One of the burning questions I always see in the comments when I walk by these expensive homes is how do people have all this money? Who is buying these 3-4 million dollar houses? Today we are going to find out with @ScottWalters
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When I turned 18 dad patted me on the back and told me I was on my own, must be nice to have family help.
No way I believe all these mommy’s & daddy’s help! That’s total BS. They are greedy and miserable themselves all these parents today. Never ever heard or seen any of this! Most people I know hate their parents or don’t speak to them so there is no way of this $$$ changing hands the way they are saying!!! Lotto, maybe!? 🤔
Same, I’ve been working since I was 13 1/2 just to buy myself a bike.
@@snusinskyI guess you haven't experienced Santa Barbara or Montecito.
Its mostly liberAL POLITICIAN FAMILIES THE ELITE
Same, left home in 79 with $50 from both parents. Also worked since 13, but bought myself travel. So I was ready and prepared to go far far away.
I live in Tampa. 56 y/o. 60k Gross. 17 years teaching in the district, with double master's.. No kids. credit score around 770. Was told I did not qualify to move into my old apartment which is 675 square ft. The reason is that the rent went from one 1k to 1800 over the last three years. And my 60k income doesn't bring in 3x the rent. IIf I did not own my condo I would be screwed.
They don't factor in money in savings when qualifying people?
I know so in the US now you need to show 3 times the rent amount to even qualify for that shitty 675 square foot apartment. So if the rent is $2,000 a month you must have a minimum monthly income of $6,000 a month or $72,000 a year. Plus they want First, Last, and deposit. $6,000 a month just to move in. That's why I retired and moved to Mexico and pay about $400 USD a month.
@@noreenn6976no they don’t and just how much do you think an educator making $60k has sitting around in expendable ‘savings’???!!????
I’m going to hopefully escape Tampa soon I say that cuz I hate it here anyway then I can’t even afford to live in my hometown where my parents are elderly, but nobody likes to be forced out.
Glad you own your condo. You’ll be better off than most of these idiots when the stuff hits the fan, trust me.
Inheritances.
Right off google, TRILLIONS!!! Baby boomers and the silent generation will bequest a total of $84.4 trillion in assets through to 2045, with $72.6 trillion going directly to heirs. The transfer of wealth from baby boomers will account for $53 trillion or 63% of all transfers, while the Silent Generation will hand down $15.8 trillion.
Trust fund babies
@@catladynjhow do we become one?
@@certifiedfinest5065you got to sacrifice and build a trust to leave your descendants
Doctors, lawyers and a police officer from NY own multimillion dollar houses in Panama city Beach. Friend of mines husband is on an environmental law team for Exxon Mobil and that mofo makes killer money.
Hardly any KZhead vloggers show or discuss how seniors or disabled people and veterans on low fixed income are surviving in the U.S. They show us these wealthy "successful" people who are worried about making even more money.
Many are not surviving. Self deletion is the highest its ever been with discarded veterans.
Probably homesteader type channels as they do lots of thrift. I'm more concerned seeing these guys not wearing hats, melanoma is no joke, even if you rich it can take you out in months after diagnosis.
What is average vet pension? Most I know are well north of $40G.
@dennis3739 depends on rank and time in service. Retired officers are making 6 figures. Any "vet" getting low pension wasn't in very long and never gained rank, It isnt a pension they are getting, its disability benefits.
just a bunch of middle age hipsters talkin' bout how smart they are...not the majority
This has to be the easiest video Michael’s ever done. You can ask Scott a question and just move out of the way and let him go, lol.
😂
@@markt.2850 wow. stopped listening to Scott a yr ago. 10 min of repeating 10 sec of info.
That means he is a Pro lets Others get the lime light..🤑🤑🤑
And then just wait for the monthly AdSense payment (~7k/month) to hit the bank. Just ride around talking and live like a tourist
Sometimes keeping mouth shut is harder than stay silent.
My late wife and I loved the Central Coast and lived in Santa Maria and Pismo Beach areas for over 10 years. Twice we went under contract to purchase and both times we bailed because the payment scared us so much. So...we always rented and no regrets. Later lived in Florida and bought in 2006, then got a job back in California in 2009. Like these guys, the market had crashed and we could not rent our Florida home to even cover the mortgage, so it went to short sale. Later we ended up in Oregon and again housing started getting crazy and we stayed on the sidelines as renters. Mind you, we both have California real estate license but the math just did not work out for buying. Sadly she was called to heaven in 2019 while we were in Oregon. I'm now in Phoenix, heart broken but still working and putting one foot in front of the other. Phoenix has some areas where you can still get something for 250k to 350k, but very limited. Instead I rent a really nice condo in a great part of north Phoenix near Scottsdale line for $1585 a month with water, sewer, trash paid along with gated covered parking. Once again, I've done the math and had local realtors tell me that I have such a good deal it would be silly to purchase. In the meantime, there will be a day when I return to the Central Coast as both my wife and I requested our ashes be spread over the Pacific at Shell Beach. Of course no need then to own property...
