s/o could you live in an expensive city

Two Peas is Closing
Click here to visit our final product sale. Click here to visit our FAQ page regarding the closing of Two Peas.

Posted 4/2/2013 by cindosha in NSBR Board
 

cindosha
PeaFixture

PeaNut 1,202
August 1999
Posts: 3,165
Layouts: 32
Loc: Grand Blanc, MI

Posted: 4/2/2013 6:27:18 PM
i just read the post regarding living in expensive cities....

i always wondered how people afford mortgages like that in california. i have seen some dumps (and i mean dumps) in watts on the house flipper shows that go for 300k - 500k in some pretty scary neighborhoods. it seems like canada has some pretty expensive cities with expensive housing too, like toronto and vancouver bc......

there must be some pretty creative mortgaging going on there....is it that you have to have had sold another house to afford the down payment? how does one start out in a 500k house? is it big down payments or big house payments? how do people qualify for large loans when they are just starting out? the norm here is 20% down for a house for a conventional mortgage of 15-30 years.....

i'm not being nosy, i promise. i am just curious....

cindy


you don't take a photograph, you make it...ansel adams

cameras and chaos...my blog

my photography website

guzismom
Ancient Ancestor of Pea

PeaNut 31,617
March 2002
Posts: 9,964
Layouts: 59
Loc: southern new mexico

Posted: 4/2/2013 6:31:21 PM
With the right job, you can be approved for a jumbo mortgage, which is anything over $417,000. When hubby and I got our first house we only put 10% down and had a jumbo; this time we put more than that (much more) but still have a jumbo because of the expense of our house. Of course, my hubby is a physician and we can afford our jumbo mortgage payment; and it's REALLY jumbo since we are on a 15 year loan.

Back in the "boom times" people could be approved with nothing down and sometimes even no income guarentee; now, not so much. Hopefully the banks have learned their lesson. People, they will NEVER learn their lesson and always try to get more than they can afford...it's human nature.


Marilyn (now in New Mexico!!)
SCUBA diving and SCRAPPING Mom of two

LolaLayout
StuckOnPeas

PeaNut 544,018
February 2012
Posts: 2,407
Layouts: 1

Posted: 4/2/2013 6:32:32 PM
I have absolutely no idea how people who live in CA and like-priced places are able to own a home, but I was wondering the same thing as you are.

The cost is unfathomable to me.



*Stop the glorification of busy*

deesquared
BucketHead

PeaNut 24,210
November 2001
Posts: 625
Layouts: 3
Loc: BC, Canada

Posted: 4/2/2013 6:41:32 PM
Sometimes, you get lucky.

I grew up in the Vancouver area.
After getting married and finishing school, we moved up to Northern BC and bought our first house for about $120,000. Up north, you could get a nice, 4 bedroom home on a substantial piece of property for a pretty reasonable price.
This was in 2000.
In 2008, DH was offered a job in Vancouver. Our house was now worth double what we paid for it.
The market in Vancouver was also down. So, we were able to buy a decent, but older house in a nice neighborhood for about $500,000.
Our house is now worth close to $700,000.
But, the housing market in our neighbourhood is really off the charts crazy.
We were very lucky with the timing of our moves, and the house prices.

Most people I know who are starting out often live with their parents first, or even buy a house with their parents. It seems to be the only way to afford a house here, unless you make over $100,000 a year.

JBeans
Toast gazing is an art I do not possess.

PeaNut 200,953
April 2005
Posts: 8,639
Layouts: 157
Loc: Between Diaperland and Snotsville

Posted: 4/2/2013 6:46:52 PM
I know of some people who have purchased their parent's homes when they downsized. Otherwise, these people would struggle to afford the house they have now.

I guess some of it depends on the median income in the area. In Alberta, the median income ranges from mid to high $80k.
It also depends when you first purchased. Here, if you purchased before the boom and sold now, your house has appreciated by leaps and bounds.


