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Old 04-11-2011, 11:30 AM
 
1,759 posts, read 1,750,418 times
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Quote:
Originally Posted by stan4 View Post
I agree. Why are we crying about 20% when other countries require much high down payments across the board (or straight cash) and their real estate is more expensive?

Save up the down payment and then buy the house. It's not all about me me me now now NOW.
My German friend and her family recently bought in NJ (some of the highest prices around for many years, like NoVa).
I almost fell off my chair when she said they paid almost all of it in cash.

She said this is b/c that's how it's done in Germany.
If you can't pay it upfront you can't really afford the house. Makes sense.
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Old 04-11-2011, 12:14 PM
 
Location: Fairfax, VA
1,449 posts, read 2,801,215 times
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and where did they get this cash? Most people in this area who are currently in a single family were able to do so with profit from a previous home. If you are able to save up almost $100K easily without the help of bonuses or family cash, more power to you. But most people I know who would love to buy up right now are looking at shrinking profits on their current dwelling, daycare payments, funding their own retirements since so many places aren't offering it anymore...it just isn't pretty for average income folks, at least in this area.
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Old 04-11-2011, 12:21 PM
 
Location: Everywhere and Nowhere
14,131 posts, read 27,013,351 times
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Quote:
Originally Posted by Alltheusernamesaretaken View Post
My German friend and her family recently bought in NJ (some of the highest prices around for many years, like NoVa).
I almost fell off my chair when she said they paid almost all of it in cash.

She said this is b/c that's how it's done in Germany.
If you can't pay it upfront you can't really afford the house. Makes sense.
Well that's why Germany's got a 42% home ownership rate and ours is 68%. They like having a huge class of sheeple renters apparantly. Where would you rather live?
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Old 04-11-2011, 12:33 PM
 
1,592 posts, read 3,080,834 times
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Quote:
Originally Posted by CAVA1990 View Post
Well that's why Germany's got a 42% home ownership rate and ours is 68%. They like having a huge class of sheeple renters apparantly. Where would you rather live?
Actually, I think the statistic is that approximately 30 percent of Americans own their homes outright.
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Old 04-11-2011, 01:05 PM
 
Location: among the clustered spires
2,380 posts, read 3,860,194 times
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If folks had to pay entirely cash for their castles the price would likely drop -- but not sure how much.
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Old 04-11-2011, 01:10 PM
 
Location: Everywhere and Nowhere
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Quote:
Originally Posted by Gottasay View Post
Actually, I think the statistic is that approximately 30 percent of Americans own their homes outright.
That's not how the comparable statistic is normally measured. 68% is the generally accepted number in the industry. Most people who have a mortgage consider themselves homeowners as does the government for tax purposes. Your way would be like reporting the percentage of college grads as those who've paid off their student loans.
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Old 04-11-2011, 01:43 PM
 
1,759 posts, read 1,750,418 times
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Quote:
Originally Posted by hilsmom View Post
and where did they get this cash?
Saving their money for years before buying?
Watching their spending and not eating out all the time, living within their means, that kind of thing, I suppose.

*shrug* I think it's smart.
Far too many people want to have their cake and live in a castle too. It wouldn't hurt to live within our means, really.

I have absolutely no idea for sure, but I'd imagine the market in that situation is not saturated with 3,000+ sq foot homes with ridiculous master baths and "man caves."
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Old 04-11-2011, 01:45 PM
 
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Quote:
Originally Posted by CAVA1990 View Post
Well that's why Germany's got a 42% home ownership rate and ours is 68%. They like having a huge class of sheeple renters apparantly. Where would you rather live?
I'm not sure what you mean by "sheeple renters."
I'm familiar with the term "sheeple" but not sure how it would apply.
We've been renting for our 13 years now, b/c we move a lot and the time/market hasn't been right to buy. Are we sheeple for being smart about it?
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Old 04-11-2011, 02:16 PM
 
Location: Fairfax, VA
1,449 posts, read 2,801,215 times
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Quote:
Originally Posted by Alltheusernamesaretaken View Post
Saving their money for years before buying?
Watching their spending and not eating out all the time, living within their means, that kind of thing, I suppose.

*shrug* I think it's smart.
Far too many people want to have their cake and live in a castle too. It wouldn't hurt to live within our means, really.

I have absolutely no idea for sure, but I'd imagine the market in that situation is not saturated with 3,000+ sq foot homes with ridiculous master baths and "man caves."
Again, in theory, this sounds all well and good. But then there is reality.

I wish I lived in this 3K+ sf castle you speak of - actually, scratch that, I find those pretty wasteful and would be content with somewhere between 1800-2000 sf. We have a MAYBE 1000 sf TH that we bought in 2003. LUCKILY we are still up on it and not in negative equity. However, it continues to lose value and it isn't like we have a ton of spare change laying around. I want to move up, but looking at what I now think we might get for our home, our down payment for a VERY modest single family (NOT these McMansions you all speak of, I'm talking rancher or Cape Cod) will be closer to 10%. We make decent money, but it isn't like we can easily put aside thousands a month in JUST savings, not with the cost of daycare, food, etc. etc. We could cut our retirement savings, but THAT isn't the best plan. And a mortgage payment would be about equal to renting, so renting isn't going to allow people to save for that dow payment, either.

If people can't leave their modest starter homes and move up into modest single families, there will be nowhere for first time homebuyers to go. Which then completely kills the new construction market. Again, vicious cycle. They need to tread lightly with this proposal.

Credit-worthiness should determine how many options you have.
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Old 04-11-2011, 02:44 PM
 
1,759 posts, read 1,750,418 times
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Quote:
Originally Posted by hilsmom View Post
I wish I lived in this 3K+ sf castle you speak of - actually, scratch that, I find those pretty wasteful and would be content with somewhere between 1800-2000 sf.
Sorry, let me clarify that I too find them wasteful. The 2000 sq ft we have now is just about doing me in!

Who cleans these huge places, anyway?? I know, people hire a cleaning service a lot these days. To me, if I can't clean my own house, my house is too damn big.
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