Millennials REGRET buying Homes |How to AVOID being house poor

[floridamankyle]

I will never be house poor, because I will never qualify for a home.

[ReaIHuman]

Wish I bought a house in 2008 instead of going to elementary school.

[WINZW]

I decided I’d rather be house poor than rent poor

[annegtte]

We are house poor. We were forced in this market in Colorado due to the rent increase. Together we were making close to 80, 000. We barely got a home for 355, 000. Our payment is 2200.00. I had to medically retire at 62. I had no savings. My social security is 1180. We are seniors. I have to do every job thrown my way to make my monthly bills and mortgage.
PLEASE MILLENNIALS SAVE YOUR MONEY.

[gardenandcalico]

also the mortgage is NOT your only expense as a homeowner. I dont regret buying but I was very overwhelmed when several appliances went out the first year. I had budgetted for minor repairs, not major ones. Last thing you need is to finance and end up with more payments.

[Anatoliys_Adventure]

You know what sucks more than being house poor? Being regular ass poor paying for your landlord's fixed rate mortgage with an ever increasing rent bill

[keyc.]

This blows my mind. My husband and I bought a house in December of 2019 and monthly payments plus utilities are cheaper than all the rent options anywhere. We literally can't afford not to own this house.

[JuliaMarshall-se]

When I bought a house earlier this year, I was SHOCKED at how much the lender qualified me for. Like literally shocked. Bought a house about 200k less than what I qualified for because I was so uncomfortable with that number. This is literally what caused 2008, we need to watch tf out

[seeuontheotherside]

What's sad is he said, $100, 000 a year. Like what? Who is ACTUALLY making that type of money AND doesn't have debt and/or children?

[kekegarcia]

I already pay half my net income for an apartment 😭 I'd much rather be in a home. Signed a millennial

[coolraul]

Gen X here. I was SUPER-DUPER lucky to get into a house 26 years ago with a mortgage payment below 25% net. That was my mental number based on wanting not to exceed 50% of a single, semi-monthly payday. Worked out great because it allowed my wife to become SAHM for our severely disabled child, plus have 3 more after him. (Props to my wife for crunching to numbers to prove that it could be done)

Pay raises and job changes have allowed me to support 6 people easily while living well beneath our means (e.g., not buying newer/bigger house). This will allow our Gen Z kids to properly save $ and prepare to leave the nest by age 26 (when I can no longer keep them on my benefits). It still pains me that at least 2 of them likely won't be able to afford homes on only their pay like I can.

My 1st apt, adjusted to 2024 dollars, cost less than $680/mth for 1 br/1 ba, including heat, water, and trash! Good luck finding that nowadays even in the cheapest areas of the US.

[NOBODY-zfnt]

I hope the market calms down so these young people can afford a home.

[MegaGuapo]

Great video…I wish we taught high school students basic finance.

[Zukuri]

And because of the high rates, you cant buy squat. When I run the numbers for myself (I make 120k) and at 7%, I can buy a house that is $180, 000. When I ask realtors for a 3 bedroom anything for that amount they laugh in my face.

[Craig-ibgk]

Notable: Both property taxes and mortgage interest will be tax deductible. Properly accounted, this can significantly alter that take-home pay ceiling when you adjust your federal and state withholding to compensate. For those of us that landed 15-year fixed mortgages at 3%, the interest isn't enough to surpass standard deductions, but today's 30-year fixed buys will easily surpass that threshold.

Regardless, don't use a 40% DTI. Use 25%, at-most 30%. There are plenty of additional items not talked about here. PMI (unless your planning on forking over $80k for a down payment), property taxes, HOA, HOI, will all stack heftily on your base month P+I payment. Repairs fro example: You get to fork over a new roof every 15-20 years, so set aside $100/mo for that, paint (another $50/mo), landscaping upkeep, etc. Owning a home costs a LOT more than just the principal and interest, so don't ever think otherwise.

[Melvinious]

At least point, I'm just hoping to make it to the next week.

[sheem.]

This is REALLY good advice!! This is why I haven't pulled the trigger on buying a house yet, because when you own a home, you are responsible for everything. When renting, if I have a problem, I just call my LL. lol

[serpent]

Right before the housing bubble burst banks were pressing hard to take out as much money as you could. I ran the numbers the same way you're showing here to get to a number i was comfortable with. I've never had a late payment. Even after losing my job for 6 months.

Its been a struggle to stay on top of things, especially now with so much artificial inflation, and needing house repairs, car repairs, and healthcare costs. But at least im still keeping me head (barely) above water.

The banks aren't there to help you. They're there to profit. Always run the numbers yourself!

[Porquefi]

I’m rent poor. There has to be something better than all this suffering. I really don’t see an end to it.

[peanutbutterprincess]

THIS! when we bought our (small, fixer-upper) house back in 2018 we were qualified for a much higher mortgage than we could ever afford. I actually lost it on the phone with the lender like "how is that responsible?! Why would you ever give someone with my income that mortgage?! This is how people go bankrupt!!"