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The main reason for owning a home rather than renting an apartment is that you build equity over time through paying down your mortgage and home value appreciation.
Most people don’t have the discipline to save up money on their own. They find all kinds of excuses to spend it. At least, owning a home “forces” people to increase their equity since they are likely to stay in their homes for years or decades. The same principle applies with 401(k) plans. You can’t touch it, so it keeps growing over time.
I get that. But it is a very "let them eat cake" and out of touch attitude. It's like telling someone who can barely afford food for their kids that if they just invested in the stock market, they'd be millionaires by the time they're 70.
The main reason for owning a home rather than renting an apartment is that you build equity over time through paying down your mortgage and home value appreciation.
Most people don’t have the discipline to save up money on their own. They find all kinds of excuses to spend it. At least, owning a home “forces” people to increase their equity since they are likely to stay in their homes for years or decades. The same principle applies with 401(k) plans. You can’t touch it, so it keeps growing over time.
Do you have kids or have you had kids recently? Are you aware that childcare alone for just 1 or 2 kids is now easily running over $2000+/mo. in many parts of the country? That's just your standard run-of-the-mill kind of place for care too. Do you honestly think wages are keeping up enough for the exploding costs of childcare, healthcare, housing, and food?
If a person is working full-time and making less than $30k a year, then I would assume they would be motivated to improve their qualifications to make a little more money.
However, I have never worked in a managerial position. So, I guess I haven’t seen the big picture or gotten a bird’s eye view of what motivates people.
Motivation, availability, and ability are entirely different. I know some really nice people making $10/hr in a "skilled" position. They are motivated to improve their qualifications but..........they cannot afford child care for the extra time required to attend classes to improve their qualifications - or, in one case (at least), the classes were during the time they need to work! Ah, but that must mean they aren't motivated. Besides that, with paying for children's school supplies, child care, and food - those darned kids need to eat! - there just isn't enough to pay for those classes.
How entitled!
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Originally Posted by jerseygal4u
My house is $160,000 on a $90,000 income.
Seems affordable right? Wrong,very wrong.
My taxes are an extra $900/month. Not to mention homeowner insurance($2000/yr)
I pay over $1700/month,with a 15 year conventional mortgage at 2.5%.
A house worth $160K - a dream for many people - when they win the lottery - oh wait, they can't afford a lottery ticket.
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Originally Posted by CarnivalGal
Improving their qualifications often means more education, which costs money, which they don't have, because they only make $30K a year. Add in the fact that they are already working a full-time job, so in addition to the financial barrier, they have to find classes that fit around their school schedule. And if they have kids, they have to find, and pay for, child care, which isn't cheap. It's not that easy.
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Originally Posted by North Beach Person
And again, $30K is top rate in lots of the US.
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Originally Posted by dontaskwhy
And in some states and markets it's neither the average or median wage.
You guys get it!
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Originally Posted by BigCityDreamer
On zillow, there are small houses or condos for sale in metro areas like Cleveland, Columbus or Indianapolis that go for less than $100k. If a person is patient enough, they can even find a house for under $30k that needs a bit of a makeover.
Personally though, I wouldn't buy those houses because it appears they are unlikely to appreciate much in price. But you never know, it's possible to get lucky with such properties.
In what world do you live? Under $30K will require an enormous amount of makeover. Beginning with a heating system! Most of those properties in this area - and there are many under $50K - have wall heaters and were built in the 1920s, some earlier. That 'bit" of makeover begins with the electric system - almost entirely in need of being replaced. Window air conditioner? not with the current electric system. Then there's the plumbing, and the lack of insulation, and the roof. It is possible to find a house for $30K around here, but the amount of repair money investment makes it totally not worth it.
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Originally Posted by North Beach Person
Yes. But the wages there are also low, you know, what I mentioned earlier about parts of the US.
YES
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Originally Posted by Hemlock140
But as an investment, though it builds wealth, it's secondary to having a place to live. When you rent you can expect to pay more every year or two. With a fixed rate mortgage it stays the same for 30 years. Of course, with $100k homes comes a lot of crime and poverty that you have to live with, and for a $30k fixer you still need money to do the fixinng.
To afford a $100k house with a down payment of $20,000, you'd only need to earn $14,921/year before taxes to get the loan. That's basically $7.80/hour full-time. The problem may be coming up with the $20,000 down payment. If managing a loan with nothing down one would have to make $19,000, that's still only $9.89/hour.
