Help. Potentially illegal rent hike. unique rent control/utilities question.

[jm1982]

Most people buying likely have two incomes. $10k a month income in SD for two people is not too high , that's two people making $60,000 each a year.. Also some of these loans allow up to 50% of income to be spent on a mortgage.
Some info here
https://www.fanniemae.com/content/gu...g/b3/6/02.html

There are even loans that allow a buyer to use income from people not living in the house to qualify for the loan.
It's called a HomeReady loan
https://mymortgageinsider.com/homere...idelines-7817/

San Diego like L.A is pretty much built out and it's a very desirable place for many people.

I think a lot of it too is people trading equity like you said. The global economy has really changed. Tons of millionaires have been minted in Asia.

Asia is on track to surpassing North America as the wealthiest region soon.
https://www.cnbc.com/2017/06/13/weal...onsulting.html

The economy of china has been growing at very high rates compared to the U.S economy and that growth is cumulative of course too. Some info here.
https://tradingeconomics.com/china/gdp-growth-annual

I agree it sucks when people get priced out of a market because they didn't buy when housing was affordable, but I also don't think we should have the government trying to control housing prices of privately owned property.

I've mentioned here before that if people can't afford to purchase property in CA they should really consider buying income real estate elsewhere, where property actually can cashflow.
Real estate is hands down the best opportunity for wealth creation for the average person historically besides owning a business which is riskier of course and requires one to be a lot more active.

The average net worth of a renter versus property owner is something like 35X.

[jacktravern]

Originally Posted by sdlife619

A little off topic here but who are the kinds of people buying all these 500-800k homes? What jobs are out there that are allowing these people to buy such overpriced shacks of crap?

What jobs pay $10-15,000 a month?

.

Well, if you're talking 2 teachers/ cops/ fireman or some combination of those jobs in the middle of their careers, you're talking about individuals incomes between 60-80K a piece. I think a 600K house is roughly 3k per month. As far the 800k homes, someone in that house is probably a doctor, dentist, attorney a good firm, engineer or executive.

Also remember, here in LA, its extremely popular to load a bunch of individuals into a house. A female just told me she was moving to Santa Clarita with her child, her mom, her sister, brother in law and her 2 nieces. There will be 4 adult incomes. Not ideal for everybody though.

[jm1982]

Originally Posted by jacktravern

Well, if you're talking 2 teachers/ cops/ fireman or some combination of those jobs in the middle of their careers, you're talking about individuals incomes between 60-80K a piece. I think a 600K house is roughly 3k per month. As far the 800k homes, someone in that house is probably a doctor, dentist, attorney a good firm, engineer or executive.

Also remember, here in LA, its extremely popular to load a bunch of individuals into a house. A female just told me she was moving to Santa Clarita with her child, her mom, her sister, brother in law and her 2 nieces. There will be 4 adult incomes. Not ideal for everybody though.

I mean in 2020 (around the corner) min wage pay will be $15 so $31,500 full time. That's working 40 hours a week. Many are working more than 40 hours a week so making $45k or so on min wage won't be too uncommon .

That is if the businesses employing them can afford to pay them that much and still stay in business.

It'll cause a ton of inflation of course too and prices will rise significantly for everything.

Yeah . I was watching a clip on the news yesterday . They were doing an investigation of these city workers that were only working like 1.5hours a day but getting paid 8 hours. They were what would be considered 'blue collar' jobs but the salaries were like $90,000.


It's a shame these guys were milking things , but hopefully it's the exception to the rule.
But one of my relatives mentioned they know two gov employees that do the same thing.
"Clocked in" but running their own errands and shopping and stuff.

I'm sure it's nothing new though. The supervisors probably don't care since it's not their money too.

[Larry Siegel]

Originally Posted by jacktravern

Well, if you're talking 2 teachers/ cops/ fireman or some combination of those jobs in the middle of their careers, you're talking about individuals incomes between 60-80K a piece. I think a 600K house is roughly 3k per month. As far the 800k homes, someone in that house is probably a doctor, dentist, attorney a good firm, engineer or executive.

