How do people afford to buy a house here? (Vista: appointed, apartments)

[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?

[BRinSM]

Originally Posted by iama30something

How on Earth do people actually afford to buy here?

This is not a new issue to LA nor is it exclusive to LA. But you have some options:

1. get married to another person with a similar income
2. look in the valley
3. look in fringe areas like inglewood or hawthorne

the westside is in high demand and even a low 6 figure salary won't buy you a house there. my wife and i combined to make about $150k 4 years ago and couldn't afford anything but dumps adjacent to the 405 or fixers in westchester as far as SFHs go. we ended up in the valley, but i work in the valley as well so it's all good (minus the summer hear).

[Pennychaser11]

Most people don't. Most homeowners bought when housing was actually cheap in LA. Although 100K/yr is very good for your age it ain't much here in LA especially for west LA area. Being frugal is important but being smart with investment is more important it seems

[Mr_Geek]

Get 10 others to live with you.

[goldenglory18]

My wife and I are in our early 30's, make just under 100k between us, (she works part time), and own a nicely appointed, new(er) 1300 sqft SFR in a upcoming AZ suburb with a mortgage of less than $900. Our entire housing budget here is less than $1300. Utilities, DirecTV, HOA....everything.

I'm having a VERY hard time finding decent housing in areas close to this job lead for under $1800 a month. And I'm not even looking at houses or even large apartments...This is the main reason why I'm still undecided on relocating to LA LA land.

No wonder the blue collars and middle class are dying off....

[radiolibre99]

How on earth do people afford anything here is what I want to know? The home prices frustrate me but so does rent, the taxes, various fees etc just to live a normal life. I know there's a premium to live in LA but sometimes it gets ridiculous.

I do wonder what people do for a living to afford those homes above 500k.

[iama30something]

Originally Posted by radiolibre99

How on earth do people afford anything here is what I want to know? The home prices frustrate me but so does rent, the taxes, various fees etc just to live a normal life. I know there's a premium to live in LA but sometimes it gets ridiculous.

I do wonder what people do for a living to afford those homes above 500k.

Meh, nothing else really bothers me here except the housing cost. Gas, taxes, food, etc.. yeah it's more expensive but not insane. We pay for the climate and proximately that our location gives us.

But housing... not only are people buying $500k places, but they are buying them in cash. It's hopeless.

[BeatAngMoh]

If folks didn't buy a long time ago they are not buying to actually pay their mortgage off in the short-term. The upside from appreciation will offset the mortgage so their net equity position is positive going forward. For many folks, they have successfully used the debt markets and appreciation to foray into even bigger and better homes or multiple properties including multi-residential.

[goldenglory18]

Originally Posted by BeatAngMoh

For many folks, they have successfully used the debt markets and appreciation to foray into even bigger and better homes or multiple properties including multi-residential.

...and this my friends, is how the Rich get richer......

[iama30something]

Originally Posted by goldenglory18

...and this my friends, is how the Rich get richer......

Great, I'd love to do it. How do I get started when things are $900k - $1.2mill for a 2 bedroom dump off Sawtelle and Pico?