SERIOUSLY - how are people affording these $1Mil+ homes with $8,000+ monthly mortgages!?

[Anonymous]

Anonymous wrote:

Anonymous wrote:Bunch of millenials moaning they can't suddenly afford luxe housing the second they want one after 15 years of renting in trendy areas. There's plenty of affordable starter places on the market. Sorry you think life owes you a mansion.

Nobody thinks they're owed a mansion, we literally just want an affordable starter home.

The problem is the boomers moaning about millennials still think a "starter home" mean a small, outdated house in a decent, close-in neighborhood like it did in their day, when nowadays the first rung on the property ladder for people without exception-to-the-rule careers (biglaw and tech) actually means either a 1br condo that may never appreciate enough to reach that second rung, or a rowhouse in a neighborhood that boomers decrying them for not buying there would never even set foot in.

Buddy, if we could buy a 1,000sf SFH in Bethesda and Arlington on a GS-9 salary like you all did, you'd never hear us complain again. We don't want luxury, we just want what you had.

NP here. This hasn't been true for many years. We are squarely Gen-X, and that wasn't an option for us. Our first place was a condo in Columbia Heights (in 2004, the bad old days), that we finally got after being outbid on 3 other properties. This was at a time of rapidly increasing prices, where the previous owners lived there for 13 months and the house value rose by more than 50% (that we paid). We stayed there for 11 years, and had very modest appreciation (20% over 11 years, due to the crash of 2008). We used that appreciation and diligent savings were able to purchase a place in Bethesda, in our early 40s. No inheritances, no family help.

This isn't to minimize the difficulties facing young prospective buyers these days. But "we want what you had" isn't realistic. Real estate dynamics and economic circumstances change every couple of years; over 50 years, the changes are pronounced. These days, the first step isn't a small, run-down house in one of the close-in suburbs, because in 50 years, those suburbs have gotten dramatically more desirable, and expensive. Maybe it's an older condo in DC, perhaps in an area without great schools. Maybe it's a smaller house in a farther-out suburb. I don't know what's right for you. But I do know that complaining that you can't afford a place in one of the most desirable and expensive suburbs as a first home is unrealistic, bordering on absurd.

[Anonymous]

Anonymous wrote:

Anonymous wrote:The market sets the prices. If you don't prepare to meet the market where it is, you can reasonably expect to be disappointed. Many people in this generation live a life of luxury, free spending, and expect to have it all. That is not a reasonable expectation. I can tell you are upset by the increasing insults you are hurling. No one owes anyone else a house.

I’m upset that you and your entire generation have royally f$&ked up our entire country due to your stupidity and short-sightedness, and you don’t even have the good grace to STFU and stop telling the youngsters that it’s the avocado toast and not the mouth breathing Fox News cult members and the blue blood union busting union beneficiaries (ahem, you) who are ruining their futures.

No one owes you respect. And you clearly aren’t worthy of any.

Grow up. My generation wasn't the cause of all the problems and didn't get around solving them either. Things millennials didn't have to worry about: getting drafted into an absolute meat grinder overseas, humongous interest rates, gas shortages, etc.

[Anonymous]

Boomer here. Our first place was an old two bedroom condo with yellow walls from the smoking pilot who used it as a work pad. Brown shag carpet had never been cleaned and the whole place had to have the wallpaper steamed off and fresh paint. When it rained heavily, our patio flooded into the living room and bedroom. We unknowingly bought at the peak of the market and ended up having to do a short sale to get out when our kids developed asthma. We lost our downpayment and had to take out a five year loan from our bank for the difference in the short sale price and our mortgage. It set us back for years and we had to rent again. No family help at all and it took us years to get back on the real estate ladder but we did it by taking another fixer upper.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:The market sets the prices. If you don't prepare to meet the market where it is, you can reasonably expect to be disappointed. Many people in this generation live a life of luxury, free spending, and expect to have it all. That is not a reasonable expectation. I can tell you are upset by the increasing insults you are hurling. No one owes anyone else a house.

I’m upset that you and your entire generation have royally f$&ked up our entire country due to your stupidity and short-sightedness, and you don’t even have the good grace to STFU and stop telling the youngsters that it’s the avocado toast and not the mouth breathing Fox News cult members and the blue blood union busting union beneficiaries (ahem, you) who are ruining their futures.

No one owes you respect. And you clearly aren’t worthy of any.

