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 $200 range combined with no debt. According to the media, we are rich and swimming in cash. But we can't even afford a house in Los Angeles.

We've been house hunting to immense frustration. In Los Angeles, it is impossible to find a house for less than $700k 3bd 2ba. Those we found are 1940s dumps and they have the nerve to list for 750k. Who are they kidding?

How much do the average Los Angeles HOUSE buyer make? What are their occupation? Pls no realtor BS on helping us find a house. We simply want to know how people can afford these post-meltdown 2013 house prices.

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Answers

78
Greg H, Home Buyer, Glendale, CA
Sun Feb 7, 2016
I'm 26 years old and I recently bought a $950,000 house in one of the prestigious parts of Glendale. At 20%, that's a down payment of 190k.

My income alone from work is a clean $5,800 a month.
My passive income from online business is $1,500 a month.
Give or take, I alone make almost $7,500 clean a month.

How did I afford such a house? By saving for 4-5 years. I lived with my parents. I never paid rent or any utilities except my own stuff like gas. I didn't have to pay car payments either. Now most of you are probably thinking, "huh privileged kid". Well unfortunately the mentality in America is for young adults to move out and learn to be "independent". In my opinion, moving out after 18 is total bull. You will never save money when you are renting. Most American families, from experience, do not help their kids in this fashion. They will not support a child for years on end for them to save money. Not saying all won't, but the general mentality is America is to boot your kid out at 18. My family's support system is different. We help each out out as much as we can until we get on our feet. Jew's do this also, that is why they are so far ahead and dominating most of the critical sectors of America. I'm not Jewish, but our mentalities are the same to an extent. In order for a young adult to go forward in life in an expensive city like Los Angeles, the parents must support them. There is no exceptions to this rule. You will need some kind of strong support backbone. My parents told me, listen Greg, you don't have to pay anything but you gotta do two things.

1) Go to school and get your degree
2) Save for a down payment.

That is all they wanted from me. My parents aren't rich either. We are middle class.

So essentially, i saved for 5 years for a down payment, my credit was strong, and I had a high income. This is how I bought the house. If i was to live alone, it would've been impossible.
11 votes
Well, we're all happy for you, but It does not make sense how you manage to make payments on all the expenses that comes with owning a home that expensive based on your income. Best wishes, of course. My advice for the lady and husband making 200K is save all the money you can and when the next earthquake that hits LA, everybody in their mother who never been in one will leave their homes in an instant. I hope you're still alive after and swoop over a million dollar home for under half the price.
Flag Thu Nov 16, 2017
Don't pay any attention to this guy. I live here, right next to Glendale, in Burbank and I know he is full of it. Plus, who buys a house for almost a million bucks with that income????
Flag Fri Oct 6, 2017
This is a joke right? How did you even get qualified for that loan?
Flag Tue Oct 3, 2017
Sounds like you didn't have a disable mother like I did whom I picked up off the floor when I got home from school everyday. Take your ego and stuff it.
Flag Sun Oct 1, 2017
Hello. I agree. I simply thought parents telling your children to leave when they reach 18 years was exclusive, but it's more like a cancer. I would NEVER agree to have my children leave UNLESS they were ready - mentally first and then financially, and IF they wanted to. I simply detest this notion that a child is mature to leave when they reach a certain age. The child is forced flight or flee. Most flee without the knowledge to do anything. It's a terrible tragedy.
Flag Tue Sep 26, 2017
Exactly! Why is it, in this country, that we kick our kids out so early? My husband and I feel the same way as your folks (we're not Jewish). As long as your adult child over age 18 is NOT ABUSIVE and is contributing in some form to the family (cooking, dishes, errands, or laundry) they should be allowed/welcomed to stay. As long as they show adequate respect/appreciation AND are attending school or working to improve themselevs, in some way, then why not? Wait til they can well AFFORD to go it on their own (age 25-30). We have two adult children. One is a contributing member and still lives with us until his career takes off and he has saved enough to live a decent lifestyle. The other was just abusive, disrespectful, deceitful/selfish and ran through a great deal of our reirement savings (we finally had to make her GO)! So, we are fine with our son living with us. In fact, we love it, as he pitches in a lot--not financially, but in other ways... and it's a win/win for everyone!
Flag Fri Sep 22, 2017
That doesn't make sense. $175K a year or so and you borrowed 800K? More than half of your income goes to the house payment.
Flag Mon Jul 31, 2017
Umm, your financing doesn't really make sense. What is your yearly income? $175? You were able to borrow almost $800K? That is too much leverage.
Flag Mon Jul 31, 2017
i have a house to sell
Flag Wed Jul 26, 2017
Greg,

This is also how it works with the homeland Chinese. Real Estate is priced extravagantly there. Plus, you must have 20%-30% cash down to qualify for any financing. Private home ownership was not even allowed by the Communists there until 20 years ago.

I have read the replies to your post. The entitlement mentality stinks like something you wouldn't hold in your hand.

Jewish and Chinese families tend to stick together more on a geographic and relational basis. They do not follow Western mores of dispersion for opportunity. The Amish/Extreme Mennonites are two more cultures that stick together, even moreso than Jews. It's more about family than about me-me-me. As you wrote, these cultures do help each other more a great deal more than relatives who live spread out across the country. Depending on family for a healthy financial start means delayed gratification resulting in a much higher home retention rate vs a higher probability of foreclosure due to excessive debt leveraging.
Flag Mon May 29, 2017
So with taxes and insurance, I'm guessing the monthly payment on a 30 year loan at almost 4% would be roughly $5000. That's a good 66% of your monthly income. Seems like thin ice to me. I would not want my mortgage to be over 25-30% of my monthly income. A lot of people feel the same way.
Flag Sat May 27, 2017
you were obviously born with a silver spoon in your mouth. Your parents may not have been rich but you were able to freeload so you should have accomplished what you did. Had you had to pay rent to your parents..in addition to other costs of living I'm quite sure you'd not have been able to do what all you did.. Additionally, those who are lucky enough to have parents that pay for their education are also ones that should do something with their lives. It's those who did not have those luxuries that are struggling just to make ends meet that find it most challenging to save to where they can put a down payment on anything. count your blessings.. and be real glad you're a millenial .. those that are have the entitlement mindset.. after all .. it's all about them. only them. how much can I get if I self serve? Hmmm.. I'd probably get what you did.
Flag Sat May 13, 2017
Noone at 26 and first home buyer who is a middle class buys their first home that is $950k.
Flag Sat Apr 29, 2017
So, you saved $40k a year. Pretty good, but at 26 years old seems hard to believe. What's even harder to believe is that at $90k per year, would you qualify for $760k mortgage? The taxes alone is $1,000 / month.
Flag Sat Apr 29, 2017
Keep it up, you're doing great! Just curious, hye es axper?
Flag Mon Mar 27, 2017
Sorry but jumbo lenders require more income to qualify for a $760,000 jumbo loan! Your ratios would be through the roof. Obviously you are telling the whole truth. $7,500/month DOES NOT QUALIFY you for a $760,000 mortgage unless you have no property taxes or no insurance costs.
Flag Wed Mar 15, 2017
So you are house poor? 7500 a month on a $760,000 mortgage makes you house poor. Living at home for 4-5 years shoot me!
Flag Thu Feb 16, 2017
When you say a clean $7500/month. Do you mean that you make $7500/month after tax or before tax?
Flag Mon Feb 13, 2017
@Beh_zad. I have other income. I got approved for 690,000. Stop following retarded statistics. Everyone is different in their finances.

