Exploring Southern California

I love Luguna Beach, Newport Beach and Malibu. Palm springs is different then all the others though, isolated and no water, desert all around, not my idea of Southern California.

We're leaving Palm Springs now and that's the impression we get of it. It's nice. I understand why people like it. To us, though, it seems like a place to visit rather than live. I really like the downtown area but we're just not feeling it as a place to call home.

In your last post you mentioned Carlsbad. I thought "Man, how does he know the best place to live in SoCal". Also love Temecula. Since you're visiting Yorba Linda, adjacent to YL is a town called Brea. Lots of parks, small/vibrant downtown, and best of all we'd be neighbors. Sounds weird for Orange County, but there's 62 miles of mountain trails nearby.

Yorba Linda and its surrounding areas are fascinating on paper. I have no idea what to expect. The community has almost double the median household income of the State of California at $111,379, almost double the median home value of the State of California at $689,000, yet a much younger median age of 41.7 years versus 45.6 years, which is a ratio inversion you don't see often. Typically, income and home values are correlated with older age as people have spent a lifetime accumulating resources. The uniqueness of the figures has me curious ...

The real estate in California is unlike anything I've ever seen price wise! I am a real estate investor in San Antonio, TX and the people who do what I do in CA are buying properties at a cost that wouldn't make any sense to even touch here in SA. But the inflation there makes sense for the investors in CA...

The reason CA real estate doesn't make sense to you, and most investors from other states, is that the cash flow model doesn't work like you are accustomed to. Usually cash flow is difficult to obtain; you usually have to put 20-30%, and your return won't be great, maybe 4-7%. But, the real money is ALWAYS made here on appreciation. That, and the fixed property taxes (thanks prop 13!) as well as depreciation write offs on investments are substantial, keeping the fed tax returns in check.

And if you really want to talk crazy, try investing in San Francisco! It's truly a counter intuitive market here. Very quirky. Yet I have made incredible returns here, precisely because of all the market distortions that exist here. First there is rent control. Next it's hard to build here- planning and building departments so bureaucratic they would make Stalin proud. Then the city government places ordinances against development, against condo conversions, against tech developments, against anything any same city in this country would love to have. And don't forget the NIMBY's, they are here in droves to protest any development...lest it's affordable housing...in someone else's neighborhood!

The upshot is that there are severe restrictions, which all help insure that your property values go up, up and up. The 08-09 recession has already been forgotten, as prices are past last decades highs. The last few outlying SF neighborhoods are getting gentrified, as anything in established neighborhoods is north of $1000 per square foot. And in spite of all this, there are multiple offers left and right. It's crazy, but I love it!

Check out Cold Springs Tavern off the 154 San Marcos Pass for bbq sandwiches and live music (On weekends). It's near SB. If you're in Ojai, check out the Knead Bakery, or the trattoria for the best pumpkin ravioli. If you're in Carpinteria, visit Corktree Cellar & Food for delicious lobster mac & cheese & delightful flat breads.

On Los Angeles Avenue/118 there is a fruit stand that sells locally grown fruits and veggies. They produce locally made licorice. Do purchase a cherimoya or two; they're nature's ice cream.

In Newport Beach be sure to eat poolside by the Coliseum at Pelican Hill. I highly recommend the scallops.

Thanks for the suggestions!

When you decide to check out Florida, might I recommend Destin or Santa Rosa Beach. I moved down here about 8 years ago, and I love the laid back atmosphere. My housing dollars went much further than they would have in SoCal. You already mentioned the lack of state income tax, the water is clear and warm enough to enjoy, and you can still get your in state DIS ticket pricing.

I've never been to either of those places; thanks for letting me know about them, I'll add them to the list =)

Nice choices all around. For a few other suggestions, have you considered Pasadena or La Canada Flintridge? There are some very nice areas around the Rose Bowl (I especially like the area near the court of appeals overlooking the arroyo), and in the hills south of Foothill in La Canada. I would also check out the Palos Verdes area (though I'm not as familiar with this area, it is one of the nice areas you haven't mentioned yet).

These are good recommendations that I'm also constantly looking at. I really like Palos Verdes Estates.

I'd never heard of La Canada Flintridge. We might have a chance to stop by today. Thank you! It's on the list now. Pasadena, I think we're visiting either today or tomorrow but I'm not sure.

Be careful... it's not Canada like the country.

It's La Cañada Flintridge

I've spent around 4-5 months in Rancho Santa Fe over the last many years. I have in-laws living there. I think it's a good fit for you. However, one thing to know is that a lot of people there are old and some old ladies might gossip about you (but who cares).

I recommend spending a night at The Inn.

I'm sure you'll find out if you don't already know, but just in case...

Art Jury

Make sure you understand what it means and that you're okay living with it.

http://www.rsfassociation.org/pages/art.html

I wish my wife and I could afford to live in California. It is just too expensive for young people just starting out, unless you are making a massive salary. Maybe after we're financially independent as well.

If you don't mind me asking, what states are you looking at?

