Welcome to City-Data.com Forum!
U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > U.S. Forums > New York > Long Island
 [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)
Closed Thread Start New Thread
 
Old 04-23-2019, 01:05 PM
 
2,759 posts, read 2,021,115 times
Reputation: 5005

Advertisements

Quote:
Originally Posted by markjames68 View Post
Putting down 30% worked out well when you could buy a house that cost around 2.5x the average annual salary. That ratio is now 4:1 or higher.

Unless you are able to live at home for an extended period or get gifted the down payment it's become increasingly difficult to save even 20% for new homebuyers.
Absolutely, no argument there, but the current state of affairs is why so many people end up with their finances balanced on the proverbial head of a pin via overextension. And/or why they find themselves in a perpetual cycle of debt.

For example my son was able to put 40% down on his house about a decade ago when he came out of college which means he's recently started to make serious inroads on the principal of his 20-year mortgage. In ten years he'd have owned it free and clear before age 50, a very good place to be in financially. But he and DIL are now looking to upgrade to a waterfront house that will knock them back down to probably 25% equity and saddle them with a large 30- or 35-year note. To me that's foolish (esp now that they have a child who will need college in 18 years) but hey it's their life/their money, not mine.

 
Old 04-23-2019, 02:16 PM
 
12,769 posts, read 18,277,441 times
Reputation: 8762
Quote:
Originally Posted by BBCjunkie View Post
Absolutely, no argument there, but the current state of affairs is why so many people end up with their finances balanced on the proverbial head of a pin via overextension. And/or why they find themselves in a perpetual cycle of debt.

For example my son was able to put 40% down on his house about a decade ago when he came out of college which means he's recently started to make serious inroads on the principal of his 20-year mortgage. In ten years he'd have owned it free and clear before age 50, a very good place to be in financially. But he and DIL are now looking to upgrade to a waterfront house that will knock them back down to probably 25% equity and saddle them with a large 30- or 35-year note. To me that's foolish (esp now that they have a child who will need college in 18 years) but hey it's their life/their money, not mine.
I have no interest in a large house, lol. More to clean … no thanks … b/c I mean after all, a woman's place is in the home right?


I think it was smart of your son to buy though out of college instead of rent. It put him ahead of a lot of others.


Whether he buys something else or not, it's better than renting. I have some friends in their 40's who have always rented and will probably will never own.
Closed Thread




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 > U.S. Forums > New York > Long Island
View detailed profiles of:

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