Living in Southern California or just surviving in Southern California (Merced: apartments, leasing)

[southphillyitaliana]

Originally Posted by EscapeCalifornia

$70k is fine for someone in that position. The question is, will you be 30, single, and willing to rent forever?

What exactly is wrong with renting? Don't any of you prospective homeowners understand that even if you "buy" a house you're still actually renting it from the bank, and they can take it away from you when you can't pay for it anymore? You all need to get past this idea that you actually "own" things in this country. Unless you've saved up every penny for your fancy house or your hot wheels, you don't actually own it.

[southphillyitaliana]

Originally Posted by EscapeCalifornia

I'm sure some people are comfortable living in a box in Africa but with barely enough to eat. $350 a week is just existing in LA, but who really wants to just exist?

People who put more emphasis on living without all the conspicuous consumption that LA produces and people constantly buy into.

[southphillyitaliana]

Originally Posted by FLIGHTSIMMER

With the taxes going up and fees are going up, California is in a great depression economicly, it is becoming survival here jobs are leaving, it is going to be miserable to live here unless you have a ton of money.

That's everywhere, even here in Philly. I used to get through every recession with temp work - always. Not now, I can't even get a nibble and I'll be evicted soon because I can't pay my rent. California's not the only place that's dead broke in America, and certainly isn't the only place that's corrupt.

[nowincal11]

People were always told until our generation that owning a home is a high hope for an American and is a great investment and you aren't throwing money away. It isn't a great investment. Check the NY Times calculator and explanation to see that. Most Americans would end up coming out even if they rented for 30 years versus owning a home and didn't have the stress of maintaining the home.

People our age understand they won't be able to buy homes or at least until way later in life. Plenty of people live in my apartment complex + plus my friends here in LA understand that. Frankly, I would rather live in an apartment right now as well.

[nowincal11]

California's vehicle tax went down 50% and sales tax went down by a full point last week.

[southphillyitaliana]

Originally Posted by motoman

Well, actually no. The average person stays in a house 5-7 years, which is about enough time to build up enough equity to cover the real estate agent's commission and your closing costs. For most people, "buying" a home is just a long-term lease, because they are never in it long enough to make the economics work.

But people don't know enough to think through the math. They think, hey, I bought a house for $300,000 and sold it for $350,000 five years later. I made $50,000. No, you didn't. Over that five year period you had a mortgage payment each month, most of which was interest, money you'll never see again. You had property taxes, possibly homeowners association dues, maintenance, and maybe you did a little painting or landscaping. Then when you go to sell it you pay 6% of the sales price in commissions to the real estate agent, plus all of the other closing costs, which in total comes out to about 8% or so of the sales price.

It's a huge cost and you didn't "make" any money on the deal, but people think they have and will argue it to their grave that owning is better than renting.

If the full cost to own is similar to renting, and you plan to stay in the property for 10-15 years or longer, then it's probably economically worth it. But if not, then financially you'd be better off renting.

I'm so happy I have absolutely no desire to own a home unless I hit Powerball and can pay for it in cash. I would never carry a mortgage, and owning is really just renting your house from the bank. No one actually "owns" their home unless it's paid off completely.

[southphillyitaliana]

Originally Posted by sdlife619

I feel the pain of the many people that struggle just to make ends meet in SoCal. I was born and raised in Cali, and personally, I know I could never afford a house, condo, or even rent in a decent neighborhood unless I made well over $50,000 a year. Lifestyle is always of importance to people in Cali, because of the many recreational activities So Cal offers. Hiking, surfing, off roading, huge car culture, boating, just about anthing that has to do with the outdoors, people pay for the equipment to enjoy those activities, which can get expensive depending on which one you like the most. It also depends on what your priorities are as well. Personally, I have no kids, I'm single , not many responsibilities, own a used car, but still struggling to make ends meet. I don't spend my money on random crap (even if I did have money) like many San Diegans do, they spend what they don't have, one of my friends is a perfect example. I see this happening everyday, in San Diego, it's no different than LA, but people here tend to be a little more wealthy, because of all the rich retired people combined with less minorities. OC is by far the worst, materialism is what drives society in the OC.

But keeping up with Joneses is still very prevelant in SD. Housing is just as expensive as LA, if not more depending on location. The job market sucks here in SD when compared to LA's market which happens to pay more and offer much greater diversity of opportunities for careers than San Diego.

I like SD, but the middle class is slowly being eaten away by the high cost of living. People always talk about the rent or mortage, but what about everthing else in between? Health Care, utilities, gas, child care, food, yard work (if ya got a house), HOA fees, cable, internet, etc. Basically all the essentials to life are extremely difficult to afford if you live in SoCal.

