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Should we buy a home in Los Angeles in 2010?


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2009 Nov 5, 8:11am   12,598 views  55 comments

by LAO   ➕follow (0)   💰tip   ignore  

My fiance and I are both 29...  soon to be 30.  Getting married in a June 2010.  (Paying for it all ourselves... and have the savings to do it).

After the wedding... not factoring in any cash gifts... we should have about $30K left over in liquid savings.. and another $40K in 401K accounts).

Our combined incomes will be just under $150K, both are college educated, with hopefully our highest income earning years ahead of us... I work in the entertainment industry, she works in insurance.  Both have had steady jobs for over 4 years.

We currently rent a  600 sq ft 1 bedroom in Hollywood for $1250.

We want a house in the Valley... And what we want is a minimum of  a 3bed/2bath 1800+ sq feet with pool/decent yard for a dog and outdoor BBQs.  Also the trickiest part is a good school district where we don't have to send our future kids to private school. Also an under hour commute to Hollywood area for work would be nice.

We've seen homes for between $450-$550... that match most if not all these criteria.  Not a huge selection though.  It's still scary to spend nearly a half a million on a home.  We obviously won't have enough for a 20% downpayment on such a home for another 2-3 years.  So an FHA 3.5% loan would be the way we'd most likely go...

I've calculated buying in 2010 would return us nearly $30K over the next two years in tax refunds.

Also... do you think it'd be better to buy in slow season of winter 2010? vs. waiting until after the wedding and buying in 2010-2011 slow season when the $8000K credit may be gone?

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50   Tude   2009 Nov 14, 10:45am  

rmm221 says

All of this is a moot point now…
My fiance just lost her job.. aka was fired for very shady reasons along with a handful of other employees. Basically the company after a round of layoffs earlier in the year… Is now setting up people to be fired for unethical reasons so they don’t have to pay unemployment. So now she’s going to have to fight to even get unemployment and we might have to get married at a courthouse so she can get on my health insurance.
We’ll be fine financially because we have a lot saved…But i feel for one of the employees who has two kids and a stay at home wife to support… I’m the main bread-winner making up 2/3 of our total income.. So even if she finds a low-paying job.. all her money will go into savings.
It’s so weird that we were thinking of stretching both our incomes to buy a $529K home last week… And she loses her job the next week. Like it was a sign not to buy…
Just wish the “sign” included unemployment benefits…

I don't think it's weird at all, fate intervened. You could not afford a half million dollar house even with her income. You will look back on this and see it was a blessing.

Sorry about the firing though, I was there once many, many years ago. Sucks working for a company that's plays those games. Getting out of that place was actually the best thing that happened to my career!

51   4X   2009 Nov 14, 2:28pm  

Now a true conservative wouldnt even think of applying for unemployment...try not mentioning your wifes plans to take up social assistance from the taxpayers to BAP, TENOUNCETROUT less you want to get in a scuffle.

Just a little humor from a progressive.

52   elliemae   2009 Nov 15, 2:48am  

4X says

Now a true conservative wouldnt even think of applying for unemployment…try not mentioning your wifes plans to take up social assistance from the taxpayers to BAP, TENOUNCETROUT less you want to get in a scuffle.
Just a little humor from a progressive.

I believe that he's stated that his gf can't get unemployment because they fired her. I could be wrong, I've been wrong before.

53   LAO   2009 Nov 15, 2:54am  

Thanks to everyone for the kind words! She's a Smart, talented, and beautiful woman inside and out... Im actually glad she's out of such a toxic work environment... Its just been a stressful few days since they are abruptly ending her health coverage also and she feels helpless dealing with the stigma of a firing when applying for jobs in this economy...

54   elliemae   2009 Nov 15, 3:19am  

The economy is a bitch right now, but I think future employers will have some compassion. Especially if that employer is well known in the community. The insurance thing is scary, and I won't pull out my soapbox (you're welcome). But she needs to get more insurance within 63 days or risk having a pre-existing condition that will affect her for years to come.

55   AltonS   2009 Nov 16, 7:10am  

Yet another reason to untether health insurance from jobs. Now they're getting married (possibly very very quickly) to make sure she's covered...

4X, why not take whats being offered eh? They keep extending benefits and CA will be taking what, 10% more out of his income for the next few months too.

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