The top ranking contenders are:

1. California for the weather, certain legal advantages, and the higher affluence.
2. Texas for the total lack of income tax and fantastic regulatory environment for business.
3. Florida for the total lack of income tax and tropical weather. To some extent, though, the lack of income tax is an illusion as the property taxes are much higher as are the utility bills relative to California, especially on larger estates.
4. Princeton, New Jersey. We spent 4+ years in Mercer county and loved it. The small town, proximity to New York, Philadelphia, and Washington D.C., the high concentration of human capital, the affluence; it was a great place.

Washington state was on the list for a long time but Aaron doesn't like the lack of sunlight. To him, all of the other legal, tax, and culture benefits are offset by the ratio of non-sunny days to sunny days.

There are a few other, specific communities around the country, but that's the big list.

La-based person here

-Palos Verdes Estates ( or Rancho Palos Verdes)

- Santa Monica (incredible walk score)
- Holmby Hills/ Beverly Hills
- Hollywood Hills especially closer to West Hollywood. Some of the most beautiful, historical and picturesque houses ever built.
-Bel Air (if you want to be further off. Personally, I find the isolation and driving excessive)

I have a ton of other niche spots , but for 1st timers in LA those are the broad appeal areas for well-off individuals.

Shoot me a msg if you need any help!

If we get a chance, we might check out Palos Verdes Estates today. Thanks for the suggestion!

I live right between your pictures of Torrey Pines and La Jolla. If you're back in the area I'd recommend taking 1/2 and hour to see the views from the cliffs at Torrey Pines and from the golf course there. Based on the spots you're looking at it seems that you've done your research on the area though. Feel free to send me a message if you have any questions about things to see or places to eat in the Del Mar/La Jolla area.

Thanks for the offer. I'll let you know if we have any questions. =)

Sorry if intruding, but I got the impression you might be considering adoption. If so, I wonder how you were going to handle the "genetic issue" as discussed in other posts?

We'll most likely go the genetic route so the kids are our own biological children a la Matt Bomer, Ricky Martin, Neil Patrick Harris, et al., but I'd be open to adopting, too; or doing both. It's still a few years off on the timetable as we are starting the process and getting everything else arranged in life, first. (If we do go this way, as planned, California has an inherent advantage in that both our names would be on the birth certificate, influencing inheritance and a wide range of other benefits for the kids should something happen to either or both of us. The midwestern state of Illinois is also up there in this department.)

I'm guessing you're asking me about the various socioeconomic hypotheses that have been batted around in academia about the relationship between genetics and life outcomes? In such a case, environment can exert a substantial role, or at the very least, result in the person ending up toward the top or bottom of his or her overall potential; e.g., it's possible a child of mediocre intelligence raised in the best schools with loving parents will do much better in life than a brilliant child from a broken home attending poor schools. If we were to adopt, any of our kids would be highly privileged in every area of life. I'm a teacher by nature, so the amount of time invested in instilling life skills and knowledge about everything from world events to the inner workings of economics, most likely disguised as games or conversations over dinner, would be substantial. In the aggregate, whatever base potential the kid had would likely end up toward the maximum manifestation given what he or she would enjoy in life with us as parents.

Other than that? You give your kids the tools they need for a good life, invest a lot of time, energy, money, and planning into them, and hope for the best. As long as they happy, healthy, and not hurting anyone, that's all I could ask.

From the peanut gallery...
Thumbs up for California. Thumbs up for genetic route.

Thanks for the reply. My Grandma was adopted into a well-off home and I think it helped her, though things have changed since way-back-then as her Mom seems to have simply been ashamed of having a child out of wedlock and may have otherwise been healthy/normal (her real father was a baseball player for a University, and I don't know much about her mother other than she was young).

We just had a son and I'm worried about striking a balance between "given every opportunity" and "not spoiled" as I'd like our son to have a good work/challenge-tolerance yet not artificially deprive resources. My own tendencies seem to be towards laziness once I've achieved modest success, so maybe genetics will be a detriment, lol!

That's good to know ... thank you.

If you have questons about Dallas/Fort Worth, just ask! You have areas of high affluence, and are never more than 45 minutes from a major international airport. However, you won't be moving here for the weather are beauty, unless slightly hilly prairie is your thing. Also, road construction is an ongoing problem.

California is nice!

However how can you trust the public who voted for max rate to go to 10.3% to 13.3%?

The majority in charge have no respect for other people money.

Plus they tax capital gains the same rate as normal income! Its mini-france!

" including tax-free Florida."

If you plan to stay 20+ years

It pay for it self vs CA!

on that note, you have got to revisit disney's golden oak when you revisit florida for house hunting next!

Was there earlier this year, just seeing it more built out, feels right "first few areas at lest."

State-of-the-art would be an understatement for the tech inside the homes!

Thro that siri house voice recognition setup they got, the one that locks the doors and plays your music and stuff on command, is an future horror movie waiting to happen!

Dave Bowman: Open the pod bay doors, HAL.

HAL: I'm sorry, Dave. I'm afraid I can't do that.

Dave Bowman: Yes, I'd like to hear it, HAL. Sing it for me.

HAL: It's called "Daisy."

The insane part, is that every resident is now given "well with the high fees" front of line/VIP treatment all year long throughout WDW resort!

Not even freaking public VIP tours do that!

plus all walking you can do as you live inside the park = year long workout.

Kids are gonna love living there no doubt also! ...............
as far as premium price goes. I let grumpy speak about it....