If I were to move to California ?

three9zero
Posts
1454
Joined
9/26/2010
Location
Kamloops B.C CA
1/31/2019 10:10am
three9zero wrote:
Mountains, lakes, ocean, desert, lush rain forest. Surfing, skiing, snowmobiling,snowboarding, moto, boating, mtn biking.....can do it all in one day. [img]https://p.vitalmx.com/photos/forums/2019/01/30/321968/s1200_bcsatellite.jpg[/img] [img]https://p.vitalmx.com/photos/forums/2019/01/30/321969/s1200_mbritishcolumbia.jpg[/img]
Mountains, lakes, ocean, desert, lush rain forest. Surfing, skiing, snowmobiling,snowboarding, moto, boating, mtn biking.....can do it all in one day.





Bosco wrote:
Man BC is the dream. One of my good friends is moving to Kamloops next year, and I'm very tempted to follow him. It seems like...
Man BC is the dream. One of my good friends is moving to Kamloops next year, and I'm very tempted to follow him. It seems like it has it all!

What the job market like for mechanical engineers?
Lots going on here in Kamloops. Engineering jobs not too sure..I work at ta KTM/Honda/BRP dealer. The New Gold(TECK minerals) and Highland Valley Copper mine, TOLKO sawmills, Domtar pulp mill would be your best bet for that type of job. My family and I just moved here from Calgary 2 years ago and could not be happier...
captmoto
Posts
5804
Joined
4/22/2009
Location
Rancho Cucamonga, CA US
1/31/2019 10:15am
Tarz483 wrote:
Yep i have been broke no matter what state im in lol So may as well be some where nice, i have no idea how people...
Yep i have been broke no matter what state im in lol
So may as well be some where nice, i have no idea how people afford these million dollar houses though.
I wish i could figure it out so i could do it to.
Most of the time it is trading up. First time buyer are kind of fucked here unless they have 2 power incomes to start and a couple hundred grand for a down payment.
2
woodsrider427
Posts
127
Joined
12/11/2014
Location
Wake Forest, NC US
1/31/2019 11:29am
Tarz483 wrote:
Yeah after that long im sure there are days you wouldnt want to do it no matter what it is. I got to the point where...
Yeah after that long im sure there are days you wouldnt want to do it no matter what it is.
I got to the point where i was am seriously not feeling like doing what im doing anymore, selling cars, my goal had been to eventually have my own small dealership. Now i dont think i want that anymore even though i know im capable of doing it successfully. Im just not into it anymore.
I feel like the most important thing anyone could ever teach a kid in this day and age is to focus on getting a career in something that really truly interests you, not just do something for money, But some thing you enjoy thinking about and talking about.
You spend more time working them you spend at home or with your family or friends.
I am trying to help guide my kids through that maze now, one is in college and the other is a junior in high school. The problem is it's so hard to know what you might enjoy when in your 30's and 40's when you are currently 19 years old. I've told them to try and think of something they might enjoy but also something with good income potential, so you can do what hobbies you enjoy on the weekends and vacations.

As much as I don't like what I do sometimes, it give me the opportunity (time and money) to do what I enjoy which makes it way more tolerable. We all know how expensive our hobbies can be.

The Shop

woodsrider427
Posts
127
Joined
12/11/2014
Location
Wake Forest, NC US
1/31/2019 11:40am
mxracer71 wrote:
oh i guarantee it way more then 4k a month for a million dollar house. Here in elsinore my buddys house is right around 450k.His house...
oh i guarantee it way more then 4k a month for a million dollar house. Here in elsinore my buddys house is right around 450k.His house is over the 3k mark and taxes alone you will add another 1k to your house payment. California is f-ing ridiculous to live.
Tarz483 wrote:
Right so how are that many people able to make that much per month?
SteezGeez wrote:
Honestly it's the fact that wages are higher. My wife and I are planning on buying a million dollar home in the next two years. The...
Honestly it's the fact that wages are higher. My wife and I are planning on buying a million dollar home in the next two years. The home we currently have in Orange County cost $550k but with a growing family we need a bigger space. Currently our income combined is about $155k but in two years it will be closer to $185k/year. We estimtate our monthly payments including taxes and insurance on a million dollar home to be about $5,500/ month with 100k down.

If you're wondering what we do my wifes a teacher and gets paid BANK! I'm a CPA but still climbing the ladder of the industry.
To each their own and I would never tell another person what to do with their money, but to me that isn't near enough income to "afford" a million dollar home. We make more than that and would never dream of buying (or building) a home that expensive, have no desire to anyway.

