Azalea: New Low Cost or Investment Homes for Cypress Village

[usctrojancpa]

Yeah we are debating hard on whether to see if we can get a decently new 2 story 3bd or something in baker ranch, at around 950k as that?ll probably be the final price for the largest plan at azalea which we are looking at. Given that we are buying for a long term home to live in, the customizability and distance to work is a big draw (assuming it should save 10 min each way compare to PS or Baker ranch).

But yeah if buying go rent out then probably not a good deal for new constructions right now in this market?

Maybe something else you like in CV will come up. Going up to 950 could snag you a Tristania if one is listed. Then you get to be in the same neighborhood in a more traditional townhome.

OR maybe one of the Lantana 2 level plans will become available. Again, same neighborhood but more traditional townhome setup.

Most recent Lantana home went for $880,000 cash and 5 day escrow no contingencies. The buyers turned it around and leased it the next day for $4000. LOL.

That's a high rent even though it's a 4bd condo.

The 4 bed detached in Cypress are renting between $4200-4400 recently. I was a little shocked that this home got $4000 though.

I mean high for a 1,500sf attached condos, I know that the Trellis Court detached condo rent for over $4,000.

 

[sleepy5136]

Paying rent at 4K makes little sense since one can own a home at that point? people paying 4K rent should be able to cover maintenance of a home assuming it?s not wrecked..

 

[Cares]

Paying rent at 4K makes little sense since one can own a home at that point? people paying 4K rent should be able to cover maintenance of a home assuming it?s not wrecked..

Not everyone has the down payment or ready to commit to purchasing. I have clients that are only on temporary assignments so they are renting for a year. Everyone has different life stages and there certainly is a market for $4k even $6-7k rent in Irvine.

 

[brergnat]

Paying rent at 4K makes little sense since one can own a home at that point? people paying 4K rent should be able to cover maintenance of a home assuming it?s not wrecked..

So where are buyers supposed to come up with the $200k+ down payments that would result in a $4000 monthly PITA payment? Not all renters are sitting on a boatload of available cash. We have been renting our entire married life because we started off with nothing, don't have rich parents or high paying jobs, and haven't been able to save up enough for a down payment. We can afford to pay rent because we have no other choice right now in this area.

 

[akula1488]

Paying rent at 4K makes little sense since one can own a home at that point? people paying 4K rent should be able to cover maintenance of a home assuming it?s not wrecked..

Renting also means flexibility. You can move around and try different areas. I don't mind being a landlord but live in a luxury rental myself.

 

[Cares]

Anyways, back to the topic. Azalea is prioritizing non-contingent primary home buyers first. Secondary and investment buyers are 2nd priority. Last in line are contingent buyers.

 

[sleepy5136]

Paying rent at 4K makes little sense since one can own a home at that point? people paying 4K rent should be able to cover maintenance of a home assuming it?s not wrecked..

So where are buyers supposed to come up with the $200k+ down payments that would result in a $4000 monthly PITA payment? Not all renters are sitting on a boatload of available cash. We have been renting our entire married life because we started off with nothing, don't have rich parents or high paying jobs, and haven't been able to save up enough for a down payment. We can afford to pay rent because we have no other choice right now in this area.

I don?t have rich parents, nor do I have tons of cash stashed in the bank, and to be quite frank, I graduated college with 40k+ in student loans and my family had food stamps at one point when raising the family. My pay isn?t considered ?high? either.

If one household is able to pay 4K in rent, that means their salary is quite decent and above the median household. That doesn?t even factor in their expenses for food, utilities, etc. Please don?t stand up here telling me that people don?t have cash when one pays 4K in rent. That?s A LOT of money. If one really has no money saved for down payment, that 4K is probably the root cause of it all and also the monthly expenses need to be evaluated more carefully.

What I?ve learned is your earnings matter to a certain extent until it comes down to the life style one chooses to live and also how much they save/invest. Simply finding a place that is 1k less a month will already save you 12k a year. Assuming one puts money in an S&P 500 as well, one can already buy a decent condo in OC within 5 years or so.

