Can a family live comfortably on 90K a year? (Pasadena: lease, house)

[calipoppy]

Originally Posted by ragnarkar

I think you might want to look at Rosemead or Alhambra.. they're reasonably close to downtown.. I hear Alhambra has slightly better schools and is closer but is also a little more expensive.

90K is definitely doable in both cities if you are not wasteful (seek the Frugal Living forum for a tip or two); this still leaves you with plenty of money to enjoy the excellent food in the area.

Rosemead is just so ugly. San Gabriel would be better in that area.

[urbanr0cker]

Originally Posted by bhcompy

People are capable, yes, but when you start talking about children and school it is a completely different story. The fact of the matter is that housing prices still far outpace affordability metrics, so anyone looking for a home in a nice area with nice schools will have a tough time on a lower budget. My family manages on a similar salary by living in a crappy 40+y/o 2bd apt in a good area. We can afford a house... in Temecula

I'm sorry, you really think you'd have to pack your family off to some place like Temecula to make up on $90k? That's...ridiculous. But it's exactly what I was talking about. There are literally dozens of neighborhoods that are safe and affordable within the greater Los Angeles area. Where are you people getting these figures from?

As it stands, I can't see how your family has been relegated to a 'crappy 40+y/o 2bd apt' as it is. I don't see that being reasonable at all. Your family would have to be dealing with issues of massive, bankrupting debt for a comparable salary not to afford you a decent or more suitable home.

[bhcompy]

Originally Posted by urbanr0cker

I'm sorry, you really think you'd have to pack your family off to some place like Temecula to make up on $90k? That's...ridiculous. But it's exactly what I was talking about. There are literally dozens of neighborhoods that are safe and affordable within the greater Los Angeles area. Where are you people getting these figures from?

As it stands, I can't see how your family has been relegated to a 'crappy 40+y/o 2bd apt' as it is. I don't see that being reasonable at all. Your family would have to be dealing with issues of massive, bankrupting debt for a comparable salary not to afford you a decent or more suitable home.

Classic metric for home affordability(and the historic national average) is mortgage=~2.5x annual earnings. Tell me where to find a nice home under $250k in the LA area(don't forget to factor in taxes, insurance, and HOA, because it's the revolving cost that matters). I can find something for $100k more in a nice part of Lakewood. Get above average schools, decent neighborhoods, and decent infrastructure, but that is a significant boost to the revolving debt cost.

If you want to spend 40% of your income on housing that's your prerogative. I want to have a retirement, have emergency funds, be able to afford a tutor if I need to, etc.

[Lapushka27]

That's just it! I do not want to be house poor, even if I am renting. I think we would do fine with all of the other expenses, if the cost of housing weren't so high, even in areas far from downtown. $2200/month for rent on the low end is pretty expensive in my book.

[JohnG72]

Originally Posted by bhcompy

Classic metric for home affordability(and the historic national average) is mortgage=~2.5x annual earnings. Tell me where to find a nice home under $250k in the LA area(don't forget to factor in taxes, insurance, and HOA, because it's the revolving cost that matters). I can find something for $100k more in a nice part of Lakewood. Get above average schools, decent neighborhoods, and decent infrastructure, but that is a significant boost to the revolving debt cost.

If you want to spend 40% of your income on housing that's your prerogative. I want to have a retirement, have emergency funds, be able to afford a tutor if I need to, etc.

Los Angeles County has long been around 3.8-4.5x median income, at least as a historical average. While that metric blew up starting around 12-13 years ago, it has come back down(not far enough though...its still around 5-6x)

But theres a mitigating factor although its not as great as it seems. Its the low interest rates. Obv one would prefer a lower price with higher interest rates since its easier to pay off if one's income increases. But still, it creates a situation where a home at 4-4.5x income is affordable, if only on a monthly payment basis.

[Tasksgirl]

It depends on what area you want to live in, but we own a 2br home in an OK area and we make a combined 75k. We have one car, with no car payment. We do use coupons and things whenever possible just because I hate paying more for something than I have to

[Digitalretouch]

I can't believe people are recommending Pasadena. It costs SO much to live there. I used to live in Burbank and I swear it's cheaper than Pasadena, and believe me, Burbank's no slouch. Burbank has good schools, but house rentals are expensive and you get a teeny house. We chose to move West and live in a nice part of Van Nuys. If you're close to the 170, you can take it to the 101 to get downtown. Nothing good is close to downtown, period. Not if you have kids. Lots of cute funky places I'd have lived when I was young and single, but not now. The San Fernando Valley is your best bet. You can find someplace in Valley Glen (fancy Van Nuys), Valley Village (fancy North Hollywood), North Hollywood or Burbank perhaps.

I AGREE wholeheartedly about not using Craigslist, even as a price research tool because right now there is this ONE scam rent-to-own scam company that hires college kids to put fake ads up with fake pictures, and not only are the prices and listings bogus (I.e. the places don't exist, thus the ads always reference cross streets but never a real address), but the pictures the kids pick aren't even in the ballpark of the house prices they are listing. They put up pictures of million dollar houses (the LA version - not THAT fancy, but moderately nice) for $2000/mo rentals. For a house rental at $2000/mo, you're getting a basic house, maybe nice, but not atrium ceilings and plantation shutters and kitchen islands and for God's sake, never two stories!

You'll have to pay the fee for Westside Rentals - there is really almost no way around it.

[HoliWood]

As a person living in Pasadena, I want to pipe in and say that at $90K, you should be just fine in Pasadena. Safety is relative in all of L.A. area, really. But in Pasadena, specifically...anywhere South of Colorado Blvd/South of the 210 freeway towards San Marino and anywhere west of Sierra Madre Blvd (God, I hope I'm getting the directions right!) is nice and safe - all the way into most of South Pasadena. If you're looking to rent from a distance, it's more difficult because what you see online is not always what you get. But you can always opt for a month-to-month temporary housing (if possible for you guys) that's furnished and then look around/drive around and find something you like/can afford.

Shopping at Trader Joe's for regular food is great (though, boy, their prices have gone up recently!), and eating out once a week is also within budget, I think. The biggest surprises in budget is usually: electric bill (remember it's warm around here most of the year), gasoline, and also remembering to save emergency funds. Your daughter is not school age yet, so you have time to sort that bit out. But for now, I would definitely recommend renting for the first year until you are familiar with the area and maybe find something to buy by then?

I don't know why so many people are saying you won't be okay on $90K for the 3 of you. Believe me, you can be okay; you just have to know how to budget and spend smartly.

If you have questions about Pasadena, PM me - I live around here and can help with location information, if you'd like.

[Tasksgirl]

Where did you end up deciding on?

[Lapushka27]

Thank you all so much for your input. We visited in November and looked around several different areas. We decided we liked Pasadena/Monrovia the best, and I think we will be able to find something reasonable for us there. We need to sell our house on the east coast first. That has been a challenge.