Are there signs of people leaving Boston for cheaper parts of the state yet? (Marshfield: credit rating, loans)

[massnative71]

Originally Posted by lrfox

She's late 20s and I'm mid 30s and three years ago we though we'd never be able to buy in Boston (or Cambridge, Somerville, Brookline, etc.). While Jeffries Point is hardly Back Bay, we were able to swing it this year (even with a guest bedroom/office). We are under $200k combined HHI. The key for us was patience. We were able to create a budget that allowed us to put money aside for a down payment. in 2.5 years we saved enough for a down payment that essentially enables us to pay less for mortgage/taxes/homeowners insurance than we had been paying in rent.

You don't need to necessarily be making a fortune to buy inside of 128. You do need to be in a position where you can put money aside consistently enough to accumulate a reasonable down payment. Income is obviously the most important aspect of building savings, but there are a lot of other factors. There are people making under $50k, opting to live with their parents rent-free, driving a 10 year old car with no car payment, and putting $1k or more per month. There are people making $100k, spending $1,800 per month on a studio/1br, paying $400/mo on a car payment, going out to dinner regularly, buying all the things, and maybe putting away $100 or so (if that) per month.

Frankly, I wouldn't have been in a position to purchase a condo here without the boost from dual incomes. At least not for quite some time. So it's obviously harder for individuals on a modest salary. But it's certainly fair to say "others can too." Maybe not everyone (there is real inequity in the housing market here), but many people can, especially if they're patient and smart about budgeting/saving with an eye on long term goals.

My point was that the "median" household makes 88K, the individual less. For every person making more than that, someone is making less. Many have additional burdens like student loans or childcare costs, and/or don't have living with their parents till they are 30 as a viable option. Making a blanket statement such as "you will find something eventually", is not only unrealistic but can also come across as insensitive.

[id77]

Originally Posted by lrfox

She's late 20s and I'm mid 30s and three years ago we though we'd never be able to buy in Boston (or Cambridge, Somerville, Brookline, etc.). While Jeffries Point is hardly Back Bay, we were able to swing it this year (even with a guest bedroom/office). We are under $200k combined HHI. The key for us was patience. We were able to create a budget that allowed us to put money aside for a down payment. in 2.5 years we saved enough for a down payment that essentially enables us to pay less for mortgage/taxes/homeowners insurance than we had been paying in rent.

You don't need to necessarily be making a fortune to buy inside of 128. You do need to be in a position where you can put money aside consistently enough to accumulate a reasonable down payment. Income is obviously the most important aspect of building savings, but there are a lot of other factors. There are people making under $50k, opting to live with their parents rent-free, driving a 10 year old car with no car payment, and putting $1k or more per month. There are people making $100k, spending $1,800 per month on a studio/1br, paying $400/mo on a car payment, going out to dinner regularly, buying all the things, and maybe putting away $100 or so (if that) per month.

Frankly, I wouldn't have been in a position to purchase a condo here without the boost from dual incomes. At least not for quite some time. So it's obviously harder for individuals on a modest salary. But it's certainly fair to say "others can too." Maybe not everyone (there is real inequity in the housing market here), but many people can, especially if they're patient and smart about budgeting/saving with an eye on long term goals.

These are all valid points. The key to getting in is going to be putting in a significant down payment (if you don't have high income), and there's a lot of ways to save that money. Not having a car payment is a big one. Living like you're in the FIRE movement is another. There's something to be said about those who came out of the college system without a mountain of student loan debt as well.

What's really helped us in the last few years was saving all we could and investing those savings. $10k worth of AAPL in 2015 is worth over $46k today. $10k of MSFT is worth over $40k. $10k of AMZN is worth over $70k now. That's some serious growth in a short period of time and is enough to turn a moderate nest egg into a substantial one.

[Shizim]

Originally Posted by Lampert

Just out of curiosity what is considered inside 128? Gloucester is technically inside 128, would you consider that "inside 128?"
South I think the "border" becomes 93 and then Quincy but North?

for me its towns inside or with 128 running through them up to and incl Peabody. once you get past the 95 split you are getting out there.

[BostonBornMassMade]

Originally Posted by Shizim

for me its towns inside or with 128 running through them up to and incl Peabody. once you get past the 95 split you are getting out there.

same. Randolph Braintree Quincy and Canton count as inside 128 to me even though they're to the south and not "inside" 128. Its runs through them, and local roads are pretty direct into the city of Boston.

[Shrewsburried]

Originally Posted by id77

What's really helped us in the last few years was saving all we could and investing those savings. $10k worth of AAPL in 2015 is worth over $46k today. $10k of MSFT is worth over $40k. $10k of AMZN is worth over $70k now. That's some serious growth in a short period of time and is enough to turn a moderate nest egg into a substantial one.

You see growth, I see the destruction of the USD. But hey, don't fight the Fed and ... most importantly ... don't be poor.

[Lampert]

Yeah makes sense to include town that have 128 running through them. And I think Beverly is where thick suburban settings stop quite abruptly so it's probably a good spot to but a "border there".

[GeoffD]

Originally Posted by massnative71

My point was that the "median" household makes 88K, the individual less. For every person making more than that, someone is making less. Many have additional burdens like student loans or childcare costs, and/or don't have living with their parents till they are 30 as a viable option. Making a blanket statement such as "you will find something eventually", is not only unrealistic but can also come across as insensitive.

The median male salary is $89k. The median female salary is $66k. The housing market pricing is aligned with dual income couples. Looking at transactions where Irfox is buying/bought on Redfin, I see 2 bedroom condos that sold this year in the $400s. With a good credit rating, the median dual income couple at ~$150k with a respectable down payment can buy into that market. Interest rates are really low.

If you’re in the forever alone crowd or married trailer trash Barbie, you need to be pretty high income. The usual complete your education, launch your career, then marry your socioeconomic equal, and stay married is the recipe for success.

[Shrewsburried]

Originally Posted by GeoffD

The median male salary is $89k. The median female salary is $66k. The housing market pricing is aligned with dual income couples. Looking at transactions where Irfox is buying/bought on Redfin, I see 2 bedroom condos that sold this year in the $400s. With a good credit rating, the median dual income couple at ~$150k with a respectable down payment can buy into that market. Interest rates are really low.

If you’re in the forever alone crowd or married trailer trash Barbie, you need to be pretty high income. The usual complete your education, launch your career, then marry your socioeconomic equal, and stay married is the recipe for success.

To this point, I know a senior automotive tech on a single income (temporary until wife returns to the labor force) who just bought a $470K home ... albeit with a healthy 20%+ down payment. His income is just short of median + OT.

Rates are indeed that cheap. Anyone who bought during Volcker, or post S&P meltdown, should feel pretty good about their RE holdings right now. If you bought last week ... godspeed.

[BosYuppie]

Originally Posted by GeoffD

The median male salary is $89k. The median female salary is $66k. The housing market pricing is aligned with dual income couples. Looking at transactions where Irfox is buying/bought on Redfin, I see 2 bedroom condos that sold this year in the $400s. With a good credit rating, the median dual income couple at ~$150k with a respectable down payment can buy into that market. Interest rates are really low.

If you’re in the forever alone crowd or married trailer trash Barbie, you need to be pretty high income. The usual complete your education, launch your career, then marry your socioeconomic equal, and stay married is the recipe for success.

I can vouch for marrying up.

[simplexsimon]

Originally Posted by Shrewsburried

You see growth, I see the destruction of the USD. But hey, don't fight the Fed and ... most importantly ... don't be poor.

You all in on gold or international or both?