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OK...can you say living beyond your means.......We have got to learn to live within our means....The coach did not need that much "house". When you buy a home, you've got to have within the back of your mind....if I loose my job, can I still go to Walmart/Target and "swing the house payment"....
Just keeping it real...
OK...can you say living beyond your means.......We have got to learn to live within our means....The coach did not need that much "house". When you buy a home, you've got to have within the back of your mind....if I loose my job, can I still go to Walmart/Target and "swing the house payment"....
Just keeping it real...
Hold on a second. He was earning $700K and bought a home for $1.368M; In other words, his annual salary was over half of his house price. How many people can claim that? Also, a $1.368M home in northern San Diego County in 2007 is probably a 3000-3500 square foot home - not as elaborate as you think.
He later took a lower paying job - a 50% cut. OK, how many people buy a house based on an assumption that they'll take a 50% pay cut? Probably not many, why? Because most people don't take 50% pay cuts. Most people get a increase in salary every year and their house payment as a percentage of their salary becomes smaller and smaller.
He also sold it at a loss - he took the hit, not me and not us.
Finally, you are correct that the coach didn't "need" that much house but that is irrelevant. He wanted that much house and his purchasing decision is based on want. If purchasing decisions were based on need, we'd all be living in 500 square foot homes somewhere.
OK...can you say living beyond your means.......We have got to learn to live within our means....The coach did not need that much "house". When you buy a home, you've got to have within the back of your mind....if I loose my job, can I still go to Walmart/Target and "swing the house payment"....
Just keeping it real...
Man, sometimes I can't tell if it is sarcasm or a real POV...
If that were the case then not mnay could afforsd a decent home when looking at this guys salary.Mnay renting with leases would be living in tents also.
It's not that he couldn't afford the payment ...... it's that he no longer was in a position to live there
People make vast assumptions about what people can/cannot afford.
Fact of the matter is the price of the home took a drastic tumble making it impossible for him to sell it for what the loan amount was.
He was no longer going to live there.
Nothing that much different than thousands of others who have had similar circumstances arise
Not everyone who goes through a short sale or foreclosure was living beyond their means .... so frequently a change in life circumstances creates the issue
Do you know how many people this has happened to in the last couple of years? Think about it, the man lost his job, got a 50% pay cut, do you know how many people this happens to? Alot. My advice is stop worrying about what other people do and watch your own finances!
Head football coach at a university is a notoriously unstable job. I think it was unrealistic to buy expensive real estate based on that salary. Not the smartest thing to do, but probably not worth a thread on CD with 7 exclamation points in the subject line.
Finally, you are correct that the coach didn't "need" that much house but that is irrelevant. He wanted that much house and his purchasing decision is based on want. If purchasing decisions were based on need, we'd all be living in 500 square foot homes somewhere.
The fact that what is actually needed is seen as irrelevant is a big part of our problem these days.
Maybe we'd all actually be a lot happier if we lived in what we could easily afford. I'm always shocked at how people just seem to sign up for more and more stress in their lives. This guy could have bought a house for 700K and lived quite nicely. I know that is not luxury living in San Diego, but it's nicer than how most people live.
People just do not think anything bad will happen to them and then they act shocked when it does.
The fact that what is actually needed is seen as irrelevant is a big part of our problem these days.
Maybe we'd all actually be a lot happier if we lived in what we could easily afford. I'm always shocked at how people just seem to sign up for more and more stress in their lives. This guy could have bought a house for 700K and lived quite nicely. I know that is not luxury living in San Diego, but it's nicer than how most people live.
People just do not think anything bad will happen to them and then they act shocked when it does.
The average salary in San Diego County is around $70K. How many people in San Diego (or anywhere) would want to live in a house that costs the same as their annual salary? That's what the coach would be doing. And, a $700K home then is about a $450K home today there.
Also, the difference between a $700K home then and a $1.4M house then is probably only a little bit more square feet but a lot more land. A $1.4M home in 2007 in north San Diego County is just a very nice house - that's it. We lived in a comparable part of Los Angeles. Guess what? We sold our 2200 square foot house for $921K in 2006. A plain, 2200 square foot, 4+3 house.
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