House hunting and the tears

[freeflygoddess 0]

Ok so we have been wanting to buy a house, well we are sad to say that there is absolutly no possiable way for a first time home buyer to buy a house in Cali unless you want to pay $3000 a month in house payments. We have been looking and looking and there is nothing under $300,000 in Souther Cali so we are starting to look into moving to Colorado after Derek's surgery and stuff is all over.

I just want to know one thing, from all of you Southern Calis here how in the hell do you make your house payments and still have money to buy food and jump. Todd makes great money but still I can't see spending $3000 a month for a house....

[AndyMan 7]

Have you looked at Condo's?

They have all the advantages of owning a home, like building equity, and ever increasing property values.... But have additional upsides, like no grass to cut, leaves to rake, or snow to shovel. This is great because it means we get to spend out weekends at the DZ instead of cutting grass.

Craichead and I just moved into our first home, a 950 sqr foot 1.5 bedroom, 2 bath condo in downtown chicago.

There's definitely more expensive areas to live in, and if you insist on living there then you have to settle for a smaller place or a bigger payment. There are units in our building that started in the very low 200's. If we went out to the 'burbs, they'd start at $80,000.

I know So-cal is expensive, but I also know that there's cheaper alternatives to owning your own single-family house in the city.

_Am

__

You put the fun in "funnel" - craichead.

[BIGUN 1,105]

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from all of you Southern Calis here how in the hell do you make your house payments

I'm gonna go out on a limb and say, "Balloon Mortgage."

Nobody has time to listen; because they're desperately chasing the need of being heard.

[DrewEckhardt 0]

It's easy: move in before property values skyrocket.

Here in Colorado if I bought now instead of five years ago I'd have spent 90% more (nearly double) for the same property or 130% more for a new one nearby. Or gotten a two-bedroom condo instead of a two-story town home.

Or buy less home. I have a town home not a house. It's much more fun than driving into town or having a $450K mortage.

Or bet on an ARM loan and your ability to convert to a higher interest fixed rate loan or to move to some other property.

Or get an interest only loan and bet on making more money in the future.

Or make "great money." $200K total is very reasonable for a pair of professionals a decade plus into their careers. The lenders will let them spend $4.5K/month on housing nearly all of which is untaxed. That leaves nearly $120K before state and federal taxes after they've each maxed out their 401K.

Or move in with equity from someplace else. If nothing else this eliminates PMI which is about equal to a 1% drop in the financing rate (a 5% loan with PMI is about like a 6% loan without). The best case is coming from someplace with higher property values - you can take $500K in equity from your $700K four bedroom house in California that you owe $200K on and pay cash for a $500K loan in Colorado.

Etc.

[racer42 0]

Send me the $300,000 and I'll buy you about 3 pretty decent homes here( San Antonio) in good neighborhoods. Or one reeeeally big one.

I know it's not S. California, but it's way easier to be poor here

L.A.S.T. #24
Co-Founder Biscuit Brothers Freefly Team
Electric Toaster #3
Co-Founder Team Non Sequitor
Co-Founder Team Happy Sock

[freeflygoddess 0]

yeah we looked at condos but you just can't get around not spending more than $300k when you have three kids. Plus all the condos are all on te beach and way over $500k....but sure would be worth the payment. If we could get away with buying a 1 bed 1 bath condo right on the beach and just using the living room for the kids' room and not inviting anyone over we would do it in a heart beat cause we wouldn't be at the house but to sleep....well cause we be too busy working to make the payment....lol....

No really we have come to the conclusion we are going to have to move and build equity somewhere else or be stuck renting the rest of our lives and that is going up and up too.

We even looked into buy vancant land and rolling a manufactured home onto it and after buying the land average price $99k for 5 acres, plus a home $150k or so and then diging a well putting in a septic bringing electric out a propane tank and all the permits and whatever else we will still be spending over $300k and we would have forever to drive to get to anything....

We looked at Texas, where all of my family is, and my parents just moved back there too and well the homes are pretty inexpensive but he doesn't make the money there. At least in Colorado he is still making good money....

[freeflygoddess 0]

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It's pretty easy: You move in before property values sky rocket.

Well we are way too late for that here....

we found a 4 bed 3 bath home on 35 acres in Yoder,CO for $109k and a sales lady at a track home here in cali said to go for it because she just came from Colorado Springs and everything is booming out there and we might get some money out of it in ten years or sooner....

I just hate moving is all and I really hate the fact that there are only 2 hospitals that do the surgery my son is going through on Thursday and one is Children's in San Diego and the other is Houston's Children's.

[racer42 0]

It's a trade off here. Cost of living, even on the beach is radically lower, but so are wages.

Best of Luck. Hope you find what you are looking for.

L.A.S.T. #24
Co-Founder Biscuit Brothers Freefly Team
Electric Toaster #3
Co-Founder Team Non Sequitor
Co-Founder Team Happy Sock

[wmw999 2,168]

Well, if he's going to need follow-on surgeries, that might be worth considering. Because Colorado isn't particularly close to either San Diego or Houston, although flights aren't expensive.

You have to make a list of what's important in where you live. Then prioritize it, and then begin looking at where to live based on that.

I know Houston isn't nearly as neat as San Diego (live here, been there), but housing costs are low enough that it takes less salary to maintain an equivalent standard of living. Really. Year-round skydiving, too.

Wendy W.

