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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 9:18 am to Upperdecker
Posted on 12/20/23 at 9:18 am to Upperdecker
quote:
You shouldn’t, but you can. Some people only put down 3 or 5% even. Which jacks up their mortgage costs on a monthly basis so high with straight principal plus PMI that it takes them a long time to actually build equity
This is horrible advice lmao.
If you put off buying a house because you are afraid of PMI you are retarded.
1
Posted on 12/20/23 at 9:19 am to Upperdecker
quote:
You shouldn’t, but you can. Some people only put down 3 or 5% even. Which jacks up their mortgage costs on a monthly basis so high with straight principal plus PMI that it takes them a long time to actually build equity
I followed this advice and didn't buy a house in 2019. Yeah I am bitter.
Obviously there are risks, but as long as you can afford the house and have a good stable job, it's not a big deal. Just go hard against the principle the first 5 years or so and you'll be better off than someone who put 20 down and paid the suggested payments.
This post was edited on 12/20/23 at 9:21 am
Posted on 12/20/23 at 9:19 am to GreatLakesTiger24
People have to live somewhere, landlords generally make a profit or they don’t remain landlords.
Posted on 12/20/23 at 9:20 am to stout
quote:
On a POST-TAX basis, homebuyers are spending nearly 60% of their income on home payments.
What moron is doing this? haha.
quote:
A homebuyer would need to make at least $110,000 per year to spend 30% or less of their income on home payments.
Homes don't dictate the income needed. Income dictates the home which you can afford.
Posted on 12/20/23 at 9:21 am to GreatLakesTiger24
A person making the median income and purchasing a median home is either 1) a moron and 2) keeping up with the Joneses.
Posted on 12/20/23 at 9:22 am to Upperdecker
quote:
First time home buyers should be buying below their income levels.
Then they spend all their savings on guns and ammo to fend off the undesirables
Posted on 12/20/23 at 9:22 am to JohnnyKilroy
quote:
This is horrible advice lmao.
If you put off buying a house because you are afraid of PMI you are retarded.
Especially if you make a plan to pay extra and get rid of the PMI quickly.
If you have a $285,000 mortgage for 30 years at 7% interest and you make an extra payment ($1,896) every 3 months you pay off your house 14.6 years sooner.
This post was edited on 12/20/23 at 9:25 am
Posted on 12/20/23 at 9:25 am to JohnnyKilroy
quote:
"Quit fricking whining all the time and make something of yourself. If you want to buy a house, work harder and gain more valuable skills. You only have yourself to blame if your life isn't going the way you want it to"
quote:
"This country is going down the toilet thanks to dems. Last one out hit the lights because we ain't coming back. Things were so much better and easier back in the day."
classic JK'ing.
The OT would be lost without you brother
Posted on 12/20/23 at 9:26 am to Klark Kent
Thanks baw
Posted on 12/20/23 at 9:26 am to idlewatcher
quote:
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.
Correct, it has to do with buying over priced. There are foreign entities at play in this, which needs to be dealt with, but that's not the only reason the median price is so high.
Posted on 12/20/23 at 9:28 am to Steadyhands
quote:
Homes don't dictate the income needed. Income dictates the home which you can afford.
To intelligent buyers, yes. To buyers disconnected from reality with no financial intelligence? Not as much.
Think of how much an average person is exposed to financial literacy during the course of their life. It is easily avoided completely unless intentionally sought.
Posted on 12/20/23 at 9:28 am to Steadyhands
quote:
Clearly the math hasn't worked for a while, this didn't just happen.
Don't buy houses you can't afford and that are over priced, and this current income to cost ratio wouldn't exist.
Buying a house to live in and calling it an investment has never been a good idea. At any time in history if you broke even after taxes, insurance, interest and maintenance you were fortunate. If you did the maintenance yourself you may have saved some money but you had an opportunity cost that is impossible to calculate. If you did make more than it cost to own and you did not down size or buy again in an area where prices had not increased all you did was swap one "asset" for another of equal value. This does not include the fact that owning a pile of bricks can be an anchor that keeps you from growing your career and taking advantage of opportunities. Owning a home is an expense. If you are fortunate it may not cost you much more than renting to own it. The piece of mind from owning is very valuable to some but that is often replaced by regret over the costs of owning.
Posted on 12/20/23 at 9:28 am to ApexHunterNetcode
quote:how?
large proportion of families now have duel incomes. It seems statistics are slanted to ignore. Although
Posted on 12/20/23 at 9:29 am to Upperdecker
quote:
You shouldn’t, but you can. Some people only put down 3 or 5% even. Which jacks up their mortgage costs on a monthly basis so high with straight principal plus PMI that it takes them a long time to actually build equity
There are some professions (physicians) who can put 0% down and still not have to pay PMI.
Posted on 12/20/23 at 9:29 am to Steadyhands
quote:
Clearly the math hasn't worked for a while, this didn't just happen.
Don't buy houses you can't afford and that are over priced, and this current income to cost ratio wouldn't exist.
Clearly we should cancel and stop all volume builders that build affordable homes.
Posted on 12/20/23 at 9:30 am to GreatLakesTiger24
If it doesn't work, I don't understand why housing prices haven't dropped then. If I'm selling my house for 300K and people can only afford 200K, then how am I selling my house for 300K? The market should make me lower my house price. What am I missing?
Posted on 12/20/23 at 9:30 am to Bullfrog
quote:
Yes because just like health care, home ownership is a right.
You're right, we should all just live in commie bloc apartments and have unaffordable healthcare.
Posted on 12/20/23 at 9:31 am to JohnnyKilroy
quote:
"Quit fricking whining all the time and make something of yourself. If you want to buy a house, work harder and gain more valuable skills. You only have yourself to blame if your life isn't going the way you want it to"
"This country is going down the toilet thanks to dems. Last one out hit the lights because we ain't coming back. Things were so much better and easier back in the day."
There does seem to be an awful lot of contradictions coming from older folks.
The same is true of us lucky enough to have been able to work our way through college. It ain't possible today...upper level managers don't make enough money to pay their way through most colleges today when many a bartender managed it on tips through the 1980s.
Posted on 12/20/23 at 9:31 am to alajones
quote:how does one address this without putting millions of people on trains and sending them to a camp?
Addressing this issue would bring housing prices down also.
Posted on 12/20/23 at 9:32 am to Upperdecker
There are dozens of us!
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