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Posted on 5/8/24 at 3:07 pm to HouseMom
quote:
Fine. Then this poster can't afford to live there or they need to find something below the median. You can't have champagne taste on a beer budget, and then flip about the high cost of living in an area. I would keel over with a house note that big.
And I'm sorry, but a $500k house is really expensive for the vast majority of people.
FWIW to everyone on here, my hometown housing prices start at 700-800k and a lot of my old neighborhood are now going for 1.5M and above.
So to me 300-500k for a house feels like a beer budget.
Posted on 5/8/24 at 3:10 pm to JohnnyKilroy
quote:
So really you can barely afford your lifestyle, not your mortgage.
What lifestyle? Our fixed monthly costs for amenities are like $400 (utilities, netflix, etc..), food is around $600 between the 2 of us. Most of our money goes to savings/investments. We don't have loans or a car payment. We don't take week long vacations. Maybe a weekend here or there but mostly stay with family when we do do that. We absolutely do not have a lifestyle problem.
Posted on 5/8/24 at 3:15 pm to KamaCausey_LSU
quote:
The consensus in this thread is that the upper limit is probably around $350k.
Helpful, but also on brand and hilarious.
Posted on 5/8/24 at 3:55 pm to jlovel7
I feel like several posters here may have a skewed idea of current home prices and trajectory of home prices. I’m not an expert by any means, but my understanding is that the median home price in many competitive markets has skyrocketed over the past couple of years, and any drop in mortgage rates is going to exacerbate the price competition. Anecdotally, this seems to be borne out by the list prices for any desirable area that I’ve glanced at online.
Those suggesting that the OP should wait for income to increase, or mortgage rates to decrease, may be effectively suggesting that OP should not be buying a home there at any point in the near future. Which begs the question, could they find similar/equivalent jobs in another market with lower housing costs?
Those suggesting that the OP should wait for income to increase, or mortgage rates to decrease, may be effectively suggesting that OP should not be buying a home there at any point in the near future. Which begs the question, could they find similar/equivalent jobs in another market with lower housing costs?
Posted on 5/8/24 at 3:58 pm to jlovel7
quote:
What lifestyle? Our fixed monthly costs for amenities are like $400 (utilities, netflix, etc..), food is around $600 between the 2 of us. Most of our money goes to savings/investments. We don't have loans or a car payment. We don't take week long vacations. Maybe a weekend here or there but mostly stay with family when we do do that. We absolutely do not have a lifestyle problem.
FWIW he wasn't directing that comment at you, he was directing it at the guy who said he feels like he can barely afford his 1.4k mortgage while making 160k
Posted on 5/8/24 at 4:56 pm to jlovel7
Wait.
You're making good money right now and able to put back a good bit each month. Likely, you'll make more money as time progresses.
Rates aren't coming down anytime soon (the earliest is likely to be September, I still think we're about to hit a shitstorm which will pop the consumer credit bubble, but that's another story). The longer you wait, the more cash you have put back. More cash + lower rates = more house and/or lower payments.
You're making good money right now and able to put back a good bit each month. Likely, you'll make more money as time progresses.
Rates aren't coming down anytime soon (the earliest is likely to be September, I still think we're about to hit a shitstorm which will pop the consumer credit bubble, but that's another story). The longer you wait, the more cash you have put back. More cash + lower rates = more house and/or lower payments.
Posted on 5/8/24 at 6:27 pm to jlovel7
If you're in Winchester Zillow has a number of new builds for around 400k w 3 beds 2 baths if you must have new.
If I were you I'd do 1 of 2 things: buy one of the 300k older home I saw there and pay it off ASAP. Then rent it and you build / buy your forever home. OR, I'd do like a previous poster said and buy the biggest chunk of land you can afford, pay that off and then build.
Sounds like you all are level headed about expenses so you have lots of flexibility. Good luck.
If I were you I'd do 1 of 2 things: buy one of the 300k older home I saw there and pay it off ASAP. Then rent it and you build / buy your forever home. OR, I'd do like a previous poster said and buy the biggest chunk of land you can afford, pay that off and then build.
Sounds like you all are level headed about expenses so you have lots of flexibility. Good luck.
Posted on 5/8/24 at 7:09 pm to Bard
The reality here is you do not need to purchase a house right now. Rent for a few years to build a larger down payment without creating cash flow issues in the immediate term.
Posted on 5/8/24 at 8:03 pm to jlovel7
A home is one of the best investments you can make, regardless of mortgage rate. If you have a steady income and can slot it into your budget, pull the trigger, you can always refinance if rates take a miraculous turn downward.
From someone who waited too long, there is no benefit in waiting for a better rate. If you’re ready, then go. It’ll only be marginally better in even 2-3 years time
From someone who waited too long, there is no benefit in waiting for a better rate. If you’re ready, then go. It’ll only be marginally better in even 2-3 years time
This post was edited on 5/8/24 at 8:50 pm
Posted on 5/8/24 at 8:16 pm to fareplay
[quote]I think buying on hopes of wage increase is very very risky. If you factor in wage increases you have to factor in unemployment and layoffs[/quote
Not if he and or his wife is in a technical profession that requires a BS, MS, or Doctorate to enter the work force. This is why I asked what is his profession. The OP indicated that they are first time home buyers, newlyweds, with no kids, making a combined income of $160K. Based on the information given in the OP I am under the assumption that they are "DINKS" in the early stages of their professional careers. In which case my advice would be to stretch their budget as much as they can AFFORD because will LIKELY see significant wage increases as their careers progress from entry level to Sr level or they get management opportunities.
