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terriDeaner
2011 Jan 23, 11:48am
There is no need to commute far for a $9/hour job, so travel expenses will be low.
There would be once all the $9/hr workers move to San Leandro... so this scheme only seems to solve the wage/mortgage problem for a dozen people in the Bay Area. Unless their combined housing demand generates multiple offers and housing prices there suddenly spike, that is.
I think it is possible.
maybe for a lucky(?) few, with lots of caveats, but really unlikely.
FortWayne
2011 Jan 23, 1:45pm
I very much agree with this thread. It is just smart not to waste money and take insane risks. Smart investors take no risk, dumb people take all the risk.
But capitalism is simple. If most people aren't willing to pay, prices will come down. Just too bad we can't break that darned healthcare for profit system.
My idea of affordable housing for “bad times†is one that you can pay for with one $9 an hour (minimum wage) job. That would be for 2 income families as well - or you get roommates and live in a cramped style.
So either buy a cheap house or condo in a decent place - or pay cash or enough down so that your loan is in the neighborhood of $125,000 or less. To survive in tough times you shouldn’t pay more than $700 per month. You watch, when food and utilities and gas goes sky high - you can’t afford to pay high rent.
Most of you don’t even factor in getting sick and losing $20,000 or more - which is really easy to do these days. I know because it happened to me.
If you live on one “$9 an hour income†(minimum wage) and save all the rest of the money you make - you’ll eventually have enough money to pay cash or a huge down payment for another place. You might have to sell your house or condo and use the cash you save - but you would be surprised at what you can afford if you live under your means.
plus - none of you has factored in what property taxes would be if CA decides to go with a higher tax rate of say 1.5% or 2% or whatever. Fees and taxes could cause many to lose their homes in bad times.
Better to have your money working for you than to spend all your money trying to look like you have money. There are many highly educated people that end up in low paying jobs. So don’t think you are immune. On the bright side - you will be immune if you are prepared.
So your plan is to live like a pauper and then be forced to bailout people who overindulged and are underwater/in trouble through 1) higher taxes 2) inflation 3) possible means testing for social security?
don’t forget how the great weather makes up for it all
...or our world-class taco trucks, plethora of hot plastic surgery babes, legalized potheads, diverse cultures and classes Getting Along . . . really, the reasons are endless why California RAWKS!
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there is no job security in US. Even if you feel confortable at your present job, you have to always to prepare for the worst- if you loose your
job.
we have the present economic situation. Is not great. Everything you read or hear you have to take with a grain of salt.
therefore, if anyone is contemplating buying a home in this year, only if you have enough downpayment, so that your loan monthly
payment is payable with one income (if you lucky to have dual income), and don't even think about following the lenders' guidelines of front/back end ratios.
To be safe, if you loose your job, make sure you have saved money to pay your monthly mortage for at least one year.
So the lower your mortgage payment, the safer you are.
Example of what I mean, in a good location (willow glen, campbell, fremont) I think 300K loan would be pretty safe ,
easy to make payments, and still have money left. That means, have a 300-400K as downpayment.
#housing