DCUM Forum

Anonymous

11/07/2011 12:33 Subject: To those who can't make ends meet on $250K, take note:

Anonymous wrote:

Anonymous wrote:
In my age bracket 30-35, I know 4-5 other people in the same position each owning 4 houses or condos. I even know someone who has 6. We are getting by because the DC economy is pretty good but think about it, what would happen if we all went bankrupt?

This was common in 2005 because there was no way any of us could get to where the older generation's equity position was without taking on more homes. This isn't a pitty call or a bitching it's a truth of the situation a lot of us are in. We make good incomes and would like to start a family in a decent size home and saw the only way towards this goal was to buy multiple properties or to hold on to a previous one while we moved to a larger one. This isn't greed this is the reality of the situation. Back before the bubble you could save up for 20% down on a decent sized (2500 SQRFT+) newer home on the average salary without any issues, now a days it is very difficult if not impossible.

So, wait, I am supposed to feel bad because you made bad financial decisions? Your friends were all greedy. And you are making excuses.

You would be suprised of how many people around here do own multiple places and are underwater. If they all decided to stop paying or another housing collapse happened it would be a nightmare.

I am not disagreeing that it would be a nightmare. But that being said, I don't think I need to sit here patting the hands of people who were willing participants in creating the nightmare.

We aren't talking about people who bought what they could afford, and then had a catastrophic illness or injury destroy their finances. We are talking about people who wanted to leverage properties on which they had very little equity to be able to buy more, so they could have a nicer home.

And for the people saying that it's unfair that they work so hard but live like they are in a third world country -have you ever actually traveled to a third world country (or if you have, have you actually ever left the resort) to see how people really live in those places?

Property in urban areas is almost always more expensive. So, you will get less with more. It sucks. But that's life. Get over it. Or move to another part of the country. And if you are now going to whine about the job markets not being good elsewhere, well, that's more costly real estate is part of living somewhere that does have jobs.

Anonymous

11/07/2011 12:24 Subject: To those who can't make ends meet on $250K, take note:

Anonymous wrote:
In my age bracket 30-35, I know 4-5 other people in the same position each owning 4 houses or condos. I even know someone who has 6. We are getting by because the DC economy is pretty good but think about it, what would happen if we all went bankrupt?

This was common in 2005 because there was no way any of us could get to where the older generation's equity position was without taking on more homes. This isn't a pitty call or a bitching it's a truth of the situation a lot of us are in. We make good incomes and would like to start a family in a decent size home and saw the only way towards this goal was to buy multiple properties or to hold on to a previous one while we moved to a larger one. This isn't greed this is the reality of the situation. Back before the bubble you could save up for 20% down on a decent sized (2500 SQRFT+) newer home on the average salary without any issues, now a days it is very difficult if not impossible.

So, wait, I am supposed to feel bad because you made bad financial decisions? Your friends were all greedy. And you are making excuses.

You would be suprised of how many people around here do own multiple places and are underwater. If they all decided to stop paying or another housing collapse happened it would be a nightmare.

Anonymous

11/07/2011 12:22 Subject: To those who can't make ends meet on $250K, take note:

Anonymous wrote:
In my age bracket 30-35, I know 4-5 other people in the same position each owning 4 houses or condos. I even know someone who has 6. We are getting by because the DC economy is pretty good but think about it, what would happen if we all went bankrupt?

This was common in 2005 because there was no way any of us could get to where the older generation's equity position was without taking on more homes. This isn't a pitty call or a bitching it's a truth of the situation a lot of us are in. We make good incomes and would like to start a family in a decent size home and saw the only way towards this goal was to buy multiple properties or to hold on to a previous one while we moved to a larger one. This isn't greed this is the reality of the situation. Back before the bubble you could save up for 20% down on a decent sized (2500 SQRFT+) newer home on the average salary without any issues, now a days it is very difficult if not impossible.

So, wait, I am supposed to feel bad because you made bad financial decisions? Your friends were all greedy. And you are making excuses.

NO, but be a little more gracious to your peers that own the world around you.

Anonymous

11/07/2011 12:00 Subject: To those who can't make ends meet on $250K, take note:

In my age bracket 30-35, I know 4-5 other people in the same position each owning 4 houses or condos. I even know someone who has 6. We are getting by because the DC economy is pretty good but think about it, what would happen if we all went bankrupt?