Well Peas, I believe this thread has gone Thrusday.
"The Pot has not just met the Kettle, they are getting jiggy on the top of the stove." -Lanus

Rainy_Day_Woman
AncestralPea

PeaNut 369,799
March 2008
Posts: 4,028
Layouts: 0
Loc: Canada

Posted: 4/2/2013 6:48:31 PM
We live in a fairly expensive city (Toronto) and to be honest, either people make WAY more money than us, or there is some secret that we don`t know!

We hought a 1300 sq foot condo in the north end of the city, and really, it was the only affordable option we could find in an area with good schools. We bought a place that was $200K less than the mortgage we were pre-approved for. We aren't struggling, but there is NO WAY we could have actually managed the mortgage they were approving us for. I can't even imagine how stressful it would be if we had have bought according to what the bank said we could afford LOL! I imagine a lot of people get sucked into the sales pitch.

My friends that are a bit older than us bought before things were CRAZY expensive, so they have made a lot of money off their starter homes and this helped fuel their house purchases. It seems that for the area we wanted, we were just a couple of years too late to get anything affordable.

I also have friends that bought around the same time as us, who wanted the home and the yard and were willing to pay for it. I guess you do what is important to you, but they are definitely in debt and house poor. It was worth it for us to buy the smaller place- my mortgage and condo fees are much less than renting anywhere. Some of my friends put down the minimum, maxed out the 30 year mortgage and still have mortgages that are almost $4K a month and a gigantic chunk of their income. Even if I could swing that, it would make me feel sick to pay for it!

BethAnneM
Hermetically sealed for your protection

PeaNut 95,504
July 2003
Posts: 8,197
Layouts: 0
Loc: Cali Baby

Posted: 4/2/2013 6:48:34 PM
My exDH and I bought our house in So Cal during the downward turn in the market just before the big boom happened. We could afford the payment but did not have enough for the down payment.

We leased the home from the owner for a couple years and then purchased it with help from a creative broker. Probably couldn't do that kind of thing now but it worked back then.



ilovebuble
PeaFixture

PeaNut 539,539
January 2012
Posts: 3,850
Layouts: 0

Posted: 4/2/2013 6:55:59 PM
My husband and I live in San Diego and we bought an older house that was an eyesore to the otherwise nice street. We've put a lot of blood, sweat and tears into that house to raise the value. We also split the down payment, I saved the majority of my half and my husband sold his second car to get his. If we didn't have a decent sized down payment we would not have been able to afford it. Neither of us were interested in a brand new home and it was out of our price range too.

LeoGirl76
Children Want Your Presence, Not Your Presents

PeaNut 72,408
February 2003
Posts: 11,739
Layouts: 0
Loc: San Diego Suburbs

Posted: 4/2/2013 7:02:06 PM
My house is in a suburb of San Diego (15 miles inland from the coast). It cost $424,000 in September of 2008 when we bought it (after the housing boom). We only put about $20,000 down so we did not do a jumbo loan. We had no money to roll in, it's our first house we've owned.

My house is 1850 sq feet. 4 bedrooms and 3 bathrooms. Built in 1998 in a very nice subdivision with good schools. Our payment is about $2500 a month.

I do not think that is outrageous?? Maybe I'm just used to it.

sunny 5
PeaFixture

PeaNut 472,024
June 2010
Posts: 3,280
Layouts: 0

Posted: 4/2/2013 7:05:59 PM
we bought a home (at 12.5% interest) for $150,000... worse house on the block...way under value. spent $200,000 or so on fixes over the years..need to put another $20,000 into the bathroom this summer. now it is worth $900,000 plus.

we just kept refinancing...we pay about $2000 a month. rents on a similar house is $5000. people in this town who both work at hitec jobs...so income for a couple can easily be $300,000. and then there are a lot of very rich people who want to live here.

people buy small houses, in bad neighborhoods...and as the wealth of the whole town goes up...the neighborhoods get better. people live in small condos...you can get one for $4-800,000 for 1000 sq ft. a lot of young people come for a few years and move on..few families live here. then there are the families who inherit grandma's house...

tamhugh
Ancient Ancestor of Pea

PeaNut 12,875
March 2001
Posts: 8,668
Layouts: 11

Posted: 4/2/2013 7:06:09 PM
I have a friend who moved to an expensive area in CA. Their home here sold for around $300,000 and a similar home in their new town was 1.2 million. Her DH was heavily recruited for his new job, and his company apparently was willing to make up the difference for them. I am sure that his salary is also far better there than it was here.

