this post was submitted on 13 Sep 2023
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A) poverty
B) you need to qualify for a mortgage, even with first time homebuyer programs
C) you severely underestimate what the mortgage is
D) people aren't always expecting to live in the same area for more than 5-7 years, at which point you've spent tons of money on closing and PMI that you absolutely aren't coming out ahead on
A) I've been in poverty my whole life.
B) By-owner financing is a thing, I mentioned it already. If you qualify for renting, you qualify for the first time homebuyers programs. You're making excuses and you clearly don't know how these programs work.
C) Again, nope.
D) Covered that already. Closing costs are miniscule compared to the amount of equity you build, and first time home buyers programs cover closing costs, enough with the copium.
I bought my house without a front door, no working a/c, water pipes cut off inside the walls, no toilet. Learn how to do shit for yourself. I learned all the shit to fix my house from YouTube videos.
Where I live houses are like $450k minimum for something that doesn't need major work. Even with a n FHA loan, the mortgage would be untenable. I've given up owning a home here.
A small shoebox here is upward of 550k. And at that price, you need to put another 100k if you do things yourself because the house is a shitstain.
Buy a house that needs major work. Do the damn work. That was the only way I could afford mine, and if I can do it, so can you. And stop living in the city, live out in the rural areas.
So you need to pay a car and gas on top. Very good idea!
I bought my cars at auction for like $2.5kish. They have them all the time between 60k-160k miles on them. Look at your local car auction, you don't have to pay a $600/mo loan on a car as well.
You do have to pay the gas, and you do lose hours each day to go to work. Gas these days is at least 100€/month, possibly more.
~~No it's not. Typical car holds $35ish worth of gas, and that lasts 4-5 days of travel to/from work. And I lose an hour a day for a 30-ish minute drive. Woo...~~
Edit: Okay, so I can understand European pricing being stupid here. I can agree with you when it comes to gas over there. But the population density is twice as dense over there as it is in America, so obviously arguments aren't based on European gas prices. I left my comments but leave it able to be read. I'm not one to shy away from being wrong. In your instance, with gas like it is over there, I concede.
Genuinely... you seem very out of touch. Your entire premise is incredibly ableist. You presume that anybody can do the things you're listing, but many of us are living with disabilities, and not everyone has had the opportunities you have had to have enough money to pay for a house, or to buy a car. A $2.5k car is ultimately, MUCH More expensive than buying a more expensive car, because you are getting one that's barely functional for that price. Once all my bills are out of the way, I take home $100 for all unnecessary expenses anyways, so it would take me years to save up for one of those pieces of junk.
You take for granted that you have the confidence and motivation to do things like, say, even apply to one of these homebuyers programs - but other people have to put in more effort just to get out of bed in the morning.
Check your goddamn privilege.
If you checked my other replies, you'd know I had cancer at 26, and that I'm living with disabilities too. But hey, anything to shirk responsibility for yourself. And no, auction cars aren't "barely functional" either. Most of them last me 100k+ miles. Usually they're at auction because they were a drug dealers car, and police ripped out the interior, but otherwise run fine.
It's fairly clear that not only are you inexperienced with the world, but you also don't CARE to gain the experience by applying yourself. Even when people give you solutions, you reply with excuses.
I understand. It took me getting literal CANCER to get me off my ass and applying myself. It wasn't until I understood my own mortality that I was scared into action.
I don't live in the city. I have friends and a job here. It doesn't seem like a solution to the problem to tell everyone to move to Ohio or something. And I know what it is to renovate a house. If it is a big enough job, you have to live (pay rent) elsewhere while you do the work. Otherwise, you still have huge material costs on top of your mortgage.
I didn't live elsewhere while I did the work. You don't have to, you just have to slum it for a while.
Sometimes you do have to, sometimes you don't. If it's a major enough renovation, it may actually be illegal to inhabit. I have lived in houses with no plumbing before. My wife and I are in our 40's and that just isn't going to work.
It sounds like you might know more than me, so def educate me if you think I'm wrong.
However I don't think point D was addressed at all. First time homebuyers might cover closing costs when purchasing the home, but what about selling it? Afaik closing costs as a seller can be expected to be between 6 and 10%.
Also, when paying a 2k mortgage, you're not paying yourself 2k depending on interest rate. These days you're realistically paying yourself 400 while paying the bank 1.6k. Nothing to sneeze at, but just a more accurate portrayal.
Yep, closing costs are accurate.
Honestly, I've not seen housing dip except for in 2008 - and I've felt like it should have crashed long ago, but with the AirBnB market and all these investors now using housing to rake in massive amounts of cash, people just keep buying and buying. Honestly, I probably wouldn't buy myself at this point - even just 5 years ago it was a much more tenable situation than it is now.
You're right for calling me out on D; In this market you'd have to live in a house for 5+ years easy before you could get out of it. But you'd be getting a LOT out of it unless they regulate AirBnB (and that ain't happening).
Additionally, yes - again, very right on the interest rate. I had a by-owner situation, where I proposed a balloon after, 6 years. Then I pumped literally every dime I owned into my payments. By the time the balloon was due, the house was paid. The owner said they'd never seen someone pull it off, and they hadn't intended to really sell the property but rather assumed I would get 1/2 way through the payments and not be able to pay the balloon. They've done this with the property a couple times where they allowed people to do a rent-to-own type situation, and in the end nobody paid it off, so they got to keep the money and the house.
Haven't heard of balloon mortgages before .... that's wild....