U.S. CitiesCity-Data Forum Index
Covid-19 Information Page
Go Back   City-Data Forum > U.S. Forums > California > Orange County
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
 
 
Old 08-15-2013, 09:45 PM
 
Location: Orange, California
1,576 posts, read 5,833,605 times
Reputation: 738

Advertisements

Trust me, you can make it work on $200k a year. You have to decide, however, how much house you want and how much you're willing to cut back on other expenses to make it happen. If you have $100k to put down (or borrow from 401ks or rich uncles), that $450k mortgage gets you into a $550k house. $550k will not buy you a palace in Newport Beach, but it could get you a decent 3/2 in places like Fullerton, Orange, Fountain Valley, Lake Forest, and some other places. Truth is, with 20% down, you could probably succeed in getting a mortgage for $600k plus with that income, allowing you to buy a house of $700k or more. The decision really boils down to how much you are willing to sacrifice in other parts of your life to buy the kind of house you want to live in.

Good luck. And I agree, the housing prices really are crazy in Southern California. But not so crazy that a $200k family income is totally priced out of the market.
Rate this post positively Quick reply to this message

 
Old 08-16-2013, 05:19 AM
 
Location: San Angelo, Texas
795 posts, read 1,398,221 times
Reputation: 783
Quote:
Originally Posted by mbell75 View Post
Where in the OC can you rent a HOUSE for $2k - $2500? That's what apartments run out here.
Yep, I was going to say the same thing.
Rate this post positively Quick reply to this message
 
Old 08-16-2013, 05:30 AM
 
Location: San Antonio
4,287 posts, read 5,151,711 times
Reputation: 5074
You answered the student loan question, but $125 per week in gas? How far do you commute? Is there a less expensive area closer to work?
Rate this post positively Quick reply to this message
 
Old 08-16-2013, 06:10 AM
 
Location: So Ca
19,411 posts, read 17,533,557 times
Reputation: 17009
Quote:
Originally Posted by shishkabab View Post
Subtract 1700 for student loan payments
Yowza; no wonder. Pay off that debt before you think of buying a home.

Housing prices here continue to be overvalued right now, anyway. http://www.latimes.com/business/mone...,6184676.story
Rate this post positively Quick reply to this message
 
Old 08-16-2013, 08:17 AM
 
Location: Orange County, CA
5,374 posts, read 7,047,901 times
Reputation: 4494
For the most part, $2-2.5K is apt/condo/townhouse territory, but a few SFRs are out there in that price range. It took me less than 5 minutes to find these. Some are very small.

21896 Huron Ln, Lake Forest, CA 92630 - Home for Rent - realtor.com®

25 Poppyfield Ln, Rancho Santa Margarita, CA 92688 - Home for Rent - realtor.com®

27962 Via Chocano, Mission Viejo, CA 92692 - Home for Rent - realtor.com®

26786 Via San Jose, Mission Viejo, CA 92691 - Home for Rent - realtor.com®

25361 Costeau St, Laguna Hills, CA 92653 - Home for Rent - realtor.com®
Rate this post positively Quick reply to this message
 
Old 08-16-2013, 09:49 AM
 
Location: O.C.
2,821 posts, read 2,937,718 times
Reputation: 2090
That last one in Laguna is actually quite nice. Surprised to see it that price. I'd for sure check that one out if I had any desire to stay in CA
Rate this post positively Quick reply to this message
 
Old 08-16-2013, 10:13 AM
 
Location: Orange County, CA
5,374 posts, read 7,047,901 times
Reputation: 4494
Quote:
Originally Posted by shishkabab View Post
Here's the scoop... We make 200k combined a year, and after running all the numbers, I don't see how we could afford anything more than a 450k mortgage, which I'm sure you all know doesn't buy much in OC

Some details:
Combined take home per month is roughly 9k
Subtract 1700 for student loan payments
300 car payment
500 gas
325 phones/cable/Internet
500 food
500 misc for drinks/movies/eating out etc


That leave us with about 5100 for a mortgage. Lets say we pay around 3k a month on a 450k mortgage, that's leaves us with 2100 a month for savings and other misc expenses. To me this seems low. Am I being overly frugal? Would you spend more on a home and feel comfortable?
You can easily afford a home in OC, just cut back on unnecessary expenses like the $325 for phones/internet/cable and the $500 mad money. Think about it. Do you really need a zillion cable TV channels, the highest speed internet connection, or lots of data usage charges for your cell phones? Do you even need cable TV???