Grow up. My generation wasn't the cause of all the problems and didn't get around solving them either. Things millennials didn't have to worry about: getting drafted into an absolute meat grinder overseas, humongous interest rates, gas shortages, etc.

Go back to watching your propaganda and waiting for death, grandma. Nobody cares about your inane take on the challenges the generations coming behind you are facing due to your generation’s selfishness and ineptitude.

Please, do try whining to your grandchildren about the interest rates you paid on your debt fueled lifestyles while they’re literally fighting wars over access to fresh water. Dingbat.

[Anonymous]

Anonymous wrote:Boomer here. Our first place was an old two bedroom condo with yellow walls from the smoking pilot who used it as a work pad. Brown shag carpet had never been cleaned and the whole place had to have the wallpaper steamed off and fresh paint. When it rained heavily, our patio flooded into the living room and bedroom. We unknowingly bought at the peak of the market and ended up having to do a short sale to get out when our kids developed asthma. We lost our downpayment and had to take out a five year loan from our bank for the difference in the short sale price and our mortgage. It set us back for years and we had to rent again. No family help at all and it took us years to get back on the real estate ladder but we did it by taking another fixer upper.

And how long was the commute to your job?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:The market sets the prices. If you don't prepare to meet the market where it is, you can reasonably expect to be disappointed. Many people in this generation live a life of luxury, free spending, and expect to have it all. That is not a reasonable expectation. I can tell you are upset by the increasing insults you are hurling. No one owes anyone else a house.

I’m upset that you and your entire generation have royally f$&ked up our entire country due to your stupidity and short-sightedness, and you don’t even have the good grace to STFU and stop telling the youngsters that it’s the avocado toast and not the mouth breathing Fox News cult members and the blue blood union busting union beneficiaries (ahem, you) who are ruining their futures.

No one owes you respect. And you clearly aren’t worthy of any.

Look, I am 40, I have 3 kids and have a HHI of 400-450k. We own 3 houses in NW DC all over 1 mil in value. We also send kids to private school (about 80-90k/year).

We also never eat out, and watch what we spend. Our only car is very old, all the properties we bought were fixer uppers, etc. we rent two out of 3 and the rent pays for the mortgage and any repairs needed.

We had about 300k from my others to buy the first house, but we bought the second and third on our own by saving (living below our means).

We are not boomers (also not born in the US), but I see how much families with lower HhI than ours spend… that is why they can’t afford to buy a house. Stop shopping at While Foods, getting Ubers, eating out multiple times a week, getting nails done, etc. and you will see how much you will save.

Literally nothing else in your post counts when the bolded is true, princess. Stop pretending your generational wealth that allowed you to *vault* over your peers is NOTHING and you did it all by yourself because you’re just so wonderful and smart and frugal. Do some calculations using the median income (not your top 1% salary) in the DMV, add in reasonable expenses and retirement savings, and tell me how long it will take you to SAVE an extra 300K.

You’re nothing more than a spoiled rich @$$hole. Seriously, STFU.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Want what I had...Hmm. Bought a house in a NJ town that was the butt of mainstream music (Bruce Springsteen wrote an entire album dedicated to escaping places like this) when I was 24. It was so small the developer had to build it up sideways so the front door opened up directly to the back of someone else's house. Continued to upgrade as my job allowed. Economic activity in NYC fueled a bit of property value/economic boom to the entire area, to the point most people couldn't afford it any longer. Exactly the same thing happened to this area. Would I, starting at 24 over again, be able to afford a 'nice' starter home in a desirable area? No. But I didn't live in a great area back then either. I just had a decade or two of forced savings on top of the typical millenial first time buyer.

This is exactly what I was talking about. You played on easy mode and you think everyone else is doing the same 40+ years later.

Let's play a game. Tell me your job title and employer when you bought that house. Let's see what that salary is today and what you could afford.

I have no idea what point you are trying to make here. I lived in shitholes and built equity instead of living in luxury and a fun lifestyle. I didn't move to a desirable, high priced area and expect too end housing which many people here want it all immediately. There was nothing easy about it

You have no idea what point PP was making because you’re painfully stupid. A 30-something couple wanting a modest 3 bedroom house within an hour of their jobs and in an adequate school district =/= living a luxurious, fun lifestyle. There are significantly more people competing for the exact same resources than when you were young.

Here is a simple point: you built equity in houses you considered shitholes back in the day. Those same houses are what the youngins CANNOT AFFORD today, and guess what? They’re even SHITTIER than when you lived there.

