$154,120: Minimum income needed to afford median-priced OC SFR (lease, HOA fees)

[expatCA]

Originally Posted by Electrician4you

People today don't want to do the move up over time. They want the "I have arrived " house and car asap.
I lived in my last house 18 years saving to get a down for the new house.

This is one of the major problems today.

[Gaylord_Focker]

Originally Posted by man4857

It's pretty simple.

You:
(1) Build more houses,
(2) Reduce demand, or
(3) Both

To do (1) you need to:
Find a reasonably desirable plot of land and/or
Build higher density buildings

Doing this takes time. Zoning regulations, neighborhood opposition, lawsuits, etc.. from various interest groups will oppose new development. ("NIMBY"). Practically every investor will oppose new development so that their existing investments keeps going up in value.

To do (2) you need to:
Enact laws that controls the way people buy homes and/or
Make OC less desirable (enact the crappiest public policies possible that drives people away)

You can limit investing, ban certain investments, tax investments, etc.. to discourage investors from buying homes to rent out and not live in. Or just straight up trash the public education system so that everyone hates it and wants to leave, or something like that. Existing neighbors will oppose new developments sometimes because of attempting to preserve the status quo/culture. Part of the whole NIMBY thing but different flavor.


That's what free market capitalism does for ya , creates headaches like this when you make something desirable.

You would think the COL would drive people away.

[Electrician4you]

Originally Posted by Gaylord_Focker

You would think the COL would drive people away.

You would think. People are willing to sacrifice to live there. I had people with 80-120k and higher income who were applying. I thought last year was nuts. If i relist a property it's going to be even more crazy

[HB2HSV]

Originally Posted by Electrician4you

You would think. People are willing to sacrifice to live there. I had people with 80-120k and higher income who were applying. I thought last year was nuts. If i relist a property it's going to be even more crazy

I had a couple that makes over $150K combined, plus they put up a years worth of rent up front to rent my house.

[Gaylord_Focker]

Originally Posted by HB2HSV

I had a couple that makes over $150K combined, plus they put up a years worth of rent up front to rent my house.

Nice.

[man4857]

Originally Posted by HB2HSV

Perhaps you DON'T buy that $800K house with your $100K income but you buy that $500K condo and live there for a few years, save your money in the meantime, then sell it for $800K in the next upswing so you can buy that $1M SFR. Maybe by this time your salary has increased, or you have met someone who also earn a good income, and you can combine your resources for your "upgrade".

That's how people in the "good old days" do it. I had "friends" who told me that they would not live in this $hitty neighborhood even if I pay them only to have them jealous with envy when I sold my fixer upper and bought a nice house in a very desirable neighborhood.

Those who are not "determined" will always have excuses why they can not afford to buy a place of their own. Sell that $50K Lexus and don't spend more than $50 on a date. You'll find a way.

Does this rule also apply to other things too? Or somehow it just magically applies only to real estate?

Maybe I should shoot for owning a Ferrari on my $50k income and find a way to get there eventually?
I mean just listen to yourself talk for a second. The absurdity is pretty amazing. How high of a price will make you stop? 1M? 1.25M? 1.5M? 10M? ...

Maybe your philosophy in life is different than most new buyers. Maybe you live to just work and pay bills. Others work to live it up by not paying bills unnecessarily.

[man4857]

Originally Posted by Gaylord_Focker

You would think the COL would drive people away.

Public policy is not a direct causation of COL though it's a factor. Don't mistake that. There's many other factors that goes into COL.

[Electrician4you]

Originally Posted by HB2HSV

I had a couple that makes over $150K combined, plus they put up a years worth of rent up front to rent my house.

Be careful with accepting that kind of amount of money up front in California.

[HB2HSV]

Originally Posted by man4857

Does this rule also apply to other things too? Or somehow it just magically applies only to real estate?

Maybe I should shoot for owning a Ferrari on my $50k income and find a way to get there eventually?
I mean just listen to yourself talk for a second. The absurdity is pretty amazing. How high of a price will make you stop? 1M? 1.25M? 1.5M? 10M? ...

Maybe your philosophy in life is different than most new buyers. Maybe you live to just work and pay bills. Others work to live it up by not paying bills unnecessarily.

. I think my approach is consistent with SERIOUS home buyers today.

If you're only making $50K and living in OC, I doubt you can afford anything but a beater car. You can DREAM about a Ferrari but your energy are better utilized on something achievable, like save your money, work hard, and plan seriously for your future.

Don't spend money you don't have trying to impress some girls. You'd be more impressive if you are careful with your money and plan for your future, to the right girl and to her parents.

How is your credit score? I'd imagine it's pretty low if you are living it up and NOT paying your bills

[HB2HSV]

Originally Posted by Electrician4you

Be careful with accepting that kind of amount of money up front in California.

I use a property management firm. They put money into an account and draw from there monthly. I am legally protected.