Hopefully didn't bring the Cali politics to Phx
@kenetic1228 I'm a native of Tennessee if that tells you anything.
Peace to you brother and may your wife rest in peace. Thank you for sharing.
What's the square footage of the fifteen eighty five a month
Scott touched up the biggest culprit for high CA real estate prices IMO. In general, excessive money in the system causes inflation. And people with capital look for ways to get a return on their capital. Capital has gone into the stock market and it's probably overvalued. Capital has also gone into real estate. It has effected those towns with the biggest name recognition the most. Compare Santa Barbara prices with say Provo, Utah (also a very nice town). So is Santa Barbara due for a crash? I think prices are going to be sticky out here, or at least stickier than they should be (think of San Francisco with all its problems, prices should have crash dived by now, but it hasn't). Unless capital is in danger or has a better place to go, then why would it give up on prime real estate?
What's going on right now makes me think of the French revolution. Rich people are making similar mistakes as King Louie and Marie Antoinette. I'm 70, so I don't expect to be around to see how this plays out. Good luck everyone.
I have friends who are over 100. So enjoy!!! Lots to look forward to. People will need your wisdom.
I am 76...are you trying to give me a boost ?
I'm 50 and dual-citizen French/American. I've been thinking this for a while now!! The separation between rich & poor is expanding. I may see how it plays out within my lifetime.
@@Michael_RareZebra ...and that is what triggered Fascism in Germany in the 1930s... Fasten your seat belt for November...
I’ve been saying this is the lead up to the next French Revolution and heads will roll
After listening to Scott it makes me want to sell everything and move to California. It sounds like paradise. High home prices, high taxes, loads of homeless people, yep paradise for sure.
Lots of crime, too. Don't forget that!
And absolutely no right to defend yourself from the homeless and crime
Yes, Norm475, move there as soon as you can...hopefully you'll be just in time to be taxed to raise money for "reparations." I'm sure you look forward to contributing (even if involuntarily) to such a worthy cause so move quickly before that opportunity is gone. ;-) -- BR
@@DIVISIONINCISION Probably not too much in Santa Barbara. For now.
Great governor too!
I know a family that lives in Santa Barbara. It started from grandparents buying a property with good size land. The only child took over the house, expanded it. Grandkids and great grandkids are also living in the house. If they sell, they can get a lot of money but they can never buy the same house in the similar area.
I lived in LA for 10 years and SF area for 11 years and there is nothing more wonderful than CA weather, I miss it so much. I left in 2016 because it’s becoming 3rd world due to the idiot politicians who have created an enormous wealth gap; it’s basically the very wealthy and an increasingly large population of poor. Complete lawlessness. Sold my home in 2016 in a lovely coastal community because there was a freaking shooting a block away. Why would you pay an arm and a leg to live in a state where your children cannot even ride bikes safely in a “nice” neighborhood? Taxes are outrageous and it’s not friendly to businesses so they have also left to states where they can actually succeed and turn a profit. This is why people are leaving in droves!!
It's not the politicians who are idiots 😅 it's the people of California who keep voting the same political party that has transformed California into a Venezuela
If you live in a place due to weather, even if you are living in a box or sharing a place with roommates, you've already lost me. I grew up in Cali. I would never move back there. I like owning a nice house in the suburbs, two cars, comfortable lifestyle. I would have to be a Millionaire to live my lifestyle in California. Seriously.
@@hotelcalifornia715 Bingo. It's the people. Tons and tons of liberals. They're OK with riots, looting and crime. They are voting for it.
Multimillionaire because millionaire is nowhere near enough today! @@DIVISIONINCISION
thanks for sharing my story - Cali certainly had better weather than Alaska or Nevada BUT it's friggin BORING. I live in Georgia now and actually like that it rains in the summer and gets kinda cold in the winter. The 4 seasons are good for a sense of the passage of time.
I live in LA and have been here most of my adult life. Crime, smog, homelessness, traffic, high prices, the cost of owning a business, property taxes and gentrification are all real issues. The time to invest out here was 2004- 2008. Now you would be lucky to find 1 decent home under a million dollars in Compton. Point being stay away from this place unless you have deep pockets or you will financially struggle. And for those of you who do choose to stay here do your self a favor and buy some steel to protect yourself and loved ones from these thugs who have no respect for themselves or for your property. I am telling you all that this place has gotten a lot worse!!!!
LA can still be great for interesting high-paying jobs in technologies. I like LA. Good climate too. Don't own there, but rent a bedroom and bathroom from a homeowner and own your base house elsewhere. Don't drive a car in LA.
I always find the crime discussion interesting. For example if I was to compare per capita crime in LA (violent crime is 8.38 per thousand, property crime is 27.53) against say Tulsa Oklahoma (violent crime is 9.25 per thousand, property crime is 42.63) or say Lubbock Tx (violent crime is 10.7 per thousand, property crime is 42.52) or Jacksonville, Florida (violent crime is 12.43 per thousand, property crime is 51.56) it compares very favorably. (Note the last 3 are all medium sized Republican towns in states that have been run by Republicans for decades).
