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Pretty good article on the housing craze...

BHC Vic

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Lol we have a family member that thinks they are hot shit because they go to Hawaii every year.

but yet have a house that they owe 30yrs on and they have been in it for like 25yrs. And the amount owed is triple what they payed.

cool story. We are over here game planning on how to buy a second house lol
Guy I’m talking about landed in Hawaii yesterday 😂😂😂

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Carrera205

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I’m a millennial and can’t buy a home. And it’s not because I can’t not have the newest iPhone or because I drink Starbucks everyday. It’s because homes in my area are 700k+ for a pos and people are buying them cash or having bidding wars. I choose to rent because my kids are going to go to a 9/10 school on pch and there’s almost zero crime in my area. I had a home a nice home and sold it because the school district was shit and the city was full of crime and gang members. And where I worked didn’t provide health insurance for my family only myself. I could go out of state but what I do pays much less. So we’d be in the same situation but hours away from family so what’s the point. I could buy a home 2 hours from work. Spend 4 hours of my day in traffic and miss my kids growing up. So instead I divert as much as I can into my retirement and piss away 3k a month in rent. It sucks but this is SoCal and this is the way it goes for millennials. There’s dudes I work with that bought houses in a tract 10-15 years ago for 200k. “Starter homes” they call it. Now those homes are valued over 800k. Insanity. I’m a blue collar worker and almost topped out. Make the most in my line of work in pretty much the entire us but still can’t afford to buy where I live. Not all millennials are not buying because we blow money on useless shit. It’s because we can’t afford it because the prices have far outran the income for middle class workers. It’s easy to sit back and say this with a 1400 dollar mortgage in chino hills. The reality is we weren’t in the work force or were just starting when homes were cheap enough to enter and didn’t have the capital yet to buy. Now that we’re at the time we can buy shit is retarded expensive and I refuse to be house poor.
 

BHC Vic

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I’m a millennial and can’t buy a home. And it’s not because I can’t not have the newest iPhone or because I drink Starbucks everyday. It’s because homes in my area are 700k+ for a pos and people are buying them cash or having bidding wars. I choose to rent because my kids are going to go to a 9/10 school on pch and there’s almost zero crime in my area. I had a home a nice home and sold it because the school district was shit and the city was full of crime and gang members. And where I worked didn’t provide health insurance for my family only myself. I could go out of state but what I do pays much less. So we’d be in the same situation but hours away from family so what’s the point. I could buy a home 2 hours from work. Spend 4 hours of my day in traffic and miss my kids growing up. So instead I divert as much as I can into my retirement and piss away 3k a month in rent. It sucks but this is SoCal and this is the way it goes for millennials. There’s dudes I work with that bought houses in a tract 10-15 years ago for 200k. “Starter homes” they call it. Now those homes are valued over 800k. Insanity. I’m a blue collar worker and almost topped out. Make the most in my line of work in pretty much the entire us but still can’t afford to buy where I live. Not all millennials are not buying because we blow money on useless shit. It’s because we can’t afford it because the prices have far outran the income for middle class workers. It’s easy to sit back and say this with a 1400 dollar mortgage in chino hills. The reality is we weren’t in the work force or were just starting when homes were cheap enough to enter and didn’t have the capital yet to buy. Now that we’re at the time we can buy shit is retarded expensive and I refuse to be house poor.
I’m a millennial. I don’t have a 1400 dollar mortgage. Replace the 1 with a 3. I work 60 hours a week and commute 30 miles each way while paying for the fastrack. It’s about how much someone is will to sacrifice to get what they want. Great school district in norco but I’m still paying for my kids to go to a Christian school because I don’t agree with public school ideology. I drink Starbucks everyday(headed there now) 🤠 I’m not balling but I wouldn’t say I’m house poor either. I graduated in 2006 became a carpenter in 2008 bought a house in 2010.
 

attitude

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I use to work in there here and there yeh see all the boats and trailers golf carts etc but then think the NO mototcycles to me thats a turn off!!
I will probably never own a Harley or a street bike while I live in SoCal, constantly dodging SoCal traffic has no appeal to me. I do wonder what happens if I’ve done some work to my dirt bike and I want to take it for a quick spin.
 

BHC Vic

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I tell all my apprentices by 6th period which is roughly 3 years into the trade, you should be buying a house. It used to be 3rd period but times have changed
 

ONE-A-DAY

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but the house in the hills didn’t include the pool and pool house that you added correct? Need to add that in on the purchase price.

still made out damn good though.
Still made $450 on that one
 

Christopher Lucero

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coming into this pretty late. for new home buyers, the market appears impossibly overpriced.

