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Old 10-24-2007, 01:15 AM
 
Location: New Mexico to Texas
4,552 posts, read 15,030,489 times
Reputation: 2171

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If Southern Cali is so expensive then why do people keep moving in.How do they afford 400,000 cheap homes on a 35,000 salary.I struggle to pay for a 150,000 house and utilities in New Mexico.I make less than 35,000 though, but how is this done,what is the average mortgage payment in So.Cal for the average working family.
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Old 10-24-2007, 01:18 AM
 
11,715 posts, read 40,458,848 times
Reputation: 7586
Lots of people don't own. Lots of people who do own bought years ago for much, much less. Lots of people live with their sister, brother in law, aunt, and two cousins to afford it. Lots of people live with their parents until they're 35. Lots of people spend way more of their income than makes sense to "afford" it. A few actually make enough to afford a house at current prices.
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Old 10-24-2007, 01:40 AM
 
1,297 posts, read 5,510,473 times
Reputation: 572
In 1997 Some people made some wise investment decisions. The even wiser ones used trailing stop losses.

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Old 10-24-2007, 02:36 AM
 
Location: La Cañada, CA
332 posts, read 2,150,330 times
Reputation: 165
I don't think anyone has ever bought a $400k home on a $35k salary. In order to get approved for a loan that big, you'd have to make at least $60k and have a good credit history.
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Old 10-24-2007, 07:18 AM
 
Location: Las Flores, Orange County, CA
26,329 posts, read 93,779,981 times
Reputation: 17831
Quote:
Originally Posted by Rats View Post
I don't think anyone has ever bought a $400k home on a $35k salary. In order to get approved for a loan that big, you'd have to make at least $60k and have a good credit history.
...and 20% down.
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Old 10-24-2007, 09:55 AM
 
11,715 posts, read 40,458,848 times
Reputation: 7586
Quote:
Originally Posted by Rats View Post
I don't think anyone has ever bought a $400k home on a $35k salary. In order to get approved for a loan that big, you'd have to make at least $60k and have a good credit history.
I guess you've never heard of an 80/20 stated income neg-am ARM loan.
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Old 10-24-2007, 10:57 AM
 
Location: City of Angels
1,287 posts, read 5,026,018 times
Reputation: 672
Quote:
Originally Posted by EscapeCalifornia View Post
I guess you've never heard of an 80/20 stated income neg-am ARM loan.
You wouldn't even be approved for that on an income $35K. Besides, loan products like that are no longer being offered by anyone.
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Old 10-24-2007, 10:59 AM
 
Location: South Bay Native
16,225 posts, read 27,438,836 times
Reputation: 31495
Quote:
Originally Posted by EscapeCalifornia View Post
I guess you've never heard of an 80/20 stated income neg-am ARM loan.
A.K.A. self-inflicted fatal gunshot wound?
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Old 10-24-2007, 12:11 PM
 
Location: Thousand Oaks, California
10,408 posts, read 2,597,787 times
Reputation: 1493
Default trailing stop loss?

Quote:
Originally Posted by greggd View Post
In 1997 Some people made some wise investment decisions. The even wiser ones used trailing stop losses.
I feel very lucky. We bought our house in '99. There is NO WAY we could afford to buy it today (and we make over $100k/yr).

I'm obviously not one of the wiser ones because I have no idea what a trailing stop loss even is .. please explain.
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Old 10-24-2007, 12:19 PM
 
Location: So Cal
320 posts, read 1,733,636 times
Reputation: 107
We bought our house in 14 years ago. There no way I could affords to live there if I had to buy now. We bought the parents house 5 years ago. While it was expensive its appreciated 150K in the 5 years.we were lucky enough to pay cash from a sale of some property in Mexico. Now we are cashing out and moving to CO. Buy a house twice the size with 1-3 acres of land for half the price.. We've been lucky with our timing.
The key is starting the 401Ks at a young age. I started at 21 and cashed that out at 29 with a nice sum to put down on a house. Nowadays it takes a HUGE down and payment that average 3500 for 500K house. The rich will get richer and the rest will rent from the rich, making then even richer
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