This is a great location in a really fun, family friendly neighborhood where a bunch of my son's friends live. There are literally two busses that pick up for the local elementary school from this neighborhood. I know it's under contract, but OP could easily afford this and if she's not to much of a snob, probably make some great friends: https://www.redfin.com/VA/Falls-Church/7848-Snead-Ln-22043/home/9543478

How dumb are you?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:$4000 budget is too small for $300k hi. It's not that you can't afford it. You just don't want to pay for it.

OP mentioned having 2 small kids. Assuming that $300k income
Comes from two salaries (no stay at home parent), then they also need to pay for two kids daycare in addition to two kids college savings. Plus it’s always possible that one of them could lose their job for awhile. If those assumptions are true, $4k PITI seems prudent.

I will note that we have a higher income than OP but a $4 PITI because we bought less than what we could afford (though still very nice) with the benefit of low interest rates, 5 years ago. I’m a fed, and very likely to lose my job, and I can still sleep at night - very, very glad that we didn’t stretch.

OP can buy a nice townhouse with her $4000 PITI. She can probably even buy a small decent SFH in a decent area with that. It won't be a million dollar 5000sq ft home, but my first home was 1500 sq ft and DH and I managed just fine with two elementary-aged children there. Our mortgage 10 years ago was $2600 and the house cost $550K. The same house is worth about $700K right now and even with current interest rates, OP could probably afford it. It was in a decent part of Fairfax County with good but not great schools (but zoned to a good high school). We only moved because we wanted a bigger yard and that particular area was too dense to have any large lots in our price range.

I want to add that we made a total of $165K with 2 kids in daycare and a $400/month student loan payment with that $2500 mortgage so I definitely think OP is wise wanting to do $4K payment but she can easily find a decent house for that much. It won't be the McMansion that she wants, but she doesn't need a McMansion. She'll be just fine in a 2000 sq ft 3BR/2BA outdated home that she can fix up over time.

You realize that you are arguing that OP should pay 150K more for your former 1500 sqft house PLUS a higher interest rate even though the yard and schools weren’t good enough for you, and if she has even the slightest hesitation that means she is a whiny princess who wants a 5000 square foot mcmansion?

I can’t with you people. Seriously, do you even hear yourself? You’re ridiculous.

Nope, sorry, I think the ones who are unwilling to compromise and want the biggest and best RIGHT NOW are the ridiculous ones. Prices go up, salaries increase, people still compromise. We bought the big house with the big yard when our kids were a lot older than OP's kids. We bought that house when we're in a similar stage in life to OP. We couldn't afford the million dollar home in our 30s either. It's not like ANYONE I know bought a million dollar home 10-15 years ago. I'll break it down for you since you don't get it.

DH and I were in our mid-30s when we bought that house, with a one year old. We bought a more expensive house when our kids were 9 and 11 at a 6.5% interest rate by the way. OP said she is in her mid-30s with young children, so a similar life stage to where DH and I were when we bought that house. Are you tracking this? The same life stage. Ok, let's move on.

DH and I had an HHI of $165 and an interest rate of 4.5%, our mortgage was $2500/month. OP said her HHI is $300K and current interest rates around 7% - she could buy this house with a $4200ish PITI. Both of those are just above double what DH and I earned and spent on housing, so fairly equivalent to where we were at that point in our lives. Are you tracking this? Fairly equivalent housing expenses. OK, let's move on.

We had two kids in daycare while we were living there (total was around $2500). Assuming daycare rates have gone up, OP is probably paying $3000 for 2 kids. Still pretty reasonable given her income that is double what ours were at that time and that everyone's expenses have gone up, not just one generation's. I probably pay more for aftercare than people did for elementary-aged kids 10 years ago, too.

Our current home - the one we bought after saving for an additional 10 years and building some equity in our small house was in fact a million dollars, and our mortgage is $4800K (our HHI is STILL less than OP's, by the way, we make $265K in our mid to late 40s. We bought at a 6.5% interest rate, so please don't complain about how you're the only people in the whole world facing high interest rates.

I just can't with you people thinking you're the only ones who have ever faced challenges. You're not. We've all been there. We all had to make hard choices and compromise on things.

The bolded is where you’re being ridiculous. Strawmen and gaslighting, that’s what I’m “tracking” in your post. No one cares about your life story, BTW.

But, just so you know, you and your spouse sound like financial morons.

