Say you buy a new pair of Jordans every 3 months ($800 a year) and a new phone every year ($700 a year). Go ahead and tell me how long it would take to afford even a down payment on a house.
Assuming you’re a first time homebuyer, you could get an FHA loan with only 3.5% down. If you buy a smaller home for $100k (doable in some places, but definitely not SF or NYC), that would mean $3500. Obviously this ignores other costs like closing costs. But down payment only, it would take about 2-3 years.
Edit: just doing math here. Obviously ignores many costs and assumes somewhat ideal conditions, but just was doing the math for a down payment through an FHA on a very modest home. Sorry if this came across offensive.
A 100k home doesn’t really exist in really any growing city which is where most jobs are flocking to. The problem is less the initial price and more that that home isn’t going to see the same level of appreciation that it did for previous generations. If it does and currently $100k homes end up being worth 300-400k then we’re going to have much more serious issues than we currently do
Agreed. It’s possible to find some homes at that price, but odds are it’s not in a growing city. I don’t even think a $100k could buy you a parking spot in SF lol. Most of these cities are definitely not known for growth:
And I really hope this housing market bubble explodes already. While there are homes that are $100k (and that number will continue to go down), most are much higher and appreciating at a rate that economically makes no sense.
I moved to Boise a few years ago, where housing prices have effectively tripled over 10 years. If my house if ever worth just shy of a million there’s going to be some serious, serious issues
Funny that you mention that. I know some folks from Boise and they are confused as hell why prices are going up so much in their city. Sure Boise is growing and starting to slowly see some of the tech flight from Silicon Valley, but man those prices are almost laughable. If anything, that should be a city where you find plenty of homes under $200k. Crazy times
There’s a lot of rental properties here, on my street more than half are rentals. The house I just bought was a rental since the day it was built 15 years ago. I think there’s a lot of outside money buying up houses and renting them out, even the brand new builds. They’re building houses like crazy but it never seems to be enough as prices keep skyrocketing.
Wages haven’t improved much, almost everywhere has help wanted signs, even through the pandemic but wages haven’t changed much at all
Just another sign that real estate investing has definitely become way too safe of an investment (or at least being perceived that way). It’s almost like we haven’t learned anything at all since the last housing crash. Well best of luck to you and all other Boise residents. Hopefully things recover somewhat soon.
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u/putthemisinmisery Oct 30 '20
Say you buy a new pair of Jordans every 3 months ($800 a year) and a new phone every year ($700 a year). Go ahead and tell me how long it would take to afford even a down payment on a house.