Again, there is nothing against renting, I rented for some time myself and never bought a home until recently. But I paid nothing near 4K for rent, consistently invested in the market, and always evaluated my monthly expenses to see what is needed and what is not.

Lastly, what home are you buying that requires 200k down payment? Your first home isn?t going to be your last home. One doesn?t need to pay 20% down payment to buy a house.

 

[brergnat]

Paying rent at 4K makes little sense since one can own a home at that point? people paying 4K rent should be able to cover maintenance of a home assuming it?s not wrecked..

So where are buyers supposed to come up with the $200k+ down payments that would result in a $4000 monthly PITA payment? Not all renters are sitting on a boatload of available cash. We have been renting our entire married life because we started off with nothing, don't have rich parents or high paying jobs, and haven't been able to save up enough for a down payment. We can afford to pay rent because we have no other choice right now in this area.

I don?t have rich parents, nor do I have tons of cash stashed in the bank, and to be quite frank, I graduated college with 40k+ in student loans and my family had food stamps at one point when raising the family. My pay isn?t considered ?high? either.

If one household is able to pay 4K in rent, that means their salary is quite decent and above the median household. That doesn?t even factor in their expenses for food, utilities, etc. Please don?t stand up here telling me that people don?t have cash when one pays 4K in rent. That?s A LOT of money. If one really has no money saved for down payment, that 4K is probably the root cause of it all and also the monthly expenses need to be evaluated more carefully.

What I?ve learned is your earnings matter to a certain extent until it comes down to the life style one chooses to live and also how much they save/invest. Simply finding a place that is 1k less a month will already save you 12k a year. Assuming one puts money in an S&P 500 as well, one can already buy a decent condo in OC within 5 years or so.

Again, there is nothing against renting, I rented for some time myself and never bought a home until recently. But I paid nothing near 4K for rent, consistently invested in the market, and always evaluated my monthly expenses to see what is needed and what is not.

Lastly, what home are you buying that requires 200k down payment? Your first home isn?t going to be your last home. One doesn?t need to pay 20% down payment to buy a house.

You are making a LOT of assumptions without having literally any details about mine or anyone else's financial picture. If it was SO easy for first time homebuyers to buy in Irvine, why are nearly 50% of residents renters?

 

[sleepy5136]

Paying rent at 4K makes little sense since one can own a home at that point? people paying 4K rent should be able to cover maintenance of a home assuming it?s not wrecked..

So where are buyers supposed to come up with the $200k+ down payments that would result in a $4000 monthly PITA payment? Not all renters are sitting on a boatload of available cash. We have been renting our entire married life because we started off with nothing, don't have rich parents or high paying jobs, and haven't been able to save up enough for a down payment. We can afford to pay rent because we have no other choice right now in this area.

I don?t have rich parents, nor do I have tons of cash stashed in the bank, and to be quite frank, I graduated college with 40k+ in student loans and my family had food stamps at one point when raising the family. My pay isn?t considered ?high? either.

If one household is able to pay 4K in rent, that means their salary is quite decent and above the median household. That doesn?t even factor in their expenses for food, utilities, etc. Please don?t stand up here telling me that people don?t have cash when one pays 4K in rent. That?s A LOT of money. If one really has no money saved for down payment, that 4K is probably the root cause of it all and also the monthly expenses need to be evaluated more carefully.

What I?ve learned is your earnings matter to a certain extent until it comes down to the life style one chooses to live and also how much they save/invest. Simply finding a place that is 1k less a month will already save you 12k a year. Assuming one puts money in an S&P 500 as well, one can already buy a decent condo in OC within 5 years or so.

Again, there is nothing against renting, I rented for some time myself and never bought a home until recently. But I paid nothing near 4K for rent, consistently invested in the market, and always evaluated my monthly expenses to see what is needed and what is not.