If only we can get the cost of homes to come down, all this damn speculation is what got the housing market so "hot", in which led to over inflated homes that people really couldn't afford in the first place. People know that the majority of homes in San Diego, LA, OC, are not worth the asking price. Cities and the state needs to do something to lower prices for newly constructed homes, or else your going to have many residents packing up and leaving the state for good. You don't want stressed out worried employees working for you, you want happy ones, that come to work and have nothing negative going through there mind, only positive. If many Californians were able to afford California, then I think life for everyone would be so much better off, and we wouldn't have very stressed out people on our roads, on the freeways, in society in general. I wonder once the the housing market turns around, will we be in this same situation again? Over inflated homes that cost over $500,000 and up? I really hope not. There should be limits on how high the value of a home can be raised up to. Location should matter somewhat, but shouldn't be the prime focus on the cost of the house itself. Nobody should pay $500,000 for a 1,500 sqf home that's out right robbery and just plain greediness. We need some limits, and common sense when it comes to pricing homes.

Again, it's all what you make of things. I live extremely cheaply now after losing every cent of my $250k during the recession. I used to live in a luxury townhouse, now I live in a dump that I'm going to be evicted from because I don't have a cent to my name. I have lovely lamps, but do I need to keep them on all the time to enjoy them? I have a dishwasher, but if I wash my dishes by hand, I'll save on the water and electric bills. Just today I sold 3/4 of my 30-pc. flatware set because what do I need with all those extra forks and knives that never get used? And why use my gas oven when I own a toaster oven, two electric burners and a Flavor Wave? Ditto with the cable - I shut it off 2 years ago and haven't missed it at all. Ditto with transportation - don't need a car when I have mass transit at my doorstep. The point is there ARE ways to live very comfortably and cheaply and still be very happy. Two years ago I never would have felt this way because I bought into the whole 'American Dream' nonsense of owning as much crap as I could get my hands on. Well, none of it made me happy. Ok, my Mac and my discontinued sofa make me happy, but besides that, going crazy with the cash put me in the bad situation I'm in now, but I've learned my lesson well and it won't happen again.

My plan is to move out to San Diego within the next few years, get a tiny apartment, and just enjoy the great weather and life at the beach. As long as I can make my rent every month, keep the internet on and food in the fridge, I don't need anything else but the Pacific Ocean to make my life worthwhile.

[southphillyitaliana]

Originally Posted by jsaucedo

I am contemplating right now wether or not to move back to Chicago where everything is accessible. You can walk everywhere. Here in SD you have to drive to any destination. I mean of course the weather is a no brainer beautiful but I too work every day so It's difficult to enjoy. Most people would say I am just CRAZY to leave San Diego where people VACATE to go back to Chicago and it's very cold weather. Chicago is an amazing city though. AM I crazy?

I was told mass transit in SD is pretty god. Hope it is, since I won't be driving when I move there!

[Tex?Il?]

Los Angeles and southern California I think is one of the best places to be single. If you don't mind living in a small studio and drive a so-so car, it is one of the best places to enjoy when you have free time and are not working.

I don't go to concerts (expensive) (or movies as they are pricy at the theater) anyways. I do enjoy nightlife, but I only go to lounges/restaurants and only have one drink that night. I have a few really nice articles of clothing/"accessories" for going out. I also like people watching and strolling down pedestrian oriented areas.

If you work full time, and are strategic in how you manage money. And know what you really want, I think LA is one of the most fascinating cities to get to know. Although I live outside Chicago, the hotspots near downtown Chicago are almost if not more expensive than the average decent neighborhood in LA. (I would probably live in the valley). But its worth it to spend a year or two where you can spend the day in Santa Monica or go out to somewhere like Hollywood and Highland. Go to Griffith Park, see Catalina Island.

I am looking to move there next year to live there a year or two. I don't have any majors bills/debts.

However, I think in terms of owning home and raising a family, I would move back to the midwest. I live outside Chicago, but I think it is the most overhyped city in the country for me personally, as I grew up in the suburbs and don't find super-urban areas like New York or Chicago appealing in the least bit. I prefer metro areas that have everything a big city has without having the aesthetic quality of a BIG city.

I would most likely settle down in the Oakland County suburbs of Detroit of Cincinnati proper as those are some of the hidden gems of the midwest.

[mading6]

Originally Posted by southphillyitaliana

I'm so happy I have absolutely no desire to own a home unless I hit Powerball and can pay for it in cash. I would never carry a mortgage, and owning is really just renting your house from the bank. No one actually "owns" their home unless it's paid off completely.

And not only owing money to the bank but every year the painful property tax bill comes in. And most houses in L.A. are expensive (compared to national average) and at 1%. It is very common for someone owning a house in L.A. to pay at least $1,000/month in property taxes. Then calculate insurance, maintenace, etc.