Santa Barbara used to be an affordable college town. I used to drive up there with my dog every few weeks and stay at a beachfront hotel for $99 a night and walk the town and go up to the beautiful dog park on the coastal bluffs overlooking the ocean in the Michael Douglas preserve, walk the town, and eat at the great restaurants. It was affordable, dog friendly, safe, beautiful, and fun. This was 20 years ago. Now...
Cash is king. All the people that got rich in 2008 had cash and bought the repossessed properties for a dime on a dollar.
With the rents going up $500/month, people's incomes did not go up $18K/year.
Here too. I bought my first house by myself in 1986. I'll never forget the look on my Father's face. I never asked for any money. But, he upgraded my electric! (his trade). ~ 🦋
Me too Kid I was 21..😁😁😁
1986 2024. Apples and oranges
Scott is right... Once you buy a house, you're always at Home Depot and Lowe's...
So true. You could say that a homeowner lives at these stores. 😂
@@KikoValleyManTax deductible
Not in SB, if you buy a house in SB you have at least $100 million net worth and you have your own handyman that you hire or you are not going to make it long-term there. Too expensive.
@KikoValleyMan Yes, I might as well grab a blue or orange apron and hit the time clock...🤣 😂😅
@@Jack-pd4pscan you deduct your property tax? That’s what I thought 😂
LOL! As a former Santa Barbarian, housing prices have been extraordinary for decades. Middle class workers are commuters from Ventura or Northern Santa Barbara County or UCSB students. As the saying goes, "Santa Barbara is for the newly wed and nearly dead." It wasn't like this in the 1970s. Sad.
If you weren't in California around in the 60s, 70s, you missed the DREAM .. Only High Rollers Living the DREAM... NOW..... 🍷
South East Florida is the same
But thats the idea!
What I think Scott doesn't talk about is the pride of home ownership. I had a home for over 20 years, then we sold high during the pandemic and rent while the market comes down. We have rented now for over 2 years and can't wait to own again. You can't make a rental your own and it always feels like it is someone else's house.
@bswal1 that’s what I did. Sold my beautiful house in late summer 2021 and walked away with $480k after all was payed off. I currently live with my in laws that payed off their nice and ample home years ago. However, I reallllllyyyyy miss my home. Everything I see it so ugly and beat down. The money wasn’t worth all the change 😔
Pride of ownership is a oxymoron. It's a common term used be real estate agent snakes to get you to buy. It's meaningless dribble. A home is what you make if it. It's sticks n stones and is basically meaningless
@@capt.swarvaski1545 sometimes it is. count your blessings.
It's because it is somebody else's home
@@johnjaco5544 Exactly!
I know someone whose parents bought a house in Santa Barbara in 1972 for $54K. He inherited it with no mortgage. It is currently valued at $2.35M.
Thats what they say its worth now. Give another year, possibly 2 and it wont be worth anything. Am seeing even Working Homeless everywhere. No longer affordable housing. Affordable Anything! By Design.
Here’s something most people don’t know: when a place like Santa Barbara has its own bankruptcy court then that should tell everyone a red flag about that area!
I sure as hell didn’t know that. And yes, that is definitely a 🚩 ! Thanks for sharing. ✨
SB bankruptcy court covers Santa Maria thru. Carpinteria, tri-county.
The local daily Santa Barbara newspaper just declared bankruptcy and the funniest thing is that the newspapers owner actually owns the building rented to the bankruptcy court. True 😂
@@daynajoeHardly, it's a regional Federal bankruptcy Court, which are present in every state.
He said something along the lines of, 'that it is better to rent and live in paradise, then own and live in a bad place'. Well you never know when your gonna go, so better to live well.
so true
The houses are a lot bigger than they were on 1950. Most cars are new with all the options. People take a lot more vacations. Wages are down but living high on the hog has conciquences
There are a lot of people who bought homes in the 50’s and 60’s on the west coast and just held on to them. They then pass them on to their children.
My Father in-law. First generation immigrant, German woodworker. Built three houses from scratch, rented houses and held some of them for literally 60 years. Squeezed every penny. Still drives old beat up cars. He is 84 now. All on the coast. You could not lose if you can keep a coastal home long term.
You could buy a brand new home in Huntington Beach for about 30k in the 70’s. Now it is worth 1.2 million. Crazy. My father in-law said you could buy in Palos Verdes for around 50k when they were built. They are now worth multiple millions.
My wife pointed out there are also a huge amount of international buyers. Safe place for them to park their assets.
I don't envy anyone who mooched off mommy, daddy or any other family member. My parents made an average living and worked hard. I remember when I was 21 (30 years ago), and bought my first house. My parents were so proud how I managed my money and worked hard to save at such a young age. They wanted to give me $8000 towards the down payment and I refused it. They were like, why? I told them to put that money towards their retirement. My dad was self employed. They did surprise me with a nice refrigerator, though🤣
You a good kid
@@certifiedfinest5065 Thank you! To me, pride means a lot.
