It's just getting too expensive in Los Angeles (London: find a job, college)

[jm1982]

Originally Posted by radiolibre99

The knee jerk reactions to the rent increases in LA is pitiful. They sound like the right wing reactionary comments ppl give when someone complains about the situation all over the US, "if ya don't like it, git out, go to Cuba or Canada, commie".

People need to vent. Let the OP vent. Nothing wrong with it. Rent is going up. Those SF prices are making their way down here, albeit it's not THAT bad. My apt complex is renovating and pushing the costs on the tenants. They're exempt from rent control laws so they're raising rents on all of us by 400 bucks! I kid you not. Luckily I can afford it but I'm still pissed.

But the major issue is that salaries don't pay as much here for the cost of living due to to all the cheap labor and the hordes of doe eyed newbies willing to work for less. In some fields pay is higher but in most the pay is only slightly higher or the same. The posters in here saying otherwise are FULL of crap.

Some ppl are struggling with the changes and it's ok to not like it. They don't need an insufferable clod telling them to shut up and move to Podunk, Iowa. Others are joining advocacy groups for higher wages and affordable housing initiatives to lobby the city. So not all are just complaining and lying down.

I just think that ppl who tell others to "shut yer trap or move" seem to enjoy the stick being shoved up their backside.

Increase of 400 bucks a month? Or a year?

I agree with you about the cheap immigrant labor and and the hordes of doe eyed newbies offering cheap labor too. Many seem willing to work for hardly anything or something free to get their foot in the door, and many (not all of course) have their parents footing the bill for rent ,car ..while they "establish themselves" .

[radiolibre99]

Originally Posted by jm1982

Increase of 400 bucks a month? Or a year?

I agree with you about the cheap immigrant labor and and the hordes of doe eyed newbies offering cheap labor too. Many seem willing to work for hardly anything or something free to get their foot in the door, and many (not all of course) have their parents footing the bill for rent ,car ..while they "establish themselves" .

Nope. A month. I had a junior one bedroom for 1000 bucks. Now that they've renovated the place they gave me the option to move out or pay the new $1400 price tag. That's for my old non-renovated apt too! I complained and they said they can offer me a renovated one for the same price but that's the going rate for my crappy junior. Take it or leave it.

Everyone in the building was livid. They only offered six month leases too! How lovely! I complained and got a year lease out of them but at the same price! Nothing I can do about it. I called up the housing agencies hoping they were violating rent control laws but they're exempt. Called an advocacy group about them shoving the costs of the renovations on the tenants but they said they can do whatever they want.

After a year I'm outta here and looking for an older place for cheaper near Burbank (still in LA city limits) or Sherman Oaks.

[ihatedcu]

Originally Posted by kingdomkz

Let's assume someone makes $50,000/yr and is single, in all of the places I listed then we will compare the considerations you have added in to critique the implications of comparing California to states that have harsh winters. The person we are talking about has been lucky enough to find a place to stay in all of the urban places listed for $850/mo for a 500 sqft apartment with all utilities covered except for heating and air conditioning, so everyone pays at least ($850 x 12 months) = $10,200 every year just to exist.

Let's also assume that no matter what, this person spends $80 a week on food for all 52 weeks a year. So $80x52 is applied to every calculation based upon the base price before sales taxes: $4,160 + sales tax.

Let's as well assume that the gas tank has to be filled up once a week for 16 gallons for 52 weeks for ONE car. (16x52) x GP = (832 Gallons x Gas Price) Let's also assume that gas prices do not change for a whole year, because gas prices go up and down in all states, so changing the numbers for each gas price season is kind of pointless.

Los Angeles, CA:

(($50,000 salary - ($50,000 salary x 0.093 state income tax) - ($50,000 salary x 0.25 federal taxes)) - $10,200 (Rent) - ($4,160 food base price x 1.09 sales tax) + (832 gallons x $3.65/gal) - ($150/mo x 3 months summer temps) - $100 car registration/renewal - ($70/mo x 12 month) cellphone plan - ($30/mo x 12 month) internet plan - ($150/mo x 12 month) car insurance - ($300 x 12 month) health/dental insurance = $50,000 - $4,650 - $12,500 - $10,200 - $4,534 - $3,037 - $450 - $100 - $840 - $360 - $1,800 - $3,600 = $7,929 left per year. (The work till you drop, never own property, retirement plan)

Stramford, CT:

$50,000 salary - ($50,000 x 0.055) - ($50,000 x 0.25) - $10,200 rent - ($4,160 x 1.0635) + (832 x $2.93) - ($150/mo x 3 months AC) - ($100/mo x 4 months heating, unless wussy skin) - (20 (per thousand) car assessed value x 26.5 mill rate x 2 payments) - $840 - $360 - $1,800 - $3,600 = $50,000 - $2,750 - $12,500 - $10,200 - $2,438 - $450 - $400 - $1,060 - $840 - $360 - $1,800 - $3,600 = $13,602 left per year. (Nice Pro-CA shilling attempt)



Bottom line, if you're middle class: Don't go to urban California.

$50k gross
Medical deduction $3600
46,400 taxable income
Federal tax $8533.35
CA tax $1561.25 (marginal tax rate)
This person will have $13,084 left over. Not bad, but we can make him better.

50k gross
Medical/dental $1920
401k up to company match $3000
HSA $3350
Traditional IRA $5500
Taxable income $36,200
Federal tax $6223.05
CA tax $906.47
Take home pay $29100.48
Expense 21,321

Left over
Cash on hand $7779.48
Retirement plan $8850+
Retirement/medical emergency plan $3350
Total savings ~ $20k

Bottom line, stay in California if your middle class.

