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Old 05-13-2010, 12:29 PM
 
262 posts, read 519,794 times
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Quote:
Originally Posted by tryingtomakeitinCT View Post
I agree with many of your points and yes, if you have 20% down with little debt you can very easily get approved for a mortgage. However, in this state these days, $230k is a starter home in most cities. The cost of renting is OUTRAGEOUS. So for someone to have a family and rent it is very hard to save money and that is living frugally. My statistics for FHA and CHFA come from the majority of my friends...that is how they bought their homes. Most people I know who do not have family to give them a down payment and who are starting out on their own do use CHFA. As for finding work in other states where the COL and housing is lower, there are jobs. However the jobs pay a lot less than CT. I have been doing my research and in many of those places I could get a job making $1, yes one dollar above minimum wage and easily afford to buy my own place. Will it be a place like Greenwich?? NOPE. But will I be able to sit back and not worry so much about trying to keep up financially, YES. But again, that is a different topic. I still just do not see how a less than $10k increase in income (in 8 yrs?) is appropriate for such a high inflation of home prices in this state.

Ok, so your opinion is based off an informal survey of friends and family. I don't know anyone who has used an FHA/CHFA loan, but that doesn't mean I can say "most people in CT don't use FHA/CHFA loans" because an informal survey isn't good empirical evidence. And it's not that a $10k increase in income over 8 years is appropriate to current home prices. That would be the national (some would say global) housing bubble. I've been trying to convey to you that it's not just CT where home prices increased separate from incomes. Some people can move around because their jobs are not tied to location. But in a lot of careers you have to go where the jobs are, especially if you want to advance in your chosen field. If that wasn't the case then Greenwich wouldn't be Greenwich. People don't live there for the healing waters of Long Island Sound.
It's hard to save money. I know it. But we wouldn't be in this bubble situation if everyone put 20% down. You aren't owed a house any more than I am, not even a starter house. If you are spending 1/3 on your housing now you should be able to tuck money away into a house fund.
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Old 05-13-2010, 12:45 PM
 
112 posts, read 207,784 times
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Quote:
Originally Posted by renovating View Post
Where can you easily afford to live making $9.00 an hour?
Not in the best area but certainly not a place with a lot of crime either. It's mostly in states down south and in the midwest. It's def not CT and isnt as refined as this state is which is both good and bad. But the plus is not having to bust my rear to make it. You take the good with the bad anywhere you go and if CT was as affordable as it was say, 10yrs ago, (and I liked the cold and snow) then I wouldn't mind the state as much as I do. I don't hate it but I dont make a lot of money either and am single and it's hard for people like me in this state.
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Old 05-13-2010, 01:04 PM
 
112 posts, read 207,784 times
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Quote:
Originally Posted by Appias View Post
Ok, so your opinion is based off an informal survey of friends and family. I don't know anyone who has used an FHA/CHFA loan, but that doesn't mean I can say "most people in CT don't use FHA/CHFA loans" because an informal survey isn't good empirical evidence. And it's not that a $10k increase in income over 8 years is appropriate to current home prices. That would be the national (some would say global) housing bubble. I've been trying to convey to you that it's not just CT where home prices increased separate from incomes. Some people can move around because their jobs are not tied to location. But in a lot of careers you have to go where the jobs are, especially if you want to advance in your chosen field. If that wasn't the case then Greenwich wouldn't be Greenwich. People don't live there for the healing waters of Long Island Sound.
It's hard to save money. I know it. But we wouldn't be in this bubble situation if everyone put 20% down. You aren't owed a house any more than I am, not even a starter house. If you are spending 1/3 on your housing now you should be able to tuck money away into a house fund.
I never claimed it was a "formal" survey, it's the area I live in and the people I know. Most of what I write is an opinion...as is the majority of posts on this site....some can be backed up with statistics....some are from the poster's own reality. As someone who has grown up in the north-eastern half of the state my reality is going to be completly different from someone living in say, Fairfield County. I also know that home prices have increased seperate from incomes in all states...but I have been doing my research and it's not nearly as high as CT...esp not now. The housing bubble has burst in the majority of the states....not CT. CT has enough people with money coming in to allow the housing market staying inflated because there is a demand for housing. It has also kicked many people out of the market because of this. Lets face it, 10yrs ago it was much more affordable to live in this state. In that amount of time I have seen middle class families go to lower middle class because they couldnt keep up with the inflation of this state (taxes, utilities, groceries, etc). I have also seen people forced out of this state due to the inflation of COL while their salaries only increased 3%/per year. But again that is what I have seen and may be completly different from what someone else has experienced. Not everyone is well off in this state and everyone has their own circumstances. To say saving 20% is easy could be easy to you based on your income, your cost of living, when you got into the market, etc. For most people I know it is not and most people I know are struggling. As for Long Island Sound...personally I love the sound...would love to live near the sound. So why do people move to Greenwhich then??? If they can't appreciate the beauty of their surroundings then maybe they shouldn't be there.

