How do people afford to buy a house here? (Los Angeles: leasing, credit score)

[iama30something]

Originally Posted by HyperionGap

Rosarito.

I know, but where? Everything I'm finding online has beach front properties for much more than that...

[PROFILE CLIMB]

Unless you're household makes at least $150,000 a year it will be a challenge.

[jm1982]

Originally Posted by jtamay3

People who already bought who are foreign buyers would be forced to either live here or sell the property over the course of a 1-2 year span. I would say, let them transfer it, but then that would be a loophole which will still allow foreign buyers via surrogate. They also have to prove they are here for 7 months or more.

I would consider locals as anyone in the U.S. for more than 4 years. Kind of like how local colleges define in-state tuition vs out of state. That would detract a foreign buyer to simply send someone here and buy up the land that way.

As far as the local buyers who want to sell their property, I'd have to say tough. I mean, it's the only reasonable way I can say this expensive housing issue can be corrected unless anyone else has better ideas. Preference should always be for those who live there and need to live there. Not some flipper who has no intentions of even contributing to the land they do business in.

There's a reason why houses in Rosarito on the beach can be had for $55,000 when you can't even find a house in Watts or Compton for double that.

I don't think it's a good thing that a lot of people/families in L.A are priced out of the housing market..but I don't like the idea of these types of controls/manipulation of the market either.
It would also seriously affect the economy. A lot of the big projects now in L.A and other parts of the country are being funded with foreign money. There are several in Downtown L.A....another example is the Barclay's Center in Brooklyn,NY and the SLS Hotel in Las Vegas
More examples here : https://www.bisnow.com/national/news...lopments-41065

These investors are helping to invest in these projects which create a lot of jobs and economic activity. I think it would be a mistake to shoo away foreign investors and not make them feel welcome to invest in the U.S

It would also not be a good thing for long time homeowners ..especially retirees that might want to sell out. If a lot of people were restricted from buying then prices would go down a lot and thus their net worth would drop too.
This law/policy would certainly not be popular with the older longtime homeowners in L.A that make up a big part of the voting public.

Think about if you had lived in your home for many decades and were getting ready to retire and then the value drops significantly because less people can buy houses in your area.
I don't think you would be too happy.

Also I find it hard to believe that Rosarito Beach houses can be bought for $55,000 today . Could you please post a link to some real estate listings showing this? ..I think myself and others would be interested.

[jm1982]

Originally Posted by PROFILE CLIMB

Unless you're household makes at least $150,000 a year it will be a challenge.

Yeah it's kind of like asking how do minimum wage earners afford a new BMW or Mercedes. Short answer is : They don't

[PROFILE CLIMB]

They can fake it, I've seen friends of mine scraping gas money together to drive their Corvette.

[jm1982]

Originally Posted by PROFILE CLIMB

They can fake it, I've seen friends of mine scraping gas money together to drive their Corvette.

They are hood rich!

It sounds like they are the living example of this song

Gator boots with the pimped out Gucci suits
Ain't got no job, but I stay sharp, eh eh, eh eh, I stay sharp
Can't pay my rent cause all my money's spent
But that's okay, cause I'm still fly
Got a quarter tank of gas in my new E class
But that's alright, cause I'm gon' ride
Got everything in my momma's name
But I'm hood rich, la-di-da
__

Big*Tymers

[sourdough]

Originally Posted by iama30something

RANT: I'm 31 and frugal. I've been saving since I was in high school and have a sizable amount saved for a down payment on a house. I also bring home a salary close to 6-figures. I have no kids and I'm not married.

...and I STILL can't afford a house within an hour of my office! I work in Santa Monica and I know the Westside isn't cheap. I'm not looking to live on the ocean by any means, but I can't even afford a house in Culver City, Mar Vista, West LA, Playa Del Ray, El Segundo... no where! I'm really looking for a house and not a condo...if I wanted a apartment with a HOA fee, I'd just rent (which is what I have been doing).

The best deal I've found was up to Topanga Canyon, for a nice 2 bed / 2ba, 1000 sq ft for $699k. That's a downpayment of $150k + a mortgage of $3600/month. Insane.

How on Earth do people actually afford to buy here?

Years ago the SoCa location was about the mild weather. It's not about mild weather anymore, it's about water. Tough it out where you are for now. Research climate change and drought exodus, it is changing the location game. There is an amazing amount of information already. Connect the dotes and find a place for your future. The idea is get there ahead of the bubble or you will be in the same fix you are now. Your $150K will enable you to cash out in many areas that have excellent water sources.

[reen79]

yea I see like 5 families in a home now..lol I think that's the only way they can afford it unless you are making really good money or you bought a house back in the day when they were cheaper.....most need more than one income to afford a home nowadays...

[Mister 7]

Originally Posted by PROFILE CLIMB

They can fake it, I've seen friends of mine scraping gas money together to drive their Corvette.

Yeah, there is ZERO doubt in my mind that half of the "rich" people driving the $100k cars around here are probably living WELL BEYOND their means, are one step away from losing it all, and probably hundreds of thousands of dollars in debt. Or, at the very least living paycheck to paycheck.

I was at the Lexus dealer a while back looking at cars and the Saleslady said 80% of them are leased. I'm sure it's that or more at even higher end dealers.

[jm1982]

Originally Posted by AJT123

Yeah, there is ZERO doubt in my mind that half of the "rich" people driving the $100k cars around here are probably living WELL BEYOND their means, are one step away from losing it all, and probably hundreds of thousands of dollars in debt. Or, at the very least living paycheck to paycheck.

I was at the Lexus dealer a while back looking at cars and the Saleslady said 80% of them are leased. I'm sure it's that or more at even higher end dealers.

Yeah true . Also if you look at the cars in many apartment buildings they are often nicer than the ones owned by the people that own houses in the same area .
I think there is something to the theory that in LA people might think " I can't buy a house so I'll just lease a really nice car"

I've looked at leases for luxury cars and the payments are often not too crazy . Seems like for $300 or so you can lease a new luxury brand car.
There are catches though like usually 12k miles per year .

I've heard that many people often lease cars like Mercedes and Bmw because the repair costs can be insane once they are off warranty .
This is why you can find a used Mercedes sometimes for about the same price as a used Honda if you go back enough years .

I've heard better things about Lexus reliability . Also heard the Toyota Avalon is basically a Lexus with a Toyota badge on it.

Some can also write off part of the lease as a business expense I believe .

Image is important for some people and lots of people see someone in a new luxury car and assume they are doing well financially .
I could see in certain industries like a high end real estate broker or something people kind of expect a certain image . Unfortunately a lot of people are superficial . Seeing something expensive can consciously or subconsciously have them think "This person can afford this expensive car... They must know what they are doing "
Especially if the car is a higher end model or something like a new Rolls Royce or exotic car , everyone will likely assume you are rich or financially successful .
People could view investing in the fancy car as an investment .
Of the millionaires I've known most have driven modest cars and driven them for a long time .