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cost of housing

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Depends on a lot of things.
People are willing to pay more to be in certain areas.
Areas with higher housing prices generally have higher salaries. Although sometimes it's not enough higher to make it affordable.

I still don't know how so many people can afford to live in the bay area.
Even when the tech market was good, the difference in salary wasn't nearly enough to make up for the difference in housing costs.
I make around 50 and bought a new 3bdr for 145k.
Even if I could make 80k in the bay area (which is doubtful), there is no way I could afford to buy even a tiny old crappy house for 450k.
 
Originally posted by: Shanti
Depends on a lot of things.
People are willing to pay more to be in certain areas.
Areas with higher housing prices generally have higher salaries. Although sometimes it's not enough higher to make it affordable.

I still don't know how so many people can afford to live in the bay area.
Even when the tech market was good, the difference in salary wasn't nearly enough to make up for the difference in housing costs.
I make around 50 and bought a new 3bdr for 145k.
Even if I could make 80k in the bay area (which is doubtful), there is no way I could afford to buy even a tiny old crappy house for 450k.
Click to expand...

Not true..Pittsburg ca is pretty cheap.. and 450K is only $2,500 mo with a vanilla fixed rate 30 yr right now... You're making 80K would be $6,600 a month... no problem..
 
I'm shopping for mine out in the country. It will be worth the longer commute to save money on the house for one, have more property for two, and not be near so many damn people for three. 🙂 Still the house prices here suck, but it's a nice temperate climate.
 
weather is great year round, no need for heat or ac in home, friendly people, no snakes, outdoor sports, surrounded by ocean and some of the world's best beaches...

yeah, i'll pay more
 
Not true..Pittsburg ca is pretty cheap.. and 450K is only $2,500 mo with a vanilla fixed rate 30 yr right now... You're making 80K would be $6,600 a month... no problem..
Click to expand...

Nice fuzzy math.

$410k(40k down payment @ 6% interest) is $2458 a month. Now, figure in PMI for another $100-$150 a month, property taxes which could easily be in the $5,000 range(so another $416 a month), and homeowners insurance which could easily be $1000 a year($83 more).

That $2500 payment is now around $3100.

Now, with your 80k salary, figure you'll easily loose 1/3 of it for taxes & medical insurance so your $6,600 a month is now $4,400 a month.

I don't think somebody making $4,400 a month can really swing a $3100 a month house payment.

 
Originally posted by: vi_edit
Not true..Pittsburg ca is pretty cheap.. and 450K is only $2,500 mo with a vanilla fixed rate 30 yr right now... You're making 80K would be $6,600 a month... no problem..
Click to expand...

Nice fuzzy math.

$410k(40k down payment @ 6% interest) is $2458 a month. Now, figure in PMI for another $100-$150 a month, property taxes which could easily be in the $5,000 range(so another $416 a month), and homeowners insurance which could easily be $1000 a month($83 more).

That $2500 payment is now around $3100.

Now, with your 80k salary, figure you'll easily loose 1/3 of it for taxes & medical insurance so your $6,600 a month is now $4,400 a month.

I don't think somebody making $4,400 a month can really swing a $3100 a month house payment.
Click to expand...
??
You're not taxed in the intrest or taxes so fiqure income-$2500.. Then I included 20% down so no PMI...You may need to rework your calcs...no?
 
You're not taxed in the intrest so fiqure income-$2500.. Then I included 20% down so no PMI...You may need to rework your calcs...no?
Click to expand...

Even at 360k @ 6% you're payments are $2158 a month...just in P&I. So you save $300 a month there, plus the $150 in PMI. You're still looking at ~$2700 a month in payments (and out $90k from the 20% down).

And I don't care about the interest deduction. You don't see that until the end of the year. You still owe $2600-$2700 a month, and are still only bringing in ~$4400 a month. That's 60% of monthly income.

Not smart IMHO.
 
Originally posted by: Zebo
property taxes which could easily be in the $5,000 range
Click to expand...

No it could'nt. Property taxes in CA are capped at 1% of purchase price.
Click to expand...

