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I'm going to buy a House!
(file.coffee)
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The point isn't that it's impossible.
The point is they act like it's just as easy as it was when they were in their twenties.
Back when you could comfortably support a family with one job working 40hrs/week. Any job.
I didn't have issues. Saved for about a year, nothing crazy, and asked for a loan. Now I own a nice two-story house about a 15 minute walk from the city center. I don't really get this "buying a home is impossible" -meme, I believed that too before I actually tried and was surprised how easy it was.
When was that? Where?
The house I bought in my 20s (for $275k, inflation adjusted) is now worth $475k.
The house I bought in my 30s ($480k, inflation adjusted) is now worth $800k
In my area at least, home prices are far outpacing inflation. I literally couldn't afford to buy the house I'm in today at its current value.
Don’t forget, mortgage rates (at least in the US) are still the highest they’ve been since 9/11/2001.
That makes it even harder to buy the now more expensive house.
A couple years back during covid, in Finland. House prices here have been creeping up as well but not as aggressively as where you have lived. I doubt that's the case in all of the US, there must be places with more modest prices. I "downgraded" to a smaller city when I went from renter to owner, couldn't have bought a home to my liking in Helsinki due to the prices.
Well there's the issue. Finland isn't experiencing anywhere near the level of housing cost inflation of the US, Canada, and Australia.
And cheaper areas in these countries are cheaper for very good reasons (they suck to live in/have no jobs available).
They have Social Services too if I'm not mistaken.
Sure. If you live in Cuntass, next to a half dead tree and 500 million mosquitoes
To change the subject completely. I hope my country embraces the work from home option. Especially the public sector should experiment with this form of hiring. People living in all parts of our country is a political goal.
I don't know why southern or "cheaper" states haven't embraced legislation guaranteeing a right to work from home when available. It seems like it would only be a boon to low-COL states to have a larger number of well-paying professionals in the state.
So when you said it's possible to buy a house in your 20s you meant in Finland. Then you make a wild assumption about the US to try to justify what you said? Wut? Dude you are misrepresenting the situation left and right.
Sure there are places houses aren't insanely expensive, but they are generally many hundreds of miles away from where there are jobs available that may pay enough to purchase said house.
Having lived in Europe it amazes me how many Europeans believe that because it's still in the country, it's not all that far. But if you compare directly a few hundred miles is usually in another country in Europe, where in the USA it's more often still in the same state.
I bought my first house back in 2009.
My monthly mortgage payments have been flat for 15 years now. I pay less than 1/4 per month that someone buying my house today would.
Even though we make 2X what we did back when we purchased the first house (graduate degrees), we would still struggle to make the payments on our current place if I had to pay the market price today.
The small city I work for in Texas has a median home price of nearly $3,000,000. The cheapest home currently available in the city is 1.8 million.
The median income doesn't support those numbers. How does that work? Those same houses were 1/5 the price 10 years ago, and 1/3td the price in early 2021.
Areas with historically cheap housing are seeing house prices double annually, but wages aren't keeping up because people who already opened a house 3-4 years ago still have a cheap house with 2-3% interest.
A 400ft 1br studio apartment in the town I work costs $2,300/month. That would have gotten you a hell of a house 5 years ago.
That's insane. Not even 20 years ago, you could throw a stone and find an apartment for like $500-$800 in that general part of the country (TX/OK). Not a slum or a hovel, and not in the sticks. Just a normal apartment.
Not calling you a liar, but my parents' house is half that size, pretty far from the nearest small city, also in the Midwest, and is worth almost 600k.
Also, just saying people can just move if they want to own a home is pretty stupid.
It's not a meme, it's the harsh reality for many in the West. Not just the US.
And you're what's called an outlier.
I applied for a loan. I was told I don't have a high enough credit score by the bank. So now I'm paying rent instead of a mortgage.
Imma be honest, I'm not from the US so I have only a superficial knowledge of what a credit score is, but I'd reckon that's something you can affect, no?
