Welcome to City-Data.com Forum!
U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Real Estate > Renting
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 10-24-2018, 09:10 PM
 
Location: Silicon Valley
18,813 posts, read 32,322,822 times
Reputation: 38565

Advertisements

If you can rent, like I do, in an affordable housing apartment that is a low income housing tax credit property (LIHTC), then you are in housing that is pretty stress-free.

if you can find somewhere that the Section 8 housing list is open, and you qualify, then it's worth it to move there to get a voucher.

That's what i did.

And then, I ported my Section 8 voucher to a LIHTC property (which has to accept a Section 8 voucher, if you otherwise qualify - decent credit, etc.) to the SF Bay Area, where I wanted to move back to.

The beautiful thing about these types of properties, is that they can't kick you out "without cause", which is dang hard to prove. So, it would be really hard to kick me out.

Plus, with my subsidies, they can't ever raise the rent higher than 32% of my income.

So, even though renting is less ideal than owning my own property - in theory - renting is not a horrible option.

For instance, the apartment I have now is really quiet. I feel really blessed. The neighborhood is not very safe as far as vehicle break-ins, etc. - but, it's quiet.

I used to have at least a couple acres for a garden and animals, etc., and now I just have a balcony and an indoor garden with grow lights. Not ideal, but life could be much worse.

And if it was my property, I'd have to pay the property tax, the repairs on all appliances and anything else that went wrong or was damaged.
Reply With Quote Quick reply to this message

 
Old 10-25-2018, 05:16 AM
 
453 posts, read 405,746 times
Reputation: 485
Quote:
Originally Posted by Eeko156 View Post
Exactly. I could probably get financing for a condo in a so-so neighborhood, but it's that sharing walls that I find intolerable.

Housing is so costly, I don't know how single income people can do it. I have a college degree and still barely make it. I am in an average metro area, it's not like I'm in San Francisco or NYC.
My fiancé and I rent an end unit 3 floor condo and love it. We share only one common wall. No noise at all, you’d literally never know anyone else even lived in the place.

This experience varies widely, though.
Reply With Quote Quick reply to this message
 
Old 10-25-2018, 06:23 AM
 
12,016 posts, read 12,662,720 times
Reputation: 13420
Quote:
Originally Posted by Mr_Geek View Post
Add up the housing payment you'd potentially have, along with all your other monthly bills. ALL your bills.

If you make more than you would be spending and have excellent credit, you should be able to find a lender.

I'd not advise doing this though unless you have some decent savings as well.
You don't have to add up all your bills, only your regular monthly revolving debt like student loans, credit card payments, etc. You electric bill, cable, gas, car insurance and anything else do not factor in your debt to income ratio, that's what the difference in your dti and the money left over is to pay for.
Reply With Quote Quick reply to this message
 
Old 10-25-2018, 06:36 AM
 
12,016 posts, read 12,662,720 times
Reputation: 13420
Quote:
Originally Posted by Eeko156 View Post
I have no debt and my credit is excellent. But I simply don't make enough money. Isn't that the biggest thing they will look at? I have used mortgage calculators and I know what I can afford, but I would still need financing.
They look at the cost of the house, property insurance, property taxes and any hoa fees.

buying a $150K home would cost about $700 a month plus taxes and insurance.

It depends where you live. If you live in California where modest homes cost $500K then no you won't qualify. If you live in a housing desert move to where affordable houses are.

It's not just about how much money you make. A senior citizen you gets $1000 a month on Social Security, rounded up since there are no taxes to $1250 with no other debt would be able to buy a $60K home somewhere. It may have to be in the boonies or Kansas or Ohio or a cheap part of a low cost state but they can qualify. That senior buying that home would pay about $450 a month or less depending on the taxes and insurance. In areas with even $60K homes you can't find a rental for $450.

IF you think you won't qualify and wont' try to find out if you do then you will always rent. Rents go up, mortgages don't.
Reply With Quote Quick reply to this message
 
Old 10-25-2018, 07:00 AM
 
Location: In the Redwoods
30,286 posts, read 51,783,973 times
Reputation: 23658
Quote:
Originally Posted by moneymkt View Post
That means you need to downgrade because if you are unable to save money after paying rent then you don't make enough to live in that apartment
If you already live in the lowest “rental bracket,” then downgrading/moving isn’t always an option. I live in the Bay Area, so obviously my perspective is a bit warped - but around here, basically anyone who earns less than 100K is going to struggle even with the cheapest rent possible (unless they have roommates or live with family). So not only is it common to be a long-term renter, but it’s also very common to have little/no savings after rent!

FYI: I’m a 42 year-old who’s never owned a home, since I’ve been in the Bay Area for most of my life, and chose a good but not “super lucrative” career. Am I okay with that? For the time being, yes I am. I’ve thought about purchasing a home, but even considering the added costs and responsibilities gives me a headache. Plus it’s nice having the freedom to move when I please, and also being able to call my landlord when something breaks.

I would like to purchase something eventually, just not likely in this region... and relocating probably won’t happen for quite a while, given my job and family situation. So be it!
Reply With Quote Quick reply to this message
 
Old 10-25-2018, 07:18 AM
 
486 posts, read 411,016 times
Reputation: 559
Quote:
Originally Posted by Patsnation34 View Post
Isn’t it the same thing, since these people are the ones buying a home?

Saving tons and tons of money is great in theory, and a week paycheck to cover all bills like another poster suggested is a great idea, how realistic is that? To your average middle class earner?