Lastly, what home are you buying that requires 200k down payment? Your first home isn?t going to be your last home. One doesn?t need to pay 20% down payment to buy a house.

You are making a LOT of assumptions without having literally any details about mine or anyone else's financial picture. If it was SO easy for first time homebuyers to buy in Irvine, why are nearly 50% of residents renters?

My assumptions are based off of people specifically paying 4K in rent in Irvine. One does not need to know the exact details of everyone?s financial picture to know that 4K in rent means the household is making above average compared to other households. If you do the math, it means the household is making more than 190k+ a year assuming a family does not go over 50% of their take home going towards housing.

In terms of rentals in Irvine, where are you getting your info from? As of April 2021, a third of the people actually rent in Irvine and average rentals are $2418.https://www.rentcafe.com/average-rent-market-trends/us/ca/irvine/.So when you say there is ?no choice? in Irvine below 4K, I would think otherwise.

In the end, I don?t know what point you?re trying to get at. First you mentioned needing 200k+ to buy a place in Irvine which is false. You then mentioned a bunch of personal reasons why you aren?t able to buy in Irvine. I apologize, but I?m not trying to talk about you personally. But if your second point is to justify why people can pay 4K in rent long term, lets agree to disagree.

 

[Cares]

Paying rent at 4K makes little sense since one can own a home at that point? people paying 4K rent should be able to cover maintenance of a home assuming it?s not wrecked..

So where are buyers supposed to come up with the $200k+ down payments that would result in a $4000 monthly PITA payment? Not all renters are sitting on a boatload of available cash. We have been renting our entire married life because we started off with nothing, don't have rich parents or high paying jobs, and haven't been able to save up enough for a down payment. We can afford to pay rent because we have no other choice right now in this area.

I don?t have rich parents, nor do I have tons of cash stashed in the bank, and to be quite frank, I graduated college with 40k+ in student loans and my family had food stamps at one point when raising the family. My pay isn?t considered ?high? either.

If one household is able to pay 4K in rent, that means their salary is quite decent and above the median household. That doesn?t even factor in their expenses for food, utilities, etc. Please don?t stand up here telling me that people don?t have cash when one pays 4K in rent. That?s A LOT of money. If one really has no money saved for down payment, that 4K is probably the root cause of it all and also the monthly expenses need to be evaluated more carefully.

What I?ve learned is your earnings matter to a certain extent until it comes down to the life style one chooses to live and also how much they save/invest. Simply finding a place that is 1k less a month will already save you 12k a year. Assuming one puts money in an S&P 500 as well, one can already buy a decent condo in OC within 5 years or so.

Again, there is nothing against renting, I rented for some time myself and never bought a home until recently. But I paid nothing near 4K for rent, consistently invested in the market, and always evaluated my monthly expenses to see what is needed and what is not.

Lastly, what home are you buying that requires 200k down payment? Your first home isn?t going to be your last home. One doesn?t need to pay 20% down payment to buy a house.

Let's say you target a $500k first home with 20% down. $100k down payment. In your scenario, saving $12k a year is going to take over 8 years to save that amount. At that point the goal post has moved. That $500k home is now $700k. Now you need $40k MORE to reach that 20% down.

This is oversimplified as there are FHA, VA, < 20% loans of course. But you get the idea. It's not always as simple as "changing your lifestyle".

 

[Cares]

Paying rent at 4K makes little sense since one can own a home at that point? people paying 4K rent should be able to cover maintenance of a home assuming it?s not wrecked..

So where are buyers supposed to come up with the $200k+ down payments that would result in a $4000 monthly PITA payment? Not all renters are sitting on a boatload of available cash. We have been renting our entire married life because we started off with nothing, don't have rich parents or high paying jobs, and haven't been able to save up enough for a down payment. We can afford to pay rent because we have no other choice right now in this area.

I don?t have rich parents, nor do I have tons of cash stashed in the bank, and to be quite frank, I graduated college with 40k+ in student loans and my family had food stamps at one point when raising the family. My pay isn?t considered ?high? either.

