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Agreed, but you’d be surprised how much money you can save if you (the general you, not you specifically) get out of debt. Pay down the credit cards and buy stuff only after you save up for it. I’ve seen people buy new cars every two years. Not wise.
I realize that living is expensive depending on where you are, but it can be done.
Problem I’ve seen is people buy expensive stuff they shouldn’t because they feel they “deserve it “ .
In a place with high housing costs like L.A a lot of people live with family but they drive luxury cars. They have the mentality of “well I can’t buy a house so might as well enjoy the money I work for “ thing is cars are liabilities and depreciation very quickly .
Instead they could be buying property out of state that they could afford , putting the money into index or mutual funds etc
Sure it’s not a guarantee their investment will go up a lot even short term . But the luxury car is pretty much guaranteed to depreciate rapidly .
Agreed, but you’d be surprised how much money you can save if you (the general you, not you specifically) get out of debt. Pay down the credit cards and buy stuff only after you save up for it. I’ve seen people buy new cars every two years. Not wise.
I realize that living is expensive depending on where you are, but it can be done.
Of course it can be done; I simply disputed the idea that it is “easy peasy”. Even for someone with disciplined spending and no debt, it can take many years to save that much.
Yeah, some people have inherited family money and of course it's never mentioned. I remember one episode with a couple in their early 30s, who were moving to the Virgin Islands to pursue their dream of opening a sandwich shop. Their budget? $900k.
Somewhat related was another episode that featured a woman "moving to London to pursue a Master's degree in English." This phrase was repeated several times, and they were looking at pretty expensive apartments. Only once in passing did the narrator mention the woman's husband "going off to his banking job." So the real story was a woman following her husband's high paying job and doing a Master's in order to fill her time. But that story has been done to death, so the show tried to flip it around.
When I lived in Newport Beach California, I knew a realtor who specialized in one particular area where all the homes were in the multi-millions. there were tons of these houses and she did a brisk business. I asked her where all the money came from and she said it is a mix of: .com owners from San Francisco who got out in time and wanted to move to sunshine (this was a while back, today's equivalent would probably be crypto currency); foreign (and some local) corporations who would just leave the house sitting empty 90% of the year; inherited money; entertainers or sports figures who want another house; and people trading up as their house gained value and/or they became more successful. In that order of commonality.
Of course it can be done; I simply disputed the idea that it is “easy peasy”. Even for someone with disciplined spending and no debt, it can take many years to save that much.
Investments. Saving $100K on straight cash is an almost impossible task, but a decade of good investment strategies in stocks, bonds, etc. can make it happen.
Problem is many people I know have no clue how to go about doing this. They barely know how to pick a good fund in their 401K.
OP here. WOW!!! I cannot believe this thread is still going.
Funny enough, I started this thread back when hubby and I began house-hunting and was surprised to find how not very far our meager earnings could get us. But we did end up with a great foreclosure at the end of 2011 during a huge housing bust and downturn in prices.
Almost 7 years later, we are in better financial state and the value of our home has grown tremendously. We are considering staying another 5 years and estimate that by then we should have well over $100k in equity and should be able to comfortable move up to a $300k home if we desire. $400k is still way too tight for us but we have a better understanding now of how equity and buying and selling at the right times can work out for you.
OP here. WOW!!! I cannot believe this thread is still going.
Funny enough, I started this thread back when hubby and I began house-hunting and was surprised to find how not very far our meager earnings could get us. But we did end up with a great foreclosure at the end of 2011 during a huge housing bust and downturn in prices.
Almost 7 years later, we are in better financial state and the value of our home has grown tremendously. We are considering staying another 5 years and estimate that by then we should have well over $100k in equity and should be able to comfortable move up to a $300k home if we desire. $400k is still way too tight for us but we have a better understanding now of how equity and buying and selling at the right times can work out for you.
Thanks all who replied!
Thats good to hear . I didn’t realize how old the original thread actually was .
$400,000 meant more back in 2011 . I know prices in CA have doubled since then or more .
In CT, a $400k house puts you in the "one percenter" class. My wife works as a banker in one of our well to do towns..... I'm looking for employment, but when I get that, at a higher wage than she, we can't afford the town she works in. My sister lives in said town. Between their home, cars, a Harley, and a camper, I figure her property tax bill alone is probably $13,000 per year. $1,100 per month is what most middle income people can afford for P&I and taxes, and that's only her tax bill.
Over generalizing CT a bit. Many sections of the State a $400k home would not place you in the 1%'er class or anywhere close to it. Right down the highway from you in Southington (strong middleclass town), a stripped down spec house in a new development (Woodland Heights) are starting at $445k. The other developer in town is starting even higher.
Over generalizing CT a bit. Many sections of the State a $400k home would not place you in the 1%'er class or anywhere close to it. Right down the highway from you in Southington (strong middleclass town), a stripped down spec house in a new development (Woodland Heights) are starting at $445k. The other developer in town is starting even higher.
And the guy who is a middle manager, and his wife is an elementary school teacher, and they have a toddler and want another kid, how do they afford that? Let alone the guy who is a blue collar hands on guy with a stay at home mom with a part time job working retail, which is the more common situation?
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