@Jim, that's why you're prolly 30 and live in an apartment and most of those kids are barely scraping by. Stupid American mentality to boot your kids out at 18. Smh.
Flag Tue Nov 8, 2016
Lol. Most parents boot their kids so the do not become entitled dusch bags like you.
Flag Thu Nov 3, 2016
Lol. Most parents boot their kids so the do not become entitled dusch bags like you.
Flag Thu Nov 3, 2016
Your mortgage should be around 35% of your disposable income based on your case is about $2600.00 or $2700.00 then you have your tax and insurance they add up to $1100.00 to borrow 750K you payment will be in $3500.00 there is no way you would qualify for such loan sorry
Flag Fri Oct 21, 2016
Your mortgage should be around 35% of your disposable income based on your case is about $2600.00 or $2700.00 then you have your tax and insurance they add up to $1100.00 to borrow 750K you payment will be in $3500.00 there is no way you would qualify for such loan sorry
Flag Fri Oct 21, 2016
My only regret is I didn't have the capital back in 2011-2013 to buy. If I did, I would've probably walked away with 600-900k profit.
Flag Sat Sep 24, 2016
I bought the house 6 months ago.
Flag Sat Sep 24, 2016
Original poster here. Still living in this house and paying the mortgage super comfortably. While most of you are sitting in a corner with your nuts cupped, I went in early and now my house has appreciated about 75k. Yup.

@ Chazilla if you make more than me and you are hesitant to purchase a 500k property, then you shouldn't buy a house period. Rent.

@ Chant - I actually do drive a benz. Don't hate cause you can't buy it and Armenians move forward quicker than you. If you don't like it, you can leave the city. Most of the older residents of Glendale have.

@tjbrenna. I risked it cause I knew the potential. And yes, I have 6 months saved.

@chrogo. Mortgage is $4,400. It shows you how narrow your mindset is if you think that I'm going to live in the same house for 30 years. People live for 4-5 years and move on. In a good city, you will see a good chunk of change.

@A320, you make 15k and you're afraid of 950k house? Wow.

@Janet - Engineer.
Flag Sat Sep 24, 2016
I call BS. Your monthly gross/net income does not quite add up with how much you should be paying for you principle/interest/insurance/hoa/utilities. Youre in over your head. I make more than you, and I was hesitant in purchasing my 500K home. Good luck!
Flag Sat Jul 9, 2016
I lived in a suburb of LA Carson Ca but I bought the house in 1997 when they were 140,000 no they are very high. We moved to the valley in Moreno Valley outside of LA- and I commuted daily but it was cheap 140 for 6 bedrooms they may still have reasonable homes there it is about 70 miles from LA
Flag Fri Jul 8, 2016
Sorry, but sounds like typical Armenian. I bet he drives a BMW or Mercedes as well. It's the same here in Burbank. Most of the people buying homes are Armenians now. I don't get it.
Flag Sat Jun 11, 2016
the response from Greg is typical Cal. He can't afford it but got it anyway. Most of America goes by the 2.5 x or even 3 x times your total income when purchasing home.
7500 x 12 (clean/net) = 90.000. Even if he grosses 131,000 he still cant afford the house he's in. In Illinois he would be approved for 393,000 tops.
Does he have 6 months cash saved?
Flag Wed May 18, 2016
Yeah this guy is screwed... What's your monthly total payment on the house? Like $4600? Good luck paying that every month for 30 years. Plus the interest is gonna make the house cost you more like $1.6 million... lol have fun buddy.
Flag Thu May 12, 2016
Dude, you're in over your head. I make $15k a month and there's no way I'd attempt to buy a $950k house.
Flag Tue Apr 26, 2016
Exactly. I wish more families were like ours.
Flag Wed Mar 30, 2016
What is your job occupation?
Flag Fri Feb 19, 2016
Rocksinga, Home Buyer, Los Angeles, CA
Sun Jun 28, 2015
So we moved from the southeast where we sold our 4000 sq. ft. home for 390, 000 (atlanta). Now living in San Juan Capistrano where we rent a very nice 3/21/2 with a beautiful view for 3000 month. No way we can bring ourselves to buy a 750K home because they are small, unattractive and have no quality of life - tax shelter write-off yes, but how depressing to pull in the driveway every day!

Live 1 mile from the beach, 1 mile from our work, and 1/4 mile from a golf course PLUS if anything goes wrong, call the landlord and go back to sleep. Owned 5 houses, would have never thought i would be a "renter" (losers, right?) but folks, I am here to say...Home ownership is WAY overrated!

Signed,

Renting and loving it!
10 votes
Exactly! Why is it in this country that we kick our kids out so early? My husband and I feel the same way as your folks (we're not Jewish). As long as your adult child(ren) over age 18 is NOT ABUSIVE and is contributing in some form to the family (cooking, dishes, or laundry, etc) they should be allowed/welcomed to stay. As long as they show adequate respect and appreciation AND are attending school or working to improve themselevs in some way, then why not? Wait til they can well AFFORD to go (age 25-30). We have two adult children. One is a contributing member and still lives with us until his career takes off and he has saved enough to live a decent lifestyle. The other was abusive, disrespectful, deceitful and ran through a great deal of our reirement savings (we finally had to make her GO)! So, we are fine with our son living with us. In fact, we love it, as he pitches in a lot--not financially, but in other ways... and it's a win/win for everyone.
Flag Fri Sep 22, 2017
Love this fresh view! And considering the prices of homes on sale, I must comply!
Flag Fri Jun 30, 2017
O.K. if u really want to live in Cali & u can't afford the high-priced homes, use alittle brain power. Choose a part of Calif. that u can build on, so that means no cities, just country areas. You can buy land in some areas for 40, 50 thousand. Build your own home, or buy a log home kit for $100,000 including kitchen, bathroom sink, countertops etc. (On the high end for a small budget)there u have put out 150,000 for a home in Calif. Get a loan for that amount & u not only have a home...It will be brand new!!! U have to be creative in your thinking. Instead of paying 300,000-750,000 for a used home....build your own. If u build it right it will last a life time of great grand kids. My uncle in N. Calif. did that & every 3 yrs he built on it. He got a log home kit 3 bedrooms 2 baths for 130,000, 8 yrs later his home has 5 bedrooms cause he kept adding on. You should see his new kitchen in the back, it is separated from the house but he built a hallway to get to it. Nice place.
Flag Sun Mar 5, 2017
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Flag Sun Nov 13, 2016
I like that hopeful answer. I can only live in my area of Nashville if I rent, bc the homes are 600k+. I make 50k a year as a flight attendant. I hv a steal of a deal to pay under 1k and all I get is grief from people that I haven't bought a home 'yet'. I save money, I hv no bills, I sleep well at night and can always move to florida when I retire if the bubble doesn't burst here in Nashville, which I think it will, bc every big city that destroys the history just to build, have a bang after the boom. I'm trying to enjoy my goldmine, even if it is a rental. Thanks for this positive post! #rentingisstressfree #buyersdontalwayswin
Flag Sun May 1, 2016
is not the corruption the human being are the worse kind on the universe if you see there are 52 states in the US a bunch idiots want to move in one state when the Gov see that they make you a slave when you get there you stupid only going to work for a stupid house.
Flag Sat Nov 7, 2015
I sure hope you have a good retirement plan. Ain' nothing worse than giving your money to someone else every month without gaining anything except rent hikes and eventual having to move far from where you want to be in order to afford a place when you can't work anymore and are retired. talking 65 and over. Talking trailer in the desert my friend.
Flag Mon Sep 28, 2015
Lfc1001, Home Buyer, New York, NY
Sun May 21, 2017
This is certainly not the only way in getting a house, but I have to agree with Greg because I was able to purchase my first home in a similar way.

I was 27 when I was able to purchase my first house back in 2009. After college, my then-girlfriend (now wife) and I both stay with our own parents and try to save every dollar so we could buy a house in the San Gabriel Valley. Back in the summer of 2005, our plan was to save $1,000 each per month for the next 5 years. We also wanted to pay off our student loans as soon as possible. We both were able to pay off all our student loans in just a couple of years and increased our saving toward a house to $2,000 per month for each of us.