If one household is able to pay 4K in rent, that means their salary is quite decent and above the median household. That doesn?t even factor in their expenses for food, utilities, etc. Please don?t stand up here telling me that people don?t have cash when one pays 4K in rent. That?s A LOT of money. If one really has no money saved for down payment, that 4K is probably the root cause of it all and also the monthly expenses need to be evaluated more carefully.

What I?ve learned is your earnings matter to a certain extent until it comes down to the life style one chooses to live and also how much they save/invest. Simply finding a place that is 1k less a month will already save you 12k a year. Assuming one puts money in an S&P 500 as well, one can already buy a decent condo in OC within 5 years or so.

Again, there is nothing against renting, I rented for some time myself and never bought a home until recently. But I paid nothing near 4K for rent, consistently invested in the market, and always evaluated my monthly expenses to see what is needed and what is not.

Lastly, what home are you buying that requires 200k down payment? Your first home isn?t going to be your last home. One doesn?t need to pay 20% down payment to buy a house.

You are making a LOT of assumptions without having literally any details about mine or anyone else's financial picture. If it was SO easy for first time homebuyers to buy in Irvine, why are nearly 50% of residents renters?

My assumptions are based off of people specifically paying 4K in rent in Irvine. One does not need to know the exact details of everyone?s financial picture to know that 4K in rent means the household is making above average compared to other households. If you do the math, it means the household is making more than 190k+ a year assuming a family does not go over 50% of their take home going towards housing.

In terms of rentals in Irvine, where are you getting your info from? As of April 2021, a third of the people actually rent in Irvine and average rentals are $2418.https://www.rentcafe.com/average-rent-market-trends/us/ca/irvine/.So when you say there is ?no choice? in Irvine below 4K, I would think otherwise.

In the end, I don?t know what point you?re trying to get at. First you mentioned needing 200k+ to buy a place in Irvine which is false. You then mentioned a bunch of personal reasons why you aren?t able to buy in Irvine. I apologize, but I?m not trying to talk about you personally. But if your second point is to justify why people can pay 4K in rent long term, lets agree to disagree.

My data sources have 1.43M renters in OC zip codes with 3.2M residents. Close to 50%. Of those renters, only about 258k can afford to purchase.

 

[usctrojancpa]

Paying rent at 4K makes little sense since one can own a home at that point? people paying 4K rent should be able to cover maintenance of a home assuming it?s not wrecked..

So where are buyers supposed to come up with the $200k+ down payments that would result in a $4000 monthly PITA payment? Not all renters are sitting on a boatload of available cash. We have been renting our entire married life because we started off with nothing, don't have rich parents or high paying jobs, and haven't been able to save up enough for a down payment. We can afford to pay rent because we have no other choice right now in this area.

I don?t have rich parents, nor do I have tons of cash stashed in the bank, and to be quite frank, I graduated college with 40k+ in student loans and my family had food stamps at one point when raising the family. My pay isn?t considered ?high? either.

If one household is able to pay 4K in rent, that means their salary is quite decent and above the median household. That doesn?t even factor in their expenses for food, utilities, etc. Please don?t stand up here telling me that people don?t have cash when one pays 4K in rent. That?s A LOT of money. If one really has no money saved for down payment, that 4K is probably the root cause of it all and also the monthly expenses need to be evaluated more carefully.

What I?ve learned is your earnings matter to a certain extent until it comes down to the life style one chooses to live and also how much they save/invest. Simply finding a place that is 1k less a month will already save you 12k a year. Assuming one puts money in an S&P 500 as well, one can already buy a decent condo in OC within 5 years or so.

Again, there is nothing against renting, I rented for some time myself and never bought a home until recently. But I paid nothing near 4K for rent, consistently invested in the market, and always evaluated my monthly expenses to see what is needed and what is not.

Lastly, what home are you buying that requires 200k down payment? Your first home isn?t going to be your last home. One doesn?t need to pay 20% down payment to buy a house.

