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Old 06-08-2012, 12:15 PM
 
Location: Los Awesome, CA
8,513 posts, read 5,209,809 times
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Most buyers who didn’t purchase long time ago usually have good paying jobs that can support expensive houses. The best advice I can give you is purchase only what you can afford and then move up once you have enough equity.
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Old 06-10-2012, 04:18 AM
 
Location: In bed with Madonna
475 posts, read 416,244 times
Reputation: 408
We live in a 1.4 million house in the Hollywood Hills that my father bought. He is making payment montly and its a LOT but he has a good job. But many of my friends want to buy one but they just cant cuz its way too much money for the down payment. so i completely understand you.
Can you buy a house a little bit far from LA ? im sure thats gonna be cheaper.
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Old 06-10-2012, 11:03 AM
 
Location: So Ca
17,532 posts, read 16,353,436 times
Reputation: 15342
Quote:
Originally Posted by TinkerBelle_81 View Post
Are home prices starting to go up or should i wait another year?
Prices probably aren't goint to go up for several years. OTOH, there are fewer homes for sale and it looks as if the bidding wars are back. Not sure it has driven prices down, though; you probably just have to look harder. Shortage of homes for sale creates fierce competition - latimes.com

Quote:
I'm even considering moving to Vegas so i can have a nice, new house and have a life.
Nothing wrong with that. Frankly, real estate here has been out of proportion to salaries since the 1970s. Most people do (did) scrimp and
save just to buy a starter home. Few people can afford to live in their desired area when buying their first home....I would imagine that's true anywhere.

Last edited by CA4Now; 06-10-2012 at 12:30 PM..
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Old 06-10-2012, 11:34 AM
 
Location: Bella Vista, Ark
74,931 posts, read 87,342,323 times
Reputation: 45486
Quote:
Originally Posted by TinkerBelle_81 View Post
I'm a renter living in the Cal State area of Long Beach and am wanting to buy a home for some time now. Problem is, homes south of la/north OC are so ridiculously priced even now that home prices are supposedly low.
My husband and I make $120k/yr before taxes. We can only afford to put around 70k downpayment. We will be using a VA loan. I spoke with a loan officer who did computations. For a home under $400k, monthly payments would approximately be $2200 or less (inculding property tax and insurance). For our average monthly net income of at least $7400 monthly, I still think that is too much for people who want to travel and buy things they want. We are planning to start a family and that would mean more expenses.

So my question to middle class people in la/oc, how do you do it? Be poor just to have a roof over your heads?
Are home prices starting to go up or should i wait another year?
I'm even considering moving to Vegas so i can have a nice, new house and have a life.
Many of them started out in less expensive areas and made a killing during the peak, they purchased with the preceeds from the sale of the old property. Of course many are house poor, or they have lost their homes. I agree, even with a large down and the low interest rates it seems impossible to believe how people afford to own in some states or some sections of some states.

Nita
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Old 06-10-2012, 01:08 PM
 
Location: Whittier, CA
494 posts, read 1,660,894 times
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In my opinion prices are going to go down 20-30% more in LA and OC area but that may take 5-10 years more, things are not coming down fast because of all the brakes the government is putting on the market and the existence of ultra cheap financing via the FHA. Most of the loans being made now are FHA which is a huge red flag, as buyers would not opt for more expensive FHA loans IF their financial situation was strong. An FHA option by it's very nature gives a cue that the buyers can't really afford the home. All this is going to end very badly with more bailouts.

Real income is flat or declining and does not support current price levels and barely supports a price point 25% lower. In addition today's job market is highly volatile unlike 20 years ago which is terrible news for housing.

Don't pay attention to short term spikes like what is happening right now, long term fundamentals are all that matter and in terms of long term housing is a VERY bad bet.

Of course, this applies to the Southern California market, each market is very different and there are markets elsewhere in the nation that are solid.

This is just my $.02
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Old 06-10-2012, 01:41 PM
 
1,231 posts, read 2,619,382 times
Reputation: 1491
Quote:
Originally Posted by PureHapa View Post
Market is still coming down - don't pay attention to the recent low inventories - this is banks putting a hold on lots of foreclosures. They will need to open the foreclosure spigot sooner or later, in dribs and drabs. They need to unload millions of distressed homes in the coming years, and prices will come down, down, down. Read DrHousingBubble and do Google searches for distressed inventory and shadow inventory.

For now, rent and wait. Buying now you will be immediately underwater.
Very True.
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