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Old 07-02-2019, 12:13 PM
 
13,872 posts, read 7,381,208 times
Reputation: 25351

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Quote:
Originally Posted by mysticaltyger View Post
Agreed. Something usually breaks for a lot of people when they hit their 50s. Our OP and her husband are lucky they're bringing in a 6 figure income at their age.
I spliced together a couple of things to make 6 figures last year at age 60 but I donít have a lot of optimism about doing it this year. I applied for a full time job last week where Iím massively qualified but Iím dubious that Iíll hear from them. At this point in my career, I land things through my personal network and I donít know anyone at this particular company.
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Old 07-02-2019, 12:15 PM
 
Location: Camberville
12,004 posts, read 16,753,802 times
Reputation: 19709
Quote:
Originally Posted by NewbieHere View Post
Iíve been back to visit my first condominium, the one I rented almost 40 years ago in Andover, MA. Today itís on the market for about $200k-$300k.
Framingham is another area with house price in the $300k - $400k range. Are these areas too far for you?

$300K is not within budget on an 80K income. Especially not if one is trying to fully fund retirement and hopes to have children.
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Old 07-02-2019, 12:17 PM
 
Location: SoCal
13,189 posts, read 6,301,958 times
Reputation: 9808
Quote:
Originally Posted by charolastra00 View Post
$300K is not within budget on an 80K income. Especially not if one is trying to fully fund retirement and hopes to have children.
One of my kids would buy it in a heart beat. In her area, a decent condo is $600k-$800k. Is that income for a couple? If yes, I can see it’s not affordable.
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Old 07-02-2019, 12:21 PM
 
Location: Boca Raton, FL
5,154 posts, read 8,684,984 times
Reputation: 6152
Smile Well....

Quote:
Originally Posted by marino760 View Post
No money down means a higher house payment, thus less money per month to live on. It can be significantly higher. You can't have your cake and eat it too when it comes to this.
Rates have hit lows again and one of my lenders (FHA) is the lowest at 2.750% for 30 year fixed.
FHA is 3.5% down.

Conventional is as low as 3% down.

(I do loans in Florida; wish I did the NE)
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Old 07-02-2019, 12:52 PM
 
Location: Camberville
12,004 posts, read 16,753,802 times
Reputation: 19709
Quote:
Originally Posted by NewbieHere View Post
One of my kids would buy it in a heart beat. In her area, a decent condo is $600k-$800k. Is that income for a couple? If yes, I can see itís not affordable.

Depends on your definition of "decent." Middling to iffy buildings, 2 bed/1 bath, shared laundry, tiny/dated kitchens, no storage, etc. is decent for a rental, but not what I aspire to for home ownership - especially when I'm within 5 years of having kids. Not worth it to put 40%+ of my take-home toward a mortgage with an hour commute each way (and longer if I got a job down the line in Boston!). On 80K, at *most* one should spend (imo) is $240K - especially on one income. Granted, I also prepare for the worst to happen: I spent most of my 20s either fighting cancer, fighting the debt cancer left me with, or fighting to pivot from the career I was medically disqualified from to something more sustainable. Being house-poor (spending more than 3X my income on a house falls in that category to me!) is something I can't imagine doing, especially when I'm not sold in staying in the region.



I might have a different opinion about affordability once I have 6 months take-home saved and cross the year's salary threshold I was I was supposed to have in retirement a year ago (according to the "experts"). Not to mention more than a 3% down payment!



The mentality of really stretching it to pay for home ownership is part of why we have so many seniors with next to nothing saved for retirement. I've had older folks tell me to hold off on saving toward retirement until I own a home. No way, no how. Both my parents and my partners' parents are in that boat - life's ebbs and flows meant they paid the mortgage rather than saved for retirement and now they're coming up short.
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Old 07-02-2019, 01:02 PM
 
Location: East of Seattle since 1992, originally from SF Bay Area
29,748 posts, read 54,373,866 times
Reputation: 31030
Quote:
Originally Posted by charolastra00 View Post
Depends on your definition of "decent." Middling to iffy buildings, 2 bed/1 bath, shared laundry, tiny/dated kitchens, no storage, etc. is decent for a rental, but not what I aspire to for home ownership - especially when I'm within 5 years of having kids. Not worth it to put 40%+ of my take-home toward a mortgage with an hour commute each way (and longer if I got a job down the line in Boston!). On 80K, at *most* one should spend (imo) is $240K - especially on one income. Granted, I also prepare for the worst to happen: I spent most of my 20s either fighting cancer, fighting the debt cancer left me with, or fighting to pivot from the career I was medically disqualified from to something more sustainable. Being house-poor (spending more than 3X my income on a house falls in that category to me!) is something I can't imagine doing, especially when I'm not sold in staying in the region.



