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re: Can someone help me explain how people are affording a house in today's market?
Posted on 4/3/23 at 6:58 pm to GreatLakesTiger24
Posted on 4/3/23 at 6:58 pm to GreatLakesTiger24
quote:
Idk. I pay $1400/month rent for a relatively nice place in the city. That same mortgage payment (without a huge down payment) would get me a a piece of shite in the suburbs and my commute would be tripled, at least.
Renting has it's place. Without question.
I guess to the commnent I laughed at. They are already paying a mortgage, just not their own. Freedom to go somewhere else is a nice factor.
Reasons owning is better to me.
1. Ever had a landlord sell? Forcing you to move. This is my biggest reason to own.
2. Equity build over time.
3. Cash flows- basically anyone who bought in 2022 or before would make good cash flow. It's harder to do today.
4. Leverage- investors can leverage their equity.
5. Tax benefits.
6. Fixed rate. Rent increases are constant.
This post was edited on 4/4/23 at 8:14 am
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Posted on 4/3/23 at 6:59 pm to StringedInstruments
You have a fine head on your shoulders and already understand the trouble this wonderful country is in. Home ownership is a burden, not a blessing, at this level. The majority of Americans feel this same way. What you are about to see is a lowering of home ownership due to affordability. The number of transactions is going to plummet for several years if we do not get inflation and interest rates under control asap. I am not a realtor, but I am a professional in this line of work. Millions of people have refinanced at 2-3 percent interest rates. They will not be moving unless absolutely necessary.
Posted on 4/3/23 at 6:59 pm to StringedInstruments
Blackrock?
Posted on 4/3/23 at 7:03 pm to RLDSC FAN
I'm a poor cheap bastard.
House was built in 2007. I bought it in 2014. 1200 sq ft 3 bed 2 bath house on 1/3 an acre. Paid 79K. 4.75% interest rate. Payments are $635 a month. Escrow included in that.
I can't imagine going much higher. I'll die in this house.
House was built in 2007. I bought it in 2014. 1200 sq ft 3 bed 2 bath house on 1/3 an acre. Paid 79K. 4.75% interest rate. Payments are $635 a month. Escrow included in that.
I can't imagine going much higher. I'll die in this house.
Posted on 4/3/23 at 7:04 pm to lesserof2weevils
I would like to buy a rental property to take advantage of the poor people.
Posted on 4/3/23 at 7:13 pm to Packer
quote:
What field is that?
The maritime industry. I work a one month on/one month off rotation on a tanker.
quote:
Plenty? How many entry level jobs that pay between 70k and 105k do you believe exist and why wouldn’t college grads take them over HS grads?
Because it’s hard work and society generally looks down on it. Look at all the baristas as Starbucks with some generic degree. Just a couple days ago there was a thread about Waste Management in Houston not being able to find people to drive garbage trucks for 90k a year but can hire people all day with MBAs for 60k a year.
quote:
we've beaten this absolutely to death, but there are some fields that require a four year degree for advancement and to open other doors, to give options and typically a lot of those fields top out not too far above that and you've hit the earnings plateau
I’d generally agree with you but how many people are at LSU right now for a business or political science degree that will have dead end jobs in the next 15 years? Every industry has options for advancement. Some require more work than others.
Where I work, the absolute entry level position is around 70k (which just about everyone can get as long as you can pass a background check.) Within a year you can be at 100k and within another couple of years as one moves up it can go as high as around 250k
Posted on 4/3/23 at 7:14 pm to Arbengal
quote:
Millions of people have refinanced at 2-3 percent interest rates. They will not be moving unless absolutely necessary.
This will prove to be an issue down the line, IMO. We're sitting under 3 and definitely had plans to down size at some point after the kids are out of college.
Now our house is worth a lot, but it will also cost a lot to buy. Even if we pay cash, the value isn't close to what it was. Makes sense to just keep the bigger home.
Posted on 4/3/23 at 7:14 pm to Kipsgto
quote:this
What’s amazing to me as I get older, is just how much it takes to live when you have everything paid off. As a old timer told me once it takes a lot just to tote the key.
Posted on 4/3/23 at 7:15 pm to StringedInstruments
I ithink too many people are buying to keep up with the Jones/Instagram and without a care for their wallet.
We bought before the rush in Summer 2021. Now enjoy a hefty equity amount should we sell today. Got near prime fixed rate too thankfully.
USDA loans help the most with down payment assistance. You have to put up with living a good distance away from work/shops/etc. but it will help the wallet.
All about where you live. Columbia, SC for instance is not for those that want the NYC/lA lifestyle, but it is close enough to areas like Charlotte and Charleston where you can get that for a day.
We also don't drive/don't want to drive the latest cars. My Camaro will be paid off next year (now 7 years old), and Mrs.Jefffan will be paid off in 4 after her POS Nissan crapped the bed unexpectedly.
We've been to 3 weddings for her friends/brother and all were at least 50k USD (Her brother was 65k CAD). Purs is currently at 16k, and we are kicking ourselves for not looking longer for a cheaper venue.
It's certainly doable. But there are some sacrifices they you need to make.
We bought before the rush in Summer 2021. Now enjoy a hefty equity amount should we sell today. Got near prime fixed rate too thankfully.
USDA loans help the most with down payment assistance. You have to put up with living a good distance away from work/shops/etc. but it will help the wallet.
All about where you live. Columbia, SC for instance is not for those that want the NYC/lA lifestyle, but it is close enough to areas like Charlotte and Charleston where you can get that for a day.