When the market crushed in 2006/2007, it did not derail our plan but we saw opportunity ahead. We try to save even more and waited for the right opportunity. In April 2009, we saw a nice condo (without major makeover needed) for $395K. At the time, we also got an additional $8,000 credit for first time home buyer (it was the last thing that push us from saving mode to buying mode). I understand most of you that doesn't live in SoCal would think it is crazy to buy a 1600 sq ft 3bd 3bth condo for close to $400K, but that's the rule of the game in the SoCal market. In 2016, our condo is worth around $600K or could be rented for $2,600 per month.

For a couple of young adults in their early 20s to dedicate their early adult life in saving for a house is certainly not the norm. We were determined to purchase our own house before hitting 30. With that said, we could have never be able to accomplish our goal without living with our own parents until we were 27. Our parents were working class and certainly unable to provide a down payment for us. Our family helped us greatly just to allow us to stay with them. Our parents definitely contributed into our down payment for providing food and shelter. Not paying rent and buying food for about three years allowing us to save enough for our down payment. We only spend $10,000 in remodeling (D.I.Y.) and furnishing (Ikea!!) our entire house. We also did not have an expensive wedding like most other couples. We just invited our family for a gathering dinner. I knew I found a keeper when she told me not to get her a diamond ring.

We are now 34 and purchased our 2nd house also in the San Gabriel Valley for $750K. We also have plans to purchase another house in 6 to 10 years from now. Most of our friends just got their first house or are still saving to get their first house. We are on the right track of an early retirement. We are still saving but no longer penny saver like we were in our 20s. We love to travel and currently traveling two times a year. Now with a newborn baby, we will have to change some of our traveling habits.

Buying a house in a nice neighborhood in SoCal is not easy. In my own experience, I believe it takes lots of planning, lots of hard work, lots of help from others, and a bit of luck on your side. Basically, that's my motto not just in buying a house but doing anything in life.
6 votes
rlau, Home Buyer, Los Angeles, CA
Thu Apr 21, 2016
Another non-Agent answer here:

The answer is there are far more people in Los Angeles that are far wealthier or have incredible incomes that will simply make you question why you bother to work at all. Just to start: Celebrities. Actors/actresses, musicians, athletes, writers, artists. Many people who "have made it" now live in Los Angeles or NYC. Their royalties alone can generate 10-100x what is considered normal. I know they're not average, but hold on...

Step down from the massively successful a little, and even B- and C- level celebrities, producers for less successful shows and movies, still can make a lot more than what you consider normal. Then there are other media, Doctors, Lawyers, business owners. There are INCREDIBLY successful real-estate tycoons who live here, people that laugh at how insignificant Donald Trump's "empire" is worth. There are people who rent aircraft hangars at Santa Monica airport just to house their car collections. There are people who live in beverly hills houses and pay $60 GRAND a month IN RENT, and laugh because they're getting a steal because it's all going through their corporation, which probably generates multiple millions per month.

This is Los Angeles, where many of the most successful people in the world live and work. The super rich alone employ their own staff of people. I interviewed a nanny whose last job she was one of six nannies! Yes, it is crazy, but there are tons of people who can afford to live here. It's almost like Reagan's trickle-down economics, but all those ticket, music, and DVD sales, all those cable subscriptions, all those ads that people see, all those airplanes and defense that are purchased, a lot of that computer software people buy from around the ENTIRE WORLD, a lot of that money gets injected into LA's economy.

There are legions of small business owners in L.A. Successful boutique owners, building contractors, curtains, persian carpets, restauranteurs, celebrity chefs, boutique butchers, niche sausage-makers, instrument sellers, rare instrument makers, vintage car sales, luxury car sales, exotic car sales, exotic used car sales, pet groomers, pet breeders, pet walkers, etc. There are so many business owners in this town. I had an Uber driver who owned the sunglass carts in various malls, who picked me up in his Audi A8...doing Uber-X just because driving helped him think and he enjoyed networking with people. The painting contractor we hired that had the best value and most professional proposal, drove up in a 7-series; I could tell he had earned it. People spend money in L.A. and it makes a huge economy. An economy that supports ... very high housing prices. Look around L.A., you don't have to look far to find ten people who are millionaires, and they may even be living in $700k 3bd 2ba from the 1940s.

There will always be people who make more money doing less work than you. Is it fair? I don't know. Is their life any better than ours? From the outside, it would seem so, but once you dig a little, everyone I know who works with celebrities and the like are happy to live "below" that lifestyle (but are nonetheless willing to accept their money!) Money definitely makes some things more comfortable, but it doesn't make those people any happier (often less so, and there are exceptions of course).

There is a solution: do the best with what you have and be willing to make trade-offs. Be willing to live in something older, or a less desirable neighborhood. Live in a townhouse or condo, take a longer commute. Purchase a smaller house, make two kids share a room. Or you live the L.A. Dream and figure out a way to get a bigger slice of the pie.
5 votes
Ok. Nice write up. But the prices are still nowhere near where they need to be for people to live aroumd those rich people you talk about.
Flag Wed Aug 9, 2017
You do not sound like you are from Los Angeles. The great majority of us do not work in "the industry" and the great majority of those that do, do not rake in that kind of money. The answer is actually Prop 13, but it sure does sound sexier to wax philosophical about the glam life of the rich and famous.
Flag Sat May 13, 2017
Maxamillion9…, Home Buyer, Fontana, CA
Fri Feb 19, 2016
After reviewing the rants and nonsense posts on here like children pissing and moaning I decided to make my case. After living here many years and seeing it first hand, Years ago Ca was a land of opportunity & the american dream....but this was like 30-40 years ago and year after year this states drives itself into a deeper black hole of chaos. It works for different kinds of people. If your biggest goals are to live somewhere that has nice weather, by the beach and alot of the other glitzy BS crap LA offers & CA that wears off after a a year - by all means live and work here.

But you will find this state is horrible at the following :

-Taxes( personal and business )
-sales tax
-gas and all taxes associated with it
-politics
-corruption
-govt control and regulation on business and people.
-left is right and right wrong mentally
-the is no diversity economically or politically
-the state is run by incompetent elected officials unqualified to manage anything needless to say money. Trees get off better here than people.
-extreme left wing and every politcal correct thing thrown down your throat under the sun
-business friendly

the list goes on.

the biggest on is home ownership. YOU NEVER GET THE VALUE FOR WHAT YOU PAY FOR IN AN OVERRATED OVERPRICED MARKET. that is the bottom line. For 500,000 you get a shoebox built in 1953 out in a peice of trash area like inglewood or fontana. No thanks. The rich dominate the desirable areas with are far few and between. Most of Los Angeles county for example is a dump.

CA is not for the most money conscious people with financial education or basic financial IQ. The trade off is money out of your pocket and if you are poor or middle class, this state in not for you based on that.

Best states to get ahead and have fun at the same time. CO, FL, TX, and NV to name a few for reasons you will need to research on your own without hand holding. Best of luck.
4 votes
perhaps you could share more generalizations??
Flag Fri Jun 17, 2016
Programmer, Both Buyer And Seller, Dallas, TX
Mon Aug 11, 2014
I have an offer to move from Dallas, TX to San Francisco (not LA, but that seems irrelevant). I will be paid about $200K in salary and I have been offered 2x that in a bonus if I move. I have another $200K I could put down, meaning a $400K down payment. But as far as I can tell, I would have a commute of over 1 hour just to get a house with 4 bedrooms on a lot that barely fits the house for about $850K. That's a $450K mortgage, for a house that would sell for $150K in Texas. I'm not saying that all 4 bedroom homes in Texas go for $150K. I'm saying that the houses I see listed on Zillow < 850K within an hour of where I'd have to work are such junk that's all you could get for them here.