30 years ago.
@@LilyGazou Nothing has changed
If someone is giving a living heir $1M for a down payment they likely have already funded their retirement. Back in the 90’s a friend’s dad bought a used Prevost for like $250k. He was meeting some buddies who all had big coaches. My friend said to her dad about his buddies “I can think of a lot of things to buy with $250-$300k”. Her dad replied “ they already have all those things”.
Besides the taxes and upkeep of a home, Fuel, groceries, clothing, entertainment, insurance, Auto upkeep and insurance, medical expenses, etc. Its so much more expensive for everything in CA.
All the "joys" of home ownership.
99 percent of people on Internet complaining about high rent or food and gas are from Commifornia or some other fkn blue area. You should have moved 20 years ago, Commifornia has always sucked.
The weather looks great & when I was there visiting it was almost perfect everyday. If you can avoid the natural disasters ( wild fires / mudslides / floods / droughts / Tsunamis ) then it makes sense. Even the Homeless working class there living in their vehicles at organized encampments don't want to leave.
Tsunamis lol true tho. I’d rather live modestly here than rich in New Mexico or Georgia 👍
It's cool when Mom and Pap have the money and you can take Advantage of it but thats not everyones case. Sometimes you just have to start from the bottom save some money up and be as much as possible responsible with your financess.
The climate in california is so conducive to enjoying the outdoors year round.
Indeed!!!!!!!👍☺️
It must be nice and sweet, for example, to be in a profession and condone or take advantage of a madness or craze which is fundamentally unhealthy, and then get out of that profession and THEN preach to the world how that thing which made one money was unhealthy/mad/crazy....such sweetness.
So when I’m broke and homeless, I’m headed to Santa Barbara.
Lots of homeless people travel to Cali. It’s warm and doesn’t rain. Cops do mess with homeless people. They still have rules. For example you can’t be in certain areas and you can’t be laying down after 6am to ensure your still alive.
Live in a minivan. Stealth camping. Spend winters in Slab city.
I lived in Santa Barbara from 1997 through 2005. I LOVED it, but had to move down to LA because it became too expensive to live there anymore.
My parents bought a home in Huntington Beach in a very average family neighborhood in ‘72 for $37k. That house is 3 million dollars right now! My home in Tahoe City I bought for 180k in the early 80s. $5 million today! It sucks ti be young today. No way they can make it without generational wealth behind them.
The class divide is getting larger and more extreme. Any family making less then 200k is struggling right now. We make less than that and by the end of the month we are broke. We got lucky and bought a home in 2015 right before prices exploded. Are home has doubled in value since then and our income has not gone up at ALL. No way we could afford our home today. It would cost 2x as much and the interest rate is almost 3X as much. Our payment would probably be 3X as much as it is today. I am trying to get my wife to sell it and buy land with cash and live in a trailer we park on it.
Good idea.
Very good idea! Pretty soon there will be whole cities of empty houses worth 400K - 10Mill, and not a buyer around!
“If the American people allow private banks to control the issue of money, first by inflation, and then by deflation, the banks and corporations that grow up around them will deprive the people of their property until their children will wake up homeless on the continent their fathers conquered.” - Thomas Jefferson.
Someone Finally sees for miles on a clear day! We sat back. Waiting for better times to come back. The obedient children we r. Told people even as a young teen that some day we would regret having houses half made of windows!
A friend of ours inherited parents house in Monticito. Just a basic Spanish style above the shopping district. Sold for 2+, the downside is 4 other siblings, so no way could be kept. Her dad was a teacher, mom was homemaker. Times have changed.
STARTING to change. This is just the transition reving up!
I remember the good old days. Sears,circuit city,comp usa.
😂😂I 'member those!
Radio Shack!😮
Excellent interview. In the early 80s I had a girlfriend at UCSB and I said Santa Barbara was the future of CA, Rich and Poor. I have no resentment towards either of them, but where is the middle class? As Scott said, it doesn't really exist.
I wish I could think like this: better to rent then own. But I hate being controlled by the whim of my landlord every year (keeps raising my rent and not fixing anything) He basically gave me the nudge to buy. My rent was essentially the cost of my mortgage interest, so I just bought. The house was a flip, new: kitchen, roof, heater, furnace, paint, bathrooms, light fixtures….probably $15sq/ft more than pre-pandemic levels. Only part that sickens me is having to do 30yr loan (dang interest rate 6.5%). I’ll be paying almost what the 20year mortgage amt would be though.
You did the right thing. If you want to live elsewhere, rent the house out and go rent somewhere else. But you absolutely need to own at least one house, so when housing inflation booms again you move up right with it and still keep a roof over your head.
If mortgage is paid off before retiring age you did right thing. You don't want to be 65 and still working your ass off to pay fkn rent OR mortgage.
