Need financial feedback from you guys.
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I have a really nice home in Natomas, and there is no way I could afforded it on my salary without the equity I brought over from a house I sold in Vacaville. My pay has gone up about 2% per year each of the last 3 years BUT I make about 1/2 what I did when I bought the house in Vacaville in 1999. I don't think I could afford the house I live in AT ALL even with the old home equity at todays prices.
Here are some numbers.
Bought home in Vacaville, 1999 - $168,000
Sold Vacaville Home in 2003 - $299,000
Bought Home in Natomas 2003 - $365,000
Comparable homes in my hood now selling for $500-$650k (2700 Sq Foot, 40k in upgrades, integrated surround sound, bathroom Zone 2 speakers, ethernet cat 6, highest end cabinets, upgraded tile and carpet, corner lot, premium elevation, landscaped back yard)
Here are some numbers.
Bought home in Vacaville, 1999 - $168,000
Sold Vacaville Home in 2003 - $299,000
Bought Home in Natomas 2003 - $365,000
Comparable homes in my hood now selling for $500-$650k (2700 Sq Foot, 40k in upgrades, integrated surround sound, bathroom Zone 2 speakers, ethernet cat 6, highest end cabinets, upgraded tile and carpet, corner lot, premium elevation, landscaped back yard)
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Originally Posted by -j-
Salty,
Sorry I was not very detailed. We did make a deposit on the home. We are just trying to find the best way for the financing. It may be the end of my having a Subaru for now though. My bugeye will be on sale soon I think.
Sorry I was not very detailed. We did make a deposit on the home. We are just trying to find the best way for the financing. It may be the end of my having a Subaru for now though. My bugeye will be on sale soon I think.
No Problem. Well if you need help with the financing i'm a PM away.
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Originally Posted by illy
I have a really nice home in Natomas, and there is no way I could afforded it on my salary without the equity I brought over from a house I sold in Vacaville.
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Also, I just wanted to throw this in the ring for discussion. I used to work for a guy, lets just call him "Wally" and he was what I liked to refer to as a "Canary in a Coal Mine" meaning, whatever bandwagon he was jumping ON you would be wise to jump off. For instance, he started a "dot com" e-business type company in September of 2001, how do you think that went? Anyway, I found him on the web the other day and he is doing real estate investment, and another report showed the number of people taking their real estate exams has climbed dramatically. It all points to this run being over, soon. I don't think housing prices are going to drop dramatically or at all, but I think the get rich quick aspect is over with.
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Originally Posted by illy
Also, I just wanted to throw this in the ring for discussion. I used to work for a guy, lets just call him "Wally" and he was what I liked to refer to as a "Canary in a Coal Mine" meaning, whatever bandwagon he was jumping ON you would be wise to jump off. For instance, he started a "dot com" e-business type company in September of 2001, how do you think that went? Anyway, I found him on the web the other day and he is doing real estate investment, and another report showed the number of people taking their real estate exams has climbed dramatically. It all points to this run being over, soon. I don't think housing prices are going to drop dramatically or at all, but I think the get rich quick aspect is over with.
I hope so. Everyone and their mothers think they can become Real Estate moguls overnight. Its really sickening how everyone's getrichquick schemes are really hurting the average workers ability to buy a house.
I mean, I'm a software engineer. I should be able to buy something with my salary. I'll be lucky if I could afford a townhouse/condo in a bad neighborhood 30 minutes away from my work at the rate its going.
I mean, I'm a software engineer. I should be able to buy something with my salary. I'll be lucky if I could afford a townhouse/condo in a bad neighborhood 30 minutes away from my work at the rate its going.
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Originally Posted by nKoan
I hope so. Everyone and their mothers think they can become Real Estate moguls overnight. Its really sickening how everyone's getrichquick schemes are really hurting the average workers ability to buy a house.
I mean, I'm a software engineer. I should be able to buy something with my salary. I'll be lucky if I could afford a townhouse/condo in a bad neighborhood 30 minutes away from my work at the rate its going.
I mean, I'm a software engineer. I should be able to buy something with my salary. I'll be lucky if I could afford a townhouse/condo in a bad neighborhood 30 minutes away from my work at the rate its going.
Word. There's a reason I live with Matt; housing values are jsut unreal and I simply came in too late.
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Originally Posted by nKoan
I hope so. Everyone and their mothers think they can become Real Estate moguls overnight. Its really sickening how everyone's getrichquick schemes are really hurting the average workers ability to buy a house.
I mean, I'm a software engineer. I should be able to buy something with my salary. I'll be lucky if I could afford a townhouse/condo in a bad neighborhood 30 minutes away from my work at the rate its going.
I mean, I'm a software engineer. I should be able to buy something with my salary. I'll be lucky if I could afford a townhouse/condo in a bad neighborhood 30 minutes away from my work at the rate its going.
For example, I get a lot of hard working Mexican farm laborers that come into my office with Bi-lingual Realtors I often work with. They think that because they work 70hrs a week they should be able to qualify for a home. They should! But the harsh reality is they can’t because everything is out or their financial grasp. And not by a few thousand dollars either... we’re talking by a long shot.
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We bought our first house in Citrus Heights in 1994 for $135K
Sold it to my sister in 2001 for $180K
Bought our 2nd house in 2001 for $180K.
Had it appraised earlier this year...$390K & increasing 2%-3% a month.
Looking at getting another house for ~$450K.
In that time, our income has increased roughly 5%/yearly...which is << than 2%-3% a month increase in home value.
So, had we not purchased our first house when we did, I'm not sure where we'd be now.
Sold it to my sister in 2001 for $180K
Bought our 2nd house in 2001 for $180K.
Had it appraised earlier this year...$390K & increasing 2%-3% a month.
Looking at getting another house for ~$450K.
In that time, our income has increased roughly 5%/yearly...which is << than 2%-3% a month increase in home value.
So, had we not purchased our first house when we did, I'm not sure where we'd be now.
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Originally Posted by Salty
Thanks for your input, Matt. So it's safe to say that these prices are running the lower to middle class out of town with the exception of those that already invested.
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My income doesn't really go up in percentages. It all depends on you people (buying public). It has gone up just from moving to another dealership.
Bought house in Colusa in march (only place I could afford nice house)
245k for 3bedroom in a town of 5,000. Same house in Sac roughly 400k or more.
Payments of 1067 just a little more than rent was in rancho.
Bought house in Colusa in march (only place I could afford nice house)
245k for 3bedroom in a town of 5,000. Same house in Sac roughly 400k or more.
Payments of 1067 just a little more than rent was in rancho.
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Originally Posted by sonicsuby
Definitely. Together, Josey and I make nearly $100,000 a year and we couldn't afford to buy a house right now.
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Originally Posted by RussB
we're in the exact same boat. we're hoping to move to the Tucson area soon where the cost of living is much lower, but seems to be climbing at a pretty steady rate.
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Originally Posted by sonicsuby
Yeah we were looking at houses in Phoenix - 2400 sq ft for like $205k. I could buy a house there pretty much cash and get a job working super part time waiting tables or something while I finished up my degree at the University in Phoenix. Oregon has some nice housing prices at the moment too, but if you were gonna buy in AZ, now's the time. They're already taking off.
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Originally Posted by RussB
we're in the exact same boat. we're hoping to move to the Tucson area soon where the cost of living is much lower, but seems to be climbing at a pretty steady rate.