The sad fact is that the houses in SF / LA aren't worth 1/5th of what they cost in in pure materials, which means either the land is making up the difference (it is more expensive, but lot prices only account for about 1/2 the difference on a house in this range), the construction labor is making up the difference (it isn't... there's almost no new construction), or people in CA are being ripped off on a monumental, criminal scale.

And I absolutely guarantee you that it is the last of those. Go to Zillow and compare the number of blue dots -- foreclosures -- in CA to everywhere else in the nation. It is absolutely astronomical. Why does this continue? Because much of the construction is old, and the demand is high, the banks aren't losing any money. They foreclose on the home owner, they keep all of the interest they made, and they resell. Meanwhile, the agents get a percentage and everyone's happy except the poor sucker who lost his house and who, despite CA's vaunted "quality of life" has to drive 2 hours a day and doesn't have enough room in his backyard to throw a baseball with his kids. That sounds like a really bad deal to me, so, no thanks.

As for property taxes, the guy below from Houston is only telling part of the story. In the Dallas-Fort Worth area you will not find anywhere with property taxes much above 2.5%. Most locales lay between 2% and 2.5%. In Texas in 2014, you can get a house for $500K that is the equivalent of a $1.5 - $3 million dollar house in SF / LA. That will be $12,500 in property taxes. I have been looking for just the right house in Texas for some time, and I see houses all the time here in that price range with taxes between $7000 and $13000, depending on the municipality + county + school zones, so $12.5K is on the high end. No good right? But wait, there's no state income tax. What do you think you'd pay each year in income tax in CA? With a $200K salary, in 2014 you pay 9.3% + $2,191.48, or $20,791.48, you live in a house that is comparatively a dump and have an hour + commute to work in heavy traffic. Heaven forbid you get a bonus and cross the magic $254,250 mark, because CA will take almost the entire bonus in extra taxes up to 10.3% + $21,207.75 ($47,395.50!!)! How do you think it feels to work you butt off, get a bonus as a reward, and realize the STATE government took 94% of it from you? I think the Founding Fathers are rolling over in their graves. To top that off, sales tax in Texas is 8.25% almost everywhere and in CA it's 7.5% up to 9.5%, depending on the municipality. Did I mention that in your house will also be on a minimum of 0.15 acres, up to 1 or more acres, depending on the area you're buying in? Most houses in SF area -- 0.08 acres or less.

And believe me, I know how lucky I am to be making what I am. I grew up very much lower middle class, and $200K a year is a TON of money in most parts of the nation. But when comes to CA and the real estate there, it's marginal.

Besides Texas, I have lived on both coasts and in the Rockies and I am not a fan of TX as far as climate and nature goes, but there are a lot of nice places to live that won't rob you blind like CA.

The short answer -- most people cannot afford houses at the going rate in CA metro areas like LA and SF. The foreclosure rates in CA are in the top 10 in the nation (or top 5 depending on the list) and almost 3 times that of Texas. It won't change until people flee CA for saner pastures. I realize the climate and scenery are a draw, but at the cost of your sanity?
3 votes
Its not just the climate and the scenery. Its the job market and its living in a place the has some modicum of infrastructure. I would agree with you about moving (I am an LA native) except that job markets for my partner who is an animator, are quite bleak in other locations. And frankly they are not that great for myself either as someone who works for a non-profit clinic trials organization that does ped oncology.
Flag Sat May 13, 2017
It seems to me that foreclosures rates do not correlate with the affordability of an area, rather that foreclosures happen either because of sudden unemployment or because people are become irresponsible in their finances.

In L.A., I tend to think it is more the latter. It easy to lease two or three luxury cars (only a Maserati or Porsche will do), and the lure of another shopping trip at the numerous luxury boutiques around (gotta have another LV bag). Gotta get the latest and greatest iPhone for every member of the family, that new 3-D, curved ultra high def TV, gotta eat out for breakfast, lunch, and dinner, every day of the week, because they've never fired up the stove, and soon finances are out of hand for people with extremely high incomes. Even people with half a million dollar per year incomes can spend all their money just as quickly as someone with a fifth of the income in this town. And this story happens at every income level in this town (just scale the brands down).
Flag Thu Apr 21, 2016
You're really bad at estimating taxes. A single person in California will pay $16k for making $200K ($13.5k if married), so you only overestimated by 25%. However, you're estimate for $255k is ridiculous, nobody is paying an 18.5% effective tax rate in CA, especially since the top tax rate is 12.5%. You would have to make $500k a year to pay the amount of taxes you mentioned.
Flag Mon Jan 18, 2016
Excellent points, thats the reality much different from what the Media is advertising!
With my 120k annual salary i'm too embarrassed to even shop for a House,or should i call it a Shed!
Flag Tue Apr 21, 2015
Annette Law…, Agent, Palm Harbor, FL
Sun Aug 3, 2014
This question posted Jan 2013.
...sudi has solved the situation in 18 months.

But for other readers in a similar situation.....

You have many options.
Just this week a buyer, voicing a similar situation, but actually seeking a solution, did find a house that they did buy The house was presented right here on Trulia and the buyer was secured via the First Look option. Now if this buyer does not appreciate the advantage presented to them, and goes goofy, they will be dealt out and the next buyer will replace them As many buyers are finding out, the good stuff has no shortage of buyers, sells in nano seconds. IN such markets a buyer needs an advantage. Those advantages are created for them.

What should buyers do.
Drop the attitude.
"No Realtor BS" does not suggest a buyer are open to alternative buying methods therefore a professional should not waste a second of time in helping them. In the end such an attitude promises the buyer will look for others to blame for bad choices they make. (low ball offers, stuffed with contingencies, extended close date, big bank paper)

Face it, a buyer going to need to meet up with a few professionals, (sorry, not BS) to review their situation and the buyer situation will dictate the options that will prove successful. One such outcome is the buyer may need to adjust their expectations. No BS.

Here is additional 'No BS," that may prove useful. This IS a business, not a hobby. If a buyer is serious, they will do what serious folks do, contact professionals. There are solutions. Unfortunately, they are not FREE. We need to keep our light on too.

$200,000 income, little debt, no blemishes, there are solutions.
NO BS, those who successfully help buyers and sellers dozens of times every year just might have solutions you don't know about and won't be made public.
3 votes
Sorry, no Realtor that I know has an ounce business acumen. I know dozens of them. They know supply and demand of houses and how to try and talk me into buying something I do not want, but they do not know how to help me find what I do want. After 30 years of buying and selling, I have given up on Realtors as sources of negotiation, industry knowledge or liaisons. They are professional liars, one step above lawyers only because Realtors receive a lower commission.
Flag Mon May 29, 2017
Ron Escobar -…, Agent, Beverly Hills, CA
Sun Jan 13, 2013
I believe your frustration comes from comparing Texas to California in terms of standard of living. In Texas you van buy a huge and new house with $300k. In the Los Angeles area you are lucky if you find a nicer condo at that price.

Though $200k income takes you a long way in Texas...in Los Angeles it does not in terms of buying a home. Most people in LA bought a long time ago or inherited a large sum to make downpayments...

To get the standard of living you want, you probably need to make double what you are making now or have a $599k downpayment. As crazy as it seems, I represent people buying and selling multimillion dollar houses all cash quite often. All I can say is welcome to LA -What's your dream?

Ron
3 votes
My dream just got shattered with this post
Flag Thu Jul 6, 2017
My dream just shattered with this post
Flag Thu Jul 6, 2017
tjbrenna, Home Buyer, Yorba Linda, CA
Wed May 18, 2016
So Cal is an inheritance state. I have met more people than depend on portions of their income coming from inheritance, trusts and gifting. I see multi-generations under the same roof, etc.. Many of which do not have to save for retirement or just put it off. Foreigners are flooding the R.E. market because the U.S. is a safe haven for their cash where in their own countries many socialist or communist, their money is not safe.

