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Old 02-07-2016, 04:17 PM
 
Location: Ohio
115 posts, read 85,167 times
Reputation: 171

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Considering most jobs around here are paying $10 bucks an hour, who has the money for a $250k house anymore? I'm just going to kick back and live with the folks rent free for the rest of my life. Houses don't interest me anymore. Wages are not good and the economy is unstable. I figure I'm saving at least $400 a month living at home with mom and dad. While other people are wasting 50+% of their net incomes on housing. I spend $0 per month and pay nothing in property taxes. Best of both worlds.

I suggest living in a camper van or living with the folks until the economy recovers. No sense in spending good money with bad wages.

Last edited by zie92mg9z; 02-07-2016 at 04:33 PM..
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Old 02-07-2016, 05:58 PM
 
Location: Aliso Viejo, Orange County, CA
4,736 posts, read 5,936,715 times
Reputation: 3833
Quote:
Originally Posted by zie92mg9z View Post
Considering most jobs around here are paying $10 bucks an hour, who has the money for a $250k house anymore? I'm just going to kick back and live with the folks rent free for the rest of my life. Houses don't interest me anymore. Wages are not good and the economy is unstable. I figure I'm saving at least $400 a month living at home with mom and dad. While other people are wasting 50+% of their net incomes on housing. I spend $0 per month and pay nothing in property taxes. Best of both worlds.

I suggest living in a camper van or living with the folks until the economy recovers.
No sense in spending good money with bad wages.
I guess that makes sense for a certain segment of society, but it would be hellish for most mature, educated, and motivated adults who have other options.
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Old 02-07-2016, 06:06 PM
 
Location: Ohio
115 posts, read 85,167 times
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Quote:
Originally Posted by pacific2 View Post
I guess that makes sense for a certain segment of society, but it would be hellish for most mature, educated, and motivated adults who have other options.
Ok. Then what other options are there? Most of us aren't billionaires and corporate executives. Most of us are paid with declining wages. What good is a house for $250k if your inflation adjusted wages drop by 50% in 20 years? You will not be able to afford it any longer.
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Old 02-07-2016, 06:49 PM
 
11,891 posts, read 14,355,740 times
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It is ridiculous to take such a flatfooted position on this. Say you have a job offer in a place where $250K only gets you a one bedroom condo or two hour commute. But the job will pay you enough to afford a decent house at $450K. Would you turn down the job?
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Old 02-07-2016, 07:13 PM
 
Location: Aliso Viejo, Orange County, CA
4,736 posts, read 5,936,715 times
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Quote:
Originally Posted by zie92mg9z View Post
Ok. Then what other options are there? Most of us aren't billionaires and corporate executives. Most of us are paid with declining wages. What good is a house for $250k if your inflation adjusted wages drop by 50% in 20 years? You will not be able to afford it any longer.
No offense, but you make $14/hour and said you are happy having your parents take care of you. I'm not sure how the discussion pertains to your circumstances.

Most adults would not settle for living like that. They go to school, work, save and strike-out on their own. No, not everyone can afford a $250K house, but most mature people will rent or buy something within their budget without relying upon their parents.
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Old 02-07-2016, 07:58 PM
 
12,404 posts, read 9,195,957 times
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Quote:
Originally Posted by pvande55 View Post
It is ridiculous to take such a flatfooted position on this. Say you have a job offer in a place where $250K only gets you a one bedroom condo or two hour commute. But the job will pay you enough to afford a decent house at $450K. Would you turn down the job?
Is this comment directed at me?
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Old 02-07-2016, 08:07 PM
 
Location: southwestern PA
20,426 posts, read 35,696,560 times
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Quote:
Originally Posted by zie92mg9z View Post
While other people are wasting 50+% of their net incomes on housing.
Where?

Banks will not loan to you if the mortgage is 50+% of your income, to the best of my knowledge.
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Old 02-07-2016, 08:09 PM
 
Location: Aliso Viejo, Orange County, CA
4,736 posts, read 5,936,715 times
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It looks like the median national home selling price is certainly creeping up towards $250K:

L.A./O.C. has nation's lowest homeownership rate - The Orange County Register

Price certainly matters. The median selling price of a single-family home in the L.A./O.C. market was $506,000 in the third quarter, according to the National Association of Realtors. The national median was $229,000, and in ownership champ Grand Rapids it was $155,000.
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Old 02-07-2016, 08:19 PM
 
Location: Aliso Viejo, Orange County, CA
4,736 posts, read 5,936,715 times
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Quote:
Originally Posted by zie92mg9z View Post
Ok. Then what other options are there? Most of us aren't billionaires and corporate executives. Most of us are paid with declining wages. What good is a house for $250k if your inflation adjusted wages drop by 50% in 20 years? You will not be able to afford it any longer.
Some people rent, either alone, with a spouse/partner, or with roommates. They don't live with mommy and daddy.
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Old 02-07-2016, 08:21 PM
 
Location: Niceville, FL
7,275 posts, read 15,279,446 times
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Quote:
Originally Posted by Geneyus View Post
The OP is wise beyond his years. I think he would enjoy the book "The Millionaire Next Door". There are too many people wasting all of their money on status instead of what they need. Why buy a huge house or a brand new car when a similar house a few blocks away or a reliable used car would cost half the price? Oh yeah, pride and status are involved.
A couple blocks away is definitely not as nice of an area since that puts you a couple blocks away from the public housing and decaying singlewides a few blocks beyond that. Plus, not nearly as pedestrian-friendly as my nabe. The nicer area also is often more price sticky downward in an economic downturn- you get people saying 'hey, my job is actually in okay shape, and we can afford Homewood Acres when we couldn't afford to buy there at the peak of the boom'. The value of our house dropped a lot less during the Great Recession than homes in less desirable areas around here did. (It's rebounded since then, but about 15% lower than cracktastic 2007. And still about 80% higher than when we bought in 2001.)

Quote:
Originally Posted by zie92mg9z View Post
Ok. Then what other options are there? Most of us aren't billionaires and corporate executives. Most of us are paid with declining wages. What good is a house for $250k if your inflation adjusted wages drop by 50% in 20 years? You will not be able to afford it any longer.
As long as nominal wages are the same, you can better off buying the house than renting during a period of high inflation assuming you got the mortgage under normal US banking rules. With a plain vanilla 30 or 15 year fixed rate note, P&I remain steady even as inflation increases; in many places T&I have limits on how fast they increase. If we'd kept our original mortgage from 2001, our monthly payment would be about $400 cheaper than what similar homes in the nabe are renting for now. And that was at a 7% fixed interest rate.
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