A lot of professionals make $30,000 a month. In Del Mar, that's not quite enough to buy a house - they start around $1.5 million - but a couple miles away in Carmel Valley or Solana Beach, it is.

These are not people just starting out...you work your way up. Two incomes help a lot.

An acquaintance who is a cop married to a teacher lives very nicely in a $700,000 house in Scripps Ranch. It is a nice modern house, not a crappy little 1940s box, but it is kind of far afield.

San Diego is expensive but it's doable if you are an upper middle income earner.

[ryanms3030]

Originally Posted by jacktravern

Well, if you're talking 2 teachers/ cops/ fireman or some combination of those jobs in the middle of their careers, you're talking about individuals incomes between 60-80K a piece. I think a 600K house is roughly 3k per month. As far the 800k homes, someone in that house is probably a doctor, dentist, attorney a good firm, engineer or executive.

Also remember, here in LA, its extremely popular to load a bunch of individuals into a house. A female just told me she was moving to Santa Clarita with her child, her mom, her sister, brother in law and her 2 nieces. There will be 4 adult incomes. Not ideal for everybody though.

Have you looked at LAPD payroll? There are thousands making over $100k and hundreds making over $200k and even over $300k. If you can fly a helicopter then you can make over $500k. LAPD is one of the most lucrative places to work in LA. Other city jobs are pretty high too the nice thing about working for government in a corrupt big city

[V8 Vega]

LA Dept. of Water & Power are the highest paid people on the planet for what they do. Your paying for this crap.

[jm1982]

Originally Posted by ryanms3030

Have you looked at LAPD payroll? There are thousands making over $100k and hundreds making over $200k and even over $300k. If you can fly a helicopter then you can make over $500k. LAPD is one of the most lucrative places to work in LA. Other city jobs are pretty high too the nice thing about working for government in a corrupt big city

At some point the S Is going to hit the fan . Dems in L.A and CA should be a lot more worried about this than whatever Trump ordered from McDonald's or something he said off camera a decade ago . This is something that will actually affect them but they never talk about it .

At this point many of the city jobs are way above what pay and benefits would be in the private sector.

Nationwide there is $6 Trillion in unfunded pensions .
It's the big elephant in the closet .

"Let that number sink in for a moment: It's one-third the size of the U.S. economy, equal to "a whopping $18,676 for every man, woman, and child, or nearly $50,000 for every household in America," as The Daily Signal notes.

It's a massive amount of money, in short. All because state officials and politicians never had the gumption to tell public-employee unions "no" when they asked for even more. So their gilded pension plans will soon start bankrupting states, such as Illinois and Connecticut, which now can't pay their pensions."

https://www.investors.com/politics/e...on-nightmares/

In L.A it's $20 billion

Recently article about how Garcetti has failed in regards to pensions just like everything else .
It's likely there will be big cuts in the already dismal services. Crime and homless situation and general ghettoness will then increase .

"Since Garcetti became Mayor, General Fund revenues have increased $1.4 billion, a 31% bump. Yet the City is anticipating a budget gap of $200 million next year, in large part because ever increasing salaries, healthcare benefits, and pension contributions. This does not include the unaffordable raises that are being demanded by the union leaders for the City’s civilian employees and the police that will increase the budget shortfall by $50 to $100 million.

Garcetti also promised to repair and maintain our streets. But after five years in office, there is still no plan to fix our streets that are considered to be some of the worst in the nation.

There has also been no meaningful reform of the City’s two pension plans that are underfunded by over $20 billion according to Moody’s, the national bond rating service. As a result, annual pension contributions will continue to devour more and more of the General Fund, crowding out basic services such as public safety and the repair of our streets, parks, and the rest of our deteriorating infrastructure. "
How Long Will LA