The kids grow and move on so fast, the tight space is so temporary. Of course I am sure where you are the same money doesn't get you as big of a house as it does here, so I can't guess as to how tight it is.

The best thing we ever did was pay off our modest house, I honestly would never get another mortgage again (barring any major emergency). Greatest feeling in the world to be debt free, wish I had done it sooner.
SteezGeez
Posts
200
Joined
12/11/2016
Location
Fullerton, CA US
1/31/2019 12:00pm Edited Date/Time 1/31/2019 12:03pm
Tarz483 wrote:
Right so how are that many people able to make that much per month?
SteezGeez wrote:
Honestly it's the fact that wages are higher. My wife and I are planning on buying a million dollar home in the next two years. The...
Honestly it's the fact that wages are higher. My wife and I are planning on buying a million dollar home in the next two years. The home we currently have in Orange County cost $550k but with a growing family we need a bigger space. Currently our income combined is about $155k but in two years it will be closer to $185k/year. We estimtate our monthly payments including taxes and insurance on a million dollar home to be about $5,500/ month with 100k down.

If you're wondering what we do my wifes a teacher and gets paid BANK! I'm a CPA but still climbing the ladder of the industry.
To each their own and I would never tell another person what to do with their money, but to me that isn't near enough income to...
To each their own and I would never tell another person what to do with their money, but to me that isn't near enough income to "afford" a million dollar home. We make more than that and would never dream of buying (or building) a home that expensive, have no desire to anyway.

The kids grow and move on so fast, the tight space is so temporary. Of course I am sure where you are the same money doesn't get you as big of a house as it does here, so I can't guess as to how tight it is.

The best thing we ever did was pay off our modest house, I honestly would never get another mortgage again (barring any major emergency). Greatest feeling in the world to be debt free, wish I had done it sooner.
Well you're thinking our income level will stay the same. I'm only 26 years old and the pay raises in my industry are huge as you start to climb up. Another thing is you have no idea about what a million buys you in CA, let alone Orange County because it is not much. Our $550k home is 3 bedrooms 1.5 bath 1100sqft and the neighborhood isn't the best. A $1 million home will be about 2500 sqft with 4 beds 2 bath in a nicer neighborhood. We have one child right now and plan on having at least one more. That occupies 3 bedrooms already and I would like to have an office. Honestly that is not a lot. My wife and I would also like to have our own private bathroom.

The average time children live at home till now is also 25, so when you say space is tight for a temporary time I'm looking at the next 25 years. (That's the entire time I've been alive) If a $550k home in CA was in a nice neighborhood that had 4 bed 2 bath I would be happy but it simply is not.

When you think of a million dollar home you're probably thinking of something crazy and lavish where in Orange County CA that home would cost $5 million.
1
SteezGeez
Posts
200
Joined
12/11/2016
Location
Fullerton, CA US
1/31/2019 12:09pm Edited Date/Time 1/31/2019 12:10pm
To each their own and I would never tell another person what to do with their money, but to me that isn't near enough income to...
To each their own and I would never tell another person what to do with their money, but to me that isn't near enough income to "afford" a million dollar home. We make more than that and would never dream of buying (or building) a home that expensive, have no desire to anyway.

The kids grow and move on so fast, the tight space is so temporary. Of course I am sure where you are the same money doesn't get you as big of a house as it does here, so I can't guess as to how tight it is.

The best thing we ever did was pay off our modest house, I honestly would never get another mortgage again (barring any major emergency). Greatest feeling in the world to be debt free, wish I had done it sooner.
Before you continue to say how crazy a million home in CA compare This $1 million home in Fullerton to CA to what $550k home in your neighborhood costs.

https://www.zillow.com/homes/for_sale/Fullerton-CA/pmf,pf_pt/25357866_z…

https://www.realtor.com/realestateandhomes-detail/3717-Amberwine-Ln_Wak…
woodsrider427
Posts
127
Joined
12/11/2014
Location
Wake Forest, NC US
1/31/2019 12:15pm Edited Date/Time 1/31/2019 12:16pm
SteezGeez wrote:
Well you're thinking our income level will stay the same. I'm only 26 years old and the pay raises in my industry are huge as you...
Well you're thinking our income level will stay the same. I'm only 26 years old and the pay raises in my industry are huge as you start to climb up. Another thing is you have no idea about what a million buys you in CA, let alone Orange County because it is not much. Our $550k home is 3 bedrooms 1.5 bath 1100sqft and the neighborhood isn't the best. A $1 million home will be about 2500 sqft with 4 beds 2 bath in a nicer neighborhood. We have one child right now and plan on having at least one more. That occupies 3 bedrooms already and I would like to have an office. Honestly that is not a lot. My wife and I would also like to have our own private bathroom.

