Pretty gloomy article about housing

[eyephone]

Honestly though... Irvine is higher end in terms of OC real estate. Saving 100k shouldn't be too difficult if you really feel that you could afford the area.

+1

 

[eyephone]

20% down helps the monthly cash flow.

Yes, it's hard to save 20% down. I personally saved over $120k before I was 25. It helped that the stock market was very kind to me (over 100% gains).

But you guys are having trouble thinking outside the box:

20% down is not required. I have neighbors with FHA loans (3% down) and co-workers that did 80/10/10 loans (yes, after the new regulations were in place).

Potential sources for $120k down:
- Parents help with the downpayment
- Inheritances from grandparents, etc.
- Stock options from working for a start-up that gets bought / goes public
- Marry rich
- Live with parents for two years with dual incomes and no kids and save $5,000/mo.
- Sell condo you bought right out of college for a big profit (with your parents gift for the smallish down payment)

I'm not sure why so many people assume that successful low 30s families got all of their money by working and saving. With a husband and a wife there is double the family / double the special circumstances to help out.

 

[homer_simpson]

Yes, it's hard to save 20% down. I personally saved over $120k before I was 25. It helped that the stock market was very kind to me (over 100% gains).

But you guys are having trouble thinking outside the box:

20% down is not required. I have neighbors with FHA loans (3% down) and co-workers that did 80/10/10 loans (yes, after the new regulations were in place).

Potential sources for $120k down:
- Parents help with the downpayment
- Inheritances from grandparents, etc.
- Stock options from working for a start-up that gets bought / goes public
- Marry rich
- Live with parents for two years with dual incomes and no kids and save $5,000/mo.
- Sell condo you bought right out of college for a big profit (with your parents gift for the smallish down payment)

I'm not sure why so many people assume that successful low 30s families got all of their money by working and saving. With a husband and a wife there is double the family / double the special circumstances to help out.

Nailed it right on the head!  I remember buying my 645sqft condo in Emeryville for $65k right out of college.  Flipped that for $215k about 2 years later.  Without that money I wouldn't be #FARMMIE but #BROKKIE

 

[Irvinecommuter]

Yes, it's hard to save 20% down. I personally saved over $120k before I was 25. It helped that the stock market was very kind to me (over 100% gains).

But you guys are having trouble thinking outside the box:

20% down is not required. I have neighbors with FHA loans (3% down) and co-workers that did 80/10/10 loans (yes, after the new regulations were in place).

Potential sources for $120k down:
- Parents help with the downpayment
- Inheritances from grandparents, etc.
- Stock options from working for a start-up that gets bought / goes public
- Marry rich
- Live with parents for two years with dual incomes and no kids and save $5,000/mo.
- Sell condo you bought right out of college for a big profit (with your parents gift for the smallish down payment)

I'm not sure why so many people assume that successful low 30s families got all of their money by working and saving. With a husband and a wife there is double the family / double the special circumstances to help out.

Nailed it right on the head!  I remember buying my 645sqft condo in Emeryville for $65k right out of college.  Flipped that for $215k about 2 years later.  Without that money I wouldn't be #FARMMIE but #BROKKIE

I think that is certainly a viable option but it's much much more difficult to do that these days with student loans, home prices, and loan restrictions. 

 

[eyephone]

Yes, it's hard to save 20% down. I personally saved over $120k before I was 25. It helped that the stock market was very kind to me (over 100% gains).

But you guys are having trouble thinking outside the box:

20% down is not required. I have neighbors with FHA loans (3% down) and co-workers that did 80/10/10 loans (yes, after the new regulations were in place).

Potential sources for $120k down:
- Parents help with the downpayment
- Inheritances from grandparents, etc.
- Stock options from working for a start-up that gets bought / goes public
- Marry rich
- Live with parents for two years with dual incomes and no kids and save $5,000/mo.
- Sell condo you bought right out of college for a big profit (with your parents gift for the smallish down payment)

I'm not sure why so many people assume that successful low 30s families got all of their money by working and saving. With a husband and a wife there is double the family / double the special circumstances to help out.

Nailed it right on the head!  I remember buying my 645sqft condo in Emeryville for $65k right out of college.  Flipped that for $215k about 2 years later.  Without that money I wouldn't be #FARMMIE but #BROKKIE

I think that is certainly a viable option but it's much much more difficult to do that these days with student loans, home prices, and loan restrictions.

It's up to the person curbing the spending habits.
Also, you have to consider, does it make financial sense to go to a private university if your goal is to be a teacher.

Loan restrictions in a way is good. During the last real estate run up, there were many people who were unqualified for the home loan.

 

[paperboyNC]

I think that is certainly a viable option but it's much much more difficult to do that these days with student loans, home prices, and loan restrictions.

I hear way too much whining about student loans. Students that get accepted to UCLA and USC and choose USC and incur an extra $25,000/yr in student loans are dumb. Go to the state school that's cheaper

 

[irvinehomeowner]

I think that is certainly a viable option but it's much much more difficult to do that these days with student loans, home prices, and loan restrictions.

I hear way too much whining about student loans. Students that get accepted to UCLA and USC and choose USC and incur an extra $25,000/yr in student loans are dumb. Go to the state school that's cheaper

#IHOIvy

 

[Irvinecommuter]

Yes, it's hard to save 20% down. I personally saved over $120k before I was 25. It helped that the stock market was very kind to me (over 100% gains).

But you guys are having trouble thinking outside the box:

20% down is not required. I have neighbors with FHA loans (3% down) and co-workers that did 80/10/10 loans (yes, after the new regulations were in place).

Potential sources for $120k down:
- Parents help with the downpayment
- Inheritances from grandparents, etc.
- Stock options from working for a start-up that gets bought / goes public
- Marry rich
- Live with parents for two years with dual incomes and no kids and save $5,000/mo.
- Sell condo you bought right out of college for a big profit (with your parents gift for the smallish down payment)

I'm not sure why so many people assume that successful low 30s families got all of their money by working and saving. With a husband and a wife there is double the family / double the special circumstances to help out.

Nailed it right on the head!  I remember buying my 645sqft condo in Emeryville for $65k right out of college.  Flipped that for $215k about 2 years later.  Without that money I wouldn't be #FARMMIE but #BROKKIE

I think that is certainly a viable option but it's much much more difficult to do that these days with student loans, home prices, and loan restrictions.

It's up to the person curbing the spending habits.
Also, you have to consider, does it make financial sense to go to a private university if your goal is to be a teacher.

Loan restrictions in a way is good. During the last real estate run up, there were many people who were unqualified for the home loan.

Of course it depends on spending habits...people who don't save isn't going to be able to afford a house.  Plenty of people save for homes but things happens and their savings go away.

It is also true that maybe a teacher shouldn't go to private school as a matter of economy but many people don't really know what they want to do until they get to college.  Personally, I don't think private schools are good investments but others disagree.  You also have to factor in graduate school.

I am agree that loan restrictions are good but the pendulum has swayed way to much.  The amount of paperwork and hurdles one has to cross just to refinance an existing loan is incredibly daunting...I cannot even imagine what a new purchase would be like.