Also it is a very materialistic state. Many come here to re-invent themselves and the superficial materialism is a part of that. They live for today and credit is a way of life for many.

My wife moved here from Chciago 3 years ago and were approved for a home loan 5x my salary. Doesn't mean we can afford it. We save over 1k a month renting vs owning. We are not about to give away a 20 % down payment we will never see again, especially in this economy. Even if a Cal home doubled it's value in 20 years what you could save and invest in markets (say the S&P 500) would have you breaking even. There are plenty of calculators out there to support this theory.

The majority of Midwesterners have a conservative approach to finances and I would save the majority of So Cal natives don't.
2 votes
yeah we also know how cheesy and corny you fat Midwesterners are. The evidence of that is the plethora of tourists in San Diego. Having lived in S.D for 12 years we are ready to take our combined, well deserved inheritance sell our primary and secondary and move North of LA, close to Santa Barbara to have LA to go down to for fun. If the super tacky tourists, mid western and southern red neck transplants didn't come to San Diego it would represent the rest of California.
Flag Mon Jun 27, 2016
My wife and I... sorry.
Flag Wed May 18, 2016
Robert Chome…, , San Diego, CA
Sun May 26, 2013
Really expensive places like Los Angeles (better parts), Orange County, San Francisco, New York City, Boston and international cities like London, Hong Kong, Tokyo, etc... always have very high percentages of renters. Many upper middle class white collar workers actually rent because it is too expensive to buy. So it will always seem confusing how normal people can afford to buy in these places, because many don't buy. Or the ones that do buy, commit a much larger percentage of their monthly income towards housing then most of the rest of the U.S. Also, although the median income may not be as high as you think, there are more "super high" income earners at the top of the scale in these areas than say the Midwest, South, etc...

Artificially low interest rates, low inventory (due to new restrictive foreclosure policies and cost and difficulty to build new) and prop 13 also keep California home prices artificially propped up higher then they should be.
2 votes
Sona Gallatin, Agent, Santa Clarita, CA
Tue Jan 8, 2013
Buying in Los Angeles really depends on the area. Having family who live in Texas I can understand the price shock and what you get for that price...
Lets just say for the sake of answering your question, a buyer using 3.5% down on a house priced at 700k would be looking at a payment of around 4,100 per month est. To qualify for a loan, this hypothetical buyer would need to bring home at least 10k a month. Other agents may disagree with my math and that's fine, but I guide buyers with a conservative route towards their purchase so that they are not merely working to keep up with payments.
Now I would recommend expanding the area you are looking in. Depending on where you work there are some really great options at that price range that won't leave you feeling like your getting a dump.

Good luck and happy house hunting!
http://www.gallatingroup.net
2 votes
Alyssa Fry, Agent, Studio City, CA
Mon Jan 7, 2013
I totally agree with you! Unfortunately, as California and the Los Angeles area is an overpopulated yet popular area due to proximity to jobs, closeness to Hollywood, the ocean, entertainment, and the general weather here in California, many homes go for much more than they do in other parts of the country. I am from the midwest so I understand what you are saying. I could buy a much larger home in Indiana - near the Lake, for a fraction of what would be spent out here for a smaller home.

As far how much the average home buyer in L.A. makes and their occupations - I would have to Google that but much of the higher end jobs are executives, self employed, film related - whether it is acting, production, etc and technology jobs - from website/internet design to game creation as well as Government contract for engineers for military equipment etc. Granted, this is just a rough summary but it gives an idea.

If you are currently living in the immediate Los Angeles area you may want to consider looking into San Fernando Valley area. You will have to contend with the commute, but you may be able to find a more affordable home that can suit your needs. In actuality, your combined income and lack of debt puts you high above most California residents. It is a very different lifestyle here and way of thinking in regards to money compared to most of the U.S. I'm still getting used to it after 20 years.
2 votes
does 303 lakeridge rd 76108 lakeside tx home have a view through the sliding glassdoor into the sunroom
Flag Wed Jul 6, 2016
Angelica Fast…, Renter, Dallas, TX
Thu May 25, 2017
Similar situation here. Husband and I (38 and 35)moved to LA from Texas . We looked for about a year and finally found one in a nice neighborhood, 3 months ago. We paid 775k . The key for us was that we have no debt and Put 30% down. Combined we both make $260k Additionally, we did our research , hubby even made a cool spreadsheet with amortization costs, taxes , insurance etc etc . Just save money for down payment, get rid of debt and be realistic about what can you afford .
1 vote
Jarrod, Home Seller, Fort Worth, TX
Tue May 10, 2016
Welcome to SoCal, where the salary and housing prices do not match.
1 vote
ValleyITGuy, Home Owner, Los Angeles, CA
Mon May 18, 2015
You don't NEED to buy a 700K house in LA. It sounds like you WANT to live in a 700k house. It's hardly impossible to find a house in LA for less than 700k.

I live in LA (Lake Balboa specifically... ok it's technically Van Nuys, lol). I purchased my first house in 2007/2008ish for 325K. It's a smaller 2BD 1BA and the lot is just under 7000sqft. Our household income is around 150K (32 & 29 years old). We live very comfortably with two dogs, no kids, 2 cars, weekly gardener, cable internet/tv, etc.

Would I like to be able to get a 700K house? Sure. But right now that is above our means. I'm not saying that it's impossible, but we travel a lot, and would lose out on seeing the world.

Our neighborhood is decent. A few of the homeowners have been there for >20 years. Sure, it's not West LA or Santa Monica, but living in the San Fernando Valley isn't bad. We chose to live relatively close to our work, instead of doing a long haul commute and putting miles on the cars.

Occupations - IT Professional & Advertising
1 vote
Sorry but the market is extremely different now vs. in 2007. In the last 5 years its jumped by huge numbers. Your experience is not applicable anymore.
Flag Sat May 13, 2017
Hahahaha! I've been living in the same neighborhood for 16 years, waiting for something to open up reasonably. I'm a software engineer. Make $150K, have $100K in cash. I couldn't and wouldn't buy the crappy 2 bed, 1 bath 900sf on 3000sf lot with no garage down the street. I'm supposed to be thankful for that BS?
Flag Mon Apr 4, 2016
yeah but that 325 k house would be worth a heck of a lot more now than in 2007, so that is what the OP is having problems with. Current costs.
Flag Sun Jul 19, 2015
champlainmon…, Home Owner, Los Angeles, CA
Sun May 26, 2013
There are no Dick and Jane Home buyers. There are only renters and in those in foreclosure. The people you see buying 700k 900 sq. foot dumpy homes from the 1920’s are Real Estate investors.

In the outlying burbs of LA, you can see the meltdown. New homes going up for 600K, and others around it for sale/foreclosure/repo’d/quick sale for 375k….you know someone is taking a butt kicking. But idiots keep buying!

If you make 200k a year, get a house WAY out and commute. Or, rent.
1 vote
People need to adjust their expectations when moving to a dense, desirable urban area.

You're not going to be able to afford some Texas sized house in any decent area unless you have millions to spend. I've been fortunate (I inherited money) and have owned 3 different houses in CA. They were all in fairly nice areas and they were all expensive.

My 2c. Change your mindset. You don't need to live in some 2500 square foot box with 12 rooms. Find an area you love to be and that's close to where you work. It's probably gonna be expensive. Then determine the absolute smallest living area you need and calculate if you can buy. Otherwise rent.

I love old houses. I currently own a 1920 Craftsman. It's 3 bed/1 ba, 1200 sq feet. It has a ton of character. A family of 8 used to live in it some 40 yrs ago. It's plenty big for my small family of 4. You don't need a bathroom and bedroom for every person and big rooms to fill with crap you don't need.
Flag Mon Oct 16, 2017
Veronica: Thanks to you an your husband for your service. IMO you deserve a lot better than you are getting. The biggest problem with a free economy coupled with high taxes, is keeping up. There's nothing fair about it, unless a
person thinks everyone being run over and buried indiscriminately is fair.

