House Payments+ Taxes
What percent of your net monthly income should go to the house payment and tax bill?
25%?
33%?
25%?
33%?
0
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quote:Originally posted by zipperzap
That is something I don't know, living in California the house taxes are extremely low if you've lived in the same house a long time. Same thing with house payments.
Bought the house in 1986/2400sq.ft./$139,000 (a steal - market was down) house payments were, and are, $1200/Mo (and change) and the taxes run about $1300 a year (thank you Calif. Prop. 13 - your house taxes never increase as long as you keep the house OR transfer it in a trust - too bad other state residents haven't passed that legislation - never have been able to understand that).
The house is worth a million+ now and I doubt I'd want to buy another today, and start all over again. I could do it, but my 'retirement' would be pretty much limited to feeding the ducks down by the lake at the ranch!
if you move to Southern California - bring lots and lots of money or make sure your (and your wife's pay) is in the six figures - or, at least, very high five figures!
[8D]
Zipper, I[:D] would sell my house ans move to Alabama[:D]0 -
quote:Originally posted by zipperzap
OK ... one more parting shot from me, too.
Most $500K and $1Mil homes did not cost that much to build.
Nay, brothers - they cost the same/nearly the same that your
homes cost to build at any given/comparable time.
Why do they cost a million, now?
It's location, location, location, period.
These houses have appreciated up from $70K back in '76 to $1Mil+ because they
are in the finest place in the good ole USA. if they were in West Undershirt, neat to
Hodunk .... they'd have appreciated up to maybe $140-$210K - same house -
different location. Matter of fact, I'll bet most of your homes are built with more than
2x4's, tarpaper, chicken wire and stucco - oh, and some latex paint on top. If you've
got a brick or stone house, you've probably twice the house!
It's location, location, location.
[8D]
You say Location, location, location.
I think SUPPLY AND DEMAND. I just can't understand how the demand can be that high. I think my employer pays an additional relocation fee for those that the ask to move to California to cover the addition in housing, but it is only for a limited number of years. Consequently, California locations are more likely to promote from within the facility or state.
I just can't imagine that people are paid 3 times my salary for a comparable job in California. Heck, can a couple rent a two bedroom apartment for $1,000?
SO how do they pay for those prices for a modest house?0 -
quote:Originally posted by Captplaid
So how can anyone afford a house in California???
Who would want to tie up money in a home in California? One could enjoy a larger home in the South with enough money left over for investment purpose. On a million dollar home I could find a comfortable larger home for $300k and have $700k to purchase rental properties . $700K rental would return around $100K income a year. On a million dollar home with 20% down (200k) the balance 800k payment would be around 5k a month plus tax and insurance.0
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