Never did I say I was owed a house. In fact, I live in an apartment because I KNOW I couldn't afford most of the real estate here. When the lenders were financing everyone and anyone for ridiculous amounts I was offered a loan for $300k. Did I take it??? NOPE! I used my head and did the math and realized at what I make I couldn't afford that much and geez if I'm not paying interest for the first 5yrs how is the bank making money they will have to get it somewhere...and oh well if it's a variable rate then they can raise it anytime and I'd be SOL. So no, I am not owed a house and I used my head so don't include me in any part of the "housing crisis"....I, unlike many many others saw this coming from a mile away.

My point was that with the inflation in CT and the rates of pay it is hard to save money these days. Maybe it will get better...maybe housing will once again be affordable in this state and people like me just starting out will be able to get back into the market (and not over our heads). Honestly, in my opionion...I dont see that happening.
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Old 05-13-2010, 01:21 PM
 
Location: The brown house on the cul de sac
2,081 posts, read 4,130,348 times
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Quote:
Originally Posted by tryingtomakeitinCT View Post
Not in the best area but certainly not a place with a lot of crime either. It's mostly in states down south and in the midwest. It's def not CT and isnt as refined as this state is which is both good and bad. But the plus is not having to bust my rear to make it. You take the good with the bad anywhere you go and if CT was as affordable as it was say, 10yrs ago, (and I liked the cold and snow) then I wouldn't mind the state as much as I do. I don't hate it but I dont make a lot of money either and am single and it's hard for people like me in this state.

Can you tell me a specific town and state where you can easily afford to live on $9.00 an hour?
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Old 05-13-2010, 01:29 PM
 
262 posts, read 519,794 times
Reputation: 127
Quote:
Originally Posted by tryingtomakeitinCT View Post
I never claimed it was a "formal" survey, it's the area I live in and the people I know. Most of what I write is an opinion...as is the majority of posts on this site....some can be backed up with statistics....some are from the poster's own reality. As someone who has grown up in the north-eastern half of the state my reality is going to be completly different from someone living in say, Fairfield County. I also know that home prices have increased seperate from incomes in all states...but I have been doing my research and it's not nearly as high as CT...esp not now. The housing bubble has burst in the majority of the states....not CT. CT has enough people with money coming in to allow the housing market staying inflated because there is a demand for housing. It has also kicked many people out of the market because of this. Lets face it, 10yrs ago it was much more affordable to live in this state. In that amount of time I have seen middle class families go to lower middle class because they couldnt keep up with the inflation of this state (taxes, utilities, groceries, etc). I have also seen people forced out of this state due to the inflation of COL while their salaries only increased 3%/per year. But again that is what I have seen and may be completly different from what someone else has experienced. Not everyone is well off in this state and everyone has their own circumstances. To say saving 20% is easy could be easy to you based on your income, your cost of living, when you got into the market, etc. For most people I know it is not and most people I know are struggling. As for Long Island Sound...personally I love the sound...would love to live near the sound. So why do people move to Greenwhich then??? If they can't appreciate the beauty of their surroundings then maybe they shouldn't be there.

