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Have you seen the ones between 7th and 8th, right off the 110? The balconies are so close to the freeway, you could spit on cars going by. I wonder what the pollution levels are like in those places.
You think they have smog alerts inside the buildings? Ha!
First off, I'm not new to LA, I have visited on several occasions, so much so that I plan to move there soon (many reasons, recently divorced the main one). However, the one major thing that keeps me from going is the rent cost. I have a friend in Hollywood who is nice enough to let me stay with him until I get on my feet (free!), but I'm just really really scared about the job market and rent cost in LA. I like the Hollywood or Los Feliz areas.
I only have manufacturing experience and a little retail. I am single, no kids, no pets, no car payment, no bills really. I am willing to work hard, but still VERY scared because this is such a big decision. What do most retail or entry level jobs start pay???
I'm pretty simple as I don't need new clothes and junk all the time. My needs are pretty low.
Any advice would be greatly appreciated. Right now I am in a comfort zone in Indiana (low rent etc), but I want to experience life in that there big city! hahaha! Thanks for reading.
Held out as long as I could but I can't take these crazy numbers flying around on this thread.
Find a room-mate you trust. I share a nice apartment in Los Feliz for $500/month including utilities. Car is paid for and the cell phone is $50/month. Car Ins. $50/month. I just added cable/phone/internet for $100/month. If I work 15 hours a week (I work more depending on how much money I want) for $20/hour take-home, I have more than $100/week left over after all bills are paid. It's not that hard to get by until you get established.
I was raised in the long lost middle class and do not feel that my arrangements now are much different. I'm sure there are others out there who don't find life that incredibly difficult.
You can live on $5,500 per month somewhat comfortably? Yes, $5,500 AFTER TAX!!!!! Which is about $100,000 before tax, minimum, or $40,000 more than this guy might be making.
How is a $325,000 mortgage low? You've been smoking the same crack as all of the other California Real Estate babies. I'm not bashing you, but come on man, in most places in this country a $325,000 house is in a very nice area, has a big yard, is 2,000+ sq. ft., etc. It's not a 600 sq. ft. condo in a downtown in transition.
You're right, that's $5,500 after tax, which is a lot of money before tax. That's a good point, clearly.
A $325,000 mortgage is VERY low in Southern California, and would be very low in New York or other major metropolitan areas around the nation. In Portland, Oregon, our condo market is about as expensive as it is here in Los Angeles. It's not overpriced, that's what people are willing to pay and there is the money out there to do so. In my building I don't know any of my neighbors who have problems paying their mortgages. In Portland, you can get condos a BIT cheaper, but not a ton. Usually you're looking at the $450 to $500 per sq. foot range.
This isn't Oklahoma. I'm sorry if you're from some podunk town, no offense, but we don't have those types of prices in major cities. You're absolutely right I could get a HUGE house in Wyoming for a half-mil, but this isn't Wyoming. This is downtown Los Angeles two blocks from Staples in the most desirable neighborhood in this area. It's irrelevant whether you personally, or some other random person, LIKES downtown or likes this area, those of us living here love it and those people still moving in regularly love it as well. It's a very exciting area with a lot of new restaurants opening, L.A. Live two blocks away, ESPN's West Coast headquarters almost across the street from us, the Emmy's are held right down here, major TV commercials of all sorts are filmed here, etc. It's a great place, honestly. And people are willing to pay. In ANY market right now there is weakness, but ours has held up better than most. And I expect ours to recover stronger and faster than most as well.
A $325,000 mortgage is low relative to the value, learn something about real estate, ok? Do you own any property? I own real estate interests in four states. My dad works in real estate, and when I say that I don't mean little residential properties, I mean he has made a fortune in this business. So yeah, I know my stuff, and I pay attention to the markets. A mortgage is low or high relative to the value of the property, and if it wasn't obvious I was saying that it should have been if you know ANYTHING at all about Los Angeles and downtown Los Angeles. If you have a $2 million mortgage on a $10 million property, that's a very low mortgage -- you have 80% equity! I bought my condo at $390,000, which was a bargain! I got it at pre-construction prices. It had appreciated to $520,000 within a year of me buying it. Of course that was ridiculous, and they have since come down, but even at the current prices they sell for, in the $450,000 neighborhood, my mortgage is low relative to that. In other words, I don't have 10% equity or even 20% equity. I have almost 30% equity in the place. That's high by most people's standards when you have just purchased a place, i.e. most people wouldn't put 30% down so they'd get a higher mortgage for the same condo. That's what I was saying. Don't jump down someone's throat and make yourself look like a tool when you didn't have to.