This was common in 2005 because there was no way any of us could get to where the older generation's equity position was without taking on more homes. This isn't a pitty call or a bitching it's a truth of the situation a lot of us are in. We make good incomes and would like to start a family in a decent size home and saw the only way towards this goal was to buy multiple properties or to hold on to a previous one while we moved to a larger one. This isn't greed this is the reality of the situation. Back before the bubble you could save up for 20% down on a decent sized (2500 SQRFT+) newer home on the average salary without any issues, now a days it is very difficult if not impossible.

So, wait, I am supposed to feel bad because you made bad financial decisions? Your friends were all greedy. And you are making excuses.

Anonymous

11/07/2011 11:04 Subject: To those who can't make ends meet on $250K, take note:

Anonymous wrote:I simply find it incredible that with such high incomes, we do not live a very extravagant life at all. Yes, we cover all of the basics and can afford to do the stuff you're supposed to do like put money away for retirement and college -- but should that be the standard of luxury?

+1, since when did all the above ideas consitute "luxary". Is the normal standard of life in america so bad now a days being poor as shit, driving a POS car, living in a tiny cracker box house, scraping for childcare should be the norm? I thought we were supposed to be the best country in the world with the highest living standards. If the standard for living is the same as the borderline poor of 20 years a go and people are happy with this, we are screwed.

Anonymous

11/07/2011 10:59 Subject: To those who can't make ends meet on $250K, take note:

PP, I think people are simply surprised at what life at a high income is. When I was strugging at $18K a year and a crappy car breakdown or plumbing repair would constantly keep me from getting control of my credit card bills, I didn't dream that one day when I made it big I'd be able to ... max out my 401K and save for kids' college.

Anonymous

11/07/2011 10:55 Subject: To those who can't make ends meet on $250K, take note:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:If someone can't make ends meet on 200K+ (or close to that) - they're doing something wrong.

I agree with your basic point, but in fairness, I've read those threads, and you're setting up a bit of a straw man (as is OP with the thread title), since the 250K posters don't say they can't make ends meet, just that they aren't living a "rich" lifestyle.

"We make about $290K and we have a nanny. And after 401k and such, we pretty much live paycheck to paycheck."

http://www.dcurbanmom.com/jforum/posts/list/15/6305.page#32573

That's just one example.

This poster is not saying they are poor, or that they live a horrible life. Just that they live paycheck to paycheck once they pay bills (including nanny) and save a little for retirement. And this proves what?

Anonymous

11/07/2011 10:52 Subject: Re:To those who can't make ends meet on $250K, take note:

Anonymous wrote:PP, I agree. We make $400K but you'd never know it. Nice but not extravagant house by any means, worth less than $800,000. Honda and Toyota cars. One, one week vacation a year. We choose to save 40% of our income because we know the high salaries may not last forever. DC is not really a place to show off wealth.

Not sure what you do- but you could certainly 'afford' any number of luxuries at $400k a year. I know plenty in your bracket driving BMWs, living in $1.5m Lyon Village homes, sending kids to GDS etc. That is by all accounts a luxury life, and elements of that can be had at much less than $400k a year. Of course some folks are frugal, some spendthrifts, but you can find a balance and still enjoy some number of "luxuries" at most HHIs over in the mid-100s and higher.

We are in the high 200s and don't feel pinched a bit. I grew up in a HH with a high six to seven figure HHI most years in the 80s/early 90s. As two 30-somethings in the high 200s with one child, we feel completely comfortable; I can still partake in luxuries (travel, cars, private school etc) I grew up with, just at a more measured scale and a little more bean counting. The only debt I carry is a mortgage, but even debt service on a typical student loan would not be all that disruptive. We have good savings and robust retirement planning too, and live in an 850k home w/ 25% equity.

Did most of these griping posters grow up in small towns and perceive that sub-500k or "being rich" implied yachts, private jets, and vast estates?

Anonymous

11/07/2011 10:12 Subject: Re:To those who can't make ends meet on $250K, take note:

Anonymous wrote:Wow are you serious? You want someone who is underwater on two properties and has hundreds of thousands of dollars of student loan debt at a fixed interest rate of over 8% to do what exactly? Put their kids in public school? Sell their car so they can't get to work? You're all morons. Go cry for the poor somewhere else.

OMG this made me snort out my coffee I was laughing so hard. Thanks!!