You are making a LOT of assumptions without having literally any details about mine or anyone else's financial picture. If it was SO easy for first time homebuyers to buy in Irvine, why are nearly 50% of residents renters?

My assumptions are based off of people specifically paying 4K in rent in Irvine. One does not need to know the exact details of everyone?s financial picture to know that 4K in rent means the household is making above average compared to other households. If you do the math, it means the household is making more than 190k+ a year assuming a family does not go over 50% of their take home going towards housing.

In terms of rentals in Irvine, where are you getting your info from? As of April 2021, a third of the people actually rent in Irvine and average rentals are $2418.https://www.rentcafe.com/average-rent-market-trends/us/ca/irvine/.So when you say there is ?no choice? in Irvine below 4K, I would think otherwise.

In the end, I don?t know what point you?re trying to get at. First you mentioned needing 200k+ to buy a place in Irvine which is false. You then mentioned a bunch of personal reasons why you aren?t able to buy in Irvine. I apologize, but I?m not trying to talk about you personally. But if your second point is to justify why people can pay 4K in rent long term, lets agree to disagree.

My data sources have 1.43M renters in Irvine with 3.2M residents. Close to 50%. Of those renters, only about 258k can afford to purchase in Irvine.

In Irvine or Orange County?  I think the Irvine population is probably around 300k.

 

[Cares]

Sorry I meant Orange County, not just Irvine.

 

[sleepy5136]

Paying rent at 4K makes little sense since one can own a home at that point? people paying 4K rent should be able to cover maintenance of a home assuming it?s not wrecked..

So where are buyers supposed to come up with the $200k+ down payments that would result in a $4000 monthly PITA payment? Not all renters are sitting on a boatload of available cash. We have been renting our entire married life because we started off with nothing, don't have rich parents or high paying jobs, and haven't been able to save up enough for a down payment. We can afford to pay rent because we have no other choice right now in this area.

I don?t have rich parents, nor do I have tons of cash stashed in the bank, and to be quite frank, I graduated college with 40k+ in student loans and my family had food stamps at one point when raising the family. My pay isn?t considered ?high? either.

If one household is able to pay 4K in rent, that means their salary is quite decent and above the median household. That doesn?t even factor in their expenses for food, utilities, etc. Please don?t stand up here telling me that people don?t have cash when one pays 4K in rent. That?s A LOT of money. If one really has no money saved for down payment, that 4K is probably the root cause of it all and also the monthly expenses need to be evaluated more carefully.

What I?ve learned is your earnings matter to a certain extent until it comes down to the life style one chooses to live and also how much they save/invest. Simply finding a place that is 1k less a month will already save you 12k a year. Assuming one puts money in an S&P 500 as well, one can already buy a decent condo in OC within 5 years or so.

Again, there is nothing against renting, I rented for some time myself and never bought a home until recently. But I paid nothing near 4K for rent, consistently invested in the market, and always evaluated my monthly expenses to see what is needed and what is not.

Lastly, what home are you buying that requires 200k down payment? Your first home isn?t going to be your last home. One doesn?t need to pay 20% down payment to buy a house.

Let's say you target a $500k first home with 20% down. $100k down payment. In your scenario, saving $12k a year is going to take over 8 years to save that amount. At that point the goal post has moved. That $500k home is now $700k. Now you need $40k MORE to reach that 20% down.

This is oversimplified as there are FHA, VA, < 20% loans of course. But you get the idea. It's not always as simple as "changing your lifestyle".

You mentioned it already, you don?t need 20% down payment. Also, if you?re buying a 500k house, the type of rental you would have would be nowhere near 4K. You?re looking at 2-2.5k. That can save you 20k+ a year. I also mentioned consistently investing. If you save 20k+ a year and also invested consistently to the S&P 500, buying a 500k house factoring in inflation at 2-3% isn?t a far reach.