Peabay
Happy now?

PeaNut 156,993
July 2004
Posts: 46,562
Layouts: 13
Loc: Connecticut

Posted: 4/2/2013 7:08:57 PM
My father gave us the money for the down payment on our first "starter" house (850 sq. ft. in a great school district in a desirable suburb of NYC.) We were able to sell that at enough of a profit to buy our next house in a desirable CT suburb. Neither house was a "showpiece" house, but are in great school districts.

So, it all goes back to a very generous gift almost 20 years ago.



_Betsy_
AncestralPea

PeaNut 153,004
June 2004
Posts: 4,431
Layouts: 22

Posted: 4/2/2013 7:12:31 PM
Expensive city dwellers also spend a higher percentage of income on housing than people in other areas. We may spend 40% of income on housing, whereas in other areas, people may spend 25%-30% or whatever.


BethAnneM
Hermetically sealed for your protection

PeaNut 95,504
July 2003
Posts: 8,197
Layouts: 0
Loc: Cali Baby

Posted: 4/2/2013 7:13:44 PM

My house is 1850 sq feet. 4 bedrooms and 3 bathrooms. Built in 1998 in a very nice subdivision with good schools. Our payment is about $2500 a month.

I do not think that is outrageous?? Maybe I'm just used to it.




Yes, you are just used to it. Most people in the rest of the country do not have mortgage payments like we do in California.

Like I have said before, it's all relative.



OCLittleFlower
BucketHead

PeaNut 541,890
February 2012
Posts: 697
Layouts: 38
Loc: Orange County, CA

Posted: 4/2/2013 7:29:51 PM
We live in Southern CA on one income. We bought a house that was a bit of a fixer, and my husband has a long commute. But it's a decent sized house in a nice area, and we make improvements all time.


Cupcake ipsum dolor sit.

B. Pea
BucketHead

PeaNut 453,111
January 2010
Posts: 622
Layouts: 0
Loc: midwest

Posted: 4/2/2013 7:32:22 PM
Also, a lot more people rent in these expensive area because they just can't afford to purchase. I know the op was about home owners, but renting is very common here. I'm in SF Bay Area.
Uploaded with iPhone client

Luvnlifelady
Ancient Ancestor of Pea

PeaNut 289,166
December 2006
Posts: 19,658
Layouts: 7
Loc: Southern California

Posted: 4/2/2013 7:48:45 PM
We were able to buy in Southern CA because of my DH. He lived at home before getting his own detached house at the age of 25 (2 bedroom, 2 bath in new development).

We married and stayed there until I was pregnant with our 2nd child. We then sold high and bought another. Had some issues so we had to sell high again and rent for a year. Bought again...3 years later, sold high but also bought high.

Then, the fallout. We have equity and things are improving, but it's still a tough market. I don't really see my kids being able to afford to live here on their own.



biochemipea
likes shiny things

PeaNut 114,614
November 2003
Posts: 22,668
Layouts: 499
Loc: Ontario, Canada

Posted: 4/2/2013 7:53:48 PM
I've wondered the same thing.
Even rent in those cities is expensive -- the cheapest a colleague found in a community on the outskirts of Toronto was 1800$/month for a very small duplex. That is insane!







See things that shine on Pinterest, Instagram, and YouTube.


MergeLeft
Typical Liberal

PeaNut 221,236
August 2005
Posts: 21,421
Layouts: 67
Loc: Houston

Posted: 4/2/2013 7:55:26 PM
Ha ha ha.

No.


