Comments on: Affordability: It’s All Relative http://blog.redfin.com/losangeles/2008/08/affordability_its_all_relative.html Redfin Los Angeles Sweet Digs Thu, 09 Feb 2012 13:33:45 +0000 hourly 1 http://wordpress.org/?v=3.0.1 By: ed hardy http://blog.redfin.com/losangeles/2008/08/affordability_its_all_relative.html/comment-page-1#comment-39576 ed hardy Mon, 30 Nov 2009 01:59:26 +0000 http://blog.redfin.com/losangeles/2008/08/affordability_its_all_relative.html#comment-39576 how much to lie if it’s a problem to lie let’s all lie together on the count of three how much to lie
if it’s a problem to lie
let’s all lie together on the count of three

]]> By: eprobert http://blog.redfin.com/losangeles/2008/08/affordability_its_all_relative.html/comment-page-1#comment-16184 eprobert Tue, 26 Aug 2008 23:03:08 +0000 http://blog.redfin.com/losangeles/2008/08/affordability_its_all_relative.html#comment-16184 The worst part about the CAR "example" is that it does not even reflect their own data. If you look back at their survey data on first-time home buyers, the median downpayment is something like $10,000, NOT 10%. We're looking for a house and make a whole lot more than $62,000 combined, and we can barely afford a $350,000 house. Their numbers are totally bogus. The worst part about the CAR “example” is that it does not even reflect their own data. If you look back at their survey data on first-time home buyers, the median downpayment is something like $10,000, NOT 10%.

We’re looking for a house and make a whole lot more than $62,000 combined, and we can barely afford a $350,000 house. Their numbers are totally bogus.

]]> By: SoCalJim http://blog.redfin.com/losangeles/2008/08/affordability_its_all_relative.html/comment-page-1#comment-16094 SoCalJim Mon, 25 Aug 2008 00:44:19 +0000 http://blog.redfin.com/losangeles/2008/08/affordability_its_all_relative.html#comment-16094 The point being that this is a very serious problem for most of the people in CA. NAR/CAR - whoever, it is the same message each time, and for those who are not sophisticated enough to appreciate the problems or inability to buy a house despite realtors with vested interests telling them otherwise, their problems become your problems, as is evident by our government's "housing bill" (which is stupid, but anyway), and you would think that somewehre along the line, realtors and associations like NAR/CAR are going to be held accountable for their actions, or breach of duty, whatever you want to call it. The point being that this is a very serious problem for most of the people in CA. NAR/CAR – whoever, it is the same message each time, and for those who are not sophisticated enough to appreciate the problems or inability to buy a house despite realtors with vested interests telling them otherwise, their problems become your problems, as is evident by our government’s “housing bill” (which is stupid, but anyway), and you would think that somewehre along the line, realtors and associations like NAR/CAR are going to be held accountable for their actions, or breach of duty, whatever you want to call it.

