Is the housing in CA as bad as we hear? (San Diego: loft, condo)

[kettlepot]

Originally Posted by Need_affordable_home

A $900k house is 7.5x the $120k combined income. This is almost 3 times more house than what they should spend on. A $900k fixed 30 year comes out to 5,688 a month or $68256 a year. Then theres other expenses like property taxes, insurance and HOA thatll add easily another $30k a year. They wont have money to buy food! With creative financing, they are living paycheck to paycheck and may end up foreclosed in a couple years unless their house somehow goes up in value quickly and can sell it to get their money back!

Because you've asked for some real numbers several times, I'll put some out there for this particular scenario that you've suggested.

Property Tax on a 900K house would probably be 10-11k a year.

Insurance would probably be 1.5k... 3k with earthquake insurance. Remember insurance is only for replacing the house not the land. A 900K property may only have 200-250k worth of construction on it.

And finally HOA's. HOA's only became popular in California in the past 25 years. There is a lot of single family detached housing out there that doesn't have HOA fees.

So one reason California R/E values are high is because the taxes are low and they go up VERY slowly - only 2% a year. The low and slow taxes keep people from being forced from their homes of 40 or 50 years because of a visit from the taxman. However, they also cause people living in similar houses to pay very different amounts in R/E taxes, and probably keep people in houses they probably should sell so they can downsize.

[TheUtopian]

Originally Posted by City Boy

There is a reason why the prices are expensive. YOu can either be happy in a place like Alabama or Texas or enjoy what CA has to offer. It is a trade off. Same with NYC. Why do you think it's so expensive? People want to live here and there.

I grew up in Marin {Larkspur} lived there for thirty-four years, purchased a 1400 sqft home there {still own it} in 1985 for a 178k {thought I paid too much for it then and now}

In 1993, I then moved to central Oregon and purchased 6 acres with a small farm house for 48k. Lived there for a few years then my job took me to the Texas Hillcountry, ala Fredericksburg. I purchased a place with a small amount of acreage very similar to what I have in Oregon.

What I am here to tell you is, there is no logic in the world that can justify such an enormous gap that exists between the housing market is places like Missouri, Oregon. Texas, Alabama to that of California.

Sure there's trade off's....California has great year-around weather, but the traffic sucks. California has great cultural amenities, but you'll be paying 10k a year in property taxes to experience it, etc etc.

The other thing you have to consider when you live /purchase in California is long term job stability to pay that high mortgage off if you don't already have lots of cash.

These globalists' that are running our government are on furious pace selling-out our manufacturing /machine-tool base and continued outsourcing white-collar jobs. Some people think that's funny....but let me tell you, if your job can be outsourced and someone in the hierarchy can get a pat on the back or bonus from, they're going to do it sooner or later.


And then you have the long-term possibility of deflation{after you buy}due to financial gentrification in your housing markets from the illegal alien crisis that plagues the state.


Anyways.... I love Cali, love the weather and have all my lifelong friends there, but as someone who has lived there, lived elsewhere and been around the block a few times, I'm here to tell the outa-towners that there's way better deals elsewhere in the country, and unless your very very well off and have money to burn, I'd be careful of California

[City Boy]

You're entitled to your opinion but I am willing to shell out the price I do to live here. Rather than be in Texas, Missouri, Oregon or anywhere else. The only other place I could live in New York City. Those other places can offer me nothing I would like. I dont like to be landlocked. I like diversity and culture, I like being near water and I enjoy a vibrant night life. No major city in any of those states appeal to me in any way. I've been to houston, Dallas, Port Aurthur, St. Louis, Portland, etc etc. I'm not impressed by any means. Its the bay area or New york city only for me. Maybe Honolulu. I love it there too.

[shannon94]

Great post Utopian!!! I'm glad I spent my younger life in Cali....but when you grow up and start having kids other things besides the weather become more important in life.

[AK123]

Originally Posted by City Boy

I dont like to be landlocked. I like diversity and culture, I like being near water and I enjoy a vibrant night life. No major city in any of those states appeal to me in any way. I've been to houston, Dallas, Port Aurthur, St. Louis, Portland, etc etc. I'm not impressed by any means. ...

Houston actually does offer all of those things, most people just don't know about it. It's got a downtown theatre district second in size to NYC, ranks #3 in both number of foreign consulates and number of pleasure boats, has lots of diversity, etc. But like I said, most people have no idea.

Port Arthur in TX? Bleh...

[City Boy]

Originally Posted by JJP

Houston actually does offer all of those things, most people just don't know about it. It's got a downtown theatre district second in size to NYC, ranks #3 in both number of foreign consulates and number of pleasure boats, has lots of diversity, etc. But like I said, most people have no idea.

Port Arthur in TX? Bleh...

I dont know I found Houston Depressing. Not to mention it is the hottest place ive ever been to in my life. The crime there is worse than Oakland.

[gizmo980]

Originally Posted by City Boy

You're entitled to your opinion but I am willing to shell out the price I do to live here. Rather than be in Texas, Missouri, Oregon or anywhere else. The only other place I could live in New York City. Those other places can offer me nothing I would like. I dont like to be landlocked. I like diversity and culture, I like being near water and I enjoy a vibrant night life. No major city in any of those states appeal to me in any way. I've been to houston, Dallas, Port Aurthur, St. Louis, Portland, etc etc. I'm not impressed by any means. Its the bay area or New york city only for me. Maybe Honolulu. I love it there too.

I'm with you! I grew up in the Bay Area, but was born in Maryland, and have also lived in Oregon & other parts of Calif. Always end up back here, because it has so much to offer... and now that I have a great job, it's likely I'll stay for a LONG time (forever?). The only other cities I'd consider are Portland (OR), Seattle and Vancouver, since they're pretty similar - but parts are much cheaper than CA, and have some amazing scenery. No offense to Texas, but the weather alone is enough for me to say "no thanks".

[Need_affordable_home]

I agree, I would melt in the Texas summer heat! Id rather be somewhere like TN or NC instead. Id love to live in the maritime west coast but prices are dear and creative financing isnt a wise idea. Are you gonna take interest only mortgage, Gizmo?

[gizmo980]

Originally Posted by Need_affordable_home

I agree, I would melt in the Texas summer heat! Id rather be somewhere like TN or NC instead. Id love to live in the maritime west coast but prices are dear and creative financing isnt a wise idea. Are you gonna take interest only mortgage, Gizmo?

I really have no idea yet, NAH... as I've said, I'm pretty clueless about real estate, so that will be up to my financial advisers (sister & banker). But since you know more about it, what are the advantages & disadvantages to that?

[AK123]

Originally Posted by City Boy

I dont know I found Houston Depressing. Not to mention it is the hottest place ive ever been to in my life. The crime there is worse than Oakland.

Maybe you weren't in the right areas.

I see Oakland as #21 on this high crime city list, but don't see Houston. The crime in Houston is not what most people think.
http://www.governmentguide.com/commu...rouscities.adp