2022 Real Estate Observations (Boston, Marlborough, Lexington: calculator, legally, safety)

[GeoffD]

Originally Posted by BostonMike7

Then if we are talking first time buyer, I would imagine someone coming up with a $300K down payment is using non-W2 income for that. Investment growth, stock RSU's as part of compensation, cashing out at the right time in the crypto craze last year, etc.

Of course there are the other methods as well such as inheritances and gifts. A 35 year old would likely have parents in their 60's and the likelyhood of both passing is there. I have a couple of peers who had such a thing happen in their late 30's where they sold off their parents paid-for property and split the proceeds with a sibling.

Saving $300K on strictly W2 income would be very impressive.

Yep. I bought my Winchester house using the money from getting a tech startup sold. I was ~ 35 at the time. The place I bought in 1988, I sold after the S&L meltdown at 60 cents on the dollar. That was the high interest rate era. 5% down. PMI. I had to accelerate payments for several years to get into a position to sell it. Even then, I had to borrow against a paid-for car to settle up at the closing. This was long before short sales were possible. It was a valuable life lesson. Everyone here seems convinced that real estate only goes up.

[matrix5k]

Originally Posted by GeoffD

Everyone here seems convinced that real estate only goes up.

In the long run, yes. Just like index funds.

[GeoffD]

Originally Posted by matrix5k

In the long run, yes. Just like index funds.

Sure, but for most people, they have to commute to a brick & mortar building. Most people change jobs. In metro Boston, that can create an impossible commute. It’s not like my 401(k) where I’m going to contribute to it for 40 years before touching it.

[id77]

Originally Posted by simplexsimon

UTMA account where you're the custodian.

You can do this with bank accounts too, especially if rates keep going up the interest will be more meaningful. Explaining why stock and bond prices go up and down might be for later.

This is a big one. The month our kid was born a UTMA was set up and money invested within it. Compounding works wonders over 20 years.

I once read an article that if each person born in the US had $20,000 put into an account invested in 1-2 ETFs and not withdrawn until retirement, the average balance after 65 years would be over $1.2 million. It was a bit of an out-there idea to solve Social Security, but the underlying principal of compounding remains the same.

[johngolf]

Math 101. With 7% interest, compounded money doubles in 10 years. With 10% interest, compounded money doubles in 10 years.

[MtPleasantDream]

Originally Posted by johngolf

Math 101. With 7% interest, compounded money doubles in 10 years. With 10% interest, compounded money doubles in 10 years.

7.27 years

[yesmaybe]

https://www.redfin.com/MA/Marlboroug...home/179133924

Mentioned this complex before in Marlborough... they got 4 units sold out of 11. This is the fifth and it's not selling. 185 DOM.

[matrix5k]

Originally Posted by yesmaybe

https://www.redfin.com/MA/Marlboroug...home/179133924

Mentioned this complex before in Marlborough... they got 4 units sold out of 11. This is the fifth and it's not selling. 185 DOM.

585k for a condo in Marlborough? No surprise it's not selling.

[MtPleasantDream]

Originally Posted by matrix5k

585k for a condo in Marlborough? No surprise it's not selling.

The high school is scored 3/10?
I thought it is an average school district, not supposed to be that bad.

[GeoffD]

Originally Posted by MtPleasantDream

The high school is scored 3/10?
I thought it is an average school district, not supposed to be that bad.

The demographics aren’t awful. 7% poverty rate. 40% college educated adults. It’s 1/3 English not the primary language at home so ESL and other special education may drag down the rating. I imagine COVID-19 had a big impact with non-English speaking parents. They rely more on the schools not being broken.