« I have painted the world red. | Main | *cough*bullshit*cough* »
May 03, 2004
The Spiraling Trap of Consumerism in California
As a Southern California resident in her mid-20s, looking to establish her place as a contributing member of society and community, I'm screwed. Let's look at the factors working against me:
The obvious first is the insane growth rate of dwindling real estate inventory in the Los Angeles area. This house would be valued at over $650,000 in Southern California. Standard methodology for purchasing any home is to come up with 20% down, and to borrow the rest. On this theoretical home, magically transplanted from Oregon into Thousand Oaks, I'd have to come up with $130,000. Sure thing, Mr. Banker, let me get right back to you on that one. The cause of these astronomical prices are supposedly low interest rates and declining home availability. I'll believe the latter.. mostly. I also think "The Man" is to blame. Who is "The Man" in this instance, you ask? "The Man" is any corporation out to ride the wave of the marketplace to make a quick buck. So what does "The Man" do? "The Man" invents downpayment loans, interest only mortgages, and reverse mortgages to take advantage of ever-increasing living expenses. On the first, I could pay off two loans at once, and acrue interest on them at the same time! But I could get myself into a house with no money down! On the second, I could forgo paying ANY principle on the loan and merely pay the interest. It's a fantastic concept.. I'd have to rely on variable market conditions to obtain any equity in my home, and only pay 1/5 the payment I would otherwise. The last, well, I'll never own a house in California, so it's not even worth me ranting about.
Well, you may ask, what about renting? Isn't the country in one of the largest vacancy epidemics in the rental industry? Sure! But this supposed sluggishness in the Los Angeles rental market sure isn't stopping rents from going up on average 18% every quarter ($1650 for a 880 sq ft 1 bedroom + loft - sure that's an extreme example, but the low-end is hovering around $1300).
I know, I could get a roommate, or rent a room. Too bad the consumer-driven market and my consumer-driven mentality has encouraged me all my life to accumulate a truck load of shit that I have some sort of emotional attachment to. Plus paying $800 for 300 sq ft of my own space and a shared bathroom isn't precisely my cup of tea (I know, I'm spoiled).
So where does that leave me? It leaves me with a choice of three options: a) live with my parents (instant elimination) b) play the game, spend over half my monthly net for a roof over my head, eliminating my retirement savings or any other sort of forward-looking investments or c) set up a tent in my company's parking lot (think they'd mind?).
Oh, but I forgot option d)... I could play the game by becoming one of them. I could weasel myself into land ownership, and become another one of those assholes that overcharge for a rat-infested building under a freeway just so I can afford to pay for my own home.
How did Gordon Gecko put it?
"Greed is good."
Posted by irena at May 3, 2004 03:57 AM
Comments
option e) Move north 1 state!
(btw, that's nuts!)
Posted by: matt at May 3, 2004 04:02 AM
Yeah, the situation out here is insane. My dream is to tough it out for a bit here, then move to a more sane state and set up a gaming company somewhere that's both beautiful AND affordable (california is neither!).
Posted by: travis at May 3, 2004 08:43 AM
I agree with the spoiled part. :)
Posted by: Draven at May 4, 2004 04:28 AM
Yeah Gaming Company, I'm going to have to side with travis on this one.
Although, I want to buy a house out here also, but as you've pointed out the prices are astronomical. So I guess creating a Web Company that does 100% of it's business online that you could run from your $135k 5 bedroom 4 bath 4k sq ft. (15k sq ft. lot) bakersfield home, would be cool. But if it was 100% online then you could very easily be anywhere.
-- Rumble
.p.s. Draven are you the same Draven from GT?
Posted by: Rumble at May 27, 2004 03:32 AM