[Anonymous]

I can't afford my house now and I make nearly double what I made when we bought it. Currently at $3k PITI. No equity, no parents help to buy it. DH and I saved (but not like we scrimped a ton while living in a rental condo) and put down 20% on a $750k house. But rates were sub 3%. Our house is probably about $900k now and interest is more than double. So much of it is luck of timing. And not having student loans which was due to our parents paying for college for both of us and me not going to grad school (engineer career).

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Want what I had...Hmm. Bought a house in a NJ town that was the butt of mainstream music (Bruce Springsteen wrote an entire album dedicated to escaping places like this) when I was 24. It was so small the developer had to build it up sideways so the front door opened up directly to the back of someone else's house. Continued to upgrade as my job allowed. Economic activity in NYC fueled a bit of property value/economic boom to the entire area, to the point most people couldn't afford it any longer. Exactly the same thing happened to this area. Would I, starting at 24 over again, be able to afford a 'nice' starter home in a desirable area? No. But I didn't live in a great area back then either. I just had a decade or two of forced savings on top of the typical millenial first time buyer.

This is exactly what I was talking about. You played on easy mode and you think everyone else is doing the same 40+ years later.

Let's play a game. Tell me your job title and employer when you bought that house. Let's see what that salary is today and what you could afford.

I have no idea what point you are trying to make here. I lived in shitholes and built equity instead of living in luxury and a fun lifestyle. I didn't move to a desirable, high priced area and expect too end housing which many people here want it all immediately. There was nothing easy about it

You have no idea what point PP was making because you’re painfully stupid. A 30-something couple wanting a modest 3 bedroom house within an hour of their jobs and in an adequate school district =/= living a luxurious, fun lifestyle. There are significantly more people competing for the exact same resources than when you were young.

Here is a simple point: you built equity in houses you considered shitholes back in the day. Those same houses are what the youngins CANNOT AFFORD today, and guess what? They’re even SHITTIER than when you lived there.

It's certainly affordable to live in a shit hole. People don't want to live in them. They expect to rent in nice areas and do trendy things during their 20s and early 30s, only to find they can't afford housing at a similar standard. I was eating hamburger helper and freezer beef while this generation has been brunching and eating at foodie restaurants. I'm not the one who is stupid by far.

Dummy, anyone paying $4000 per month should reasonably expect that they won’t be forced eat hamburger helper while sharing their one room with the cockroaches. “Not eating cat food is putting on airs to you?”

You’ll do well in the new US of Russia with your natural born serf attitude, though. You’re truly pathetic (and I repeat, very stupid).

If you can't afford a house maybe you shouldn't go around calling people 'dummy'.

[Anonymous]

Did boomers help create the current housing situation? Undoubtedly. Would I have done anything different in their shoes? Probably not. Do some Millennials spend too ok frivolous crap? For sure. Are homes significantly more challenging to purchase today than they were in say 1990? Absolutely. I don’t blame boomers for the situation but it is pretty frustrating sometimes how strong their conviction is to deny the reality that things are more difficult now. Relative to what people make, homes cost significantly more. It’s just that simple.

[Anonymous]

I can't afford my house now and I make nearly double what I made when we bought it. Currently at $3k PITI. No equity, no parents help to buy it. DH and I saved (but not like we scrimped a ton while living in a rental condo) and put down 20% on a $750k house. But rates were sub 3%. Our house is probably about $900k now and interest is more than double. So much of it is luck of timing. And not having student loans which was due to our parents paying for college for both of us and me not going to grad school (engineer career).

This post is why I think housing prices will come down. Wait a bit OP. These prices are not sustainable. And sooner or later people need to sell.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:The market sets the prices. If you don't prepare to meet the market where it is, you can reasonably expect to be disappointed. Many people in this generation live a life of luxury, free spending, and expect to have it all. That is not a reasonable expectation. I can tell you are upset by the increasing insults you are hurling. No one owes anyone else a house.

I’m upset that you and your entire generation have royally f$&ked up our entire country due to your stupidity and short-sightedness, and you don’t even have the good grace to STFU and stop telling the youngsters that it’s the avocado toast and not the mouth breathing Fox News cult members and the blue blood union busting union beneficiaries (ahem, you) who are ruining their futures.

No one owes you respect. And you clearly aren’t worthy of any.

Grow up. My generation wasn't the cause of all the problems and didn't get around solving them either. Things millennials didn't have to worry about: getting drafted into an absolute meat grinder overseas, humongous interest rates, gas shortages, etc.

