once won a cruise to Alaska. We were supposed to pay taxes on the value advertised by Princess Cruises....there is a clause or statement in the tax code that if you can find a lower price for the same cruise you can down value your prize for tax purposes...this is a BIG deal. Princess will say it is a $7000 cruise but Yahoo will find the same cruise for $3000....good info just in case you win something...

[OCCASparky]

Originally Posted by DawnW

That is what I don't get.....so many people on this board slam CA over and over again, but yet, the people are still there and are continuing to come.....so there must be a draw!

I know what it is for me and I can't wait to move back. It would really help if all the LA haters would go ahead and move out and help bring the housing down a bit!

Dawn

They're leaving faster than they're coming.

[Beth56]

Originally Posted by Charles

Data point: Thousand Oaks, Lang Ranch neighborhood

Purchased from builder (Standard Pacific) November 1997, $331K
Sold June 2006, $920K

Tax Basis Adjustments, numbers below are in dollars, lazily pasted from excel:
Landscaping 25000
Blinds 2500
Wood Floors 4000
Tile 7000
Paint 1000
Whole House Fan 500
Carpet 1500
Spa 12000 (yes, we were able to use this and the gas lines/concrete as an adjustment)
Tinted Windows 1000
Sprinklers 500
Solatube 700
broken window 200

Sum of above is around $56K...

Yes, above...we needed to minimize to the $500K capital gains. $920 - $331 = $589...how can we "creatively" dissolve the extra $89K... So we only pay capital gains on around $34K....so 15% of $34K is $4700.

We can deal with that.

FYI: We once won a cruise to Alaska. We were supposed to pay taxes on the value advertised by Princess Cruises....there is a clause or statement in the tax code that if you can find a lower price for the same cruise you can down value your prize for tax purposes...this is a BIG deal. Princess will say it is a $7000 cruise but Yahoo will find the same cruise for $3000....good info just in case you win something...

Sorry, but I don't get how your posting relates?

[JerZ]

Originally Posted by JackSparrow

"Wonder if the moderators ever think of telling the trolls to use the search button???"

or

"Why do I have to keep reading the same threads???"

I don't think you have to, Jack, unless someone is twisting your arm.