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Started By
Message
re: Can someone help me explain how people are affording a house in today's market?
Posted on 4/4/23 at 7:56 am to AwgustaDawg
Posted on 4/4/23 at 7:56 am to AwgustaDawg
quote:
owning property is an anchor on upward mobility for most people. If you ain't going to be somewhere more than 5 years it is unusual to make realtor fees and closing costs back even in a good market.
My company pays closing costs, agent fees, and typically gives a 3% value of home sale bonus when they ask you to move for a job. If you can't sell, they purchase it and sell it for you, but you do miss out on the bonus. If I were to switch companies that required a move, it'd be negotiated. I admit that's not something everyone can expect, but in my situation, it removes some of those issues.
I certainly agree that short term renting is a good idea in many situations. I just don't like when people try to make it seem like they are winning by renting and having someone else pay all the typical owner costs. Even long-term owning costs like roofing and HVAC are considered when setting rent rates. Those costs are covered by the return on investment. You are screwing up as an owner if you don't figure out your fully burdened costs of ownership and pass that on to the renter plus some. The renter agrees to pay the premium price for the reasons you stated.....flexibility on moving/liquid cash/etc..
0
Posted on 4/4/23 at 8:04 am to GreatLakesTiger24
quote:
It’s called generational wealth
This right here. Most of this is called “mommy/daddy money” which is fine
Problem is they are burning through it now and the next generation is going to be boned with maintenance/tax costs
Posted on 4/4/23 at 8:12 am to elprez00
quote:
And it’s getting worse. Daily.
I’m scared to death we are teetering on the edge of collapse. I make a very good living. Very above average. In the last two years, fuel has doubled, groceries have almost doubled, my car insurance just randomly went up $100/m and my homeowners insurance went up $300/m. I mean it’s impacting me. Big time. I know it has to be impacting most people severely more than they are admitting
Agreed. We are very blessed that the insane increase in cost of living hasn’t impacted our quality of life. We don’t like spending more but we can afford it.
But every time I buy groceries and see how much everything costs, I’m amazed that the average family with kids can afford to feed, clothe and keep a roof over their head. If I see a young person in front of me in line with formula, diapers, etc, I sometimes pay for their groceries now. Other times, I donate bags of food. If we were just starting out under current circumstances, there’s no way we would be in the position we are today.
Posted on 4/4/23 at 8:13 am to fallguy_1978
quote:
We want to get a smaller house when the kids are gone in 2-3 years. We just don't want the upkeep. Why have a big house for just me and my wife?
You going to stay in BR aren’t you
Posted on 4/4/23 at 8:16 am to theunknownknight
quote:only by the jealous poors.
Most of this is called “mommy/daddy money” which is fine
another home buying group is college grads who lived at home for a couple years. one of my buddies did this and saved like 75k for a downpayment on a 250k house in 2018. it's not generational wealth by definition, but it kind of is.
Posted on 4/4/23 at 8:17 am to BilbeauTBaggins
quote:
Renting is cheaper and has less hassle than being a homeowner. If something breaks, you call the landlord/apartment complex and it gets fixed/replaced.) No dedication to a massive note every month. This is a massive incentive compared to owning a home, where you would have to provide major upkeep just to see an even return on investment.
Frick that. I am not working my arse off just to line the pockets of the landlord. I am much happier owning my own home.And to suggest it's an even return shows your lack of knowledge.
Posted on 4/4/23 at 8:17 am to biglego
quote:
You going to stay in BR aren’t you
Not planning to. We are fixing up our current house right now so we can put it on the market in 2025.
Posted on 4/4/23 at 8:20 am to RockyMtnTigerWDE
quote:
And to suggest it's an even return shows your lack of knowledge.
Ok, you do you. Some of you have never rented higher end places where life was on easy mode and it shows. You probably rented BR Garden District dumps.
