Not Buying It In

[no_such_reality]

I love the OC register’s Buying It In … column on Sundays.

Here’s the link to Sunday’s buy it in Fullerton from Sunday.

Notice the required incomes to make the payments.

Notice the time-bomb of an ARM option that probably is the one that actually makes it affordable for people.

A completely average house in a ok neighborhood requires an income in the Top 5% of the California.

Buying It

We can argue about whether or not the market will go down, how much it will go down and how much inflation will be responsible for, but one look at required incomes to afford an ok house in a ok neighborhood for working class families shows how out of whack it has become.

[Peace]

It is crazy. Check out the neighborhood profile: the median age = 32 yrs, education levels, median household income less than $50,000.

This particular house seems to be about as good as it gets in the neighborhood. Not every neighborhood in CA will be gentrified – geez.

I don’t know about Fullerton? Is there something special about this location?

[no_such_reality]

It’s about a 1/2 mile from downtown Fullerton, which is attempting to gentrify. But basically, it’s like Anaheim, Garden Grove, any of the North Orange county cities.

It’s also a 1/2 mile to Fullerton U. A 1/2 mile to south is the Santa Fe train tracks which are busy and it splits and wraps around a 1/2 mile to the west and goes northeast becoming a Union Pac line.

It’s also about a 1-1.5 mile to the I5, 91 and 57 freeways, west, south and east respectively.

[irvinesinglemom]

Ohhhhh, I am so excited to read about Fullerton on Piggington! My (ex)-husband and bought a house right around the corner from this one in 1998 for 250k. It was the biggest (2500sqft) in the entire neighborhood due to a big add-on by prior owners. Most are around 1800sq ft. When we moved in, it was practically unliveable. It was just awful. It was so gross, that even without planning on doing so, we ended up doing a top to bottom remodel over the next 6 years. We sold in 2004 to move to Tustin, for $650, which was a good $125 over all the comps. But all the comps were as nasty as ours had been when we first moved in. So I saw this article yesterday and just gaped. Believe me, this house is most likely GROSS inside. Yech. What FOOL would pay that much money? The only reason could be that it’s in the Troy HS district which some people in OC would give a limb to send their kid to.

[Mexico Resident]

That is so true. If you look at the LA and San Diego housing stock a lot of it is old and gross.

[mixxalot]

Overpriced and poor quality

I looked at homes this past weekend in Ventura and Camarillo in southern California Ventura county. Most were overpriced between 675k and 900k for what you get.

[BikeRider]

A fool and his money…………

I re-read the tulip craze of 1600’s.

If you like graphs, you’ll always like the tulip bubble graph…

http://www.stock-market-crash.net/tulip-mania.htm

The statement at the end of the article is says it all…

“The financial devastation that followed the tulip bulb crash lasted for decades, crippling Dutch commerce. The price of tulips at the height of the mania was $76,000; 6 weeks later they were valued at less than one dollar! The only people who prospered from the insanity were the smart money who liquidated at the top.”

[Author]

Posts