I've lived my entire life in Ohio. Apparently, our cost of living is
pretty low, but as I see home values for CA homes, I just can't get
the numbers to resolve in my head...

Where I live, most folks pay around $100 per square foot for housing.
It varies a bit, but that's a good guideline. So, Joe and Jane Blue
Collar and the 2.2 kids might live in a 3 BR, 2 Bath house, around
1500 sq feet, and pay around $150,000 for that house. If they both
work, and have decent jobs, they probably make 50k-90k/year in
combined income, and mortgage payments are achievable with these
numbers.

I just one of those house fliipping shows on TV (on TLC channel, i
think), where a dude bought a 3 BR 1.5 Bath 1500 sq foot house for
$993,000... (and sold it after fixing it up for $1.5 million).

In our area, only executives, and perhaps lawyers or doctors would
live in a $993,000 house, and frankly, even that is stretching it. And
that house would have a couple acres of land, and probably have
8,000-10,000 square feet. (the 100/sq ft ratio probably breaks down at
the upper end of housing here).

So, the only way to resolve this for me is to learn that people made
about 5x what we do here for the same job... But, a quick scan of
monster.com shoes that's not even close to true.

So, how does this work? Where do Joe and Jane Blue Collar live in CA?
Do they have 200 year mortgage on that 1500 square house? Help me
understand how this works.

In article
,
Scott wrote:

I just one of those house fliipping shows on TV (on TLC channel, i
think), where a dude bought a 3 BR 1.5 Bath 1500 sq foot house for
$993,000... (and sold it after fixing it up for $1.5 million).

So, how does this work? Where do Joe and Jane Blue Collar live in CA?
Do they have 200 year mortgage on that 1500 square house? Help me
understand how this works.

Two factors...

1) there are a whole entire class of high paying jobs in southern
California that don't exist in Ohio.

2) there are a lot of people who are mortgaged up to their eyelids.

Just because someone will let you have a loan that big does it mean
that it is a good idea to take out a loan like that.

-john-

--
================================================== ====================
John A. Weeks III * * * * * 612-720-2854 * * * * *
Newave Communications * * * * * * * * * * * * http://www.johnweeks.com
================================================== ====================

"Scott" wrote in message

...So, how does this work? Where do Joe and Jane Blue Collar live in CA?


Roommates and cramming a lot of people in one house/apartment. This works
out great because everyone spends most of their time on the freeway and
working. So no one is ever home. So you get a nice big 4 bedroom house in
the burbs with swimming pool, etc. Six people living there and rarely anyone
ever there to enjoy the nice house. No one ever goes swimming because they
are always on the freeway or working.

In Hawaii where housing costs are in the millions, families add on to their
homes for their grown kids and their families.

In article ,
says...
In article
,
Scott wrote:

I just one of those house fliipping shows on TV (on TLC channel, i
think), where a dude bought a 3 BR 1.5 Bath 1500 sq foot house for
$993,000... (and sold it after fixing it up for $1.5 million).

So, how does this work? Where do Joe and Jane Blue Collar live in CA?
Do they have 200 year mortgage on that 1500 square house? Help me
understand how this works.

Two factors...

1) there are a whole entire class of high paying jobs in southern
California that don't exist in Ohio.

There may not be as many such jobs but they exist, even in Ohio.

2) there are a lot of people who are mortgaged up to their eyelids.

2a) There are a lot of people who are in the process of foreclosure.

Just because someone will let you have a loan that big does it mean
that it is a good idea to take out a loan like that.

However, you do have to live somewhere (though there are some places
it doesn't make sense to own).

--
Keith

On May 17, 11:09*pm, "John A. Weeks III" wrote:
In article
,

*Scott wrote:
I just one of those house fliipping shows on TV (on TLC channel, i
think), where a dude bought a 3 BR 1.5 Bath 1500 sq foot house for
$993,000... (and sold it after fixing it up for $1.5 million).
So, how does this work? Where do Joe and Jane Blue Collar live in CA?
Do they have 200 year mortgage on that 1500 square house? Help me
understand how this works.

