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Not too long ago I bought my dream house, my retirement home, at age 57. It was super nice, in a gated community, and was all on one level and about 2600 square feet. It was absolutely perfect for me. It was not sprawling but it had room where I wanted room and the layout was perfect for my husband and me. It was about 12 years old.
Imagine our surprise when we realized that most people who lived in that small neighborhood were in their thirties and forties. We already knew that our house was one of the smallest out there but it never ceased to amaze me that these much younger people (many in their thirties with small kids) could afford and WANTED 4000 and 5000 square foot homes! Honestly, it was really surprising.
While we lived there, numerous families moved into even BIGGER homes, or custom built huge homes about the same size but all brand spanking new. Apparently their spacious homes were already "dated" to them and they wanted open shelving in the kitchens, huge islands, etc. I'm not saying there's anything wrong with their choices - I'm just saying that this surprised me. I mean, that's what they told me and everyone else.
When I was their age, I was living in a much smaller house. And it wasn't that I couldn't afford more but I just never maxed out my loan potential if that makes sense.
I remember selling real estate about15 years ago and working with a young couple, first time home buyers, and they had their parents with them. They sent me a list of homes they wanted to see, and as I was showing them these homes, the parents were both saying "Wow, this home is nicer than our current home!" The parents weren't poor either.
It still amazes me.
My house is paid off and it's comfortable to me but I'm not trying to impress anyone. My utility bills are reasonable. I can pay it all on one income, which is not $100K (I'm retired now).
And I don't live in an "undesirable" location. I live in a fast growing state in a fast growing metro area.
I must be old. LOL
Yeah when I retire, my income will be WAAAAYYY below 100k. And I will be doing just fine.
If you were asking how FAMILY HOUSEHOLDS survive on 40k a year, then THAT is an entirely different question. You should have stated as much in your thread title.
In 2020 just under 12% of households had a family income between $35,000 and $50,000.
If one does the math, which you do, even the $15/hour minimum wage is only a bit above $30,000/year.
This is another "bubble" thread. It reminds me of a former colleague with a family (husband and wife) income that approached $500,000/year. She was always astounded when she was told what the surrounding area's MFI was because everyone in her circle made as much as they did or more.
Oh, hell! Though my income from my pension and social security is greater than my living expenses I only need 12 thousand per year to 'survive.' And I rent an apartment. Of course, I live in El Paso, TX and I'm single, and I don't drive. but how much a person needs to 'survive' depends on where he lives and on how he lives.
Not too long ago I bought my dream house, my retirement home, at age 57. It was super nice, in a gated community, and was all on one level and about 2600 square feet. It was absolutely perfect for me. It was not sprawling but it had room where I wanted room and the layout was perfect for my husband and me. It was about 12 years old.
Imagine our surprise when we realized that most people who lived in that small neighborhood were in their thirties and forties. We already knew that our house was one of the smallest out there but it never ceased to amaze me that these much younger people (many in their thirties with small kids) could afford and WANTED 4000 and 5000 square foot homes! Honestly, it was really surprising.
While we lived there, numerous families moved into even BIGGER homes, or custom built huge homes about the same size but all brand spanking new. Apparently their spacious homes were already "dated" to them and they wanted open shelving in the kitchens, huge islands, etc. I'm not saying there's anything wrong with their choices - I'm just saying that this surprised me. I mean, that's what they told me and everyone else.
When I was their age, I was living in a much smaller house. And it wasn't that I couldn't afford more but I just never maxed out my loan potential if that makes sense.
I remember selling real estate about15 years ago and working with a young couple, first time home buyers, and they had their parents with them. They sent me a list of homes they wanted to see, and as I was showing them these homes, the parents were both saying "Wow, this home is nicer than our current home!" The parents weren't poor either.
It still amazes me.
My house is paid off and it's comfortable to me but I'm not trying to impress anyone. My utility bills are reasonable. I can pay it all on one income, which is not $100K (I'm retired now).
And I don't live in an "undesirable" location. I live in a fast growing state in a fast growing metro area.
I must be old. LOL
Our first home was a smallish split foyer in a nice but modest community. We raised our kids there until the one was a teenager and the other was a tween. We moved and relocated for a job. My husband and I were in our late 40's at the time.
The area that we moved to was a lower cost of living area and you could get a substantially bigger house for less than what we sold our former home for. We bought a new build in a new community with almost 4000sqft on over an acre and a half and rolled the proceeds of the sale of our former home (which had appreciated greatly during the time we owned it) into the new home. We live in that house today and it has been a great home to raise a family in for so many different reasons. This house has also appreciated in the time that we've owned it.
Our kids have since graduated HS - one has graduated college and the other is in college. We will likely downsize into a smaller home within the next couple of years. We're considering all of our options including 55+ retirement communities. We'll be able to buy our next house outright and we'll be mortgage free which will be nice in retirement.
Plus companies are buying up all the real estate and wont be selling anytime soon (like blackrock).
Your mentioned company aims to rent out houses to everyone, and being the right hand of the Fed Res; that means everyone.
They can afford to buy high, and rent to 3-4 different tenants at the same time.
Not too long ago I bought my dream house, my retirement home, at age 57. It was super nice, in a gated community, and was all on one level and about 2600 square feet. It was absolutely perfect for me. It was not sprawling but it had room where I wanted room and the layout was perfect for my husband and me. It was about 12 years old.