From my experience, I can definitely see how lifestyle changes can impact ones financial goals. I know a lot of people that drive nice cars, buy brand name clothings/bags, and live a very luxurious lifestyle. While that is nice from the outside, that type of lifestyle can really impact the ability to reach financial milestones including owning a home. If someone makes 100k and saves 20% of it a year, it?s completely different than one making 75k a year and saving 50% of it. I?m not saying that type of lifestyle is right/wrong, I?m simply saying it makes a significant impact on ones financial goals.

 

[sleepy5136]

Paying rent at 4K makes little sense since one can own a home at that point? people paying 4K rent should be able to cover maintenance of a home assuming it?s not wrecked..

So where are buyers supposed to come up with the $200k+ down payments that would result in a $4000 monthly PITA payment? Not all renters are sitting on a boatload of available cash. We have been renting our entire married life because we started off with nothing, don't have rich parents or high paying jobs, and haven't been able to save up enough for a down payment. We can afford to pay rent because we have no other choice right now in this area.

I don?t have rich parents, nor do I have tons of cash stashed in the bank, and to be quite frank, I graduated college with 40k+ in student loans and my family had food stamps at one point when raising the family. My pay isn?t considered ?high? either.

If one household is able to pay 4K in rent, that means their salary is quite decent and above the median household. That doesn?t even factor in their expenses for food, utilities, etc. Please don?t stand up here telling me that people don?t have cash when one pays 4K in rent. That?s A LOT of money. If one really has no money saved for down payment, that 4K is probably the root cause of it all and also the monthly expenses need to be evaluated more carefully.

What I?ve learned is your earnings matter to a certain extent until it comes down to the life style one chooses to live and also how much they save/invest. Simply finding a place that is 1k less a month will already save you 12k a year. Assuming one puts money in an S&P 500 as well, one can already buy a decent condo in OC within 5 years or so.

Again, there is nothing against renting, I rented for some time myself and never bought a home until recently. But I paid nothing near 4K for rent, consistently invested in the market, and always evaluated my monthly expenses to see what is needed and what is not.

Lastly, what home are you buying that requires 200k down payment? Your first home isn?t going to be your last home. One doesn?t need to pay 20% down payment to buy a house.

You are making a LOT of assumptions without having literally any details about mine or anyone else's financial picture. If it was SO easy for first time homebuyers to buy in Irvine, why are nearly 50% of residents renters?

My assumptions are based off of people specifically paying 4K in rent in Irvine. One does not need to know the exact details of everyone?s financial picture to know that 4K in rent means the household is making above average compared to other households. If you do the math, it means the household is making more than 190k+ a year assuming a family does not go over 50% of their take home going towards housing.

In terms of rentals in Irvine, where are you getting your info from? As of April 2021, a third of the people actually rent in Irvine and average rentals are $2418.https://www.rentcafe.com/average-rent-market-trends/us/ca/irvine/.So when you say there is ?no choice? in Irvine below 4K, I would think otherwise.

In the end, I don?t know what point you?re trying to get at. First you mentioned needing 200k+ to buy a place in Irvine which is false. You then mentioned a bunch of personal reasons why you aren?t able to buy in Irvine. I apologize, but I?m not trying to talk about you personally. But if your second point is to justify why people can pay 4K in rent long term, lets agree to disagree.

My data sources have 1.43M renters in OC zip codes with 3.2M residents. Close to 50%. Of those renters, only about 258k can afford to purchase.

Ok please share your sources for Irvine specifically. If my source is incorrect, point is, 4K in rent is A LOT higher than the average in Irvine and there are cheaper alternatives.

 

[test]

My assumptions are based off of people specifically paying 4K in rent in Irvine.

Agreed.  If you can pay $4k every month and don't have enough saved for a down payment then you did something wrong a long time ago.  But this is America, right, where people making $1 mil per year have $0 in savings.

 

[Kick53rv3]

My assumptions are based off of people specifically paying 4K in rent in Irvine.

Agreed.  If you can pay $4k every month and don't have enough saved for a down payment then you did something wrong a long time ago.  But this is America, right, where people making $1 mil per year have $0 in savings.