The average time children live at home till now is also 25, so when you say space is tight for a temporary time I'm looking at the next 25 years. (That's the entire time I've been alive) If a $550k home in CA was in a nice neighborhood that had 4 bed 2 bath I would be happy but it simply is not.

When you think of a million dollar home you're probably thinking of something crazy and lavish where in Orange County CA that home would cost $5 million.
No I am not thinking your income level will stay the same, I have been around long enough to know that generally incomes tend to go up as one gets older. But keep in mind they also sometimes go down. I saw way too many people lose everything in 2008-09 (when you were in high school, man I'm getting old!!) from a job loss because they were way over leveraged. Anyone that thinks this crazy money tree this country has going on will last is a little delusional.

Like I said in my original post on this topic, many people are one sickness, injury, or job loss away from bankruptcy.

And I certainly have an idea of what the real estate is like in CA, that's why I don't live in a state like that. I left the NYC area for the same reason, I saw where it was going and didn't like what I was looking at. And the only reason real estate (and everything else) has done what's it has done in the last 20-30 years is because of the ease of financing. Our parents (or your grandparents!!) would never have, or couldn't even, buy a house with only 10% down (or even less or nothing down now, which is insane).
1
woodsrider427
Posts
127
Joined
12/11/2014
Location
Wake Forest, NC US
1/31/2019 12:23pm
SteezGeez wrote:
Before you continue to say how crazy a million home in CA compare This $1 million home in Fullerton to CA to what $550k home in...
Before you continue to say how crazy a million home in CA compare This $1 million home in Fullerton to CA to what $550k home in your neighborhood costs.

https://www.zillow.com/homes/for_sale/Fullerton-CA/pmf,pf_pt/25357866_z…

https://www.realtor.com/realestateandhomes-detail/3717-Amberwine-Ln_Wak…
You're telling me everything I already know, I have been in the building/real estate industry longer than you have been on earth. That is exactly why I would never live somewhere like that, I don't care how "nice" it is. Those numbers, even the ones here, are not sustainable.

Just be careful man, that's all I'm saying. I'd hate to see a young guy like yourself get over leveraged.

Just my opinion, nothing else.
1
SteezGeez
Posts
200
Joined
12/11/2016
Location
Fullerton, CA US
1/31/2019 12:31pm
No I am not thinking your income level will stay the same, I have been around long enough to know that generally incomes tend to go...
No I am not thinking your income level will stay the same, I have been around long enough to know that generally incomes tend to go up as one gets older. But keep in mind they also sometimes go down. I saw way too many people lose everything in 2008-09 (when you were in high school, man I'm getting old!!) from a job loss because they were way over leveraged. Anyone that thinks this crazy money tree this country has going on will last is a little delusional.

Like I said in my original post on this topic, many people are one sickness, injury, or job loss away from bankruptcy.

And I certainly have an idea of what the real estate is like in CA, that's why I don't live in a state like that. I left the NYC area for the same reason, I saw where it was going and didn't like what I was looking at. And the only reason real estate (and everything else) has done what's it has done in the last 20-30 years is because of the ease of financing. Our parents (or your grandparents!!) would never have, or couldn't even, buy a house with only 10% down (or even less or nothing down now, which is insane).
Yea, I didn't graduate high school until 2010 and I know how over leveraged people are but that is also the reason I chose a pretty stable career of being a CPA. When I got my MBA I knew the finance guys could be making millions but once a recession hit they would have nothing. Accounting is very stable especially being CPA. I'm not buying a bunch of crazy things and still the only thing I have financed is my house.

Financing is a great tool though and you need it. My wife and I bought our first home 3 years ago with 3.5% down and have over $100k in equity now. You can't save money while paying huge rent. If you're one of those people thinking you should put 20% down it's impossible in CA for kids like me. How can I possibly save $100k to put down on a house when you have to pay $2,300/month for a 2 bedroom apartment? Way better to just buy with minimum down and build equity. My only other option was to continue to live at home but my wife and I just got married and that's not great for newlyweds.
woodsrider427
Posts
127
Joined
12/11/2014
Location
Wake Forest, NC US
1/31/2019 12:49pm
SteezGeez wrote:
Yea, I didn't graduate high school until 2010 and I know how over leveraged people are but that is also the reason I chose a pretty...
Yea, I didn't graduate high school until 2010 and I know how over leveraged people are but that is also the reason I chose a pretty stable career of being a CPA. When I got my MBA I knew the finance guys could be making millions but once a recession hit they would have nothing. Accounting is very stable especially being CPA. I'm not buying a bunch of crazy things and still the only thing I have financed is my house.

