For newcomers.....how did you overcome the lower wages of TN? (Knoxville: rent, mortgage)

[CAtoGA]

Well said Tony. I know exactly where you're coming from. I've been angry over the housing situation in CA for years now. All I can think about when walking to the store past the rows of little 1930's bungalows in my neighborhood selling in excess of 600k is that I can't afford ANY of them. Not in this neighborhood, and not in any others around me. Of course I could take out an IO loan or something and just scrape by, but then again, why even bother when one type of stress would be replaced with another? It is really frustrating when you've climbed the job ladder and even doing pretty well and realize that you can't keep up with the skyrocketing cost of living.[/quote]


Here, here! I can't agree more and it just gets more and more frustrating every day, especially when I remember that my family won't be moving for at least a year! My friends and family ask my why I want to leave CA, why not just move somewhere else in CA? Mainly because there is no place in CA worth living in that is affordable (that is of course my own humble opinion). I keep saying that I can be ready to go on a moments notice, but the hubby is the practical one and he says we need to wait a while.

[suzycue]

Originally Posted by CAtoGA

Well said Tony. I know exactly where you're coming from. I've been angry over the housing situation in CA for years now. All I can think about when walking to the store past the rows of little 1930's bungalows in my neighborhood selling in excess of 600k is that I can't afford ANY of them. Not in this neighborhood, and not in any others around me. Of course I could take out an IO loan or something and just scrape by, but then again, why even bother when one type of stress would be replaced with another? It is really frustrating when you've climbed the job ladder and even doing pretty well and realize that you can't keep up with the skyrocketing cost of living.

Here, here! I can't agree more and it just gets more and more frustrating every day, especially when I remember that my family won't be moving for at least a year! My friends and family ask my why I want to leave CA, why not just move somewhere else in CA? Mainly because there is no place in CA worth living in that is affordable (that is of course my own humble opinion). I keep saying that I can be ready to go on a moments notice, but the hubby is the practical one and he says we need to wait a while. [/quote]

We are suffering the same here in Miami, so I feel your pain...my friends and family also try to convince me to move up north within Florida and I am like, what will I be able to buy or rent? too expensive there tooo! I want a change...I want to live in a less stressful place, make a better living and possibly form a family. I want to meet friendlier people, make more friends, and just enjoy life better...you know?

[Angelrocks]

I thought the housing in CA was expenisve in certain areas. I have to ask a question: The only way somebody is able to charge that kind of money is when people have a buyer. I would assume many buyers already had homes, and are trading up or down?

It seems a lot easier on some people if they already had a home with a lot of equity, then sold and made a new purchase. When a person has 400,000k or 500,000k in equity, it seems easy to sell and buy again, even if they move into a more expensive home...


Is that how it works there? I would think it would be more challenging for first time buyers than for second or third time. Also isn't places like Rancho Cucamonga less expensive? I looked at the housing there and it didn't seem quite as high. Beautful area...Why is it less to live there? Is it on a fault line?

[Tony1790]

Originally Posted by Angelrocks

I thought the housing in CA was expenisve in certain areas. I have to ask a question: The only way somebody is able to charge that kind of money is when people have a buyer. I would assume many buyers already had homes, and are trading up or down?

It seems a lot easier on some people if they already had a home with a lot of equity, then sold and made a new purchase. When a person has 400,000k or 500,000k in equity, it seems easy to sell and buy again, even if they move into a more expensive home...


Is that how it works there? I would think it would be more challenging for first time buyers than for second or third time. Also isn't places like Rancho Cucamonga less expensive? I looked at the housing there and it didn't seem quite as high. Beautful area...Why is it less to live there? Is it on a fault line?

I'm sure Silverbox will be along in a minute, but what makes it easy and even possible for people to buy $600k or $1mil dollar homes is what is going to make the crash so effective and complete when it happens.....it is 100% financing.

100% financing is the only way that people have been able to afford these high prices homes and 100% financing is one of the programs that is under scrutiny in many parts of the country.

For example, my home I got money in my pocket when I bought it. Sales price $250,000...I did a 80/20 loan.....80% first and 20% 2nd mortgage, seller paid closing costs and gave me $8500 in cash for repairs that I wanted to do.

In the old days you put down 20% so that you had some skin in the game, tell me, how many people have $120,000 in cash to put down on that $600k house? Not many.

But what about move up buyers, do they put money down, most don't. The "old" capital gains rule said that you had to roll over your gain from your house into a new house to keep from getting taxed on it. Now you get to keep the profit up to $500k tax free as a couple and then can buy a new home with 0% down!!

So dear readers, when the new federal guidelines take effect and the rest of the lender guidelines change to do away with most 100% loans, do you think that the number of qualified buyers will increase or decrease? When the numbers of buyers decrease, what will happen to prices? Straight supply and demand.