Uploaded with iPhone client

melanell
Ancient Ancestor of Pea

PeaNut 26,836
January 2002
Posts: 19,090
Layouts: 86

Posted: 4/2/2013 8:47:30 PM
I always assume (eek, I know!) that the salaries are relative to the cost of living.

Not that everyone has an amazing salary, of course, but that the same job in an expensive city would pay more than the same position in some middle of nowhere, teeny little town, kwim?


So if someone says that they make X amount of money a year and that sounds fabulous, but they live in NYC, then apples to oranges, because what they pay for things, in comparison to us, who live 2.5 hrs. outside of NYC, is so much higher than what we pay.

Which, of course, is one reason why you find people willing to make long commutes....to get the job in the city, but not have the living expenses.



cindosha
PeaFixture

PeaNut 1,202
August 1999
Posts: 3,165
Layouts: 32
Loc: Grand Blanc, MI

Posted: 4/2/2013 8:58:33 PM

Not that everyone has an amazing salary, of course, but that the same job in an expensive city would pay more than the same position in some middle of nowhere, teeny little town, kwim?



i was wondering about that too!! i figured that the salaries must be much more in a state where the cost of living is high....

wow!!! just wow!

cindy


you don't take a photograph, you make it...ansel adams

cameras and chaos...my blog

my photography website

cmpeter
PEAceful Pea

PeaNut 14,521
April 2001
Posts: 37,572
Layouts: 31
Loc: Washington State

Posted: 4/2/2013 9:05:00 PM
For us, it was a good real estate market. Sold our house in Seattle for a profit and bought a fixer in So Cal. Fixed it up and flipped it and bought another house that needed some TLC in So Cal. Fixed that one sold for a profit and moved back to Seattle. Now of course the market won't allow that at least in our area. But, it allowed us to make larger down payments that kept our mortgage manageable.


Cindi

Katybee
PeaFixture

PeaNut 379,678
June 2008
Posts: 3,789
Layouts: 16
Loc: Enjoying the summer sun!

Posted: 4/2/2013 9:07:23 PM
I used to live in SF. My rent for a tiny, tiny 1 BR apt was more than the mortgage for my HOUSE in TX. 10 years later, the rent for that same apt (I look it up on Craig's List sometimes) is almost DOUBLE what it was ($2300 now). Yes...my salary as a teacher in SF was higher--I took a significant pay cut when I moved. But still, housing was a larger % of my budget. If I was still there, I'm not sure I could make it. Teacher's salaries have not risen much at all, but the cost of living has gone way up. (Of course, if I was in the same apt, I'd benefit from rent control.) I did love my tiny little apt. It was worth living in such an incredible city.



zombie*grrl
WHO PUT A DICK IN THIS BOX?

PeaNut 281,551
October 2006
Posts: 5,246
Layouts: 0

Posted: 4/2/2013 9:27:40 PM
I could, but I don't want to. As I mentioned on another thread, my DH is an engineer and I am an RN so we can pretty much go wherever we want to. I really have no desire to live in an expensive area though. It's hard enough to swallow the difference in housing costs in PA (where we're moving) to where I'm from (IA). I'd stay in Iowa all my life if I could, but DH relocated for a new job.

CarolT
Slow Poke Pea

PeaNut 857
June 1999
Posts: 6,168
Layouts: 37
Loc: Central Florida

Posted: 4/2/2013 9:32:15 PM
My cousin and her husband live in a lovely, big home in an expensive part of northern California. They both work for the state, and they are very middle class. I'm sure their home is worth more than a million dollars now, but it was his parents' home, and they assumed the mortgage after his mom passed away 20 or so years ago.


*********************




obsidian
StuckOnPeas

PeaNut 300,909
March 2007
Posts: 2,338
Layouts: 1
Loc: Waikato

Posted: 4/2/2013 10:37:50 PM
We bought a house in the middle of nowhere. While I enjoy expensive cities the pressure for tear downs is so intense we have never been able to afford one.

