It’s going to be like it always has been, some people are going to do very well, others not so well and there will be a lot in the middle. Although the middle is shrinking and the upper is growing over the last 20 years
Yes it’s been growing
My daughter currently makes what her mother and I made (combined) made in 1991 (adjusted for inflation). The house we bought in 1991 sells to day for around $425,000. Her ticket to the middle class dream will depend on me dying. She’d need a down payment of $85k to $100k, and I don’t think she can save that much in my remaining days on earth, She will be extra lucky because her mom and I are divorced and she is an only child. So she will get two houses in her inheritance.
She could get an FHA loan
What is the recommended amount for a house payment? I thought it was 30% of her income. If she put less that 20% then she would be financing more and with an $85k income, she would exceed that 30%. Should she shift some of her retirement money over to her house payment? And that would also mean that her payment would be even more because of mortgage insurance. Then the escrow of insurance and property taxes. That would exceed 30% of her income by $1,000 per month,
She wants to fund her retirement…she needs to fund her retirement, but she would need to shift about $1,000 per month to her house payment from her retirement savings.
You only need 5% down to buy a home. You can do 3% depending on the loan.
30% of 85K would be 2125 a month. That would buy her about 350K.
Right. And if she was to try the home I am living in now, which is the SMALLEST house I owned, it would cost her 425k, The average home price in Johnson County is over $500K. If she put less money down, the amount she financed would be greater, and she would have mortgage insurance tacked on. That would add up to more than 30% of her paycheck going to housing. About $1,000 more. Shw2aould we raise the guideline on how much income should go to housing?
And yes…for the benefit of bears…she could live "east of Troost (you will understand what that means) into something cheaper, but would you want YOUR child and grandchild living there? Would you want YOUR grandchild going to KCMO schools?
Add the PMI in to that for a down payment less than 20%. That would be about $150. Property tax would run about $375 per month, and insurance woule run about $150 per month. so that is now $2800. Should she reduce her retirement savings and shift it to housing? And also…since I fully expect bears to find a house that he has no idea where in the city it is…you also have to factor it how far it is from work. The costs to commute. I can find a great house 50 miles from here, but the costs of commuting to work would add a lot more to her costs.
One of those costs is time. I am not going to sit in my car for an hour each way, every day. 30 minutes or less.
Average isn’t what she needs. She needs a starter home.
6317 W 58th St, Mission, KS 66202 | MLS# 2584908 | Redfin
290K. That would be well within her budget. 20% down would be 58K and a 2,000 a month payment. Mission is a more expensive area but it’s nice. I lived there. I am well know for being a classiest snob, so if it’s good enough for me, it’s good enough for your daughter.
You’re wasting your time, if it’s not a half million dollar home, she’d rather rent until somebody dies. She might be 50 before she has a home but that’s her choice.
KC is not looking for solutions. He is looking to blame one person for all the problems in the world.
Not really you idiot..I blame housing prices going up at about 4 times the inflation rate, thanks in part to artificially low interest rates under Obama and Trump.
The Fed sets interest rates, not presidents.
your right. that house backs to a Taco Bell drive thru and CVS, but they aren’t THAT busy all the time.
The Fed sure does. What did Trump have to say about that (before he became president…AND under the “disaster” of an economy he inherited?
And he named HIS guy to head the fed and when the fed chair starting “doing it’s job”, he had a shit fit and said that somehow democrats were trying to make the economy look bad ahead of the 2020 election. He said this ahead fo Covid…when we had the greatest economy in human history.
Lol… It doesn’t matter what Trump says, it’s what actually happens, which is the Fed sets the interest rate.
It’s not all doom and gloom for young people.