Buying A House In 2023: Is it even possible?!? Frugal Fit Mom Podcast
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- Опубліковано 7 сер 2023
- In this week's episode, Christine and Dave discuss the difficulties of buying a house in today's market. The Frugal Fit Spouses provide advice, insight, and sympathy for young people looking to purchase their first homes as they go over specific examples of houses currently for sale across the United States.
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What a lot of people don't consider is that millennials are not young anymore. We have families. We need more space and can't have roommates. The house I'm renting is 1000sqft, very outdated. I just want maybe 1200 sqft, and a second bathroom. Central ac would be amazing. I don't think I'm being unrealistic, but the prices are unreasonable. Everything over 300k
Yep…I don’t know that I’ll ever be able to buy a house. Moving is not an option and I have a degree…it’s crazy.
My husband and I just bought a house with my 28 year old son, his wife and their 2 children. 2 acre property. We are on one floor and they are on the other. We share the kitchen. We just split all costs 50/50. Huge benefit to all of us financially and emotionally. More and more families are living multi-generational.
I have 6 kids and I hope to still get along with them as they grow so we can do that. Live nearby or on the same property. I don’t have a great relationship with my parents so I hope it s better with my own kids. So far so good.
So true. Glad it is working for you guys
My husband and I helped our oldest buy a fixer upper that she pays the mortgage. We then bought another fixer upper that our second daughter and her husband rent from us (family discount) until they decide where they want to live permanently. Our youngest, a 20 year old son, is currently working on saving for a down payment on a duplex so he can house hack the other side. I'm sure we will be helping him with that as well. None of them could have done it without our help--pretty sad in these times. Fortunately, we are able to help them. Not everyone is able to do that.
I don't have any kids but I can tell you this... I bought my condo 4 years ago and if I had to buy my condo now at today's prices, I wouldn't be able to afford it. I purchased for 55k. Now the units around me are going for 120-160k. I can't imagine trying to pay for that mortgage with my salary as I am single.
Moved out of CA. Got my CDL. Put all of my stuff in storage for two years, living and working in the truck full time(70 hour work weeks and only 3 days off a month). I paid all of my student loan and cc debt last year and saved up for a down payment for a fixer upper midwest starter home for less than 100k. It's only 1k sqft and not HGTV perfect but I will have it paid off in 5 years. It can be done but sacrifices I made are not those that most people would tolerate.
My eldest is 20. Instead of buying a house right now, I'm throwing 2 tiny homes on my property. One for her and one for guests (and later for my son.) I'm charging her $700/month for rent, all utilities included. BUT I'm putting that rent in savings so that i can gift her a down payment when the market is right for her to buy a house.
I would love to something like this for my kid when she's older. (10 now) Unfortunately, our city doesn't allow it. I don't know why some city's have an issue with that.
In 2016 my husband bought a house at the age of 21. We put almost nothing down, but I’m so glad we made that move. We never rented, and put all of our money into a mortgage to gain equity rather than helping someone else to pay their mortgage. We are soooo glad we did that as we were then able to sell and move into our farm this spring.
Well done! Congratulations.
I think multigenerational living will become more common and has many benefits. This was a common way to live in times past and continues in many other countries. This way two to three generations can live together in a nicer home than they could afford separately. The support and shared workload is great. It’s how we live and we love it!
It's tough for the younger generation to save while paying $1,400 - $1,800 in rent a month. My first rent was $500! I think the expectations people have are much higher now, and that is a huge problem. The best thing you can do is start saving from a young age.
Dave was ready to get up on that soap box about the middle class 😂 PREACH!
I see us moving back to multi-generational housing.
Something to remember about HOA’s is that they can increase dramatically. I bought my house with an HOA of $65/month. It is now (10 years later) $286/month and it goes up every year! They can legally raise it by 20% every year!
This is true, but the aggravating thing is that you kind of have to put up with the HOA fee increases because the other choices are: but a whole house that’s unaffordable, continue to pay rent and never get on the ladder, or buy a condo with an HOA fee that increases and that is out of your control. None of the options are ideal, but if those 3, HOA fee increases feels at least somewhat tolerable in my opinion.
I'm a millennial single mom who've never owned. My eldest is concerned she won't be able to afford anything. We're definitely priced out of the west coast where we live.
Thank you for the acknowledgement of how hard it is right now. We’ve been aggressively saving for a couple years and making so many sacrifices, and it still feels incredibly out of reach. Hoping to find a home we can afford on one income so I can stay home with our kids, but our world is sadly no longer set up for it. It’s rough!
