Are long time residents being priced out of Orange County yet? (Santa Ana: transplants, apartment)
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I'm priced out by choice. I'm unwilling to spend 675,000 for 1100 sq ft stucco box.
Wait, this is a little surprising. Don't you own at least one rental property? I thought for sure you are an Orange County homeowner. BTW, congrats on your $500 citydata win. Woohoo. Nice Christmas present.
Okay, back to the question--yes, a colleague of mine left Orange County to rent a duplex in the high desert where rent is more affordable. Fast forward about 3 years and she and I are trying to figure out how she can come back to civilization to be around friends, job opportunities, cooler weather, etc., but it's just not working. Well, this is partly her fault, but still, it's about three times more to rent here than in the desert.
I was looking to move to Texas where real estate is much more reasonible than what we have here. Due to family circumstances, it looks like I'll be in OC for the foreseeable future. I have lived here for the past 35 years or so. I had a great time but feel as though I have fallen out of love with living here. For one, the cost of real estate here is absurd. Then you add in the traffic congestion, crowds at the beach to where it's not worth putting up with, high price of gas we pay in CA compared to all other states even at an all time low cost of oil, I'm not really sure if the cost is worth it anymore. I make well over six figures and it's hard for me to buy a nice house where my property tax and mortgage does not take up more than 50% of my take home pay thus leaving me no room to increase my savings account.
It's so bad that I'm actually hoping wee elect some idiot into office that would messed up our economy thus causing another housing crash so I can get something for a reasonable price.
Wait, this is a little surprising. Don't you own at least one rental property? I thought for sure you are an Orange County homeowner. BTW, congrats on your $500 citydata win. Woohoo. Nice Christmas present.
Okay, back to the question--yes, a colleague of mine left Orange County to rent a duplex in the high desert where rent is more affordable. Fast forward about 3 years and she and I are trying to figure out how she can come back to civilization to be around friends, job opportunities, cooler weather, etc., but it's just not working. Well, this is partly her fault, but still, it's about three times more to rent here than in the desert.
I'm not sure why you're surprised I'm unwilling to overspend. Just because we live and own property here doesn't mean I'm the buy at any price cause realty only goes up mindset buyer. I'm not just gonna buy something to say I bought something. As a famous man living in Alabama once said I'm not a smart man, but I'm sure as hell not going to buy some 1100 sq ft crapshack for 650k that needs 60k in remodel work. And if you buy a investment property for 650 and gave to dump 50-60k in it how much do you have to charge to make ends meet. Lol no thank you.
To me it's not worth it. Not at these prices. But anyone willing to be my guest. But to answer your question we have a few rentals in OC. I live in another house in OC. I was looking for another house to move to as a primary residence and make my current one another rental. I wasn't looking for investment property. As for the $500 winner he he he I actually went to Costco with my wife and bought $500 worth of dog and cat food treats bones cookies beds and donated to a couple of local shelters. I'm pretty sure they appreciated it way I saw it I got the money for free. I did something good with it
Last edited by Electrician4you; 01-04-2016 at 10:09 PM..
I'm not sure why you're surprised I'm unwilling to overspend. Just because we live and own property here doesn't mean I'm the buy at any price cause realty only goes up mindset buyer. I'm not just gonna buy something to say I bought something. As a famous man living in Alabama once said I'm not a smart man, but I'm sure as hell not going to buy some 1100 sq ft crapshack for 650k that needs 60k in remodel work. And if you buy a investment property for 650 and gave to dump 50-60k in it how much do you have to charge to make ends meet. Lol no thank you.
To me it's not worth it. Not at these prices. But anyone willing to be my guest. But to answer your question we have a few rentals in OC. I live in another house in OC. I was looking for another house to move to as a primary residence and make my current one another rental. I wasn't looking for investment property. As for the $500 winner he he he I actually went to Costco with my wife and bought $500 worth of dog and cat food treats bones cookies beds and donated to a couple of local shelters. I'm pretty sure they appreciated it way I saw it I got the money for free. I did something good with it
Ok, I understand now . I wouldn't buy an overpriced rundown shack either just because everyone else is and because I want to have a place of my own. I count my blessings everyday, though, to have been able to buy the house I'm in now.
