How can people afford to live in California?
The jobs don't seem to pay any higher than here. The math doesn't add up.
$200,000 will get you a decent new house here in a good neighborhood. Dumps like the one in the link go for less than $10K here.
http://homes.realtor.com/search/listingdetail.aspx?ctid=1557&ml=3&mxp=22&typ=1&sid=c8b1311c28424b22b78529aab496c19a&lid=1057729222&lsn=5&srcnt=13#Detail
2007-07-12 19:05:19 · 6 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
This property is in the ghetto. Rich people obviously don't live in these areas. Something doesn't quite add up if you have rich people living in slums. How can poor people afford 200K houses?
2007-07-12 19:20:31 · update #1
We do the marketing for a lot of realtors in California, and we fully understand the over-valuation of properties here. The short answer to your question is because real estate prices have spiraled across the country over the last ten years. Specific to Los Angeles, many one-time residents have fled town since they could afford to buy two better houses in Phoenix, Arizona for the price they could sell their one Los Angeles home for. Rich people love buying in L.A. because it's close to the beaches, lots going on 24/7, great weather nearly year-round. So put those two things together and you have double-wide trailers in Van Nuys going for what can get you a four-bedroom place in many parts of the country.
2007-07-12 19:15:55 · answer #1 · answered by SEO Expert 1 · 0⤊ 0⤋
That is ugly! Everyone is saying it: The value is in the land. That is true and more such is that this is a very low value neighborhood that needs a lot of improvement... that means there is LOTS of upside potential. Buying something like this under that premise, you're likely going to be in a good position over the long run.
Also consider that with a lot of these high prices you might be better off renting, L.A. homeownership, taxes and such come at a huge premium and that won't be going down in the future. If you buy now it's your hedge against further inflation. If not could save a lot in the short-run.
2007-07-13 05:47:28 · answer #2 · answered by M L 2 · 0⤊ 0⤋
I don't know how regular people can afford these kinds of prices. But, the $200,000 is basically for the property, not necessarily the house. Property is obviously at a premium.
2007-07-13 02:09:33 · answer #3 · answered by lyllyan 6 · 0⤊ 1⤋
IMHO, the price would go UP if the lot were cleared.
Leave it to the marketing types. Exterior Features: TV antenna. Almost peed myself over that one! (And I really do NOT want to know what shape the carpet is in.)
2007-07-13 05:46:45 · answer #4 · answered by Bostonian In MO 7 · 0⤊ 0⤋
They (or their families) probably bought those ugly homes years and years ago at a much cheaper cost. They just don't want to sell I guess - although I can't imagine why not!
2007-07-13 08:06:19 · answer #5 · answered by Cookie On My Mind 6 · 0⤊ 0⤋
land never loses value unless there is toxic waste on it.
2007-07-13 02:10:33 · answer #6 · answered by Anonymous · 0⤊ 1⤋