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Old 10-11-2015, 07:12 PM
 
1,246 posts, read 919,712 times
Reputation: 1433

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Quote:
Originally Posted by mysticaltyger View Post
Yep. I'd say the one exception is health care...but even those costs could be brought down significantly if we lived healthier lifestyles.

Americans have no clue how much people in other rich countries pay for things. Yes, they have the guaranteed health care, but they pay through the nose for a lot of other stuff.
I do a lot of work in Canada. 6 pak of beer, $12 easy for Molson. They say they have free health care but they really dont. They pay for it every day of their lives. I had a new $32k Tacoma, the exact truck in Canada was $45k.

I love the Bernie Sandars fan boys that want free healthcare/education/equal pay.....In the minimal chance any of that ever gets passed, everything you buy on a daily basis would increase 40%, your taxable income would breach 40% minimum, adn there would be no military. Now Sandars would only have hte power to persuade congress adn senate to pass his socialists agendas and most democrats wouldnt even support him. So he would in effect be the most useless president ever.
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Old 10-11-2015, 07:27 PM
 
Location: Denver
9,224 posts, read 15,903,815 times
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Have parents with money been mentioned?

The guy across the street from me had his parents buy him a 500k house for his 30th birthday....with extra cash for remodeling the kitchen!
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Old 10-11-2015, 07:54 PM
 
1,246 posts, read 919,712 times
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Quote:
Originally Posted by Mach50 View Post
Have parents with money been mentioned?

The guy across the street from me had his parents buy him a 500k house for his 30th birthday....with extra cash for remodeling the kitchen!
Theres nothing wrong with that. If you could help your kids with that kind of power you would. I do see it often though. Theres a dude that got a $400k home in our neighborhood. Hes early 30's going back to college, but I hear he never goes and just plays video games all day. At least property taxes are being paid by someone.
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Old 10-11-2015, 08:15 PM
 
Location: Denver
9,224 posts, read 15,903,815 times
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Quote:
Originally Posted by sammy87 View Post
Theres nothing wrong with that. If you could help your kids with that kind of power you would. I do see it often though. Theres a dude that got a $400k home in our neighborhood. Hes early 30's going back to college, but I hear he never goes and just plays video games all day. At least property taxes are being paid by someone.
You just contradicted yourself...there is something definitely wrong with that LOL.
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Old 10-11-2015, 08:48 PM
 
Location: Texas
3,942 posts, read 3,241,693 times
Reputation: 6712
Quote:
Originally Posted by Mach50 View Post
Have parents with money been mentioned?

The guy across the street from me had his parents buy him a 500k house for his 30th birthday....with extra cash for remodeling the kitchen!
We sold a house in 2010 for just under $400K cash to a couple who bought it for their 21 year old son and his girlfriend.
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Old 10-12-2015, 08:43 AM
 
Location: Denver
9,224 posts, read 15,903,815 times
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Quote:
Originally Posted by Texas Ag 93 View Post
We sold a house in 2010 for just under $400K cash to a couple who bought it for their 21 year old son and his girlfriend.
Yup, there are quite a few "no note" owners out there.
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Old 10-12-2015, 09:14 AM
 
Location: Way up high
14,115 posts, read 20,823,929 times
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A lot of people are moving here from places that are more expensive to buy so they have a large cash down pymt.

Also, making 6 figures helps. Bf and I combined are well into it but we prefer to rent at a nice place and have all issues taken care for us.
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Old 10-12-2015, 05:07 PM
 
Location: Seattle
1,366 posts, read 2,922,604 times
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Quote:
Originally Posted by blackmet View Post
The house we bought was sold to the last owners in 1989. For $62,500 dollars. In today's dollars, that's about $91,000.00.
Mortgage rate in 1989 was around 10.5% for a 30yr fixed. If you model a 10% down in 1989, with 1.25% property tax and let's say, 300/yr in homeowners insurance, your payment will be $605. BLS.gov says $605 is $1,163 in 2015.

Equivalent monthly payment assuming same variables and an insurance rate that tracks inflation would give you around a $210,000 house, assuming 4% 30 year fixed/10% down/1.25% tax rate.

Low rates really do matter a lot for this kind of thing - people tend to buy the monthly payment (coupon payment) rather than the underlying value of the asset.

Of course it is the case that housing has outpaced inflation in most areas (I would be really surprised if the house you are talking about is only $210,000 today, but even that is tricky to calcuate when you factor in improvements to the property), even if you just do a straight inflation calculation on the monthly coupon payment. But it's also the case that taking the value of the asset + inflation will lead you to a very skewed perspective on what the value of property should be.

Housing is definitely high relative to historical averages. But another relevant point is wages at the top 25% have also outpaced inflation. This might also trigger outsized gains in real estate - people at the bottom third of the economic spectrum tend to not purchase property. That triggers an entirely separate discussion on wealth divide, but it also brings up the point that inflation may not be a particularly accurate metric, especially at the higher end of the market.
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Old 10-13-2015, 07:25 AM
 
171 posts, read 483,696 times
Reputation: 139
I'm very surprised by the replies in this thread assuming people need inheritances, equity from a sale in California, etc.

OP - if you make $100K per year and cannot afford a $200K home, then you are choosing to fund your "living freely" lifestyle instead of a home purchase. Simple as that.

My wife and I currently live in a home we bought for $420K six years ago when we were in our late-20s. How did we do it? We sacrificed and saved. We lived in a crap-hole apartment for 5 years because the rent was cheap. We had equally crap-tastic cars (my wife's didn't even have 4th and 5th gears) that each had over 100K mileage so we didn't have a car payment. We lived like this for ~5 years while saving and saving. We eventually reached $100K in savings, which we used as a down payment on our current home. We didn't have help from parents, or an inheritance. Done.

One more note: on a fixed mortgage, your payment stays the same, but your income will hopefully go up over time. Hence, it might be tight the first few years, but you'll be able to live a more lavish lifestyle after a few years. Or, like us, put the extra $$ towards a new home, a second home, etc.
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Old 10-14-2015, 05:09 PM
 
387 posts, read 271,592 times
Reputation: 697
Realistic things over which you have control:
1. Don't have car payments.
2. Don't have kids, or at least don't have kid-related expenses (family caretakers vs daycare, breastmilk not formula, buy everything used on Craigslist, public schools, etc).
3. Don't eat at restaurants.
4. Make above-average income.
5. Have already done all of the above long enough to build substantial equity
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