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Old 05-16-2016, 12:24 PM
 
3,437 posts, read 3,285,767 times
Reputation: 2508

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Quote:
Originally Posted by spoonman1 View Post
Just left OC due to the high cost of housing. My wife and I are college educated professionals earning well into six figures. We have a young daughter and decided to build a new home in Arizona rather than buy a shack in OC so I can pay for an aging boomer's retirement.
6 figures and still not enough? if you have the 20%DP it should not be a problem paying your amortization unless you want a mcmansion or a house by the beach
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Old 05-16-2016, 05:14 PM
 
381 posts, read 344,484 times
Reputation: 780
Quote:
Originally Posted by payutenyodagimas View Post
6 figures and still not enough? if you have the 20%DP it should not be a problem paying your amortization unless you want a mcmansion or a house by the beach
I was looking for a "normal" house in Orange or Costa Mesa, which were in the range of $500-600K+ and usually need a lot of work.

Many people my age (30's) are saddled with student debt and childcare expenses (my nanny was ~$1000/mo). The people I know that got into the market all had inheritance or other help to increase their financial position.

I didn't want to be house poor and didn't feel like feeding the system, so we left for a better life (my wife no longer has to work). Apparently an above average income cannot afford someone a median home to start a family. I think that many people are frustrated that their incomes cannot afford a house occupied/sold by folks earning significantly less income due to the dramatic rises in equity.
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Old 05-16-2016, 06:31 PM
 
18,172 posts, read 16,390,729 times
Reputation: 9328
Quote:
Originally Posted by LuvSouthOC View Post
From what I see with Millenial buyers, they care more about the appearance of the so-called upgrades in a property. Shiny cheapee granite and new, but complete junk, Ikeaish cabinets seem to suit them. They seen less concerned about the costs about to clobber them and of course, quality.

Just my observation.

And I have one couple as neighbors. Found out he's a firefighter working monstrous OT hours, she works too, so that explains that.
Yes Granite or Quartz instead of something that works well and costs less, Stainless appliances which cost the most, upgraded and tiled showers with multiple nozzles, massive closets for all the clothes they buy, and the list is endless and all promoted by the manufacturers to the shows we all see. Stupid.
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Old 05-16-2016, 07:39 PM
 
381 posts, read 344,484 times
Reputation: 780
Quote:
Originally Posted by Pay2Win View Post
I have never heard ANYONE say, "I'm not going to buy your house because you earn less money than I do."

That's so ridiculous.
Looks like you missed the point.
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Old 05-16-2016, 08:38 PM
 
823 posts, read 1,784,467 times
Reputation: 453
Quote:
Originally Posted by spoonman1 View Post
I was looking for a "normal" house in Orange or Costa Mesa, which were in the range of $500-600K+ and usually need a lot of work.

Many people my age (30's) are saddled with student debt and childcare expenses (my nanny was ~$1000/mo). The people I know that got into the market all had inheritance or other help to increase their financial position.

I didn't want to be house poor and didn't feel like feeding the system, so we left for a better life (my wife no longer has to work). Apparently an above average income cannot afford someone a median home to start a family. I think that many people are frustrated that their incomes cannot afford a house occupied/sold by folks earning significantly less income due to the dramatic rises in equity.
Don't scare the newcomers, now . My husband and I are similar to your family, except we have 2 kids. Their private schooling is about the cost of your nanny. We were able to buy (3 years ago for half mil) just by shear luck, I guess. Met the right realtor and seller. Nice big, but older home in great area. No major remodeling needed, except for new roof. 20% down, but we still had a lot of savings left.

We didn't have an inheritance nor did we win the lottery. Saved the down ourselves. You could've gotten something here, but glad you found something you like outside of CA. So glad your wife can stay home. I'm still working (from home) and since we're financially helping a family member out, I no longer have the option to quit work. Oh well.

I can't imagine how much real estate has increased. Insane!
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Old 05-17-2016, 07:29 AM
 
Location: So Ca
26,721 posts, read 26,793,862 times
Reputation: 24785
Quote:
Originally Posted by russlancea View Post
We were able to buy (3 years ago for half mil)
Three years ago was the bottom of the market (of this cycle, anyway). Yes, you were lucky!
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Old 05-18-2016, 06:48 AM
 
Location: Southern California
1,166 posts, read 1,634,730 times
Reputation: 2904
Quote:
Originally Posted by NativeOrange View Post
Yep! All 80 million of us are just so delusional!
Get used to the broad generalizations coming from other generations. Some things never change.
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Old 05-18-2016, 06:50 AM
 
Location: So Ca
26,721 posts, read 26,793,862 times
Reputation: 24785
Quote:
Originally Posted by ysr_racer View Post
Why would a millennial want to buy a house when they can live with their parents for free, for ever?
Right. Instructions to my son on how to buy a house in the SF Bay Area
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Old 05-18-2016, 10:40 PM
 
Location: Liberal Coast
4,280 posts, read 6,084,514 times
Reputation: 3924
Quote:
Originally Posted by LuvSouthOC View Post
The article below says starter homes sell fast in OC. But who is buying them? Why do Millennials state that their preference is to wait for the "dream home" and skip a starter home. Are they being realistic?

Are days numbered for the starter home? - The Orange County Register

On the other hand, not mentioned in the Register, but mentioned below, is that Millennials do not seem to have down payments saved. But if this is true, how do they realistically hope to purchase a higher end home in OC as their first home?

Starter homes: Most U.S. millennials lack down payment - San Jose Mercury News
Who wants to pay 500k or more for a starter home? How would that actually be considered a starter home anyway. If they have other options that will allow them to save up enough money for a "dream home" and skip the starter home, what's wrong with that?
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Old 05-19-2016, 05:55 AM
 
Location: Riverside Ca
22,146 posts, read 33,519,030 times
Reputation: 35437
Quote:
Originally Posted by psr13 View Post
Who wants to pay 500k or more for a starter home? How would that actually be considered a starter home anyway. If they have other options that will allow them to save up enough money for a "dream home" and skip the starter home, what's wrong with that?
Nothing, it's just that most can't afford to buy the dream home right off the bat, but that doesn't mean they won't even if they can't really afford it simply to keep up the " I'm more successful than you" appearance
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