I have my own experience to share. where I live, in the years when I was searching for a home over 30 years ago, the market was hot. people were lining up to get into a lottery for homes and then pay whatever the developer named...mostly the published price in marketing materials - plus whatever upgrades after that ($100k or more) that were specifically NOT part of the sales price as they were done by a developer owned design center under separate contract. prices were spiraling, but there was development and concerted effort to build 'houses for boomers'. I did not want to put my choices up to randomness, so we waited...and waited...and continued shopping.

the stuff being built were mostly cheap and quick (two choices among the 'quick-cheap-good' tradeoff). we found a development by a small builder who had nice and well laid out plans.

then...crash. we got in on the down-slope, borrowing from our 401k's (back then you could deduct the interest you paid yourself back on that loan), leveraging everything for the dream, yet paying nearly $100k less than neighbors who had moved in only a few months earlier. we even were underwater for a few years while prices stabilized.

my dad found the price I (we) was paying out-scale, so I exercised his thinking. I asked how much he paid for his first home and how much me made per year when he bought it. the ratio was 3:1. I gave him my numbers and the ratio was roughly the same. Wife and me were both working three jobs to make the nut...for around 6 years. we were hardly ever there to enjoy it. it took me a year before I put in the front yard, and the back yard was undeveloped for 8 years. my kid drew a picture as part of a 4th grade assignment at the beginning of the school year of our dismally furnished home.

this is not to be mean or insensitive...just a tough reminder that the world owes us nothing.

you can get what you want, but it means it is up to you to pursue it.

I cross post this as well about my blackrock thesis.
 
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DMF

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Lol we have a family member that thinks they are hot shit because they go to Hawaii every year.

but yet have a house that they owe 30yrs on and they have been in it for like 25yrs. And the amount owed is triple what they payed.

cool story. We are over here game planning on how to buy a second house lol
You and I must be cousins and share the same family member...hahaha! I scratch my head everytime I have a conversation with said family member.
 

Looking Glass

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coming into this pretty late. for new home buyers, the market appears impossibly overpriced.

I have my own experience to share. where I live, in the years when I was searching for a home over 30 years ago, the market was hot. people were lining up to get into a lottery for homes and then pay whatever the developer named...mostly the published price in marketing materials - plus whatever upgrades after that ($100k or more) that were specifically NOT part of the dales price as they were done by a developer owned design center under separate contract. prices were spiraling, but there was development and concerted effort to build 'houses for boomers'. I did not want to put my choices up to randomness, so we waited...and waited...and continued shopping.

the stuff being built were mostly cheap and quick (two choices among the 'quick-cheap-good' tradeoff). we found a developemnt by a small builder who had nice and well laid out plans.

then...crash. we got in on the downslope, paying nearly $100k less than neigbors who had moved in only a few months earlier. we even were underwater for a few years while prices stabilized.

my dad found the price I (we) was paying outscale, so I exercised his thinking. I asked how much he paid for his first home and how much me made per year when he bought it. the ratio was 3:1. I gave him my numbers and the ratio was roughly the same. Wife and me were both working three jobs to make the nut...for around 6 years. we were hardly ever there to enjoy it. it took me a years before I put in the front yard, and the back yard was undeveloped for 8 years.

this is not to be mean or insensitive...just a tough reminder that the world owes us nothing.

you can get what you want, but it means it is up to you to pursue it.

I cross post this as well about my blackrock thesis.



AND!!

What you are willing to Give Up to achive it.;)
 

LargeOrangeFont

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I’m a millennial and can’t buy a home. And it’s not because I can’t not have the newest iPhone or because I drink Starbucks everyday. It’s because homes in my area are 700k+ for a pos and people are buying them cash or having bidding wars. I choose to rent because my kids are going to go to a 9/10 school on pch and there’s almost zero crime in my area. I had a home a nice home and sold it because the school district was shit and the city was full of crime and gang members. And where I worked didn’t provide health insurance for my family only myself. I could go out of state but what I do pays much less. So we’d be in the same situation but hours away from family so what’s the point. I could buy a home 2 hours from work. Spend 4 hours of my day in traffic and miss my kids growing up. So instead I divert as much as I can into my retirement and piss away 3k a month in rent. It sucks but this is SoCal and this is the way it goes for millennials. There’s dudes I work with that bought houses in a tract 10-15 years ago for 200k. “Starter homes” they call it. Now those homes are valued over 800k. Insanity. I’m a blue collar worker and almost topped out. Make the most in my line of work in pretty much the entire us but still can’t afford to buy where I live. Not all millennials are not buying because we blow money on useless shit. It’s because we can’t afford it because the prices have far outran the income for middle class workers. It’s easy to sit back and say this with a 1400 dollar mortgage in chino hills. The reality is we weren’t in the work force or were just starting when homes were cheap enough to enter and didn’t have the capital yet to buy. Now that we’re at the time we can buy shit is retarded expensive and I refuse to be house poor.

