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re: High housing prices...
Posted on 7/25/24 at 10:52 pm to jizzle6609
Posted on 7/25/24 at 10:52 pm to jizzle6609
quote:
don't discount the day-to-day expenses that have increased quite a bit over the past 4 years.
You can probably just say last 40 years since the 80s were really the decade where "middle class" incomes began to shrink rapidly in relation to "essential expenses" -- a big reason that now almost all couples both work.
0
Posted on 7/25/24 at 11:01 pm to jcaz
quote:
I think eventually people will be forced to cut back on usual spending and focus their money on housing
I have been saying/thinking that for 10+ years. When does that spending bubble finally burst? Won't the gubmint just keep printing money and pass the debt onto the next generation?
Posted on 7/25/24 at 11:04 pm to POTUS2024
quote:
There's a guy on youtube that has done the math on this - the American Dream is just a fantasy for these younger generations. They are overburdened with debt, prices high, interest rates high - it's just not possible for them.
We have to see a mechanism forcing more houses onto the market for sale.
If you are willing to serve in the military, live in the midwest etc it's pretty attainable.
Do four years in the service move to Ohio you're fine just like our grandparents. Especially with all the remote work options.
Posted on 7/26/24 at 5:03 am to elprez00
quote:
Right. We’re saying kids with student loans and car notes are stupid. You know what else is out of control? Education and car prices. But lazy kids though. Damn them
Oh boy.
You don’t have to have a brand new car or attend Brown University.
I’ve said it multiple times, it’s how you decide to spend. The wife and I both drove used cars and lived in an older house and both graduated from University debt free due to scholarship. This was a choice to remain local and keep costs down as the scholarships covered tuition and books only.
You have folks who make a lot of money and you have folks who have a lot of money. Both exist and walk among you daily. Again it’s how you are applying your dollars.
Early flash, low cash.
Posted on 7/26/24 at 5:43 am to el Gaucho
You try so hard.
Posted on 7/26/24 at 7:16 am to theliontamer
The 300k starter home will come with property insurance, property taxes, and maintenance costs.
Posted on 7/26/24 at 7:23 am to Shexter
quote:
It's the first generation where it's the norm to have a $200+ a month cell phone bill and $100+ a month high speed internet + streaming services (Netflix, Prime, Hulu, etc.)
And the price of childcare is astronomical. It's worth it for now, but I very much welcome private school in a few years vs what a nanny costs...
Posted on 7/26/24 at 7:29 am to theliontamer
Fiance makes around 135, and I make around 135, and a 380k loan still hurts, I couldn't imagine trying to do that on a combined 120k.
Posted on 7/26/24 at 9:15 am to LRB1967
o wow, thanks for letting us know that taxes and insurance exist
Posted on 7/26/24 at 9:28 am to Florida_Man1981
Yea man, i got a STEM degree and live in louisiana, the student loans were minimal and im now married and own 2 homes at 34. I drove a cheap car through my 20s and didnt buy dumb shite. Crazy! These people act like the housing market is a sentient being and not a supply and demand market. Our country is not as strong globally as it was 50 years ago. The party is full and you have to make responsible decision if you want to be successful. Everyone wants to live in the nice neighborhood, in a big city, with little crime, and tons of amenities. Youre not entitled to live there just because you went to college.
Posted on 7/26/24 at 9:37 am to Jcorye1
a 380k loan would be for a 475k house. That's a nice arse house, or in a desirable city. But the total note would still be around $3000-$3500 right now, depending on where you live. A household income of 270k, you probably take home around 14k a month. That's still below the recommended 25-30% mortgage to income ratio. I think expensive car notes shoot most people in the foot.
Posted on 7/26/24 at 9:39 am to theliontamer
If you import people faster than you build housing then you create a housing shortage. A housing shortage means higher prices.
Now go look up the private equity firms buying up housing and then check their political donations.
And now you've arrived at the game.
And this is just one pressure on the market.
Now go look up the private equity firms buying up housing and then check their political donations.
And now you've arrived at the game.
And this is just one pressure on the market.
This post was edited on 7/26/24 at 9:40 am
Posted on 7/26/24 at 9:51 am to theliontamer
quote:
It's really not crazy that 2 people making 60k a year each can afford a 300k starter home.
If you can’t afford a $300k starter with a 30 year mortgage, consider getting a 50 year mortgage. You can even qualify in your 50’s. Obviously the bank isn’t expecting you to keep making payments into your 100’s. Just wait a few years until you can sell the home for $600k, then downsize and purchase a home with cash.
Posted on 7/26/24 at 10:36 am to theliontamer
Reasonably correct, and we are also paying an extra 1.2k a month to knock it down quicker which also hurts a bit.
Posted on 7/26/24 at 11:07 am to theliontamer
quote:
Yea man, i got a STEM degree and live in louisiana, the student loans were minimal and im now married and own 2 homes at 34. I drove a cheap car through my 20s and didnt buy dumb shite. Crazy! These people act like the housing market is a sentient being and not a supply and demand market. Our country is not as strong globally as it was 50 years ago. The party is full and you have to make responsible decision if you want to be successful. Everyone wants to live in the nice neighborhood, in a big city, with little crime, and tons of amenities. Youre not entitled to live there just because you went to college.
You are 100% correct and it is possible, especially if you purchased before 2020 and have equity. The problem lies with people that did not purchase prior to things going crazy and now the same home is 50-75% more expensive in just 4 years with a minimal increase in salaries. I could move to a smaller city and the home price would drop 35% but so would my pay
Posted on 7/26/24 at 12:09 pm to tketaco
But small towns/rural areas don’t have my precious hipster breweries and coffee shops?!
Posted on 7/26/24 at 2:39 pm to theliontamer
quote:
It's really not crazy that 2 people making 60k a year each can afford a 300k starter home.
It's extremely crazy. Do you realize that the same 300K starter home 6-7 years ago was 170-180K.
The construction cost of materials, labor and land has increased so much that I want to throw up. Oh, and now you can throw in the fact that interest rates are no longer 2-3% they are now 6-7%. Ironically, today's rates are normal.
Posted on 7/26/24 at 2:49 pm to jizzle6609
quote:
with a heftier homeowner's insurance policy and property tax bill
Forgot about that. I built my house in 2017.
For years 2017, 2018 no problem. Between 2019 thru today: My homeowners insurance increased 17.9%.
Not a flood zone, never filed a claim...
Posted on 7/26/24 at 3:10 pm to jizzle6609
quote:
I bet most people on this site didn’t buy a brand new house as their first residence.
I disagree. I've had about 3-4 houses so far. Every one of those, I found an up and coming subdivision, in a great area, and bought the lot first.
Paid double payments towards principal every month and paid the lot off in 2-3 years. During those 2-3 years, i focused on the house plans. The lot turns into my 20% down payment and everything else is in place to start construction on the home. 6-8 months later the house finished.
The beauty about this vs buying an existing (used) home
is that there is a tremendous amount of appreciation in the first few years that you will never see that type of return in such a short period on any preexisting home.
You have to get in early. Ideally, Phase 1 while streets are getting cut, or at the latest the beginning of Phase 2.
Live in the home 5 years, and do it all over again.
Posted on 7/26/24 at 3:16 pm to Supermoto Tiger
quote:
Supermoto Tiger
Very nice.
Between 2011-2023 I bought and sold 3 in the Houston area. I did it differently as I bought all pre owned homes in areas where new schools or top rated schools were located. I don’t want to deal with any decisions regarding the layout etc. The last was sold in Coles Crossing in Cypress after the crazy run on houses in the area.
Best thing out of all of this is we figured out exactly what size house we like now.
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