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As a low earner, I never understood why anyone would 'strategically' default and walk away from a home. I'd never do it because I know that with my earning power, if I ever owned a home I'd hold on for dear life because I'd never again have enough with which to buy.
I was speaking with a couple that went through the Great Depression and they have the same sentiment...
People would do anything not to let the bank take the house... take in boarders, bring in laundry, put the kids to work, start a vegetable garden... just to keep the roof over their heads.
Maybe it was more a case of easy come easy go... many today had very little down and many were relatively new to owning... the courtesy clerk at the local Safeway bought several homes with another Safeway employee... I think they had 5 altogether and lost all of them.
For others it was an investment that was no longer paying dividends... in many markets it got to the point one could rent for half the cost of owning... all of which was true and as everyone now knows was short sighted... speaking of the California market.
So many had said California is done... finished... never to be heard from again... maybe it was mass hysteria?
Last edited by Ultrarunner; 02-21-2016 at 10:22 AM..
Reason: typo
Checking in just to update everyone on my situation over here.
I woke up again this morning in my 'luxury item' (house).
Although hung over on a whole new level, I managed to slam another shot of Jagermeister to get me back in the zone before I have what I call a Sky-O-Wake-Up, which is double shot of Jim Beam with Sprite and crushed ice.
Anyway, while sitting in my luxury item, I found my property tax bill that is due in April and somehow this place doesn't feel as luxurious as it did earlier. That and the fact that the roof needs to be replaced next year and realizing that I have about two decades left on the mortgage has me still somewhat confused about the 'luxury' aspect of this place.
I am starting to think that the investor class that invests in mortgage backed securities might be living in slightly more luxury than me when I consider the amount of interest paid during the first ten years I have had this mortgage.
As I stood on my deck looking out towards an apartment building in the distance, I came to the conclusion that a certain select group of tenants that live there are on Section 8 and in most cases they do not even have to pay to live there. I mean, it is not as nice as my place, but still. . . . . . they don't have to pay any rent.
There is a possibility that not having to pay to live anywhere might be more of a form of luxury than having to pay a mortgage, property taxes and insurance on a place.
I don't even have any kids but most of the property taxes that I pay go to pay for public schools. This is strange. In addition to being convinced that I have a luxury item (that I don't even have a title for), I am forced to pay for public schools despite not having any kids.
As I looked earlier over at my neighbors house and noticed their new $40,000 (+) SUV and wondered how they paid for it, I realized that they have both of their kids in public school and do not have to cover the $14,000 or more per child annually to have them educated, which would be about $28,000 a year for both of them. So the SUV purchase must have been a logical response to the fact that their kids are educated for free by taxpayers.
Now, close to $30,000 in free education from K-12 for two kids. Now THAT is a 'luxury item'.
Checking in just to update everyone on my situation over here.
I woke up again this morning in my 'luxury item' (house).
- my property tax bill that is due in April
- roof needs to be replaced
- two decades left on the mortgage
select group of tenants that live there are on Section 8 and in most cases they do not even have to pay to live there. I mean, it is not as nice as my place, but still. . . . . . they don't have to pay any rent.
LOL but don't you know, they want to live in a luxury place like yours but "they don't want to pay for it".
Oh and how do you like that "not so affordable" catastrophic health care insurance that is called Obamacare. I get to pay $800 a month while the people in section 8, who get the same care pay nothing.
It's all screwed up. When government intervenes, in an effort to help the poor it makes it worse, a lot worse.... Hold on to your wallet because they're coming to dip into it!
Checking in just to update everyone on my situation over here.
I woke up again this morning in my 'luxury item' (house).
Although hung over on a whole new level, I managed to slam another shot of Jagermeister to get me back in the zone before I have what I call a Sky-O-Wake-Up, which is double shot of Jim Beam with Sprite and crushed ice.