Then why tf are you commenting at all???
That's like jumping into a support group and being like "damn that sucks have you tried not having that happen to you?"
If it doesn't apply to you why tf are you even here?
Affect, sure. In the same way that one can affect having rich parents who support you, thus making it easy to be rich yourself.
Being poor is fucking expensive, and the credit score system is a big part of that.
The credit score system is the yoke upon which the millennial/zennial generation has been shackled while Gen X and Boomers ride the wagon of home ownership and comfortable living due to not having to deal with that bullshit in the 70's, 80's, and 90's.
I was born in 1971. I can't speak for all of Gen X, but my experience growing up in the 80s is that I was presented with "everything's fine, you just need to get a job and it'll all work out." So that's what I did, and got nowhere fast. Married too early to the wrong person because pooling our resources seemed to be the only way out, then still struggled to get anywhere. Everything pointed to "I guess we're just not trying hard enough." Follow this with depression, divorce, working multiple jobs at a time to keep a roof over my head...
I think plenty of Gen X were just on the the earlier edge of the wave that became what it is today.
Idk if that's a passive or active you, but anyway that level of effect sounds quite large, maybe folk should find ways to make their credit rating better.
But I restate I have no clues as to the inner workings of this "credit rate" and if it's indeed impossible or otherwise unrealistic to effect, I'm willing to grab an implied L on that one.
You positively affect your credit rating over long periods of time by taking out loans and paying them back. If no one will loan you anything, you can't affect your score. If you can't pay the loans back, it damages your score.
I didn't have issues so why would anyone have issues? Isn't everyone's life, opportunities, and circumstances just like mine? Jesus dude, really?
How much did you save in that year and what are your monthly costs?
I plugged my numbers into a mortgage calculator while back and I'd have to save like 20% of the total cost to get the monthly payments low enough. I have an okay salary and I'm still not making enough to do that in a year.
I can't remember the exact figure, it was around 10k I had saved up, so roughly a third of what I had made that year. This was during covids lockdown phase, so I didn't really have anything to spend my money on other than a savings account. My monthly loan payment is between 700-800€, I was smart enough to get a fixed interest rate which was ridiculous at the time but a literal moneyprinter now.
You might be interested to know that in the European country where I live this is completely impossible. No bank here will give a loan to a single person with that income and only 10k euro saved.
Yeah reading all the comments by this user a lot of things sound a bit sus.
I know this may be difficult for you to understand, but a whole lot of people lost their jobs during Covid, and had even less to spend. That is why it was relatively easy for those with money to buy housing.
Saving isn't an option when your entire wage is spent before you make it, just to exist. Or when you aren't allowed to work because of external circumstances.
So you boght during a housing crisis where people were losing their jobs and the economy was in shambles.
Yeah, that's about what the figure I came up with was. Oh well I'll keep throwing money away on rent I guess.
Alright mate, I hope for you to someday pass the obstacles in your way. Wishing all the best to you!
Congrats on your success though. Didn't mean to sound bitter towards you if it came off that way.
You didn't mate, it's all good, and I don't consider myself successful for saving money for a year. It appears to have been on a bit of an easy-mode.
Feel like emotions are high here, and I've been looking into this credit rating system during this convo and I kinda start to understand the emotions coming off.
....
I grew up in a bad neighborhood. My parents house cost them 20k in 1980.
It sold for 450k in 2001. The original house is still there, a postwar concrete prefab with zero wall insulation capacity that freezes and weeps in winter and broils in summer, but the yard is looong gone with a subdivision.
The RENT on that fucking house is now more per year than my parents paid to own it. Without the yard.
Shit is broken
Because there aren’t good jobs in those places anymore. So entitled wanting access to jobs…
And acting like NY, SF etc are the only places with a housing crisis. And the only places people want to live. It’s pretty much a housing crisis in any town with jobs.
Lmfaoooo
I live in Ohio bud. It's not entitlement.
The entitlement of... Not wanting to live in the middle of nowhere??