You can get internet service in OC for about $50/month. You can watch "TV" on Hulu or HuluPlus. and use a Roku box to stream the videos to your television screen. Add Netflix for movies. Monthly no-contract cell phone plans can be had for about $60/month, or even less.
Rate this post positively Quick reply to this message
 
Old 08-16-2013, 10:20 AM
 
5,915 posts, read 8,806,837 times
Reputation: 6492
Can I ask how much you took out in student loans? That's over 400k in repayment! I thought my 40k in loans was high. I would keep renting, and pay every extra penny I had toward those student loans.
Rate this post positively Quick reply to this message
 
Old 08-16-2013, 10:38 AM
 
35,319 posts, read 44,590,795 times
Reputation: 30790
Quote:
Originally Posted by shishkabab View Post
Here's the scoop... We make 200k combined a year, and after running all the numbers, I don't see how we could afford anything more than a 450k mortgage, which I'm sure you all know doesn't buy much in OC

Some details:
Combined take home per month is roughly 9k
Subtract 1700 for student loan payments
300 car payment
500 gas
325 phones/cable/Internet
500 food
500 misc for drinks/movies/eating out etc


That leave us with about 5100 for a mortgage. Lets say we pay around 3k a month on a 450k mortgage, that's leaves us with 2100 a month for savings and other misc expenses. To me this seems low. Am I being overly frugal? Would you spend more on a home and feel comfortable?
You sound like you are young but want all the goodies a lifetime of working brings,You may not agree but you need to downsize all aspects of your budget and your aspirations at this level of your life.
Cars/gas/maintenance/insurance and everything that goes with them could be scaled back to more economical levels,along with all your electronic hookups
I'd halve that $450K mortgage at this time and look to that price range 10 years up the road.
The mad money and the food monies could be reigned in substantially.
The student loan repayment is a real long term financial albatross its fortunate the schooling paid off in a well paying job.
You havent mentioned current debts as in credit cards or lines of credit payments, insurances, healthcare and many other factors that seem to find their way into a monthly budget.
I think you are setting your sights on a lifestyle that is a bit above your current financial means to support at the moment..
Kids would definitely sink your ship..

Last edited by jambo101; 08-16-2013 at 11:59 AM..
Rate this post positively Quick reply to this message
 
Old 08-16-2013, 10:48 AM
 
918 posts, read 1,112,354 times
Reputation: 608
Your student loan is almost equivalent to a long mortgage. Isn't the ratio 3x salary to debt? I'm guessing roughly 600-700k debt to your combine 200k salary.

BTW. If you are going to save on having fun by not going out, might as well live in any random/flyover state with lower COL. I dont thing 500 is alot for funny money, so have fun going out/beach/etc, you are only young once.

Its not saving much, but you can cut your communication bill by 1/2. 50$ internet, tmobile 60$x2

I personally would still slum it for a few years in a 1000-1200 a month 1 bd room apartment, cut the communication, try to save on the gas, eat smartly but cheaply and save more money before buying a house. That would save you 20-40k a year over owing per a year.
Rate this post positively Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


 
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Settings
X
Data:
Loading data...
Based on 2000-2020 data
Loading data...

123
Hide US histogram

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > U.S. Forums > California > Orange County
Similar Threads
Follow City-Data.com founder on our Forum or

All times are GMT -6.

© 2005-2020, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Contact Us - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37 - Top