\t\t\t\tThe house prices in CA where I live (Orange County) are insane.<\/p>\n
The average low-end house is $550,000. Two stories and a small back yard is $700,000. A slightly bigger back yard brings up the price to $800,000.<\/p>\n
Suppose you put 20% down on a $550,000 house. You pay the loan off for 15 years.<\/p>\n
Monthly payments:<\/p>\n
Buy 3 bedroom house: 4000 a month for 15 years, about 800 of which are taxes
\nRent 3 bedroom apartment: 2000 a month.<\/p>\n
After 15 years: 720000 paid on house
\nAfter 15 years: 360000 paid on rent<\/p>\n
How long would it take to break even?<\/p>\n
Savings of $1,200 a month for 25 years!<\/p>\n
So to make financial sense, you have to live in the house for 40 years, at which point you break even.<\/p>\n
What’s worse about this is $4,000 a month is quite a lot of money. It’s not all post-tax dollars due to writing off interest, but nonetheless unless you make $100K a year you’re going to be hurting. To be safe you really need a two income household.<\/p>\n
A small house just isn’t worth that much damn money. That is why in other parts of the country houses can still be found for $250K.<\/p>\n
Unfortunately, the only areas that I know of that have game companies are Silicon Valley and Southern CA, both of which are the highest priced areas in the country.<\/p>\n
Funny but true: These prices reflect the recent downturn! A year ago the numbers were 15% higher.\t\t<\/p>\n","protected":false},"excerpt":{"rendered":"
The house prices in CA where I live (Orange County) are insane. The average low-end house is $550,000. Two stories and a small back yard is $700,000. A slightly bigger back yard brings up the price to $800,000. Suppose you put 20% down on a $550,000 house. You pay the loan off for 15 years. […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[3],"tags":[],"_links":{"self":[{"href":"https:\/\/rakkar.org\/blog\/index.php\/wp-json\/wp\/v2\/posts\/347"}],"collection":[{"href":"https:\/\/rakkar.org\/blog\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/rakkar.org\/blog\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/rakkar.org\/blog\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/rakkar.org\/blog\/index.php\/wp-json\/wp\/v2\/comments?post=347"}],"version-history":[{"count":0,"href":"https:\/\/rakkar.org\/blog\/index.php\/wp-json\/wp\/v2\/posts\/347\/revisions"}],"wp:attachment":[{"href":"https:\/\/rakkar.org\/blog\/index.php\/wp-json\/wp\/v2\/media?parent=347"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/rakkar.org\/blog\/index.php\/wp-json\/wp\/v2\/categories?post=347"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/rakkar.org\/blog\/index.php\/wp-json\/wp\/v2\/tags?post=347"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}