Realities of the 600K and under housing market in San Gabriel Valley

[cyberfx1024]

Originally Posted by SportyandMisty

The only people who voluntarily live in Cleveland are in the Federal Witness Protection Program.

It seems like the whole family that live downstairs and their cousins moved from Cleveland and yes they really did move from Cleveland here to Pasadena. It's a 3 bed room 1 floor house they are in, it was the grandparents, their daughter and son in-law, and their 2 kids. Now the son in law left the grandfather had to get a job so they could afford to stay in Pasadena, because their daughter doesn't work and the grandmother works as Math teacher at PCC. All the while paying $3300 a month to rent a house.

[jm1982]

Originally Posted by cyberfx1024

It seems like the whole family that live downstairs and their cousins moved from Cleveland and yes they really did move from Cleveland here to Pasadena. It's a 3 bed room 1 floor house they are in, it was the grandparents, their daughter and son in-law, and their 2 kids. Now the son in law left the grandfather had to get a job so they could afford to stay in Pasadena, because their daughter doesn't work and the grandmother works as Math teacher at PCC. All the while paying $3300 a month to rent a house.

You could buy multiple properties per month for $3300 worth of mortgages in Cleveland .

Looks like Cleveland tried to rebrand themselves as hipster .

I'm guessing it's not a hipster hotspot yet ?

https://www.planetizen.com/node/67964

[cyberfx1024]

Originally Posted by jm1982

You could buy multiple properties per month for $3300 worth of mortgages in Cleveland .
Looks like Cleveland tried to rebrand themselves as hipster.
I'm guessing it's not a hipster hotspot yet ?
https://www.planetizen.com/node/67964

I have no idea about Cleveland at all because I don't talk to that family unless I have to. But I think it's sad how they moved and now the Grandfather has to go back to work because they can't survive off of his pension and his wife's job at PCC. The rent actually may be more now because the 33 number was from a couple years back so I don't know, but what I do know is that they complain about it all the time.

[jm1982]

Originally Posted by cyberfx1024

I have no idea about Cleveland at all because I don't talk to that family unless I have to. But I think it's sad how they moved and now the Grandfather has to go back to work because they can't survive off of his pension and his wife's job at PCC. The rent actually may be more now because the 33 number was from a couple years back so I don't know, but what I do know is that they complain about it all the time.

Yeah that's one big issue in L.A people working and working just to pay for rent . It's not great spending so much on a mortgage either but at least it's going towards something , paying it down a bit every month .

It doesn't sound like moving to the area was a great decision for them financially at least .

I also think it's sad when older people have to work at an age when they should be enjoying retirement

I used to work with a lady that didn't retire until she was about 80 , but she financially didn't have to work. She had a lot of adult kids and grandkids and seemed to have a pretty active life outside of work . She had the energy of someone much younger .

[SportyandMisty]

Originally Posted by jm1982

Yeah that's one big issue in L.A people working and working just to pay for rent . It's not great spending so much on a mortgage either but at least it's going towards something , paying it down a bit every month.

Housing services are housing services.

[ryanms3030]

Originally Posted by SportyandMisty

Housing services are housing services.

Not really because you are not building equity if you are renting. You can make the same monthly payments for 10 years on a rental and walk away with nothing or make them on a mortgage and sell after 10 years and net $100k. I'll take option B. Real estate as an investment is a gamble like every other investment but the odds are pretty good in LA vs other markets that you're investment will grow

[jm1982]

Originally Posted by ryanms3030

Not really because you are not building equity if you are renting. You can make the same monthly payments for 10 years on a rental and walk away with nothing or make them on a mortgage and sell after 10 years and net $100k. I'll take option B. Real estate as an investment is a gamble like every other investment but the odds are pretty good in LA vs other markets that you're investment will grow

Yeah that's why it's always funny when there are those articles put out by "experts" that say stuff like real estate is just a hedge against inflation .
That could be true on a nationwide level but definitely not what has happened in the la area .

When you combine leverage with appreciation the returns can be very high .

Of course all real estate is local.

[MarciaMarshaMarcia]

Originally Posted by jm1982

In the I.E

Brand new ,good sized homes starting at high 200s.



https://www.pardeehomes.com/region/inland-empire/

Those house are in Beaumont & Lake Elsinore.

[RockyCity]

Originally Posted by zenifying

We've been looking around a bit and have gone to a few open houses. We are looking for a family friendly area (with decent public or proximate to good private schools) at least 2bd, 1 bath with a fenced backyard. It seems like the competition is super steep here. We were looking at a house listed at 599K and it went for 675K. Is this typical? Any thoughts or guidance?

That same house that went for 675K may be worth 875K in 5 years, so it could very well turn out to be a good bargain. If you're planning to stay in the same home for 20-30 years, you might as well pull the trigger now. Of course you can wait a couple of years to see if there is housing correction, but in my opinion its not going to be anything what we saw back about 10 years ago, it will be a more typical modest decline (<10%).