You really really need to do a pod cast with Miss Kimberly Whisk!!!😊😊😊
The Wads
Yes the Wads
Would be amazing. I love Kim.
On one of Christine’s recent vids on her regular channel she mentioned “Brownie Friday” and I wondered if that meant she watches Kim.
Thanks for breaking down the figures! Where I live in Australia, the average price of a house in Melbourne is $1,023,116.00 AUD/ $670,566.43 USD and average price of an apartment is $527,828.00 AUD / $345,931.17 USD which is very difficult to achieve on a single income! I keep saving (mostly) though 😉
Thanks for sharing. :) What is the average yearly income in Australia?
My husband and I literally just closed today on our first home. Its in Memphis for 272k, 3b/1.75b and 1600 sqft at 7.25% interest. It isnt a fixer upper but it is not even close to cosmetically appealing to us lol. And its on a corner lot. I am a disabled veteran and my husband is still active duty military. Our service benefits are the ONLY reason we can buy. And even still our monthly payment is higher than I was wanting. But we can do it. I dont know how anyone else is able to without the benefits we have.
Congrats! 🍾
That's exciting! Yes, you can do it!
Thank you, and hubby, for your service!
My oldest kids are 20, 18, 16... and this is precisely why we require them to get real jobs at 16 yrs. Our oldest 2 have bought their first cars and the other is on track to buy her first car in about 6 months. They are also paying cash for community college while living at home. We talk a lot about budgeting, frugal choices, and maximizing their savings. I've also been telling them to plan to rent for the first few years after they leave home. Renting allows you to be flexible in moving for job opportunities AND you don't have to deal with maintenance issues. You just have to be smart when choosing roommates and realize friends don't always make good roommates. We rented for the first 6 years of our marriage and I have not regrets about it.
We do the same with our kids! Job at 16. They paid cash for their cars. We matched them up to $2,000 so they could get a better vehicle. But the pay for gas, insurance and keeping it maintained.
I wish more people would see the value in teaching kids about ownership. Yes they work and juggle school and other responsibilities. But they value what they earned themselves and that gives them purpose and satisfaction through their own hard work.
Definitely keep budgeting in the conversation because I feel like there are so many people that have no self control!!!
@@tacofarmstudios154 It's ironic that parents think they are helping their kids by making these easier (buying cars, paying for college, etc) but the reality is they are hurting their kids. We need those hard choices, those seasons of struggle, to teach and train us to exercise self-control and how to evaluate needs, wants, conveniences, necessities. It's so much easier to build those financial muscles when the stakes are low!
I live in a MCOL area and the average studio apartments are 1500-1800/mo. there is no way to save for a down payment on that. I saw one, ONE unit for 1k and all the reviews complained about roaches. yikes.
Here in New England housing is so expensive. We bought our home in the mid 400s and currently they are selling for 800-900,00. That is crazy. Its a 2400 sq. ft home. Young adults who grew up here cannot afford to live here
We looked at TX around Houston like Spring etc. The homes are afforable but their property taxes now are insane. Like over $600 mth so we decided to stop looking there. Then you add in the insane heating/electric bills it's just not worth living there.
My husband makes 145k, i have no clue how ppl are paying even 1/2 their monthly income on a mortage. Plus we own 1 car which is paid off. We do have 2 credit cards but still, its crazy right now.
Starter homes in our area are about 370k. Most new homes are built by custom builders, 3 bedroom ranches for 500k. Even Habitat for Humanity homes cost $240k.
The area we originally thought we’d buy in went up 230% over three years. My wages went up…15%.
Unless something drastically changes, I have had to acknowledge that I may not own a home until my parents pass and I inherit theirs. As a recently divorced mom of 3, that’s been devastating for me. I keep hoping for a chance, a blip of relief, regular child support even. Sadly it’s just not realistic to raise kids alone, rent in this market, and also save enough to buy. 😢
My 37 and 35 year old son and DIL were able to buy a nice house anout 18 months ago in California but that was becsuse she owned and sold a smaller home so they had alot of equity from the old house to put down on the new.
My son has a good job and their mortgage payment is under $1,500 so they are able to do it on one income. I was told as you said that property taxes are extremely high in Texas even though the homes may be less expensive than other areas.