B. Pea
BucketHead

PeaNut 453,111
January 2010
Posts: 622
Layouts: 0
Loc: midwest

Posted: 4/2/2013 10:51:12 PM
Not that everyone has an amazing salary, of course, but that the same job in an expensive city would pay more than the same position in some middle of nowhere, teeny little town, kwim?
**************

We moves to the Bay Area from the Midwest. It was a job move for DH. He received a 15% pay increase for the CA job. When we factored in the cost of living differences, it was as though we took almost a 20% hit. Housing alone went up 66% for less than 1/2 the square footage.

I suppose sometimes it evens out, but it wasn't an even trade for us unfortunately.
Uploaded with iPhone client

LisaEDesign
PeaAddict

PeaNut 439,654
September 2009
Posts: 1,583
Layouts: 265
Loc: NC

Posted: 4/3/2013 2:39:26 PM
No, unfortunately not. No one told me and I guess I didn't have the sense to figure it out when I was young. You need to start your work life in an expensive part of the country and then retire somewhere cheap (like where I live) not the other way around.


Visit me at my blog
My YouTube Videos LisaEDesign

Pea-T-A-Mom
Scrapmaven is stalkin my Kitteh!

PeaNut 159,334
July 2004
Posts: 14,077
Layouts: 0
Loc: Left Coast

Posted: 4/3/2013 2:53:13 PM
We bought our house 17 years ago, just when the CA market was starting to heat up. After about two years, similar houses in our neighborhood were selling for double what we paid. There is no way we could have afforded to buy it then.

We've refinanced a couple of times, bringing our interest rate and payment down significantly, but we continue to pay our original mortgage amount, putting the overage directly to principal.

Still, the house across the street rents for approximately double what we pay each month to the bank. It's crazy!

We're very lucky that we bought when we did.