I can't speak for the rents at apartments in downtown Los Angeles, I am not a renter, but I don't think it's true that it's $3 per square foot normally. I know for a fact that in my building, you can rent 1,000 sq. foot units like mine for about $2,000 to $2,100 per month. Is that steep? Well, I guess, it depends on your budget. But it's not that bad, $2 per sq. ft. here is somewhat reasonable. I own part of an apartment complex in Portland and we charge in the $1.30 range but it's not Los Angeles, and it's not a brand new building either. I think $2 per square foot per month is as much as you should really have to pay, but in L.A. I've seen rents up to $3 per sq. foot for small places, or at least near there, the $1,350 per month for 500 sq. foot type of thing. I'd look into some condo buildings with spare condos for rent, rather than the apartment complexes. You'll get a better deal here and you won't regret it, either. We still have 24/7 front desk support and any of the luxuries that most apartments have, besides a fitness center.
Last edited by JonathanLB; 10-21-2008 at 06:08 AM..
...and with all of this being said, the California Dream is officially, dead. (for me anyways) I can't even fathom making 100K a year, I am a laborer and 100K equals aout to about $1950. per week, that's around $48.00 per hour!!!! I usually only make about $10-12 an hour, the math is my enemy
I also hear people say "Well, you'll make more out here due to the cost of living", Ok I looked into that as well, most labor/retail jobs are the same wage as here in the midwest around 9-11 an hour. That's horrible, I just can't go out there only to hit rock bottom under a beautiful sky. I'll stay here and freeze I guess, at least I'll have a roof over my head. Now I am finally seeing why people are leaving CA, just took me awhile. I love CA and will ALWAYS go there to visit, but looks pretty grim as far as trying to live there. I am not disrespecting CA or anyone at all, but I know a rough road ahead when I see one. Thanks for all your help.
Held out as long as I could but I can't take these crazy numbers flying around on this thread.
Find a room-mate you trust. I share a nice apartment in Los Feliz for $500/month including utilities. Car is paid for and the cell phone is $50/month. Car Ins. $50/month. I just added cable/phone/internet for $100/month. If I work 15 hours a week (I work more depending on how much money I want) for $20/hour take-home, I have more than $100/week left over after all bills are paid. It's not that hard to get by until you get established.
I was raised in the long lost middle class and do not feel that my arrangements now are much different. I'm sure there are others out there who don't find life that incredibly difficult.
totally agree, i grew up with a single father who bought a house for or 250k pound stirling in london, worked 18 hours days and 15 yrs later, after yrs of hard honest work (chauffeur) and yrs of raising us, sold it for 1 million dollars.... that didn't come about from making loads, he only made about 70k pound stirling, we grew up in putney, london (look it up and see if you still think LA is expensive). butit came about from budgeting sensibly, not eating out cooking our meals. etc.. we went on vacations, we camped. but i loved that. So now i'm a gruff 29 yr old hard working male, that will do whatever it takes to support my family and if that means sleeping 4-5 hours a night for 20 yrs, so my wife gets and education and my kids are safe and secure in their futures then so be it. That is my role as a father.... i'm staggered by the high rollers here that actually think they live normal lives haha. we have many employees in LA that make so much less than me, we are currently looking for workers in admin/editor type jobs and most people are asking for like $12-$20 an hour, 165 applicants to be exact, they are all living in LA. millions of others are as well, i highly doubt even 50% of people in LA make what i make, let alone what you guys are making, but they are also making it.
We all do what we have to do, but i think if you earn $5000 after tax each month and you are single, and can only afford to eat out at subway, well that just cracks me up. For $5k i think i'd be ok, in fact i'd be a little more than ok, in Sarasota i brought home about $3200 a month after tax and they only difference was our apartment is $1200 a month instead of say $1500, but on that we ate our, went on vacations, paid all our bills bought stuff tv's ps3's etc... all with cash, never with credit. so it i have an extra say $1000 a month plus... not sure where the struggle will occur. Sarasota is pretty expensive....
Perhaps i am deluding myself, and some of you guys including jonathan have opened my eyes to some aspects i did not consider before, so thanks. But I am not very excited to show you that we can make it on my budget and pretty well, i'll even go so far as to invite you all to chosun galbi on our move anniversary next yr if i'm still in LA.