It's so nice how you guys broke things down to help people thinking to buy a home😊
I grew up in Sylmar California my mom still lives in my childhood home. She lives off a main Boulevard in The Last 5 Years they have built apartment complex after apartment complex and several families are living in one unit to make the payment. This has made it very hard for my family because when we go to visit my mom trying to find parking on her Street is terrible. It definitely has changed since my years growing up there.😔
It's crazy to think that in 1991 my hubby and I bought a 20x30 house on 1.1 acres of land for $42K. We couldn't afford the down-payment, but the owners REALLY wanted to sell, so they paid 10% down for us! We eventually built a 24x32 addition onto it and refinanced. Our monthly payment was still less than our son is paying for rent for a 2 bedroom apt!
I am from Michigan and I know the Midwest is probably the most reasonably priced in US. I find 2200 sq feet for a starter home as very LARGE! This might also be a regional thing. Everything is bigger in Texas! Our starter home was just over 1000 sq feet and we have 3 kids, you have to make due with what you have. My exact starter home is now for sale for $135K, extremely reasonably priced if you ask me. We sold it in 2016 for $65K so yes the prices have skyrocketed. My current "forever" home is only 1400 sq feet, but we moved for the neighborhood into what was affordable for us to not be house poor.
In CA, lots of people had roommates or lived at home to save money to buy a home
We are a family of 8 and have been getting our money act together for 3.5 years now. We are currently saving for a house down payment. I’m hoping and praying for an adequate home for when the time comes that is within our price range.
I live in Scotland and bought my home 7 years ago (not the best time because of brexit). I was house poor for a couple of years and am now in a better situation because I learned how to manage my money properly. I didn't go for the biggest mortgage I could get, and I paid the biggest deposit I could - 20%. I couldn't afford a house as a single person so bought a cottage flat instead. Don't know if these are popular in the US but it's like a big house split into 4 apartments. I have an upper apartment and I have two really big bedrooms, a bathroom a lounge a dining room and a teeny tiny kitchen! My garden is really big and I have a separate driveway. I think apartment living can be done too if that's what you can afford. Going for the biggest most expensive house in your budget is not a good option!
My son & I purchased a brand new house, 4 beds. 2.5 bathroom 2,095 sq.ft. for 223k in East Austin. Now houses 400k-550k, and that's low. Property taxes went up with value last year, and I paid 8k. Hoping to cut in half lower valuation in 2023 65+Homestead
My husband and I are older Gen Z aka 25 and we bought our first home last year. Got married at 20. I stay at home now but worked the first couple years of our marriage. It was hard work but I married a man that’s financially wise and we are both frugal. We saved the majority of our down payment when my husband was active duty enlisted so we weren’t making much. But we didn’t eat out or travel crazy because home ownership was our goal. Now we live in a 200k house that we put a 20% down payment on and it’s honestly my dream home.
I couldn't afford my own house (bought 5 years ago) with the current prices and rates!
I've seen several in my area move in with grandparents. It gives the grandparents a hand, or company, or whatever while giving the young couple a chance. Hard all the way around.
We bought our first home in 2014 when we only had 2 kids. (3bed1bath) For $85 thousand. We now have 4 kids, one is leaving for college this week and people often ask us how we do it. I would not trade my house payment for anything, we make the space work. We like the luxury of the freedom we have not being married to a huge payment. My heart does hurt for people who want to buy in these times.
SAME! We have 4 kids 2 years apart 8 years-old and under. They're all little now, but we're making our 1900 sq ft, 3br house work. Thankfully we have 3 bathrooms (you're a saint for sticking it out with 1!). Our very large dinning room table takes up half the downstairs. The kids have to share small rooms. But we're saving, kids can do activities, and we don't have to worry about crushing debt!! I'd rather not be house poor!!
@@trackee2024 The bathroom is a challenge, thankfully we only have one girl and she’s the one moving away. Yes it’s so nice to provide for the kids and do fun things without the worry about finances.
We are in the situation of where we could make a killing profit wise on our home, and would be nice to have more room. But our current rate is 2.4% interest and a voluntary $50 a year HOA . I don’t know where we’d move to if we sold.
2,200 Sq feet is not a starter house size and for many people too large and too expensive. As to property taxes they ain't never going down so better have a side gig or two.
We need to encourage small house living or tiny homes for those who want them. The reason being is that rents are becoming uncomfortably high, nd owning a home is out of range for many people. Mortgages adding in insurance, heating , utilitites, pmi, taxes, repairs are just not reasonable for a certain % of the population.
