Reply to how on earth can we save a down payment?

Forum Index » Money and Finances

Reply to "how on earth can we save a down payment?"

Subject:

Emoticons





More smilies

Text Color: Font: Close Marks

[quote=Anonymous][quote]Making drastic changes in lifestyle to buy a home is a difficult adjustment to make. But it can be done. My next door neighbors were "boat people" who all pooled their resources, lived with relatives, worked 80+ hours a week and in a year paid cash for their first home in Annandale. Now they all have their own homes (never borrowed for any of them). Part of the problem in American culture is the shaming that goes on when someone lives in a group home, or in their parent's basement, driving a crappy car, etc. [/quote]
I get what you're saying, but there are two things I'd like to point out. First, it seems you assume that those who can't afford to save for down payments all presently enjoy numerous expensive luxuries like meals out, smartphones, cable, cars, food, etc. and [i]that's[/i] the impediment to saving. The fact is that many folks do not indulge in these expenses and still cannot afford to save for a house in this area. Not. Even. Close.

Second, think through the consequences if everybody who wanted a home took your advice and cut way back on everything merely to afford a halfway decent place to live. It's an escalating, universally-destructive path:
Person A: "I will cut my cell phone plan (in order to afford a down payment)." 
Person B: "Oh yeah? I will cut my cell phone plan [i]and[/i] cut my cable (in order to afford a down payment)."
Person A: "Don't even bother. I am cutting everything and eating store brand catfood for several years (in order to afford a down payment) and outbid you on that run down shack."

And in an area as packed with competitive people as this is, you can see why prices are getting bid up so high. Not to mention the soul-crushing experience of saving for 10 years on rice and beans for a down payment to be outbid by hedge/trust fund money that walked in yesterday with an all cash offer because they heard some chatter about an up and coming neighborhood and decided it would make for a nice investment. How are middle class folks supposed to compete with that around here?[/quote]

Options

	Disable HTML in this message
	Disable BB Code in this message
	Disable smilies in this message

Review message

Search Recent Topics Hottest Topics