Advice on Affordable housing in Huntington Beach

NEW -> Contingent Buyer Assistance Program
Irvine Soul Brother,



I think you are being to idealistic. Why would the builder built something cheap, just because there is a demand. What's in it for them? In the case of affordable, I think they get a huge tax break from the city and federal.



I as a community demand you rent your place to me for cheap like $ 1500 a month? Would you rent it out? Your place sound nice.
 
Hi JB, Cross Streets are Edwards and Talbert. Yeah, we thought the price wasn't too bad. . . and it's a great house. Fruit trees, etc. . . We've got a property manager, and he's supposed to have reduced to 2450 on craigslist, but hasn't put up that ad yet. Look for it at 2550 on the OC craigslist. . .





Tulip. . . I think the builder would build something cheap because the low income sector would be clamoring for it. Think about it, I mean, why build anything but $2 million dollar houses? There are people at every price point that need some housing. A lack of it means that that sector of the economy can't be housed. And if the low income cohort needs housing, demand will make that type of unit more profitable.





You say "I as a community," but therein lies a contradiction. We'll rent the place for whatever it rents for, and the economics will do just fine at setting that price. I'm just leery of govt stepping in and tweaking stuff like mandating certain types of housing being built.





Once you start messing with things, you have to mess with them a whole lot more.
 
<p>Huh? For a 400K home, the interest at 6% will come out to $2000. Add HOA, and your monthly expense will be $2200. Insurance is included in the HOA and property tax should be offset by the federal tax saving. So your monthly expense to own the 400K condo is $2200. I don't count principal payments because they are not considered expenses. The cost to rent a 3 bedroom condo is at least $2400. So owning would be pretty equivalent to renting. But... you can do anything you want with your home and you never have to fear about rent going up.</p>

<p>I guess your only concern is the 40K down and the monthly principal payment. Best way to think about is that it's like having a savings account with monthly contributions.</p>

<p>If I was in your shoes, I would definitely buy. There's really no value in investing in real estate for at least several years. So there's really no fear of missing out on the next big wave. Just buy, lock in your monthly expense at $2200 and be happy. You'll regret it when rent rises in the upcoming years.</p>
 
ISB, in most areas the number of units that can be built on a given area of land is limited. (I will duck the issue of whether those restrictions are justified). If the land becomes worth a lot, as it is in OC, it becomes impossible to build low-income housing, because the land cost alone makes it middle-income. Plus, the way the trade-offs work if the lot is 400K it doesn't make much sense to build a 150K "middle-income" house. It makes more sense to build a luxury house for 300K+



In addition, normally low-income housing isn't built. Low-income housing is normally middle-income housing which has become less desirable for one reason or another. Insofar as it has been built, it's usually been substandard building which is no longer legal.
 
hs_teacher, if the choice is "buy now or rent forever" your analysis is correct. However, if the choice is "buy now or buy in 2009" it's not. House prices are almost certain to drop substantially for the next year or two (and maybe more) and so principal payments are effectively lost by buying now.
 
HS teacher,



How did you arrived at $ 2200? A loan for 400K with 10 percent down at 5.75...you are looking at $ 2058 P+I, 152 PMI, 170 HOA and $ 60 property insurance. The HOA does not cover property insurance in this housing. So your monthly payment total to $ 2438...not including property tax of $ 408 a month. The income requirement for the family of 4 is $ 94,000. It is hard to save money for a downpayment if you made $ 94,000 for a family of four in OC.



ISB- Your location is really nice. I am sure you won't have a hard time renting it out. They have excellent elementary school in the area.
 
<p>Tulip,</p>

<p>I'm just looking at 6% of 400K. That's how much "interest" is being spent each month on the property - $2000/month. Any principal payment does not count because it's not an expense. It's just building equity. There's no PMI if you have 80% on the first and 10% on the second. And I assume property tax will be washed out by the reduction in federal tax. So your monthly cost will be $2000+$100(interest on the second)+$230(HOA+insurance) = $2330. Let's just estimate it at $2400. I think that's how much it'll cost to rent a 3 bedroom anyhow. And according to the advice on this website, you should BUY if it costs the same or less than rent. This will protect you from any increases in rents in the future. Plus, it feels much better to own.</p>

<p>If I were you, I would find my best to find 40K for a downpayment. After that, you just have to see if you can manage $2400/month. And then, you'll be a proud owner of a very young condo.</p>

<p>I know a guy who pays $2200/month for a 2 bedroom, 20 year old condo, in STANTON!</p>

<p>Paying $2400/month for a 3 bedroom, 7 year old condo, in HUNTINGTON is a great deal!</p>
 
Fair E, I hear you. I guess the part you were ducking was what I was trying to duck too. . . I guess if you put regulation A on housing, you start to have to put in B and C and D too. . .





In one of our rentals, in Rosemead, a roofer who did some work told us that when he went in the small house, it was "mattresses everywhere." So, people find a way. I'd prefer that to government steppin' in. Although what works in Rosemead won't fly in Irvine.
 
HS Teacher,



I see what you mean.



ISB- Would you rent it out for $ 2K? A friend at work is looking for a place to rent for her and her sister only.
 
Anything that is equal to or less than renting. $2400/month for a 3 bedroom. $2000/month for a 2 bedroom. or $1500/month for a 1 bedroom. I would not even hesitate to purchase an affordable home if its monthly expense is less than or equal to monthly rent. Because although I do think home prices will go down, I doubt rent would ever anytime soon.
 
You must log in or register to reply here.
Back
Top