My daughter recently turned 24 and just got approved for an apartment yesterday. I'm heart broken, even though I realize this is normal. Our contribution to our kids' college education is supporting them through college. They can live here. No rent, no grocery costs. She does pay her car payment and eventually took over her phone bill when she got a job, but they are not required to work while in college. She graduated from college in May. I want her to stay here. I'd be happy with having a multi generational home and all my kids staying here forever. She works as a CNA. She has a BS in Sociology. We live in TN. A 1 bedroom apartment is at the cheapest $900 a month. I told her I'd show her how I budget, and I plan to buy her some things. I'm having her put together a registry.
We have 3 other kids, and I know shes partly moving out because of proximity to work, but it's also so our youngest will have his own room. I don't want her to leave. She's so so thoughtful, though. I had her when i was 16. I don't know how to live without her. I sound pitiful. Lol. I turned 40 this year. I embrace it. I cherish all the milestones. I don't let them bother me or make me feel old, but I've been crying since she told me yesterday. I know itself normal. I lnow.
Anyways. My thoughts are that the prices are crazy. We need to nake repairs and material costs are insane. My daughter and I looked around at houses and apartments and just land and everything was ridiculous. We want houses beside each other eventually.
I live in Australia, when my friends or family ask me my advice and how we bought back in 2017, I always tell them the #1 you must must do is SAVE as much as you can. If they you need 20% you save 25-30% to even 40%. It’s a shit tonne of money BUT the more you have as down payment the less the repayments are. ALSO you don’t have to put the whole thing down, but being first time home buyers/builders, the council rates and bills that you have to pay full for are a shock value. It really puts you into shock if you are not prepared for it at all.
I think we have to go back to “starter homes” and recognize that you will not have your forever home right off the bat. We move from apartments and college housing with marble countertops and think that is the first house we are going to move into and that’s not the case. Realigning expectations with what to start with will be so key with acquiring a home. Also, living without debt and well within your means is another crucial point.
I think this is a major oversimplification of the current housing problem. There is now very little profitability in “starter homes” and developers aren’t building them at nearly the rate we need. This issue is being compounded by people and corporations buying up the supply of entry level homes for renting purposes. Last year over 25% of ALL single family homes were purchased by investment firms. Sure, there’s probably people who whine and complain and need granite counter tops , but there are millions more who are being denied the opportunity to get on the property ladder while these homes are used to beef up investment portfolios
@@ayela562 spot on 👏
Even "starter homes" are challenging to buy now.
We can’t even find affordable starter homes….
I just bought a home. In my area renting an apartment is the same as a mortgage, renting a house is double a mortgage, both are plus all utilities. In rural America it's more affordable for couples, harder for single income, but it can be done. I also think that most people are demanding that the whole house be recently updated/remodeled when they could save so much by having older cupboards/ backsplash and older bathroom sink but both still in good condition. For a while I was forced to consider foreclosures with literal 💩on the carpet, mouse 💩 everywhere, and siding falling apart just to get in a home. I upped my budget a little and got a house with updated plumbing, electrical, roof, siding, bathroom and CLEAN!
I moved from CA to Texas in 2022, a 3 bed, maybe 1 1/2 bath and fixer upper over a 1m, on the bay area, peninsula.
We live in rural PA,we have 2 married kids,our son and his family bought a fixer upper in 2020,the house is very livable on 2 acres,$220,000,one income,our daughter and family are renting a 1 acre,3 bedroom ranch house for $900.00 a month,also 1 income,stacking up cash,they’re very lucky to be living in such a beautiful country home for such cheap rent,another son who’s single rents a completely renovated 1 bedroom apartment for $1000. Ages ranging from 27-36,our youngest daughter 21 rents a 4 bedroom apartment with 3 roommates and our 23 and 25 yea olds still live at home but have full time jobs and our house is plenty big enough for the little bits of time they actually are at home,our kids all started working young,no college and in 2018 we were lucky enough to find a 6 acre property with completely renovated 1750s beautiful stone house and commercial building for $335,000. Market value probably doubled since then, we are very blessed!
Prices are out of control. I live in NY and am currently looking to buy a bigger home so my mom can move in with me. Where I am in NY, the 2 family homes start at 800K and are GUT JOBS!. New builds are starting at 1.2 million. ONe family homes are not any better. They are starting at 7k and are gut jobs (no one seems to take care of their homes anymore). If you want something decent you will be paying closer to 900K. So, for now i have to stay where we are or move out of state. Very sad and discouraging, especially for those just starting out.
