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Old 05-25-2018, 08:10 AM
 
9,323 posts, read 11,164,334 times
Reputation: 12507

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Houses have always been expensive for a first time homebuyer!

If someone makes it a priority then it will happen. I bought my first house at 24, $4300 moved me into a 3/2 with a pool (3% down FHA loan). How is that not much more than first, last and security on a $1000 month rental? Mortgage including taxes/insurance was $908 a month at 8% interest (it was a decent rate back then).

For the record, I have never rented residential space. I believe in the buy a house concept and while it hasn't always been profitable (I bought one in July 2005!) it has been a great experience as a whole.
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Old 05-25-2018, 09:08 AM
 
Location: Philadelphia/South Jersey area
2,288 posts, read 1,043,745 times
Reputation: 7596
I'm on the other end of the spectrum. I hate home ownership but I'm getting old. it's a money pit. looking at a 20K expense now in fixing a stucco/roof leak problem.

I'm planning on selling in another 2 years and God willing I'll never own another house as long as I live. lol
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Old 05-25-2018, 09:16 AM
 
Location: North Beach, MD on the Chesapeake
32,133 posts, read 39,225,649 times
Reputation: 40590
Employers have always paid as little as they thought they could, so that's not new.

And yes, most people who want to buy a house will if their sights are adjusted properly. One thing I've noticed, and it goes back about 20 years, is that due to whatever reason people want houses that they can't afford and refuse to adjust their expectations to match up with their income.
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Old 05-25-2018, 11:01 AM
 
121 posts, read 37,820 times
Reputation: 239
It doesn't look promising. They aren't building affordable homes anymore. It's all high end homes. Only rich people can afford to buy right now.
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Old 05-25-2018, 02:13 PM
 
10,274 posts, read 6,515,435 times
Reputation: 10855
Quote:
Originally Posted by GolfingCat View Post
It doesn't look promising. They aren't building affordable homes anymore. It's all high end homes. Only rich people can afford to buy right now.
Yes, houses cost so much to build they don't bother building affordable ones anymore, the bigger and more upgraded they can make a house the bigger they can raise their profit margin.

What will slow home prices is when builders come in and start building homes for the same price that existing ones are going for. That happened to a friend of mine that bought an investment property in Naples. He bought high and when the new homes started being built it dropped his value and he had to do a short sale.
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Old 05-25-2018, 04:06 PM
 
924 posts, read 405,684 times
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I’m in a millennial and on my third house. My husband owned one when we married. It’s really not that unusual, but it is regionally dependent. We lived in a high cost of living area before moving to a lower cost of living area and it was a bit kore of a stretch when the down payment was higher, even with the higher wage to go with it. But we have never paid PMI, and never had trouble buying a modest home within our income.

It’s far from a pipe dream to keep expenses down, save, and buy. Even on a single income with a gaggle of kids (that’s us!). Really.
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Old 05-25-2018, 04:13 PM
 
Location: Mt. Lebanon
1,793 posts, read 1,826,836 times
Reputation: 1745
Quote:
Originally Posted by Zengha View Post
Owning a home is a huge expense and you increasingly need a VERY good job in order to get one. However, with the way employers and business' keep trying to screw over and pay as little as possible it's difficult just getting a decent apartment and paying all the other bills.

Do you think home ownership for young people today and in the future is just a pipe dream for most?
it will slowly decline just like the middle class salaries
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Old 05-25-2018, 04:24 PM
 
Location: Texas
6,524 posts, read 2,377,384 times
Reputation: 13972
No, home ownership won't be an option for many, if job outsourcing continues.
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Old 05-25-2018, 08:29 PM
 
Location: Here and there, you decide.
11,583 posts, read 22,692,912 times
Reputation: 3883
Quote:
Originally Posted by Zengha View Post
Owning a home is a huge expense and you increasingly need a VERY good job in order to get one. However, with the way employers and business' keep trying to screw over and pay as little as possible it's difficult just getting a decent apartment and paying all the other bills.

Do you think home ownership for young people today and in the future is just a pipe dream for most?
It depends where you live...

If you MUST have New York City, Miami, or any West Coast... then probably not...

You can still buy a home in a lot of parts of the USA for 100k..
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Old 05-25-2018, 11:02 PM
 
5,192 posts, read 1,560,863 times
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Quote:
Originally Posted by GolfingCat View Post
It doesn't look promising. They aren't building affordable homes anymore. It's all high end homes. Only rich people can afford to buy right now.
It might that way sometimes but most large cities and metro areas have extensive "affordable housing" regulations - and the re-distributive policies needed to fund these projects - as they are invariably priced well below market-rate and thus heavily subsidized.

Not too long ago these projects were called "subsidized housing" but somewhere in the last decade the powers that be took a euphemistic detour and came up with a less provocative term.

Out here in California, many cities have requirements that developers must offer as much as 25% of the units as "affordable" units. There is also a specific tax collected on RE transactions to fund subsidized housing. The California legislators have also put a proposal on the 2018 ballot for a $4B bond, which will also represent a subsidy as far more than 100% of the cost will be paid by taxpayers in the end.

But in many parts of the country, houses are still "affordable" without any of the shenanigans.
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