This isn't directed at you specifically, but if you found a job where housing costs half of here, and you make 2/3 what you make here, and you are taxed 20% less than here, you actually end up with more money in your pocket. Everyone makes sacrifices to do what they think it best for their family. At the end of the day you are getting what you are paying for, a 9/10 school for your kids on PCH. That is always gonna cost a lot of money. It did in the 80s and it will continue to into the future. You can find 9/10 schools in every state in the nation just about. At some point the costs outweigh the benefits, and people move to where they can live a comfortable life. That is why people are exiting CA, among many other reasons. It is really fucking hard to get ahead in So Cal. There is no way I'd buy my house for what it is worth today. Yea I could afford it, but I just don't see the value in paying all that money for a constantly decreasing quality of life. I'd move out of state.

I bought a house because it is rent control. Rent only goes one way... up. At least housing prices dip once a decade, and as you noted, the asset increases substantially in value.
 
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arch stanton

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boy everyone forgets how cheap houses were in so cal just 10 years ago just give it time something will affect the market I have faith the government will screw up the market some how some way. I have been looking for the signs of something that will start the downturn but like the article says just not apparent at this time the last one was being predicted many years before it happened. I do think that the Crypto currency market has the potential to cause a big correction I wonder how much of the money invested in Crypto is borrowed money.
 

BHC Vic

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boy everyone forgets how cheap houses were in so cal just 10 years ago just give it time something will affect the market I have faith the government will screw up the market some how some way. I have been looking for the signs of something that will start the downturn but like the article says just not apparent at this time the last one was being predicted many years before it happened. I do think that the Crypto currency market has the potential to cause a big correction I wonder how much of the money invested in Crypto is borrowed money.
We have more margin debt than we ever have in history. A lot more
 

arch stanton

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We have more margin debt than we ever have in history. A lot more
yes i had read about the margin dept but i wonder how much is borrowed on credit cards or other consumer debt to fund the accounts that are playing in the crypto or meme stocks to then be given margin dept on borrowed money
 

Bear Down

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A lot of different perspectives on this & I enjoy reading everyone’s points-of-views...

How many of you are single, never married & have no kids?

What’s 20% down on 400-500k? Plus an HOA & all of the hidden expenses of being a homeowner. That’s a lot for a single person with no help from a spouse or gf. So to say that younger people aren’t saving their money? Well it’s somewhat impossible when you’re living alone in Orange County.

I’m so miserable right now paying such a high monthly rent, that I’m actually embarrassed to bring it up in conversation with anyone. It’s to the the point where I’m seriously thinking about canceling my monthly cable-internet bundle pkg., just to cut some monthly costs somewhere.



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Its not effen easy...
Single income family ...
3 kids (19,12,6)

We got lucky in 2018 when at that time I thought I overpaid for a house for $485k.... Interest rates got so low my house payment is only $300 more than my rent payment was in 2018 before we purchased the house. I was really discourged when we were looking at homes since we needed a 4 bedroom and that just takes you to a whole new price bracket and with that priced us out of living in the area we were renting. We moved to Upland (20 miles further inland) from previous address and had to commute the kids to school at their old schools in West Covina for 2 years to keep them in the same school till graduation/promotion. to save $, I made a schedule change at work to be able to pick up both kids so my wife wouldn't have to spend miles/$$ on gas doing the round trip pick ups since I was passing through on the way back from Downtown LA... Getting up for work at 2 am. and having to pick up kid #1 at 230 pm. and the 2nd kids at 430 pm after practice and getting home at 515 pm. for 2 years sucked..but saved us about $150 per month in fuel and wear and tear. But everything has leveled out now since 1 has graduated and the other transferred to a local school.
No need for you to be embarrassed...its a legitimate thought/struggle you share with a shit ton of people. Only suggestion I would give is that if you are alone...buy yourself something you can afford...something you can call home regardless of how it looks or area and just live the "suck" that comes with it. Adjust your schedule/life if needed but "own" it and that will create some peace... AS LOF has mentioned... owning is a form of rent control.. so buy a shack that is 600 Sq. Ft... who cares just buy it.... Need to commute?? Go for it...don't fear it ..embrace it and use it as a driving force to create some sort of positive change... Good luck...I feel you and have been in your shoes.. And our family income was nothing to be proud of and wasn't six figures when we purchased the house in 2018. We just don't go crazy and blow money or are in heavy debt.
 