Save $100 a week and at the end of the year make a principal only payment of $5200.00, keep doing.. keep prepaying it
@@Eyeris625 I’m just adding more to each monthly payment which will be applied to principle. But I’m open to other methods.
Mr. Walters should say the following: If I WERE to buy more housing, NOT was. It is subjunctive. Michael should say the following: my mortgage payment is lower than if I WERE to rent, NOT was. It is subjunctive.
Education is lacking.
"Rent in Paradise vs Own in Hell" - So true
I am curious they never mention that rent always goes up. But 30 year fixed is steady.
Bingo Rent goes up yearly.
what about taxes and insurance? my apt is steady on those two and rent is low when compared to a mortgage.
When you graduate college you say to yourself I want to rent forever. That’s my life goal. That’s the life.
We have come to the same conclusion. We can rent out house out for more than our mortgage. We plan to keep the house and rent elsewhere
In LA studio city you will have to pay over 1.5 million dollars for a house. If you step outside you might find needles and homeless man sleeping front of your yard.
"Paradise on Earth".
It’s great hearing from people who live in the area, and speak the truth of what really is going on with everyday people.
Santa Barbara has many trust fund babies. I know 2 whom live there.
East Hampton also. I know several.
I’ve lived on both coasts. Your Hampton comparison is spot on
Greetings from Nova Scotia, Canada. Here in the east coast we are dealing with extreme price increases with homes that is widespread throughout this country. I foresee some ugly times ahead for all of us. Paid for my house in cash recently as i too worry about holding the majority of my assets in cash, a severe crash will bring on something none of us could even dream would happen. Bless all my brothers and sisters.
I’ve lived in Northern California for over 40, it’s not as it use to be , I love my area in California hate the politics!!!!! 🇺🇸there a lot more republicans in CAL then you think 🇺🇸( I couldn’t buy my beautiful home I have now ! Thank GOD it’s paid for )
NorCal is definitely the better option.
I was born and raised in Santa Barbara and unless you have not enjoyed everything that S. B. offers you will never understand why I would love to live there again. One of the most coveted cities in the Country. Thank you Michael and Scott. Blessings, Carlos ✝️🙏❤️😊🇺🇸
Just be grateful you got to live there. You got to experience more than most ever will.
What’s so great about Santa Barbara?
@@AJourneyOfYourSoul What’s so great about Santa Barbara?
@@AJourneyOfYourSoul Thank you and yes I feel so blessed that I was able to call it home for about 21 years 😊👍
@@certifiedfinest5065 EVERYTHING ✝️🙏❤️😊🇺🇸
And here's my rant..in addition to the leaf blowers at all hours, workers constantly pounding, dog shit, people are now in the middle of the night unloading furniture, mattresses, etc, and car seats by my garage at 1 am. City has to be hounded to pick this crap up. Society has gone to hell.
Today I got aggressively driven at for about 15 minutes straight for literally no reason. I wasn't in a car but a guy was aggressively driving his car at me in a really weird way for literally 15 minutes straight
@@TrevorHamberger Been noticing that too for the last 2-3 yrs. People changing. Meaner. LOTS road rage. Random insanity. Assaults, etc. Every age. Any or no reason. Scary!
@@dead2802 yep. Same here. I've also noticed that a lot of people when you look into their eyes they look like their brain is short circuiting. Almost as if they have absolutely no idea what's going on
I mentioned this on your site before....We rented for about a 3-4 year span, x 2 we had to leave because the house was being sold; x1 because the landlord was and ass (got mad because I planted flowers), lastly I bought the condo from the owner who had inherited . Never want to give up my freedom.
He was great; very good interpretation of what's up in The Golden State. Miss it terribly, born & raised in NorCal. But it's not the same treasure it was 25-30 years ago, sadly.
Now all I need is old money. Lol
I'm leaving CA too. This was once a great place to live, but is circling the drain with the taxes, homelessness, crime, and high cost of living. I can't wait to get out of here and live in a first-world country again.
Michael, to answer your question of "Who are these people"' Many are Chinese nationals. For several years they have been scooping up premium and not so premium homes in SoCal. They enter deals with large amounts of cash. The sellers cannot refuse. Many times the Chinese offer above asking price. The demographics have changed drastically because of this. For example, check out the ethnic makeup of cities like Cerritos, Palos Verses and Rolling Hills. The Chinese have deep pockets and are buying all the good homes, leaving native Californians out in the cold.
Ban non-citizens from buying property like they did in Canada.
Not really, every billionaire and mega millionaire and A and B and C list celeb and Megan and Harry live in Santa Barbara or visit often. And then you have some people who inherited their house but unless they are wealthy they can't keep it due to property taxes.
I think there are a lot of foreign (wealthy) buyers that just want to live in SoCal, period. You get the benefits of the U.S. with a Mediterranean climate. I lived in San Diego for 5 years and saw this a lot.
chinese
To me it should be Americans only.u right I see alot of different race buying expensive house.doesnt make sense.