~.~.~.~.~.~.~.~.~.~.~.~.~.~.~.~.~.~.~.~.~.~.~.~.~.~.~.~


Denda
Ancient Ancestor of Pea

PeaNut 341,917
October 2007
Posts: 5,433
Layouts: 1
Loc: Texas

Posted: 4/3/2013 2:55:33 PM
No, but I don't want to live in any kind of city


********************************Lorenda****************************************
~~~~Hope is the feeling we have that the feeling we have is not permanent.~~~~


busypea
boring + nerdy

PeaNut 52,817
October 2002
Posts: 27,974
Layouts: 145
Loc: Oregon

Posted: 4/3/2013 3:01:23 PM
My company takes work location into account when determining salaries, so I know approximately how much more I would make if I had my same job at the same company but in, say, San Francisco.

I don't see how we could own a home in that area on my current salary. We probably could own something modest in a decent - but not prime - area with the location adjustment, but it would be MUCH tighter than we would be comfortable with. So, unless there was a *really* huge wage increase, I would not want to live in a more expensive part of the country. We like having an affordable home and having more of our budget for savings and lifestyle.

Dalai Mama
La Pea Boheme

PeaNut 49,641
September 2002
Posts: 26,337
Layouts: 85
Loc: Drunk on the lawn in a nuclear dawn

Posted: 4/3/2013 3:01:50 PM

We live in a fairly expensive city (Toronto) and to be honest, either people make WAY more money than us, or there is some secret that we don`t know!
Luck. We bought a semi-detached just off the Danforth in 2002 - very small, two bedrooms, unfinished basement, a real starter home.

The summer we decided to upgrade (two and a half years later), the real estate market in our neighbourhood went nuts. We sold for twice what we bought it for and bought a house almost twice the size (still semi-detached) for only $60K more. Apparently the sellers' broker hadn't gotten the memo about the Danforth boom (she was from outside the city) and had priced it so low that people assumed that there was something wrong with it.


Jo Mama

***********************************

Gotta kick at the darkness 'til it bleeds daylight. - Bruce Cockburn

The knack of flying is learning how to throw yourself at the ground and miss. - Douglas Adams


eebud
Doxie Pea Mom

PeaNut 52,841
October 2002
Posts: 33,484
Layouts: 25

Posted: 4/3/2013 3:27:51 PM

Not that everyone has an amazing salary, of course, but that the same job in an expensive city would pay more than the same position in some middle of nowhere, teeny little town, kwim?


My brother's company was moving his group from an Austin suburb to LA. He worked out there for a few months and then the company decided to move everyone. He spent time checking out the area, looking at houses, etc. If he moved, he was going to get a 25% increase in pay. He said that to afford a house in a similar neighborhood, house much smaller, it was going to be close to a 2 hour commute to get to work and back. He told the company that he understood if they had to lay him off but he was not going to move. Lucky for him, they really wanted to keep him and they found him another position with the company. He still has a 5 minute commute, nice house, nice neighborhood, and is very happy he didn't move.





Hans on left, Bud in middle, Gretchen on right

DanielaC
PeaNut

PeaNut 271,437
August 2006
Posts: 60
Layouts: 82

Posted: 4/3/2013 3:54:28 PM
I live in Northern California about 40 minutes outside of SF, enough to where we have deer and turkeys roaming in our open space backyards, great schools, etc. My husband is an attorney in SF.
I know our house is well over 1 million. Its not a mansion by any means(normal 4 bedrooms, 3 bath, 3 car garage, built in the 70's). We were lucky enough to get this house during the downturn, but we've worked our way up. We've rented, we owned two other smaller homes and have sold them to "move up". There is no way we could have gotten this one without those steps. It just takes saving and hard work just like in any other part of the country but salaries are larger.
California might be expensive, but there is nowhere else in the country I'd rather live. I can go to SF for a night out on the town, drive 2 hours and get snow, and we get 80-100 degrees in the summer, live in the nicest area and I love it here and never want to leave. Its all relative to where you grew up and where you want to be.



bizzymumma
I sense impending mayhem.

PeaNut 51,520
October 2002
Posts: 19,670
Layouts: 47
Loc: Beautiful BC

Posted: 4/3/2013 4:29:02 PM
We live about an hour east of Vancouver and our 30 year old 2100 sq. ft house is worth about $400K. Like some above, we were lucky in that we bought our first house 20 years ago with a $5K down payment loan from our parents, and have been able to ride the market with greatly increased equity over the years.

Many new houses around here now have built-in legal suites as mortgage helpers, and there are TONS of townhouses being built on the large lots that used to have old small homes on them. The minimum down payment is 5%. You can get a nice newish townhouse for $200K here.

Right in Vancouver, many people rent their whole lives, especially if they're single (like my sister), or start by buying a small apartment.

The saving grace is once you're in, you're in, and property values won't likely ever decrease here because of the constrained amount of land - ocean to the west, mountains to the east, and only a very small beautiful valley that has a lot of land locked away for agriculture. Thus the high land values, and solid investment in property. Even with the big "crash" a few years ago, values here only dipped briefly by less than 10%.


~ ~ ~ ~ ~ ~ ~ ~ ~
Laurie

