Ladera Ranch future home prices

[preppyglam]

I agree, k374....$400K is NOT a starter house! That's why we aren't buying in CA! haha! Friends that I know that DO own something (small house, townhouse) either got a co-signer, "knew" someone who pushed their loan through (oddly, they aren't in foreclosure- so they must be able to make the payments), got help with the down payment from their parents/family member or inherited money and used it as a down payment. In EVERY case it was one of those situations. Every one. We are all in our late 20's, college educated and professionals.....but if they would actually saving for their down, putting the right proportion of down payment down, or shopping for something in their income range....it would have taken them A LOT longer to get that house. And, what's sad, is everyone we know who owns just kinda lived in an "average" type of situation....track house or townhouse. Yet, because of the location- they paid anywhere from $425-$850K (at the height of the market). The thing that kills here is the down payment. Nearly everyone renting out here pays what a "normal" mortgage would be for a three bedroom house elsewhere. Our rent is $1400 for a two bedroom apartment. How on earth do you save for a down payment when all your money goes to rent? We could easily pay a mortgage, but need the down first. Its like a cyclical battle you cannot win unless you a) cave and accept help from mom and dad (which we dont want to do- we want to make it ourselves and feel the pride from doing so), or b) remove yourslef from the situation...or, I guess option c)which is wait until you are 45 to buy that first house.

I don't think its a function of being brainwashed....I think its more a function of that's what you see/grow up around when you are from a high dollar real estate area. That IS your option for a "starter house"....there are no other options! Its either rent, or (possibly) find a one bedroom condo to buy....but even then, you are looking at $300K in areas with decent schools, not out in the boonies (meaning a different county- like Riverside county), etc. And, even if you DID buy that one bedroom condo...you can't grow with it! You can't have a baby, a lot of condo/apartment complexes/HOA's don't allow dogs....its a viscous cycle. Even now, with "prices going down".....they aren't THAT low to where all the sudden people can afford/qualify for a house in OC. Its the people who can afford/qualify for them just getting better deals on them. High dollar real estate has lost value (in some cases 100,000's) but something was that $850K, would now be $675...see what I mean? That's still high. And, places that have townhouses, such as Ladera Ranch....those may have initially sold for over or close to $500K, but now they are selling for low $300's....then add those CRAZY HOA's for townhouses/condos....and that's equal to paying a $500K mortgage again.

[Charles]

Originally Posted by preppyglam

How on earth do you save for a down payment when all your money goes to rent?

You don't buy a fancy car, drink Starbucks three times a week, rent (or worse buy) DVDs or CDs, have fancy rims on your car, go on vacations, eat dinner out more than once a month, go out for lunch at work (instead of brown bag), have $20K weddings, buy new clothes or shoes monthly, buy a POS Ipod or POS Itunes, visit bars (ya, I'll have a $7 beer, and here's a $2 tip), buy books, or have a gym membership so you can walk on a treadmill on a beautiful sunny day.

How One Couple Saved for Their Dream Home In 5 Short Years

You can get any movie or CD for free from Download music, movies, games, software! The Pirate Bay - The world's largest BitTorrent tracker
Books from the library
Grocery stores for beer
Exercise is free
Brown bag your lunch

OR

You can lower your standards and borrow from the B of M&D

OR

You can move to somewhere more affordable.

Oh, and here are 262 four bedroom, single family homes in Orange County for less than $400K:

http://www.redfin.com/search#lat=33....5&zoomLevel=11

[preppyglam]

Some of the solutions you pointed out, Charles, are solutions I mentioned (borrow from mom and dad, move somewhere more affordabe- which is what we are planning on doing). I don't want to get into an argument about Starbucks and going out a lot (which, really we don't do all that often)- but I will say I agree. You def. have to budget. We save a lot and put a lot away for retirement, so I *get* it.

I would, however, like to point out that those 262 homes you found are in some of the absolute worst areas in OC. Santa Ana, aside from two specific pockets- its NOT an area you would even want to invest in let alone live in full time. On top of that, Santa Ana schools are not places you would want to send your kids to.

Im fine with it- because we are thrilled to be leaving. I have tons of family out here- so its not like I can never come back and visit. But OC is not the OC my parents grew up in or raised me in. I don't want it for my future kids and my family, so its adios!

[julianap]

Originally Posted by Charles

You don't buy a fancy car, drink Starbucks three times a week, rent (or worse buy) DVDs or CDs, have fancy rims on your car, go on vacations, eat dinner out more than once a month, go out for lunch at work (instead of brown bag), have $20K weddings, buy new clothes or shoes monthly, buy a POS Ipod or POS Itunes, visit bars (ya, I'll have a $7 beer, and here's a $2 tip), buy books, or have a gym membership so you can walk on a treadmill on a beautiful sunny day.

How One Couple Saved for Their Dream Home In 5 Short Years

You can get any movie or CD for free from Download music, movies, games, software! The Pirate Bay - The world's largest BitTorrent tracker
Books from the library
Grocery stores for beer
Exercise is free
Brown bag your lunch

OR

You can lower your standards and borrow from the B of M&D

OR

You can move to somewhere more affordable.

Oh, and here are 262 four bedroom, single family homes in Orange County for less than $400K:

Redfin

Well said Charles. Well said.

[NickelDime]

Originally Posted by Charles

You can get any movie or CD for free from Download music, movies, games, software! The Pirate Bay - The world's largest BitTorrent tracker

Charles, I can't believe you would condone this as a way to access copyrighted content.

It is both illegal and immoral -- and I say that as someone who works behind the camera slugging it out for a decent wage.

Redbox rentals are $1. Is it really worth $1 to expose yourself and your family to an unlawful download ? Is it really worth the $1 to put more folks out of work ?

A horrible thing to suggest - I was a fan of yours up until reading this suggestion.