I was raised in the long lost middle class and do not feel that my arrangements now are much different. I'm sure there are others out there who don't find life that incredibly difficult.
You're right, that's $5,500 after tax, which is a lot of money before tax. That's a good point, clearly.
A $325,000 mortgage is VERY low in Southern California, and would be very low in New York or other major metropolitan areas around the nation. In Portland, Oregon, our condo market is about as expensive as it is here in Los Angeles. It's not overpriced, that's what people are willing to pay and there is the money out there to do so. In my building I don't know any of my neighbors who have problems paying their mortgages. In Portland, you can get condos a BIT cheaper, but not a ton. Usually you're looking at the $450 to $500 per sq. foot range.
This isn't Oklahoma. I'm sorry if you're from some podunk town, no offense, but we don't have those types of prices in major cities. You're absolutely right I could get a HUGE house in Wyoming for a half-mil, but this isn't Wyoming. This is downtown Los Angeles two blocks from Staples in the most desirable neighborhood in this area. It's irrelevant whether you personally, or some other random person, LIKES downtown or likes this area, those of us living here love it and those people still moving in regularly love it as well. It's a very exciting area with a lot of new restaurants opening, L.A. Live two blocks away, ESPN's West Coast headquarters almost across the street from us, the Emmy's are held right down here, major TV commercials of all sorts are filmed here, etc. It's a great place, honestly. And people are willing to pay. In ANY market right now there is weakness, but ours has held up better than most. And I expect ours to recover stronger and faster than most as well.
A $325,000 mortgage is low relative to the value, learn something about real estate, ok? Do you own any property? I own real estate interests in four states. My dad works in real estate, and when I say that I don't mean little residential properties, I mean he has made a fortune in this business. So yeah, I know my stuff, and I pay attention to the markets. A mortgage is low or high relative to the value of the property, and if it wasn't obvious I was saying that it should have been if you know ANYTHING at all about Los Angeles and downtown Los Angeles. If you have a $2 million mortgage on a $10 million property, that's a very low mortgage -- you have 80% equity! I bought my condo at $390,000, which was a bargain! I got it at pre-construction prices. It had appreciated to $520,000 within a year of me buying it. Of course that was ridiculous, and they have since come down, but even at the current prices they sell for, in the $450,000 neighborhood, my mortgage is low relative to that. In other words, I don't have 10% equity or even 20% equity. I have almost 30% equity in the place. That's high by most people's standards when you have just purchased a place, i.e. most people wouldn't put 30% down so they'd get a higher mortgage for the same condo. That's what I was saying. Don't jump down someone's throat and make yourself look like a tool when you didn't have to.
I can't speak for the rents at apartments in downtown Los Angeles, I am not a renter, but I don't think it's true that it's $3 per square foot normally. I know for a fact that in my building, you can rent 1,000 sq. foot units like mine for about $2,000 to $2,100 per month. Is that steep? Well, I guess, it depends on your budget. But it's not that bad, $2 per sq. ft. here is somewhat reasonable. I own part of an apartment complex in Portland and we charge in the $1.30 range but it's not Los Angeles, and it's not a brand new building either. I think $2 per square foot per month is as much as you should really have to pay, but in L.A. I've seen rents up to $3 per sq. foot for small places, or at least near there, the $1,350 per month for 500 sq. foot type of thing. I'd look into some condo buildings with spare condos for rent, rather than the apartment complexes. You'll get a better deal here and you won't regret it, either. We still have 24/7 front desk support and any of the luxuries that most apartments have, besides a fitness center.
Dude, you are smoking crack. Your perception of reality is so far skewed to the insane that I'm laughing.
I'm originally from Dallas. The city. Ever heard of it? There's 5-6 million people in the area. Pretty decent size wouldn't you say? You can get a very nice house there, in the city (imagine that) for less than half what you would pay for a piece of ***** or a little condo in Southern California. Oh wait, I thought everyone had $325k mortgages because that's what all major metro areas sell for. Hahahahahahahahahahahaha!!!!! Talk about a f---ing tool. Jesus Christ dude, get your head out of your a$$.
I'm sorry dude, but for someone that claims to know something about real estate, you really have no idea. I don't care what your dad has made in the business or how many properties you own. The current real estate bust is more proof than I could ever have hoped to have gotten that what I've been saying for the last two years is correct. That people can't even come close to affording homes in SoCal at the prices they were selling for, or even today's prices. The median home price in SoCal should be no more than about $325k MAX!!!!! That's great you think you have 30% equity in a depreciating property, but this bust isn't over. It's not going to bottom for at least another 2-3 years, but most likely longer. We're just getting into it. There are so many more foreclosures coming down the line that inventories are going to stay bloated for quite some time.