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A lot of different perspectives on this & I enjoy reading everyone’s points-of-views...

How many of you are single, never married & have no kids?

Well, that’s my life & I was just forced to move because the private condo I was leasing sold, so I had 30 days to vacate.

If you want to live alone in OC, in a safe area & want a garage, it’s around 1900-2300 monthly, depending on the location. Factor in utilities & other expenses & it’s nearly impossible to save any money.

What’s 20% down on 400-500k? Plus an HOA & all of the hidden expenses of being a homeowner. That’s a lot for a single person with no help from a spouse or gf. So to say that younger people aren’t saving their money? Well it’s somewhat impossible when you’re living alone in Orange County.

I’m so miserable right now paying such a high monthly rent, that I’m actually embarrassed to bring it up in conversation with anyone. It’s to the the point where I’m seriously thinking about canceling my monthly cable-internet bundle pkg., just to cut some monthly costs somewhere.

I also don’t have a car right now & can’t justify buying one, since on paper my monthly income & monthly rent doesn’t really make much sense. It’s whatever man, but this is as frustrated as I’ve even been. I couldn’t tell you the last time I actually did something fun in my life.


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I dealt with this about 3 years ago when I was 28. Was living in Mission Viejo then ended up renting a shithole in Romoland. Learned real quick what was important and what I had to do. Needs instead of wants. I already had a down payment for a house. If I chose to stay in Ca, it would get me a house in a shitty area I would be a slave to and still have a 7 hour commute everyday. No time for a family or to spend time with my family and couldn't tell you the last time I did something fun or was able to see my friends. Terrible way to spend a down payment. I was miserable. Here was my solution.

I just needed to get a traditional 3 bed/2 bath house in a nice neighborhood and not have a 7 hour commute. All on blue collar wages, by my choice. I moved 5 hours East. It was a little easier as I had family out there but still would've had to do something. Choosing to stay in Ca, I was going broke safely, wrecking my health and on the way to a heart attack before the age of 35, and would struggle greatly to get ahead. I tortured myself for awhile and by going to Romoland but finally made the decision to give up all the materialistic shit, end the relationship with the GF that wasn't on board, accept I have to leave a job I really like (still miss it to this day), and just worried about me and my 9 lb. buddy.

Everything worked out fine and in 6 months was in a 3 bed/2 bath house in a nice neighborhood on blue collar wages ($21/hr) that I'm NOT a slave to and was a good property to spend my down payment on. Just me and my buddy. I'm able to move forward with life and have a life now and it's fun. Met new friends, have a new GF, picked up new things to do, and don't really have any struggles. The 5 hour move didn't solve all my problems but it took care of some important ones. The only thing I miss about Ca is the people I worked with but I can still visit. I visit the grandparents and other family about every 3 months and all is well and everyone is happy. I got to visit with my old coworkers recently after 2 years and was nice and everyone is fine. They're happy, I'm happy, everything is good.

Life is about choices. Figure out what you need to do and make achievable goals to get yourself there. There will be sacrifices and emotions along the way but the outcome will out weigh that.

20% down on a $500K house is $100K and figure a mortgage of $2300 a month. Utilities, HOA, other bullshit you're probably $3000 a month. For the record Romoland isn't terrible. Just the place I chose to live was. That whole area is pretty neat and has some cool properties.
 
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rivrrts429

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I dealt with this about 3 years ago when I was 28. Was living in Mission Viejo then ended up renting a shithole in Romoland. Learned real quick what was important and what I had to do. Needs instead of wants. I already had a down payment for a house. If I chose to stay in Ca, it would get me a house in a shitty area I would be a slave to and still have a 7 hour commute everyday. No time for a family or to spend time with my family and couldn't tell you the last time I did something fun or was able to see my friends. Terrible way to spend a down payment. I was miserable. Here was my solution.

I just needed to get a traditional 3 bed/2 bath house in a nice neighborhood and not have a 7 hour commute. All on blue collar wages, by my choice. I moved 5 hours East. It was a little easier as I had family out there but still would've had to do something. Choosing to stay in Ca, I was going broke safely, wrecking my health and on the way to a heart attack before the age of 35, and would struggle greatly to get ahead. I tortured myself for awhile and by going to Romoland but finally made the decision to give up all the materialistic shit, end the relationship with the GF that wasn't on board, accept I have to leave a job I really like (still miss it to this day), and just worried about me and my 9 lb. buddy.