@@shanenice5380 If you knew the agendas it would make perfect sense! 😣😰
I've never seen this side of Scott. Good to see you guys out there. I lived in Santa Barbara County for my entire life and just moved / work in San Luis Obispo County. It is extremely unaffordable here. The working class in Santa Barbara are pretty much slave workers at this point serving very wealthy people. They will never be able to afford a better quality of life. I think they should leave and let the service industry die there. The money doesn't trickle down. I don't know how low income earners survive there.
How is Scott different on his YT channel?
@@noreenn6976 I liked to see him out in the community and walking around. It seemed more natural and saw a more personal side of him.
@@victorandrade7940 👍
Low-income earners live in Oxnard, Santa Maria, or Lompoc with a group of people and commute to Santa Barbara. They should just leave expensive areas and move to somewhere cheaper in the US. You can get a low-paying job anywhere else.
I have essentially been out-priced in this market. Had a great home in the mountains at 3.7%. Lost everything in a divorce in 2020. Now I cannot get back on my feet because investment firms and people out of state buying up all the homes in my state, driving up the prices. It's more than disheartening after everything I have been through the last 3 years.
I just saw a job for a Santa Barbara cottage hospital based cardiologist making 600k probably up to 800k and that’s with relocation of 50k and 300k loan to buy a house They still can’t buy much in Santa Barbara or Montecito
I lived in Ventura when I entered 5he Army. That was 1968. We often went to Santa Barbara. It was a beautiful area and although populated but not crowded. Certainly no off shore drilling rigs. At that time I never thought of things as unaffordable. Seems things really changed in the early 70s.
My brother went to UCSB, he took me thru a 20 min hidden hike area which was connected to a beautiful beach were only the locals know about and there were miles n mile of beach that looked like heaven with not a lot people maybe 10 walking around.
It's all beaches up and down, lol... best small city in the world.
More mesa
Always wanted to enjoy the ocean. Enjoy! And make memories! 😊😍
Unpopular remark, but a fact. A lot are rich foreigners, like Chinese moving their money out of China. Where do you think all the dollars from outsourcing our manufacturing end up?
Moved to Florida in 1984. Rent for our 1st apartment was $200!. Bought our 1st house in 1992, pre-owned 3/2 1100 sq ft for $69,000. Sold it 2 years later and upgraded to a new construction 4/3 , 2100 square feet for $129,000. Lived there 19 years ! Sold it in 2013 for $250,000 and downsized to a town house 3/2 1700 square feet for $156,000. Almost paid off.❤
Santa Barbara is mostly old money. If you have been fortunate enough to inherited money or real estate decades ago in there you are in luck, but a newcomer forget about it unless you are making ton of money.
Also their property taxes are peanuts compared to what a new buyer would pay. Why in some expensive neighborhoods one sees shabby homes, old owners with low property taxes. If the sold they would have to leave the area.
I'm in the Seattle area. Single, no kids, and make a bit over $200k. Unless I wanna get into a 2bd condo, I can't afford houses unless I go an hour outside. I technically could, as banks are pushing for ridiculous DTIs, but I'd be dumping at least half of my gross pay into housing. My boss makes even more but they are even renting rn. We're all just watching the rates go up and up and it's been out of reach for awhile now. Either the rates get cut in half, or prices have to drop more significantly for houses to be affordable. Nobody wants to sell because they'd be getting into sky high rates at their new place. And nobody wants to buy when things are still in flux. I'm waiting at least until winter of 2024 to see what happens but for the foreseeable future, I'm not in the market. Luckily my rent is only $1,500 for a 1bd/1ba apt. Saving a ton of cash.
Michael is asking some really good questions. I wonder all of the time, not just in Cali, but even in my state how people can afford some of those homes. Living up on a hill or a mountain makes some these prices quadruple. And I always wonder who those people are that buy those homes. But I think they hit nail on the head when they talk about older money. Many people that bought some of these homes that are 3 or 4 million bought them when they were 300k back in the 70s. So they just hand it down to their kids. That's probably how so many people that don't make a lot can live in these homes because they are coming down from their parents.
"most people don't want to go to the homeless shelter because they can't drink..." Aren't drugs the much more common reason these days?
Kensington & Allegheny in Philly!!!! 😱😱😱😵💫🥹😢
This guy short sold a home. And now he’s giving advice.
HaHa sold one 11/2006 $285K Cash IL..🤑🤑🤑
Do you suppose now that he is a big shot he is paying the bank back all of the money they lost on his short sale? I would never hire this guy...seems way too slick!
He knows!
Love Scott’s podcast. And he’s right about buying a home as a tangible investment opposed to keeping it in a bank. My wife and I combine for great income(s) which would allow us an amazing lifestyle for half the cost outside of California. We refuse to buy anything in LA and pay more than 6k in mortgage/insurance. Meanwhile, we’re looking to invest in multi-family properties elsewhere.
