So you were making $80,000 and bought a $180,000 house, but someone making $100,000 could now afford a $303,000 house?
According to a mortgage affordability calculator, yes. If I was making a $100,000 a year today I would buy something less expensive and get a 15-year mortgage.
Isnāt the usual guidelines 3-5 X your annual income? In Bearsā example, the couple is making $100K, so a $300K house would be right in line.
What I have seen is no more than 28% of your gross income.
Depending on taxes and insurance Bears proposal would be pushing the higher end if that, or going over.
I agree and I would buy a less expensive home, I like living well within my means.
Yes, I do see that, though itās monthly gross.
Iām more conservative with that stuff anyway. No need for a bigger house.
Where do you find the less expensive home today if you couldnāt afford the one you bought back then?
Youāre a young couple looking to move into a house and the median price of a home in the US in 2021 was $428,700, which is 30% more than it was in 2020.
I did find a fun graph though - I know I am wrong about artificially low interest rates driving the increase in home prices, but this graph shows something really weird Hereās the median home price over the years
And this is the average mortgage rates over the years
I could have sworn I was wrong when I said low interest rates pushed up the price of homes, but Iāll be damned if it doesnāt look that way on this graph. The last time interest rates were at this level the median home price was $247k. Today itās $428k
I never wanted to work my ass of just to make a mortgage payment which is why we bought what we could easily afford. Saving for retirement, vacations, staying out of debt and being able to enjoy life is more important than bragging about my zip code or square feet.
Check any of the real estate sites KC, there are dozens of them.
Look up the definition of supply and demand.
Could yhou help meā¦O oracle of the city youāve never been to but know everything about? I know - you just ooze personal responsibility and would find something cheaper, but I think even you might pass on a nice starter home in West Garfield Park. Yet you have no trouble telling someone starting out today to move there.
10 Most Dangerous Neighborhoods in Chicago (2023) | PropertyClub.
Sure, go to realtor.com, Trulia, Zillow or any real estate site of your choice. Ender a zip code and your price range, if you canāt find a property for sale youāll have to extend the area you want to buy in. If you feel youāre too good for a home or neighborhood then youāll need to earn more money and save more for a down payment. Being an adult isnāt that difficult.
If someone canāt afford to buy in the neighborhood they want and refuse to earn enough money to live there they can rent for ever, I donāt really care and itās not my problem.
100% agree. I and taxed about 1/3, spend 1/3, and save 1/3. I could live in a VERY nice house based on my household income but I choose not to. I like to prioritize saving for retirement than keeping up with the Jones. When the Jones are broke in retirement, I am going to be living very comfortable.
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That is so good for you. But what about the young couple who hasnāt reached the level of having a very nice income yet, but still hope for the American dream for owning a home? When I was looking at our first house, There were several neighborhoods in the upper 80ās to low 90ās. But today, those homes (except in places like West Garfiled Park in Chicago) are well over $200k Today. Closer to $300K,. So even if they dream of a āvery nice houseā, but know that itās not in their best interest, moving to a āmodestā home still has house prices around $300K.
Thank you. I love the area east of Troost here.
And itās nice to know that if you were stating over today, West Garfield Park will allow you to get your foot in the door of the American dream.
If your kid was looking for a house, but the only thing he could afford is West Garfield Park - would you help him move in there?
I agree, two great feelings are paying off the mortgage and knowing Iāll have enough for a comfortable retirement. Unfortunately some people wonāt have either.
He wonāt have to, my son graduates in May and has already received offers starting over $70,000 a year and one over $80,000 but he doesnāt want to move. Iām not worried about his future, plus we plan on helping him with a down payment on his first place.
Fair enough
But you could also add a room yourself with bailing wire, cardboard, and bubble gum and we wouldnāt know the difference
I said imagine the average person. If your son got a job making $35k to start but wanted to own a home in the Chicago area, would you have him look in West Garfield Park since you have no problem telling others to do the same.