Owning a home in California

Published

Hi guys,

So we all know that the cost of living in California is high. I have been looking at the real estate market and can't seem to understand how I would ever be able to afford a home without working two jobs or having a roomate. For those of you who own homes/condos/lofts how do you deal?

If you feel this is too personal of a question PM, just curios to know if I will ever be able to afford my dream...

Thanks

Fear not! There is a way:

1. Save up for a down payment. You can do this by sharing an apt, reducing on the number of lattes you buy each week, etc.

2. Apply for BMR housing. Many cities (especially around the San Francisco Bay area) have first time home buyer programs. You attend some educational seminars (usually sponsored by the city) and then you can be put on the waiting list to obtain BMR (below market rate) housing.

For example, in Mountain View, CA (near Palo Alto and Stanford) the city likes to give preference to (public safety employees i.e. fire fighters), teachers, the people who have live in the same city at least 2 of the last 4 years (renters), and then people who have worked in Mtn View for at least the last 2 years. http://www.ci.mtnview.ca.us/city_hall/community_development/preservation/home_buying.asp

Here's some info for San Francisco:

http://www.sfgov.org/site/moh_page.asp?id=48083 (the program)

http://www.sfgov.org/site/moh_page.asp?id=17815 (some units available now)

And Palo Alto, CA:

http://www.paloaltohousingcorp.org/bmr/purchase/

If you do a Google search on BMR housing you can bring up housing for the city or county you're interested in. Some times, it takes a little bit of patience, but if you apply now, you'll be able to seek your housing dream with these programs! Good luck!

Palo Alto, San Francisco, and Mountain View are some of the most expensive places to live in Calif. There are a lot cheaper areas, like Northern Calif.

Up Vote Up Vote ×

I'd wait a couple of years and see how low prices go because I don't think we're anywhere near the bottom of this market yet. It's only going to get worse before it gets better ... which is great news for buyers ... but only if you wait. If you buy now you'll probably get into a negative equity situation because the downslide has just begun.

California is going to take the biggest hit because houses were so overpriced. Of course, it does vary by area but we're probably looking at up to a 40 percent price reduction in at least some areas so ... be patient and don't buy now. With all of these foreclosures (and more to come next year) ... there's going to be plenty of relative bargains eventually, IMO.

Up Vote Up Vote ×

What would you guys suggest when it comes to buying a foreclosure home in/near Los Angeles?

Up Vote Up Vote ×
Specializes in Transplant/Surgical ICU.

Do you guys think the housing market is gonna get worse by next year or is it at its worse now. My boyfriend's co-worker keeps urging him to buy a home now, but I think the market has not bottomed out yet. What do you think? Anyone waiting for a better market?

Up Vote Up Vote ×
Specializes in being a Credible Source.

I think it's going to get worse

The only way I would buy now is if I found just the right place... absolutely perfect. I wouldn't buy a typical tract home now and certainly not a condo.

If he's got a stable job, plans to stay put in the home for 5-7 years, has 20% down, and at least 6-12 months expenses in savings, then I'd say buy the right house. Otherwise, sit tight and keep working on the savings.

Up Vote Up Vote ×
Specializes in Transplant/Surgical ICU.

I agree. He has a stable job, but no 20% down payment. He was thinking about a condo to live in for a couple of years. He really is not ready, but most of his friends are talking about buying homes and I think its just getting to him.

I personally don't really like the idea of a condo anyway, a townhouse maybe but a condo just does not feel like home to me. Although I have to admit there are some really pretty ones.

Up Vote Up Vote ×
Specializes in being a Credible Source.
I agree. He has a stable job, but no 20% down payment. He was thinking about a condo to live in for a couple of years. He really is not ready, but most of his friends are talking about buying homes and I think its just getting to him.

I personally don't really like the idea of a condo anyway, a townhouse maybe but a condo just does not feel like home to me. Although I have to admit there are some really pretty ones.

Oh my goodness. A condo? For a couple of years? Bad, BAD investment... In fact, not an investment at all. Sounds like he's still caught up in the hype of the last few years.

In bad markets, condos take a much bigger hit than single-family homes and are much tougher to sell.

Buying anything "to live in for a couple of years" is not a wise use of money.

One caveat to that: IF he can get a GREAT deal on a distressed property so that his mortgage is within a couple percent of what rents are for comparable properties, it could work out well.

But boy, I'd advise him to be really, really careful and make sure he thoroughly understands the market that he's in.

Up Vote Up Vote ×
Specializes in Case mgmt., rehab, (CRRN), LTC & psych.

I think we'll be seeing more foreclosures in 2009, since the people who purchased houses in 2006 with 3-year ARM loans will see their low introductory rates adjust upward next year. Many of these people, who already owe more than their properties are worth, will not be able to afford the increased monthly payments.

A good number of the people who bought homes 2 to 3 years ago will walk away from their homes after not being able to afford their adjustable rate mortgages, setting the stage for more foreclosures in 2009. I'd personally wait at least 1 year to purchase a home in CA.

By the way, I feel blessed to have sold my Central Valley house at the right time in 2005. The house located next to my former home is currently on the market for over $100,000 less than my final selling price. The home prices have truly plummeted down the drain in my former city of residence since I moved away.

Up Vote Up Vote ×

Housing prices have dipped a little bit but still very expensive. My husband bought our home 27 years ago so we're lucky but I tell my college aged son not to count on living here. I have no idea how newlyweds or new college grads can afford to live on one income (even two) here let alone afford a home. A lot of nurses I work with have two jobs or do a lot of overtime, or live with a family member as co owner of the home. Lots of foreclosures and people who want to avoid foreclosure who want to sell quickly and avoid the blemish on their credit record.

Up Vote Up Vote ×
Specializes in Case mgmt., rehab, (CRRN), LTC & psych.
Housing prices have dipped a little bit but still very expensive.
Housing prices have become very affordable in my former city of residence. If one is willing to live in the San Joaquin Valley (Fresno, Modesto, Bakersfield, Stockton), thousands of beautiful properties linger on the market for less than $200,000. These same homes sold for $350,000 to $400,000 back in '05 and '06. In addition, the nursing pay is competitive in this region, although the weather is undesirable.
Up Vote Up Vote ×

Let me clarify. LA is still expensive and probably always will be for the average consumer. Inland areas or the places mentioned above are where you want to buy. My husband and I just looked at land around San Luis Obispo and it's still pretty expensive. Plenty of beautiful inland towns/cities if you don't mind the insane summer heat. We do.

Up Vote Up Vote ×

I haven't done much research into home-buying because I don't know where I will settle yet....honestly I don't even want the headache of buying then fixing up as things begin to break down, but it seems like you are a lesser person if you don't plan on getting a house.

Anyhow- I read a while back that condos are a good entry point, buy the condo then sell it after a while for a bigger down payment. Is this passe now or just not a good idea in CA?

I'm not buying yet I'm just curious. I'm a city girl no matter where I live- a spacious temporary townhouse (or something similar to a NYC brownstone) is what I like. Are homes like that substantially cheaper than the usual 3bed/2bath houses or does it not make a difference?

Up Vote Up Vote ×
+ Join the Discussion