These are younger friends of ours who are in their 30s or early 40s trying to buy a home in California. To make some sense of this most people in their 30s and 40s cannot afford to buy a home here even if they both have good jobs and work hard here in California.
I recommended that they try to buy land remotely somewhere in California or elsewhere and build their own home since they are presently renting land with a home on it where they keep their horse or horses.
They were trying to figure out how to buy a house with land even though they both had good jobs and both work hard and have a teenage daughter.
However, My wife and I told them that it really doesn't matter if they both have good jobs and work hard here in Califronia because it is presently impossible to leverage a house for most 30s and 40s people now with children anywhere in California.
To make some sense of this one of my sons in law and his wife bought a house in San Diego County in 2017 and even then when they had to be making 100,000 dollars a year between them they could barely buy a good house in San Diego County. However, now he was telling me that he would have to make 400,000 dollars a year to buy that same house because of changes in rules regarding getting loans for buying a house in his county.
How many people do you know that make 400,000 dollars a year?
Even I could count on one hand or both likely the people I know making that much money or more.
If you do research if you look carefully if you make 400,000 dollars a year you are considered to be in the top 1% of incomes in the whole U.S. (if you make 400,000 dollars a year or more).
This is the problem (at least in California right now) where it is so cost prohibitive for people in their 30s and 40s to buy a house. So, unless they have a rich aunt or uncle or parent or grandparent to help them buy this house it just isn't happening anymore!
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