Trolling4Dollars's Journal: Homeownership

Am I just completely nuts, or has the world gone crazy? Read this then, tell me how someone who makes $110,000 a year (not me) could possibly afford a home that is $400,000+? How do people live these days? I have no problem revealing my stats because I don't particularly care. But... I make about $55,000 a year before taxes and I am just pushing the edge of my financial limits with a house that cost $137,000 that I was able to make a $50,000 down payment on. So my loan is $87,000. By the article's logic, I should be in a house that is in the $200,000+ range. WTF? How? Are people that irresponsible with their debt? Sorry, but I'm extremely fiscally conservative when it comes to my personal finances and I don't waste money on any non-essentials other than the occasional movie and computer hardware. So what about you folks. Anyone think I'm all wet with my finances?

No, you're not nuts...but...

[daoine]

For people who live in metro areas like Boston, NY, San Francisco housing is an entirely separate reality. In these areas, the cheapest, liveable 1 bedroom condos are nearing/passing 200k. I'm not talking city living, I'm talking 45 minute commute in, and in a nasty area to boot. Often, anything under 150k is condemned, requiring several hundred thousand dollars of work before it's inhabitable.

With prices like this, most are inherently priced out of the market. For many, it's worth the risk of the "ex

Worse than that-

[Marxist Hacker 42]

Bush's whole economic plan *requires* that people be this fiscally irresponsible with credit. Take away the credit and the whole house of cards will fall down- as it should have in 2001, and as it did in 1929.

Credit is a necessary evil- how else are the neocons going to get you to become a wage slave again?

Brother and I have discussed this

[gmhowell]

My brother and I have discussed this on a few occasions. Mostly because he can't afford a mortgage around here on anything more than a doublewide:) I couldn't afford my house if I bought it today. Fortunately, I bought it at the bottom of the local market a few years back at not horrendous rates.

The flippant argument is that your risk-reward tradeoff is different than others, so you are being more conservative than normal.

But my brother and I noticed a few things about these folks. They don't do anything.

Re:Brother and I have discussed this

[Zeriel]

In many parts of the country, I view the real estate market as 'the next tech bubble'. If you can put aside some money, you'll be able to swoop in when the bottom falls out.

Wow, you've just described my plan. =)

Re:Brother and I have discussed this

[Trolling4Dollars]

But my brother and I noticed a few things about these folks. They don't do anything. They have no hobbies or interests.

Interesting point. I actually should have thought of that as my wife and I have discussed something similar in the past. For me, my interests/hobbies are kind of second nature and assumed as a normal part of life. So... computers, audio gear, DVDs, CDs and digital photography equipment are normal expenses. My wife loves to read, so books as well as CDs are also assumed to be a fairly

Re:Brother and I have discussed this

[KMAPSRULE]

on the interest/hobby point my wife and I are the same way, we dont understand how other people in our bracket are affording 120k+ houses plus 2 new Luxury vehicles. My wife and I just having bought a decent little fixer upper for $66,000 (which by some freaky coincidence is what I make before taxes), only after paying off the cars, we were careful to make sure that the mortgage + taxes were in the same monthly ballpark as our rent was, and we will use the ever lovin' crap out of the place, no perfect show

Just tried to trade down

[JimmytheGeek]

The mortgage is still pretty hefty, and we have the other place on our hands for a while yet. Gulp. But when the bigger place does sell, we'll have a couple hundred more each month to pay down the mortgage early.

Seattle housing is expensive. But I live across the street from work, so I don't have to contend iwth the awful traffic.

We're pretty moderate in our spending, apart from travel to see family. I note that nobody travels to see us, so I may shitcan that. Family is as family does...