- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
re: Salary of $115,627 needed in order to qualify for a mortgage on a typical American home
Posted on 10/18/23 at 4:41 pm to JohnnyKilroy
Posted on 10/18/23 at 4:41 pm to JohnnyKilroy
I really was playing real estate 4D chess when I bought my rent house from my landlord before they could put it on the market for under $200k. Place is an absolute money pit of endless problems, but it doesn’t flood, the neighborhood is safe, it’s convenient near my job, and I’m locked in to a low rate. If I can just keep my head above water, I’ll be printing equity.
Zillow estimate is almost $50k over what I paid for it 3 years ago.
Zillow estimate is almost $50k over what I paid for it 3 years ago.
This post was edited on 10/18/23 at 4:43 pm
1
Posted on 10/18/23 at 4:50 pm to kingbob
At least you bought so you’re “in” since your equity has grown with the market. We barely got in with a 2br 1ba in Southdowns a couple years ago.
It’s the interested 1st time homebuyers that are getting screwed. Home ownership is/will become a privilege that far less are able to afford.
It’s the interested 1st time homebuyers that are getting screwed. Home ownership is/will become a privilege that far less are able to afford.
Posted on 10/18/23 at 4:51 pm to EarlyCuyler3
quote:can we dive more into the lack of savings aspect of this?
Kind of irrelevant though when you can't afford to get in the door, isn't it?
Millennials are typically defined as people born from 1981 to 1996. So, that is ages 27 to 42. Most Millennials have been in the workforce for 12+ years.
How have 66% of them not been able to save anything towards a home downpayment?
Found these tidbits after researcing:
quote:
The Gallup report even pegs millennials as "the job-hopping generation," and it asserts that millennials lack of engagement in the workplace is one reason they are always looking for a better gig.
quote:
Garrison also says that availability of credit, dramatic swings in the stock market, and shifts in what it means to work and have a career mean that millennials are more likely to spend money on experiences and temporary needs instead of focusing on acquiring assets.
For example, Garrison says that young people may look at the high cost of housing prices and decide it's a better idea to cash flow an awesome vacation versus saving for years to build up a huge down payment for a house or investing in a brokerage account.
quote:
Financial advisor Jordan Taylor of Core Planning points out that young people spend a lot more on their phone bills and various subscriptions than previous generations...
quote:
Then there are just lifestyle purchases in general, including some that could result from social media pressure that also did not exist a few decades ago.
"Nicer clothes, nicer cars, higher rents, more expensive mortgage payments, and lower rates of marriage are all areas where money gets spent and is not funneled towards saving goals at large," says Taylor.
https://www.forbes.com/sites/robertfarrington/2023/03/03/the-millennial-wealth-gap-why-they-cant-seem-to-get-ahead
The bottomline, 66% of millenials couldn't afford to put a down payment on any home regardless of cost or mortgage rate.
I am being sincere when I say I don't revel in these doom and gloom articles being written about the real estate market...and I have always shied away from dumping on millennials, but some of this is self-inflicted.
I hope the market does turn around, but it appears there will need to be government intervention and/or lots of pain (recession/layoffs/foreclosures) to burst the bubble...
Posted on 10/18/23 at 4:53 pm to Chicken
quote:
The bottomline, 66% of millenials couldn't afford to put a down payment on any home regardless of cost or mortgage rate.
Due in no small part to rent skyrocketing with no end in sight.
Posted on 10/18/23 at 4:55 pm to EarlyCuyler3
quote:you are saying this has been happening every year since they entered the workforce?
Due in no small part to rent skyrocketing with no end in sight.
Do you totally just disregard some of the reasons in my post?
This post was edited on 10/18/23 at 4:57 pm
Posted on 10/18/23 at 4:57 pm to Chicken
quote:
you are saying this has been happening every year since they entered the workforce?
Look at inflation vs wage stagnation.
Posted on 10/18/23 at 4:59 pm to Chicken
quote:
you are saying this has been happening every year since they entered the workforce?
Depends on where you live but the answer is yes a lot places. And loving further away from your job doesn’t help when you make up the difference with current gas prices
This post was edited on 10/18/23 at 5:01 pm
Posted on 10/18/23 at 4:59 pm to Chicken
quote:
Do you totally just disregard some of the reasons in my post?
No, I think it plays a small part. But not enough to make a significant difference.
Posted on 10/18/23 at 5:14 pm to Chicken
If only the cola graph was this flat.
Posted on 10/18/23 at 5:27 pm to EarlyCuyler3
quote:
And then work where? That's the problem.
This is a website that thinks the majority of Americans should just pack up their shite, move out of cities, and live off the grid in Montana.
Sounds great, doesn’t work. Another poster was correct earlier, if you can fix crime in cities you can help alleviate a lot of housing pressure. Tall task, but making areas that are already built inhabitable to the average citizen is the way to go.
Posted on 10/18/23 at 5:29 pm to Swagga
quote:
This is a website that thinks the majority of Americans should just pack up their shite, move out of cities, and live off the grid in Montana.
Not to mention, good luck finding affordable property in Montana.
Posted on 10/18/23 at 5:32 pm to EarlyCuyler3
quote:
No, I think it plays a small part. But not enough to make a significant difference.
For some unexplained reason, older people seem to be wholly incapable of grasping that the 2k or less that young people spend in a year on cell phone bills, coffee and avacado toast isn't really the anchor holding them back.