Everything worked out fine and in 6 months was in a 3 bed/2 bath house in a nice neighborhood on blue collar wages ($21/hr) that I'm NOT a slave to and was a good property to spend my down payment on. Just me and my buddy. I'm able to move forward with life and have a life now and it's fun. Met new friends, have a new GF, picked up new things to do, and don't really have any struggles. The 5 hour move didn't solve all my problems but it took care of some important ones. The only thing I miss about Ca is the people I worked with but I can still visit. I visit the grandparents and other family about every 3 months and all is well and everyone is happy. I got to visit with my old coworkers recently after 2 years and was nice and everyone is fine. There happy, I'm happy, everything is good.

Life is about choices. Figure out what you need to do and make achievable goals to get yourself there. There will be sacrifices and emotions along the way but the outcome will out weigh that.

20% down on a $500K house is $100K and figure a mortgage of $2300 a month. Utilities, HOA, other bullshit you're probably $3000 a month. For the record Romoland isn't terrible. Just the place I chose to live was. That whole area is pretty neat and has some cool properties.


What part of Romoland? One of the few towns, along with Nuevo, where one street can be $700k+ homes and the next street is $50k dumps.
 

grumpy88

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Two words to the younger ones saying it cant be done today . Dave Ramsey . Its not about today but building your financial pyramid to have a strong foundation . We have become generations of i want it now and thats not healthy .
 

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Its not effen easy...
Single income family ...
3 kids (19,12,6)

We got lucky in 2018 when at that time I thought I overpaid for a house for $485k.... Interest rates got so low my house payment is only $300 more than my rent payment was in 2018 before we purchased the house. I was really discourged when we were looking at homes since we needed a 4 bedroom and that just takes you to a whole new price bracket and with that priced us out of living in the area we were renting. We moved to Upland (20 miles further inland) from previous address and had to commute the kids to school at their old schools in West Covina for 2 years to keep them in the same school till graduation/promotion. to save $, I made a schedule change at work to be able to pick up both kids so my wife wouldn't have to spend miles/$$ on gas doing the round trip pick ups since I was passing through on the way back from Downtown LA... Getting up for work at 2 am. and having to pick up kid #1 at 230 pm. and the 2nd kids at 430 pm after practice and getting home at 515 pm. for 2 years sucked..but saved us about $150 per month in fuel and wear and tear. But everything has leveled out now since 1 has graduated and the other transferred to a local school.
No need for you to be embarrassed...its a legitimate thought/struggle you share with a shit ton of people. Only suggestion I would give is that if you are alone...buy yourself something you can afford...something you can call home regardless of how it looks or area and just live the "suck" that comes with it. Adjust your schedule/life if needed but "own" it and that will create some peace... AS LOF has mentioned... owning is a form of rent control.. so buy a shack that is 600 Sq. Ft... who cares just buy it.... Need to commute?? Go for it...don't fear it ..embrace it and use it as a driving force to create some sort of positive change... Good luck...I feel you and have been in your shoes.. And our family income was nothing to be proud of and wasn't six figures when we purchased the house in 2018. We just don't go crazy and blow money or are in heavy debt.
If someone is going to invest in a house that has "suck", get the suck house in the nicest neighborhood you can afford. A suck house will go up in value around other nice houses in the neighborhood as you make it nicer. A suck house will never go up in value significantly in a suck neighborhood no matter how nice you make it.
 

Xtrmwakeboarder

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Two words to the younger ones saying it cant be done today . Dave Ramsey . Its not about today but building your financial pyramid to have a strong foundation . We have become generations of i want it now and thats not healthy .
I love Dave Ramsey based on principles, but following his advice in TN is a shitload easier than in CA.
Sure, everyone should buy their house cash or get a 15 year mortgage. Rigggghhht.

I’m trying to move out of CA so I get the, “move out of state” argument, but some people actually want to stick with their friends, family, job, etc. Some people have obligations to take care of, like a sick or dying parent. It’s not just pick up and move.
 

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What part of Romoland? One of the few towns, along with Nuevo, where one street can be $700k+ homes and the next street is $50k dumps.
Mapes and Menifee Rd. I really like Nuevo and probably would've ended up there if I was able to afford to stay in Ca.
 

rivrrts429

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Mapes and Menifee Rd. I really like Nuevo and probably would've ended up there if I was able to afford to stay in Ca.