Most people in CA or any other high cost of living location make it by: living a lower than average standard - spending lots less on everything but food. When they get hit by out of pocket medical bills, they're sunk.

Congress has chosen to ignore this, just like they ignored the problems of the VA, and Medicare fraud.

Why do you think a sane person would run for political office in the USA which
theoretically pays them less than they could make in private jobs? Because they make so much more under the table, and they get a salary, medical, and retirement benefit WE don't get! As corrupted as the system is, I still love this
country, and hope one day you will again too.
Flag Thu Dec 4, 2014
My husband and I have been married for 33 yrs. We both have college educations and we have never made over $70K gross together. Now I am completly disabled and expected to live on $25K a year according to our USA government. We have one daughter and I can only buy clothes at goodwill for myself. We have worked hard our entire lives and always paid our bills and when I got chroically ill with Cardiac problems the medical bills financially bankrupt us with FULL COVERAGE Medical Insurance. The USA has not been very nice to us. Our home is not paid for and will not be until we are dead and gone. When we die the bank will take our home back and every dime invested will go back to the bank leaving NOTHING for our daughter. We are both Gulf War Veterans and I hate this damn country!!!!
Flag Sat Oct 25, 2014
Wow, 200K a year, I could only dream about such an income. I live in the middle of nowhere in South Carolina and my income is around 30k a year. Small houses in SC outside of a city can be bought for as little as $5k to $25k or more. No kidding. Let's revert the globalization back to localization and stop spraying those nasty chemtrails in the sky.
Flag Sun Mar 9, 2014
Wow, 200K a year, I could only dream about such an income. I live in the middle of nowhere in South Carolina and my income is around 30k a year. Small houses in SC outside of a city can be bought for as little as $5k to $25k or more. No kidding. Let's revert the globalization back to localization and stop spraying those nasty chemtrails in the sky.
Flag Sun Mar 9, 2014
Awesome. Great way to put it. I know I want to buy out there someday but I don't expect to be the average family either and it does indeed suck for those average families but that's why areas like Austin and Texas and other areas are getting an influx of new residents, and there are so many Californians there it's not even funny. If you can make it in California or New York you can make it anywhere. This girl describing her childhood and going to school in Santa Barbara, etc., was definitely spoiled and she just now is realizing how nice she had it growing up. Also, though, cities are polarizing and the best are getting better and more exclusive while the worst are turning into ghost towns. You can't make it anymore if you live in a small town and upgrading is too humble of an experience so it definitely helps to have rich parents that can provide guidance and extra funding, which it sounds like she probably has access to anyway. I sadly don't have the luxury of having her problem, yet
Flag Mon Sep 30, 2013
Ron Escobar -…, Agent, Beverly Hills, CA
Sun May 26, 2013
Lisa,
It seems like you do not like the answers and you are shooting the messengers. There is no secret. You want to live in a beach community in California, you gotta be loaded. You do not have money, then maybe you want to try renting (though is still very expensive).

Ron
1 vote
At the moment renting is totally unaffordable unless youve been in a rent controlledplace for 15 years plus...
Flag Sun May 28, 2017
No, I didnt mean to come off that way. I'm really just homesick. I've been pretty lucky (or spoiled) growing up in Cerritos, going to school in Santa Barbara, then living in Belmont shore and Scripps Ranch in San Diego. I'm just looking to get home. With bonuses, he make close to 750 and its crazy that we can't afford CA.
Flag Sun May 26, 2013
Lisa, Home Owner, 20112
Sun May 26, 2013
Okay so all of those agent responses sucked. I am a native CA who has been in VA for 10 years. I desperately want to move home and realize how expensive it will be to go home. I want to ask my friends how they afford it.

In Va our home is on 5 acres, 6000 sq ft home, it's with about 950 now. Our mtg is 3500 and my dh makes over 500k per year. we have 6 kids and 2 dogs . I've lived in San Diego, OC and Santa Barbara. We can't afford to move. I'd love to live in Santa Barbara but a home with no land and 1/3 the size of my current home is 1.4 million. If we move down south, I'd only want to live in Seal Beach, Hermosa...small beach communities.

So, I wish real people with real situations would answer your question as well. Seems as if the only options are to live pay check to pay check or rent. Neither of these options seem viable to me. But who knows I am desperate. And perhaps that is the key... Once you've lived in California, you never want to leave and that makes up for everything else.
1 vote
I would buy a mobile home on the beach... you wont own the land but your at the beach and pay no taxes
Flag Tue Feb 14, 2017
Lisa, thanks for having the opinion of a rich person. It seems that the problem for the increase in wealth is the increased desire to want what you can't have, which is probably just barely out of your reach but to everyone else it is a dream come true. $500K is nothing to laugh at, especially for a single-earner income. I take it your husband owns his own business or is a high-level executive of some sort?
Flag Mon Sep 30, 2013
julieleekimu…, Home Buyer, Los Angeles, CA
Fri Mar 1, 2013
I feel your pain, and I have lived in the LA County my entire life (I’m 44). My husband and I just sold my old townhome and it’s a great market to sell right now. But we want to take this money and buy a single family residence in the 1800 to 2000 sq ft range in a nice part of the San Gabriel Valley with a sale price max of $775k (we plan to rent out our current townhouse because we can’t sell it since we’re still upside down on it). However, the homes that we are seeing right now in this price range do not meet our standards. I think we will sit on our $230k to $250k down payment for much of this year to see if things become more reasonable because these prices seem commensurate to what prices were at the height of the housing bubble a few years ago. I don’t want to get caught up in that frenzy and make another bad decision.

I see that the responses you got all came from realtors and I was hoping to see more feedback from real buyers. I’m afraid there wasn’t anything very useful in the feedback I saw. But don’t let the negativity from some accusing you of not doing your homework affect you. This market has changed drastically within the past few months and even professional realtors are surprised by this hot market. And I’m sure you already knew ahead of time that the standard of living in Southern California is vastly different than Texas before you moved. I wish us both luck in home buying search!
1 vote
There are always cycles. Its tempting to get nervous and try to buy now but yes we are in a 10 year high right now.
Flag Sat May 13, 2017
Julieleekimu Take your down payment and pay off/down your townhouse. Are you insane?
Flag Tue Apr 18, 2017
Melvin A. Ca…, , Los Angeles, CA
Mon Jan 7, 2013
move an hour away from los angeles to victorville,riverside ,palmdale am sure you will find a 3500 sq feet home in any of those cities for about 250k ,call me I will email you a list of properties .