Never did I say I was owed a house. In fact, I live in an apartment because I KNOW I couldn't afford most of the real estate here. When the lenders were financing everyone and anyone for ridiculous amounts I was offered a loan for $300k. Did I take it??? NOPE! I used my head and did the math and realized at what I make I couldn't afford that much and geez if I'm not paying interest for the first 5yrs how is the bank making money they will have to get it somewhere...and oh well if it's a variable rate then they can raise it anytime and I'd be SOL. So no, I am not owed a house and I used my head so don't include me in any part of the "housing crisis"....I, unlike many many others saw this coming from a mile away.

My point was that with the inflation in CT and the rates of pay it is hard to save money these days. Maybe it will get better...maybe housing will once again be affordable in this state and people like me just starting out will be able to get back into the market (and not over our heads). Honestly, in my opionion...I dont see that happening.
1. When you phrase something as a statement without a qualifier you are putting it out there as fact. That is why many people use the acronym IMHO which stands for "in my humble opinion" in their posts.
2. CT was expensive 10 years ago and it's expensive now. What makes you think that inflation is worse here than it is elsewhere?
3. Saving 20% is not easy. If you misread my post and believe I said it was then you missed my point entirely and should go back and reread it.
4. Why do people move to Greenwich? Is that a serious question? Ok, I'll bite. People move to Greenwich because it is the closest town in CT to NYC. The property taxes in Greenwich are significantly less than they are once you cross over into NY state. On a side note, why shouldn't they be there? Do you think that because they bought someplace where they may not "appreciate the beauty of their surroundings" that they don't deserve to live there?
5. You didn't say that you were owed a house and I didn't say you did. My point was that saving is hard, but it is necessary because you aren't owed a house. Nobody is. People like you who are just starting out are in the scrappy save money and advance my career phase, not the home buying phase.
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Old 05-13-2010, 04:05 PM
 
112 posts, read 207,784 times
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Quote:
Originally Posted by renovating View Post
Can you tell me a specific town and state where you can easily afford to live on $9.00 an hour?
If I knew that you were serious I would. It's easy to find you just have to do your research. Think of places with low COL and where housing prices have tumbled....there are many areas of the US with houses and condo's under $50k and if you look up their local jobs website, you will see how much jobs are offering and how many are available. Then you would check out the crime statistics. If you really are serious PM me with a state and I bet I can find something. Of course it won't be like CT but sometimes you have to do what you have to do to survive.
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Old 05-13-2010, 04:24 PM
 
112 posts, read 207,784 times
Reputation: 59
Quote:
Originally Posted by Appias View Post
1. When you phrase something as a statement without a qualifier you are putting it out there as fact. That is why many people use the acronym IMHO which stands for "in my humble opinion" in their posts.
2. CT was expensive 10 years ago and it's expensive now. What makes you think that inflation is worse here than it is elsewhere?
3. Saving 20% is not easy. If you misread my post and believe I said it was then you missed my point entirely and should go back and reread it.
4. Why do people move to Greenwich? Is that a serious question? Ok, I'll bite. People move to Greenwich because it is the closest town in CT to NYC. The property taxes in Greenwich are significantly less than they are once you cross over into NY state. On a side note, why shouldn't they be there? Do you think that because they bought someplace where they may not "appreciate the beauty of their surroundings" that they don't deserve to live there?
5. You didn't say that you were owed a house and I didn't say you did. My point was that saving is hard, but it is necessary because you aren't owed a house. Nobody is. People like you who are just starting out are in the scrappy save money and advance my career phase, not the home buying phase.
1. Okay, okay...IMHO the people I know have used FHA/CHFA to buy their first homes and or condos. Here is a press release about FHA in CT. Granted it is older but it does reference "many people" in CT use FHA because they can afford monthly payments but not a high down payment. News Release in Connecticut - HUD
2. In the area of the state I live in...IMHO...CT was a LOT more affordable 10yrs ago. For instance, a family member of mine bought a 1200+ sq ft townhouse in Colchester for $70k sold it recently for over $140k.
3. I understand that you and I agree that saving 20% is not easy. It's also harder with the inflation that has happened in CT (For example, do you get your electric from the provider here...the rates have almost tripled).
4. Yes, that was a serious question. I know many people from Greenwhich commute to NYC but personally I also thought it was for the scenery. I know people in Southington who commute to NYC...I know people in the Hartford area who commute to NYC. I personally think that living that close to the ocean is a plus...which is why I was dumbfounded as to why people wouldn't move there for views of the coast. Certainly the people who live there made that choice and deserve to live where they live. It just shocks me that people would live there and not bask in the beauty of their surroundings. Ex: sunset at Long Island Sound


