Care to guess how much this house in my neighborhood is listed for?
Yep, a 2 bedroom 1.5 bath house THIRTY TWO BLOCKS further away from the beach than I am is listed at about a million bucks. A house that has the same number of bedrooms and bathrooms as my apartment does. The apartment I pay $1949 a month for. Sure, I don’t have a backyard, but then again I have a park overlooking the ocean 1 block away that I use as my backyard!
For my $1949 a month in rent I could own a pretty nice house in most other places away from LA, SF, NYC or Boston. But here I could not even buy a cardboard box that I would feel comfortable living in…not if I wanted to take out a legitimate mortgage for 30 years. Sure, sign me up for a 5 year interest-only loan and I could get in anything I want – but I have a head on my shoulders that won’t allow me to do something so stupid as to buy a house I know I cannot afford in 5 years. So I rent.
People (including family members) ask me all the time why we don’t buy something and all I have do is send them a listing of something in my price range and then they begin to understand. Then I show them what a decent sized house goes for in a nice neighborhood and they really start to understand. This house is in a neighborhood not as nice as mine, is miles from the beach, and is probably no bigger than my apartment is. For a million bucks.
That, my friends, is why we rent. At least until we leave for Taos, NM where I will definitely be buying something. People who continue to buy in this Southern California market are off their rockers, if you ask me.