I live in a coastal city in San Diego county. I am 5 miles from the beach. San Diego has the highest prices in California.
An average home is about $600,000 and I have seen one bedroom crap houses with no yards for over $400,000.
I live in a 3 bedroom, 2.5 bath condo. It is pretty much a regular house (2 car garage, yard, two story, no other units attached, etc.) only my home has a condo ownership, so its less money than a house.
My mother keeps talking about how one day my husband and I will want to move out of our home, but how will that be possible when a home here will make us house poor?
We could rent out our condo, but we would still need a huge loan. Or we could sell our home and put the money towards a new house but then we would still have a loan that is hundreds of thousands of dollars.
How is this possible? How do people afford to buy a home?
I can only see us buying a house out of state since California will bleed us dry!
Any advice?
My condo will be paid off next year. It would sell for over $400,000
MARTHA
You can check out any time you like,
But you can never leave.
I think you pretty much just have to stay in your condo until you’ve built up enough equity to put a decent down payment on the next home. That’s what I did anyway…twice.
Good luck!
California will bleed you dry indeed. If you sold your condo to get into a house, most likely than not you will have to buy up…granted you would have more funds out of the condo. However, property tax alone on your new more expensive home will strangle you financially. I divorced, sold and split farm ranch equity and now I am leaving California in search of affordable housing… Texas still a good market in my opinion…and not a bad state to live.
You could play the wait and see game, the prices in California can not possibly stay as high as they are now, they have already leveled out some, they may start to drop how long don’t know. Your only other option for affordable housing is to move out of state, I agree with the other guy Texas is a nice place to live.
I would suggest two options, either sell your home and use most of your proceeds as down money to help lower the mortgage payments or refinance and take cash out to use as down money and rent out your condo. Keep in mind the interest you pay can be written off on your taxes, make sure your consult your CPA. There is no easy way about getting a bigger home but from the sounds of it you and your husband have been good with your finances and I’m sure could make it work if it is truly something that you wanted to do. I hope this helps you but if you need help or have any questions please email me.
You can buy a home with planning and preperation!!!
Wether your interesting in a primamry residence or an investment property to rent out I can help.
I am a Loan Officer specializing in residential financing and the process is to first find out more information (non-credit information). Please go to my website and click on APPLY NOW for a free quote and evaluation.
At my website I also have several free articles that explain situations like yours.