How many people make enough to afford all housing and utility costs on one weekly check? My guess is almost none.

Again, great advice if you make 300k a year, most people don’t and never will
This isn't true at all. It definitely applies to people who have low income RELATIVE to where they live. Meaning they could do well in general, but choose to live somewhere that costs a fortune to live in.

You definitely don't need to make $300k to make good financial decisions. Everyone should/needs to live below their means, and if they can't do that due to the cost of living in a certain area, then they should move to somewhere that better suits their income. No, you certainly can't do it overnight, but that's exactly what we did. We lived in Northern VA, one of the most expensive areas in the country, but our income didn't justify it. So we moved out of the bubble of the DC suburbs and our cost of living is MUCH better now. Our income was about the same when we first moved, but has improved a lot since (showing there is room for growth outside of high-cost areas). But it was during all that time that we saved money and bought a house, and paid 20% down on it.

Yes, the reality is that some people can't do this, at least not nearly as quickly. But, the reality is that a lot more people can do this than think they can, they just set it in their minds that they only have certain choices, as if they are legally obligated to live in a certain area or keep a specific job.

But, people let the idea of keeping up with the Jones shape their financial decisions, live beyond their means, get so in debt that they can't even keep up with the payments on the stuff they couldn't afford in the first place, and then feel a victim of circumstance when we are all a victim of our own decisions. A victim mentality will keep you from winning.
Reply With Quote Quick reply to this message
 
Old 10-25-2018, 07:24 AM
 
Location: The Triad
34,090 posts, read 82,592,203 times
Reputation: 43651
Quote:
Originally Posted by gizmo980 View Post
If you already live in the lowest “rental bracket,” then downgrading...
Then it means SHARING.

That c/should mean a nicer/larger place with less external noise and problems... and a LOWER monthly cost.
The rub is that you'll need to share the kitchen etc and maybe a bathroom to do it.

Whatever the NET weekly check comes to is the targeted monthly housing budget (rent, util's, etc).
This model is just as true in the Bay Area as in flyover country.
Reply With Quote Quick reply to this message
 
Old 10-25-2018, 07:31 AM
 
4,295 posts, read 2,740,829 times
Reputation: 6214
Quote:
Originally Posted by LLinVA View Post
This isn't true at all. It definitely applies to people who have low income RELATIVE to where they live. Meaning they could do well in general, but choose to live somewhere that costs a fortune to live in.

You definitely don't need to make $300k to make good financial decisions. Everyone should/needs to live below their means, and if they can't do that due to the cost of living in a certain area, then they should move to somewhere that better suits their income. No, you certainly can't do it overnight, but that's exactly what we did. We lived in Northern VA, one of the most expensive areas in the country, but our income didn't justify it. So we moved out of the bubble of the DC suburbs and our cost of living is MUCH better now. Our income was about the same when we first moved, but has improved a lot since (showing there is room for growth outside of high-cost areas). But it was during all that time that we saved money and bought a house, and paid 20% down on it.

Yes, the reality is that some people can't do this, at least not nearly as quickly. But, the reality is that a lot more people can do this than think they can, they just set it in their minds that they only have certain choices, as if they are legally obligated to live in a certain area or keep a specific job.

But, people let the idea of keeping up with the Jones shape their financial decisions, live beyond their means, get so in debt that they can't even keep up with the payments on the stuff they couldn't afford in the first place, and then feel a victim of circumstance when we are all a victim of our own decisions. A victim mentality will keep you from winning.
I live in a semi-crappy area (not the best, not the highest crime, either) and drive a 9 year old car. I simply don't make that much money. I have tried to get a better job, but can't even get interviews (I am in my 50's, which does not help). I agree we should never fall into the victim trap, but sometimes it is hard when you can't really "downgrade" in order to save for that house.
Reply With Quote Quick reply to this message
 
Old 10-25-2018, 07:33 AM
 
4,295 posts, read 2,740,829 times
Reputation: 6214
Quote:
Originally Posted by LifeIsGood01 View Post
They look at the cost of the house, property insurance, property taxes and any hoa fees.

buying a $150K home would cost about $700 a month plus taxes and insurance.

It depends where you live. If you live in California where modest homes cost $500K then no you won't qualify. If you live in a housing desert move to where affordable houses are.

It's not just about how much money you make. A senior citizen you gets $1000 a month on Social Security, rounded up since there are no taxes to $1250 with no other debt would be able to buy a $60K home somewhere. It may have to be in the boonies or Kansas or Ohio or a cheap part of a low cost state but they can qualify. That senior buying that home would pay about $450 a month or less depending on the taxes and insurance. In areas with even $60K homes you can't find a rental for $450.

IF you think you won't qualify and wont' try to find out if you do then you will always rent. Rents go up, mortgages don't.
I am a long way from Social Security (early 50's). However, there are homes within an hour commute that are in the 150K range.
Reply With Quote Quick reply to this message
 
Old 10-25-2018, 08:23 AM
 
12,016 posts, read 12,662,720 times
Reputation: 13420
Quote:
Originally Posted by Eeko156 View Post
I am a long way from Social Security (early 50's). However, there are homes within an hour commute that are in the 150K range.
If you don't make a lot of money you should move to an affordable area where you can probably find a job that pays what you make now, rent get to know the area and find a job there and then find a home there.
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Real Estate > Renting

All times are GMT -6.

© 2005-2024, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Contact Us - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37 - Top