Comments on: … And Boy Are My Arms Tired

By: Bahn

Bahn — Tue, 10 Jun 2008 19:53:22 +0000

Yes, Boston is our only market that requires users to register. It’s the only way the local MLS would let us share the data feed with our users.

Kobe needs to get to the free throw line for the Lakers to win tonight.

By: Marcy

Marcy — Tue, 10 Jun 2008 19:45:55 +0000

Indeed, Dillon. Getting in the realms of what you already pay for rent, makes the most sense. You already know you can afford THAT much. Keep in mind however, that mortgage insurance and homeowner’s insurance are gonna bang that up a couple hundred per month, plus you must save part (I figure 10%) of your salary toward home expenses, maintenance and yearly property tax. If you can still afford that, search and buy.

I read something this morning that gave median income in southern California at just under 50k per year. It doesn’t take a rocket scientist to understand that if your gross income is in that ballpark, you simply can’t afford to buy a home (median price is still around 500k I believe). No wonder people can’t come up with a 20% down, either. That’s not small potatoes. I’d much rather rent the rest of my life in a decent, convenient area that I enjoy, than buy some miserable dump in a horrid section of town, many, many miles away from work. That would not be a wise investment.

By: Subprime Deal: Why is BofA Buying Countrywide? | Redfin Los Angeles Sweet Digs

Tue, 10 Jun 2008 14:42:54 +0000

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By: Dillon

Dillon — Mon, 09 Jun 2008 17:50:38 +0000

Boston requires users to register? Wow, that’s crazy — not to mention useless. I mean, how hard is it to fake a name on the Internet? Maybe my name is not “Dillon” after all.

Anyways, about income and rent ratios — I think rent ratios is a better measure than income ratios. If you look at real estate as a shelter, people have to either rent or own. So it makes sense that purchase prices (monthly payments) will have to “fall in line” with monthly rents.

But I don’t think income is as relevant. When people can’t afford to buy, they can always rent. Besides, there will always be people who shouldn’t be owners. Even at the height of home ownership, only about 69% of U.S. households own their own homes. And I imagine that percentage is even lower in Southern California. So one is expected to make more than median income in order to afford a median-priced home. For someone making “only” the median income, they really should be looking at low-end homes, or renting.

Nevertheless, I agree that prices will have to fall more. It still costs a lot more to own than to rent.