Financing is a great tool though and you need it. My wife and I bought our first home 3 years ago with 3.5% down and have over $100k in equity now. You can't save money while paying huge rent. If you're one of those people thinking you should put 20% down it's impossible in CA for kids like me. How can I possibly save $100k to put down on a house when you have to pay $2,300/month for a 2 bedroom apartment? Way better to just buy with minimum down and build equity. My only other option was to continue to live at home but my wife and I just got married and that's not great for newlyweds.
You are obviously a smart guy being a CPA (and having received an MBA) and it is definitely a stable route. We'll just have to agree to disagree on the financing thing. I've seen $100k and much more in equity evaporate almost overnight, it was a scary time for a lot of people.

Using your numbers and income from your original post you could easily save $100k paying $2,300/month (which is ridiculous I agree) in rent, it's all about priorities and discipline. You said you would pay $5,500 a month on a mortgage, that would mean you could save $3,200 a month if you had $2,300 a month in rent. That's $115,200 in just 3 years, which flies by. So you can't say it's impossible, it's all about choices.

One thing a lot of people forget about when buying a home (and I'm not saying you), is it's more than just the mortgage/taxes. Maintenance on a house is a bitch and will eat up the investment everyone thinks it is quickly.

By the way, I've enjoyed the discussion we've had. I enjoy hearing other people's opinions/views on certain subjects, especially from a different side of the country.
Tarz483
Posts
6344
Joined
2/25/2009
Location
Mankato, MN US
1/31/2019 12:57pm Edited Date/Time 1/31/2019 12:58pm
hogkiller wrote:
https://www.google.com/maps/search/blackfoot+track/@51.0071803,-114.0445085,549m/data=!3m1!1e3 [img]https://p.vitalmx.com/photos/forums/2019/01/29/321745/s1200_alberta.jpg[/img] [img]https://p.vitalmx.com/photos/forums/2019/01/29/321746/s1200_misc_16_calgary_jl_0786.jpg[/img] [img]https://p.vitalmx.com/photos/forums/2019/01/29/321747/s1200_IMG_2466_L.jpg[/img] [img]https://p.vitalmx.com/photos/forums/2019/01/29/321748/s1200_Optimized_Alberta_Morraine_lake.jpg[/img] [img]https://p.vitalmx.com/photos/forums/2019/01/29/321749/s1200_Top_Hotels_Accomm_Featurette_022218.jpg[/img]
Looks Beautiful, its crazy how little
i know about Canada, with it being right next to us.
What are winters like there?
Panic_Rev
Posts
686
Joined
7/13/2012
Location
Fayetteville, AR US
1/31/2019 1:08pm
mxracer71 wrote:
oh i guarantee it way more then 4k a month for a million dollar house. Here in elsinore my buddys house is right around 450k.His house...
oh i guarantee it way more then 4k a month for a million dollar house. Here in elsinore my buddys house is right around 450k.His house is over the 3k mark and taxes alone you will add another 1k to your house payment. California is f-ing ridiculous to live.
Tarz483 wrote:
Right so how are that many people able to make that much per month?
SteezGeez wrote:
Honestly it's the fact that wages are higher. My wife and I are planning on buying a million dollar home in the next two years. The...
Honestly it's the fact that wages are higher. My wife and I are planning on buying a million dollar home in the next two years. The home we currently have in Orange County cost $550k but with a growing family we need a bigger space. Currently our income combined is about $155k but in two years it will be closer to $185k/year. We estimtate our monthly payments including taxes and insurance on a million dollar home to be about $5,500/ month with 100k down.

If you're wondering what we do my wifes a teacher and gets paid BANK! I'm a CPA but still climbing the ladder of the industry.
Our income is double, two kids, 650k house. With that said I can not fathom how you think you should buy a $1m home. Being a CPA Im sure you know your housing expenses should not exceed 40% of income. That includes taxes, p&i, insurance, cable, utilities, etc.
SteezGeez
Posts
200
Joined
12/11/2016
Location
Fullerton, CA US
1/31/2019 1:08pm
SteezGeez wrote:
Yea, I didn't graduate high school until 2010 and I know how over leveraged people are but that is also the reason I chose a pretty...
Yea, I didn't graduate high school until 2010 and I know how over leveraged people are but that is also the reason I chose a pretty stable career of being a CPA. When I got my MBA I knew the finance guys could be making millions but once a recession hit they would have nothing. Accounting is very stable especially being CPA. I'm not buying a bunch of crazy things and still the only thing I have financed is my house.

