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Old 05-13-2021, 09:40 AM
 
Location: East Coast of the United States
21,645 posts, read 22,807,480 times
Reputation: 18069

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Quote:
Originally Posted by LaKings55 View Post
I'm single, I live in a very high COL area (homes start at over $700k, $500k for condos, with most sales getting $30k+ extra over asking), and I work in the public sector with a base salary of about $80k (not including benefits).
You need to pair up with a spouse who will raise your HHI.

You can't afford a house in a high COL area on a $80k salary.
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Old 05-13-2021, 10:38 AM
 
37 posts, read 11,011 times
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Quote:
Originally Posted by BigCityDreamer View Post
You need to pair up with a spouse who will raise your HHI.

You can't afford a house in a high COL area on a $80k salary.

Exactly, but that's never going to happen. Never getting married and never having kids offers me a lot of freedom. It's just a shame that so many in my generation (millennials) will never enjoy the generational wealth so many baby boomers did. There are exceptions of course, just as there are plenty of boomers in poverty, but still. There is a definite generational wealth gap, even compared to wealth the other still living generations had at the same age milestones. Can't help when your born, but my generation is going to have to reframe what the "American Dream" means to us.
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Old 05-13-2021, 11:46 AM
 
Location: San Diego, CA
2,480 posts, read 1,229,256 times
Reputation: 4169
Quote:
Originally Posted by LaKings55 View Post
Exactly, but that's never going to happen. Never getting married and never having kids offers me a lot of freedom. It's just a shame that so many in my generation (millennials) will never enjoy the generational wealth so many baby boomers did. There are exceptions of course, just as there are plenty of boomers in poverty, but still. There is a definite generational wealth gap, even compared to wealth the other still living generations had at the same age milestones. Can't help when your born, but my generation is going to have to reframe what the "American Dream" means to us.
Well that’s on you then. If you want to remain single for your freedom then accept life with a single income. And never say never. I’m Generation X and thought I’d remain single for the same reasons until I met a woman that was beyond what I could ever imagine in my late 30’s.

Both my parents were baby boomers, and both worked. As was the case for the overwhelming majority of my friends and family. My wife is a millennial (early 30’s), as are all her friends, and most are now homeowners too. This is mostly in San Diego and NYC, not exactly cheap places. The common theme is they all are married now. If you want to build wealth it’s a lot easier with a partner.

You can still buy and build wealth on your $80K salary (I’m assuming LA with your username and prices being thrown out). All my single friends bought 2bd condos at the max they could qualify for (even if you can’t afford it) and brought on roommates to help cover the mortgage. Some even rented put the master for extra cash. Some still own their original condos renting them out while taking the equity out for their current places. Others sold outright and used that for their house with their wives. Good luck.
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Old 05-13-2021, 11:50 AM
 
Location: East Coast of the United States
21,645 posts, read 22,807,480 times
Reputation: 18069
Quote:
Originally Posted by LaKings55 View Post
Exactly, but that's never going to happen. Never getting married and never having kids offers me a lot of freedom. It's just a shame that so many in my generation (millennials) will never enjoy the generational wealth so many baby boomers did. There are exceptions of course, just as there are plenty of boomers in poverty, but still. There is a definite generational wealth gap, even compared to wealth the other still living generations had at the same age milestones. Can't help when your born, but my generation is going to have to reframe what the "American Dream" means to us.
I am a gen-xer and my first “house” was a 1,000 square foot 2 bedroom condo I bought more than 20 years ago.

If you’re going to be single your whole life, then do you even need to live in a house?
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Old 05-13-2021, 11:54 AM
 
37 posts, read 11,011 times
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Quote:
Originally Posted by BigCityDreamer View Post
I am a gen-xer and first “house” I bought was a 1,000 square foot 2 bedroom condo more than 20 years ago.

If you’re going to be single your whole life, then do you even need to live in a house?

Nope, I'd gladly take a condo, but I can't compete for those either, even with a hefty down payment, no debt and immaculate credit. It's fine, it is what it is. I'm invested in real estate through other means, but I'll never enjoy true equity building. C'est la vie. I'll just grind it out in the public sector, take my pension and retire to a senior mobile home park or leave the country.

Last edited by LaKings55; 05-13-2021 at 12:02 PM..
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Old 05-13-2021, 01:23 PM
 
Location: OC
9,098 posts, read 5,287,655 times
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Quote:
Originally Posted by LaKings55 View Post
Nope, I'd gladly take a condo, but I can't compete for those either, even with a hefty down payment, no debt and immaculate credit. It's fine, it is what it is. I'm invested in real estate through other means, but I'll never enjoy true equity building. C'est la vie. I'll just grind it out in the public sector, take my pension and retire to a senior mobile home park or leave the country.
If you have the three things you listed, you can get a home no problem. Don't give up.
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Old 05-13-2021, 01:36 PM
 
37 posts, read 11,011 times
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Quote:
Originally Posted by Gaylord_Focker View Post
If you have the three things you listed, you can get a home no problem. Don't give up.

If I moved to the right market, sure. I'm largely locked into my high COL area until retirement though. Even with remote work, my employer requires living within the County- no moving out of state while keeping my job. My salary is much lower than a comparable position in the private sector, but my benefits, schedule, pension are what keep me here. While I'm vested in my pension (that means I can still get a lifetime benefit upon retirement if I leave my funds on deposit), I would have to change states to buy property. That would mean ditching my benefits and starting in a whole new pension system (no reciprocity between public pensions between states). That would be fine, except I'm at the point where my seniority means I also accrue a lot of paid leave that makes travel easy, especially with my schedule. It's a trade off. I have a highly secure job, decent pay (for public sector), and awesome benefits. But...I'll never afford any property in my area, at least not without a second income. Not all is lost though, my lifestyle affords me the ability to invest sizeable portions of my income in other things.
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Old Today, 03:40 PM
 
9 posts, read 1,629 times
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Quote:
Originally Posted by manekeniko View Post
Sources like Rich Dad claim the money could be better used for investment purposes, and a house is a liability because it doesn't make money for you.

I agree with this in theory, but in practice homeownership is forced savings. Most people who rent use the savings on lifestyle enhancements like buying new cars, dining out, vacations etc.

Few have the will or the discipline to invest wisely. And even if they did, the investments could fail to pan out. I read somewhere that people who own their homes have a higher net worth than renters.

This isn't a value judgment, and homeownership works for me. I have a friend who's a longtime renter, and he doesn't spend his weekends working on his place. He definitely has more fun.
^This is how I see it. If you are into saving and investing, and you're disciplined about it, and you're able to tolerate some stock market risk, renting is likely to be better financially. (Still, this depends on the specifics your market.)

Most people dramatically underestimate the ongoing costs of homeownership. At the same time, they fail to understand the opportunity cost of tying up a large chunk of money in a house rather than other investments.

But the vast majority of Americans are not into investing, and are prone to overspending. They are better off with the forced savings of homeownership.

For the most part, homeownership is a lifestyle decision. If you are raising kids, you want them locked into a specific school district. And in most of the good school districts, renting is prohibitively expensive, if you can even find a rental. And many people have hobbies like woodworking, fixing up cars, or gardening, so it's better for them to own a house.

If your household consists of one or two people and you don't need space for hobbies, then owning a small condo or townhouse might be a happy medium.
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