Back on topic, well sorta. I read that Portland, OR has become so popular and the housing boom is so bad that the hipsters who moved there to create the city's new image are being priced out and forced to move. From what I read, it sounds much worse there than here.
You may not be able to buy here, but as pricey as it is here, there are rental options.
Ok, I understand now . I wouldn't buy an overpriced rundown shack either just because everyone else is and because I want to have a place of my own. I count my blessings everyday, though, to have been able to buy the house I'm in now.
Back on topic, well sorta. I read that Portland, OR has become so popular and the housing boom is so bad that the hipsters who moved there to create the city's new image are being priced out and forced to move. From what I read, it sounds much worse there than here.
You may not be able to buy here, but as pricey as it is here, there are rental options.
Prices are definitely out to lunch IMO. Believe me like you I'm very thankful we bought when we did. I thank god every day I had a good job, steady work and we made (mostly) right financial decisions. There were a few times when the WTH was I thinking doing this came into play. But hey live and learn.
I look at these houses for sale around here and holy god it's a 1965 1100sq ft stucco square on a postage stamp lot that hasn't been remodeled since Kennedy era and people want stupid money for it. Then you still need to dump 60k in it. After paying 600k. No thanks. I don't blame people for wanting to buy a house. But at these prices?
I watched a buddy make a offer on a house for 675 in Tustin. I went to look at it with him. The house literally needs about 100,000 in repairs minimum. It's a total gut and redo. Concrete work, interior, kitchen, yard, pool redo. Literally everything. And it's a great "investment " property. He wants me to consult on the build because he wants to be a builder owner. No biggie I'll help him for cheap, get it figured out but he's gonna be into this place for about 800,000 plus by the time he's done. That's just stupid money. Oh and he was outbid by 20k.
I guess I could buy go in huge debt but I'm not gonna do that to myself or my family. My debt is minuscule. I'm not gonna strap 600,000 dollars of debt to my back.
Back on topic, well sorta. I read that Portland, OR has become so popular and the housing boom is so bad that the hipsters who moved there to create the city's new image are being priced out and forced to move. From what I read, it sounds much worse there than here.
Not even close. In Portland, it's more the long time residents, particularly minorities, that are being pushed out of their neighborhoods by hipsters, and/or the hipsters coming in and ruining what were once authentic neighborhoods with their faux hipsterness.
In Denver, it's the poor natives being "forced out", with some even suggesting that we put a "cap" on people moving here, or giving the natives discounts on rent/home prices. Yes, there are people that are that stupid.
I don't think the elevated prices in OC is necessarily a "bad" thing. The market is dictating the rules of engagement, which is the way it should be. If people can't afford to live there, they may not belong there anyway. There's nothing tragic about it.
If there's a will, there's a way. Or, there's Santa Ana.
I don't think the elevated prices in OC is necessarily a "bad" thing. The market is dictating the rules of engagement, which is the way it should be. If people can't afford to live there, they may not belong there anyway. There's nothing tragic about it.
If there's a will, there's a way. Or, there's Santa Ana.
This is the reality for new buyers. They can either afford it or they can't. Long time residents are in a different situation as they paid far less. Though "belong" might not be the best term, the reality is that people are being priced out as people who have the money are buying. That is life. The US has the 3rd largest population in the world, so it has a lot of people here (and coming) that can afford it and a whole lot more who can't.
The idea of Santa Ana is not a bad one as eventually it would end up like the other cities full of affluent people and pricing the less so out. This has happened in neighborhoods in OC that were not a place you would want to live years ago and now ...... the value of OC property has changed that. If someone can buy in a less expensive/desirable area and is young it can pay off in the end. IF not so young .... well if you can't afford it, don;t buy it. Live as best you can or find a place where you can afford it.Kinda like can you afford a VW or a Mercedes? No one is entitled to either one, you just do the best you can.