We also don't drive/don't want to drive the latest cars. My Camaro will be paid off next year (now 7 years old), and Mrs.Jefffan will be paid off in 4 after her POS Nissan crapped the bed unexpectedly.
We've been to 3 weddings for her friends/brother and all were at least 50k USD (Her brother was 65k CAD). Purs is currently at 16k, and we are kicking ourselves for not looking longer for a cheaper venue.
It's certainly doable. But there are some sacrifices they you need to make.
Posted on 4/3/23 at 7:24 pm to StringedInstruments
quote:
According to this site, 1 in 10 home purchases were cash in 2022. Most since 1988.
Several factors contributed to this.
- Black rock is paying cash.
- Lots of people were paying cash for vacation homes.
- Lots of people were downsizing with the rapid increases in home value.
Posted on 4/3/23 at 7:26 pm to Arbengal
quote:
Millions of people have refinanced at 2-3 percent interest rates. They will not be moving unless absolutely necessary.
We’re in the first house we bought since we’ve been married, for years I would look at real estate and was open to buying a new house in our city, not really thinking this would be some sort of forever home. We have a 2.75% interest rate, there’s no way that I would sell and buy something else in this market. Luckily we bought a house that we’re able to grow into.
Posted on 4/3/23 at 7:27 pm to StringedInstruments
It’s not sustainable.
Posted on 4/3/23 at 7:30 pm to Epic Cajun
quote:
Luckily we bought a house that we’re able to grow into.
We'll buy one more most likely but it will probably be a 10 yr mortgage where we put 60+% down. We want to downsize when the kids are all gone. It will suck to give up our 2.3% rate though.
This post was edited on 4/3/23 at 7:31 pm
Posted on 4/3/23 at 7:34 pm to SECdragonmaster
quote:also work from home. Lots of people sold in high cost of living areas and moved to low cost of living areas. Many people in our town (30k) came from big cities/suburbs.
Several factors contributed to this.
- Black rock is paying cash.
- Lots of people were paying cash for vacation homes.
- Lots of people were downsizing with the rapid increases in home value.
Posted on 4/3/23 at 7:39 pm to fallguy_1978
My rate is at 2.6%. Wife wants a bigger house. We are a family of 3 and live in 2100 sqft. Updated all appliances with the exception of the fridge and replaced the roof. Told her hell no. Something of similar size would near double our mortgage.
Plan is to pay off cars and student loans, then buy a condo in Pensacola or Orange beach we can rent out and eventually retire in.
Plan is to pay off cars and student loans, then buy a condo in Pensacola or Orange beach we can rent out and eventually retire in.
Posted on 4/3/23 at 7:43 pm to jefffan
quote:
I ithink too many people are buying to keep up with the Jones/Instagram and without a care for their wallet.
Most people are buying houses to raise a family in a safe neighborhood with decent schools - not brag on social media.
Owning a home has always been a stepping stone to raising children, and mother nature places a biological clock on the reproduction window, so people don't always have the luxury of riding out the economic and social waves.
When young, educated, hard working, responsible people are priced out of the housing market, they are going to stop getting married and reproducing. Meanwhile the unemployed ghetto queens and border jumpers will be spitting out illegitimate kid after illegitimate kid because each one doubles their food stamps, section 8 vouchers and child tax credits.
You want to see the Brazilification of America play out in real time? Keep promoting these economic trends.
Posted on 4/3/23 at 7:45 pm to lesserof2weevils
Let's get something straight. Blackrock is not Blackstone. Blackstone is the one most of you are thinking of.
Blackrock
Blackstone
Blackrock
Blackstone
Posted on 4/3/23 at 7:47 pm to AUFANATL
quote:
Most people are buying houses to raise a family in a safe neighborhood with decent schools - not brag on social media.
I agree. I think the keeping up with the Joneses is much more applicable to cars and vacations than homes.
Posted on 4/3/23 at 8:06 pm to WaydownSouth
quote:
My rate is at 2.6%. Wife wants a bigger house. We are a family of 3 and live in 2100 sqft. Updated all appliances with the exception of the fridge and replaced the roof. Told her hell no. Something of similar size would near double our mortgage.
Ours is 2500-2600 but we had 2 kids at home and 2 dogs when we bought this house. The youngest is 16 now.
We have decided we want something more like 1400-1600 sq ft for just the 2 of us.
Posted on 4/3/23 at 8:06 pm to SwampAssassin
quote:
Because it’s hard work and society generally looks down on it. Look at all the baristas as Starbucks with some generic degree. Just a couple days ago there was a thread about Waste Management in Houston not being able to find people to drive garbage trucks for 90k a year but can hire people all day with MBAs for 60k a year.
WM pays people driving garbage trucks about 45k a year. The CEO was exaggerating. The fact is there are some jobs that don’t require a degree and pay well, but most don’t pay what you said for entry level workers..and there aren’t enough of them for every potential entry level worker with a HS diploma.
quote:
Where I work, the absolute entry level position is around 70k (which just about everyone can get as long as you can pass a background check.) Within a year you can be at 100k and within another couple of years as one moves up it can go as high as around 250k
Does your company have jobs for all 3.5+ million people that graduate HS each year? Do you think your place of employment is so typical as to describe such jobs as “plentiful”? It’s an outlier. Most college grads earn more than most HS grads. The last figure I saw was close to 1 million over a working lifetime.
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