re: The math for buying a home no longer works, per WSJ

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We’re talking about buying a home in 2023,

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I'm talking about saving money to make that home payment better.

Did you know that 3% down-payment gets better terms than 0%?

Did you know that 5% down-payment gets you a conventional loan? You can avoid FHA or USDA completely.

Did you know that in addition to a lower principle loan balance and consequential lower payment, you also get more favorable PMI terms with the larger down-payment?

Good decisions have a way of compounding.

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God forbid that a can-do attitude leave no excuses on the table.

I spent ages 14-25 in restaurants.

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Why were you such a lazy worker for so long? A waiter at 25? I know people who were investment bankers at 25.

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In addition to avoiding the cost of interest, I hadn't even discussed the benefits of working multiple jobs.

God forbid that a can-do attitude leave no excuses on the table.

I spent ages 14-25 in restaurants.
I graduated college early after 3.5 years at 21 years old.

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Much respect to you if you did/do all of these things.

I've also made large life sacrifices in the 20's that allowed me to buy an old home in a great neighborhood last year. But I was also very lucky with how our realtor found the home after a year of getting into bidding wars with cash offers and corporations.

I'm just speaking to the fact that the average person isn't as fortunate, and used my own finances as an example of how everything is far more expensive today than just a decade ago, often prohibitively so.

Just like you, I'll be able to afford a 2nd home or an expansion in a few years off of equity from our first home since it has appreciated a decent bit already, but those who are trying to get into the housing market now are only getting left further behind for little to no fault of their own.

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Basically the best advice is to always pay cash because it makes you cheap

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That's terrible advice if you have a healthy relationship with your finances. Credit cards not only offer fraud and theft protections but give you large sign-up and spending rewards if you pay off monthly and treat it like a debit card like we do.

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That's terrible advice if you have a healthy relationship with your finances. Credit cards not only offer fraud and theft protections but give you large sign-up and spending rewards if you pay off monthly and treat it like a debit card like we do.

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Yeah so does cash

It’s called going to the gym and concealed carry


Good for you racking up 300 airline miles you can never use though

And you want to complain about life isn’t fair? When you’re getting married? Bruh I’ll trade you a house for a wife it’s looking like I’m gonna have to die alone, become a stepdad, marry a fat chick or God forbid, a n*rse

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Good for you racking up 300 airline miles you can never use though

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Chase gave me $800 (more if used on travel) last year for just signing up for their card and putting my normal expenses on it while paying it off every month. Switched to Citi for the same deal this year

If the irresponsible credit card customers want to give me spending bonuses, I'll gladly let them.

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And you want to complain about life isn’t fair? When you’re getting married? Bruh I’ll trade you a house for a wife it’s looking like I’m gonna have to die alone, become a stepdad, marry a fat chick or God forbid, a n*rse

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Next year. Don't have a wedding. That's a whole other level of price-gouging that I didn't even know existed

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Oh, there's definitely one poster in this thread being intellectually dishonest.

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I just did the math on my son.
19 years old.
Making $18/hour.

He is a student. But just assume he works 40/week and 52/yr.
That's $37,740/yr.

Alone, he'd qualify for a $1,185.60 house payment (piti).
Give him a wife with the same $18/hr and that house payment doubles to $2,371.20.
Assume $3k/yr for taxes.
$600/yr for insurance (condo).
$350/mo for HOA dues.
That's $1721/month left for mortgage and pmi.
Assume $140/mo for pmi and he is eligible for $1581/mo for the mortgage.
At 7% interest, that is a $235,000 loan.
After a 5% down-payment $12,368, that is a $235,000 loan.

LINK

35 hits for available condos and townhomes in that price range.

How can 2 people save $12k?
2 bedroom apartment at $1400/month in our area.
They could split that $700 a piece. Or sublet the 2nd bedroom ($350 a piece).
Gross income at $18/hr for 2 a piece is $74,880 annual. And they are able to maintain a housing expense in Atlanta between $700 to $1400 in the 2 bedroom apartment.

Why are people fighting the idea that things can happen?
This isn't impossible?
This isn't a distant dream?

I've got 3 teenagers making over $14/hour.
How outrageous is a couple each at $18/hour?
That is a legitimate question.

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The average hope price is 400+k
Median income *now* isn't able to support buying at the average house price

Has nothing to do with buying outside your means brah.

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Yes, it does. You don't have to buy the median priced home if you can't afford it. Find one you can afford easily. Stay a few years, sell at a profit, and buy a bigger one.

It's the same formula that has always worked and will continue to work as long as you have some patience.

The real problem right now is inflation coupled with high interest rates. People are struggling to just make ends meet. Saving for a down payment is a steep hill to climb for most in this environment.

Still, there are things people can do: get a cheaper cell phone, sell the overpriced car with a huge note and get a decent used vehicle that will get you to and from work, shop for lower car/health insurance rates, get your groceries on sale, take your lunch/dinner to work, and limit how often you go out. You will be amazed at how quickly you can save money doing those basic things, but today's generation wants/expects everything NOW.

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Kids are a choice as well. If you cannot afford them, don't have them

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This is fricking rich. It is frequently mentioned on this board that younger people are forgoing having kids because of how expensive it is to raise them in this economy, and they're called selfish (among other things) for it.