Go back to watching your propaganda and waiting for death, grandma. Nobody cares about your inane take on the challenges the generations coming behind you are facing due to your generation’s selfishness and ineptitude.

Please, do try whining to your grandchildren about the interest rates you paid on your debt fueled lifestyles while they’re literally fighting wars over access to fresh water. Dingbat.

Wow, I hope you see that you need to get help for your mental health issues. Please do something before you ruin your or someone else's life.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:$4000 budget is too small for $300k hi. It's not that you can't afford it. You just don't want to pay for it.

OP mentioned having 2 small kids. Assuming that $300k income
Comes from two salaries (no stay at home parent), then they also need to pay for two kids daycare in addition to two kids college savings. Plus it’s always possible that one of them could lose their job for awhile. If those assumptions are true, $4k PITI seems prudent.

I will note that we have a higher income than OP but a $4 PITI because we bought less than what we could afford (though still very nice) with the benefit of low interest rates, 5 years ago. I’m a fed, and very likely to lose my job, and I can still sleep at night - very, very glad that we didn’t stretch.

OP can buy a nice townhouse with her $4000 PITI. She can probably even buy a small decent SFH in a decent area with that. It won't be a million dollar 5000sq ft home, but my first home was 1500 sq ft and DH and I managed just fine with two elementary-aged children there. Our mortgage 10 years ago was $2600 and the house cost $550K. The same house is worth about $700K right now and even with current interest rates, OP could probably afford it. It was in a decent part of Fairfax County with good but not great schools (but zoned to a good high school). We only moved because we wanted a bigger yard and that particular area was too dense to have any large lots in our price range.

I want to add that we made a total of $165K with 2 kids in daycare and a $400/month student loan payment with that $2500 mortgage so I definitely think OP is wise wanting to do $4K payment but she can easily find a decent house for that much. It won't be the McMansion that she wants, but she doesn't need a McMansion. She'll be just fine in a 2000 sq ft 3BR/2BA outdated home that she can fix up over time.

You realize that you are arguing that OP should pay 150K more for your former 1500 sqft house PLUS a higher interest rate even though the yard and schools weren’t good enough for you, and if she has even the slightest hesitation that means she is a whiny princess who wants a 5000 square foot mcmansion?

I can’t with you people. Seriously, do you even hear yourself? You’re ridiculous.

Nope, sorry, I think the ones who are unwilling to compromise and want the biggest and best RIGHT NOW are the ridiculous ones. Prices go up, salaries increase, people still compromise. We bought the big house with the big yard when our kids were a lot older than OP's kids. We bought that house when we're in a similar stage in life to OP. We couldn't afford the million dollar home in our 30s either. It's not like ANYONE I know bought a million dollar home 10-15 years ago. I'll break it down for you since you don't get it.

DH and I were in our mid-30s when we bought that house, with a one year old. We bought a more expensive house when our kids were 9 and 11 at a 6.5% interest rate by the way. OP said she is in her mid-30s with young children, so a similar life stage to where DH and I were when we bought that house. Are you tracking this? The same life stage. Ok, let's move on.

DH and I had an HHI of $165 and an interest rate of 4.5%, our mortgage was $2500/month. OP said her HHI is $300K and current interest rates around 7% - she could buy this house with a $4200ish PITI. Both of those are just above double what DH and I earned and spent on housing, so fairly equivalent to where we were at that point in our lives. Are you tracking this? Fairly equivalent housing expenses. OK, let's move on.

We had two kids in daycare while we were living there (total was around $2500). Assuming daycare rates have gone up, OP is probably paying $3000 for 2 kids. Still pretty reasonable given her income that is double what ours were at that time and that everyone's expenses have gone up, not just one generation's. I probably pay more for aftercare than people did for elementary-aged kids 10 years ago, too.

Our current home - the one we bought after saving for an additional 10 years and building some equity in our small house was in fact a million dollars, and our mortgage is $4800K (our HHI is STILL less than OP's, by the way, we make $265K in our mid to late 40s. We bought at a 6.5% interest rate, so please don't complain about how you're the only people in the whole world facing high interest rates.

I just can't with you people thinking you're the only ones who have ever faced challenges. You're not. We've all been there. We all had to make hard choices and compromise on things.

The bolded is where you’re being ridiculous. Strawmen and gaslighting, that’s what I’m “tracking” in your post. No one cares about your life story, BTW.

But, just so you know, you and your spouse sound like financial morons.

OK, baby.

[Anonymous]

What an unpleasant group of posters.