California Housing - why spend $750K on a starter home?
August 4, 2013 8:05 PM Subscribe
I live in Southern California, and the housing market in my area is insane. "Starter" homes here cost between $600K-1M, and these are mostly old tract homes that have 2 bedrooms, are less than 1000 square feet, are on less than 1/6 of an acre, and need ample renovations. I'm having a hard time seeing how buying one of these at that price could ever be a good investment, or something to feel good about - even though I know this is where the market is, I can't help but think that is a huge ripoff. But people are buying, and even bidding above asking price. My question is - why does anyone think it's a good idea to spend so much to get so little? Am I just out of touch and is $750K not that much money anymore?