[znlwovuhrjw]

Originally Posted by ihatedcu

$50k gross
Medical deduction $3600
46,400 taxable income
Federal tax $8533.35
CA tax $1561.25 (marginal tax rate)
This person will have $13,084 left over. Not bad, but we can make him better.

50k gross
Medical/dental $1920
401k up to company match $3000
HSA $3350
Traditional IRA $5500
Taxable income $36,200
Federal tax $6223.05
CA tax $906.47
Take home pay $29100.48
Expense 21,321

Left over
Cash on hand $7779.48
Retirement plan $8850+
Retirement/medical emergency plan $3350
Total savings ~ $20k

Bottom line, stay in California if your middle class.

Yeah, because someone really wants to struggle AND invest at the same time while living in an apartment in LA. Assuming they also want to do absolutely nothing except work till death while seeing absolutely nothing from a RETIREMENT investment fund . Why don't you actually bring up some sort of financial plan that is exclusive to CA. Anyone could do the tax deduction hat trick in ANY other state and make significantly more money elsewhere.

Bottom line: Horrible argument, but to be expected from warm climate dependents.

[SeaDoo342]

Originally Posted by jm1982

That's insane $1k per month. How much are the houses valued at?

Originally Posted by LuvSouthOC

Uh, that's the cost of a home in the 900s or even a cheaper place that has Mello Roos. It is really not that high.

No….you can easily get a 10k+ tax rate on a tiny house valued at 400k. Those 900k, 1600 square foot houses have tax bills that exceed 20k! Look up tax rates others mentioned in Scarsdale, Harrison, New Canaan, Stamford...

Depends on the town and tax rate…. my aunt is currently selling a 1500 square foot house for $545k in middle class West Hartford CT and her taxes are $15k a year. The closer you get to NYC though the higher the taxes get. A 500k, 1100 square foot house in Mamaroneck has a tax rate of 16k. A 900k, 1800 square foot house in western CT or downstate NY suburbs can be well over 20k a year….at that rate you're talking 1800 a month JUST IN TAXES… Welcome to the northeast, where you pay almost as much in taxes as you do your mortgage.

I have a small ranch and my tax rate is $8400 a year...

[DONNIEANDDONNA417]

Originally Posted by CA4Now

We'll never get an answer to that question. (Just more threads on how bad it is here.)

Because its a dumb question. People just can't up and leave. People may not want to leave but just want to be able to make decent living and not be boggle down with rising cost of living. People may have families that they don't want to leave.

[ihatedcu]

Originally Posted by kingdomkz

Yeah, because someone really wants to struggle AND invest at the same time while living in an apartment in LA. Assuming they also want to do absolutely nothing except work till death while seeing absolutely nothing from a RETIREMENT investment fund . Why don't you actually bring up some sort of financial plan that is exclusive to CA. Anyone could do the tax deduction hat trick in ANY other state and make significantly more money elsewhere.

Bottom line: Horrible argument, but to be expected from warm climate dependents.

Stop drinking the California is too expensive kool-aid. At $50k salary, there is minimal difference between California and other states. THERE IS NO FREE LUNCH.

[jm1982]

Originally Posted by radiolibre99

Nope. A month. I had a junior one bedroom for 1000 bucks. Now that they've renovated the place they gave me the option to move out or pay the new $1400 price tag. That's for my old non-renovated apt too! I complained and they said they can offer me a renovated one for the same price but that's the going rate for my crappy junior. Take it or leave it.

Everyone in the building was livid. They only offered six month leases too! How lovely! I complained and got a year lease out of them but at the same price! Nothing I can do about it. I called up the housing agencies hoping they were violating rent control laws but they're exempt. Called an advocacy group about them shoving the costs of the renovations on the tenants but they said they can do whatever they want.

After a year I'm outta here and looking for an older place for cheaper near Burbank (still in LA city limits) or Sherman Oaks.

Wow that is a big increase.

The thing is with these buildings at the level they are selling for , the only way they can really make them profitable is to bring the rents up a lot

People are spending insane amounts of money per unit to buy these apartment buildings.

I'm also thinking that a lot of apartment building owners will start renting some of the units short term on Airbnb and similar sites especially if they are in demand tourist areas like Hollywood, etc.
I know some investors are already doing this in different places as they can make a lot more than renting long term.

They might charge $1400 a month but that's still less than 50 a day...they might be able to get $150 a day for the same place on Airbnb.

[radiolibre99]

Originally Posted by ihatedcu

Stop drinking the California is too expensive kool-aid. At $50k salary, there is minimal difference between California and other states. THERE IS NO FREE LUNCH.

Come off it! Are you serious? The kool aid drinkers are the ones that think it's not expensive. Have you seen how much a dollar will stretch in Arkansas? Way further. You're in the red for every dollar you earn vs COL in CA major cities. This isn't a secret either Yahoo Finance explains these in their monthly articles.

Get outta Jonestown, son.

[genjy]

Originally Posted by radiolibre99

Come off it! Are you serious? The kool aid drinkers are the ones that think it's not expensive. Have you seen how much a dollar will stretch in Arkansas? Way further. You're in the red for every dollar you earn vs COL in CA major cities. This isn't a secret either Yahoo Finance explains these in their monthly articles.

Get outta Jonestown, son.

Then why isn't Arkansas more popular if it isn't a secret? There are more residents in the City of Los Angeles than the entire state of Arkansas...?