Melvin Castro
310 930 6572
1 vote
Maria Kimbro, Home Buyer, Cedar Rapids, IA
Thu Oct 26, 2017
50 year mortgages. Yes, they exist. Especially in California and other states in NW Pacific like Washington.
0 votes
Maria Kimbro, Home Buyer, Cedar Rapids, IA
Thu Oct 26, 2017
50 YEAR MORTGAGES. Yes, they exist. People neglect to mention that nugget of information.
0 votes
Juan Julio E…, Agent, Lincolnwood, IL
Sun Sep 3, 2017
I ask myself that same question every day. How in the world are people affording these homes around me. 1200 square feet 3 bedrooms with 1 and a half baths outdated going for 800k now. We've been here almost two years. Our income is between 250 to 300k. We can't afford to buy. Or maybe I should say we won't buy. I refuse to see half of our income go to paying for a piece of crap with a view of power lines and shabby palm trees. So, we rent and pay a hell of a lot. Moving here was a big mistake. Should have arrived twenty years earlier maybe. I feel for the people who were raised here and have family and roots here.
0 votes
Adrianrod7, Home Buyer, Los Angeles, CA
Fri Aug 18, 2017
The market is over-inflated due to Chinese cash buyers. I'm a real estate agent and see this every day. They don't live in this country but buy for investment purposes or to hold on to the home for a child, hoping they go to college in the USA, or for renting out.
0 votes
Kingairdrive…, Home Buyer, Los Angeles, CA
Tue Jul 25, 2017
There are programs available where the bank will invest a significant portion of the purchase price in exchange for an equal split of the equity. I hear these programs are getting more and more popular for obvious reasons. Take a 900k home, if someone, like a bank, agrees to put up $450,000 and you put up the same and split the equity when you sell, then you can see how it may be possible to live in that almost 1 million dollar home. The only downside I hear of is they require you to pay the property taxes and insurance. Sure you don't get full equity gain, but you do get 1/2 of it and in this price range, that is probably still significant.
0 votes
Californiaha…, Home Buyer, San Diego, CA
Thu Jul 6, 2017
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0 votes
Dome, Home Buyer, Los Angeles, CA
Thu Jun 15, 2017
Don't move to comiefornia. Prices are too damn high and they hate guns.
0 votes
Angelica Fast…, Renter, Dallas, TX
Thu May 25, 2017
Well , similar situation here. My husband and I (38 and 35)moved from Texas to LA and looked for a home for about a year . We found one in a nice neighborhood few months ago. We paid 775k , combined we make 260k a year and have no debt(0ther than our new mortgage) , the key for us was that we put down 30%/241k and really did our research. Hubby even made a cool spreadsheet with amortization costs, interest, taxes etc etc. It is Doable just be smart about it and try to save money .
0 votes
v_nunnemaker, Home Buyer, Chico, CA
Mon Apr 24, 2017
Move to Northern California. Anywhere about an hour north of San Francisco.

Conservative values.
Reasonable home prices.
Same great weather,

I live on 6 acres with a custom built 3BR/3BA home with a 3 car garage in the woods that I bought for $351K.

My wife stays at home to raise our kids and I bring home $110K per year.

Mortgage is $1600 with taxes and insurance impounded.

Plenty of money to travel and plenty of great places to play around here:

Calistoga Mud Baths
Bodega Head for beach combing
Mendocino for Coastal relaxation
San Francisco an hour and a half away for Arts/Concerts/Museums/Broadway
Costco within 15 miles as well as In-and-Out Burger

Just saying, not so bad up here and we tend to have all the water in the dry seasons (not that I have a lawn, but still)

Come north of the Bay and enjoy life again.
0 votes
v_nunnemaker, Home Buyer, Chico, CA
Mon Apr 24, 2017
Move to Northern California. Anywhere about an hour north of San Francisco.

Conservative values.
Reasonable home prices.
Same great weather,

I live on 6 acres with a custom built 3BR/3BA home with a 3 car garage in the woods that I bought for $351K.

My wife stays at home to raise our kids and I bring home $110K per year.

Mortgage is $1600 with taxes and insurance impounded.

Plenty of money to travel and plenty of great places to play around here:

Calistoga Mud Baths
Bodega Head for beach combing
Mendocino for Coastal relaxation
San Francisco an hour and a half away for Arts/Concerts/Museums/Broadway
Costco within 15 miles as well as In-and-Out Burger

Just saying, not so bad up here and we tend to have all the water in the dry seasons (not that I have a lawn, but still)

Come north of the Bay and enjoy life again.
0 votes
Feshair, Home Buyer, New York, NY
Mon Feb 27, 2017
Grew up in Cal, Homestead HS, went to school with Steve Jobs. I lived in Cupertino, my parents purchased the 3 2b 1500sf house in Cupertino 1968, 160k, today 10446 Anson Ave is worth 2m. A trend was started back then 1974, Condos in Lake Tahoe then were 30k, Today 2m. Know why, They passed laws to stop the building of new homes. Building Moratoriums, Lake Tahoe today looks almost just like it did in 1975. Cities are all about protecting the values by limiting new construction. People object like crazy if a housing project is planed. They refuse most any housing projects. Unless its like 10 homes on acre lots for 2+m each. This few and $ type of housing will not hurt their values but still even big dollar homes to many are not allowed to be built. Apartments forget it!!! "We don't want poor people here". Its not like there is not plenty of land, they (locals) just will not allow building "buffer zones they call them" The supply of homes is limited by the current residents. Cities refuse to allow for growth. Now decades behind need... You don't see any developments of hundreds of new homes any where good to live. Out in the desert Palmdale where LA county moves all the section 8 people "the Poor". 120 in the summer. 2 hours to and from work each day.. Yea there is affordable housing. lol... Not next door to me, no new homes! Protect the environment. Code for keep out the little people , I don't want them next to me on the beach. California is reserved for the global rich and only the needed supporting cast. Everybody who makes a buck lives here. Its an awesome place to live is why. Surf to snow ski same day. Rents and real-estate will continue to climb as long as people are making a buck somewhere. Oh I rent 1/2 a house in Simi Valley $1200 + util and have 2 roommates, I'm 61 and clear 1k a week as an IT professional.. No my parents never left a dime or a house, lol
0 votes
Dav3, Home Buyer, Los Angeles, CA
Sat Feb 11, 2017
Pretty simple...the banks in California will do 50yr loans.
0 votes
seriously?
Flag Sun May 28, 2017
Jdrobinson81, Home Buyer, Los Angeles, CA
Tue Jan 10, 2017
Making 200K, you should have zero problems with a 750K home, assuming you have saved the 20% down-payment (150K). I have an income just north of 100K and recently bought a home for 650K with 20% down. You should have a breeze with the lender.
0 votes
Jdrobinson81, Home Buyer, Los Angeles, CA
Tue Jan 10, 2017
Making 200K, you should have zero problems with a 750K home, assuming you have saved the 20% down-payment (150K). I have an income just north of 100K and recently bought a home for 650K with 20% down. You should have a breeze with the lender.
0 votes
Kirsten Yi, , Orange County Great Park, Irvine, CA
Mon Jan 9, 2017
Many times people can afford these houses through the Loan program that they set up. Making a 200k salary is fantastic. Due to down-payment assist programs, with as low as 3.5% down, you can get an FHA loan. With more than 20% down you can go Conventional and deflect that monthly PMI.
If you have questions on how we can get you into the house of your dreams, give me a call
I am a local lender in the area. Kirsten 949-554-5667
0 votes
Kirsten Yi, , Orange County Great Park, Irvine, CA
Mon Jan 9, 2017
Many times people can afford these houses through the Loan program that they set up. Making a 200k salary is fantastic. Due to down-payment assist programs, with as low as 3.5% down, you can get an FHA loan. With more than 20% down you can go Conventional and deflect that monthly PMI.
If you have questions on how we can get you into the house of your dreams, give me a call
I am a local lender in the area. Kirsten 949-554-5667
0 votes
, ,
Sun Jan 8, 2017
There are still many cities that you can buy and pay less than rent in Los Angeles. The rents as well as home prices are rising and the interest rates too. If you are going to buy, now is the time.

Your qualifications will be determined by your credit profile, debt to income ratios, fico scores, loan program and how much you want to invest into the down payment and closing costs. Your fico scores can be raised within 3-4 days in most cases to qualify for programs, rates and terms as necessary.

You may qualify FHA from fico scores between 500-579 with 10% down or minimum 580 fico score may qualify FHA 3.5% down up to 417k. You may consider 3% down conventional from a minimum 620 fico score or even 5% down conventional with NO Mortgage insurance (Lender paid MI) up to 417k.

You may consider 5% down Jumbo with a minimum 720 fico score from 417k up to 1.5 million and 10% down from a minimum 680 fico score and up to 2.5 million. You will need 20% down to purchase over 2.5 million.

You will need to be pre-approved to be able to meet an agent to view and submit offers on homes of your choice. You will need to gather one month paystubs, two month bank statements, last two year tax returns including 1040s, 1099s, W2s and all schedules and copies of your drivers license or ID and social security cards for each applicant.

