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Who are these couples making $150k each? Like a senior lawyer and doctor dual income family? Should your 2 bedroom bungalow you bought for $180k be the new gold standard of the lifestyle people that educated and well compensated should afford? Everyone else, whole family to a room in a shared basement apartment. Is that what the new Canadian or American dream is?
Who are these couples making $150k each? Like a senior lawyer and doctor dual income family? Should your 2 bedroom bungalow you bought for $180k be the new gold standard of the lifestyle people that educated and well compensated should afford? Everyone else, whole family to a room in a shared basement apartment. Is that what the new Canadian or American dream is?
I laugh because this all happened in California 30 years ago. Now the rest of the country is dealing with it. I do think real estate is going to come down though.
Location: Formerly Pleasanton Ca, now in Marietta Ga
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Quote:
Originally Posted by pdw
You’re misunderstanding what I’m saying. I’m saying current homeowners would not be able to enter the market if they were buying their first property today. If your mortgage was 300k but the starter homes in your area cost 800k now the sum total of all your mortgage payments (if you had saved it while saving up for a down payment) would not amount to a down payment required to buy that property unless you’re very high income. Even with 300k down, an 800k mortgage would require an income of like $150k. People are blaming the younger generation and non-home owning immigrants for being lazy because they don’t want to admit the lifestyle of gen X and the baby boom generation is no longer attainable for the modern middle class
You can’t roll everyone into one group. My house has gone up and I can certainly buy it at the current price.
I know others that can do the same.
Your other comment that young people can’t afford to buy is not the case with everyone. My young friend and his girlfriend are savers but not cheap. They just bought a brand new house and are doing the walkthrough today.
It takes effort and some sacrifice. It’s always been that way since I’ve been a teen.
You can’t roll everyone into one group. My house has gone up and I can certainly buy it at the current price.
I know others that can do the same.
Your other comment that young people can’t afford to buy is not the case with everyone. My young friend and his girlfriend are savers but not cheap. They just bought a brand new house and are doing the walkthrough today.
It takes effort and some sacrifice. It’s always been that way since I’ve been a teen.
It may be possible in small town Georgia. It’s not possible where I live. How can anyone be expected to save the $200k down payment it costs for a 500k property, which are the cheapest ones available in my area? I applaud your relatives and am happy for them as I am for others that saved and were able to buy a place. The only people who can do that where I live are getting six figure donations from their parents. It’s not a matter of moving out of the city anymore. You’d literally have to move across the country to find something affordable in Ontario, Canada. I’d imagine California is similar.
Who are these couples making $150k each? Like a senior lawyer and doctor dual income family? Should your 2 bedroom bungalow you bought for $180k be the new gold standard of the lifestyle people that educated and well compensated should afford? Everyone else, whole family to a room in a shared basement apartment. Is that what the new Canadian or American dream is?
Not sure where senior lawyers make $150k. I'm in tech and junior employees are $100k+ in Atlanta, senior employees are $180k+ there, I don't even want to think what would happen if I had to hire in California.
This doesn't change the fact that my neighbor bought his house for $200k in 2008 from a bank and it's now north of $1kk. Chances are my household income is higher than his but he's in totally different net worth category.
It may be possible in small town Georgia. It’s not possible where I live. How can anyone be expected to save the $200k down payment it costs for a 500k property, which are the cheapest ones available in my area? I applaud your relatives and am happy for them as I am for others that saved and were able to buy a place. The only people who can do that where I live are getting six figure donations from their parents. It’s not a matter of moving out of the city anymore. You’d literally have to move across the country to find something affordable in Ontario, Canada. I’d imagine California is similar.
Buying a house is just a part of equation. Good luck with maintenance then. $12k entry door? $20k for 200 ft of cheap homedepot fence? $10k to add a few walls (without painting). No idea who can afford that.
It may be possible in small town Georgia. It’s not possible where I live. How can anyone be expected to save the $200k down payment it costs for a 500k property, which are the cheapest ones available in my area? I applaud your relatives and am happy for them as I am for others that saved and were able to buy a place. The only people who can do that where I live are getting six figure donations from their parents. It’s not a matter of moving out of the city anymore. You’d literally have to move across the country to find something affordable in Ontario, Canada. I’d imagine California is similar.
Here in the United States of America they are likely going to crash the economy to make things affordable again. The Central Planning effects can take some time to be effective. It's all a mad cycle.
A lot of homeowners who bought 5-10 or more years ago are completely ignorant of how impossible it is to get into owning a property within 1-2 hours of most major metro areas right now. They’ll talk about how interest rates were higher when they bought, but ignore how the first starter home they bought is worth 5X what they paid for it now.
If many people took every penny they paid on their mortgage over the entire time they’ve been homeowners and added it all up, it still wouldn’t be enough for a down payment on the first property they bought and they wouldn’t qualify for that mortgage at all. Young people earning six figure incomes can’t even buy 1 bedroom condos in Ontario, Canada right now. The only people in their 20s and 30s buying right now are getting 200, 300, 400k from their parents for a down payment.
This is where pumping up stonk prices goes wrong.... It leaves asset holders concentrating their wealth even more and prices non asset holders out of the system. When boomer parent has $300k to give kids for down payment because the markets remain perpetually overvalued, it disadvantages those without this built up net worth. QE is welfare for the rich. Stocks have been "overvalued" for over a decade now because of modern monetary theory and basically stay that way.
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