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Old 03-03-2012, 09:51 PM
 
3,875 posts, read 3,871,765 times
Reputation: 2527

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Quote:
Originally Posted by Ultrarunner View Post
Of course "Easy" money combined with desire causes prices to increase.... add speculation and you're building a bubble.

I heard many times a few years ago... "Today's high price will be tomorrow's bargain"

The people that bought into that were looking to score or thinking it was their last chance to own...

It wasn't that long ago a person needed 3 years of employment history... two years on the same job, 20% cash down, 6 months reserves in the bank plus closing costs... and the home had to appraise and have termite clearance...

Rent is high because by hook or crook... people are willing to pay rather than leave...

The more desirably the area the more people willing to beat out the next guy by paying more to live there...

Add the restrictions on supply... mostly on lack of build able land, zoning, environmental and the desirable becomes exclusive based on affordability

There area some alternatives... mobile home parks and jobs that have a housing allowance... like resident manager or apartment maintenance jobs or caretaker positions... and don't forget about all the in-law and pool houses in the affluent neighborhoods too.
Have you checked the facts posted on zillow, here's a house in OC (next to LA) it lists 5 bedrooms 2 bath rooms when public records list 3 br 1 bath. Another in LA county4/3 1700sq.ft when public records show 3/1 at 1272sq. ft.

In areas heavy with illegals you have unpermitted, illegal garage coversions, patio rooms, subdivided garages and multiple families crammed in.

When you click on the blue lettering that says " more facts" you'll see the discrepancies. More overcrowding in some neighborhoods, when you cram in 12 to 15 people that are leeching off social services you can see how they make it.

Most legal and habitable dwelling are required to have a window for an escape in case of a fire and be inspected before being permitted.Los Angeles Unpermitted Guesthouse and Garage Conversions
Unpermitted Addition - Trulia Voices
1885 MOLINO Ave, Signal Hill, CA 90755 | MLS# P766629

This is very common in parts of S. California. One can't expect Illegals to follow any laws as they believe they are above them. There has even been cases recently where Building Code agents from LA were bribed to OK this.
L.A. building inspectors accepted up to 40 cash bribes and a vacation, informant tells FBI [Updated] - latimes.com
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Old 03-03-2012, 10:04 PM
 
28,115 posts, read 63,680,034 times
Reputation: 23268
Quote:
Originally Posted by marilyn220 View Post
We're talking about LA not northern california. Everyone knows their economy is 10 times better than over here.
Here is the quote I was responding to...

Quote:
Originally Posted by sajae90
Only a small few makes a pretty penny in California. The biggest fields that are thriving there is the Entertainment and fashion industry. What other field is thriving in Cali that I don't know of?
The poster sajae90 clearly said only a small few makes a pretty penny in California...

As mentioned... Google has more than one location and there are a number of newly minted California millionaires from just one firm...
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Old 03-03-2012, 10:07 PM
 
28,115 posts, read 63,680,034 times
Reputation: 23268
Quote:
Originally Posted by antarez View Post
Have you checked the facts posted on zillow, here's a house in OC (next to LA) it lists 5 bedrooms 2 bath rooms when public records list 3 br 1 bath. Another in LA county4/3 1700sq.ft when public records show 3/1 at 1272sq. ft.

In areas heavy with illegals you have unpermitted, illegal garage coversions, patio rooms, subdivided garages and multiple families crammed in.

When you click on the blue lettering that says " more facts" you'll see the discrepancies. More overcrowding in some neighborhoods, when you cram in 12 to 15 people that are leeching off social services you can see how they make it.

Most legal and habitable dwelling are required to have a window for an escape in case of a fire and be inspected before being permitted.Los Angeles Unpermitted Guesthouse and Garage Conversions
Unpermitted Addition - Trulia Voices
1885 MOLINO Ave, Signal Hill, CA 90755 | MLS# P766629

This is very common in parts of S. California. One can't expect Illegals to follow any laws as they believe they are above them. There has even been cases recently where Building Code agents from LA were bribed to OK this.
L.A. building inspectors accepted up to 40 cash bribes and a vacation, informant tells FBI [Updated] - latimes.com
As you point out... a lot of what is happening is already illegal... it is just not being reported or enforced... and just about anything will be enforced if enough people complain...

Part of the problem is apathy... many just don't want to get involved... for what ever reason.

Unless people are willing to stand and be counted is there any wonder why these situations exist?
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Old 03-04-2012, 12:07 AM
 
17 posts, read 31,635 times
Reputation: 17

China factory workers living quarters - YouTube
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Old 03-04-2012, 01:10 AM
 
Location: Los Angeles, Ca
2,883 posts, read 5,892,164 times
Reputation: 2762
I don't think it's just the sunny weather, beaches, things to do.

That was true 30 years ago! The funny thing with housing, mortgages are what, 5%? Interest rates use to be 12-18% in the early 80's, yet people could still afford a home with a 20% down payment, and home payments of 1/3 of their income.

Was anyone spending more than 50% of their earnings on housing in the early 80's? Probably not.

I think people are missing this stealth inflation.

Have you noticed that dimes and nickels are practically worthless now. In the old days when rent was $250 or $300, dimes could still be used in parking meters, a bag of groceries wasn't a fortune. Relative wages were much higher.

