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Started By
Message
re: The math for buying a home no longer works, per WSJ
Posted on 12/20/23 at 10:00 am to Upperdecker
Posted on 12/20/23 at 10:00 am to Upperdecker
quote:
First time home buyers should be buying below their income levels. That allows them to build up equity and stay within an appropriate % of their income. Once they build up equity, buying housing appropriate to their income level becomes more attainable, and eventually may be able to buy above their income level
I have friends who did this. They are stuck in a house they've outgrown and probably make 1.5x what their house is worth, but don't feel like they can afford (or just don't want to afford) to buy something larger in this current market.
On the other hand, we bought a house that was about 3x our gross, but that we could grow into as our family grows and our incomes grow. We're locked into a 2.75% interest rate on a home that is now less than 2x our income and we have space to have more kids (currently only have 1).
This post was edited on 12/20/23 at 10:04 am
3
Posted on 12/20/23 at 10:06 am to Epic Cajun
quote:
I have friends who did this. They are stuck in a house they've outgrown and probably make 1.5x what their house is worth, but don't feel like they can afford (or just don't want to afford) to buy something larger in this current market.
Yep. When we were looking for a first home my parents said we should look at 2/1’s with ~1k sqft.
My god that would have been a fricking horrible decision. After closing costs coming and going to get into a bigger house once we had even just one child we would have been down pretty substantially vs just buying a house that one could reasonably grow into with a couple of kids.
Posted on 12/20/23 at 10:15 am to Epic Cajun
quote:
I have friends who did this. They are stuck in a house they've outgrown and probably make 1.5x what their house is worth, but don't feel like they can afford (or just don't want to afford) to buy something larger in this current market.
On the other hand, we bought a house that was about 3x our gross, but that we could grow into as our family grows and our incomes grow. We're locked into a 2.75% interest rate on a home that is now less than 2x our income and we have space to have more kids (currently only have 1).
Truth, if you can swing it. And everyone wonders why people aren't having kids until their 30's now. Some of these responses are out of touch with reality.
I say all of this as a current 2bed 1bath homeowner
Posted on 12/20/23 at 10:48 am to Epic Cajun
quote:
but don't feel like they can afford (or just don't want to afford) to buy something larger in this current market.
That’s entirely the current insane interest rate increases. It’s a unique circumstance. In a regular market, they’d probably scale up into a new house
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