Affluent Influx ? (Pittsburgh, Lawrenceville, Atlantic: sales, leasing, condo)

[guy2073]

The fancy cars and high end houses are a sign of a decent credit score and the banks willingness to lend money. I wonder how much these people have in savings?

[xdv8]

Originally Posted by guy2073

The fancy cars and high end houses are a sign of a decent credit score and the banks willingness to lend money. I wonder how much these people have in savings?

Why does everyone immediately doubt that these people are wealthy or have higher incomes. This is hypothetical yet you have it answered as being debt driven? Maybe there is actual prosperity. I've gotten a few large promotions over the last teo years and I'm not exceptional.

[guy2073]

Originally Posted by xdv8

Why does everyone immediately doubt that these people are wealthy or have higher incomes. This is hypothetical yet you have it answered as being debt driven? Maybe there is actual prosperity. I've gotten a few large promotions over the last teo years and I'm not exceptional.

It may very well be that these people have the ability to afford the finer things. I would put my money on it being debt over wealth though.

[xdv8]

Originally Posted by guy2073

It may very well be that these people have the ability to afford the finer things. I would put my money on it being debt over wealth though.

That's fine but you failed to explain why you think that. Do you just think poorly of Americans ability to manage personal finances? Is this a Pittsburgh specifc complaint? Do you doubt people are prosperous?

[PghYinzer]

Originally Posted by xdv8

Why does everyone immediately doubt that these people are wealthy or have higher incomes. This is hypothetical yet you have it answered as being debt driven? Maybe there is actual prosperity. I've gotten a few large promotions over the last teo years and I'm not exceptional.

I wondered the same thing. The kneejerk reaction is that people are making bad decisions, leasing, or overburdened with debt.

[xdv8]

Originally Posted by PghYinzer

I wondered the same thing. The kneejerk reaction is that people are making bad decisions, leasing, or overburdened with debt.

They may very well be in that situation, but I'm not hearing a good argument as to how one could come to that conclusion. It just feels like more negativity.

[Paul2421]

Originally Posted by xdv8

They may very well be in that situation, but I'm not hearing a good argument as to how one could come to that conclusion. It just feels like more negativity.

https://www.carscoops.com/2018/06/av...united-states/

lending standards for housing have also lightened. it isn't that big of a stretch to think it has an effect, among other things like higher income folks in the city.

[jea6321]

Originally Posted by xdv8

They may very well be in that situation, but I'm not hearing a good argument as to how one could come to that conclusion. It just feels like more negativity.

working in the real estate industry and owning rentals, I can tell you that I see people over extending themselves on a very regular basis. I have had people apply to rent apartments from me that were making way less than 3 times the monthly rent. Some realize it and some don't when I bring it to their attention. Some say "ill make it work" and others say "but I really like it and don't want to live in a place that costs 1/3 of what I make"

As for the OP, if you are making 100k+ as a single person, you should be able to afford pretty much whatever you want in this city. Buying a 500k house would definitely be a big stretch, but 1500 a month rent should be no problem whatsoever.

[Formerly Known As Twenty]

Originally Posted by xdv8

That's fine but you failed to explain why you think that. Do you just think poorly of Americans ability to manage personal finances? Is this a Pittsburgh specifc complaint? Do you doubt people are prosperous?

Americans as a whole are horrible with handling their finances. I wish that I could find the article (I believe that it was the Atlantic) in which a rather affluent writer was bemoaning his lack of savings. Lifestyle creep, indeed.

As a matter of fact, I think that the stats do bear out that many middle-class Americans do not have enough in savings to cover a house or car repair or minor medical emergency. Yet....(and this is just anecdotal, mind) many of those in my circle who complain about their lack of funds still manage to have children in multiple traveling sports, semi-annual Disney vacations and Christmas bills that total into the thousands each year. They feel entitled to those things in some way, but can little afford them, but still shop away YOLO-style.

[guy2073]

Originally Posted by xdv8

That's fine but you failed to explain why you think that. Do you just think poorly of Americans ability to manage personal finances? Is this a Pittsburgh specifc complaint? Do you doubt people are prosperous?

I see it with my primary business. Younger people have to pay for jobs on 2 or 3 credit cards or borrow money from parents. They live in a 300k house and drive 80k cars but they don't have a place to sit down in their house. I don't have any statistics to back up my hunch but in the majority of the cases I would guess it is poor money management.