Two factors...

1) there are a whole entire class of high paying jobs in southern
California that don't exist in Ohio.

Can you provide an example? What class of jobs is this? (I'm not
challenging your statement, just curious) And are you saying that the
people who have these high paying jobs at the end of the day go to a
1500 sq foot 3 BR house?


2) there are a lot of people who are mortgaged up to their eyelids.


So, assuming 6%, 30 year, $1,000,000 loan, Joe and Jane Blue Collar
are making $6,000/month mortgage payments? That's $72,000/year in
mortgage payments alone. That would require probably $120,000/year
salary JUST to make the mortage payments. Doesn't count utilities,
food, cars, or anything else. I'm going to go out on a limb here and
estimate that someone would have to make at least $300,000/year to
comfortably make payments, and pay for other life expenses. Joe and
Jane really make $300,000/year?

Just because someone will let you have a loan that big does it mean
that it is a good idea to take out a loan like that.

-john-

--
================================================== ====================
John A. Weeks III * * * * * 612-720-2854 * * * * *
Newave Communications * * * * * * * * * * * *http://www.johnweeks.com
================================================== ====================

On May 19, 10:16 am, Scott wrote:
On May 17, 11:09 pm, "John A. Weeks III" wrote:
1) there are a whole entire class of high paying jobs in southern
California that don't exist in Ohio.

Can you provide an example? What class of jobs is this? (I'm not
challenging your statement, just curious) And are you saying that the
people who have these high paying jobs at the end of the day go to a
1500 sq foot 3 BR house?

I'd guess he was talking high tech jobs: computer and software
engineering, etc.

But, yeah, cost of housing is whacked out in places. Years ago I
worked with a company in CA for a couple weeks and they were bemoaning
how hard it was to get people to move there even then because of the
high cost of housing compared to everywhere else. Then again just
recently I was talking to someone who moved to where I live (rural SE
Minnesota) and they were complaining about how much housing costs here
compared to where they were from (Texas IIRC).

In article
,
WDS wrote:

On May 19, 10:16 am, Scott wrote:
On May 17, 11:09 pm, "John A. Weeks III" wrote:
1) there are a whole entire class of high paying jobs in southern
California that don't exist in Ohio.

Can you provide an example? What class of jobs is this? (I'm not
challenging your statement, just curious) And are you saying that the
people who have these high paying jobs at the end of the day go to a
1500 sq foot 3 BR house?

I'd guess he was talking high tech jobs: computer and software
engineering, etc.

Actually, I was thinking of the entertainment industry. Actors,
directors, casting directors, entertainment lawyers, managers,
money managers for stars, plus all the high end stuff that goes
with it like luxury cars, expensive clothes, personal designers,
and the like. I once did a project for a financial planner in
Hollywood, and they catered to rock stars like Bonny Rait and
Tom Petty. The scope and scale of the money that is involved
is beyond what I comprehend. Granted, that is only a small
segment of our total population, but it happens to be mostly
concentrated in two areas of the US (LA and NYC).

-john-

--
================================================== ====================
John A. Weeks III * * * * * 612-720-2854 * * * * *
Newave Communications * * * * * * * * * * * * http://www.johnweeks.com
================================================== ====================

"Scott" wrote...
I just one of those house fliipping shows on TV (on TLC channel, i
think), where a dude bought a 3 BR 1.5 Bath 1500 sq foot house for
$993,000... (and sold it after fixing it up for $1.5 million).
So, how does this work? Where do Joe and Jane Blue Collar live in CA?