I’m so glad you are talking about this! I’ve had this discussion several times in the past year because I have a 21 year old son still living at home. We are in the DFW area in Texas and rent is high!! Finding a safe neighborhood that won’t break the bank on his small income is tough. He has a good full time job where there is potential for growth, just graduated from a technical school where he paid half of his tuition and is an army reservist. He’s not just loafing around not doing anything. The plan is just to save for as long as possible while he gains more experience at work. He doesn’t want a roommate right now because he doesn’t want to get burned or caught up in drama. We’ve talked about him saving for a town home to start out but he frustrated because he feels like it is so out of reach. He’s still young and I know there is plenty of time to achieve what he wants but I can see how frustrating it is for someone just getting started.
I really enjoy your new podcast! We are where we are now, funny enough, from buying a double wide in a nice trailer park as newly weds. Everyone said they loose value. But we paid it off. Sold it for more. Used the price as 20% down on the next home. Stayed there 5 years and made a ton, used that money to put 20% on the house we have now. Time really increases the values of the homes in MN over the last 10 years. Our neighborhood we bought our current home in hadn't had any new builds in 15 years. Since we moved here 2 years ago. They are putting up 6 houses! Also, I always encourage people to write a letter with a picture when you put in an offer. The people picked our offer, $20,000 below asking because they built the house and they choose us because of the letter.
Such a great episode! I’m 30 with my husband and two kids. We just bought our second house. We have 1 income household. It was SO challenging to find a house we could afford that wasn’t in a bad location or needed a major work. My husband is in ministry so doesn’t make a bunch of money. Thankfully we had a super cheap affordable home we were able to sell which helped for the down payment. And had money saved on the side. But you can’t find a move in ready house that has 3 bedrooms in a nice area under $300k. It just isn’t possible where I live. We bought a fixer upper, that’s on the smaller side. The work needed isn’t huge ticket items and things we can diy for the most part. We had to make compromises. Unfortunately you can only cut out so much in your budget. We re hoping we can refinance once rates go down again! Good luck to all moving. It’s rough out there.
We are a single income family, my husband's disabled and we are still fighting for his disability, we are completely debt free, but our income is about 48k a year, we can not leave our very expensive state due to custody arrangements for at least 4 more years.... with saving as much as we could through covid, lowering our expectations in what we could afford in a safe area (think 700 square feet) and a miracle we found a house we could afford.
My husband and I have moved with his parents, so we could sell our starter home. We have been saving and with the sale of our home we have good down payment. However, our current real estate market is sparce. The prices are starting to come down slightly, but the inventory is very low. And almost all homes in our price range are in subdivisions and new builds. We want private land with no HOA. Which is a unicorn in our price range right now. So we are thankful for the option to save while living with my in-laws.
I did exactly what Dave did and worked a bunch when I was young and saved it all and then got a job that I worked for almost 15 years and we saved it all. We sold our starter home and got a new house and we needed to put way more down because the loan had to be under $417,000 for the jumbo loan. Our mortgage is 50 percent of our income and has been for many years. It’s a lot. Take a look in Virginia and DC area. It is crazy prices here.
I did this when I was 21. I bought a house, had two college roommates that paid a little over half of the cost of the mortgage plus utilities.
Then as I made more money I only had one roommate, then when the last one left I just enjoyed my house that is now worth almost triple what I paid for it. But I am in DFW so the property taxes are horrific.
I'm still friends with some of those roommates.
My sister on the other hand did not move out when she could and now feels trapped at home, while she's saving for a down payment its going to take alot for her to stay in the area she wants to live. But she's working hard to get there.
I would say rent and save for a home except in my area rent is so high it is often more than a mortgage. So not easy to make a decision
We are going to let our kids stick around as long as necessary, as long as they are either going to school or working. However, if they over 18 we are (1) not co-signing for any sort of loan and encouraging them to go to school locally and (2) charging them 'rent'. We are going to have them deposit it in an account and we will sign it over to them when they are ready to buy a house when they start their families. That way they will have a significant chunk for a down payment, hopefully.
My daughter is 27, bought her house 2 years ago. Northern MN. Smaller town. So they got a loan that didn't require a down payment because of the area. I believe it was about $175,000. Its 3 Bedroom and 2 Bath. Not a huge yard, but enough. Definitely more of a fixer upper, but more than adequate for living in. Basement not finished. They got in at 2% interest.