Ahh, see I didn't know that. In many states here in the midwest, a $300k house in a nice neighborhood will be looking at $4000-$6000 in property taxes.

[EDIT] I'm sure they still get you one way or another whether that be in income tax or sales tax. They make up their money on you someway.

Or else you just have a 3 billion dollar deficit.
 
Originally posted by: vi_edit
You're not taxed in the intrest so fiqure income-$2500.. Then I included 20% down so no PMI...You may need to rework your calcs...no?
Click to expand...

Even at 360k @ 6% you're payments are $2158 a month...just in P&I. So you save $300 a month there, plus the $150 in PMI. You're still looking at ~$2700 a month in payments (and out $90k from the 20% down).

And I don't care about the interest deduction. You don't see that until the end of the year. You still owe $2600-$2700 a month, and are still only bringing in ~$4400 a month. That's 60% of monthly income.

Not smart IMHO.
Click to expand...

You can put 9 on your withholding without proof, without raising eyebrows.....which I believe only knocks 6600 down to 5200..Then you'd still get a return... My sis lives in a 750K house works in bay and only pulls ~95 as a state pshychologist... It's not smart... But what she's to do?
 
Originally posted by: Zebo
property taxes which could easily be in the $5,000 range
Click to expand...

No it could'nt. Property taxes in CA are capped at 1% of purchase price.
Click to expand...
So someone living in the same house for 30 years would still be paying 1% of their original purchase price in taxes??

I'd kill for a deal like that!!

 
But what she's to do?
Click to expand...

I would have said go see a pshychologist....but...😕

I kidding of course...but I just can't possibly fathom what would compel somebody to stay in an area that required you to stretch yourself so thin.

The only thing I can possibly think of is to somehow keep your head above water for 20 unpleasant years and then hopefully pawn off your house and whisk yourself away to some place that is dirt cheap to live and live off of the capital gains (after taxes) of your home sale.
 
Proposition somethingsomething, even warren buffet wants to repeal it and he's arnold's economic advisor

nonetheless, my parents bought a house in SJ back in 96 for $300k and just sold it last year for $550k, that's a quarter million in profit... although offset by a quarter million losses in stock....

but our house value peaked in 2000 when it coulda sold for $650k and its not even a large house, you could buy 5 houses in TX that are larger than it for that money. now i'm stuck in la jolla thanks to UCSD (highest housing costs in US, avg $1.3 million enuff to buy 10 houses anywhere else...)

must be the beaches and the pandas...
 
Originally posted by: Zebo
Originally posted by: vi_edit
Not true..Pittsburg ca is pretty cheap.. and 450K is only $2,500 mo with a vanilla fixed rate 30 yr right now... You're making 80K would be $6,600 a month... no problem..
Click to expand...

Nice fuzzy math.

$410k(40k down payment @ 6% interest) is $2458 a month. Now, figure in PMI for another $100-$150 a month, property taxes which could easily be in the $5,000 range(so another $416 a month), and homeowners insurance which could easily be $1000 a month($83 more).

That $2500 payment is now around $3100.

Now, with your 80k salary, figure you'll easily loose 1/3 of it for taxes & medical insurance so your $6,600 a month is now $4,400 a month.

I don't think somebody making $4,400 a month can really swing a $3100 a month house payment.
Click to expand...
??
You're not taxed in the intrest or taxes so fiqure income-$2500.. Then I included 20% down so no PMI...You may need to rework your calcs...no?
Click to expand...

a guy making 80k can very reasonably afford a 300K house, IMO 450K is insane, he/she would be soo strapped for cash.
 
Originally posted by: Cyberian
Originally posted by: Zebo
property taxes which could easily be in the $5,000 range
Click to expand...

No it could'nt. Property taxes in CA are capped at 1% of purchase price.
Click to expand...
So someone living in the same house for 30 years would still be paying 1% of their original purchase price in taxes??

I'd kill for a deal like that!!
Click to expand...

Before my parents sold thier house they were paying around $600 a year the neighbor who recently bought was paying around $7000....They bought in 66" for around 30K... Yes the rate is a max of 1% calculated at purchase time.. So those guys who bought in the late 70's are still paying the same dollar value as in 1979😀 The idea is with CA's rising propety values old folks on fixed income arn't getting tossed into the street.
 