]]> By: SoCalJim http://blog.redfin.com/losangeles/2008/08/affordability_its_all_relative.html/comment-page-1#comment-16093 SoCalJim Mon, 25 Aug 2008 00:36:27 +0000 http://blog.redfin.com/losangeles/2008/08/affordability_its_all_relative.html#comment-16093 I've explained this before, will do so again since I am bored and to show how easy it is to prove that NAR is just group of idiots. Will use 100k salary (more than 50% above the salary in the example) and the housing numbers provided above. 100k salary Taxes (fed and state combined): ~ 28-33%; 100 - (about 30) = 70k, or about 5.8k per month - woo hoo, sounds like a lot... Gas: $200 / month, so left with ~ 5.6k. Stupid truck. Food: $200/month, so left with 5.4k. Hmmmm. In n Out. Car(s): most families have one or two, so just say 500 to make it easy (again,...conservative): so left w/ 4.9k. Stupid truck. Car Insurance, repair, maint (just lump together to make it easy, although could be more):100-200 per month, so left with about 4.7k. Stupid truck. If bought a house, and if no AMT so you actually can deduct property tax, then net tax about 250, so left with about 4.5k. Now to finally pay the mortgage..... with the PMI, is about 2k per month, so left with 2.5k per month. Hmmm, I'm not feeling so rich anymore..., maybe I should drink more wine or beer (beer- it is cheaper) to feel better. We have not touched any credit car debt, which is very high now, but skip that for now - it ain't going away. We have not even touched moving, move in costs (appliances, any remodel, furniture, etc.), - just add that to credit card debt - if I don't believe the debt it is there, it isn't.... more beer please. Need numbness - debt is killing me. We have not even touched medical expenses; or medical / health insurance. Those costs can vary quite a bit depending on circumstances, so just say 500-700/month for a family, so left with 1.8k per month. Ouch. We have not even touched any retirement, investment, savings. I guess I will have to hope we can save for retirement when we are 60... More beer please. What about kids, school? Hopefully you live in a nice part with OK public schools. Otherwise, pony up... Clothes/ kids, other kids expenses. Who knows... 200 /month, left with 1.6k. More beer please. Oh, and the ~35k for the down, at 3% interest, this family just lost $100 per month in interest - not a lot, but still something. Cable, electric, gas, garbage, etc.: say 100-200 per month, now left with 1.4k. More beer please, have to watch Larry the Cable Guy - now he's funny, just like those NAR guys who told me to buy this great condo.... Just the credit card alone can take you down to 0. Crap - now I need to fix and maintain this house, and/or HOA says I have to give 10k for a new roof and pool. Oh, and if HOA, then another 300 per month. So if that is "affordable" then I guess need to reassess my standard of living, forget a lot of basic expenses, and drink even more beer to forget my problems b/c the NAR told me so and I am drunk in love with my house (and Larry the Cable Guy). I am a home owner, damn it... respect me. Bow to the supreme Gods, NAR. I will buy a house I cannot afford, NAR, NAR, NAR. Their horrible advise has ruined many a middle class family. Too bad people can't think for themselves. And that Alt-A reset chart is a killer.... rough times ahead. I’ve explained this before, will do so again since I am bored and to show how easy it is to prove that NAR is just group of idiots. Will use 100k salary (more than 50% above the salary in the example) and the housing numbers provided above.

100k salary

Taxes (fed and state combined): ~ 28-33%; 100 – (about 30) = 70k, or about 5.8k per month – woo hoo, sounds like a lot…

Gas: $200 / month, so left with ~ 5.6k. Stupid truck.

Food: $200/month, so left with 5.4k. Hmmmm. In n Out.

Car(s): most families have one or two, so just say 500 to make it easy (again,…conservative): so left w/ 4.9k. Stupid truck.

Car Insurance, repair, maint (just lump together to make it easy, although could be more):100-200 per month, so left with about 4.7k. Stupid truck.

If bought a house, and if no AMT so you actually can deduct property tax, then net tax about 250, so left with about 4.5k.

Now to finally pay the mortgage….. with the PMI, is about 2k per month, so left with 2.5k per month. Hmmm, I’m not feeling so rich anymore…, maybe I should drink more wine or beer (beer- it is cheaper) to feel better.

We have not touched any credit car debt, which is very high now, but skip that for now – it ain’t going away.

We have not even touched moving, move in costs (appliances, any remodel, furniture, etc.), – just add that to credit card debt – if I don’t believe the debt it is there, it isn’t…. more beer please. Need numbness – debt is killing me.

We have not even touched medical expenses; or medical / health insurance. Those costs can vary quite a bit depending on circumstances, so just say 500-700/month for a family, so left with 1.8k per month. Ouch.

We have not even touched any retirement, investment, savings. I guess I will have to hope we can save for retirement when we are 60… More beer please.

What about kids, school? Hopefully you live in a nice part with OK public schools. Otherwise, pony up…

Clothes/ kids, other kids expenses. Who knows… 200 /month, left with 1.6k. More beer please.

Oh, and the ~35k for the down, at 3% interest, this family just lost $100 per month in interest – not a lot, but still something.

Cable, electric, gas, garbage, etc.: say 100-200 per month, now left with 1.4k. More beer please, have to watch Larry the Cable Guy – now he’s funny, just like those NAR guys who told me to buy this great condo….

Just the credit card alone can take you down to 0.

Crap – now I need to fix and maintain this house, and/or HOA says I have to give 10k for a new roof and pool. Oh, and if HOA, then another 300 per month.

So if that is “affordable” then I guess need to reassess my standard of living, forget a lot of basic expenses, and drink even more beer to forget my problems b/c the NAR told me so and I am drunk in love with my house (and Larry the Cable Guy). I am a home owner, damn it… respect me.

Bow to the supreme Gods, NAR. I will buy a house I cannot afford, NAR, NAR, NAR. Their horrible advise has ruined many a middle class family.

Too bad people can’t think for themselves.

And that Alt-A reset chart is a killer…. rough times ahead.