Because of that they will probably be there longer than they thought, but its a good house. Main debt is school loans and the house. (1 car-not much left) It can be done if you find the right area. (Shes a teacher-only 2 years in and he's a Civil Engineer almost 4 years in. They have had 2 kids (only 1 living now) and do pretty well, because they don't overspend or live outside their means.
In my area in California (Los Angeles) a two bedroom two bathroom town home in a decent area goes for around $750,000. That doesn’t include home owners association fees or insurance. Single family houses, are around $900,000 for a starter home. None of that includes property taxes or earthquake insurance. Granted, the incomes here (including mine) are much higher but the cost of some of the houses you mentioned are just a 20% down payment on a small place here.
I am the 25 year old that was trying to buy a house. I live with my parents and have a significant amount of money for a downpayment but my income just isn’t high enough to stay under a third of my income. I live in Massachusetts so you can’t buy anything under 300k. It’s so frustrating to look at houses because with the amount of savings I have and being low income I could afford a house 3 years ago. I just wasn’t in this position then.
My husband and I just bought our first home today in south west Sydney Australia. We have been searching for a 3 bedroom free standing house with a big backyard. But it’s escaped our price range unfortunately. We ended up buying a townhouse, it’s not our forever home but it’s a good foot in the door. We paid $670,000 for a townhouse in a “bad” area of Sydney… so crazy! But figured we better jump because the Australian government is accepting 1.7 million immigrants into the country over the next 5 years. There is already a major housing shortage and homelessness.
Love your videos ❤
Yes it’s crazy! I work in Nashville but moved just outside it. I bought and pay for it on one income but the ONLY way I have as much house as I do (1756sq ft/half acre), is I have 2.75% interest, which I know I’ll never see again lol. I bought and now looking at listing to sell, in just 2.5 years, it’s $100-$120k more than what I paid. So on top of the huge jump in prices, the huge jump in interest would make it impossible for me to buy this home again.
I just started earning well more or less and I’m turning 28 in novembre and I finally can start saving for a house, and it’s true that I don’t know at what point i will be able to afford a housing of my own. I live in Switzerland and prices here just for an apartment of 2 rooms 1 bath is about 400’000 Swiss franks about the same in Usd. I try to save a lot right now for an emergency fund and we have to pay a lot of different insurances so my basic expenses come up to 2500. So unless I really don’t go out and do anything I won’t be able to set much aside. I’m not really a fan of house hacking since I like my space and quiet but I would be interested in (one day) buying an apartment and then renting it out room by room to students for example.
P.S. love your podcasts and your main channel videos, they have really opened my eyes on grocery shopping and frugal life style that is nothing like I see around me and I really love it ❤
Yea, I trouve that situation with real estate in old Europe is even worst. We live in appart. of 62 square meters pour 300k€ (family of 4 persons, 2 bedrooms, the kids share the room). Family income 61k€ (what is considered as high income), France (not Paris :) ).
Buyer assistance programs. USDA rural loans for less than 3% down in qualified areas, NACA homebuyer assistance, FHA loan for 3.5% down and option to buy down your rate. But the prices are crazy. We have a 3bd 2.5 bath 1500 Sq ft townhome with NO yard that we bought in 2018 through FHA It was 155k. An identical house next door to us just sold for 265k. Most houses in our area are being bought by investment firms rather than families.
I think it's possible depending on where you live. There are 3 bed, 1 to 2 bath homes in my hometown for $125k-175k. You can find 2 bed 1 bath homes for under $100k. You could probably find some cheaper that need some work. Pretty much the same in the town I live in now. That's for standalone single-family homes. The payments on the lower and midrange houses are cheaper than rent, even with insurance, mortgage insurance, and taxes.
I'm seeing a lot of comments here about multi-generational living.... Don't get me wrong, I do like my parents and in-laws. That said, I couldn't fathom moving in with any of them as a married couple, especially while on the younger side. Some people dream of living next door to their parents or in-laws, siblings, etc. and I know that works well for some! But that really depends on family dynamics and in some cases, I think it could be damaging.
Just like how for some younger adults, staying at home five extra years makes sense financially.... But in some cases, the home climate isn't conducive to their health or growth as a person, and it shouldn't be done.
As a Canadian, I am watching this thinking how cute your reactions are to those prices. The average price of a home nationwide is $650k. In my area, more like $900k, where starter homes go for $650-750k. One bedroom condos are a "steal" at 450-500k, but don't forget the condo fees of $500-1000/month. An income of $220k/year is needed in my city to afford a home. The average pay here is $65k/year. Short of polyamory, a single family can't afford to buy.
