Say you buy a 500,000 home and decide you need a change and want to move somewhere new? YOU CAN'T RENT IT FOR $6,000 A MONTH. So now you put yourself in your own little old decaying 1200 square foot jail. CONGRATULATIONS, YOU LOST THE LOTTERY. leave rants below.
CA homes are old and ugly and overpriced.
By KILLERJANE Follow Thu, 10 May 2012, 10:36am 5,907 views 58 comments
In Burbank CA 91502
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Then get a rent 3200 for your old box.
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Emeryville, CA
RentingForHalfTheCost says
But, here's my angle. We've had depressed wages for decades and that can't go on forever. So, once everyone starts doubling their salaries, we'll all be laughing at how we used to think these prices were high.
YOU'RE WELCOME!!!
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Monterey, CA
I didn't say you needed to rent it for $2,000. You said you needed to rent it for $6,000. $6,000*12=$72,000
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Ok, the point is you won't won't get enough. I'll give up a little on the $6000. But not everyone has a 2000 monthly note, some are much more. Depends on the details of when you bought and the like.
The point is the same. House prison. Your stuck with the responsibility and not enough rent to cover the reality of it all.
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Boomandbust, get the insurance if you can. If your streets were as old as mine, 1920's. The plumbling there in the street is almost expired or is expired. This is a chain reaction to your pipes. Do your research and hide your wallet.
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Monterey, CA
KILLERJANE says
So then you don't buy that property if you want to generate income.
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Don't buy that property if you do the real numbers, not the glossy eyed " I am all grown up and buying a house" numbers. First time buyers don't always see it. Property tax bill will make you cry.
I Based the 6000 on the 1 percent rule for buying and added wiggle room.
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Get this. I know one guy who lives in Menlo and last year he spent a big chunk of his evenings after work laying down and picking up rat traps.
House is, of course, a million+ stucco box and he's combating fucking rats for the honor of paying the taxes and note on it.
The place is, every time I've visited, spotless except for books and music that piles up. Kitchen gleams. Still, he faced hoards of rats.
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His yard must be surrounded by shrubs, tell him to get a half dozen yard pussy cats from the pound. We had rats. At sunset and beyond rats would troll the yard, not timid of us. We had 2 dogs, when the both kicked it at 11 and 17 years, wild hungry pussy cats moved in. Then no mo rats.
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Los Angeles, CA
Since OP states Burbank, I'll play along.
This is very typical of Burbank:
http://www.redfin.com/CA/Burbank/412-Cambridge-Dr-91504/home/5353417
3/2, nice location, very good schools through high school.
$545K. Very nice home and lot, not modernized, but clean and turnkey.
This rental is right nearby(within a few blocks and similiarly located near Glenoaks which is a below average major street in terms of traffic) and has just about the same specs. I will note that it is modernized inside, but from the outside it is less aesthetically pleasing than the sold home:
http://www.trulia.com/homes/California/Burbank/sold/258877-406-E-Fairmount-Rd-Burbank-CA-91501
It's landlord is seeking $2850/mo in rent:
http://losangeles.craigslist.org/sfv/apa/2990041340.html
So you tell me which pans out:
$545K mortgage, or $2850 rent.
FWIW, the plumbing really is an issue in SFV. The Northridge quake cracked the pipes originally installed on most homes in SFV, which were clay or something. There are trees ALL OVER the SFR areas of SFV. So tree roots have penetrated these cracks. The issue does not exist with PVC, but since most SFV homes were built prior to 1965 or thereabouts, most had the clay pipes. Needless to say, after the shower backing up with poop, most people get tired of it and fork over the $10K plus to have their pipes dug up and replaced.
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I pay 1975 for nice apt with resort style pool, have kids need pool to de energize them. The house above is old and yes the pictures are nice but the house is staged. It is not worth it. 2850, seems painful to me. Buying it not practical.
If you buy a property and can rent it out and cover ALL your costs and will know it will appreciate, then it is ok. Even if you don't at first conceive wanting to rent it out, people get bored and situations change.
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For a half million dollars you can buy properties in a few areas in US FOR AROUND 50,000 each. You can net 4-500 on each.
9 properties plus initial repair to ready for rent is 500,000.
Net rent for nine would be around 3500-4500.
Take that income and live wherever. It's a better deal than an ugly old fixer in CA.
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dodgerfanjohn says
Good example. It's close, but I think if the buyer was staying for 6+ years, it would be a buy in my book.
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Oh, if you get financing according to bigsby subtract 2000 from net income for 30 years and you profit between 1500 and 2500. Properties found at tht price ten years old or newer will go up in value.
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APOCALYPSEFUCK is Tony Manero says
Sounds like an opportunity for target practice!
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Baltimore, MD
If they are really that ugly, post pics.
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Don't need to. Take a walk outside. Old houses are extremely difficult to maintain. Yes they will take an earthquake better, but that's the downside because rebuilding them would make them more livable.
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Los Angeles, CA
FWIW, I think the owner is wishing a bit high on the rent. $2600-2700 seems much more likely based on rents I've seen in the area, which makes it a fairly clear rent IMO.
I agree Zesta that its fairly close at the moment. The time factor is a major one. Unfortunately I believe that most people currently purchasing a home in LA County are doing so in believe that homes will rise in price sooner rather than later.
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APOCALYPSEFUCK is Tony Manero says
I have an easy, cost effective solution for the rat problem:
This one even looks like one of my cats:
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zzyzzx says
Remember those "We Buy Ugly Houses" ads?