From reading several of your posts over the past few weeks you are either a troll or have a terrible outlook on your economic situation. Just curious how old are you? What are you doing to improve your skill set so you can improve your situation? Quit blaming the government for your problems. Quit reading all of these "woe is me" articles about wage growth vs inflation, median income, house prices, etc. It's all noise. Improve your skill set, make yourself marketable, and take control of your destiny.
I am not trying to single you out as much trying to speak to everyone that seems to be wallowing in self pity right now about home ownership and interest rates.
Not if he and or his wife is in a technical profession that requires a BS, MS, or Doctorate to enter the work force. This is why I asked what is his profession. The OP indicated that they are first time home buyers, newlyweds, with no kids, making a combined income of $160K. Based on the information given in the OP I am under the assumption that they are "DINKS" in the early stages of their professional careers. In which case my advice would be to stretch their budget as much as they can AFFORD because will LIKELY see significant wage increases as their careers progress from entry level to Sr level or they get management opportunities.
From reading several of your posts over the past few weeks you are either a troll or have a terrible outlook on your economic situation. Just curious how old are you? What are you doing to improve your skill set so you can improve your situation? Quit blaming the government for your problems. Quit reading all of these "woe is me" articles about wage growth vs inflation, median income, house prices, etc. It's all noise. Improve your skill set, make yourself marketable, and take control of your destiny.
I am not trying to single you out as much trying to speak to everyone that seems to be wallowing in self pity right now about home ownership and interest rates.
This post was edited on 5/8/24 at 9:06 pm
Posted on 5/8/24 at 11:17 pm to CecilShortsHisPants
quote:
A home is one of the best investments you can make, regardless of mortgage rate.
This is just a bogus statement that disregards realities on life stage, personal finances, and income outlook.
quote:
If you have a steady income and can slot it into your budget,
No kidding...the problem is the OP can't afford a home in his area that effectively meets required criteria.
quote:
From someone who waited too long, there is no benefit in waiting for a better rate. If you’re ready, then go. It’ll only be marginally better in even 2-3 years time
It's not about rate shopping but you are greatly discounting the impact even 'marginally better' rates have over the life of a loan.
Posted on 5/9/24 at 12:30 am to jlovel7
quote:
FWIW to everyone on here, my hometown housing prices start at 700-800k and a lot of my old neighborhood are now going for 1.5M and above. So to me 300-500k for a house feels like a beer budget.
You do realize thats’s not normal for most folks living in the south?
Posted on 5/9/24 at 4:52 am to CecilShortsHisPants
quote:
A home is one of the best investments you can make
In general, this can be true.
Sometimes the reality is you do not know how long you will be in an area. In the army I moved around a good bit. We did not buy a house each and every time we moved. Some assignments were on,y 2-3 years. Some companies have similar situations.
Over a generation, a house probably is a good investment, but will it harmonize with every possible 3 year time period when I need to move?
Posted on 5/9/24 at 5:30 am to jlovel7
quote:
We absolutely do not have a lifestyle problem.
I was talking to the guy who said he could barely afford his 1400 mortgage payment on >160k income.
Posted on 5/9/24 at 6:08 am to JohnnyKilroy
Do the opposite of what everyone on here says.
Buy the max house you can afford. Let inflation do it's work. If rates drop you can refinance to a lower payment.
If not, inflation is going to be high for the next decade. Your income will rise accordingly.
Buy the max house you can afford. Let inflation do it's work. If rates drop you can refinance to a lower payment.
If not, inflation is going to be high for the next decade. Your income will rise accordingly.
Posted on 5/9/24 at 6:44 am to makersmark1
quote:If you are in say Huntsville or Tuscaloosa if you’re in Alabama, you should make at least a small amount in 3 years after you factor in the closing costs when you purchased it and any costs of sale you incur when you sell it.
Over a generation, a house probably is a good investment, but will it harmonize with every possible 3 year time period when I need to move?
Bessemer or Hueytown, and say you’d need at least 5 years or you’ll do no better than break even.
Posted on 5/9/24 at 8:56 am to jlovel7
The reality is after putting 15-20% into retirement and having an emergency fund, you need to stop saving and live off what is now going to savings. Actually, everything you put into savings (sans emergency fund) should be going to the down payment on your house.
It will be tight but that will get you there and still allow you to maintain most everything else.
It will be tight but that will get you there and still allow you to maintain most everything else.
Posted on 5/9/24 at 9:51 am to armytiger96
As someone who experienced rapid salary growth, this is not sustainable
This post was edited on 5/9/24 at 9:52 am
Posted on 5/9/24 at 11:24 am to jlovel7
quote:
FWIW to everyone on here, my hometown housing prices start at 700-800k and a lot of my old neighborhood are now going for 1.5M and above. So to me 300-500k for a house feels like a beer budget.
What your parents could afford is not the same as you. Welcome to the real world
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