Anonymous

11/07/2011 10:11 Subject: Re:To those who can't make ends meet on $250K, take note:

PP, I agree. We make $400K but you'd never know it. Nice but not extravagant house by any means, worth less than $800,000. Honda and Toyota cars. One, one week vacation a year. We choose to save 40% of our income because we know the high salaries may not last forever. DC is not really a place to show off wealth.

Anonymous

11/07/2011 10:06 Subject: To those who can't make ends meet on $250K, take note:

Hi. I make more than $250K and I'm willing to admit that I have it a whole lot better than most of the people out there. Compared to many, I am rich, and I'm thankful for what I have, though DW and I worked hard for it -- neither of us made more than $20K in our first job after college and neither of us has been the beneficiary of significant parental assistance.

I simply find it incredible that with such high incomes, we do not live a very extravagant life at all. Yes, we cover all of the basics and can afford to do the stuff you're supposed to do like put money away for retirement and college -- but should that be the standard of luxury?

Anonymous

11/07/2011 09:47 Subject: To those who can't make ends meet on $250K, take note:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Stfu live within your means people, you probably all bought houses before 2005 , for others that dont haves fake equity down payments 250k a year ain't shit considering a decent house is 750k

There are plenty of decent houses below 750K. In fact, there are plenty of decent houses below 500K or even 300K or less.

And I don't know why someone would buy a house and incur another mortgage that they can't afford if they hadn't sold their first house yet. Downsizing and renting are not dirty words.

EXACTLY. A decent house is 750k? Since when? People are too spoiled about where they want to live. And they make risky purchases and then want to call themselves poor. Why not downsize, go down to one car, and yes consider public school - and who said to do it just for a year? It is crazy to think that people cant be happy in a smaller home with a used car and kids in a good public school - at the very least they wouldnt be swimming in debt, right? And that seems to be the complaint. Some people just arent willing to take their lumps. And sorry but they truly dont know what poor is. There should be a wake up people kind of reality show on this. Or maybe there already is? It would be very informative on the difference between living in poverty and living beyond your means.

You know why? I live in America I am not in a 3rd world country. If I wanted to live in a tiny hut, with a moped and like some poor ass fool I would move to 3rd world asia or just go on welfare and stop working.

Let me guess you lived with in your means and magically got a bunch of equity from your prior to 2005 home purchase. BE honest what is your mortgage, income, value of your house and downpayment.

Here is mine salary of 240k a year, bought 1br 1974 condo in 2005 a condo for 270k that i can't sell and rent at a loss, bought a 1500sqrft 1959 signle family house in 2007 for 560k, and its probably worth 500k. Granted I purchased in Tyson's Falls Church so I am not too bad but people like me got SCREWED. Basically all the money and appreciation older buyers experienced was due to first time home buyers bascially giving you our money. The day I can unload my condo and house I will be buying something for about 750k maybe more but right now I am stuck. So you can spare me the lecture and yes I am doing fine but the biggest issue is the cost of housing for young families in this area makes people who are 250K bleed out all their money. The whole save and scrimp bull shit usually comes from people that already made their equity by buying before 2005. Do you honestly believe that between 2000 and 2005 that the DOUBLING actually 2.5x of your home value was because you scrimped and saved? Thats bull shit and everyone knows it.

You got greedy, you bought in what many thinking people knew was a bubble, and I am supposed to feel sorry for you? Give me a break. I've paid my own way since I left home at 18. Watched prices go up at ridiculous rates in the early 2000s, listened to friends like you ridicule me for not getting into the market, and I saved, saved, while living in a crappy basement apartment. Bought my first home in 2009 with my husband, conventional mortgage, including 20% down payment. It's smaller than we would like for our family, but that's life. And we can afford it -even if prices dip 10-20%. We make less than $200K. Your claim that everyone who doesn't want to hear your whining bought pre-real estate bubble is just plain wrong. You made bad money decisions. PERIOD.

You better be nice to us bubble buyers, a lot of us own multiple underwater DC area homes and are holding on to them. If we all defaulted post buble buyers would be royally FUCKED.

Nope. I would not. You're dreaming, hoping to share your misery. I bought what we could afford, even with catastrophic market losses. If we have to live here 20 years, so be it. I am an adult, I can accept the consequences for a calculated risk that i freely chose to take. Your greed doesn't scare me, though it's clear you wish everyone could be in your pathetic position. Might I suggest anger management? This is going to be a long, crappy recovery.