So what does everyone do?
Another hack I was thinking about is getting a studio apartment and installing a bed that comes into the ceiling and use the space as a living room during the day like the bumblebee spaces (to buy less square footage but get more value out of it)
Starter homes can be small. I love the idea of young couples renting out part of their home to other young people.
Bad idea!!!
We bought our first home from my husband's parent's "AS IS" for 60K. We did all the work ourselves, including new kitchen, bathroom and new flooring. We even hired a company for a new roof, siding and windows. It was only 1200 square feet, but we lived there for about 20 years. We sold it for $250,000. We put that money down as the down payment for the house we bought 10 years ago for $425,000. It was in the neighborhood that we originally wanted to be in all those years ago, but we couldn't afford 250k back then. It kind of made me knowing that we paid almost twice that NOW! The thing is we are almost done paying off our mortgage.
The crazy thing is that NOW, just 10 years later, these homes are selling for $800K!!!!!
We are in NJ, and it doesn't help that our property taxes are over 10K per year. I can't see how anyone just starting out could afford ANYTHING around here.
Our old house is now going for 500K... 1200 square feet with just 3 beds and 1 bath and teeny tiny apartments are renting at $2500 per month.
“No wonder they don’t want to work.” I felt that 😂😭
It’s not the best time but we are in the process of buying a house. We have been saving for 4 years for down payment. It’s a 235,000 house and we’re giving 60,000 for DP. One income and we’re going to be tight with the mortgage. BUT rent went up and mortgage is going to be 400 less than rent in the whole area. It was a hard decision. We needed to choose between being homeless or having mortgage. Very sad the situation we are living right now.
Don't get discouraged. You'll get there! I get the idea from your post that though your budget will be tight, you know how to make it work.
When you do buy, if interest go back down in coming years you can refinance, if you choose.
This is reality… and so depressing
Rent is going crazy too… it’s so frustrating 🤦♀️
OMG i wish a house cost only $329k - average aussie houses are around a million, in small country towns an hour out of the big cities. its completely crazy.
I would start with one bedroom apartment and as income grows then later buy an appropriate size home and choose to either sell a paid off apartment or rent it and help pay for new home.
Renting out rooms is way to dangerous today... My son is 29 and we share a share a home, because no way can he or my husband and I can afford to buy homes of our owe... We live in Florida and renting is through the roof... And to buy a house forget it...
I don't know how most people do it. We have a lot of advantages in that we inherited some money that boosted us to 50% DP, we never had other debt, we have a sub-3% interest rate, we moved to where we are in 2017 before prices got too out of control (though it felt high then), we have 400 of our 2700 sqft that we Airbnb, and still our mortgage payment is what you can barely rent a tiny, old place here for. We bought for 350k 6 years ago, house is almost 50 yrs old, now Zillow has it over 600k not counting all the renovations we've done.
I live in Salt Lake and those apartments going up everywhere rent for 2K a month for a 2 bed 2 bath. It's nutzo. We have floated the idea of turning our double garage into a tiny home so our. 1 kid can live there during college any beyond if needed. My MIL has her will giving us her house and we have our house willed to our kid. I really think generational wealth and multi-family households will become more common in the US. They are really common in other parts of the world, especially in Asia where space is at a premium.
very enlightening -however Extremely realistic.... I wish That I would have had A crystal ball
Ugh. We make about 120k with two incomes in Utah and it’s tight. The cost of daycare is a third of our income, and we pay the cheapest rent of anyone I know because we have angel landlords. But we can’t buy a house here and pay for daycare, and it’s too expensive to go to one income. So after almost two years of looking, my husband just accepted a job at a reservation hospital in AZ. He’s applying to the USPHS as well (they’d be concurrent, similar to the national guard) and if that is approved, his total compensation (including the 25k/year loan repayment) will be about what we make now, except no more daycare costs. I’m so excited that we may be able to buy a house in about a year, I could cry. We’re 36 and 38 and the schooling and career road has been long, I’m so looking forward to feeling more settled. Without this opportunity, we’d be SOL for another 8 years until he received PSLF at his current job (if it still exists😳😬). Crazy how different some of my friends lives are who bought homes earlier, while we waited for my husband to finish grad school. What a kick in the butt that turned out to be lol
Been waiting for a new episode 😁and I love this concept
Yes I would agree with they are not wanting homes owned
I've pitched my wife multiple times on the idea of financing a lot and buying pre-fab tiny homes. The kids and my mom would love it and we'd be able to scale our property as needed. Would it pass zoning? Maybe. Will it pass my wife? No. She is a "traditionalist" who can not see the value in a multi-generational multi-building complex. Mind you, she also does not earn income, so it's the single family by the beach forever. Our parents are basically estranged at this point and our kids are couped up with us. Meaning we get maximal stress, but remember it's normal, that's what you do. (Don't tell her I typed this BTW).