I know we are getting off topic quite a bit now but there are plenty of newly graduated college kids in tech (google, amazon, etc) that makes $150k a year, easily can afford $4k rentals but don?t have the savings. Similarly there are a lot of people in tech that doesn?t want to buy because their visa could cause them to have to leave the country after a few years while still want to enjoy a nice house.

 

[sleepy5136]

My assumptions are based off of people specifically paying 4K in rent in Irvine.

Agreed.  If you can pay $4k every month and don't have enough saved for a down payment then you did something wrong a long time ago.  But this is America, right, where people making $1 mil per year have $0 in savings.

I know we are getting off topic quite a bit now but there are plenty of newly graduated college kids in tech (google, amazon, etc) that makes $150k a year, easily can afford $4k rentals but don?t have the savings. Similarly there are a lot of people in tech that doesn?t want to buy because their visa could cause them to have to leave the country after a few years while still want to enjoy a nice house.

I'm not sure how one can easily pay 4k of rent making 150k. As a fresh grad on W2, one is getting taxed at 30%+ and if you save 15% for retirement, it makes it almost impossible to afford a place for 4k. Unless of course they have help from family and what not then that is different. Also, I don't think anyone really expects fresh grads to buy a place right out of college...

As for students on visas, that is a completely separate matter and it would make sense for them to rent longer term as their choices due to their visa is limited. But I do know a good amount of Chinese students that are on visa who have ended up purchasing a place. Chinese people generally don't believe in renting so they do tend to buy eventually.

 

[bones]

My assumptions are based off of people specifically paying 4K in rent in Irvine.

Agreed.  If you can pay $4k every month and don't have enough saved for a down payment then you did something wrong a long time ago.  But this is America, right, where people making $1 mil per year have $0 in savings.

I know we are getting off topic quite a bit now but there are plenty of newly graduated college kids in tech (google, amazon, etc) that makes $150k a year, easily can afford $4k rentals but don?t have the savings. Similarly there are a lot of people in tech that doesn?t want to buy because their visa could cause them to have to leave the country after a few years while still want to enjoy a nice house.

I'm not sure how one can easily pay 4k of rent making 150k. As a fresh grad on W2, one is getting taxed at 30%+ and if you save 15% for retirement, it makes it almost impossible to afford a place for 4k. Unless of course they have help from family and what not then that is different. Also, I don't think anyone really expects fresh grads to buy a place right out of college...

As for students on visas, that is a completely separate matter and it would make sense for them to rent longer term as their choices due to their visa is limited. But I do know a good amount of Chinese students that are on visa who have ended up purchasing a place. Chinese people generally don't believe in renting so they do tend to buy eventually.

Roommates.

 

[sleepy5136]

My assumptions are based off of people specifically paying 4K in rent in Irvine.

Agreed.  If you can pay $4k every month and don't have enough saved for a down payment then you did something wrong a long time ago.  But this is America, right, where people making $1 mil per year have $0 in savings.

I know we are getting off topic quite a bit now but there are plenty of newly graduated college kids in tech (google, amazon, etc) that makes $150k a year, easily can afford $4k rentals but don?t have the savings. Similarly there are a lot of people in tech that doesn?t want to buy because their visa could cause them to have to leave the country after a few years while still want to enjoy a nice house.

I'm not sure how one can easily pay 4k of rent making 150k. As a fresh grad on W2, one is getting taxed at 30%+ and if you save 15% for retirement, it makes it almost impossible to afford a place for 4k. Unless of course they have help from family and what not then that is different. Also, I don't think anyone really expects fresh grads to buy a place right out of college...

As for students on visas, that is a completely separate matter and it would make sense for them to rent longer term as their choices due to their visa is limited. But I do know a good amount of Chinese students that are on visa who have ended up purchasing a place. Chinese people generally don't believe in renting so they do tend to buy eventually.

Roommates.

In that case, you're not paying 4k rent