I might have a different opinion about affordability once I have 6 months take-home saved and cross the year's salary threshold I was I was supposed to have in retirement a year ago (according to the "experts"). Not to mention more than a 3% down payment!



The mentality of really stretching it to pay for home ownership is part of why we have so many seniors with next to nothing saved for retirement. I've had older folks tell me to hold off on saving toward retirement until I own a home. No way, no how. Both my parents and my partners' parents are in that boat - life's ebbs and flows meant they paid the mortgage rather than saved for retirement and now they're coming up short.
The best of course, is both. Besides our retirement accounts, pensions and Social Security, we have been in our house for 25 years. We paid $190,000 and now it's valued at $900k. When we retire in 2-3 years, we can use the equity to pay cash for a smaller home in a less expensive area of the state. With no mortgage and lower taxes we should be able to manage at least as well as now.
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Old 07-02-2019, 02:04 PM
 
Location: San Ramon, Seattle, Anchorage, Reykjavik
2,237 posts, read 982,939 times
Reputation: 3105
Not to be a jerk, but I will be. Maybe the reason you didn't save much is because of your expectations around what wealth is. Wealth is not cash flow, it is assets. You had to be living pretty high on the hog to end up with so little. I doubt you will get much sympathy given your statement that $5k a month anywhere in the US is 'poor'. That is above average, even in the Northeast. I get the special needs child issue. However, my wife's brother has been special needs his entire life (severely autistic) and his very blue collar mom and dad made things work just fine, especially given the brother basically had a full ride with social security and other programs covering his expenses.

You need to fix your actions and expectations first or you will never have enough, no matter what you make.
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Old 07-02-2019, 02:09 PM
 
Location: San Ramon, Seattle, Anchorage, Reykjavik
2,237 posts, read 982,939 times
Reputation: 3105
Quote:
Originally Posted by NewbieHere View Post
One of my kids would buy it in a heart beat. In her area, a decent condo is $600k-$800k. Is that income for a couple? If yes, I can see itís not affordable.
I cannot understand why people with financial constraints would chose to live in the Bay Area or SoCal. Sure, you may be able to spend 75% of your money on housing but what then? In San Ramon I see young people attracted to the area spending 50-75% of their take home income to live here. They have no money for eating out, vacations, retirement, house repairs, furniture, repairing the car, etc. All to make what is a pretty average salary. There are vast areas of the US where the salaries are equivalent but the costs are much lower. I just don't get it.

If you can afford it, it's great. If not? No thanks. The weather is just not that great.
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Old 07-02-2019, 02:21 PM
 
Location: SoCal
13,189 posts, read 6,301,958 times
Reputation: 9808
Quote:
Originally Posted by Stonepa View Post
I cannot understand why people with financial constraints would chose to live in the Bay Area or SoCal. Sure, you may be able to spend 75% of your money on housing but what then? In San Ramon I see young people attracted to the area spending 50-75% of their take home income to live here. They have no money for eating out, vacations, retirement, house repairs, furniture, repairing the car, etc. All to make what is a pretty average salary. There are vast areas of the US where the salaries are equivalent but the costs are much lower. I just don't get it.

If you can afford it, it's great. If not? No thanks. The weather is just not that great.
Her business is here in SoCal. Thatís a good enough reason. Her family is here in SoCal. Thatís another good reason to be in SoCal. But the LA area has no affordable housing. No good transportation even. In NorCal, thereís at least the BART. People can live in San Ramon and work in SF. In LA, you canít do that even.
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Old 07-02-2019, 03:03 PM
 
Location: Columbia SC
8,945 posts, read 7,721,438 times
Reputation: 12144
Quote:
Originally Posted by germaine2626 View Post
I hate to mention this, but not only should you look at your expenses when you have two incomes/two SS checks and two people but please think about what you would do with one SS check and one person. In my widow/widowers grief support group about 1/3 of the widows, and a few of the widowers, needed to move out of their house/apartment shortly after their spouse died as they couldn't afford the rent/mortgage, utilities and other expenses anymore (several had to move in with adult children). Not that you should unduly worry about it but at least consider what would happen in the worse case scenario (death or serious illness of one of you). IMHO, try to secure extra income for emergencies though side gigs.


Good luck
This is happening with my in-laws right now. Married couple was getting by with two SS incomes. He recently died. She cannot continue living (home with a mortgage) where she is. She will be moving with her daughter (where to be determined).With her daughter just having had a baby, she will become daycare for her grandson when her daughter returns to work so that works out.

Why I say to be determined, there are two houses and they have to decide which one to live in and what to do with the other house as in sell or rent it.

None of this was unexpected. The numbers were there all along.
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