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Or maybe a rich relative died and left them $100,000 which they used as a downpayment, so they needed only a mortgage of $200K. In addition to the scenarios described by Humanoid and myself, there are other scenarios that would also support a young couple affording a $300K house. Granted, it's not the norm, but there are young couples who can legitimately afford a $300,000 home.
Its not that odd that a young couple could afford a $300k house. If both have high skill jobs that bring in $60k+ each, then a $300k house is totally affordable.
Ah but here's the catch. In the world I live in the math is different. In my world 120K + 0K = 120K and thence 60K + 60K ≠ 120K ...it = 60K The failure of Americans to grasp this economic paradox, compounded with their failure in recognizing AND accepting the erosion of their purchasing power in the last 20 years is what has given rise to the current state of affairs. One may not agree with my math, but the current state of things tends to agree with my position....A household is only benefited by the presence of two incomes when one income is all that is required to fulfill the household. However when TWO incomes are required to afford said household, you cannot afford said household. Dual income households is the fundamental proof of the fallacy of home affordability in this country, yet people look at this with a glazed over look on their faces, it amazes me.....
Ah but here's the catch. In the world I live in the math is different. In my world 120K + 0K = 120K and thence 60K + 60K ≠ 120K ...it = 60K The failure of Americans to grasp this economic paradox, compounded with their failure in recognizing AND accepting the erosion of their purchasing power in the last 20 years is what has given rise to the current state of affairs. One may not agree with my math, but the current state of things tends to agree with my position....A household is only benefited by the presence of two incomes when one income is all that is required to fulfill the household. However when TWO incomes are required to afford said household, you cannot afford said household. Dual income households is the fundamental proof of the fallacy of home affordability in this country, yet people look at this with a glazed over look on their faces, it amazes me.....
I agree wholeheartedly. My friend's daughter and her husband bought an expensive house because they had "high skilled/high paying jobs." She got pregnant and when the baby was born he had numerous medical conditions that required the mother to take a year leave of absence. High medical bills (even with insurance), and loss of one income put them out of the expensive house. I agree that COUNTING on two incomes, even though "everyone is doing it," is risky.
Blaming HGTV for the housing bubble is outlandish, but denying that advertising can effect people's behavior (even intelligent people) is likewise outlandish.
Billions a year is spent on advertising precisely because we have a variety of emotions that can be taken advantage of. Sure humans can be rational, we have a huge frontal cortex, but we still have all are more primitive neural structures that we share with other animals (the brain stem etc). It is appealing to these primitive impulses that is highly successful in advertising because they can effect ones behavior in ways that are rather subtle and not always pick up on my the more "rational part of the brain".
HGTV is very interesting from an advertising perspective, they turned it into a 24/7 ad machine that rather successfully took advantage of human psychology. One has to respect its brilliance from a marketing/business perspective, but for society as a whole its bad.
HGTV created a feedback loop. Maybe people in this forum are independent thinkers, but most Americans-- sadly-- aren't. Seeing something on tv, especially if it's presented as a reality show, normalizes it. It gives the perception that "everyone" is doing it. And yes, the sheeple fell for it.
Did HGTV cause it? No. Contributing factor? Yes.
I never watched HGTV. But I'd watch it now if someone did a follow-up show that re-introduced viewers to all the same people-- now underwater, trapped, foreclosed on, divorced, etc., etc., etc.
This is a very good point. Based on the general tone of posts on this and other forums on this board people who come here look and think first. So seeing all the granite and steel didn't impress. But the general herd is status consious and when you keep showing shiny new things they want them. TV can't put a value in your head but it sure can feed it.
I hope Design on a Dime is still on... its a really useful show about how to reuse and remake junk into stuff for practically nothing, which would be a very good thing to know now.
Its not homes, but the rational that all the home shows with the granite and steel foster is exemplified by What not to Wear.... Maybe the victum doesn't have the best fashion sense, and could use some clothes for work or special occasions, but geesh, take away ALL the old favorites? It's the same rational as with the kitchen. Nothing is good enough and it all has to go.
I'd like to see a "followup" show too... One of those Where Are They Now exposes where the pulic is gleefully awaiting the trainwrecks. Just don't do a "poor me" approach. Nobody forced you to sign on the dotted line.
I love watching HGTV and those house shows on TLC. I find it so entertaining.
Today on Property Virgins, this couple saw a townhouse that was listed for 280 and in the same complex the next day a short sale for the same floorplan was listed for 220K. The realtor Sandra convinced them (barely had to twist the couple's arms) to put an offer on for 240K!! Without even seeing it!!! The couple was so excited because they thought they were getting a great deal since it was so much lower priced than the other home.
I wish we could see the followup shows also, I would love to see how much that house is worth now...
TV and advertising can definitely create a fake world full of "the Joneses", where everyone lives in a Pottery Barn decorated house full of stainless steel and granite and media rooms. I don't mind the flipping, as a poster above said, it can be a business when done thoughtfully. What gets me is the idea that because your house isn't Feng Shui, it's sh^t. Annoying.
Very interesting topic. I saw several it few times when fliping channels and found myself thinking what planet the people were on! The "experts" were telling people to put take a loan and put 10-20K into kitchens, baths etc and you are sure to get that money back. I thought I was watching a show from the 90's or something but no, it was 2008.
I read where Flip This House is over. Yeah! Always fumed at that one. I would take exception with Design on a Dime. It's wonderful if you don't have a lot of money. If only MORE people would take from that and fix up what they have cheaply with a little creativity over House Hunters.
(Now if What Not to Wear would go off with the flippers)
Flip This House is played over and over again over here in Sweden on the Discovery Travel and Living channel. Definitely the episodes are from a few years ago. A British program called Dream Homes is another one with nothing but re-runs. The Dream Home is now really just a dream.
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