Posted on 4/4/23 at 8:23 am to soccerfüt
No pics. And that’s not cool. She worked hard for her degrees and is employed and self-sufficient. Her patients love her and she enjoys her field. Not a nurse. Not that there’s anything wrong with that. Would you prefer she be on welfare for your tax dollars to support?
Posted on 4/4/23 at 8:35 am to PhiTiger1764
quote:
You think a $4k mortgage is ok on $200k combined?
It's 24% of gross. That isn't that crazy.
Posted on 4/4/23 at 8:40 am to fallguy_1978
quote:
We want to get a smaller house when the kids are gone in 2-3 years. We just don't want the upkeep. Why have a big house for just me and my wife?
Hubby and I plan to sell the big house off when we retire and get a 2 bedroom in Toledo Bend.
Posted on 4/4/23 at 8:41 am to PhiTiger1764
quote:The dollars are meaningless if your % is in line.
You think a $4k mortgage is ok on $200k combined?
I started off at 28%. This is principle, interest, taxes and insurance.
It’s now under 11% on the same house. It is doable at his 24% and gets easier as time passes.
This post was edited on 4/5/23 at 6:22 am
Posted on 4/4/23 at 8:44 am to Epic Cajun
Having PMI is trashy
Posted on 4/4/23 at 8:48 am to PhiTiger1764
quote:
You think a $4k mortgage is ok on $200k combined? shite like this is why housing prices are through the roof.. and why the general finances of many solid income families are in absolute shambles.
This guy made a great call backing out of this.
This. My rule of thumb is take whatever the bank will lend you and divide by 2. That is what you can actually afford. The bank will put you in debt fast.
Posted on 4/4/23 at 8:49 am to boogiewoogie1978
quote:
This. My rule of thumb is take whatever the bank will lend you and divide by 2. That is what you can actually afford. The bank will put you in debt fast.
The rule of thumb 20+ years ago was not to buy a house more than 2.5x your annual household income. I think a lot of people go over that now though.
Posted on 4/4/23 at 8:58 am to StringedInstruments
Stringed, you assume people are being responsible with their finances. That is definitely not the case.
They won’t do 20%
They’re having kids later. Factor kids out of the equation for a while and you can realistically put up to 50% of your income into a mortgage payment. Not that it’s a good idea, but it’s an idea. Also we live in the South and pay the private school tax. Most of the country doesn’t
quote:
20% down on a $535k house is $107k.
They won’t do 20%
quote:
The monthly payment on a $535k WITH 20% down would be $3200/month (with estimated insurance and taxes). How is this sustainable at all?
They’re having kids later. Factor kids out of the equation for a while and you can realistically put up to 50% of your income into a mortgage payment. Not that it’s a good idea, but it’s an idea. Also we live in the South and pay the private school tax. Most of the country doesn’t
Posted on 4/4/23 at 9:04 am to PhiTiger1764
quote:
You think a $4k mortgage is ok on $200k combined?
Yes it’s perfectly fine. That guy can manage his other expenses and maintain that mortgage easily, then refinance when/if rates come down
Posted on 4/4/23 at 9:19 am to Bullfrog
quote:
The dollars are meaningless if your % is in line.
Oh? So a $2k mortgage is fine on $100k combined?
Posted on 4/4/23 at 9:36 am to RockyMtnTigerWDE
quote:
Frick that. I am not working my arse off just to line the pockets of the landlord. I am much happier owning my own home
All else equal, I agree with you 100. There is a psychological/cathartic/mental advantage to owning an immovable investment like your primary residence than there is to renting...with a few exceptions of course.
Posted on 4/4/23 at 9:36 am to nola tiger lsu
Higher end, lower end, take your pick you're an idiot throwing away your money. You can still buy a place where the community is maintained by someone else like a "High End" patio home, or "High End" townhome. They even have "High End" apartments you can purchase.
But go ahead and give your money away "Baller"
But go ahead and give your money away "Baller"
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