Financing is a great tool though and you need it. My wife and I bought our first home 3 years ago with 3.5% down and have over $100k in equity now. You can't save money while paying huge rent. If you're one of those people thinking you should put 20% down it's impossible in CA for kids like me. How can I possibly save $100k to put down on a house when you have to pay $2,300/month for a 2 bedroom apartment? Way better to just buy with minimum down and build equity. My only other option was to continue to live at home but my wife and I just got married and that's not great for newlyweds.
You are obviously a smart guy being a CPA (and having received an MBA) and it is definitely a stable route. We'll just have to agree...
You are obviously a smart guy being a CPA (and having received an MBA) and it is definitely a stable route. We'll just have to agree to disagree on the financing thing. I've seen $100k and much more in equity evaporate almost overnight, it was a scary time for a lot of people.

Using your numbers and income from your original post you could easily save $100k paying $2,300/month (which is ridiculous I agree) in rent, it's all about priorities and discipline. You said you would pay $5,500 a month on a mortgage, that would mean you could save $3,200 a month if you had $2,300 a month in rent. That's $115,200 in just 3 years, which flies by. So you can't say it's impossible, it's all about choices.

One thing a lot of people forget about when buying a home (and I'm not saying you), is it's more than just the mortgage/taxes. Maintenance on a house is a bitch and will eat up the investment everyone thinks it is quickly.

By the way, I've enjoyed the discussion we've had. I enjoy hearing other people's opinions/views on certain subjects, especially from a different side of the country.
I agree equity can dry up overnight but from attending an economic forecast event last night it looks as though at least for the next two years we have continued projected growth but it is small and the next recession will most likely not relate to housing or affect it like that last one did considering that sub prime mortgages are almost non existent.

While we could decide to save up as you mentioned we would be foregoing the tax savings from the home and the ability to build equity. One of my co workers and her husband were adamant about saving 20% as you recommended for the last 3 years instead of buying a home when I did and they highly regret it now because in Torrance, CA a home they could of bought 3 years ago for $700k is now $900k-$950k. They have saved up $100,000 to put down on a home finally but they could of just bought 3 years ago and now have been sitting on $200k in equity just from the market rising.(Granted that could evaporate considering a recession). While saving that 20% they have lost out on a lot. It is a great idea to save 20% but that only works well in a stable housing market (which we almost never have). I'm just a big believer of buying a home as quickly as possible if you have a stable career/income due to the building of equity. Unless you're unsure how long you will live somewhere or really can't afford to buy then you should rent.

This conversation has been good. Seriously I'd love to move out of CA but I like the whether too much. The politics put a horrible taste in your mouth though.

SteezGeez
Posts
200
Joined
12/11/2016
Location
Fullerton, CA US
1/31/2019 1:18pm Edited Date/Time 1/31/2019 1:18pm
Tarz483 wrote:
Right so how are that many people able to make that much per month?
SteezGeez wrote:
Honestly it's the fact that wages are higher. My wife and I are planning on buying a million dollar home in the next two years. The...
Honestly it's the fact that wages are higher. My wife and I are planning on buying a million dollar home in the next two years. The home we currently have in Orange County cost $550k but with a growing family we need a bigger space. Currently our income combined is about $155k but in two years it will be closer to $185k/year. We estimtate our monthly payments including taxes and insurance on a million dollar home to be about $5,500/ month with 100k down.

If you're wondering what we do my wifes a teacher and gets paid BANK! I'm a CPA but still climbing the ladder of the industry.
Panic_Rev wrote:
Our income is double, two kids, 650k house. With that said I can not fathom how you think you should buy a $1m home. Being a...
Our income is double, two kids, 650k house. With that said I can not fathom how you think you should buy a $1m home. Being a CPA Im sure you know your housing expenses should not exceed 40% of income. That includes taxes, p&i, insurance, cable, utilities, etc.
Dude making $350k/year is huge if you're in Arkansas but you obviously don't know how tight an 1100sqft home is with two kids and that costs $550k. And if you can do the math with all costs as you mentioned (high-balled) $6,000 would be our total monthly costs and that's only 39% on a monthly income of $185k. Again, I'm only making half of what a manager which is about 4 years away for me. So my income will jump in the next year at senior and then in 3 years will jump again.