The problem with housing in california, it got maxed out in the 70's or 80's. Then it's been inflation + decline in schools (pushing up values in good districts) + some people pushing up prices from the rest of the country (familes from midwest or east) + new investor, speculative breed. How many million dollar spec houses were being created 30 years ago in middle class neighborhoods?

I think the official inflation rate has been underreported for so long, its a shock from even 10 or 15 years ago. Groceries have easily doubled or tripled since homes were reasonably priced (like $250 k 15 years ago).
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Old 03-04-2012, 01:46 AM
 
355 posts, read 1,230,793 times
Reputation: 277
Quote:
Originally Posted by Ultrarunner View Post
Here is the quote I was responding to...



The poster sajae90 clearly said only a small few makes a pretty penny in California...

As mentioned... Google has more than one location and there are a number of newly minted California millionaires from just one firm...
NO, that is NOT what I meant. I was speaking of LA, California. I was responding to the original OP question of why rent was so high in LA and the large amount of people who make low income.
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Old 03-04-2012, 01:50 AM
 
Location: Los Angeles, CA
215 posts, read 491,047 times
Reputation: 241
I have read a lot of true things and some not-so-true things in this thread, but at the end of the day one thing is true: someone is willing to pay these prices. I am guilty, I moved here a year ago and I am completely willing to pay obnoxious prices to live here. If you live here and pay these prices you are also part of the problem. If I am a business owner my only goal is to make a profit, so I am an idiot if I don't charge the highest price that a mass amount of people are willing to pay. In the current economic client people are still packing there things up and moving to LA, I know because I am one of them.
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Old 03-04-2012, 02:01 AM
 
355 posts, read 1,230,793 times
Reputation: 277
Quote:
Originally Posted by Ultrarunner View Post
I'm having a difficult time following the logic...

A lot of what is driving up pricing is the dollar's free fall...

That 25 cent candy bar is now pushing $2...

Of course not everything costs more... electronics continue to offer more for less...

Getting rid of the middle class would be a dumb move... and as this thread has pointed out... rich are calculating... so why would the collective "They" do something against their own self interest?

Individuals can choose to opt out on many levels...

I've never bought into having a cell phone, cable TV, a flat screen... new cars etc...

Kids I know pay over a $1000 a year for a smart phone... many pay more than that for cable...

When I managed low income housing... without fail... there was not a unit without cable... back in the day... before cell phones... some units would have 3 or 4 individual telephone numbers...

People can spend their money how they want... for me... I choose to prioritize and owning a home was at the top of my list because I wanted something to show for my housing dollars...
I don't understand; you can't follow the logic of what? That IS the current plan; to get rid of the middle-class. I didn't say that EVERYTHING cost more, but I was implying that the cost of basic needs are rising, which is a fact, I'm not talking cell phones or other electronics or candy bars; i'm talking having a roof over your head, healthy food (so you can see past the age of 50), medical/health care and insurance, car insurance, utility bills, medication, perscription glasses, etc.....you know....STUFF YOU CAN'T LIVE WITHOUT! I am not speaking of a cellphone, cable or a candy bar.......lol

"Getting rid of the middle class would be a dumb move... and as this thread has pointed out... rich are calculating... so why would the collective "They" do something against their own self interest?"

Actually, it wouldn't be a dumb move if you are rich and want to get richer. In order for the rich (millionaires/billionaires) to get more rich, people have to get more poor to balance things out. They are not thinking for the long-term...like us regular folks. They are thinking short-term gain.

AND, it is not hard to target the middle-class working family when you are raising the prices of property/state taxes every year, despite the fact that most people are experiencing a decrease or total loss of salary. Come on now! Inflation on EVERYTHING is still occuring despite the increase of foreclosures, loan/credit debts and unemployment rates. If that is not trying to wipe out the middle-class, I don't what is
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Old 03-04-2012, 02:06 AM
 
355 posts, read 1,230,793 times
Reputation: 277
Quote:
Originally Posted by hockfan86 View Post
I have read a lot of true things and some not-so-true things in this thread, but at the end of the day one thing is true: someone is willing to pay these prices. I am guilty, I moved here a year ago and I am completely willing to pay obnoxious prices to live here. If you live here and pay these prices you are also part of the problem. If I am a business owner my only goal is to make a profit, so I am an idiot if I don't charge the highest price that a mass amount of people are willing to pay. In the current economic client people are still packing there things up and moving to LA, I know because I am one of them.
You are SO right hockfan....people are wired to SPEND, period. We are compulsive buyers and feed into the hype. About 5 years ago, I almost fed into the hype and wanted to hop on the LA or New York bandwagon, but then I thought about. I think people need to ask themselves if they can still acheive their goals without moving to these over-priced places. I agree that most business owners do mark up the prices if they know there is a high demand to live there; but you also have to think like this; how long are people going to stay? People are moving out of LA in HERDS, and not just the native locals but the transplants as well, once they see it is just too expensive.
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Old 03-04-2012, 02:10 AM
 
355 posts, read 1,230,793 times
Reputation: 277
Quote:
Originally Posted by hockfan86 View Post
Technology, I am a developer in LA and after I got hired at my last job I took my resume offline but I'm still getting calls every other day with opportunities. Accounting is also pretty recession proof, a lot of my friends have moved out here and gotten jobs as staff accountants pretty easily.
Really? I did hear about accounting being a good field to get into. I thought about taking a computer forensics examiner class, however, I don't know how well I will do in that field if I were to permanently move to LA. Right now, I am a writer and graphic designer, but I want to do something in computers too.
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