Can You Actually Afford a $400,000 Home?

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[DonaldMark-nese]

I believe the retirement crisis will get even worse. Many struggle to save due to low wages, rising prices, and exorbitant rents. With homeownership becoming unattainable for middle-class Americans, they may not have a home to rely on for retirement either.

[AntonioBianh]

I’m in Colorado and the housing market here over the last 7-8 years is unlike anything I’ve ever seen. Homes that were bought for $130K in 2015 are now being sold for $380K. I’m talking about tiny, disgusting, poorly built 950 square foot shit boxes in quite mediocre neighborhoods. Then you’ve got Better, average sized homes in nicer neighborhoods that were $300K+ 10 years ago selling for $75OK+ now. Wild times.

[breannamanderson]

I’m so overwhelmed. I don’t think I’ll ever buy a home

[YTwoKay]

Living without a partner or middle-class parents with a home you can stay at makes this game way too hard.

[diane.moore-]

I'm hoping there will be a housing crisis so I can buy cheaply when I sell a few houses in 2024. As a backup plan, I've been thinking about purchasing stocks. What advice do you have for choosing the best buying time? On the one hand, I continue to read and see trading earnings of over $500k each week. On the other side, I keep hearing that the market is out of control and experiencing a dead cat bounce. Why does this happen?

[TheChubbyd]

Wife and I make about 140K a year combined. Luckily we bought our house new in 2015 which cost 259K at 3.5%. The same house now goes for over 500k in the area.. Our mortgage payment is under 1500, and that’s high to me. Hell, we took out 60k in home equity credit for home improvements and our payment is still under 2k. I can’t even imagine how people are affording 3k a month mortgage. I feel bad for folks trying to buy now. Especially for younger people who just want a place to call home.

[JavyVidana]

Do you guys like me using a price point like in this video or a salary like in the previous video?

[azteca]

When I was looking for a house. I paid off all my debt. And calculated how much i would need more or less for an emergency fund, for at least 3 months. I found and bought my repo house when I was single. 3 yrs later i was diagnosed with cancer. The following year, after my diagnosis. New management came in, and i lost my job. I couldn't look for a job, due to going back to the hospital and Dr's to check for any remaining cancer cells. That emergency money came in handy. I advise to have an emergency fund. You just don't know what life is going to throw at you.

[kortyEdna]

Back in the day, when I purchased my first home to live-in; that was Miami in the early 1990s, first mortgages with rates of 8 to 9% and 9% to 10% were typical. People will have to accept the possibility that we won't ever return to 3%. If sellers must sell, home prices will have to decline, and lower evaluations will follow. Pretty sure I'm not alone in my chain of thoughts.

[J_WheelerDoll]

My husband and I have been going through the process of purchasing for the last 2 years. It’s been rough. We’ve been through multiple types of lending. USDA guaranteed and fha. We got approved for 265, 000 just under my husbands credit and income. May not seem like a lot but with interest rate for us at a 6.5.. that’s an additional 400 dollars added. We find that to be comfortable and not borrow above what we can afford, it’ll be 210-220, 000 for us. Unfortunately in our area, we can’t find anything in our range, even for our approval of 265, 000. I graduate from dental school this week and I hope I’ll be able to have a descent amount of monies to add to our household. My husband isn’t in a rush to buy, especially with our rent increased it’s cheaper.

[xesfa]

I’m making around $160k and was initially excited, then I realized there are no houses under 500k in my city lol

[alexsteven.m]

In my opinion, a housing market crash is imminent due to the high number of individuals who purchased homes above the asking price despite the low interest rates. These buyers find themselves in precarious situations as housing prices decline, leaving them without any equity. If they become unable to afford their homes, foreclosure becomes a likely outcome. Even attempting to sell would not yield any profits. This scenario is expected to impact a significant number of people, particularly in light of the anticipated surge in layoffs and the rapid increase in the cost of living.

[Peekul]

100% agree about making your own mortgage calculator. I even made them for friends and family.

[alhexajohnson]

People don't comment enough about your humor "home ownership is as unobtainable as it is for me to receive my dad's love and affection and respect" 😂

[sunidaze]

It's crazy thinking about those numbers! I can't believe people are out here paying $100k+ over asking price (according to the VA/DC reddits.)

[jesuseyez]

My wife and I made over $220k when lived in California and we still too poor to afford a home. Out there (LA area) homes are $800k+ avg. I have no idea how people were buying homes for those prices. They would need to be making ~$370k to meet the 50-30-20 rule. Wtf.

…Yes, we left the state.

[junkjanedoe]

I guess I'll be renting for another 5 years. That's fine, as long as I am happy. All the money I am saving is in a high yield savings account so it's fun to watch it grow.

[dsdddsdwe]

We're currently leasing a SFH in the Atlanta Metro. My neighbor just listed his home at $415K.

The monthly mortgage will be around $3K, and the house we're leasing is $2100, and it is bigger and renovated.
The neighbor's home was just purchased for $210K in 2017. A lot of these homes have to come down in pricing in most Metros for them to make sense.

[demondeacon]

My wife and I are in our early to mid 30s. We bought a home for 560k in 2022 with 10% down. We have one kid, who is in daycare. Together we bring in about 225k-250k. We eat out too much, mostly at Chick-fil-A and Starbucks with is death by a thousand cuts. Gotta get better on that. Anyway- we’ve done well thus far in’s life but things can be challenging to a degree. Our mortgage is 3600/month and childcare is 1200. Nuts. It’s crazy to make good money and still have to really watch it. Groceries are insanely expensive. I feel for people looking for a home on 70K salary. The market is too inflated and it’s frustrating to watch

[Up_nogood]

Now do one for groceries, you know.. goals for us little people.