B) you need to qualify for a mortgage, even with first time homebuyer programs
C) you severely underestimate what the mortgage is
D) people aren’t always expecting to live in the same area for more than 5-7 years, at which point you’ve spent tons of money on closing and PMI that you absolutely aren’t coming out ahead on
Where I live houses are like $450k minimum for something that doesn’t need major work. Even with a n FHA loan, the mortgage would be untenable. I’ve given up owning a home here.
I don’t live in the city. I have friends and a job here. It doesn’t seem like a solution to the problem to tell everyone to move to Ohio or something. And I know what it is to renovate a house. If it is a big enough job, you have to live (pay rent) elsewhere while you do the work. Otherwise, you still have huge material costs on top of your mortgage.
Sometimes you do have to, sometimes you don’t. If it’s a major enough renovation, it may actually be illegal to inhabit. I have lived in houses with no plumbing before. My wife and I are in our 40’s and that just isn’t going to work.
Genuinely… you seem very out of touch. Your entire premise is incredibly ableist. You presume that anybody can do the things you’re listing, but many of us are living with disabilities, and not everyone has had the opportunities you have had to have enough money to pay for a house, or to buy a car. A $2.5k car is ultimately, MUCH More expensive than buying a more expensive car, because you are getting one that’s barely functional for that price. Once all my bills are out of the way, I take home $100 for all unnecessary expenses anyways, so it would take me years to save up for one of those pieces of junk.
You take for granted that you have the confidence and motivation to do things like, say, even apply to one of these homebuyers programs - but other people have to put in more effort just to get out of bed in the morning.
Check your goddamn privilege.
It sounds like you might know more than me, so def educate me if you think I’m wrong.
However I don’t think point D was addressed at all. First time homebuyers might cover closing costs when purchasing the home, but what about selling it? Afaik closing costs as a seller can be expected to be between 6 and 10%.
Also, when paying a 2k mortgage, you’re not paying yourself 2k depending on interest rate. These days you’re realistically paying yourself 400 while paying the bank 1.6k. Nothing to sneeze at, but just a more accurate portrayal.
Living paycheck to paycheck is a valid reason how one can’t even save up to consider even buying a house. Soon with the rising prices it will even be living on borrowed time.
renters just make excuse after excuse after excuse why they won’t buy a house.
“wahhh I’m living paycheck to paycheck and may not be able to pay rent this month, let alone set aside a down-payment and closing costs for a house when houses are at an all time high price”
Poor people, amirite? Don’t they know that the solution to all their problems is to just get more money?
Super weird that they can’t scrape together a down-payment in a time where 60% of Americans are living paycheck to paycheck and housing prices are at an all time high.
Also, with interest rates being as they are, mortgages are likely more expensive than rent. Im in the process of closing on a house, and I know our monthly cost is way the hell up from before.
Seriously though dude, you need to take a step back and realize you’re a bit out of touch. All your comments have big “millenials wouldn’t have money problems if they just stopped buying so much avacado toast” energy
Would you be willing to share how you make that work? I can’t imagine living on my own for that much, let alone raising 3 kids. What does a weekly meal plan look like? Do you drive? What are rent and property values like in your area?
Edit: Just ran some numbers, and I can see how that could be possible, but it’s dangerously lean. We shouldn’t need to live like that. I commend you for making it work, but would like to say that you’re definitely worth more than $20k/yr (especially with all those home improvement skills, but regardless)
Where I live, a mortgage payment is twice what rent is. My family won’t move, and I’m not spending 75% of my paycheck on a mortgage. Family won’t move to LCOL. Also mortgage payments have gone up like 35% since the rate hikes, and housing costs are at all time highs.
Oh yeah, sure, I’ll buy a shitty house an hour away from where I work, in a small village with not even a grocery store! Good idea! And then I’ll be stuck there for the rest of my life because you can’t sell houses in these places, because they are shitty!
Buying a house or apartment is a several decades investment. If you’re settled in your life, sure, do that, but not everyone is in this case, and not everyone in this case can afford it.
BTW, so you know banks will not give you money these days? Half the requests are refused by banks in France these days because they’re waiting for the yields to increase again.
Just because things worked out for you doesn’t mean they work out for others. You’re not taking crazy pills, you’re lacking empathy and seem very out of touch with reality.
You severely underestimate the number of people who lack ambition, life skills, discipline, and financial responsibility. It may seem easy to you but to people without these things, it’s like climbing a mountain.
Who has time to develop all that when you’re burned out, pushed to your limit at your job that barely covers your primary expenses?
I know, not the whole picture, but neither is what you’re saying. The first thing you list is ambition? I hope that’s not in order of importance because I don’t think most people lack ambition, I think they get stretched too thin and feel its hopeless no matter what.
Financial responsibility, life skills, these are important issues and more should be done to improve quality of them for the population. But discipline and ambition require a world where those get rewarded, and for some lucky people they do, but for many that’s just not the case.
Every penny you put into a house is like a savings account that doesn’t actually count against you. You get done with that loan, and the worth of that house is yours.
How should I reconcile this with the statement “you should see housing as necessities rather than investments”?
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A) poverty
B) you need to qualify for a mortgage, even with first time homebuyer programs
C) you severely underestimate what the mortgage is
D) people aren’t always expecting to live in the same area for more than 5-7 years, at which point you’ve spent tons of money on closing and PMI that you absolutely aren’t coming out ahead on
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Where I live houses are like $450k minimum for something that doesn’t need major work. Even with a n FHA loan, the mortgage would be untenable. I’ve given up owning a home here.