Anyway, while sitting in my luxury item, I found my property tax bill that is due in April and somehow this place doesn't feel as luxurious as it did earlier. That and the fact that the roof needs to be replaced next year and realizing that I have about two decades left on the mortgage has me still somewhat confused about the 'luxury' aspect of this place.
I am starting to think that the investor class that invests in mortgage backed securities might be living in slightly more luxury than me when I consider the amount of interest paid during the first ten years I have had this mortgage.
As I stood on my deck looking out towards an apartment building in the distance, I came to the conclusion that a certain select group of tenants that live there are on Section 8 and in most cases they do not even have to pay to live there. I mean, it is not as nice as my place, but still. . . . . . they don't have to pay any rent.
There is a possibility that not having to pay to live anywhere might be more of a form of luxury than having to pay a mortgage, property taxes and insurance on a place.
I don't even have any kids but most of the property taxes that I pay go to pay for public schools. This is strange. In addition to being convinced that I have a luxury item (that I don't even have a title for), I am forced to pay for public schools despite not having any kids.
As I looked earlier over at my neighbors house and noticed their new $40,000 (+) SUV and wondered how they paid for it, I realized that they have both of their kids in public school and do not have to cover the $14,000 or more per child annually to have them educated, which would be about $28,000 a year for both of them. So the SUV purchase must have been a logical response to the fact that their kids are educated for free by taxpayers.
Now, close to $30,000 in free education from K-12 for two kids. Now THAT is a 'luxury item'.
Checking in just to update everyone on my situation over here.
I woke up again this morning in my 'luxury item' (house).
Although hung over on a whole new level, I managed to slam another shot of Jagermeister to get me back in the zone before I have what I call a Sky-O-Wake-Up, which is double shot of Jim Beam with Sprite and crushed ice.
Checking in just to update everyone on my situation over here.
I woke up again this morning in my 'luxury item' (house).
Although hung over on a whole new level, I managed to slam another shot of Jagermeister to get me back in the zone before I have what I call a Sky-O-Wake-Up, which is double shot of Jim Beam with Sprite and crushed ice.
Anyway, while sitting in my luxury item, I found my property tax bill that is due in April and somehow this place doesn't feel as luxurious as it did earlier. That and the fact that the roof needs to be replaced next year and realizing that I have about two decades left on the mortgage has me still somewhat confused about the 'luxury' aspect of this place.
I am starting to think that the investor class that invests in mortgage backed securities might be living in slightly more luxury than me when I consider the amount of interest paid during the first ten years I have had this mortgage.
As I stood on my deck looking out towards an apartment building in the distance, I came to the conclusion that a certain select group of tenants that live there are on Section 8 and in most cases they do not even have to pay to live there. I mean, it is not as nice as my place, but still. . . . . . they don't have to pay any rent.
There is a possibility that not having to pay to live anywhere might be more of a form of luxury than having to pay a mortgage, property taxes and insurance on a place.
I don't even have any kids but most of the property taxes that I pay go to pay for public schools. This is strange. In addition to being convinced that I have a luxury item (that I don't even have a title for), I am forced to pay for public schools despite not having any kids.
As I looked earlier over at my neighbors house and noticed their new $40,000 (+) SUV and wondered how they paid for it, I realized that they have both of their kids in public school and do not have to cover the $14,000 or more per child annually to have them educated, which would be about $28,000 a year for both of them. So the SUV purchase must have been a logical response to the fact that their kids are educated for free by taxpayers.
Now, close to $30,000 in free education from K-12 for two kids. Now THAT is a 'luxury item'.
I'm not saying a house is luxory but simply because things come with high cost of ownership or maintenance doesn't mean they aren't luxory. A yacht or private jet are expensive to own does that mean they aren't luxory?
It shouldn't all go to rent. A single can rent a room for $1200/month even in the Bay Area. Even making $50k/year there should be room for savings.
That's way more rent than is recommend for that income level. You're also assuming little to no debt. If you are paying that much for a room on that income, go find somewhere more reasonable to live.
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