Originally posted by: Ameesh
Originally posted by: Zebo
Originally posted by: vi_edit
Not true..Pittsburg ca is pretty cheap.. and 450K is only $2,500 mo with a vanilla fixed rate 30 yr right now... You're making 80K would be $6,600 a month... no problem..
Click to expand...

Nice fuzzy math.

$410k(40k down payment @ 6% interest) is $2458 a month. Now, figure in PMI for another $100-$150 a month, property taxes which could easily be in the $5,000 range(so another $416 a month), and homeowners insurance which could easily be $1000 a month($83 more).

That $2500 payment is now around $3100.

Now, with your 80k salary, figure you'll easily loose 1/3 of it for taxes & medical insurance so your $6,600 a month is now $4,400 a month.

I don't think somebody making $4,400 a month can really swing a $3100 a month house payment.
Click to expand...
??
You're not taxed in the intrest or taxes so fiqure income-$2500.. Then I included 20% down so no PMI...You may need to rework your calcs...no?
Click to expand...

a guy making 80k can very reasonably afford a 300K house, IMO 450K is insane, he/she would be soo strapped for cash.
Click to expand...

agreed.
Besides, a 450k house in the bay area would be a piece of crap unless you want to commute at least an hour each way.
I'd much rather make the 50k in Southern Oregon, live in a decent sized brand new house, and be 10 minute drive to work with no traffic.
 
Originally posted by: Shanti
Originally posted by: Ameesh
Originally posted by: Zebo
Originally posted by: vi_edit
Not true..Pittsburg ca is pretty cheap.. and 450K is only $2,500 mo with a vanilla fixed rate 30 yr right now... You're making 80K would be $6,600 a month... no problem..
Click to expand...

Nice fuzzy math.

$410k(40k down payment @ 6% interest) is $2458 a month. Now, figure in PMI for another $100-$150 a month, property taxes which could easily be in the $5,000 range(so another $416 a month), and homeowners insurance which could easily be $1000 a month($83 more).

That $2500 payment is now around $3100.

Now, with your 80k salary, figure you'll easily loose 1/3 of it for taxes & medical insurance so your $6,600 a month is now $4,400 a month.

I don't think somebody making $4,400 a month can really swing a $3100 a month house payment.
Click to expand...
??
You're not taxed in the intrest or taxes so fiqure income-$2500.. Then I included 20% down so no PMI...You may need to rework your calcs...no?
Click to expand...

a guy making 80k can very reasonably afford a 300K house, IMO 450K is insane, he/she would be soo strapped for cash.
Click to expand...

agreed.
Besides, a 450k house in the bay area would be a piece of crap unless you want to commute at least an hour each way.
I'd much rather make the 50k in Southern Oregon, live in a decent sized brand new house, and be 10 minute drive to work with no traffic.
Click to expand...



well i wouldnt agree to that, washington state was a stretch for me to move to, oregon would be terrible, i'd cry and kill myself.
 
The only thing I can possibly think of is to somehow keep your head above water for 20 unpleasant years and then hopefully pawn off your house and whisk yourself away to some place that is dirt cheap to live and live off of the capital gains (after taxes) of your home sale.
Click to expand...

Keep in mind the first 500K of capital gains is tax free due to the 2/5 rule....Thats' what comples them. Better than the stock market latly😛 My parnets loaned (gave is more like it:|) her 250... So it's not so bad...she a nun almost anyway so she saves money.
 
Originally posted by: vi_edit
Originally posted by: Zebo
Southern Oregon
Click to expand...

Most people enjoy sunlight though shanti.
Click to expand...

South Dakota has more sunny days than any other state. And I can live there for next to nothing 🙂
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Ya but you won't see them seeing how the only jobs are underground in a missle silo..😛
 
Ya but you won't see them seeing how the only jobs are underground in a missle silo..
Click to expand...

Actually, Sioux Falls, and Rapid City to a lesser extent are very good markets for jobs. I've got in-laws living in both cities so I've got the inside scoop 🙂
 
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