Six figure income in Southern Calif. (Irvine, Mission Viejo: rent, condo, home equity)

[wsugrad03]

With home prices as they are in SoCal, I think it's practically impossible for first time home buyers to get a foot hold into the housing market. If a typical newer tract home in the OC goes for $700-900K, a first time home buyer will need an income of $200K to pay the mortgage AND invest for retirement AND save for children's college education AND to just afford a living. Maybe the top 5% of young families can actually do that.

What kind of income do you REALLY think a single family needs to actually afford a comfortable living in a good neighborhood of OC?

My wife and I make $130K a year in Seattle and it's not enough to afford to buy a home in the best school districts. We're basically forced to live in condos or townhomes. We want to move to Orange County or San Diego, but the economic penalty of living in SoCal is so steep that I think it'll always be an uphill battle. I mean, right off the bat we'll be loosing about $11,000 a year in state income tax, so any pay increase we might get will immediately be absorbed by taxes.

My wife is just finishing law school, and I'm finishing my masters in software engineering, so maybe our income will increase enough to live in California. But right now, it looks impossible.

Another thing I think we need to agree on is nobody in California will ever see another housing boom like you did in the last 10 years. The rest of the first home home buyers won't be able to trade in their initial $300K investments into $1.8M fortunies in 10 years time. The people who got rich had a very lucky ride. But those days are gone now.

[EscapeCalifornia]

That's exactly why I'm leaving. I've given up on the idea of ever being able to afford to live a decent life (ie. NOT house poor) in a modest house in a safe neighborhood in the county I was born and grew up in.

[Soccersupporter]

Originally Posted by EscapeCalifornia

That's exactly why I'm leaving. I've given up on the idea of ever being able to afford to live a decent life (ie. NOT house poor) in a modest house in a safe neighborhood in the county I was born and grew up in.

Check out Texas, it has a lot to offer.

[EscapeCalifornia]

Originally Posted by Soccersupporter

Check out Texas, it has a lot to offer.

We're actually checking out Colorado. Our third scouting trip is scheduled for next month. I have family in Austin and would love to live there but the LONG, HOT, AND HUMID summers would kill me.

[cobmw]

I'd be glad to give some information on the areas north of Denver. It's much like CA used to be before the last 25 million people moved there.

[Charles]

Originally Posted by EscapeCalifornia

We're actually checking out Colorado. Our third scouting trip is scheduled for next month. I have family in Austin and would love to live there but the LONG, HOT, AND HUMID summers would kill me.

If you haven't done so, consider the area in between Colorado Springs and Denver (like Castle Rock, Larkspur, Parker, and Monument). You can easily work in either city (COS or DEN), there is no traffic, there is excellent demographics, and there are excellent schools. I'm very happy here.

[Soccersupporter]

Originally Posted by EscapeCalifornia

We're actually checking out Colorado. Our third scouting trip is scheduled for next month. I have family in Austin and would love to live there but the LONG, HOT, AND HUMID summers would kill me.

I agree regarding the heat but my wife can't handle the cold too well so we settled for the heat during the summer rather than too cold during the fall/winter.

[EscapeCalifornia]

Originally Posted by Soccersupporter

I agree regarding the heat but my wife can't handle the cold too well so we settled for the heat during the summer rather than too cold during the fall/winter.

Well we'll find out how my wife reacts to the cold in a couple of weeks. I have more experience with cold environments than her, having worked in a freezer in a grocery store and made a few trips to the Midwest in the fall and winter. The saving grace of Colorado looks to be the fact that its usually bright and sunny (and strong sun at that because of the altitude) even when its 30F.

[jvazjr]

Dont leave yet! Prices will continue to drop in SoCal. When your both finish scholl you should have no problem buying a nice home in Irvine for about 400-500k soon.

[EscapeCalifornia]

Originally Posted by jvazjr

Dont leave yet! Prices will continue to drop in SoCal. When your both finish scholl you should have no problem buying a nice home in Irvine for about 400-500k soon.

I wouldn't bank on a 50% drop in Irvine. Santa Ana, yes. Lancaster, yes. Irvine, not too likely.