I agree with that. My taxes have jumped substantially...my insurance hasn't changed a whole lot on my house...but my auto insurance has gone up significantly.
Car loans are +10%, What The Heck!??
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I agree with that. My taxes have jumped substantially...my insurance hasn't changed a whole lot on my house...but my auto insurance has gone up significantly.
I don't even want to include auto. Mine jumped from about $1200 a year in 2018 to $3600 a year now.
I can tell you from real life experience that being in your early to mid 20's has always sucked for the average person as far as home ownership goes. It is difficult at that age to save a down payment when you are working to just survive. A very large percentage of that age group are basically living pay cheque to pay cheque
Yep. That''s about how mine was as well. Went from $1,572 to $2,952 per year.
Oh no doubt, I am 39 myself so not like I haven't seen it. I just think it's "never been worse" for people in that age group regarding home ownership.
I only know of one guy 30 or under at my office (1000 person, nationwide electrical engineering firm) that owns a home and he bought his grandparents 50s era 3 bedroom, 1 bath, 875 sq foot house in a not great but not bad part of town. Of course he got a "family discount" and no realtor fees involved. There are a couple other guys that are late 20s and married so maybe they own but I don't know them well enough to know.
When someone under 30 is paying $1500 for a studio apartment, $1800 for a 1 bedroom or $2100 for a 2 bedroom, it's nearly impossible to get over the hump towards homeownership without a significant other or at least a roommate to split the costs of a 2 bedroom.
This is the Madison, WI area but I'd guess housing and wages are pretty similar in many MCOL areas.
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that's the tough part, it's the biggest stumbling block and a lot don't have the disipline or the desire to do what it takes to save the money. my sister doid the ssame thing as your co-worker, bought the grandparents home with the same sort of circumstances. it took me a decade or more to scrounge the money but I did, bought and sold a couple houses after that and now living mortage free in a house we bought new. I know it can be done, it just isn't easy and you don't get to have all the nice toys while you are doing it.
I live in an area where affordable housing exists and as far as my younger co-workers, they have no desire to live in a starter home. They want 3/2 new construction like their parents have right out the gate.
happens all the time, they either don't know or don't remember the struggle their parents went through to get where they are. not many get to start at the top.
I live in the last house on the road that was from the 70's. After that it's all new construction. Paid $120k 5-6 years ago, the "new" houses were $300k.
Couldn't have afforded it at the time plus it doesn't matter to me which house I live in.
Then COVID happened, the same houses are selling for almost $500k and there's only a few empty lots left.
I make quite a bit more now so floating the payment on the $300k would be fine, in a way I wish I would have "upgraded" back then and stretched my budget. Oh well, probably wouldn't have had the money laying around to buy the Terminator (lol) if did that.
Hoping to have this one paid off by the end of 2025 and then maybe we'll sell and upgrade then...
They won’t, unfortunately
Brother-in-law got married about a year ago, has a new baby. He’s 35/36 and wife is 27/28ish. He has a pretty solid job for our area and she’s part-time helping in a school setting.
He’s selling his condo he bought 7 years ago, they’re buying a house, and she is dead set on 300-350k new builds. With interest rates, and other costs, it’s going to be absolutely brutal payments. No idea why they don’t look for older homes that are 2/3rds the cost. They’re out there around here, just have to look.
Yes and no.
Some technology
No idea where you are but new builds are cheaper here. Builders are offering interest rates around 4-5%.
Down side is the houses are all on the outskirts of town and have lots of quality problems.
I get the fear of buying a 30 year old home.
New Roof $25k
New HVAC $20k
Any remodel project starts at $10k
You can quickly sink money into something.
Buying a house isn't all its cracked up to be.
Guy here at work was constantly badgered that he should dump his small apartment and buy a house to gain equity.
His apartment was $1K a month, he bought a pretty nice house and is now paying $10K a year in taxes... Comparatively, he was almost living for free in his apartment because neither rent or taxes create equity. (So if he lived there 10 years...he'd need an extra $100K on the sale price to break even? Or is it like maintenance on a car and taxes shouldn't be counted?)
Guy here at work was constantly badgered that he should dump his small apartment and buy a house to gain equity.
His apartment was $1K a month, he bought a pretty nice house and is now paying $10K a year in taxes... Comparatively, he was almost living for free in his apartment because neither rent or taxes create equity. (So if he lived there 10 years...he'd need an extra $100K on the sale price to break even? Or is it like maintenance on a car and taxes shouldn't be counted?)
Well yeah, if you live in communist territory as evidenced by his tax bill.
I bought an 1890's house when I was 24 because it was affordable... I'm 48 now and into it for about 2.5x what I paid for it, plus a 1.5 years of my life gone in labor.
Its pretty nice now (went through it top to bottom and added on) but living in a corner of your house for months on end while you rebuild the rest of it gets old...real quick!!
Some parts of Florida are getting near 10k in taxes for $400k houses.
And this in non HOA/CDD areas.
St Lucie County has one of the highest tax rates here. Red County, red state.
Neighbor down the street bought a house for 382k last year. Tax bill comes in, no homestead, home taxable value at 408k, 9.8k in taxes due if the new budget(s) pass.
There are many red pretending communists. That being said, you guys don't have income tax so I concede they have to get funding somewhere. I guess my comment is valid for any state that has income tax... My house just appraised for $756K and I think I paid about $4k last year.
Every 30 year old home get leveled and rebuilt on. The house behind my dad sold for $112k in 1995, 2,200 sq/ft 4 bed 3 bath, was sold in May 2021 for $500k. An investor bought it, leveled it and built a 3,200 sq/ft 4 bed, 4.5 bath....sold it for 2.65 million less than a year later. His neighbor is a contractor and he walked the home and estimated a 500-550k build cost. That's a $1.65 million profit. The build quality wasn't great either.....looked good in pictures though. Fwiw, adjusted for inflation that house should be worth $222,113.22
Anyone that thinks this is either normal or sustainable is an idiot.
Context matters.
I can't imagine what dump he had at $1k a month. Renters are crying all over as prices are skyrocketing. Also, property taxes, $10k where and what?
My $600k home that I paid $360k for in 2020 is about $1500/yr in taxes and $1k/yr for insurance.
Sorry you live in California, Wisconsin or Texas I guess.
My house back in Indiana didn't appreciate for shit. Paid $85k in 2008 and sold it in 2020 for $100k after putting $30k into it in 12 years.
Good news? Walked away with $75k cash that got me my current house. Had I rented an apartment for 12 years I'd have walked away with a $400 cleaning fee.
So even if you "don't make money" you still break even when it's all said and done.
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