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Started By
Message
re: The math for buying a home no longer works, per WSJ
Posted on 12/20/23 at 9:08 am to GreatLakesTiger24
Posted on 12/20/23 at 9:08 am to GreatLakesTiger24
Clearly the math hasn't worked for a while, this didn't just happen.
Don't buy houses you can't afford and that are over priced, and this current income to cost ratio wouldn't exist.
Don't buy houses you can't afford and that are over priced, and this current income to cost ratio wouldn't exist.
12
Posted on 12/20/23 at 9:11 am to Steadyhands
quote:Exactly, the market would be forced to correct itself.
Don't buy houses you can't afford and that are over priced, and this current income to cost ratio wouldn't exist.
Also, I’ve been saying for years that there are an assload of affordable houses, they’re just in neighborhoods where people don’t want to live. Addressing this issue would bring housing prices down also.
Posted on 12/20/23 at 9:14 am to Steadyhands
quote:
Don't buy houses you can't afford
Agreed
quote:
that are over priced
I mean that's all houses anywhere remotely nice to live right now. I bought 6 months ago because I was sick and tired of waiting for a crash that isn't going to happen. Maybe my house will dip 10% of it's worth at some point, but I was sick of renting and not having roots anywhere.
Posted on 12/20/23 at 9:15 am to Steadyhands
quote:
Don't buy houses you can't afford and that are over priced, and this current income to cost ratio wouldn't exist.
Seems like you're missing the point of this thread.
The average hope price is 400+k
Median income *now* isn't able to support buying at the average house price
Has nothing to do with buying outside your means brah.
Posted on 12/20/23 at 9:15 am to Steadyhands
quote:A big issue is foreign entities and corporations buying these overpriced houses as investment properties. Drive around any neighborhood in the Austin area and you'll see multiple single-family homes with For Rent signs.
Don't buy houses you can't afford and that are over priced, and this current income to cost ratio wouldn't exist.
This post was edited on 12/20/23 at 9:28 am
Posted on 12/20/23 at 9:28 am to Steadyhands
quote:
Clearly the math hasn't worked for a while, this didn't just happen.
Don't buy houses you can't afford and that are over priced, and this current income to cost ratio wouldn't exist.
Buying a house to live in and calling it an investment has never been a good idea. At any time in history if you broke even after taxes, insurance, interest and maintenance you were fortunate. If you did the maintenance yourself you may have saved some money but you had an opportunity cost that is impossible to calculate. If you did make more than it cost to own and you did not down size or buy again in an area where prices had not increased all you did was swap one "asset" for another of equal value. This does not include the fact that owning a pile of bricks can be an anchor that keeps you from growing your career and taking advantage of opportunities. Owning a home is an expense. If you are fortunate it may not cost you much more than renting to own it. The piece of mind from owning is very valuable to some but that is often replaced by regret over the costs of owning.
Posted on 12/20/23 at 9:29 am to Steadyhands
quote:
Clearly the math hasn't worked for a while, this didn't just happen.
Don't buy houses you can't afford and that are over priced, and this current income to cost ratio wouldn't exist.
Clearly we should cancel and stop all volume builders that build affordable homes.
Posted on 12/20/23 at 11:46 am to Steadyhands
quote:
Don't buy houses you can't afford and that are over priced, and this current income to cost ratio wouldn't exist.
How does that work with a hyper inflated housing market and a booming rental industry?
This post was edited on 12/20/23 at 11:47 am
Posted on 12/20/23 at 12:35 pm to Steadyhands
quote:
Don't buy houses you can't afford and that are over priced, and this current income to cost ratio wouldn't exist.
Nobody wants to live or raise a family in the neighborhoods that currently have $90K homes for sale.
Posted on 12/20/23 at 12:57 pm to Steadyhands
quote:
Don't buy houses you can't afford and that are over priced, and this current income to cost ratio wouldn't exist.
I think investment groups buying homes above property value have caused a lot of this, not individuals
Posted on 12/20/23 at 1:09 pm to Steadyhands
quote:As a realtor I can tell you that would cut the sales in this country by a minimum of 25%.
Don't buy houses you can't afford and that are over priced, and this current income to cost ratio wouldn't exist.
I tell people constantly not to overextend themselves, but few listen.
Posted on 12/20/23 at 2:23 pm to Steadyhands
quote:
Don't buy houses you can't afford and that are over priced, and this current income to cost ratio wouldn't exist.
incorrect. People that CAN afford houses are buying them and then either renovating and flipping them or renting them out.
The market won't fix itself because the landlords can just pass the increased prices off to their renters by raising the rent to match the market.
IDK how you legislate against that considering we live in a free society but somehow making families that want use a home as a primary residence needs to take precedent over landlords. It won't happen naturally cuz the landlords offer cash at or above asking price and average families get priced out.
Posted on 12/21/23 at 5:33 am to Steadyhands
quote:
Clearly the math hasn't worked for a while, this didn't just happen.
Don't buy houses you can't afford and that are over priced, and this current income to cost ratio wouldn't exist.
but for the most part it did just happen. From 2020 to now, house prices went up 20-40% depending on where you live and some places even more. That gap did just appear much wider than it has been ever. It floated through until now because a lot of home buyers also sold their houses for huge gains and were able to put down more on a new house. The downside is it blocks out any new home buyers from the market without a crazy amount of down payment.
What will happen in the next five years will be a 40 year mortgage added to the list. This will drop monthly payments by about 10% but the payment is all a lot of people worry about. We've seen this in new vehicles, the prices have gone up so much that people are borrowing money for 7 years commonly now and sometimes up to ten years now.
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