Seriously though everyone’s wants to play struggle olympics. People could afford homes and children on two sometimes one income and now my partner and I make over 100k a year after tax and we have almost no hope of buying a home. Spoiled generation
Entirely depends where. The cheapest home with half of an hour of me that doesn't require a teardown is $250k, for a 2 bed 1 bath. This is not a particularly high CoL area, and even with a 20% down payment you'd need to be making 80k to afford the mortgage+taxes+insurance.
I bought my place for $210k making 50k per year and I used the first time home buyer option so only needed 8k down. My mortgage was $1569 including taxes, mortgage insurance, and home insurance. I've had no problem at all making payments. Obviously, it wasn't ideal spending 35% of my income on my mortgage and I had to cut back on spending, but that's always been the reality of home ownership, and I certainly wasn't struggling. I make more money now, I was able to refinance to get the mortgage insurance off, and while rent continues going higher, my mortgage has gotten lower. So, the sacrifice was more than worth it. Now that I have equity, I can use that to get into a nicer home if I want. This has always been the way it works.
Yes, homes were more affordable in the past, but the interest rates were insane and you had to save up that 20%. It's not as big of a crisis as reddit will have you believe. The reason housing is up so much is because the homes in desirable areas have skyrocketed. The population continues to climb and there's no more room to build. There's still plenty of affordable housing in outer ring suburbs, people just think they deserve a penthouse in the cities and jobs starting at 100k per year straight out of college.
Was that 50k a year before or after taxes? What year did you buy this house? Did you have kids? Did you have savings? Do you live in an area that doesn't have a ton of competition for those houses on the market? Did you ever have any threat of medical issues costing you thousands and taking out your savings and ability to make payments?
Do you really think there is no room in America to build houses? Is that an honest to God thought that you have?
There's plenty of room to build houses, just far less than there used to be in desirable areas. That's why the highest cost of living areas have exploded in value, on top of many people locking in to super low interest rates during the pandemic. It's called supply and demand. If you actually went to college and paid attention in your economics 1101 class, this concept wouldn't be lost on you. It was $48k salary before taxes on 2016. Yes, I have kids. I had a major surgery in 2015, my insurance covered 80%, my HSA covered the rest. I had 8k, my down-payment. I live in an outer ring suburb and commute 35-45 minutes (at night, it would easily be an hour of I worked 9-5) to downtown for work. My house is now worth about 300k. Easily affordable on my salary and the person i responded to. In fact, they could afford a much, much nicer house than me.
Lol not sure what you tried to send me, but it was immediately removed. I'm guessing you said something you shouldn't have? Anyway, your first half of the message was there and it was accusing me of struggling on my 48k income before taxes with my $1600 mortgage. I did not struggle in the slightest. I grew up poor af bro. My grocery bill is about $100 a week, even with inflation. I meal prep. I save. I am still wearing clothes I bought before I bought my house. Not everyone needs the newest iPhone, camry, or Jordan's to be happy. I'm sorry that you don't know how to use this economy to your advantage, but I promise you that it's 100% your fault, not societies. Good luck with your victim complex and bad attitude though, I'm sure it serves you well!
Was that 50k a year before or after taxes? What year did you buy this house? Did you have kids? Did you have savings? Do you live in an area that doesn't have a ton of competition for those houses on the market? Did you ever have any threat of medical issues costing you thousands and taking out your savings and ability to make payments?
Do you really think there is no room in America to build houses? Is that an honest to God thought that you have?
Don't know why you couldn't see this but it didn't get remove, sorry to disappoint you, common reddit bug.
You didn't have kids in that house with those payments. I grew up poor too kid, I don't spend money on anything unnecessary, but you are just a goofball
I mean, that's a 2 bedroom home in an outer ring suburb. Property taxes are high here, so that drives up the cost more.
So a higher amount financed, higher property taxes, and probably higher interest than when you bought, which requires a higher income. $80k would make that house borderline unaffordable here, which basically means that the median household income can barely afford the cheapest house available.
I also don't disagree that if you can get into a house it can be a great deal, but trying to highlight how that that's increasingly difficult.
Y'all need to stop spouting this misinformation that 20% is what most people do. A two second Google search will tell you less than half of people who buy a home put down 20% the majority are putting down less. I’ve bought 4 houses over my life and I’ve never put down 20%. Reddit thinks 20% is required. It’s not. It’s what you need to avoid the PMI penalty, but the PMI isn’t often that much. On one of my homes it was like $50 a month.
Lol. That's not a starter home. Maybe if you live in San Diego or something. Even then, there's rural areas you can move to. If I transfered to San Diego and kept my current position, id be making 50-75% more money too. So, if you're making 100k combined, you must be in extremely low level positions. If you're both making 100k, you can easily afford a 500k home. Honestly, it's doable (though, not ideal) on 100k total. That's only 20% of your income. You'd be looking at a 3kish payment. Probably about what you're paying in rent if you live out there anyway.
Your not trying, there's ways and most of these generations, simply don't try or even care to listen the advice they're given, a few listen and achieve the goals of buying a home! I've given up trying to help people understand this...
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u/Shot_Investigator18 16h ago
Seriously though everyone’s wants to play struggle olympics. People could afford homes and children on two sometimes one income and now my partner and I make over 100k a year after tax and we have almost no hope of buying a home. Spoiled generation