]]> By: mp http://blog.redfin.com/losangeles/2008/08/affordability_its_all_relative.html/comment-page-1#comment-15946 mp Sat, 23 Aug 2008 06:49:44 +0000 http://blog.redfin.com/losangeles/2008/08/affordability_its_all_relative.html#comment-15946 how much to lie if it's a problem to lie let's all lie together on the count of three who are you fooling how much to lie
if it’s a problem to lie
let’s all lie together on the count of three

who are you fooling

]]> By: Jose http://blog.redfin.com/losangeles/2008/08/affordability_its_all_relative.html/comment-page-1#comment-15921 Jose Fri, 22 Aug 2008 22:48:55 +0000 http://blog.redfin.com/losangeles/2008/08/affordability_its_all_relative.html#comment-15921 After being stagnant for nearly a year and one half without income form sales commissions, I see no other alternative for The California Association of Realtors but to be optimistic by wanting the public to perceive that this is the time to buy. I just hope that the public is made aware of another waive of foreclosures in the imminent future due to the resetting of the Alt-A loans. Maybe then, property value will reach realistic affordability levels. After being stagnant for nearly a year and one half without income form sales commissions, I see no other alternative for The California Association of Realtors but to be optimistic by wanting the public to perceive that this is the time to buy. I just hope that the public is made aware of another waive of foreclosures in the imminent future due to the resetting of the Alt-A loans. Maybe then, property value will reach realistic affordability levels.

]]> By: John http://blog.redfin.com/losangeles/2008/08/affordability_its_all_relative.html/comment-page-1#comment-15912 John Fri, 22 Aug 2008 20:04:03 +0000 http://blog.redfin.com/losangeles/2008/08/affordability_its_all_relative.html#comment-15912 One other cost to factor in is if it's a condo, which at that price it most likely is, there are assocation fees to pay which can be anywhere from $200-$500 or more. One other cost to factor in is if it’s a condo, which at that price it most likely is, there are assocation fees to pay which can be anywhere from $200-$500 or more.

]]> By: Cindy Allen http://blog.redfin.com/losangeles/2008/08/affordability_its_all_relative.html/comment-page-1#comment-15907 Cindy Allen Fri, 22 Aug 2008 19:02:25 +0000 http://blog.redfin.com/losangeles/2008/08/affordability_its_all_relative.html#comment-15907 Thanks for commenting, Jean and Dominic. It's important for consumers to keep in mind that the goal of Realtors is to sell homes. It doesn't help that the media often reports this info as news without bothering to dissect it, which is of course exactly what CAR is hoping for. Thanks for commenting, Jean and Dominic. It’s important for consumers to keep in mind that the goal of Realtors is to sell homes. It doesn’t help that the media often reports this info as news without bothering to dissect it, which is of course exactly what CAR is hoping for.

]]> By: Dominic http://blog.redfin.com/losangeles/2008/08/affordability_its_all_relative.html/comment-page-1#comment-15905 Dominic Fri, 22 Aug 2008 18:43:08 +0000 http://blog.redfin.com/losangeles/2008/08/affordability_its_all_relative.html#comment-15905 The other problem with the statistics for home affordability in California is that it looks at California as a whole and not at the distribution of people within California. In other words, many of those who can "afford" a home based on those criteria do not live in an area where homes cost the California median. The statistic is too broad for such a large area like California, to be meaningful. While afforability may have increased dramatically in Stockton on San Bernadino, there have been much smaller afforability gains in dense areas like San Francisico, much of Orange County and large swaths of LA County. The other problem with the statistics for home affordability in California is that it looks at California as a whole and not at the distribution of people within California. In other words, many of those who can “afford” a home based on those criteria do not live in an area where homes cost the California median. The statistic is too broad for such a large area like California, to be meaningful. While afforability may have increased dramatically in Stockton on San Bernadino, there have been much smaller afforability gains in dense areas like San Francisico, much of Orange County and large swaths of LA County.

]]> By: Jean http://blog.redfin.com/losangeles/2008/08/affordability_its_all_relative.html/comment-page-1#comment-15904 Jean Fri, 22 Aug 2008 18:02:50 +0000 http://blog.redfin.com/losangeles/2008/08/affordability_its_all_relative.html#comment-15904 Very good point. These artificially uplifting press releases make me so angry. You'd think all the spin doctors would be busy getting ready for the political national conventions instead of cashing checks for the realtors' associations. Very good point. These artificially uplifting press releases make me so angry. You’d think all the spin doctors would be busy getting ready for the political national conventions instead of cashing checks for the realtors’ associations.

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