Not even close. In Portland, it's more the long time residents, particularly minorities, that are being pushed out of their neighborhoods by hipsters, and/or the hipsters coming in and ruining what were once authentic neighborhoods with their faux hipsterness.
In Denver, it's the poor natives being "forced out", with some even suggesting that we put a "cap" on people moving here, or giving the natives discounts on rent/home prices. Yes, there are people that are that stupid.
I don't think the elevated prices in OC is necessarily a "bad" thing. The market is dictating the rules of engagement, which is the way it should be. If people can't afford to live there, they may not belong there anyway. There's nothing tragic about it.
If there's a will, there's a way. Or, there's Santa Ana.
While high house prices may not be a bad thing (IMO that's debatable) , I guarantee you people are stretching to buy. And that's a bad thing. I have lived in OC long enough that I have seen this market go up and down a few times.
Truthfully high house prices are bad. They tie up way too much money in shelter. Money that could be used to invest or save, buy merchandise, go on vacations, school. The reason (well there are a few reasons) you have these prices is because the rates are low. People are willing to borrow more because money is "cheap".
I choose not to borrow that much to buy because to me right now it's not worth buying. I gain nothing by buying now. In fact all I'm doing is adding debt and more risk. Right now I have a tiny amount of debt and really no risk
Last edited by Electrician4you; 01-05-2016 at 09:00 AM..
While high house prices may not be a bad thing (IMO that's debatable) , I guarantee you people are stretching to buy. And that's a bad thing. I have lived in OC long enough that I have seen this market go up and down a few times.
Truthfully high house prices are bad. They tie up way too much money in shelter. Money that could be used to invest or save, buy merchandise, go on vacations, school. The reason (well there are a few reasons) you have these prices is because the rates are low. People are willing to borrow more because money is "cheap".
I choose not to borrow that much to buy because to me right now it's not worth buying. I gain nothing by buying now. In fact all I'm doing is adding debt and more risk. Right now I have a tiny amount of debt and really no risk
This is a good chunk of the reason I left Southern California entirely in the first place. There are people that will kill themselves to afford the American Dream in So Cal. They will commute 90 minutes, and/or buy the most home they can get approved for.
IMO, it's not worth it, and the piece of mind of not participating in it is worth it.
While high house prices may not be a bad thing (IMO that's debatable) , I guarantee you people are stretching to buy. And that's a bad thing. I have lived in OC long enough that I have seen this market go up and down a few times.
Truthfully high house prices are bad. They tie up way too much money in shelter. Money that could be used to invest or save, buy merchandise, go on vacations, school. The reason (well there are a few reasons) you have these prices is because the rates are low. People are willing to borrow more because money is "cheap".
I choose not to borrow that much to buy because to me right now it's not worth buying. I gain nothing by buying now. In fact all I'm doing is adding debt and more risk. Right now I have a tiny amount of debt and really no risk
While prices go up and down the end result is up. That will not change as long as people want to live in SoCal and have money. This is not a SoCal/CA thing as it happens everywhere where people think/want they need to live. As to the prices being bad, you can make more money in equity now than in other investments. Once the interests rates rise, that will change, but I suspect with minimal impact on housing prices other than a slowing of the rise.
I look at a 3/2 house in SD that sold new for $22,000 in the early 70's, and $48,000 in the late 70's and by 2008 was worth about $500,000 and in 2012 dropped to about $300,000 and now is back up to about $450,000 and rising. Prices will always rise over time. The problem is when they drop it is usually related to the economy and people then have less money or it is harder to borrow and they can't take advantage of it, unless they started saving way ahead and most don't, they just spend and spend and ... well spend on useless junk to feel good.
I have no debt and own my home with no mortgage. Took planning and self control.
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way I saw it I got the money for free. I did something good with it
. I wouldn't buy an overpriced rundown shack either just because everyone else is and because I want to have a place of my own. I count my blessings everyday, though, to have been able to buy the house I'm in now. 
