Atlanta millennials want to buy a house, just can’t afford to, survey says (Kennesaw: fit in, hotels)

[jhtrico1850]

5% on 175k is 9k. Buyers don't pay realtor fees. Miscellaneous fees can be 4-8k depending on if you want to pay for a low rate.

Still, 175k won't get you much if you want a safe area with a good commute (depending on your field of work).

It does beg the question of why millennial need homes. Hopefully as time passes, the market moderates and supply increases.

[st3mpy]

Originally Posted by jhtrico1850

Buyers don't pay realtor fees..

Have you tried to buy a house recently?

[arjay57]

Originally Posted by st3mpy

Referencing a once-in-a-lifetime housing crisis to "prove" a point about affordability is laughable.

It's not laughable at all. Markets always go up and down and when or whether you get in or out is a matter of timing. The couple I'm referring to wasn't sure whether the market was still going down or was turning around. But they realized there are no guarantees and decided to take a shot.

[arjay57]

Originally Posted by sedimenjerry

See this is the problem with today. Many older millennials were just getting into the market and likely got burned with their first buy tanking in value. Mid range (like my sister) weren't in the housing market but faced very tough job prospects due to the recession and couldn't save up money to enter a cheaper market. Then you have younger ones like me with better job prospects but are facing a housing market that has become pretty expensive. Not everyone was able to take advantage of lower prices several years ago.

Now yea my parents faced the same devaluation of their house but they had good incomes with plenty of assets and were able to ride out the storm. They just sold their house for a half decent profit but they bought well before the mid 2000s overvaluation and were able to be patient and wait for the market to recover. The past 20 years have barely been a blip to them.

It happens. I've always had a unique knack for buying high and selling low.

And there are always reasons not to buy or sell. Heaven knows, I've made some bone-headed decisions. Like getting rid of those three extra lots on Lake Rabun because it was too much hassle to keep them up. Or to pass on that property at Pleasant Hill, where they wound up building the Walmart.

[AUGnative]

The reason the market got overheated and prices hyperinflated in the mid 2000s was because banks and mortgage companies were handing out mortgages with very liitle down. Many people bought more house than they could afford because that had very little of their own money invested in it upfront. Now the pendulum has swung in the opposite direction.. a bit too far I would say. However there is something to be said for saving for a sizable downpayment. Not only do you get a better rate, and can avoid paying PMI (if you put down 20%) , but it also causes you to be more realistic on what you can afford. I have always put 20% down.. but that may not be possible for everyone. However if you cannot put atleast 10% down then it is probably not a good idea for you to buy a house.. the housing market isnt for everyone, and for some millennials, with their volatile work situation and high debt, renting may be a better option. They might be able to afford rent in one of the cooler hip areas and can walk away at the end of their lease period.

[DaBurgh]

Originally Posted by JPD

What's all this about the far out suburbs? You can find move-in-ready 3 (and even 4) bedroom houses in the low 200s all day long in the close-in, ITP suburbs, in stable, well-established neighborhoods. And you can find perfectly good houses in the mid-100s just across 285.



https://www.zillow.com/homes/for_sal...99_rect/14_zm/

https://www.zillow.com/homes/for_sal...99_rect/14_zm/

https://www.zillow.com/homes/for_sal...79_rect/14_zm/

https://www.zillow.com/homes/for_sal...54_rect/14_zm/

Awesome, thanks..good to know these exist. I've been wanting to move out of the exurbs and closer to the city, but can only do a single family home. Not that I have a family, I just can't share walls

[arjay57]

Originally Posted by sedimenjerry

Those prices are low for a reason. Schools are not great for any of those and that's not the best area crime wise. My sister's ex's family first moved near there (a couple miles farther south) from Europe as part of a relocation program. They moved away ASAP cause of the crime issues. Areas nearby aren't too awful, but you can drive out a little farther, pay a little more, get more house with way better schools in very safe areas.

It wasn't that long ago that people said the same thing about neighborhoods like Candler Park, Poncey-Highland, Oakhurst or Kirkwood. Yet some decided to give it a try and to see if they could make things better.

Now folks complain that these neighborhoods are too pricey and they can't get in.

[Stormhammer]

Originally Posted by jhtrico1850

It does beg the question of why millennial need homes. Hopefully as time passes, the market moderates and supply increases.

Need vs want. E.g. I for one want a 2-car garage instead of having to rent a storage place for my track car to work on it.

[JPD]

Originally Posted by st3mpy

Saving for a down payment is difficult. For a modest starter home in the 'burbs ($175k) you need $22k cash minimum for 5% down, seller's agent, closing fees, origination costs, and security funds.

If you're doing it responsibly, that is in addition to your 6 month rainy day and retirement funds.

Sure there are cheaper homes, but good luck getting a mortgage for it. Banks don't back garbage, and sellers would rather sell to investors who have cash.

The realtor fees are paid by the seller.

[JPD]

Originally Posted by st3mpy

Referencing a once-in-a-lifetime housing crisis to "prove" a point about affordability is laughable.

As I already proved, there are houses in the 100s available right now, and were arguably in a bubble again.