Next month I'm going to be saving up for a down payment so thank you for making this video. I plan on putting the savings into a high yield savings account and working a second job as a low income earner. I have a huge why which is encouraging me to get to my goal faster. The price of homes will continue to go up but I'm not worried about it due to my plan following Dave Ramsey's baby steps.
Great topic as so many people think that owning a large mortgage is the epitome of wealth ended falsely convinces them that they are homeowners!
We are retired with a nice nest egg. We are helping out adult children buy a house by gifting them money annually now, rather than after we die.They both live in Texas also!
I'm an "old millennial" at 38 and had to move back in with my parents. Lucky for me it's not an issue in our culture and they don't charge rent. Otherwise it'd be really rough especially with health issues
I'm 29 and technically have my own home but it's shared ownership (UK, don't know if that's a thing in the US?). So I own 30% of the house with a mortgage of £51k ($65k), and pay rent to the housing association for the remaining 70% which right now is £183 a month ($233).
It's not a perfect solution, it's a tiny 440sq ft one bed house and the rent will keep creeping up, but I can look into buying more of the house later on or just moving. That said, on a single fairly low income there's no way I could afford my own place otherwise.
I disagree with the 20% down payment. I only did 3% and if I didn’t do that I still would not be able to buy a home as a single person. I was able to refinance and take the PMI off.
For us- millennials 35- the answer is wildly high income got us very modest home. Solidly over 6 figures and growing annually got us a $360k, 1400sqft, 30yo 3 bed 2 bath house. No one is impressed, but we are making more money than our Boomer parents ever did and have a smaller and older home than they ever had. We can afford 2 kids in daycare and a modest home, but our take home is $10k + side hustles. For our young children we are well aware we will need to save up toward their college, weddings, and down-payments if we want them anywhere close to as well off as us. So that’s what we are doing!
Such a cool idea for a video!
I believe we are headed to generations staying/living together. The middle class is between a rock and a hard place . The insanity of prices for homes, good, gas, etc is crazy. Another point is how many people have student loans for degrees that do not provide high salaries. The only sunshine I can see in this is maybe the extended family unit will become valuable again.
The real estate industry/lifestyle inflation consumerism mindset has its claws in you good for as much as you mention "starter home."
Those apartments in salt lake are high priced too. Studio $1200-$1400. Yikes.
We brought a 1 bed 1 bath maisonette with 450sqft and have been here for 5 years now. Our cost of living is insanely low, saving is easy, holidays are affordable. But we are struggling to move onto even a 2 bed house even though our household income has basically quadrupled because house prices locally are rising so fast (not on one bed tiny flats though...). We are fine here realistically until we find the right house, but if we wanted kids renting would have been better as I'm 33 already and so time would be a factor. You have to consider your life goals too.
The key is to for men to have good paying jobs!!!! Yes sometimes it is the mom and the dad stays home but usually the dad works......
Come back to Texas! Your shirts and all things you discussed make the case that it still has your ❤
How about whole new housing communities being built and all the houses in the community are for rent only? Move twenty five years later after paying $600,000 and walking out with nothing.
Apartments are going up everywhere but those rent like 2,000/mo in our area.
Rent in my area is insane. Our 18-year-old daughter going to college and living at home bc dorms cost almost $10k extra on top of over 40k a year. She did get a lot of schorships and grants to help, but YIKES! The rent and housing market are 🍌
Many states have down payment assistance programs. Definitely worth looking in to for a first time home buyer 😊
Love this one! Where can we find d the budget template for budget breakdown?
Save early, buy condo or townhome, slowly turn that into bigger and bigger homes as able and needed…
I live outside of Boston with my husband and our two adult children. Our daughter is 25 and looking at apartments with a friend. The rent seems to be about $1,700 a month on average for something decent. Our son just graduated with his masters and started a full time job this week (yay!) and would like to move out also in the next few months. I just don’t know how people (kids😉) their ageish will be able to make it buying a house or condo without family help of some sort. Even starter homes are outrageous. Very sad