- Jun 17, 2001
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Originally posted by: V00DOO
Originally posted by: r6ashih
I checked out a condo near little tokyo. Prices, if i remember were 600k+. Upgraded kitchen, but basic bath and shower. no upgrades anywhere else. hard to see any value in it =(
In order to comfortably afford a $600k you'll have to make over 150K a year with a minimum of 60K (10%) in down payment. Preferably 120K (20%) down payment to avoid PMI. I don't know about you but if I make over 150K and has 60K to 120K in cash I wouldn't want to live in a small condo cutter. This is why we are in this housing mess. People buying homes they can't afford. Here is a link to an article about the housing crisis in California from Bloomberg.
March 20 (Bloomberg) -- Sacramento may eliminate up to 600 jobs in the city's first staff reductions in half a century, and the police and fire departments in the California capital may have their budgets cut by 20 percent. The culprit is the collapse of the U.S. housing market.
California, the birthplace of the subprime mortgage industry, is paying the highest price of any state as the housing meltdown persists. Its gross domestic product will drop 1.5 percent in the first half of 2008, the most in the U.S., analysts at Lexington, Massachusetts-based Global Insight Inc. estimate.
The state had the most foreclosure filings in the U.S. last year and the biggest fourth-quarter decline in prices, according to RealtyTrac Inc., an Irvine, California-based seller of data on defaults, and the Office of Federal Housing Enterprise Oversight in Washington.
``The depth and magnitude of what's happening in the real estate market is really, really grim,'' said Russell Fehr, Sacramento's finance director, in an interview.
California, the most populous U.S. state and accounting for almost one-seventh of gross domestic product, will lose $25 billion in personal income by the end of 2008 and property values will fall by $630.7 billion, according to forecasts from economist Jerry Nickelsburg at the University of California, Los Angeles, and the U.S. Conference of Mayors....Bloomberg
The subprime mess doesn't apply to most of these locations. These are in primo areas picked up by yuppies and people who work in/around downtown or quite frankly have a shitload of money.
The areas referred to in the article are predominately poor places and 3/4 of the inland empire (hehe). My parents actually live 1 mile north of a street who had one of the highest foreclosure %'s in orange county.
I read an article about a family who got foreclosed on (who lived on said street). Immigrant family, 5 children (so 6 people total). All chipped in on the mortgage of.....4k/month