I’m not too far from where you were. One of my branches is at Mapes and Trumble by the water district.
 

grumpy88

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I love Dave Ramsey based on principles, but following his advice in TN is a shitload easier than in CA.
Sure, everyone should buy their house cash or get a 15 year mortgage. Rigggghhht.

I’m trying to move out of CA so I get the, “move out of state” argument, but some people actually want to stick with their friends, family, job, etc. Some people have obligations to take care of, like a sick or dying parent. It’s not just pick up and move.
Daves teaching start at personal financial responsibility . Has nothing to do with where you live . My last house was in the hood in canoga park . Not because i thought it would be cool to watch the p.d. all night but it fit my budget . Not a personal attack just the bases of his program work universally .
 

DLC

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You can always buy a house and rent it & stay where you are at. You would still be in the real estate world, just different …. save for another renter and keep going!

Buy a retirement home out of state say havasu and rent it VRBO or full time rent let someone else make your payment. Home ownership has a lot if hats!

Pool some cash with family / friends as a rental make it a business…

Lots of options



QUOTE="Carrera205, post: 4140611, member: 17136"]
I’m a millennial and can’t buy a home. And it’s not because I can’t not have the newest iPhone or because I drink Starbucks everyday. It’s because homes in my area are 700k+ for a pos and people are buying them cash or having bidding wars. I choose to rent because my kids are going to go to a 9/10 school on pch and there’s almost zero crime in my area. I had a home a nice home and sold it because the school district was shit and the city was full of crime and gang members. And where I worked didn’t provide health insurance for my family only myself. I could go out of state but what I do pays much less. So we’d be in the same situation but hours away from family so what’s the point. I could buy a home 2 hours from work. Spend 4 hours of my day in traffic and miss my kids growing up. So instead I divert as much as I can into my retirement and piss away 3k a month in rent. It sucks but this is SoCal and this is the way it goes for millennials. There’s dudes I work with that bought houses in a tract 10-15 years ago for 200k. “Starter homes” they call it. Now those homes are valued over 800k. Insanity. I’m a blue collar worker and almost topped out. Make the most in my line of work in pretty much the entire us but still can’t afford to buy where I live. Not all millennials are not buying because we blow money on useless shit. It’s because we can’t afford it because the prices have far outran the income for middle class workers. It’s easy to sit back and say this with a 1400 dollar mortgage in chino hills. The reality is we weren’t in the work force or were just starting when homes were cheap enough to enter and didn’t have the capital yet to buy. Now that we’re at the time we can buy shit is retarded expensive and I refuse to be house poor.
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BHC Vic

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It’s crazy how fast norco prices have exploded in the past year. I’ve been watching the market in both Norco and Canyon Lake for the past 2 years and about a year ago a 3-2 house was 450-500 in both neighborhoods but Norco has gone through the roof and Canyon Lake has stayed the same. Good luck to your neighbors but even in this market I think 725k will need to closer to a full acre.
Sold... neighbor wasn’t in a good mood this morning so I didn’t ask what it went for.
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BHC Vic

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I love Dave Ramsey based on principles, but following his advice in TN is a shitload easier than in CA.
Sure, everyone should buy their house cash or get a 15 year mortgage. Rigggghhht.

I’m trying to move out of CA so I get the, “move out of state” argument, but some people actually want to stick with their friends, family, job, etc. Some people have obligations to take care of, like a sick or dying parent. It’s not just pick up and move.
That’s where I’m at. I won’t leave my parents. Sounds like they are pretty willing to come to Texas with me though
 

riverroyal

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1.7 million for my house and I will throw in the pontoon!:)
 

Done-it-again

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I love Dave Ramsey based on principles, but following his advice in TN is a shitload easier than in CA.
Sure, everyone should buy their house cash or get a 15 year mortgage. Rigggghhht.

I’m trying to move out of CA so I get the, “move out of state” argument, but some people actually want to stick with their friends, family, job, etc. Some people have obligations to take care of, like a sick or dying parent. It’s not just pick up and move.

The move to TX for us is slow due to family.... It's a huge part, almost more than moving the business.

If it was just the wife and kids we would already by gone.... But more than likely we wouldn't be able to afford the area our lot it is in if that was the case.....
 

Xtrmwakeboarder

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That’s where I’m at. I won’t leave my parents. Sounds like they are pretty willing to come to Texas with me though
I wish mine would. Their quality of life would skyrocket substantially, but they want to be near the brothers/sisters they see maybe 3-4 times a year… I don’t get it, because it’s a 3.5 hour flight away, but oh well.