Besides we are not just talking about CA now, look at TN and NC, I was thumbing through the pages of a realty mag last week, I was shocked at the number of homes between $500k and $1.5 mil in TN and NC. Who are they selling these homes to?? How in the heck can they justify those prices in East TN????? Even the whole neighborhoods of $300k homes, even those homes are waay above the underlying ability for the average buyer to afford if it were not for 100% loans, interest only and neg am.

And when the above programs end......as they are now.....all heck is going to descend on the sellers who bought at the top and will not be able to sell, unless at a loss.

Welcome to the new reality........I know that TN has not been effected as yet.....but I can't see that those people owning $300k and up homes are going to be able see any measureable profits if things start happening in TN as they are here in WA and CA/AZ/FL

Tony

[Makupfool]

Not sure if this is helpful or not but I went to salary.com and put in random info (cashier) zip code 37214 (my old home zip in TN) It then gave alternative job titles, one being 'food and beverage cashier'.
....this is what it came up with: (of course this does not take into consideration experience etc)(also some grocers are unionized which will raise the salary rates too)

Percentile
10th 25th 75th 90th
Donelson, TN 37214
$22,689 $24,460 $27,201 $27,926


FYI - the major grocer in Tennessee is Kroger (in Colorado they are called King Soopers, but owned by Kroger) and TN also has Publix, of course, Super Kmart, Super Walmart, as well as Sam's Club and Costco are all major grocers to consider.

HTH

Anna aka Mak

[hiknapster]

Salary.com is notoriously off. Do you really think a cashier makes a minimum of $22,000?

[Makupfool]

Originally Posted by hiknapster

Salary.com is notoriously off. Do you really think a cashier makes a minimum of $22,000?

Actually, with some retailers, yes. It works out to be approx $10.50 per hour.
I have found salary.com to be fairly reliable, for a range of salaries that is. Considering that most often the exact job title may not be available, there is certainly room for error.

[Tony1790]

Originally Posted by Makupfool

Actually, with some retailers, yes. It works out to be approx $10.50 per hour.
I have found salary.com to be fairly reliable, for a range of salaries that is. Considering that most often the exact job title may not be available, there is certainly room for error.

Thanks for the link and the post, I've applied to some of the jobs that MBmouse gave me links to and I've already gotten some emails for interviews, which is great news and I'm dearly thankful for.

Having said that, most of the positions are $10 per hour, I know that there are many people making less than even that and it makes me feel sad. $10 per hour is so freaking minimal in what it leaves you with at the end of the month. After tax you're talking what $1700 when you subtract $200 for gas, $600 for rent, $200 for utilities, $300 for food, $$250 for car payment, $150 for misc, that's all of your money......where's health care, where's retirement, where's room for a house payment vice a cracker box?, where's discretionary spending money? And we wonder why people are forced into credit card debt to just buy grocercies and to get by!!

My 75 yo granddad and 69 yo granny both work 40 hours per week in order to pay their medicine bill....not medical bills...just medicine and their home has been paid for for over 20 years.

I've got to get a better education to get a better job somehow, or I'll be the old geezer eating dogfood

Thanks, you got me worried now........like I need a reason to be worried

Tony

(p.s. sincerly, thank you for the post, it is making me think job strategy)

[MysteryDriver]

Originally Posted by Tony1790

Thanks for the link and the post, I've applied to some of the jobs that MBmouse gave me links to and I've already gotten some emails for interviews, which is great news and I'm dearly thankful for.

Having said that, most of the positions are $10 per hour, I know that there are many people making less than even that and it makes me feel sad. $10 per hour is so freaking minimal in what it leaves you with at the end of the month. After tax you're talking what $1700 when you subtract $200 for gas, $600 for rent, $200 for utilities, $300 for food, $$250 for car payment, $150 for misc, that's all of your money......where's health care, where's retirement, where's room for a house payment vice a cracker box?, where's discretionary spending money? And we wonder why people are forced into credit card debt to just buy grocercies and to get by!!

My 75 yo granddad and 69 yo granny both work 40 hours per week in order to pay their medicine bill....not medical bills...just medicine and their home has been paid for for over 20 years.

I've got to get a better education to get a better job somehow, or I'll be the old geezer eating dogfood

Thanks, you got me worried now........like I need a reason to be worried

Tony

(p.s. sincerly, thank you for the post, it is making me think job strategy)

I agree
..................

[mbmouse]

Tony, glad to hear some of those jobs called about interviews, but remember, those are starting pays. I have found that a lot of employers here (medical services included, excluding nurses and Dr's) start out rather low in the first 60 or 90 days to see how things work out then will increase quickly after that. I have heard of some folks starting out at $10 per hour, once the training is over, they go up to $12 then a few months later going up to $15 or so. So don't be dis-hearted about the pay just yet, wait to see what they have to say at the interview.