I closed last November for cash. The timing was perfect. I got that money out of the bank and it’s holding its value in this market. I will possibly purchase a rental property in the same County, if the time is right. I fled NY.
@@NuNugirlGood for you! Smart moves all around.
FINALLY someone equally as honest as you! the LA lady was clearly withholding info, but wow....this gentleman speaks the truth and is not afraid of it. So refreshing!!!
I’m from SoCal, San Diego area. It’s my home. It took a lot from me to decide to move out to Vegas. Yes it’s always been more expensive to live here ( call it the snob tax). But I really needed a break from being taxed to death. Newson & politicians here (remember, Cali is a 1-part state) have gone out of control, adding taxes on taxes, which is illegal, but they use euphemisms like “No it’s not added tax, it’s a “surcharge”, a “temporary fee” to cover X or Y”. So I didn’t go too far, but I needed that financial breather to save $ & have a life. I miss home, and it’s criminal that Cali natives like me had no other choice than leave our home bc these politicians have gone mental & destroying our state. And no, I didn’t vote for any of these fools. Gonna go back in 3-5 years & buy smthg small I can pass on free & clear to my kids so they can live where they were born, bc they’re not likely to afford to buy there.
I see these insane home prices and ask myself that all the time. Who is actually paying half million or more for these decades old homes? Nobody can afford that crap and half these places need expensive work done like roof, replace hvac, or old plumbing that needs work done. What a ripoff.
Hedge funds are buying most of them.
Foreign investors.
Any foreigner with $450,000 to invest gets US citizenship. It’s an outrageously stupid law.
CA is becoming a retirement community for the 60 year old multimillionaires and now there's no one at the stores or the bars or the restaurants because young people can't afford to be there!
We are already in a depression Scott. Sorry to burst your bubble. The recession was last year.
Yep.
Everything has crashed and they are hanging on by threads and lying to people for as long as they can.
I used to live in that area in early 2000's. Similar to what Scott said, I felt like I was 'playing' all the time. Riding motorcycles, flying airplanes and gliders in Santa Ynez, sailing down there by the SB harbor where you were walking, skydiving in Lompoc, mountain biking, hiking... It is a great area. I was a home inspector for a brief period also. It was too physical for me as a small female though, so that didn't pan out. I wonder if I crossed paths with Scott.
Wow, I've learned more in the one week watching Michael's post than years of being a homeowner. Scott was a great addition today. And earned a new subscriber. Now, if I could only get my wife to listen to their advice and direction. Appreciate you gentlemen. Keep em' coming.
Santa Barbara is a choice market, the price will never drop to pennies on the dollar
You never know now do ya…,
@@brianlord1232if it ever went to pennies on the dollar, life would be so bad, so destroyed, there would be only a handful of people left and they would buy up the whole city.
It did in 2008
Good segment. I am glad you met up with him.
US population 1950 151,325,798 today it is 339,996,563. More than double. Why isn't the media talking about this? Doesn't this mean anything? Supply and demand...
Ty, Michael 4 meeting up with Scott! I'm glad 2 see views from all angles and helpful advice all around! ✌️ *
Looking to buy in Florida but prices in some communities have almost doubled in last 3 yrs coupled with rising HOA and real estate taxes and insurance issues - renting instead might be best option Thks Mike!
Sorry renting is throwing away your money ! Your making your landlords rich!
But you may be able to live in a better climate and higher quality of living.
No equity!😮
I live in Santa Barbara CA. I bought in 1994 2.795.M. Beach Shores property. We have homeless in once called backyard view of beach. We have a serious matter in this community. Yes. The city has shelters, free meals, healthcare at our local hospital and I just don't know all they get. But do they set up tents on beach? Yes. I live here and see it daily. It's to the point my wife and I don't walk the beach. My security camera is always on and we took CCW permit in on County. Welcome to California.!!
Sounds like prison..
Walter and Michael. This gotta be a classic! Great to see you guys together. California looks very nice
Foreign buyers. Every wealthy person from all over the world wants a house (or multiple houses) in Southern California. They are typically cash buyers. Then you have Wall Street buying up every single family home and holding it as a rental which also drives up prices.
Love your guest have seen him many a time he tells it like it is. CA native here and yes the policies are out of hand with all these idiots that have been voted in, most major resort beach cities, LA AND SF are screwed w. homeless and addicts running amuck. Most of my CA relatives have moved to AZ and NV and got the hell out of CA
Hahaha lived there too. Not exactly paradise. Both those places are hellish
Can so many people really have inheritances though? The amount of money going in the real estate market is stunning!
Correct!
CAREYS house assesed for 6 million, He Wants 26 million, 😂😂😅😅😂😂😅😅 what a Comedian !!!!
Cali has been a 2 income state for a long time. 2 incomes is common in apartments when rent was $800. You need to have experience to start your career. I had to volunteer to become a Security Guard in 2007 to get the experience to become a paid security guard. At one point you needed to have CDLs to be a metermaid. Young people should have been left Cali a long time ago. California has been a tough state to live in financially.
