Back to Results
Please enter a valid email address.
Stating a discriminatory preference in an advertisement for housing is illegal. If you think this content is discriminatory or otherwise inappropriate and feel it should be removed from Zillow, please let us know by completing the information above.
We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.
I agree with you! 20x's would be crazy and would be a "train wreck" just waiting to happen. Thus, I always make sure consumers are doing things that are within their means.If you look at my example above...$400,000 down payment creates the need for only a $300,000 mortgage. This consumer makes about $100,000/yr so they are at the 3x's level. Which is very comfortable and fits within their "dream". Yes, I will be happy to help encourage someone in this situation.If they only had something more normal like a 10% down payment, then they would need a loan of $630,000. This would put them at a 6.3x's their income! A big NO, NO! Under this scenario, I would jump into the "advisor" role and make sure they understood how this wouldn't be "affordable" for them.So..... there seems to be a lot of people in Santa Barbara who have unusual resources. Therefore, the values vs. income seem to be "out of whack". It's like so many consumers that I've helped in Montecito (South of SB). They have a $3,000,000 house, a couple of million in the bank but very little income. It's just different. Doesn't mean the consumers are getting over-leveraged. It just makes the data look funny.Thanks again for your thoughts....Ken
Hi SteadyState,The European money came from a trust... so you are right. The numbers DO NOT add-up. Ha! They didn't save the money. That's why I mentioned that people in Santa Barbara have some atypical resources.I recall this one lady who had $3.0 to $4.0 million in her investment accounts. She only made something like $30,000/yr. She wanted a nice little $400,000 mortgage but I told her that she didn't qualify do to her lack of income! She told me that she would simply purchase the property all cash. I can't recall exactly but the purchase price was something like $2,000,000....there go those darn statistical numbers... right out the door!You may ask, "How did she save the money?" She didn't. Her family had a large real estate portfolio which was sold.Soooo..... where does that leave us?A) This goofy Santa Barbara market has some really weird numbers.B) Buyers - Get your pre-approval letters in place!Ken
Please enter text in the "Enter the text to display" field.
Please enter text in the "Enter URL" field.
Please enter a valid URL.
Please insert a video embed only
Zillow Advice depends on each member to keep it a safe, fun, and positive place. If you see abuse, flag it. More on our Good Neighbor Policy.