Keep in mind buying a $1M home is not for being big and lavish. It's just to have a little bit of space. With two kids having 2 bathrooms and 1 extra bedroom for an office is not extravagant. That is just what the market dictates is the price. That $650k home you live in would cost probably $4M where I live. In a $650k home for your area you're going to be living a way more extravagant life than I will.
woodsrider427
Posts
127
Joined
12/11/2014
Location
Wake Forest, NC US
1/31/2019 1:36pm Edited Date/Time 1/31/2019 1:39pm
SteezGeez wrote:
I agree equity can dry up overnight but from attending an economic forecast event last night it looks as though at least for the next two...
I agree equity can dry up overnight but from attending an economic forecast event last night it looks as though at least for the next two years we have continued projected growth but it is small and the next recession will most likely not relate to housing or affect it like that last one did considering that sub prime mortgages are almost non existent.

While we could decide to save up as you mentioned we would be foregoing the tax savings from the home and the ability to build equity. One of my co workers and her husband were adamant about saving 20% as you recommended for the last 3 years instead of buying a home when I did and they highly regret it now because in Torrance, CA a home they could of bought 3 years ago for $700k is now $900k-$950k. They have saved up $100,000 to put down on a home finally but they could of just bought 3 years ago and now have been sitting on $200k in equity just from the market rising.(Granted that could evaporate considering a recession). While saving that 20% they have lost out on a lot. It is a great idea to save 20% but that only works well in a stable housing market (which we almost never have). I'm just a big believer of buying a home as quickly as possible if you have a stable career/income due to the building of equity. Unless you're unsure how long you will live somewhere or really can't afford to buy then you should rent.

This conversation has been good. Seriously I'd love to move out of CA but I like the whether too much. The politics put a horrible taste in your mouth though.

You have to admit in that scenario you describe, a house going up $200-250k in "value" in just 3 years is absurd and totally unsustainable, I don't care where you live. Nothing supports that but crazy low interest rates, ease of financing, and everyone jumping on the homeowner bandwagon.

In my opinion they should wait and keep saving, they will regret it much more if they buy a house now at $900k and and it goes down to even $800k or much much less. Which is very possible in a volatile market, I don't care what someone said at an "economic forecast event". That's kind of like a weather forecast to me, useless more than a few days out.

We can all kick ourselves for missing out on something we should have bought and we think "we missed out on", hindsight is always 20/20. But I've seen two good downturns in my adult life (the dotcom bust and the housing bust of 08/09) and they were painful for many.

And I never really recommended 20% down, I personally don't even think that is enough. My parents generation had no choice, that was the minimum requirement back then. And when do you think all this craziness started? Coincidence, I think not. And I believe you still have to pay PMI under 20% (not sure, have never done it), what a rip off that is.
SteezGeez
Posts
200
Joined
12/11/2016
Location
Fullerton, CA US
1/31/2019 1:50pm
SteezGeez wrote:
I agree equity can dry up overnight but from attending an economic forecast event last night it looks as though at least for the next two...
I agree equity can dry up overnight but from attending an economic forecast event last night it looks as though at least for the next two years we have continued projected growth but it is small and the next recession will most likely not relate to housing or affect it like that last one did considering that sub prime mortgages are almost non existent.

While we could decide to save up as you mentioned we would be foregoing the tax savings from the home and the ability to build equity. One of my co workers and her husband were adamant about saving 20% as you recommended for the last 3 years instead of buying a home when I did and they highly regret it now because in Torrance, CA a home they could of bought 3 years ago for $700k is now $900k-$950k. They have saved up $100,000 to put down on a home finally but they could of just bought 3 years ago and now have been sitting on $200k in equity just from the market rising.(Granted that could evaporate considering a recession). While saving that 20% they have lost out on a lot. It is a great idea to save 20% but that only works well in a stable housing market (which we almost never have). I'm just a big believer of buying a home as quickly as possible if you have a stable career/income due to the building of equity. Unless you're unsure how long you will live somewhere or really can't afford to buy then you should rent.

This conversation has been good. Seriously I'd love to move out of CA but I like the whether too much. The politics put a horrible taste in your mouth though.

You have to admit in that scenario you describe, a house going up $200-250k in "value" in just 3 years is absurd and totally unsustainable, I...
You have to admit in that scenario you describe, a house going up $200-250k in "value" in just 3 years is absurd and totally unsustainable, I don't care where you live. Nothing supports that but crazy low interest rates, ease of financing, and everyone jumping on the homeowner bandwagon.

