How can People Afford 700k HOUSES in Los Angeles in 2013?

Asked by Gdudjsudi, , Mon Jan 7, 2013

My husband and I recently moved from Texas and now make in the 200k ballpark combined with no debt.

In looking at houses in Los Angeles, it is impossible to find a decent 3bed 2 bath house for under 700k. In the ghetto of Inglewood and Compton, they are in the 500k range. All are so old and need repairs.

What occupation to people have that enables them to afford a house in Los Angeles? Please no realtor BS on you can help us find a place. We just want to know from others what the typical 700k house buyer make and their typical occupation.

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SERGEY FEDNOV…, Agent, Beverly Hills, CA
Mon Jan 7, 2013
Seems lIke many people are able to afford and would like to buy properties in Los Angeles area at a present prices.

It also looks like prices are increasing, there for - right now is pretty good time to buy.

I'm not sure about Texas, however there are different cities and counties close to Los Angeles where you can purchase property for less than Los Angeles - for example San Bernardino county, Riverside county, Kern county, etc...

There you have some options - and if you need to buy closer to LA you may consider San Fernando Valley, San Gabriel Valley, and other cities where I can locate properties for you at a lower price.

Hope this info will help you!

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1 vote
Brian Byhower, Agent, Hermosa Beach, CA
Mon Jan 7, 2013
I don't know where you get your information from, but it is incorrect. Maybe LA isn't the place for you.
1 vote
Tina Lam, Agent, San Jose, CA
Mon Jan 7, 2013
If you're making $200K, then you already know it's very easy for people to earn enough ($120-150K/year) to pay $700K on an entry level home. It's the breadth of opportunities that has drawn so many to California and prices reflected that.
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1 vote
Terry Farnsw…, Agent, Lisle, IL
Mon Jan 7, 2013
There are so many occupations or situations that would allow someone to afford a 700K home, they are almost impossible to list. There is no "typical" occupation. They could be anyone from a business owner, to an executive, to someone who was left a large sum of money through an inheiritance, to a movie producer/celebrity. The list goes on and on and on and on...
1 vote
Donny Opoku, Agent, Ladera Heights, CA
Thu Feb 7, 2013
There's plenty of nice properties in the 600K range in 90035. Do your homework. Tough time for a buyer low inventory.
0 votes
Dorene Slavi…, Agent, Torrance, CA
Wed Feb 6, 2013
It must be a shock after coming from Texas to the Los Angeles area, however, you might consider looking in suburb areas for more reasonable home prices. Santa Clarita, Valencia and Riverside are less expensive as are Simi Valley and Moorepark,. It will require a commute on your part but that is how many couples start out.
0 votes
Jamie Tian, Agent, Los Angeles, CA
Mon Feb 4, 2013

Los Angeles has some of the highest home prices in the country because the demand is so high. There are other areas in Southern California or in the Los Angeles vicinity with lower home prices and newer homes. Los Angeles homes are expensive just for being in Los Angeles, especially in the Westside.

Please let me know if you have any other real estate questions.

Best Regards,

Jamie Tian
Rodeo Realty
(310) 717-1321
DRE# 01920120
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0 votes
Shane Milne, Mortgage Broker Or Lender, South Jordan, UT
Mon Jan 7, 2013
Maybe they aren't raising a family? But figure if someone is making $250k/year, or $165k after taxes, and pays $48k/year for housing, they have $117k remaining... that is $9,750/mo to pay for food, insurances, car payments, entertainment, retirement & kids college. That could easily be done.
0 votes
Gdudjsudi, Home Buyer, ,
Mon Jan 7, 2013
The information is from Trulia and going to open houses, west of dtla and north of inglewood. Even with a qtr million income, how can regular people afford $4k in P.I.T.I while raising a family and saving some cash?
0 votes
Try my suggestion. There are new homes in Santa Clarita low prices by L.A. standards.
Flag Wed Feb 6, 2013
Shane Milne, Mortgage Broker Or Lender, South Jordan, UT
Mon Jan 7, 2013
You know property tax rates here are significantly less than in Texas, right? It's roughly 1% of the sales price here in CA vs. around 3% in Texas.

Even using FHA financing with a 3.5% down payment, on $200k/year of income & no other debt, debt ratios would be looking pretty good on a $700k sales price in L.A.

But Terry is spot on in his response - the list would be exhaustive. I've helped retired grandparents purchase homes in the $700k range with huge down payments, straight out of med school doctors with smaller down payments, parents co-signing for their children on such house prices, etc. There isn't one type of occupation that people predominantly have over another. However all of their occupations income levels have allowed them to afford the payments that they attempt to qualify for.

Doing loans in both states, in California I've found that people are used to spending more of their income on housing than in Texas, so that could be one reason that housing price vs. income ratios here in California seem more extreme for someone coming from Texas.

Shane Milne | Lending in all 50 states | NMLS #81195
0 votes
Susan Bo'ur, Agent, Manhattan Beach, CA
Mon Jan 7, 2013
Good morning,
I understand your frustration..I have a couple looking in that same price range.
I really depends on where I Los Angeles you're looking. Calabasas, Woodland Hills, Thousand Oaks to name a few is where we've shifted our focus and are finding beautiful large done homes.
Us be happy to email you the property info sheets, which has several photos, complete description, school info. and much more.
Susan Bo'ur Realtor/Coldwell Banker
Have a wonderful day! And welcome to LA!
0 votes
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