Considering a move to Cali - Can I afford it?

[scottmandue]

Downtown lofts,

Bill Cooper

LA city lofts

Heck, just do a yahoo search on "Los Angeles lofts" and you will get a whole page of websites to check out.

James, you may want to note that some people posting here don't live in California.

[vash]

disagree with most of the post above. LIVE NEAR A BART STATION! (if you come back to the bay area) most companies give some sort of incentive to take bart. my friend's place pays for 50% of bart tix. my company almost gives them to me. if you are talking 200k range, you have to be addicted to something stupid to not be able to live here. i can live here, and i also own a house. among my friends, i have to be the lowest paid. if i can do it, anyone can. i commute...FAR! i leave my house at 5 tho. it takes me 35 minutes to get to work, upwards of 2 hours to get home. i bought sat radio, company pays for the vehicle and the gas....i dont complain too much. as far has renting until the bubble burst so you can get in at entry level...no way. you will just end up buying in at a higher level. i say strike when you can. get in ASAP. some people have sold homes to "wait it out" and rent. these folks have lost money.

get back over here, james. the pcar community is cool here.

[the]

Originally posted by mjshira
I have no idea what people make there.

If you are questioning whether you can afford to live in California making $250K per year, your statement above is obvious.

[Howard Agency]

Originally posted by scottmandue
What he said... if I were moving here knowing what I know now I would find a job THEN look for housing near the job.

Yup! I like our area because of the good weather, air, beach and mountain access, and 'relatively' uncrowded freeways. And don't forget Mulholland.

If you could find a position around here with that anticipated income, you could afford Stuff like this.

Or spend a bit more for This

[nostatic]

the bottom line is that when you say you want to live in "LA" that really doesn't mean anything. LA is HUGE, and most people consider OC and part of Riverside/SB counties to be part of "LA".

This place is totally job dependent. But there are no "secret areas" left to buy in. You want to live close to the beach, you pay (btw, I don't consider where I live a "beach city"). If you want to live in a nice neighborhood with decent schools, you pay. There is no free lunch here, and in fact there are only expensive lunches.

The key is to find a job, then see where it is located and what your options are. A few miles here or there can make 30-60 mintues difference in your commute. Some people don't seem to mind commuting, and live inland to get a bigger/nicer house. No way I could do that...but to each their own.

And seriously...people live on a hell of a lot less than $200K/year (I know I do). But I also am renting, and won't buy until there is a significant market correction or I get a serious raise and/or get the rest of the equity out of my ex-house. In the meantime, I burn my money on my track car. Hell, I could be dead by next year...

[mjshira]

Originally posted by Howard Agency
Yup! I like our area because of the good weather, air, beach and mountain access, and 'relatively' uncrowded freeways. And don't forget Mulholland.

If you could find a position around here with that anticipated income, you could afford Stuff like this.

Or spend a bit more for This

thanks, the first link was for NC?

[Howard Agency]

??? Let me try it again. But NC sure is nice

http://realestate.yahoo.com/California/Camarillo/Homes_for_sale/result.html;_ylt=AseI1pAhBsZzmk0OEx6ySqrnMrQs?cc=r ealestate&p=camarillo,%20ca&priceHigh=600000&priceLow=500000&nodeId=750007014&radius=&bedrooms=&bathrooms=&type=classified&sortBy=price+1

[mjshira]

Originally posted by nostatic
the bottom line is that when you say you want to live in "LA" that really doesn't mean anything. LA is HUGE, and most people consider OC and part of Riverside/SB counties to be part of "LA".

This place is totally job dependent. But there are no "secret areas" left to buy in. You want to live close to the beach, you pay (btw, I don't consider where I live a "beach city"). If you want to live in a nice neighborhood with decent schools, you pay. There is no free lunch here, and in fact there are only expensive lunches.

The key is to find a job, then see where it is located and what your options are. A few miles here or there can make 30-60 mintues difference in your commute. Some people don't seem to mind commuting, and live inland to get a bigger/nicer house. No way I could do that...but to each their own.

And seriously...people live on a hell of a lot less than $200K/year (I know I do). But I also am renting, and won't buy until there is a significant market correction or I get a serious raise and/or get the rest of the equity out of my ex-house. In the meantime, I burn my money on my track car. Hell, I could be dead by next year...

I hear you dude, loud and clear. And I agree. My deal is that I don't have the little gene that makes a person want or need to have just that much more than the next person. I'd rather just be able to enjoy the car culture more, be able to have a bit better weather and also introduce my wife to the state I grew up in. I've lived in Texas, Oregon, Washington, Cali, NY, NC, Europe and now southern Indiana, which is really KT.

I always find a way to enjoy 'where I am at'. But everytime I come out to visit Cali and hang out with the folks there I am reminded in postive and negative ways why I miss it there. yeah, when Hayden, Tyson and me got stuck in traffic for about an hour going to Treffen, I knew that sux'd. But then, when we got to the back roads and had not one other car around for a good hour of driving I forgot all about the traffic

[mjshira]

Originally posted by Howard Agency
??? Let me try it again. But NC sure is nice

http://realestate.yahoo.com/California/Camarillo/Homes_for_sale/result.html;_ylt=AseI1pAhBsZzmk0OEx6ySqrnMrQs?cc=r ealestate&p=camarillo,%20ca&priceHigh=600000&priceLow=500000&nodeId=750007014&radius=&bedrooms=&bathrooms=&type=classified&sortBy=price+1

thanks! I think we could make it work. I may have to borrow 90% of the home's value to close the deal but it seems maybe that is more normal than I realized. We've only been out of school about 7 years and we just got married and blew the savings on ring, honeymoon, house, appliances, furniture (recall, NYC apt don't hold much..)