Maybe once we get our place in TX they will finally see how nice it is and cash in their chips
 

LargeOrangeFont

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Daves teaching start at personal financial responsibility . Has nothing to do with where you live . My last house was in the hood in canoga park . Not because i thought it would be cool to watch the p.d. all night but it fit my budget . Not a personal attack just the bases of his program work universally .

I’d argue his program has a lot to do with where you live. If you follow his principles and are trying to build wealth and become debt free you would not live in CA. And if you were choosing where to live, he would not advise you to live in CA.

If you make $60k in TN you can go buy a house for double your salary. You’ve got to make $100k minimum to find anything in So Cal that would be double your salary, and it would be a 3+ hour commute. Add in the wear and tear on your Dave Ramsey beater automobile and we won’t even talk about the gas prices associated with a 3 hour commute. Your $200k house payment turns into the feel of a $300k house payment with all the associated travel costs, time costs, opportunity costs, and quality of life costs.

This example assumes if you make $60k in TN you can make $100k here.. what if you make $60k here?

The basics do work universally, they are a lot harder to accomplish and take much longer living in CA.
 
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c_land

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This house of cards will begin to come down when the Fed begins tapering and raising interest rates. Even with their announcement of thinking about talking about maybe possibly having two rate hikes by the end of 2023, the markets are pissed.
 

bowtiejunkie

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I wish mine would. Their quality of life would skyrocket substantially, but they want to be near the brothers/sisters they see maybe 3-4 times a year… I don’t get it, because it’s a 3.5 hour flight away, but oh well.

Maybe once we get our place in TX they will finally see how nice it is and cash in their chips

We rarely saw my wife’s parents (her mom was 1.5hrs away, her dad was 30 minutes). Saw my side 3-4x a year (my mom a few times more). I just couldn’t see the value in staying put for 5 to 10 total days worth of visits a year. Flights/road trips could make those visits happen from Texas. So, off we went. Everyone is different though. I’m not a business owner, don’t do union work, and not tied to a state pension. Decision was easy once opportunity presented itself.

Our house in TX has increased 20% in one year based on actual sold comps. Crazy. I figure 50% loss from here is only 30% off purchase price and still above water. Works for my hillbilly expectations.
 

BHC Vic

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The deal he got was cut in half, so that is probably where the bad mood came from :)
Not exactly. He needs to give her around 200k. She actually makes more so she’s paying him 2k a month. Pretty crazy
 

LargeOrangeFont

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Not exactly. He needs to give her around 200k. She actually makes more so she’s paying him 2k a month. Pretty crazy

Odd deal. I would have kept the 200k and forgone the monthly... but who knows the real situation.
 

Bobby V

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That’s where I’m at. I won’t leave my parents. Sounds like they are pretty willing to come to Texas with me though
One of our best foreman is selling his house in Corona to move to Texas. Got a offer for 50K over asking price the other day. His brother is moving also. His mom who I went to high school with is moving in a year after she retires. He figures he is taking a 30% pay cut but will make it up in the cost of living. His older daughters are pissed since they are in high school.
 

Wedgy

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Talk about Mr. Toad's wild ride. Valued at $560000. That's nuts.
My Escondido pad... Ex sold in 2015.

Living the Dream with 10 yrs left? Ha! It was a good plan, c'est la vie..


I installed the Jacuzzi tub, and Tiled that house to the hilt. Concrete on the driveway. Hot tub in the back. View to the West.

Then you find the Family Law Attorney card on the computer table...

Left Van Diego for Texas in 2014. Lived in a B350 Xplorer Class B, 1 year.

I bought a Brick, 1367 sq ft on slab 3/1 1/2/ ba/1 on a 7000+sq ft city lot, for 82K in 2015. Valued over 110K today. Built in 1965, Trees line the wide lazy curving street. Quiet. Hot days now,, Cool at night. 3500 feet elevation.

All comps on my street are higher. City lots are $10K. Not this side of town though. lol.

Texas been berry berry good to me.

Currently in progress on a REFI from a USDA 4.5% APR into a 15 yr, Conventional @ 2.5% APR

God Bless Texas.
 

LargeOrangeFont

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One of our best foreman is selling his house in Corona to move to Texas. Got a offer for 50K over asking price the other day. His brother is moving also. His mom who I went to high school with is moving in a year after she retires. He figures he is taking a 30% pay cut but will make it up in the cost of living. His older daughters are pissed since they are in high school.

Pretty compelling move when you have a thicker wallet every month and a higher quality of life.

Did you tell him how good the weather is here?
 

