271–280 of 321 posts
I know millennials with combined household incomes in excess of $200k who can't afford to buy, because huge student loans are required to get that kind of income if mommy and daddy aren't rich in the first place.
120 range in KS, 15 year mortgage on a 2,600ft^2 house is $2k on the nose. Commute is 15 minutes. KS isn't all that bad folks :)
Seconding KS, though. I've only been a handful of times and I really like it.
Earlier quoted context omitted.
How much did you pay for your home? $100k/yr gross household income would make it rough to own a 3/2 single family home in South Florida.
Our home was $348k - 4 bedrooms, 2 baths in Louisiana.
At $1,500/mo savings rate, it would take 46 months (3.83 years) to save up for your down payment (before closing costs/lending fees, but I'm not sure if those are rolled into your mortgage)
This would leave you with a rough monthly payment (mortgage + interest + takes + insurance + HOA fees) of $1.8k-$2k (assuming 30 year mortgage at 4% interest rate)
$100k gross is roughly $76k net (before any 401k/IRA contributions)
$1.8k/mo for your mortgage * 12 months = $21.6k before any cable/water/electric/lawn/pool bills/repairs
$4.5k/mo net income remaining after your house for food, cars, insurance, etc.
You said $1.5k/mo savings which means $3k/mo for food, cars, insurance, travel, 401k contributions, repairs, going out, etc.
I guess it is do-able. $3k/mo for 2 people does not sound terrible in the slightest.
Earlier quoted context omitted.
Look for places that other people don't want to live. There are plenty of midwestern cities with senior developer jobs paying $100k+ and a low cost of living. My two bedroom condo 20 minutes from the downtown of a major metro area was $80k.
Do tell; which midwestern cities?
Earlier quoted context omitted.
Our home was $348k - 4 bedrooms, 2 baths in Louisiana.
20% down on $348k is $70k At $1,500/mo savings rate, it would take 46 months (3.83 years) to save up for your down payment (before closing costs/lending fees, but I'm not sure if those are rolled into your mortgage) This would leave you with a rough monthly payment (mortgage + interest + takes + insurance + HOA fees) of $1.8k-$2k (assuming 30 year mortgage at 4% interest rate) $100k gross is roughly $76k net (before…
Earlier quoted context omitted.
Similarly, a good chunk of urban housing in Canada, Australia and NZ are priced completely out of line with what median salaries in those areas could afford. These are likely houses marketed towards "investors", aka rich people who don't need a mortgage or have a network of private lenders who specialize in providing credit for the house-flipping industry.
I live in the Bay Area now, but I grew up in Hamilton, New Zealand. I'm back home with greencard stuff at the moment. On my parents relatively modest street houses are now selling for $850k. These were houses that cost $400-500k ten years ago. People simply do not make the incomes necessary to make these prices sustainable. I have one friend, of everyone I grew up with and went to University who's making north of $10…
Earlier quoted context omitted.
How would one contribute to this?
Agreed, I want to contribute. So I can direct people away from where I live, so the prices don't skyrocket.
And then we all saw what happened to Portland, Seattle, and Austin once the word got out and everyone knew about these "secret" cool cities. So now we keep our mouths shut and enjoy our beer and beaches without all the tourists and transplants.
$100,000 still a lot of money. You can buy a beer in Vietnam for 20 cents. The problem in the Bay Area, where I live, is we artificially limit the amount of housing. So prices move to infinity.
The article doesn't talk about people not being able to afford housing, it talks about them renting in desirable areas rather than buying elsewhere. If anything, it's about a rent/buy price spread resulting from housing inventory being taken up by investors who prefer to own and rent out rather than sell, driving up purchase prices to a greater multiple of rent prices than would otherwise be the case. Which, if viewed as problematic, is not a problem that building more housing solves. You'd have to also make it less attractive to be a landlord.