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Yes. To appeal to the masses.
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wthrfrk80 says
And for low cost, high quality protein!
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KILLERJANE says
THIS. Buy it and the trap is set cuz there are absolutely no move up opportunities right now. If you need to buy make sure you run the math and see if makes sense to to live there for like 15-20 years. Seriously.
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wthrfrk80 says
LOL! I can't even imagine the uproar that would occur if someone discharged any sort of firearm in Menlo Park! And to shoot "poor innocent creatures" none the less! I bet that those rats are on some peninsula concerned citizens group's "endangered & special" list.
Hell, good luck firing a BB gun in that area! An adult would go to jail, and a kid would end up in 5 years of "therapy" to figure out why he wanted to shoot things.
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bmwman91 says
Yes that sounds like the Bay Area, lol.
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Emeryville, CA
wthrfrk80 says
And that kid probably could use the therapy. Twisted little fuck.
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Fremont, CA
True. I was looking for a house in Fremont CA. Most I found were Old, dated, some of them in bad condition, OVERPRICED junk!
I chose to buy a brand new house in Gilroy. Much larger and much cheaper.
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CL says
I hope you are right, but fear that will not happen. You see, I have a wage and also houses. Wage inflation without real inflation is what we need, but that would require some major productivity gains. It could happen, and I hope it does, but no guarantee there. We will most likely just sit and rot, while we slowly work through our de-leveraging issues. About the only thing we have on our side is time.
Like I said, though, I like your view of the world much better than mine. :)
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Good. Because old is painful.
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RentingForHalfTheCost says
My only regret is that I'm only pretending to be optimistic!
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Baltimore, MD
wthrfrk80 says
How can I forget when I still see them all over the place. They are like litter.
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The price on one of those little 2 bedroom shitboxes was ridiculous of course. Then again of course California is the land of the "OPTION ARM". The most fucked mortgage ever to hit the earth. The only way many could afford a "shitbox".
You could ask why oh great Artismo? Why 2009. They actually went out selling these Option arm mortgages to PROPERTY INVESTORS all over the country trying to cover their asses. Property investors are condsidered a bad credit risk in that its not their primary residence and they can walk from the deal. It got THAT bad. See heres how it works. Say you have 500 mortgages that forms a "pool" of securities they are sold to say oh China or something like that. They have no asset (no house) attached. They only pass through the interest on a "monthly" basis to the security holders. When some of them go bad in the "pool" sold the buyers of the securities. They are replaced. Therefore you have to "make" more and more mortgages to replace the bad mortgages or forecloused on in the "pool". When you reach the bottom of the barrel no more "credit worthy" people left. Then you have to go to your "Bad credit" risks borrowers on mortgages. Then you have to blow something up, games over, claim a dire financial attack on the nation and markets start to slide and people lose their jobbies. See thats like the exit door. Now if you could find the records which is just an added bonus. You might be able to prove some things. However those records are probably in the east river somewhere. So you see it all worked out for them.
See they let out the clutch on Mortgage backed securities in the early 80's. By the time it hit 2000 they were all out of anything that resembled credit worthiness. As an example lets just say some of these houses had "Escalades" parked in front of them with television in the headrests so people in the back seat can watch TV. Then again just because some people aren't always "let in" unless the need arises to fill the usury bucket. I don't consider that a minus in their lives. Once again it wasn't about cash but hard goods from places like China. Wal-mart knows. Target sure as fuck knows.
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APOCALYPSEFUCK is Tony Manero says
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bmwman91 says
I would be more concerned with where the stray bullets might go and the collateral damage.
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80B of market cap wiped out from the Cupertino market just in Apple stock depreciation of late. More to come folks. Good luck to all owners. At least the kids get a high score and go off to college.
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SUPRISE This vid is really hysterical. Get your emeralds O'casey. This is a big suprise of course to them. Then again it could be some political hi-jinks. What it basically says is guess what we goin' sizzlin.
I included this "dancin' for mother russia" vid.
You fucking murderers get out of there. Take a life 30 years for a house built in 3 months or take a life. These people are very serious business.
Of course the Afgan "security" forces reads like a who's who of the Nato "wolfpack". Not to mention all of Russias nearby's. Russia went in with everyone else. I remember thats the only important part to me. However they are suspiciously absent from the role of "security forces". Although probably there with strip mining equipment. The deception in this is they aren't already blowing up the ground at the present time and taking what they want.
You have to ask yourself do people rob and kill to get more. Of course they do. Paper is nothing. It's them assets again and what ya need to put them together with, material. Now I know this dosen't fit in with the philosophical goodness and purity of motive they use to turn the dweedle dees and dwiddle dumbs of the world into mush. Then again they have too, they don't want everyone turning on them.
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zzyzzx says
Just use .22 shorts, or an air gun. Kills tiny game, but they are quite and strays are not going to cause much damage. Of course you still want to be cautious about what is down range.
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RentingForHalfTheCost says
Now now, by my calculations it is only a $70B loss. That is MUCH better, right?
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leoj707 says
NEVER fire unless you KNOW what is downrange!
But yeah, a .22 shorty fired into dirt would not cause issues.
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bmwman91 says
Yes, yes.
bmwman91 says
If an accident were to happen (ricochet, etc.) .22 short's velocity/penetration would most likely be nonlethal to anyone indoors, behind a fence, etc.
These are also nice to reduce problems with penetration, but overkill for rats.