How do you plan for buying a house in USA?

[Bebpo]

Not sure how this works.  I have a condo and it's going up in value along with the rising housing market...but so are all the houses!  So it's like no matter how much it goes up in value, the gap between the sale value and the buy value of entry level houses is always going to be pretty similar regardless of the market time.

So I'm wondering like, if you're not going to be making a lot more money anytime soon, how do you "upgrade" to more expensive houses in USA?  Just slowly pay off your mortgage until you have more equity in the house, then when you sell your house you have a bigger downpayment which will let you get a bigger mortgage for the next house? 

For example, the local starter homes here in boring simplesville Orange County where I live are about $700k.  My condo is worth maybe half that and I'm only 3 years into paying into the mortgage so I don't have a ton of equity.  Trying to figure out how to plan out to make the jump sometime in the next 2-5 years to become a homeowner.  Anyone done this before?  My fiance's still in school and isn't going to have a job to chip in financially for like 10 years (finish college + grad school first) + she'll be paying back grad school loans when she does so she's not going to have a ton of money.  My place doesn't really accommodate our living habits the best  (we both like having private personal space and my place is super open air design), so would like to get a starter home down the line that matches our personalities more.

[CajoleJuice]

starter homes are $700k there? the fuck? i thought long island was expensive.

[Shadow Mod]

I wouldn't bother with a house in cali unless I was in a family way and did my homework on school districts.

[Raban]

For example, the local starter homes here in boring simplesville Orange County where I live are about $700k.  My condo is worth maybe half that and I'm only 3 years into paying into the mortgage so I don't have a ton of equity.  Trying to figure out how to plan out to make the jump sometime in the next 2-5 years to become a homeowner.  Anyone done this before?  My fiance's still in school and isn't going to have a job to chip in financially for like 10 years (finish college + grad school first) + she'll be paying back grad school loans when she does so she's not going to have a ton of money.  My place doesn't really accommodate our living habits the best  (we both like having private personal space and my place is super open air design), so would like to get a starter home down the line that matches our personalities more.

don't do it.

[Himu]

Why do you need a home anyways? You're not married. You have no children. You're young. You live in California. What is there to gain aside from a big empty home and stacks of bills?

[Arbys Roast Beef Sandwich]

Where do you live in OC that small houses are $700k? That seems high.

Also, with nobody to help you pay that down for the next decade, getting a house is probably a baaaaaaaaad idea. Live within your means, I say.

[Bebpo]

Well I guess the other alternative is to go from condo -> condo and just find one with a better layout for us.  Would also be nice to not have wall to wall neighbors and have to worry about sound and have shitty parking (aka benefits of a house). 

starter homes are $700k there? the fuck? i thought long island was expensive.

Yup, and this isn't even the nice part of OC. 

Orange County CA goes like this:

Newport Beach/Laguna Beach/Aliso Viejo/Beach cities - ~$2 million 2 bedroom home.
Costa Mesa - Not all that nice but near Newport Beach so $1 million 2 bedroom home.
Irvine - Safe and boring city $1 million 2 bedroom home.
Tustin - Less safe and slightly less boring city that no one cares about $700k 2 bedroom old beat up home.
Orange - Might get stabbed or shot at night, but unlikely most of the time - 500k 2 bedroom home.
Santa Ana - Decent chance of being shot and stabbed at night $350k 2 bedroom home.

[benjipwns]

Well, first, sell the time share you got from that "free" Vegas trip.

[a slime appears]

lol buying a home in California. Don't bother; the earthquakes, landslides, and fires will destroy it in five years anyways.

[Bebpo]

Yeah, was just thinking ahead.  For now I'm happy with what I've got.  I'll re-evaluate the situation in 5 years when hopefully I'm making more money and have more equity in my current place.

And yes, everywhere is on fire around here.  Been coughing from the ash ><

Well, first, sell the time share you got from that "free" Vegas trip.

[Rusty Shackleford]

Orange County CA goes like this:

[white panic]

geez bebs, hyperbole much? 

We're entering another housing boom. Prices in even my own neck of OC have risen hilariously fast over the last couple years. Totally reminiscent of the last housing bubble, complete with zero down and ARM's making a comeback. Since you're a homeowner with no equity, I'd recommend you stick with what you have. Down the road, once your fiance finishes school and house prices have crashed a little, then maybe you can use the equity you've built up into a nice down payment on a bigger place. To sell and buy a new place right now would mean paying some inflated prices for a house.

[tiesto]

Damn at condos costing 1/2 of what starter homes do... condos here are fucking expensive, maybe only 50-100k less than a starter home. And yeah, damn at those housing prices... what are the taxes like? LI mayyyy still have you beat on that aspect.

[Brehvolution]

Property taxes on a $1M 2 bedroom house.

[Kara]

You make Tustin and Orange sound like Stanton, Bebpo.