Median price for Phoenix house goes up to $450,000 (Surprise: weddings, buying)

[FirebirdCamaro1220]

Originally Posted by MN-Born-n-Raised

Yea! The millennials cannot afford to buy homes when things are so expensive! And the evil main steam media is lying too. See how they lie! lol Here is the truth https://www.wsj.com/articles/millenn...rs-11598543344

"The group, long viewed as perennial home renters, is now emerging as a driving force in the U.S. housing market’s recent recovery".

I don't personally know one person who isn't older than me who has bought a home. One of my fiancee's friends was considering buying, even had a good down-payment saved, but the Las Vegas housing market also shot off like crazy, so she decided like me to wait it out

[FirebirdCamaro1220]

Originally Posted by Burning Madolf

For the past 20-25 years or so the Feds have made it unbelievably easy to get a mortgage, probably in history.
You can't or won't borrow.
You want the government to get even more involved.
You want to copy the British model or some such nonsense.
And, when you can't think of anything else, out comes the straw man "boomers are to blame" for your lack of intestinal fortitude to buy.

All the while you sit at home watching the market pass you by.

It can't go up forever, people aren't having their incomes increase at the same rate that home prices have appreciated. It's simple math

Aside from that, what is it about becoming a property owner that makes people so cruel, callous, and cocky? If buying a home will turn me into the same type of person you guys are, maybe I shouldn't buy

[stub303]

Originally Posted by FirebirdCamaro1220

Not with just $5k for a down-payment, that's only 1% at current prices. That's what I have to work with right now in savings.

Honestly, buying a home should be the least of your concerns.

Any financial planner is going to recommend having at least an 8 month emergency fund of living expenses not including reserves for repairs and maintenance on a home.

As an example, I'm a homeowner and last week my water softener, water heater, and RO system failed within 3 days. In addition to replacing these items, I had to re-plumb 4 valves. This little episode cost just under 4 grand on a Tuesday afternoon. Then on Wednesday, my refrigerator died. Spent $2,200 replacing that as it was unrepairable. $6,600 in random expenses in <24 hours.

My AC is 17 years old and due to the changes in free-on, it is on life support and the estimate is between 9-11K to replace it.

Homeownership is much more than a downpayment and I am not sure how you expect to maintain a home with such little reserves.

[FirebirdCamaro1220]

Originally Posted by stub303

Honestly, buying a home should be the least of your concerns.

Any financial planner is going to recommend having at least an 8 month emergency fund of living expenses not including reserve for repairs and maintenance on a home.

As an example, I'm a homeowner and last week my water softener, water heater, and RO system failed. In addition to replacing these items, I had to replumb 4 valves. This little episode cost just under 4 grand on a Tuesday afternoon. Oh, and the next day, my refrigerator died. Spent $2,200 replacing that as it was unrepairable. $6,600 in random expenses in <24 hours.

Not sure how you expect to maintain a home with such little reserves.

I had no savings 1 year ago, so it's a start. And I was mainly able to start building savings due to my job which I started in January, I'm making over $2k per month (before taxes) more than I was last year. My car will be paid off in less than 2 years, then that's another $500/month that can go in savings, etc

[stub303]

$500/month on a car!?!? I'm a high earner and even I won't spend that much on a payment over 36 months. You're missing the opportunity cost of investing that money!

As an example most Americans go through life with a constant car payment. A $554 car payment spent on car could be put into a money market account (many earn 12%). After 40 years, you'd have over 5Million in cash vs another broken down vehicle.

People don't realize the power of investing, and most will pay off a car and then a few years later go right back into pissing money away on payments of a depreciating asset. The rich get richer, the poor stay poor.

MN-Born-n-raised said it. "People are where they are for a reason".

[FirebirdCamaro1220]

Originally Posted by stub303

$500/month on a car!?!? I'm a high earner and even I won't spend that much on a payment over 36 months. You're missing the opportunity cost of investing that money!

As an example most Americans go through life with a constant car payment. A $554 car payment spent on car could be put into a money market account (many earn 12%). After 40 years, you'd have over 6.5Million in cash vs another broken down vehicle.

People don't realize the power of investing, and most will pay off a car and then a few years later go right back into pissing money away on payments of a depreciating asset. The rich get richer, the poor stay poor.

MN-Born-n-raised said it. "People are where they are for a reason".

First, I put $14k down on the car, so I've never been upside down it, 2nd, I bought it used, 1 year old, 3,600 miles, and $10k cheaper cheaper if I bought it new, 3rd, $35/month of the payment is GAP protection, so god forbid it gets totalled, I'm not SOL.

And 4th, I'm a car enthusiast, and see that the days of the V8 powered muscle car are coming to an end with all the Tesla's and Prii being shoved down our throats, so I grabbed one while I still could. Will probably be the final gasoline powered car I ever buy

[stub303]

Got it. So not only was it a stupid financial decision, but an emotional one at that. Sorry dude. Can't really feel sorry that you spent your money on a depreciating asset of a toy vs investing it wisely. Enjoy that car and those gas prices!

[Burning Madolf]

Originally Posted by FirebirdCamaro1220

It can't go up forever, people aren't having their incomes increase at the same rate that home prices have appreciated. It's simple math

Aside from that, what is it about becoming a property owner that makes people so cruel, callous, and cocky? If buying a home will turn me into the same type of person you guys are, maybe I shouldn't buy

Wait, you said you were a realist. I'm just keepin it real.

Now, back to the program.

So you're not buying. Ok, won't argue with that.
But, if there's a big sell off are you going to be prepared to step in? And if you do step in, at what point do you pull the trigger? 10% sell off? 20%? 30%? Buying a falling market can be just as tricky while playing the same types of games on your head.
Instead of trying to convince the CD community that we should get the government more involved in the housing market, your energy might be better spent preparing for the inevitable pull back: how to recognize it, how you take advantage of it and when to finally jump in. There might even be people here who can help.

Seems easy in hindsight, but if you saw what was going on in housing after the collapse 10+ years ago, you might be a little surprised at how scary it can be spending any amount of money on a house.

[Burning Madolf]

Originally Posted by stub303

$500/month on a car!?!? I'm a high earner and even I won't spend that much on a payment over 36 months. You're missing the opportunity cost of investing that money!

As an example most Americans go through life with a constant car payment. A $554 car payment spent on car could be put into a money market account (many earn 12%). After 40 years, you'd have over 5Million in cash vs another broken down vehicle.

People don't realize the power of investing, and most will pay off a car and then a few years later go right back into pissing money away on payments of a depreciating asset. The rich get richer, the poor stay poor.

MN-Born-n-raised said it. "People are where they are for a reason".

Don't hold out man. Fork over the info!

[slowdude222]

Same old lie; get a college degree and work more. Ponzi scheme to get people to go in student loan debt and pay taxes . George Carlin said it best, there is a good old boy's club and we are not in it. Funny that places like Amazon and GE pay little to no taxes. Funny how politician's and their families get very rich on a public servant's salary. By the way, over 70% of all people with a college degree do not have a career in their what they majored in college.