$500,000 homes in the ghetto? (Compton: renting, condo, mortgage)

[coronadeluxe]

i've never been to california, but from reading some of these threads on here you would think some parts of LA are third-world war zones. i suppose there's a lot of gang activity, but i'm wondering how exaggerated it is? for example, compton, i go check out home prices and i'm seeing $500k, maybe $300k min. up to a million+. i see rents for $2-3k. i know california is $, but this is supposed to be the ghetto? in philadelphia for example, you can pay over a million for a condo downtown, but then a few blocks away you can pick up a decent rowhouse for $75,000...because it's in the hood. now sure, it would sell for 10x that the next day if the area was cleaned up because of the prime location, but this is the ghetto and no one with that kind of money would even think to live in the hood. so what's really the situation in compton, etc? i mean how are all these 'gangsters' living in 1/2 million $ houses? i don't get it.

[katenik]

Originally Posted by coronadeluxe

i've never been to california, but from reading some of these threads on here you would think some parts of LA are third-world war zones. i suppose there's a lot of gang activity, but i'm wondering how exaggerated it is? for example, compton, i go check out home prices and i'm seeing $500k, maybe $300k min. up to a million+. i see rents for $2-3k. i know california is $, but this is supposed to be the ghetto? in philadelphia for example, you can pay over a million for a condo downtown, but then a few blocks away you can pick up a decent rowhouse for $75,000...because it's in the hood. now sure, it would sell for 10x that the next day if the area was cleaned up because of the prime location, but this is the ghetto and no one with that kind of money would even think to live in the hood. so what's really the situation in compton, etc? i mean how are all these 'gangsters' living in 1/2 million $ houses? i don't get it.

it's called equity and the (now obviously) false promise of greater equity in the future. a lot of the houses that are now (or recently were) a half million in the ghetto were purchased for $30K thirty years ago. of course, the smart homeowners got out when they could ask $350K, and actually find buyers. the rest are probably still in denial.

that being said, this isn't philadelphia, and property in the worst neighborhoods here will ALWAYS cost more than south or west philly, no matter what! there's value in a southern CA address, and this is the only place to buy one.

[coronadeluxe]

i guess my question is how bad are these areas really? and if they are that bad, how is it that average thug is able to afford to live in a 1/2 million $ house?

[EscapeCalifornia]

Originally Posted by coronadeluxe

i guess my question is how bad are these areas really? and if they are that bad, how is it that average thug is able to afford to live in a 1/2 million $ house?

Like katenik said, a lot of those houses haven't changed hands in years so most people didn't pay $500k. Also, those areas are being taken over by illegals living several families to a house. Six people making $20k/yr each + stated income no SSN loan + renting out the garage for $500/mo = buying $500k house in Compton.

[katenik]

Originally Posted by coronadeluxe

i guess my question is how bad are these areas really? and if they are that bad, how is it that average thug is able to afford to live in a 1/2 million $ house?

what makes you think that only thugs live in compton?

[mgs333]

gangbanging can be quite lucrative, you know, look at the rap videos for proof.

[monti]

Supposedly this is how you make money in Compton


http://www.youtube.com/watch?v=_x2-AmY8FI8

All for a mortgage :P

[LALady]

Originally Posted by coronadeluxe

i've never been to california, but from reading some of these threads on here you would think some parts of LA are third-world war zones. i suppose there's a lot of gang activity, but i'm wondering how exaggerated it is? for example, compton, i go check out home prices and i'm seeing $500k, maybe $300k min. up to a million+. i see rents for $2-3k. i know california is $, but this is supposed to be the ghetto? in philadelphia for example, you can pay over a million for a condo downtown, but then a few blocks away you can pick up a decent rowhouse for $75,000...because it's in the hood. now sure, it would sell for 10x that the next day if the area was cleaned up because of the prime location, but this is the ghetto and no one with that kind of money would even think to live in the hood. so what's really the situation in compton, etc? i mean how are all these 'gangsters' living in 1/2 million $ houses? i don't get it.

'Gangsters' don't own squat! Hardworking lower mid income people own the homes. Gangsters just go around claiming streets where they don't even pay rent.

[cottonwood2420]

$500,000 homes in the ghetto?

That's crazy.

[coronadeluxe]

Originally Posted by katenik

what makes you think that only thugs live in compton?

the fact that i read posts on here advising people to not even drive through, let alone walk around compton. i have no idea, i'm from the east coast, never been to california, that's why i'm asking. i just thought it was strange that you could have neighborhoods that are so expensive that people consider so dangerous. you won't find that over here, the hood is cheap. thanks for the answers. it looks like anyone that bought a house in LA 20-30 years ago has it made if they decide to sell and move (out of the state).