A small shoebox here is upward of 550k. And at that price, you need to put another 100k if you do things yourself because the house is a shitstain.
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I don’t live in the city. I have friends and a job here. It doesn’t seem like a solution to the problem to tell everyone to move to Ohio or something. And I know what it is to renovate a house. If it is a big enough job, you have to live (pay rent) elsewhere while you do the work. Otherwise, you still have huge material costs on top of your mortgage.
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Sometimes you do have to, sometimes you don’t. If it’s a major enough renovation, it may actually be illegal to inhabit. I have lived in houses with no plumbing before. My wife and I are in our 40’s and that just isn’t going to work.
So you need to pay a car and gas on top. Very good idea!
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You do have to pay the gas, and you do lose hours each day to go to work. Gas these days is at least 100€/month, possibly more.
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Genuinely… you seem very out of touch. Your entire premise is incredibly ableist. You presume that anybody can do the things you’re listing, but many of us are living with disabilities, and not everyone has had the opportunities you have had to have enough money to pay for a house, or to buy a car. A $2.5k car is ultimately, MUCH More expensive than buying a more expensive car, because you are getting one that’s barely functional for that price. Once all my bills are out of the way, I take home $100 for all unnecessary expenses anyways, so it would take me years to save up for one of those pieces of junk.
You take for granted that you have the confidence and motivation to do things like, say, even apply to one of these homebuyers programs - but other people have to put in more effort just to get out of bed in the morning.
Check your goddamn privilege.
deleted by creator
It sounds like you might know more than me, so def educate me if you think I’m wrong.
However I don’t think point D was addressed at all. First time homebuyers might cover closing costs when purchasing the home, but what about selling it? Afaik closing costs as a seller can be expected to be between 6 and 10%.
Also, when paying a 2k mortgage, you’re not paying yourself 2k depending on interest rate. These days you’re realistically paying yourself 400 while paying the bank 1.6k. Nothing to sneeze at, but just a more accurate portrayal.
deleted by creator
Haven’t heard of balloon mortgages before … that’s wild…
Living paycheck to paycheck is a valid reason how one can’t even save up to consider even buying a house. Soon with the rising prices it will even be living on borrowed time.
“wahhh I’m living paycheck to paycheck and may not be able to pay rent this month, let alone set aside a down-payment and closing costs for a house when houses are at an all time high price”
Poor people, amirite? Don’t they know that the solution to all their problems is to just get more money?
deleted by creator
Super weird that they can’t scrape together a down-payment in a time where 60% of Americans are living paycheck to paycheck and housing prices are at an all time high.
Also, with interest rates being as they are, mortgages are likely more expensive than rent. Im in the process of closing on a house, and I know our monthly cost is way the hell up from before.
Seriously though dude, you need to take a step back and realize you’re a bit out of touch. All your comments have big “millenials wouldn’t have money problems if they just stopped buying so much avacado toast” energy
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First time home buyers programs pay your full down-payment for you? lol
This I such a privileged take that I don’t even know where to begin.
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Would you be willing to share how you make that work? I can’t imagine living on my own for that much, let alone raising 3 kids. What does a weekly meal plan look like? Do you drive? What are rent and property values like in your area?
Edit: Just ran some numbers, and I can see how that could be possible, but it’s dangerously lean. We shouldn’t need to live like that. I commend you for making it work, but would like to say that you’re definitely worth more than $20k/yr (especially with all those home improvement skills, but regardless)
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I continue to be at a loss for words. I’m glad to hear you and your family have realible housing.
Where I live, a mortgage payment is twice what rent is. My family won’t move, and I’m not spending 75% of my paycheck on a mortgage. Family won’t move to LCOL. Also mortgage payments have gone up like 35% since the rate hikes, and housing costs are at all time highs.
Stop being poor isn’t an option.
Oh yeah, sure, I’ll buy a shitty house an hour away from where I work, in a small village with not even a grocery store! Good idea! And then I’ll be stuck there for the rest of my life because you can’t sell houses in these places, because they are shitty!
Buying a house or apartment is a several decades investment. If you’re settled in your life, sure, do that, but not everyone is in this case, and not everyone in this case can afford it.
BTW, so you know banks will not give you money these days? Half the requests are refused by banks in France these days because they’re waiting for the yields to increase again.
Just because things worked out for you doesn’t mean they work out for others. You’re not taking crazy pills, you’re lacking empathy and seem very out of touch with reality.
You severely underestimate the number of people who lack ambition, life skills, discipline, and financial responsibility. It may seem easy to you but to people without these things, it’s like climbing a mountain.
Who has time to develop all that when you’re burned out, pushed to your limit at your job that barely covers your primary expenses?
I know, not the whole picture, but neither is what you’re saying. The first thing you list is ambition? I hope that’s not in order of importance because I don’t think most people lack ambition, I think they get stretched too thin and feel its hopeless no matter what.
Financial responsibility, life skills, these are important issues and more should be done to improve quality of them for the population. But discipline and ambition require a world where those get rewarded, and for some lucky people they do, but for many that’s just not the case.
My dude it takes me hours to hype myself up to make a phone call, the things you’re talking about simply aren’t possible for a lot of us.
Yo, I’ve been there. Have you considered therapy?
Therapy costs money lmao
How should I reconcile this with the statement “you should see housing as necessities rather than investments”?
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Just buy a house 4Head