For those looking below 435k price range you could consider a down payment assistance program such as CalHFA or Sapphire Grant which can cover your down payment and closing costs. You may close with minimal out of pocket expenses. You may consider the CalHFA from a minimum 640 fico score and the Sapphire Grant from a minimum 620 fico score up to 417k.

If you figure out what cities/zip codes you are considering, minimum number of bedrooms and the maximum payment/price you are looking to achieve any agent can email listings to fit your search criteria. Your email address is needed to set you up for the automatic daily updates.

Sheryl Arndt, Real Estate Broker - Sr. Loan Officer CA only
Veteran & VA/CalVet Loan Specialist
REO & Short Sale Specialist
Credit Repair At No Cost
ALL Loan Programs Available
24+ Years Experience
BRE# 01140252
NMLS# 297251
0 votes
I am a lender in Texas and have NEVER heard of a jumbo lender that will do $1.5MM loan with 5% down. What in the world??!! No wonder California is in such trouble.
Flag Wed Mar 15, 2017
Spacen6, Home Buyer, New York, NY
Sun Dec 4, 2016
How can people afford $700k HOUSES in Los Angeles in 2017
0 votes
Gggillign, Home Buyer, New York, NY
Sun Nov 13, 2016
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0 votes
FBI Internet Fraud Division http://www.ic3.gov/default.aspx
Flag Sun Jan 8, 2017
Gcip4life, Home Buyer, Los Angeles, CA
Sat Oct 1, 2016
Remember people pay for what they don't know, so getting your education is very important in California. And while you are getting your education don't stuck in a single lane because this is the land of opportunity, especially in Real Estate...

I didn't realize that I really never need money or credit until I ran into this company (http://cipgroup.biz) who has help me whole bunch on my property development projects. Their website walked me through process from beginning of fixer up to the end of flipper out.

Out here it's not always what you know to earn a six figure income, most of the time with or without your education, it's WHO you know. Keep this mind, "YOUR NETWORK = YOUR WORTH" ! ! ! So, make connect with the best of the best and allow God to continue lead your path to success...

Bizzy Bob
0 votes
Jareandaleja…, Home Buyer, New York, NY
Mon Jun 27, 2016
Posts like these are entertaining to read, in which they always reassure that our position in life is much appreciated.
0 votes
Jareandaleja…, Home Buyer, New York, NY
Mon Jun 27, 2016
Posts like these are entertaining to read, in which they always reassure that our position in life is much appreciated.
0 votes
Playapatrol, Home Buyer, Los Angeles, CA
Sun May 22, 2016
They put 30% down, have tenants and make big payments. Or the look in crappy suburbs like the san fernando valey. You are a carpetbagger from out of state. You are driving up my home prices. Go back to Texas.
0 votes
Ponyvillalob…, Home Buyer, Los Angeles, CA
Sat Apr 2, 2016
We make 250k a year and cannot afford a house in LA because we don't have a 20% down payment saved. The only people I know that have been able to buy a house in LA have been gifted a lot of money from parents or grandparents
0 votes
You may consider 5% down Jumbo with a minimum 720 fico score from 417k up to 1.5 million and 10% down from a minimum 680 fico score and up to 2.5 million. You will need 20% down to purchase over 2.5 million.
Your qualifications will be determined by your credit profile, debt to income ratios, fico scores, loan program and how much you want to invest into the down payment and closing costs. Your fico scores can be raised within 3-4 days in most cases to qualify for programs, rates and terms as necessary.
Sheryl Arndt, Real Estate Broker - Sr. Loan Officer CA only
ALL Loan Programs Available
24+ Years Experience
BRE# 01140252
NMLS# 297251
Flag Sun Jan 8, 2017
fha doesnt require 20% down. If you cant save money on $250k then you are grossly overspending
Flag Sun May 22, 2016
There is another way to save up a downpayment, but it takes time and discipline. You will probably have to sacrifice spending in other areas of your life. Your family makes very decent income (really good income by most standards), and I have friends who make less that have been able to afford their own homes. Those homes may not be Beverly Hills mansions or as big or located in their favorite neighborhood, but you have to make trade-offs and make the best of what you've got. Good luck!
Flag Thu Apr 21, 2016
Sengerdeblynn, Home Buyer, Lake Elsinore, CA
Wed Feb 17, 2016
1) put more than 20 percent down to lower your payments,
2) get a new realtor
3) have your new realtor pre-qualify you to see what your monthly mortgage, insurance and property taxes should be at $700,000 or less.
4) At $200,000 annual gross, you should be able to afford a ranch with a newer house, acres of land, and outbuildings plus a fruit orchard!
5) perhaps the problem is in your price per square foot, check other locations for a better price per square foot deal?
0 votes
Horrible advice and untrue. Do not listen to that post. Put more down was classic? How on earth does that take away the fact that CA is the worst state to own a home? It doesn't you still overpaying for what you get. Think about what he just said. This is the classic mindset from people with zero financial intelligence.
Flag Fri Feb 19, 2016
Twestend1, Home Buyer, Los Angeles, CA
Fri Jan 15, 2016
Hello, I hope you get a real world answer to your question. I live an area where you can get a nice house for $200,000. But, I see a lot of the average houses in California are $700,000, or $1 million plus. I have always wondered where do these people get the down payment. I have a counter part who woks at the same position at the same company I do in California, and he has purchased a $700,000 house. I want to ask him so bad where does he get a possible $140,000 down payment, and how does he afford the monthly payments. Do people in California have magic money, or what? Please give just a real world answer.
0 votes
They probably bought a home in 2002-2003 when prices were like 50% of what they are now and they sold/flipped and used the profit for down payment. Or they inherited that money. Also people that make over 100k usually have a lot in student loans (doctors, lawyers,etc). So making 200 or 250 k a year but owing 350 k in Med school loans makes you middle class especially in so cal
Flag Sun Feb 5, 2017
I should also mention, there are a lot of people that bought their homes a long time ago and couldn't afford to buy their homes at todays prices. In the not to distant future a large number of those people will start moving or passing on. This will put downward pressure on home prices, because instead of a shortage there will be a glut of homes. It could be years though before you start to see house prices in places like San Diego start to turn around.
Flag Wed Apr 27, 2016
There are a lot of very financially stressed people in Southern California. Yes, there are a lot of wealthy people in that region, but not as many as some posting on here would have you believe. Not enough anyways to cover all the million dollar average homes. Several years down the road expect another housing crash. A couple years ago I bought a luxury vehicle that had been a factory financed repo. Where do you think it came from? Southern California of course. A few weeks ago I was talking to a relative down there that mentioned a lot of the guys that work for him are getting in over there heads on houses and vehicles.
Flag Tue Apr 26, 2016
Daniel Casti…, Agent, Los Angeles, CA
Tue Jan 12, 2016
Hi,


There are many other areas in and near Los Angeles that go for around 500K +, still good areas,

I would be happy to work you. Please feel free to contact me anytime
if you have questions.
0 votes
Susie Kay, Agent, Dallas, TX
Mon Jan 11, 2016
If you are planning to relocate back to Texas then give me a call. Here in DFW, we are growing like crazy with many employers moving into the area. You can get a nice home for half the price of LA and wages/salary in Texas is most likely slightly lower than LA. I used to live in California and I know the housing market in certain parts of California can be crazy but there are areas that are not extremely expensive, either, that is, if you are willing to perhaps commute further to work.
0 votes
Spacemindsta…, Home Buyer, Los Angeles, CA
Fri Jan 8, 2016
Can I please have my house.
0 votes
Matthew, Home Buyer, North Port, FL
Fri Nov 20, 2015
off set hosue payment with rental we have 2 family (that I own) in pasadena. great schools, totally updated
buy the house ~ 900k and rent the guest house which goes for 2200 with todays interest rate that makes affordable


matthew duffield 248.778.7072
0 votes
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