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Old 05-07-2008, 01:52 PM
 
Location: Chicago, IL
27 posts, read 75,227 times
Reputation: 11

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As I've stated already.. I'm moving in August. I plan on living with family until I pay off my debt and save enough money to be able to move out. However, I was actually considering buying vs renting. If I can find a small house for $100-150k (obviously depending on where I look and the value of the house) and have a mortgage of $900-1000 a month.. it'd be better than paying that same amount on rent.

Given the fact that I don't live out there - what would you guys suggest? How is the buying market out there?

Please advise.
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Old 05-07-2008, 01:56 PM
 
Location: South Bay
7,113 posts, read 18,976,369 times
Reputation: 3365
that price range will probably put you in a part of CA that made you wish you were back home.
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Old 05-07-2008, 02:01 PM
 
Location: Chicago, IL
27 posts, read 75,227 times
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Haha, this might be true. However, I've been looking around in various areas, and have seen some semi-decent ones. And with 30 year mortgages even more expensive houses may be affordable (vs even $1500-2000 a mo rent).

Granted I'd do more research before I did anything rash. I may end up living with family for a good 6 months to a year, depending on how quickly I find a job (I'm moving out there without a job as I don't want to transfer within my current company).
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Old 05-07-2008, 02:13 PM
 
Location: Windermere, FL
269 posts, read 803,594 times
Reputation: 172
Quote:
Originally Posted by StacyLee View Post
Haha, this might be true. However, I've been looking around in various areas, and have seen some semi-decent ones. And with 30 year mortgages even more expensive houses may be affordable (vs even $1500-2000 a mo rent).

Granted I'd do more research before I did anything rash. I may end up living with family for a good 6 months to a year, depending on how quickly I find a job (I'm moving out there without a job as I don't want to transfer within my current company).

A semi-decent area around L.A. means you're around the corner from thugs and their gangs. I agree with the other poster, for something around 150k you will wish you stayed where you are at.

150k here means you are in a 1 bedroom 600sqft back house in the ghetto or waaaay out in the desert!
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Old 05-07-2008, 02:18 PM
 
2,518 posts, read 7,710,261 times
Reputation: 2406
your research will quickly reveal that there is no housing at the price in the LA area. even in the WORST neighborhoods, prices are now dropping into the $300K ballpark from housing-bubble highs of $400K or more. they'll go back up to that level before you will ever see a $100K house in LA that isn't a tear-down.
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Old 05-07-2008, 02:22 PM
 
1,734 posts, read 6,074,986 times
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Hi StacyLee. What BRinSM is saying is that you'll not find a home within 30-miles of downtown Los Angeles, in an area that you would want to live in, for $100-150K.

A quick search pulls up far too many articles about Median Costs in LA, many outside that 30 mile window by the way. But, for the sake of argument, here's a link to Median prices from Feb 2007. Of course, the median price has fallen. However, if you look at these medians and reduced them by even 50% (which is ridiculous by the way) you'll still only find a handful that will fall into your range. Also, remember, you'll need great credit and 20% down to qualify for a good 30-yr fixed rate mortgage.


Feb 2007 Median Prices
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Old 05-07-2008, 02:35 PM
 
Location: Chicago, IL
27 posts, read 75,227 times
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Quote:
Originally Posted by JTGJR View Post
Hi StacyLee. What BRinSM is saying is that you'll not find a home within 30-miles of downtown Los Angeles, in an area that you would want to live in, for $100-150K.

A quick search pulls up far too many articles about Median Costs in LA, many outside that 30 mile window by the way. But, for the sake of argument, here's a link to Median prices from Feb 2007. Of course, the median price has fallen. However, if you look at these medians and reduced them by even 50% (which is ridiculous by the way) you'll still only find a handful that will fall into your range. Also, remember, you'll need great credit and 20% down to qualify for a good 30-yr fixed rate mortgage.


Feb 2007 Median Prices
Thanks for the link!
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Old 05-07-2008, 02:47 PM
 
1,734 posts, read 6,074,986 times
Reputation: 1560
Quote:
Originally Posted by StacyLee View Post
Thanks for the link!
I ought to look at my own info. Here's the most recent data from Dataquick
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Old 05-07-2008, 03:38 PM
 
Location: El Pueblo de Nuestra Señora la Reina de los Ángeles del Río Porciúncula
14,518 posts, read 15,169,303 times
Reputation: 10360
Quote:
Originally Posted by StacyLee View Post
If I can find a small house for $100-150k (obviously depending on where I look and the value of the house) and have a mortgage of $900-1000 a month...
There aren't any houses at that price, at least not any that wouldn't require a couple hundred thousand dollars to get livable. Okay maybe an outhouse, 8 square feet, one hole.
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Old 05-07-2008, 04:11 PM
 
1,734 posts, read 6,074,986 times
Reputation: 1560
As you move forward, here are some additional things you'll need to consider. You'll need probably $33,000 for a down payment on the $150K home, assuming you don't roll points and fees into your mortgage. Property taxes. They'll run you about another $125 per month on a $150K home. Gas, electric, water, sewer, phone and cable will set you back, at least, another $125/mo, even in a tiny home. Chances are you'll be able to find a reasonable apartment within reasonable distance from your job. The distance you'd have to travel from a home of that value to work in LA would be insane and raise your fuel costs.

So, there's a lot more to owning than simply equating a rent payment with a mortgage payment. I know you know this, but I can't emphasize it enough to those considering their first home purchase. Sometimes it's just better to rent for awhile.
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