Imagine our surprise when we realized that most people who lived in that small neighborhood were in their thirties and forties. We already knew that our house was one of the smallest out there but it never ceased to amaze me that these much younger people (many in their thirties with small kids) could afford and WANTED 4000 and 5000 square foot homes! Honestly, it was really surprising.
While we lived there, numerous families moved into even BIGGER homes, or custom built huge homes about the same size but all brand spanking new. Apparently their spacious homes were already "dated" to them and they wanted open shelving in the kitchens, huge islands, etc. I'm not saying there's anything wrong with their choices - I'm just saying that this surprised me. I mean, that's what they told me and everyone else.
When I was their age, I was living in a much smaller house. And it wasn't that I couldn't afford more but I just never maxed out my loan potential if that makes sense.
I remember selling real estate about15 years ago and working with a young couple, first time home buyers, and they had their parents with them. They sent me a list of homes they wanted to see, and as I was showing them these homes, the parents were both saying "Wow, this home is nicer than our current home!" The parents weren't poor either.
It still amazes me.
My house is paid off and it's comfortable to me but I'm not trying to impress anyone. My utility bills are reasonable. I can pay it all on one income, which is not $100K (I'm retired now).
And I don't live in an "undesirable" location. I live in a fast growing state in a fast growing metro area.
I must be old. LOL
We live in 1500 sq ft townhome. It's worth at least $650k (we bought at $593k in 2018 - didn't pay the full asking price!). On one hand it's weird because everyone we know in our same financial position lives in bigger homes... and honestly their homes are beautiful and it's fun to dream of having the upper middle class dream (that I know we could afford), BUT I always stop and ask myself:
1) Do you want to pay more taxes and utilities? No
2) Do you want to clean a bigger home or pay someone to clean it for you? Hell no!
3) Do you want to pay more in maintenance for more sq ft? Nope
4) Do you want to not have an HOA and deal with all maintenance calls/professionals yourself? No.
5) Do you want to degrade from living on a level one snow plowing street to level two or three? No.
6) Do you want to have to ask the community HOA for paint colors or landscaping? No.
7) Do you want to even have to think about paint colors or landscaping? No.
8) Do you think the quality of your life will substantially improve with a bigger home? Not at all.
If you've answered no to half the questions, especially #8, then you don't move. You might feel a little poorer/cheaper than your peers, but you're fine with that.
Many use their credit cards to subsidize their living,buy now pay later.
You can carry a balance in 5 figures for the rest of your life.
you find a roommate to share an apt or house,you buy a second hand car,some shop for clothes and shoes in thrift shop or Ebay.
Churches give out free cheese and other staples.
Many work two jobs,or sell on Ebay.
They can also sign up with Doordash,Uber.
Shop for day old bread,cake.,fresh grocery close to expiration,slightly dented goods,use coupons,shop on senior discount day.
Location: Formerly Pleasanton Ca, now in Marietta Ga
10,362 posts, read 8,605,808 times
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Quote:
Originally Posted by Jimmyp25
You literally need a minimum of 100k now a days to just live a descent lifestyle... go out here and there. Drive a honda..etc.. but anything less, you will probably struggle .
I managed to get a house in the Austin area back in 2014 while making 40k a year(I was 25) and FF 7 years later.. We just sold it for a great amount. But I would never ever ever pay 500k for the house I just sold loll.. its insanity.
I believe the next generation will be a class of renters, and unless mom and dad are helping (i had no help), they will be really struggling to get something. Unless they are buying a house in a non-desirable area.
The next generation represents the greatest wealth shift with parents handing down lots of money. I think there will still be a lot of homes sold.
Not too long ago I bought my dream house, my retirement home, at age 57. It was super nice, in a gated community, and was all on one level and about 2600 square feet. It was absolutely perfect for me. It was not sprawling but it had room where I wanted room and the layout was perfect for my husband and me. It was about 12 years old.
Imagine our surprise when we realized that most people who lived in that small neighborhood were in their thirties and forties. We already knew that our house was one of the smallest out there but it never ceased to amaze me that these much younger people (many in their thirties with small kids) could afford and WANTED 4000 and 5000 square foot homes! Honestly, it was really surprising.
While we lived there, numerous families moved into even BIGGER homes, or custom built huge homes about the same size but all brand spanking new. Apparently their spacious homes were already "dated" to them and they wanted open shelving in the kitchens, huge islands, etc. I'm not saying there's anything wrong with their choices - I'm just saying that this surprised me. I mean, that's what they told me and everyone else.
When I was their age, I was living in a much smaller house. And it wasn't that I couldn't afford more but I just never maxed out my loan potential if that makes sense.
I remember selling real estate about15 years ago and working with a young couple, first time home buyers, and they had their parents with them. They sent me a list of homes they wanted to see, and as I was showing them these homes, the parents were both saying "Wow, this home is nicer than our current home!" The parents weren't poor either.
It still amazes me.
My house is paid off and it's comfortable to me but I'm not trying to impress anyone. My utility bills are reasonable. I can pay it all on one income, which is not $100K (I'm retired now).
And I don't live in an "undesirable" location. I live in a fast growing state in a fast growing metro area.
I must be old. LOL
No. It means you're smart. Small house, paid off car, and living to not impress anyone else, will go a long way IMO
I guess it depends on where someone lives and their monthly expenses.
If they live in a HCOL area (big metros), then they'll struggle much more than living in a LCOL or at least lower COL area.
There are retirees out there who are living on $40K/year, including their SS. If they're 65+ and have Medicare, that makes a difference.
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