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Old 11-09-2011, 02:51 PM
 
812 posts, read 1,470,559 times
Reputation: 2134

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Quote:
Originally Posted by yoyoma02 View Post
So, if I could sock away $100k in the next five years and then move back to Minnesota, I could almost buy a house for cash.
I did something similar, but in Santa Barbara (talk about expensive housing!). Spouse and I both working, we saved roughly $125K in several years at miserable jobs, then moved back to Colorado and, along with some other savings, put a 50% down payment on a house in a neighborhood very similar to what Westside LA was like 25 years ago. You must have iron discipline to pull it off however, young grasshoppa.
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Old 11-10-2011, 09:46 PM
 
Location: Metro Phoenix
11,039 posts, read 16,863,416 times
Reputation: 12950
Quote:
Originally Posted by yoyoma02 View Post
I have lived in LA for the past year and a half. I moved out here for a job. While I don't make a ton of money, I'm making about $60k a year which is the most I've ever made in my life (I'm from a small town in the midwest).

While I love LA, it's so just friggen expensive. It really gets depressing thinking that I'll have to wait another 20 years to buy a basic starter house. Not only that, but if I were making $60k in small town Minnesota, I could basically afford to do anything I wanted...
But could you make that $60k in small-town Minnesota?

Quote:
Has anyone ever thought about taking the money they make on the West Coast, saving a bunch of it, and then moving to the midwest, where you could buy a house for pennies on the dollar as what it would cost out here?
There is absolutely nothing that could make me consider such a wretched idea.

Quote:
Ahh.. just thinking about all the money I'm spending to live out here...
Urban life isn't for everyone, and millions of people have done just what you're talking about.
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Old 11-11-2011, 05:41 PM
 
927 posts, read 2,466,766 times
Reputation: 488
Quote:
Originally Posted by smdensbcs View Post
I did something similar, but in Santa Barbara (talk about expensive housing!). Spouse and I both working, we saved roughly $125K in several years at miserable jobs, then moved back to Colorado and, along with some other savings, put a 50% down payment on a house in a neighborhood very similar to what Westside LA was like 25 years ago. You must have iron discipline to pull it off however, young grasshoppa.
This is exactly what I'm saying! (even though I like my job)

I save enough to have $125k to put down on a house in a few years. However, I've been saving since college though.
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Old 11-11-2011, 07:28 PM
 
Location: San Antonio TX
381 posts, read 768,215 times
Reputation: 230
I am a ahead of you. I moved from LA to San Antonio with the wife and my 4yr old daughter. I make about 50k a year and the wife is not working right now, so we would've never been able to afford a nice house like the ones that they have here. Yes the weather is nicer in California , but the economy and cost of living here is much better. Now next year I'll be able to buy a nice 1500ft home for about $145k, and a mortgage of $1100 a month. It was either that or pay $1200 for a crappy two bedroom apartment somewhere in the San Fernando Valley full of roaches.
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Old 11-14-2011, 07:54 PM
 
56 posts, read 126,649 times
Reputation: 43
I get what you mean. I too love LA and am a native, but I'm seriously considering moving once I get done with grad school. It's pretty much a given that you'll make less if the cost of living is less, but that difference really depends on the area. For instance for my career, I would make 80% of the LA salary if I lived in Portland, but the cost of owning or renting is 55-70% of LA prices. I'm ok with taking that pay cut if it means that the house is nearly half price!
Depends, though. If LA's got a particular draw to you that you can't get elsewhere... well, I think it's better to be happy with where you live than be totally unhappy but have good savings.
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Old 11-14-2011, 09:41 PM
 
Location: Chicago, IL
725 posts, read 3,014,631 times
Reputation: 601
L.A. Native here - I was with a West LA/ Santa Monica based company for 6.5 years making a rather sad salary (considering the amount of time I was with the company, but decent by college student standards I suppose)... I moved to the midwest in Summer 2008 and immediately made more money with the first job I landed... now I'm with another company making double what I was making in Santa Monica, and am about to purchase my first home (alone) I could NEVER do that in L.A.!
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Old 11-15-2011, 04:35 PM
 
927 posts, read 2,466,766 times
Reputation: 488
Quote:
Originally Posted by s0nginmyheart View Post
L.A. Native here - I was with a West LA/ Santa Monica based company for 6.5 years making a rather sad salary (considering the amount of time I was with the company, but decent by college student standards I suppose)... I moved to the midwest in Summer 2008 and immediately made more money with the first job I landed... now I'm with another company making double what I was making in Santa Monica, and am about to purchase my first home (alone) I could NEVER do that in L.A.!
This... I need to do this!
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Old 11-16-2011, 02:40 PM
 
497 posts, read 1,503,976 times
Reputation: 313
Strive to save enough to buy the midwest home outright or at least have enough to do so. You may want to have a loan if the interest rate is still low but won't have to be stuck with a loan if rates are through the roof.
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Old 11-16-2011, 06:03 PM
 
Location: Armsanta Sorad
5,648 posts, read 8,057,151 times
Reputation: 2462
Maybe.
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