There is nothing more dangerous than breaking a basic safety rule and getting away with it. It removes fear of the consequences and builds false confidence. (tbrown)

[freeflygoddess 0]

We are considering Houston too...Mostly because my parents are now in Ft.Worth 6hours and then my Grandfather and my aunts and uncles and some of my cousins are in the Freeport/Lake Jackson area (on the gulf about an hour south of Houston). He makes $32/hr here regular time and we called the union out there and it would be $18/hr in Texas...ouch...but we may have to depending on how things go on Thursday. Of course we can always win the lottery and then we are off to be hermits in Montana and laying out our own run way and buy a Porter and taking turns...lol...

[flyhi 24]

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a 950 sqr foot 1.5 bedroom, 2 bath condo

Gotta ask, what is the .5 bedroom?

Shit happens. And it usually happens because of physics.

[craichead 0]

It's a den that we could convert into a bedroom, but we made it into the dining room, instead.
_Pm

__
"Scared of love, love and aeroplanes...falling out, I said takes no brains." -- Andy Partridge (XTC)

[tigra 0]

Have you looked into HUD owned properties, other foreclosures, fixer uppers and/ or estate sales? Or not so great but "up and coming" urban areas, ethnically "diverse" areas?
What about buying on contract or renting with an option to purchase? Just throwing that out there- I'm not really familiar with that market, but these suggestions work for more affordable home ownership in the Chicago area where prices are also pretty darn high. Also look into any federal or state "first time home buyer" programs which may provide down payment assistence or forgiveable second mortgages to people who qualify.

Remember also, in areas with relatively low housing costs, the income or income potential also tends to be lower. I remember years ago, I had friends move to northern Wisconsin because they were able to buy a big house there for very little money. They were thrilled with their house, they had two little girls and they wanted them to have a house with a big yard! But they had to move back a year later because neither one of them could find steady work.

Finally, talk with a real estate professional, tell him or her what you are looking for and your price range. They'll let you know if they can or cannot help you and will probably make some helpful suggestions. If you've already done all this, then I'm sorry for the repetitve information! Good luck whatever you decide!

[billvon 2,470]

I got a 30 year fixed rate mortgage for $2100 a month. Depends on what kind, when you get the rate fixed, the term etc but we did it. We timed it right, though - our house went up something like $120,000 in value within 18 months.

[jsaxton 0]

that'd be $1500/mo each

[smiles 0]

I have just experienced the adrenaline rush of buying a home- it is depressing to read it is impossible for first time home buyers to buy in Cali.

tears.....shitzzzzz to hear- $3000. a month- whatz with that?????

I live in Canada-
have been freaked about the responsiblility of "mortgage payments" for far tooo many years.
While raising our boys and renting (& skydivin)...we were able to scrape up a downpayment of $30,000---and then we got "brave" enough to buy.

What a rush receiving the letter from our bank stating:
We are pleased to inform you your application for a mortgage has been approved. $156,825.00 is the amount. Interest rate and annual % rate=
5.800000% fixed for 5 yrs........$984.81 monthly mortgage (principal and interest)
sweeeeeeeet!!
Talk about time to celebrate!!


Our beauty home & property in Fraser Valley, Van. B.C. is 23 yrs. old -but built solid wood- 1800 sq. ft., new roof- awesome wide street newly paved & very quiet, very private property with huge back yard (my park), split level home with master bedroom & bath, kitchen, dinning, den, 1 bdr- up.
Laundry room, huge 1 bdr, bath and huge living room with fire place down.
Enclosed garage, huge wood deck off back porch, wood shed and water feature in back yard. All appliances working great- floors are beauty wood (floors & kitchen recently renovated with class)
New furnace and water heater, double glazed windows. Landscape is gorgeous surrounded with maple trees and beauty view of Mnt. Baker.
D.Z. is just down the hill.
Home sweet home!-

---all I had to do was paint inside & move in- we are saving so much now compared to renting and can even afford to make double payments---(our income combined is $150,000. yr. cnd.) Our extended medical insurance covers all medical expenses over $100. a year. Pretty easy to make priorities to purchase all new furniture & renovate my home to my tastes- but have decided to put that off for 5 years. We can live comfortably here the way things are -along with affording to skydive, take holidays.
(our boy's both employed with full time jobs have left the "nest" with certified trade tickets.)

so, so much to appreciate


SMiles

[JRock 0]

My Dad told me never to buy a house... I should have listened to him...

I can show you on paper it doesn't pay to own a house.

Everyone talks about appreciation.
Well, that is not always a given. Also, you hear about the tax break... well interest rates are so low it really doesn't get you anything.

Oh yeah, you hear you are building equity... blah blah blah.... if you add up all the crap you spend on your house a year in maintenance it quickly eats through what you get out of it...

I hear about people's homes appreciating rapidly.. Well some do. For the ones who don't and then you go to sell.... you get jacked 7% to sell it. Granted you can negotiate that but still think... if it is 5% on a $300,000 house.... guess what... that is $15,000. So once you buy it... you are already $15,000 in the whole.


I would see about renting a house (since you have three kids) that is has reasonable rent in a location that is not so expensive to live.

The only reason I don't sell my house is I now have three dogs and have to have a yard.

Just my opinion, I may be wrong.


Plus, you can get a $300,000 house for a lot less than $3000 a month. Tons of financing options out there. You should be able to get that for around $1800.

Just some freindly advice... not trying to preach.