Off topic: Californians shed some light

techy2468

Registered Users (C)
i am curious to know how people can afford to spend so much for housing?? in california....

i am from bangalore, india.....i wanted to help my parents buy a house....but the prices have gone so high that it almost looks like california........i am trying to figure out whether i shall ask my parents to move to another city or what??

eg: Average household income(guesstimate) of bangalore: $6k
minimum price of house: 2 bedroom apartment, 800 sq foot, $45k
rental for same property: $150
interest rate: 12%

thats almost 8 times a household income....

reason for this boom is that every indian in the world with some spare money is investing in bangalore properties....prices have gone up 4 times in the last 5 years....


i think california has seen similar trend....i want to understand why people living in california will not move out to other places........ its almost like californians spend 50% of their income on housing....and atleast 2 hours on commute......is this true??


if we take the average household income to be around 100K.

shouldnt housing start from around 300k for something like 1000sf 2 bedroom unit...

i am still unable to understand who buys those houses for > $500k with average income being around 100K.

is it possible that rich people from all over usa/world started investing....leading to speculative housing market???
(just like bangalore, india)
 
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