In my opinion they should wait and keep saving, they will regret it much more if they buy a house now at $900k and and it goes down to even $800k or much much less. Which is very possible in a volatile market, I don't care what someone said at an "economic forecast event". That's kind of like a weather forecast to me, useless more than a few days out.

We can all kick ourselves for missing out on something we should have bought and we think "we missed out on", hindsight is always 20/20. But I've seen two good downturns in my adult life (the dotcom bust and the housing bust of 08/09) and they were painful for many.

And I never really recommended 20% down, I personally don't even think that is enough. My parents generation had no choice, that was the minimum requirement back then. And when do you think all this craziness started? Coincidence, I think not. And I believe you still have to pay PMI under 20% (not sure, have never done it), what a rip off that is.
That price increase was actually still just market recovery. Were barely back to 06-07 pricing even though incomes have definitely risen in the past 10 years. The market is slowing down in terms of purchases and it's not just leveling off. I do not think that in the next two years we will see a huge housing crash though.

I get what you're saying about saving percentage wise but in CA the prices are almost to high to ever hit that. If you're saying 20-30% on a modest home in your area which costs $350k then yea, that's feasible to save for within 2-3 years. If a single family home is costing $700k then saving $140k is really hard. We have differences of opinion but I'm coming from a younger persons point of view. The only way I could eventually buy a $1M home before 30 is by buying the house I live in right now, building equity, and rolling that into the next house.

I've also followed the advice of my parents throughout all of this and they own 7 homes in which 6 are paid off. They may have not given me money for a home but they have definitely blessed me with knowledge and the ability to live at home for free while attending college. (Full disclosure they did pay for my bachelors which was cost in total $20k over 5 years) My MBA I have paid for on my own.
az2u
Posts
931
Joined
8/15/2006
Location
CA US
1/31/2019 6:29pm
Amazing how much real estate has gone up since this thread was started back in 2014.
1
jeffro503
Posts
27629
Joined
7/22/2007
Location
St Helens, OR US
1/31/2019 7:07pm
My opinion.....

I'd move east to Idaho. If I moved South , it wouldn't be to much further than the border , as I want nothing to do with S. Cali. Nice to visit , but would never live there. OR.......I'd move way North into S. Canada on the Western side , because I dig the people from there. I probably have that order reversed , as I would probably move North before anything else. And if Southern Cali is so great.......WTF is everyone moving out of it? Maybe because it's slowly becoming a 3rd world , Liberal cess pool? You want to live that way?.....Stay there please. My town is already fucked up enough.
2
jeffro503
Posts
27629
Joined
7/22/2007
Location
St Helens, OR US
1/31/2019 7:12pm
BTW......if I wanted to move further away , I'd move some where central USA. Like Texas , Georgia . Oklahoma , Alabama , ect...... I love the people there to. Any where but S. Cali ( or New York! ) Fuck them places.
2
1
seth505
Posts
10170
Joined
4/1/2008
Location
SD, CA US
1/31/2019 7:18pm
There are high price condos goin up all over San Diego, a surprising amount. Tells me people aren’t all moving out.
jeffro503
Posts
27629
Joined
7/22/2007
Location
St Helens, OR US
1/31/2019 7:53pm
seth505 wrote:
There are high price condos goin up all over San Diego, a surprising amount. Tells me people aren’t all moving out.
Seth....you may want to do a little research on this. What you " feel " and what is really happening , are two totally different things. As of about 6 months ago , Oregon has a segment on our local news stating that Oregon was receiving 140 people per week , moving up here from California. As migration moves North , it pushes everyone else out , weather that be more North or East. This is only 1 out of thousands of reports on it.

https://lao.ca.gov/laoecontax/article/detail/265
1
1/31/2019 8:13pm
And guess where way more than 140 per week are probably moving from all over? SoCal.
jeffro503
Posts
27629
Joined
7/22/2007
Location
St Helens, OR US
1/31/2019 8:54pm
And guess where way more than 140 per week are probably moving from all over? SoCal.
Yeah? From where? I can think of one place....but multiple? I guess to each their own. Nice place to visit in some areas , but you couldn't pay me to live there.
2
KennyT
Posts
4371
Joined
8/16/2006
Location
Vista, CA US
Fantasy
1/31/2019 9:36pm Edited Date/Time 1/31/2019 9:38pm
seth505 wrote:
There are high price condos goin up all over San Diego, a surprising amount. Tells me people aren’t all moving out.
I’ve never seen the building booming like it is now in the San Diego area. Housing going up everywhere and there is still a shortage. Not sure where the mass exodus is taking place but I don’t think it’s in our area Seth. You know what it’s like here...could you ever leave a place like this Seth? I know I couldn’t. I can deal with people when needed to live in a place where the average temperature is a tick above/below perfect for most of the year.