So, assuming 6%, 30 year, $1,000,000 loan, Joe and Jane Blue Collar are
making $6,000/month mortgage payments? That's $72,000/year in mortgage
payments alone. That would require probably $120,000/year salary JUST to
make the mortage payments. Doesn't count utilities, food, cars, or
anything else. I'm going to go out on a limb here and estimate that
someone would have to make at least $300,000/year to comfortably make
payments, and pay for other life expenses. Joe and Jane really make
$300,000/year?

Probably not. They probably bought the house 5 or 10 years ago when the
price was ~$200K, and could barely afford that. But now they CAN afford
the mortgage, but would not be able to afford to buy the same house today.

Joe & Jane don't flip houses, unless they bought one a while back and
started flipping when the entry price was much lower.

I bought a house in Seattle 12 years ago, and could easily pay the
mortgage. Today I'd have to struggle to pay for a mortgage if I bought the
same house at current prices. Good thing I don't want to move!

On May 17, 8:41*pm, Scott wrote:
I've lived my entire life in Ohio. Apparently, our cost of living is
pretty low, but as I see home values for CA homes, I just can't get
the numbers to resolve in my head...

Where I live, most folks pay around $100 per square foot for housing.
It varies a bit, but that's a good guideline. So, Joe and Jane Blue
Collar and the 2.2 kids might live in a 3 BR, 2 Bath house, around
1500 sq feet, and pay around $150,000 for that house. If they both
work, and have decent jobs, they probably make 50k-90k/year in
combined income, and mortgage payments are achievable with these
numbers.

I just one of those house fliipping shows on TV (on TLC channel, i
think), where a dude bought a 3 BR 1.5 Bath 1500 sq foot house for
$993,000... (and sold it after fixing it up for $1.5 million).

In our area, only executives, and perhaps lawyers or doctors would
live in a $993,000 house, and frankly, even that is stretching it. And
that house would have a couple acres of land, and probably have
8,000-10,000 square feet. (the 100/sq ft ratio probably breaks down at
the upper end of housing here).

So, the only way to resolve this for me is to learn that people made
about 5x what we do here for the same job... But, a quick scan of
monster.com shoes that's not even close to true.

So, how does this work? Where do Joe and Jane Blue Collar live in CA?
Do they have 200 year mortgage on that 1500 square house? Help me
understand how this works.

The places with the most housing troubles and deflation are those
overpriced areas, that is where forclosure is highest.

In article 97b2b118-c576-4ec8-9035-6a401fbe0e42
@d45g2000hsc.googlegroups.com, says...
On May 17, 8:41*pm, Scott wrote:
I've lived my entire life in Ohio. Apparently, our cost of living is
pretty low, but as I see home values for CA homes, I just can't get
the numbers to resolve in my head...

Where I live, most folks pay around $100 per square foot for housing.
It varies a bit, but that's a good guideline. So, Joe and Jane Blue
Collar and the 2.2 kids might live in a 3 BR, 2 Bath house, around
1500 sq feet, and pay around $150,000 for that house. If they both
work, and have decent jobs, they probably make 50k-90k/year in
combined income, and mortgage payments are achievable with these
numbers.

I just one of those house fliipping shows on TV (on TLC channel, i
think), where a dude bought a 3 BR 1.5 Bath 1500 sq foot house for
$993,000... (and sold it after fixing it up for $1.5 million).

In our area, only executives, and perhaps lawyers or doctors would
live in a $993,000 house, and frankly, even that is stretching it. And
that house would have a couple acres of land, and probably have
8,000-10,000 square feet. (the 100/sq ft ratio probably breaks down at
the upper end of housing here).

So, the only way to resolve this for me is to learn that people made
about 5x what we do here for the same job... But, a quick scan of
monster.com shoes that's not even close to true.

So, how does this work? Where do Joe and Jane Blue Collar live in CA?
Do they have 200 year mortgage on that 1500 square house? Help me
understand how this works.

The places with the most housing troubles and deflation are those
overpriced areas, that is where forclosure is highest.

Define "overpriced areas". ...those with falling house prices and
lots of foreclosures?

--
Keith