Southern California real estate ain't cheap. When you talk to people around here, you play the game of "how much is your home worth?"
We moved into our house about 5 miles from Pasadena's Rose Bowl in 1994 for $253,000. Today, it's worth around $750,000 for 2,300 sq ft and a detached two car garage. Oh, we do have a few fruit trees, too.
Maybe I can get a picture of it later today and post it on here.
Those of us who are parents often wonder, "what will our kids be able to afford?"
Another comment from real estate agent Julia Huntsman of Long Beach gives us some ideas on how to afford Southern California real estate - I suppose it could also be applied to San Francisco, Boston, and a few other places:
"Interest only loans are one option," she said. (although I don't think a good one unless you're living in a house for no more than a few years).
She knows of a case where the parents were moving out of California and sold their house to their daughter and son-in-law for the 1970s purchase price.
Julia also mentioned 30-year loans were first introduced during the Great Depression. Before that, the banks could call your loan in 5 years if it didn't want to extend it.
I know a couple who moved to Dallas last year and sold their small home near the Rose Bowl. It allowed them to pay cash for their home in Dallas, but their property taxes are a few times higher than So Cal. So, there's a bit of a trade-off.
2 comments:
The price of real estate is like that just about everywhere. I recently left a city, San Antonio, where the market was good up until this year. Now, back in CO the market is still outrageous. The house my parents paid 50K for in 1985 sells for $175K. Maybe not as drastic as places in CA but it's all relative. Good info!
Thanks. I appreciate your comment. I'm going to try tomorrow or Tues to take a pic of a $1,000,000 home in Los Angeles.
It's a neighborhood not many people might actually consider moving into.
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