God bless you two honorable brothers!!!!Thank you’ll for y’all service and contribution.
Awesome work and content, Michael! Keep it up!
Many people are living on those boats in your background these days. Cheaper to pay doc fees than mobile home park or rent hard surface premises.
True.i never thought of that before
Congress has been making it hard on the working class and middle class for years now. 50-60 years ago you didn't need mother and father to work. The mother could stay home and raise the children. Congress wanted more money so they put the mother to work for the tax dollar.
Nah, mom went to work because she wanted to be independent and couples got greedy. Once competition got to a certain level, everyone else had no choice but to compete.
The work force doubled making the wage cut in half essentially
I like that saying in that it's important to own but you don't have to live there. In my area, there is very little housing inventory and not a lot of apartments available. There has been a lot of consolidation of rentals among a few large players and it results in severe pricing power with some landlords willing to leave apartments empty for a while to maintain rent prices. So the pace of annual rental increases is what puts so much pressure on housing prices. Regarding who buys this stuff: I used to work in a building where most employees had at least a masters degree. The building was full of engineers and most employees were millionaires. Some 10 millionaires and one 100 millionaire. The stock price went up by ten times over a period of 25 years and the CEO owns at least one island and probably dozens if not hundreds of homes. People look to move to Massachusetts for the schools, and healthcare. Young couples with kids or planning on kids want to buy a place with great schools and they either earn enough, have stock options or family money. And then they look at the various areas in the state to fit their budget. If they have one. Is it a bubble? I don't know. But ordinary people are screaming about rent prices. On Malls: our main Mall has Target, Macy's, Dicks and Apple as the main anchors and it's doing fine - mainly because of a sales tax differential with a neighboring state. Costco is near that mall and Costco is crazy crowded, both in the parking lot and in the stores. We do not have a lot of homelessness but it tends to be concentrated in the cities. We only have a few small cities in the state and the state does not provide a lot of social services so it's not an attractive destination. It gets really cold during the winter (it's going to be 21 degrees this morning here and it was -20 here about 6 years ago). We get a foot or two of snow from time to time also. I've driven around the country and the amount of wealth in this country is unreal. I think that you can find wealthy areas in any state and you realize that it costs a lot of money to buy or build and also to maintain the properties.
Malibu is wealthier! It all entertainment! Paradise cove on the beach the trailers there sell for 3 to 4 million
Great video. I live in Cali and its working more living less for the averagr family. The amount of money some people have is shocking in California. A million dollar plus home is like a normal thing. If you dont make 400k plus you will not live a decent life. You will feel poor. I need to move to the midwest for sure.
Great video Michael about the time you were filming I was across the harbor having lunch on the wharf outside at SB Shellfish Company. Nice to see Scott out with you for a walk! I love your walk and talk format. Welcome to Carpinteria and SB.
I lived in Ventura, CA for about 20 years and loved being close to the beach. I ended up moving to Las Vegas in 2001 because it was cheaper for me to move to Las Vegas rather than my soon to be wife at the time to move from Las Vegas to Ventura.
Wow! What a breath of fresh air! I loved this interviewee and the interviewer! Great job! So informative & honest for a change.
I remember back in college during GFC peoples parents were buying them homes so they could finish up school without breaking the bank. Rent prices went nuts and there was no where affordable to live. Then home prices skyrocketed and made the inventory shortage even worse (4 months of supply at the time) Home prices cratered of course but you STILL couldn’t find anything for rent bc most of the homes were in foreclosure or getting rented by previous homeowners. Interest rates were super high and finding a stable job making even 40-50k was a long shot- everyone was working restaurant jobs or commission jobs and no one was buying anything. It was a disaster and this type of market is VERY reminiscent if not even worse.
They create "artificial scarcity," to keep the 'rigged' game, afloat... by either not 'filing' NODs/ Lis Pendens... or having Wall Street firms (and foreign investors) buying- up inventory (the notes, and mortgage- backed securities) at "retail prices." And making loans with 1-3% down, to suckers... before every central bank created: 'correction.' Then the market "crashes..." and many with under 30- 60 % equity either cannot "weather the storm," or give up waiting for a market rebound. (And/ or realize that it will take 10- 30 plus years, just to "break even!")
There IS, however a smarter alternative (i.e. to bank loans, tying up all your cash, or risking your credit) that works better is EVERY "buyer's market" scenario... Lease, with the "option," to purchase... Or: pursue: Seller financing. Trying to 'resell' on the NAR (which eats a LOT... of "equity") and/ or relying on "refinancing" (good luck...) or doing an "all cash" closing in this market (unless discounting by 15- 30% plus) is foolish. It's already now a "sinking ship" for the most part, in many areas. (Become "the bank," and "seller finance?" Or: speculate, using an "option (vs. the obligation") to purchase! (On say 10 properties, vs. 1- 2...)
Love the discussion. Good to see you guys are networking.