[Chocaholic]

What are you looking for? Why not look south? Heck, I live in a 3000 sq/ft house on a large lake. My own two slip dock, 5 car garage, 1 acre lot (we don't measure lots in square feet down here....only houses). It's worth about $600k today....and there are plenty to be had between $500 and $750k.

Of course, we don't have silly traffic, choking pollution, earthquakes or fires. You'll have to ante up and live in CA for those attractions.

[Porsche-O-Phile]

But we also don't have guys whose crowning achievement in life is snorting an entire tin of Skoal up through an empty Budweiser bottle.

[scottmandue]

South? I hear Mexico has wonderful opportunities!

[the]

Originally posted by Porsche-O-Phile
But we also don't have guys whose crowning achievement in life is snorting an entire tin of Skoal up through an empty Budweiser bottle.

yeah, that's not skoal residue in all those burnt pieces of tinfoil you find in the LBC

[snowman]

Rent for $1600 per month vs owning for say $4000 per month. ON an income of $250k the deduction for the interest on a mortage that requires a payment of $4000 per month will be almost $3500 per month for the first 1/2 of the loan period. In that tax bracket, the marginal tax rate is almost 90%. So you will get back 90% of $3500 or $3150. THat makes your monthly payment $850 vs $1600 for renting. Also renting does not have appreciation. Only a fool rents in this kind of market with that income.

Renters seem to be a bunch of never can make it types to me. They will never own anything. ANd typically never do.

No one with a decent income can afford to rent.

Its the taxes stupid.

[nostatic]

interesting numbers. How come they didn't work that way when we were making that much combined and had about that much of a mortgage payment? Only paying $850 a month after taxes? Not quite...

[tabs]

SO CAL is so wonderfull, that everybody moved there. I guess I could say the same thing about the Bay Area as well. There in lies the problem all those extra people make it NOT SO WONDERFULL ANYMORE.

All U Johnny come latelys to CA just don't see it. If you don't have to work, SO CAL is not the place to be, nor is the Bay area. There are still wonderfull places to live in CA, that while more expensive than SO IN offer a beautiful lifestyle. Try the Central Coast or North Coast of CA. I don't understand why anybody would want to be part of a 20M strong Anthill called SO CA if they don't have to be. Living in LV it seems like every 5th car in the hoods have CALI License Plates.

The downside to living in CA is the the NANNY STATE MENTALITY and the corresponding TAX structure...

[tabs]

I will say Wayne has the right idea cash out when the market is high, rent, and buy back in after the downfall.

Other than that Wayne talks alot of smack about CA RE. He just hasn't been around long enough. I have seen 3 Big Booms and 2 Big Busts in CA RE. I have watched Cali RE for over 50 years now. we are on the verge of a BIG BUST in CA RE, back to levels of affordabilty. This is not going to be a quick process but along drawn out death of nearly a decade. When Wayne says that he doesn't think he will ever buy back into the RE market in SO CA, cause it ain't never gona come back is when I would buy.

[mjshira]

Originally posted by snowman
Rent for $1600 per month vs owning for say $4000 per month. ON an income of $250k the deduction for the interest on a mortage that requires a payment of $4000 per month will be almost $3500 per month for the first 1/2 of the loan period. In that tax bracket, the marginal tax rate is almost 90%. So you will get back 90% of $3500 or $3150. THat makes your monthly payment $850 vs $1600 for renting. Also renting does not have appreciation. Only a fool rents in this kind of market with that income.

Renters seem to be a bunch of never can make it types to me. They will never own anything. ANd typically never do.

No one with a decent income can afford to rent.

Its the taxes stupid.

that is info I needed to hear. We have our first home here and have not noticed a big benefit tax wise but this next reporting period will be our first taking full account of the home with respect to filling.

[mjshira]

Originally posted by tabs
SO CAL is so wonderfull, that everybody moved there. I guess I could say the same thing about the Bay Area as well. There in lies the problem all those extra people make it NOT SO WONDERFULL ANYMORE.

All U Johnny come latelys to CA just don't see it. If you don't have to work, SO CAL is not the place to be, nor is the Bay area. There are still wonderfull places to live in CA, that while more expensive than SO IN offer a beautiful lifestyle. Try the Central Coast or North Coast of CA. I don't understand why anybody would want to be part of a 20M strong Anthill called SO CA if they don't have to be. Living in LV it seems like every 5th car in the hoods have CALI License Plates.

The downside to living in CA is the the NANNY STATE MENTALITY and the corresponding TAX structure...

I appreciate your views. I think that the problem is that many people have a negative view of the 'fly over states' as I've heard them called. I'd want to move back for the ability to enjoy the car hobby more and to give my wife the chance to get to know 'where I grew up'. We might not do it, you guys have helped me a lot with ideas and perspectives that I would otherwise not have had - THANKS!

[motion]

I can't believe you guys are recommending that someone pulling down 250K a year shoule rent a place for $1,600 a month. That's big bank that should allow him to live pretty much anywhere he wants. And that's not even factoring in the wife's income. What I can't figure out is why someone making this kind of money with no debt, living in IN, with no idea about CA earning numbers, no idea about CA home prices, has only 50-100K to put down on a home. I'm confused about this picture.