And the crowds everyone freaks out about? That noise comes from the mouths of tourist or someone who doesn’t know their way around. I can hop on my bike and have complete solitude in a matter of minutes. From mountains to isolated beaches (yes even here in So Cal you can be on a beach by yourself when you know where to go)

I can deal with the drawbacks people read or watch on the fake news. All I know is life here is paradise to me. And BTW I’m not a Liberal. There are plenty of “normal” people here ?
2
1/31/2019 10:22pm
Outsider wrote:
You'll hate it, stay away
Bro, go to plan B. I left there 22 years ago during the Rodney King era . It’s a shit hole.

Even if you had a $ 250 K income 60% Roughly will be eaten by federal and Stare income taxes, the CA sales tax puts you at 60%.

If you marry into big money or you hit the lottery then disregard the above . Lmao!
1
Rhody
Posts
185
Joined
8/10/2014
Location
CA US
2/1/2019 6:29am
SLAPAHO wrote:
here's a breakdown of who's moving out and who's moving in.... enjoy

https://www.sandiegouniontribune.com/opinion/the-conversation/sd-califo…
That's fine and dandy, but who is going to be left to do actual work? The trend is for CA to lose its middle class, it is too expensive for a guy making $70k to $110k a year in the Bay Area. The state is gearing itself entirely to the top 10% and bottom 10%, leaving 80% wondering "Where the hell do I fit in". Also, don't trust a SoCal native, they don't know anything different, so they think they are in Heaven. I am from the Northeast, and I will happily go back to my cold winters, just to get away from people. The constant building is part of what is chasing me away. Developers are turning the San Francisco to Sacramento corridor into a new IE. I can't stand the I.E. so I must go.
2
1
KennyT
Posts
4371
Joined
8/16/2006
Location
Vista, CA US
Fantasy
2/1/2019 8:18am Edited Date/Time 2/1/2019 8:22am
SLAPAHO wrote:
here's a breakdown of who's moving out and who's moving in.... enjoy

https://www.sandiegouniontribune.com/opinion/the-conversation/sd-califo…
Rhody wrote:
That's fine and dandy, but who is going to be left to do actual work? The trend is for CA to lose its middle class, it...
That's fine and dandy, but who is going to be left to do actual work? The trend is for CA to lose its middle class, it is too expensive for a guy making $70k to $110k a year in the Bay Area. The state is gearing itself entirely to the top 10% and bottom 10%, leaving 80% wondering "Where the hell do I fit in". Also, don't trust a SoCal native, they don't know anything different, so they think they are in Heaven. I am from the Northeast, and I will happily go back to my cold winters, just to get away from people. The constant building is part of what is chasing me away. Developers are turning the San Francisco to Sacramento corridor into a new IE. I can't stand the I.E. so I must go.
That’s a good question and it is one reason why I am booked 12+ months out on remodeling projects and charge 4 times what my brother in law makes in Idaho. There is a definite shortage of skilled labor in the area and it has helped drive up wages for the construction trades in the area. Even the illegals are now getting $40-50 per hour to trim trees or hang drywall. Didn’t take the criminal illegal invaders too long to figure out the rich San Diegans would pay more than $8 a day.


And even though I am a native So Californian I did try 8 years in the middle of a forest in Oregon. 20 acres and I loved it. However after 8 years of 90” rain totals the women had enough and we came down to the beach. I sure miss the forest/rivers but nobody misses rain from Oct-May. The Northeast is beautiful though but I could never take the winters, or humid summers. I’ll pay for good weather
1
2/1/2019 8:30am
And guess where way more than 140 per week are probably moving from all over? SoCal.
jeffro503 wrote:
Yeah? From where? I can think of one place....but multiple? I guess to each their own. Nice place to visit in some areas , but you...
Yeah? From where? I can think of one place....but multiple? I guess to each their own. Nice place to visit in some areas , but you couldn't pay me to live there.
You’re the one proposing the dude that lives there needs to research and is going by feel—how about you research?

Post a reply to: If I were to move to California ?

The Latest