"Every day do something that will inch you closer to a better tomorrow."
Doug Firebaugh


desertpea
StuckOnPeas

PeaNut 359,474
January 2008
Posts: 2,829
Layouts: 41
Loc: Moving!

Posted: 4/4/2013 12:44:41 AM
Inherited first property in major city, lived in it for a few years & fixed it up. Sold it, bought property with proceeds in another major city, sold that at the market peak (when anyone with a pulse can get a mortgage, that is when you sell).

Rented for a little while waiting for market to approach bottom in new location, then bought much less than we could afford. Now we're moving to a place overseas that is going to be much more expensive, but we really have no choice because the job market there is amazing.

The key is to live beneath your means whenever possible.

PeawithChemistry
PeaFixture

PeaNut 169,980
September 2004
Posts: 3,522
Layouts: 23
Loc: Washington, DC

Posted: 4/4/2013 6:53:54 AM
I live in a neighborhood in an expensive city where starter homes go for $700-800k for a two bedroom rowhouse with about 1200 sq. feet. A three bedroom rowhouse starts at $800-1M with about 1500-2k sq. feet.

The late 20-somethings who buy in my neighborhood are usually DINKs with combined incomes in the range of $300-400k per year. I know that sounds like a lot, but it's not that hard to do if you have two well educated professionals in well paying fields (JD, MBA, etc). The early 30-somethings who can afford to buy here are usually making a little less, perhaps with one government or NGO salary.

Those couples with two government salaries, probably bringing in ~$200ish per year combined, usually can't afford to buy until their late 30s without help from their parents, etc. Many in that situation choose to buy in the burbs where it is cheaper, or in gentrifying parts of the city that are sketchy, such as Trinidad or Anacostia.

Frankly, those with lower paying jobs don't live here unless they've inherited money or property, or bought a long time ago. For insance, my neighbor is a cook and bought his house 20 years ago for $200k. The house would sell to a flipper for $500k today (probably in a bidding war for cash with no inspection contingency), and then be resold for $850k or so. However, you have to realize that he bought in a bad neighborhood in the days of Marion Barry, when there was a crack epidemic and DC was the murder capital of the nation.

I think people get used to the prices because rent is sooooo high. A reasonable two bedroom apartment in a nice part of the city runs $2500 or so per month. You can find places for less, of course, but then you're often dealing with roaches and bedbugs, long commutes, or sketchy/unsafe neighborhoods. Housing here is a challenge.

Annabella
Leads a Charmed Life

PeaNut 43,843
July 2002
Posts: 44,159
Layouts: 46
Loc: East Coast

Posted: 4/4/2013 8:04:44 AM

My house is 1850 sq feet. 4 bedrooms and 3 bathrooms. Built in 1998 in a very nice subdivision with good schools. Our payment is about $2500 a month.



That amount will get you a one bedroom 700sqft average but new condo downtown where I live. I think it just boils down to income levels around the country.




UkSue
Ancient Ancestor of Pea

PeaNut 428,374
June 2009
Posts: 5,008
Layouts: 2
Loc: Greater London

Posted: 4/4/2013 8:18:08 AM
I live close to London and this area has always been and will always be very expensive to buy into. My daughter and I were only discussing yesterday that she is unlikely to ever be able to afford to live around here because of sky high rent and house prices. It makes me really sad.

Back in the 80's my first husband and I bought a huge converted flat ( bottom half of a large Victorian house) and did some work on it ourselves for minimum cost but maximum effect. We sold it 20 months later for over double what we purchased it for. We couldn't find a 'doer-upper' that we liked and were worried the market might suddenly drop, so we sold and bought a nice house which was a bargain but needed nothing doing to it. The market was still going up, and we sold that 2 years later at double to buy the house I currently own. It was a tiny 2 bed bungalow in a lovely area with huge garden, great schools etc. we converted the loft to add 2 bedrooms and a bathroom for cost of materials only (£5,000!) my ex was really fantastic at DIY. When I bought him out with my second husband, we added a rear extension to add a further bedroom, larger kitchen and dining room.

The house is now worth 4 times what we bought it for, and if I was buying now, I simply couldn't afford it, but am lucky that we always invested every penny of the equity each time as the down payment on the next place we bought.

Even graduates around here ( like my daughter) are working in places like McDonald's whilst doing unpaid internships. My DD is 23 this year, having completed a 4 year degree, and she is earning peanuts with no early prospects of earning the sort of money to buy even a tiny flat around here.

I would imagine that is the same in many places all around the world now.


It's not the passage of time that heals. It's what you do with that time.

LeoGirl76
Children Want Your Presence, Not Your Presents

PeaNut 72,408
February 2003
Posts: 11,739
Layouts: 0
Loc: San Diego Suburbs

Posted: 4/4/2013 9:39:22 AM

That amount will get you a one bedroom 700sqft average but new condo downtown where I live. I think it just boils down to income levels around the country.


Exactly! It's because I live so far inland in another town. In San Diego city limits, a house like mine would be triple or quadruple. Even more in coastal zip codes. I chose to live way inland to get more house for my money.
Show/Hide Icons . Show/Hide Signatures
Hide
{{ title }}
{{ icon }}
{{ body }}
{{ footer }}