And what are they supposed to live on while paying said mortgage? Soup kitchen? Sorry, there aren't any in the poor counties; transportation? let 'em walk - it's only 10-20 miles minimum to get to any job that would pay that much. And without food, there's no energy to walk to work. And then you guys want them to improve their knowledge/education to get a better job. Come down off your throne.
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Originally Posted by redguard57
Where houses are cheap, there are usually not good jobs or not enough for two white collar professionals to add up to 80k.
When I was on the job market I made a concerted point to target moderate and low housing cost areas. Guess what... they don't hire very much. The economies of those places are stagnant, that's why their housing markets are low.
THIS!
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Originally Posted by Angry-Koala
This is where the OP went wrong - confusing the MEAN with the MEDIAN.
Quote:
Originally Posted by BigCityDreamer
The main reason for owning a home rather than renting an apartment is that you build equity over time through paying down your mortgage and home value appreciation.
Most people don’t have the discipline to save up money on their own. They find all kinds of excuses to spend it. At least, owning a home “forces” people to increase their equity since they are likely to stay in their homes for years or decades. The same principle applies with 401(k) plans. You can’t touch it, so it keeps growing over time.
Most people don't have the MONEY to save up - not discipline. Yes, they could own a home and be forced to spend their income on the mortgage, taxes, and insurance - or they could buy food for their children.
The main reason for owning a home rather than renting an apartment is that you build equity over time through paying down your mortgage and home value appreciation.
Most people don’t have the discipline to save up money on their own. They find all kinds of excuses to spend it. At least, owning a home “forces” people to increase their equity since they are likely to stay in their homes for years or decades. The same principle applies with 401(k) plans. You can’t touch it, so it keeps growing over time.
40k a year is like $20/hour. Minimum wage in many parts is $15 an hour. How can someone who’s halfway motivated not reach that income by their late 20s?
Motivation is not the issue. Not everyone works. Not every family has 2 parents that work. I dont work. I'm a stay at home mom. My husband works full time, makes 60k and we still can't afford. I dont want just any dinky house just for the sake of owning. If I own, I would want it to at least be 300,000. Decent. Not too small.
I really don't think you understand how difficult it is.
Do you have kids or have you had kids recently? Are you aware that childcare alone for just 1 or 2 kids is now easily running over $2000+/mo. in many parts of the country? That's just your standard run-of-the-mill kind of place for care too. Do you honestly think wages are keeping up enough for the exploding costs of childcare, healthcare, housing, and food?
So that is why we save that money . Instead of day care I stay home! I don't trust day care anyway. Too abusive. Not worth it.
NY Annie, thank you for posting that reality check that many folks just don't get in their dream world. The reality is that many folks don't get the opportunity to earn 40K/year no matter what they attempt to do or learn. This is a sad fact and far too many households struggle hard to barely squeak by.
My husband doesn't have any degree. He's only in his early 30s and already a supervisor in his department. He got the job he has making a little over 60k because of determination, job experience- every job he had he rose to supervisor.
Women should not put themselves in a situation where they end up single mothers.
My husband doesn't have any degree. He's only in his early 30s and already a supervisor in his department. He got the job he has making a little over 60k because of determination, job experience- every job he had he rose to supervisor.
Women should not put themselves in a situation where they end up single mothers.
What about the single fathers? Are you going to blame the men for ending up single fathers? Most women don't bail on their kids and/or often wind up primary custody in a divorce. I suppose all divorces are also the women's fault?
When/if you return (or join for the first time?) to the workforce, who will you blame? your children?
My husband doesn't have any degree. He's only in his early 30s and already a supervisor in his department. He got the job he has making a little over 60k because of determination, job experience- every job he had he rose to supervisor.
Women should not put themselves in a situation where they end up single mothers.
That can’t always be helped. My mother was forced into the workforce in 1968 when my father sustained a TBI and went to a Veterans home.
Most people can afford a mud hut but don't want to live in one. It has nothing to do with "rules".
Try putting one up and living in it, chose your favorite city. I would guess unless you hide it that it will disappear before your first night in it. See most cities have building codes and enforce them. None of them that I am aware of allow homemade mud huts as a primary residence. Please correct me if I am wrong and point out the major city's building code that allows such!
Many people would choose a hut, mud or otherwise over sleeping rough on the sidewalk. But then you know better I am sure..... Cause everybody you know makes $100k or more.....
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