Bobby V

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Pretty compelling move when you have a thicker wallet every month and a higher quality of life.

Did you tell him how good the weather is here?
He doesn't care about the weather. He's a different kind of a guy. Great fitter. He's looking for a home in a rural area. Likes to shoot his guns. Hope he doesn't scare off the cowboys with all his tats. :eek:
 

pronstar

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That’s where I’m at. I won’t leave my parents. Sounds like they are pretty willing to come to Texas with me though

My wife brought her parents with us.

They’re retired, fixed income, we’re living in a retirement apartment in Riverside. Could barely afford to run the AC.

So they move to a town called Ferris, just south of Dallas and about a 20 min drive from our place.

They got a modest but brand new home, 1400 SF with builder upgrades, for $200k. Power is cheap enough that they can afford to run the AC. They’re money ahead and have a much better quality of life.

And with the crazy RE market here, they’ve got a nice bit of appreciation as well. They were home #30-ish in what was a sleepy development…and now they builders have announced 300+ homes are being built.


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EmpirE231

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pretty soon the average home in CA will be 1.5 million, and the only people left to buy them will be union employees lol


on a serious note....I wouldn't buy a house in this market UNLESS you really NEED a place to live.
 

C-Ya

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I hear you millennials...... it is a tough blow, compared to when many of us on these forums were your age. I can’t imagine. We certainly had it much easier when it came to real estate.

Here is my story. I grew up in The Southbay of LA. Prices seemed high at the time. I eventually sold my Southern California home and moved to Phoenix. When I first started shopping for homes in Phoenix, they seemed almost free. Seriously. I went from a 1800sf California home to a brand new 3400sf Phoenix home, for less than half the price of my SoCal home. It felt like winning the lottery. That was 30 years ago.

Here is my advice for millennials in SoCal........ MOVE! Seriously. There is no future in being house poor, even if you find someone to loan on 700k, which takes a very decent income. The reality is........ a house is one of the best investments you will ever make. Case in point....... Someone, who’s name I don’t remember, on these forums, said he made approx $1000 per week for over 20 years, when he sold his Orange County home. That’s why you do whatever you have to do, to buy a house. Future YOU will thank present YOU. If you coming from SoCal, much of the country will seem very affordable, comparably. Just my 2 cents....

My daughter just purchased her first home in Phx for 30k over asking price. I am just happy she is now in the game! It’s brutal right now.
 

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The afraid of moving away from parents thing goes over my head, if there is no significant reason to stay. If you are struggling or a slave to a house and there's better opportunity for you and your family, if you have one, then why not make a move on it? Seems a lot better to be able to live your life than be a slave to a house so you can be close to parents that are probably doing just fine because they bought at the right time. You know, live in a 2 bedroom apartment paying $2200 month to be close or move a few states over and have a 4 bedroom house with a $1800 month mortgage and a life. Also the house will be paying you to live there... With technology today you can talk and see each other daily and be on the opposite sides of the world.
When talking to people that have made a move across state lines they usually have followers... The followers are parents that at first weren't on board with their childs decision to move but after seeing what opportunities open up for their children they jump in on it to and a lot want to be closer to the grandkids. They cash out (sell) their house and buy a newer "last" house and have a bit of cash to have a little more fun in the golden years. Overall everyone is happy. The children are not slaves to the house, grandkids are growing up in a good area, grandparents have some cash.
 

BHC Vic

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The afraid of moving away from parents thing goes over my head, if there is no significant reason to stay. If you are struggling or a slave to a house and there's better opportunity for you and your family, if you have one, then why not make a move on it? Seems a lot better to be able to live your life than be a slave to a house so you can be close to parents that are probably doing just fine because they bought at the right time. You know, live in a 2 bedroom apartment paying $2200 month to be close or move a few states over and have a 4 bedroom house with a $1800 month mortgage and a life. Also the house will be paying you to live there... With technology today you can talk and see each other daily and be on the opposite sides of the world.
When talking to people that have made a move across state lines they usually have followers... The followers are parents that at first weren't on board with their childs decision to move but after seeing what opportunities open up for their children they jump in on it to and a lot want to be closer to the grandkids. They cash out (sell) their house and buy a newer "last" house and have a bit of cash to have a little more fun in the golden years. Overall everyone is happy. The children are not slaves to the house, grandkids are growing up in a good area, grandparents have some cash.
My dad takes my boys to baseball 5x a week. My kids see my mom almost everyday. She’s coming over right now to do family movie night and watch luka with them. We aren’t struggling. Some families are very close and others not as much. Everyone’s different
 
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