This housing market is unsustainable. Why? And when will things cool down again? (Phoenix: to buy, incomes)

[FirebirdCamaro1220]

Originally Posted by Nasudesu

Please don’t hate all landlords. I am not about to say that those getting top dollars for their rented properties is wrong, but there are some like us who keep our rents down to benefit long-term tenants. We do not care or worry that we are making maximum top dollars. But, I don’t begrudge those who do.

What would your take home pay be? Any chance of picking up extra jobs just for savings or investing in stocks since there are two of you? It does not have to be long term. Even 2 years.

I think it is very hard now for younger generation to break in with typical background and job skills. But, you can always work harder and make some adjustments in life to get started.

I work full time in California (read: well over 40 hrs per week) and am making a salary of $87k per year, we aren't hurting by a long shot, but still don't have 20% in cold hard cash for a down payment on a condo or sfh either

I work in California because I was able to get a 35% boost in my pay compared to staying local in Phoenix

[Katera]

Ok, I'm an idiot LOL. SSG=SCG (aka Sun City Grand). Mercy lol


Also, the clubs and lifestyle in a place like SCG are VERY active. Go by the premier softball park and it is packed with people playing. Not to mention the golf here is incredible. There is a SCG ATV club etc etc...

So they may be a lot of things, but a retirement community is not an accurate description anymore. It's why they officially go by "Active adult community" now. And with SCG being 45+? Those people still have a lot of life left in them lol.

[MN-Born-n-Raised]

Originally Posted by Katera

Ok, I'm an idiot LOL. SSG=SCG (aka Sun City Grand). Mercy lol


Also, the clubs and lifestyle in a place like SCG are VERY active. Go by the premier softball park and it is packed with people playing. Not to mention the golf here is incredible. There is a SCG ATV club etc etc...

So they may be a lot of things, but a retirement community is not an accurate description anymore. It's why they officially go by "Active adult community" now. And with SCG being 45+? Those people still have a lot of life left in them lol.

SCG is a very nice spot to call home. IMO, it easily beats SCW and crushes SC. Others will want something closer in or lower priced. So there are trade-offs.

SCG would not work for us because as I have said too many times before, the "Sound Of Freedom" gets under my skin. Yet 130,000 other people in Surprise don't seem to mind the jet noise. All things being equal, I prefer the East side of town too. All of these items are subjective. It is definitely more spendy to be on the East side of town.

[Sno0909]

Originally Posted by Katera

Ok, I'm an idiot LOL. SSG=SCG (aka Sun City Grand). Mercy lol


Also, the clubs and lifestyle in a place like SCG are VERY active. Go by the premier softball park and it is packed with people playing. Not to mention the golf here is incredible. There is a SCG ATV club etc etc...

So they may be a lot of things, but a retirement community is not an accurate description anymore. It's why they officially go by "Active adult community" now. And with SCG being 45+? Those people still have a lot of life left in them lol.

I have a 45 year old friend that is about to have his first kid.

[asufan]

Originally Posted by FirebirdCamaro1220

I work full time in California (read: well over 40 hrs per week) and am making a salary of $87k per year, we aren't hurting by a long shot, but still don't have 20% in cold hard cash for a down payment on a condo or sfh either

I work in California because I was able to get a 35% boost in my pay compared to staying local in Phoenix

Most first time buyers don't have more than 5-10% to put down, it's the move up buyers that usually have 20% or more. At $87k you can probably afford a $300k house with 5% down pretty comfortably.

[Sno0909]

Originally Posted by asufan

Most first time buyers don't have more than 5-10% to put down, it's the move up buyers that usually have 20% or more. At $87k you can probably afford a $300k house with 5% down pretty comfortably.

Beating a dead horse. He insists on having 20% down for whatever reason. So he is stuck renting for many more years to come.

[MN-Born-n-Raised]

Originally Posted by Sno0909

Beating a dead horse. He insists on having 20% down for whatever reason. So he is stuck renting for many more years to come.

I assume he is fixated on PITI. If he bought in March of 2020, he could have bought the interest rate UP (no closing costs), wait for the place to appreciate by 20%, then refinance without losing $$'s on the upfront mortgage costs. When it appraises for 20% more, and in this case, a year later or March of 2021, then he could refinance the mortgage and do away with the MIP/PMI. Winner! Hell, if he put 5% down, it doesn't even need to appreciate another 20%. If he had 8% down, well, it would take even less time.

Our DD is looking for a place as we speak. That is my free advice to her. She will have 5% down as she is just starting out. This isn't rocket science. But a lot of people reading this post won't have a clue what I just posted.

Option 2. Wait and wait and wait. that way, you can watch housing get out of control in front of your eyes.

[FirebirdCamaro1220]

Originally Posted by Sno0909

Beating a dead horse. He insists on having 20% down for whatever reason. So he is stuck renting for many more years to come.

For two reasons. One, don't want PMI, and two want to be more competitive and not have to settle

[DetroitN8V]

Originally Posted by FirebirdCamaro1220

For two reasons. One, don't want PMI, and two want to be more competitive and not have to settle

Paying PMI as a means to enter the market should make fiscal sense. How much do you actually think PMI is? It shouldn’t a big deal. And with the way values are rising, you’ll be able to refi it away in no time. The focus should be entering the market ASAP. Sitting on the sidelines is costing you equity and rent is expensive versus a mortgage.

[asufan]

PMI is often washed away by loan amortization. For example, you're paying $100 a month in PMI, but the principal on your loan went down $200 in that time. Financially it makes sense if that is what you have to do. Of course appreciation is another factor which also can make the PMI amount almost meaningless, but there's no guarantee the prices will continue increasing.