People like darth really believe millennials could come up with 80k cash for a downpayment if they weren't spending 60 bucks a month on their internet bill and 20 bucks a month paying off their iphone.
It has nothing to do with the 1500 they spend on rent (They have roomate(s)), the 600 a month on SL (stem degree from a state school) or 500 a month they pay for car note and insurance (18k used car with a 48 month note and a good rate).
I'm not saying young people don't waste money on dumb shite. They absolutely do.
But thread after thread you have people listing shite like buying an iphone every 2 years or paying for data plans as the yoke around the necks of the youth. It's comical.
This post was edited on 10/18/23 at 5:38 pm
Posted on 10/18/23 at 5:48 pm to JohnnyKilroy
Johnny, I get what you are saying but research shows that 66% of millennials renters have zero saved towards a home downpayment...so, on one hand, they complain how hard it is to afford a home, but on the other hand, they haven't saved at all towards buying one, with research showing they tend to spend more frivolously than other generations.
What are people supposed to infer from that?
What are people supposed to infer from that?
quote:honest question, has there been a moratorium on student loan payments in the last 36+ months? If so, that money could have been set aside for a downpayment, no?
the 600 a month on SL (stem degree from a state school)
This post was edited on 10/18/23 at 6:36 pm
Posted on 10/18/23 at 5:52 pm to bayoudude
quote:
Good lord a $2,866 mortgage on a $115k gross salary I hope you like beans, rice and ramen noodles. A car note, home owners insurance, health insurance, gas, groceries etc and you better hope nothing breaks.
That salary would be roughly 6,000 or so take home pay per month.
Not saying that a mortgage of 2,800 would be ideal, but you can make it with $3200 a month for bills especially without a car note and no other revolving credit card debt.
Posted on 10/18/23 at 5:53 pm to Chicken
Tangential, but:
It's called giving up. Not saying it's right, but they have a point.
When you lose all faith in the system, what's your breaking point for even trying anymore? It's pretty easy to understand why some of even a lot have taken the attitude of enjoying what time they have now, instead of banking on a future they don't believe in.
quote:
The younger “next gen” portion of the demographic has recoiled from saving for retirement in a big way. Of those surveyed in a 2022 State of Retirement Planning report released by Fidelity Investments, almost half the adults between the ages of 18 to 35 (45%) “don’t see a point in saving until things return to normal.
It's called giving up. Not saying it's right, but they have a point.
When you lose all faith in the system, what's your breaking point for even trying anymore? It's pretty easy to understand why some of even a lot have taken the attitude of enjoying what time they have now, instead of banking on a future they don't believe in.
This post was edited on 10/18/23 at 5:57 pm
Posted on 10/18/23 at 5:54 pm to Crawdaddy
quote:
Problem is these young kids want a 300-400K home. There are plenty of 175K homes out there
Problem is a 150k home is now 400k at 8%. You buy an inflated home that you can't refi later on when it's value decreases, without covering the difference.
Posted on 10/18/23 at 6:01 pm to Chicken
Chicken, are you comparing that to other generations at the same age or is it assumed that that is an unprecedented number?
Your article also says 50% of millennials own homes, so the 66% number is at least a little twisted. Adjusted for age, home ownership rates at various ages for each generation are not out of whack with the trend being home ownership has declined for subsequent generation.
Your article also says 50% of millennials own homes, so the 66% number is at least a little twisted. Adjusted for age, home ownership rates at various ages for each generation are not out of whack with the trend being home ownership has declined for subsequent generation.
quote:
Among the oldest batch of millennials who reached age 40 in 2021, the homeownership rate is 60 percent. In comparison, 64 percent of Gen Xers, 68 percent of Baby Boomers, and 73 percent of Silents owned homes when they were the same age
Posted on 10/18/23 at 6:05 pm to GRTiger
GR, I got my info from this article:
https://www.apartmentlist.com/research/millennial-homeownership-2022
I don't think the Forbes article gives a percentage of millennials owning homes.
https://www.apartmentlist.com/research/millennial-homeownership-2022
I don't think the Forbes article gives a percentage of millennials owning homes.
Posted on 10/18/23 at 6:06 pm to Chicken
quote:
honest question, has there been a moratorium on student loan payments in the last 36+ months? If so, that money could have been set aside for a downpayment, no?
I agree with this. Intelligent borrowers took advantage and either paid off a ton before the restart or they saved some for a downpayment.
quote:
Johnny, I get what you are saying but research shows that 66% of millennials have zero saved towards a home downpayment...so, on one hand, they complain how hard it is to afford a home, but on the other hand, they haven't saved at all towards buying one, with research showing they tend to spend more frivolously than other generations? What are people supposed to infer from that?
Well it’s not really 66% of millennials. It’s 66% of millennial renters.
And do they (millennials in general) really spend THAT much more frivolously than other gens? Perhaps so but the average american, regardless of age, barely has any savings.
Is it really that difficult to admit that certain things in life, such as home affordability, were significantly more attainable and realistic 30 years ago vs. today? People bitch nonstop about how this country has gone to shite and our money is now worthless. But for some reason when it’s comes to home affordability and real estate, suddenly it’s actually not any different than before. Why is that?
Posted on 10/18/23 at 6:06 pm to EarlyCuyler3
quote:
Trump printed money hand over fist during COVID and helped create this inflation.
Page 18 of 28
Popular
Back to top
Follow TigerDroppings for LSU Football News