A $325k mortgage is low? On what planet? With that kind of mortgage you have to make a good six-figure income, twice the median income of Southern California. If you're making that kind of money you're in the top 5%-10% of wage earners in the entire country. So what you're saying is that the top 10% of wage earners supports the top 50% of the residential real estate market in SoCal? Really? Ever taken a statistics class? If you had you might be able to make a wild a$$ conclusion that those types of numbers aren't remotely possible.
That's great you think everyone makes that kind of money and can afford a $325k mortgage, that it's a bargain, but perhaps you should turn on the TV, or read a newspaper. Done that lately? Noticed any banks failing, or homeowners being foreclosed on? You know, the millions of people that can't afford a $325k mortgage, and the banks that lent them the money? Any clue about that genius?
Sorry I got so worked up, but your condescending attitude, coupled with your complete ignorance of the real estate market just got me going.
Just because someone is willing to pay a particular price for a property doesn't mean that is what it's worth. Take a look around you. Price is what you pay, value is what you get. Value is driven by incomes, not no-doc creative financing and teaser rates. Welcome to reality silver spoon boy.
Dude, you are smoking crack. Your perception of reality is so far skewed to the insane that I'm laughing.
I'm originally from Dallas. The city. Ever heard of it? There's 5-6 million people in the area. Pretty decent size wouldn't you say? You can get a very nice house there, in the city (imagine that) for less than half what you would pay for a piece of ***** or a little condo in Southern California. Oh wait, I thought everyone had $325k mortgages because that's what all major metro areas sell for. Hahahahahahahahahahahaha!!!!! Talk about a f---ing tool. Jesus Christ dude, get your head out of your a$$.
I'm sorry dude, but for someone that claims to know something about real estate, you really have no idea. I don't care what your dad has made in the business or how many properties you own. The current real estate bust is more proof than I could ever have hoped to have gotten that what I've been saying for the last two years is correct. That people can't even come close to affording homes in SoCal at the prices they were selling for, or even today's prices. The median home price in SoCal should be no more than about $325k MAX!!!!! That's great you think you have 30% equity in a depreciating property, but this bust isn't over. It's not going to bottom for at least another 2-3 years, but most likely longer. We're just getting into it. There are so many more foreclosures coming down the line that inventories are going to stay bloated for quite some time.
A $325k mortgage is low? On what planet? With that kind of mortgage you have to make a good six-figure income, twice the median income of Southern California. If you're making that kind of money you're in the top 5%-10% of wage earners in the entire country. So what you're saying is that the top 10% of wage earners supports the top 50% of the residential real estate market in SoCal? Really? Ever taken a statistics class? If you had you might be able to make a wild a$$ conclusion that those types of numbers aren't remotely possible.
That's great you think everyone makes that kind of money and can afford a $325k mortgage, that it's a bargain, but perhaps you should turn on the TV, or read a newspaper. Done that lately? Noticed any banks failing, or homeowners being foreclosed on? You know, the millions of people that can't afford a $325k mortgage, and the banks that lent them the money? Any clue about that genius?
Sorry I got so worked up, but your condescending attitude, coupled with your complete ignorance of the real estate market just got me going.
wow i so agree with you motoman, perhaps not in your harsh tone , but certainly in the content of post.... there are many people, families included living and working in LA, that dont subsist, but actually live good lives on far less than jonathan makes...
The current real estate bust is more proof than I could ever have hoped to have gotten that what I've been saying for the last two years is correct. That people can't even come close to affording homes in SoCal at the prices they were selling for, or even today's prices. The median home price in SoCal should be no more than about $325k MAX!!!!! That's great you think you have 30% equity in a depreciating property, but this bust isn't over. It's not going to bottom for at least another 2-3 years, but most likely longer. We're just getting into it. There are so many more foreclosures coming down the line that inventories are going to stay bloated for quite some time.
We aren't at the bottom yet but will likely get there alot quicker than 2-3 year time frame your looking at. When we get to the bottom we will likely bounce around there for awhile. Current information is indicating we are near the bottom for the lower end of the market. Median price will come down further but that will be due to the decline in the higher end of the market catching up with the lower end of the market.
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, but certainly in the content of post.... there are many people, families included living and working in LA, that dont subsist, but actually live good lives on far less than jonathan makes...
