Boston Globe article-is buying a home in boston worth it? (Cambridge: sale, real estate) - Massachusetts (MA) - City-Data Forum

Whatsnext75 · 10-30-2015, 09:40 AM

https://www.bostonglobe.com/magazine...cCP/story.html

Thoughts on this article? I think it's difficult to say exactly what will happen with Boston Real estate in the future, but I found the following to be true:

-Boston Real estate is overpriced for what you get

-It's very difficult for young people to buy a home in the Boston area these days

-People who buy now will not be turning a huge profit on their home anytime soon

-I still believe buying is better than renting with the way rent prices are unless you are getting an incredibly good deal somewhere and don't have a desire to own.

-Middle class housing is somewhat non-existent, seems like they are catering to lower income and middle income is again being overlooked.

I recently read that if your household income in Boston is over 138k you are considered 'upper class.' This seem like a low number given that many people who make this amount of money, have a family, a home or even rent are struggling.

All of the jobs in the state seem to be in Boston/Cambridge or somewhere in this area making the area so expensive to buy in. No one wants a 2 hour commute, but is that what will have to happen? As much as people don't want a two hour commute people also don't want to be house/rent poor.

Dm84 · 10-30-2015, 09:48 AM

The commutes will get longer. Eventually everyone will reach their breaking point and employers that have the ability will have to move outside 128.

Whatsnext75 · 10-30-2015, 09:52 AM

Yeah...i think a HUGE problem solver is to move companies out of Boston. I would be perfectly happy if my employer opened an office outside of Cambridge. It's a shi*Tshow. But people come to cambridge and boston for jobs because that's where the jobs are.

Boston_Burbs · 10-30-2015, 09:56 AM

I don't like the idea they article puts out that a house is a way to make money. Yes, people made money on their houses but buying a house with the hope to make money off of it is short sighted and leads to even more financial issues in the long run, IMO.

The greatest generation bought their smaller homes, lived in them for long times. Yes Boston realestate is expensive but you have access to higher salaries than you do in the ex-burbs but there are ways to offset the housing costs.

Since moving closer to Boston and paying $140k+ more for a house, I have reduced what I pay for gas from $400 to $80/mo + a $75 T pass (which will be paid by my employer within a year), sold a car and cut car insurance in half, Ditched the septic, traded oil for natural gas, live in a warmer climate, travel the fraction of distance I used to for amenities, and am healthier due to the fact my commute involves walking or biking instead of sitting in the car.

vtecluder617 · 10-30-2015, 10:00 AM

Quote:

Originally Posted by Whatsnext75

I recently read that if your household income in Boston is over 138k you are considered 'upper class.' This seem like a low number given that many people who make this amount of money, have a family, a home or even rent are struggling.

My wife and I make a combined 155K and I wouldn't consider ourselves "upper class". Not even remotely. We have a modest home, both drive Hondas, and although we are comfortable we're not able to save as much as we like. Which is a big reason why we're leaving the state. We want a bigger home but simply can't afford it within an hour of Boston and with good schools.

Dm84 · 10-30-2015, 10:01 AM

Quote:

Originally Posted by Boston_Burbs

I don't like the idea they article puts out that a house is a way to make money. Yes, people made money on their houses but buying a house with the hope to make money off of it is short sighted and leads to even more financial issues in the long run, IMO.

The greatest generation bought their smaller homes, lived in them for long times. Yes Boston realestate is expensive but you have access to higher salaries than you do in the ex-burbs but there are ways to offset the housing costs.

Since moving closer to Boston and paying $140k+ more for a house, I have reduced what I pay for gas from $400 to $80/mo + a $75 T pass (which will be paid by my employer within a year), sold a car and cut car insurance in half, Ditched the septic, traded oil for natural gas, live in a warmer climate, travel the fraction of distance I used to for amenities, and am healthier due to the fact my commute involves walking or biking instead of sitting in the car.

Not everyone can afford to make that move, and that is the problem.

Parsec · 10-30-2015, 10:17 AM

Quote:

Originally Posted by Whatsnext75

Thoughts on this article? I think it's difficult to say exactly what will happen with Boston Real estate in the future, but I found the following to be true:

-Boston Real estate is overpriced for what you get

How can you claim this is a true statements? You are just stating your opinion. Someone else might feel they are getting tremendous value for their money. When you buy a house, you're not just buying square footage. You also get proximity to the beach, a vibrant walkable downtown, good schools, or whatever else may be important to you.

The biggest takeaway for me: Young families who are buying their first home today can't rely on their house to be part of their retirement fund. Do the math. A typical middle to upper middle class family earning $150-200k/year still needs to save around $30-40k/year towards retirement to continue the same lifestyle in retirement. If it sounds like a lot of money, it is! We can't rely on large gains on the sale of our house and we can't rely on social security. We don't have pensions either. It's on us to save up the $5+ million in IRAs and 401ks that we need to retire comfortably in 2045.

Parsec · 10-30-2015, 10:24 AM

Quote:

Originally Posted by vtecluder617

My wife and I make a combined 155K and I wouldn't consider ourselves "upper class". Not even remotely. We have a modest home, both drive Hondas, and although we are comfortable we're not able to save as much as we like. Which is a big reason why we're leaving the state. We want a bigger home but simply can't afford it within an hour of Boston and with good schools.

I think she means "upper middle class." Upper class is generally not directly correlated to your income and refers to wealth. E.g. someone in the upper class might be defined as having a net worth over $1 million in investable assets (not including their primary residence and retirement savings). A young surgeon earning $300k/year with school loans and a $1 million mortgage would probably not be considered upper class yet.

Whatsnext75 · 10-30-2015, 10:29 AM

It's true to me and a lot of other people Parsec. Yes schools and education are important but people should be able to have that and then some. Many arent getting the 'then some' in trying to provide a good education to their children. Is that a fun way to live? I just dont know. Even if you do spend everything you have on a home in let's say, Weston which ranks high, who is to say your kid will end up performing to your expectations and going to an amazing college and ending up having an amazing career. There's just a lot of factors that go into it. It seems like everyone's excuse for these high prices are, oh well the schools are good.

Look around the country-Boston real estate IS overpriced and that's not just my opinion. Horrible commutes, not everyone is getting a 150k salary despite what this board thinks.

'I don't like the idea they article puts out that a house is a way to make money. Yes, people made money on their houses but buying a house with the hope to make money off of it is short sighted and leads to even more financial issues in the long run, IMO.'

I dont think the article was saying that. If anything I thin they were saying, hey buy a house if you want one, but dont expect to get any financial gains from it.

The greatest generation bought their smaller homes, lived in them for long times. Yes Boston realestate is expensive but you have access to higher salaries than you do in the ex-burbs but there are ways to offset the housing costs.

It really depends on the job. I see a lot of people here referring to engineering/software developer salaries all the time. Since when is everyone in Boston an engineer? Why do people always assume that anyone working in Boston has a 'high' salary?

Whatsnext75 · 10-30-2015, 10:32 AM

Quote:

Originally Posted by Parsec

I think she means "upper middle class." Upper class is generally not directly correlated to your income and refers to wealth. E.g. someone in the upper class might be defined as having a net worth over $1 million in investable assets (not including their primary residence and retirement savings). A young surgeon earning $300k/year with school loans and a $1 million mortgage would probably not be considered upper class yet.

I'm just quoting what i read in an article. I cant find the article now. Anyways, in Boston i think anything between 100k and 150k would be middle class still.