5. You are right about that. I am in the trying to save phase of my life..even though I have had three big promotions in my career. However, the money made from those promotions have not kept up with the COL in CT and that's what's frustrating.
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Old 05-13-2010, 05:21 PM
 
8,780 posts, read 16,284,683 times
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Quote:
Originally Posted by renovating View Post
Can you tell me a specific town and state where you can easily afford to live on $9.00 an hour?
A third of the state of PA would probably fit the criteria. Not for me though..........
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Old 05-13-2010, 06:26 PM
 
Location: Coastal Northeast
15,777 posts, read 22,061,488 times
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Quote:
Originally Posted by renovating View Post
Where can you easily afford to live making $9.00 an hour?
Uh, pretty much anywhere away from the two coasts or a large city.
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Old 05-14-2010, 06:22 AM
 
Location: New England
8,155 posts, read 18,230,120 times
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Quote:
Originally Posted by tryingtomakeitinCT View Post
The household income was $53k (total-not per person), add in the cost of renting in CT, utilities, groceries, etc and where does a household (esp if they have young children) save up 20% to put down on a house?
If you search this forum, this subject as already been discussed at length, very recently. I outlined an approach. However, people these days simply want it given to them if they think it'll take more than a few months.

You save, you scrimp that's how. I put more than 20% down on my home and it took me 7 years to save it. I lived in a rental in Meriden.

Quote:
Originally Posted by tryingtomakeitinCT View Post
However, in this state these days, $230k is a starter home in most cities.
I think you need to do two things.

1. Get the idea of starter to larger home out of your head. That whole concept is new and has aged and thankfully is starting to go to the wayside. I could easily sell my home and move into a larger home with the equity...However, we are comfortable here and if the original owner could raise 4 kids in this house and live here till his end...what makes us so special to think we NEED that much more? I'd rather have the home paid off in 10 years then move into a larger house and have another mortgage to pay off for 30 years. (BTW the word Mortgage literally means "death grip" in it's latin root.)

2. Lower your expectations of what you call a "starter" home. You can get a nice house here in Manchester for $175K. And/or you may have to purchase something that needs TLC. Basically you are walking into a restaurant broke and asking for a fat steak. You can't have it both ways, so you've got to find other ways to make it work. Earn more money, build sweat equity etc.

Or you can look to Obama for a handout, just know that those handouts are not free and I'm not comfortable with the government holding my house note.

Quote:
Originally Posted by tryingtomakeitinCT View Post
I have been doing my research and in many of those places I could get a job making $1, yes one dollar above minimum wage and easily afford to buy my own place.
Yea right...that's why so many people in those areas are in forclosure when they could just go to work for McDonalds and live large.

Good luck with that...I hope the landing isn't too harsh.

Quote:
Originally Posted by tryingtomakeitinCT View Post
1. Okay, okay...IMHO the people I know have used FHA/CHFA to buy their first homes and or condos. Here is a press release about FHA in CT. Granted it is older but it does reference "many people" in CT use FHA because they can afford monthly payments but not a high down payment. News Release in Connecticut - HUD
Who do you think FHA is? It's the government! Do you people not realize what's happening right before your eyes? The government is taking control of everything; food, housing, banks, manufacturing. Remember the borrower is SLAVE to the lender.

What percentage of mortgages do you think the government controls right now?

20%?


30%?

35%?

.
.
.
.
.
How about over 90%! Yes, that much. I can't remember if it was 93 or 96% in total but it's one of the two figures.

Freddie and Fannie alone hold over 50% of the outstanding mortgage debt right now and that was "nationalized" in 2008.

Maybe you can't afford things BECAUSE of the government. Just something to think about.
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