To make you learn you must pay for housing, no matter where it is. I am guessing it was a condition the parents put on the adult son to move back home with Mommie and Daddy. OP does make $80k/year.
But you don't HAVE to pay for housing no matter where it is if they don't make you pay them for housing.
Good for him. I'm 30, did 4+1 program at college to get graduate degree, reached manager level in professionally licensed career, and will barely be able to afford $200k house while driving a 2009 cheap used car and keeping spending to a minimum.
I was in your same position years ago. Solution? I picked up another job working nights and saved every penny from that second job. Earned an extra 35k a year from the second job. Within 5 years I was able to pay cash for a small house. Kept working both jobs. With raises and savings I purchased a bigger home three years later. I rented out the first house and started saving again. The math is hard but not impossible. You might have to forgo some of what your generation calls "having a life" for a few years, but its worth it in the long run.
Dude, it’s only a small fraction of people who can work fully remotely. I’m not sure why people are invested in pretending otherwise, except to gloat.
Dude, I don't work remote and never have. I've commuted up to 2 hours each way for my job (train). This bitchy generation doesn't understand, they've had a new smartphone handed to them, now they want a house. A good house, understand?
If you do the math, that's bad financial advice. You marry the first person who you can tolerate and tolerates you so you can buy a home and then after paying on the home for 10-15 year, you get divorced and she gets the home and you get to pay child support for another decade and alimony for life. Then you're back in the same apartment you were in 15 years prior. Better to stay single until you're 40 when you can buy a home on a single salary and get to keep the home all for yourself.
Dude, it’s only a small fraction of people who can work fully remotely. I’m not sure why people are invested in pretending otherwise, except to gloat.
Dude, I don't work remote and never have. I've commuted up to 2 hours each way for my job (train). This bitchy generation doesn't understand, they've had a new smartphone handed to them, now they want a house. A good house, understand?
So then why would you act that just anyone can work remotely in places with no jobs? Just to dump on OP?
And if you think the problem is that people are trying to buy “good houses” you are out of touch with the market conditions.
This housing issue is a problem without a doubt. A couple takes I haven't seen mentioned here:
Supply could go up in the near future as interest rates have risen. All the people who own investment properties to get paid rents from other people may no longer find it worth it when they can now buy T-bills, CDs, and money market savings for 4-5%. Rental properties were worth it the last 15 years when rates were kept at 0 and there were no fixed income opportunities. Just a possibility here.
That being said, if you're not absolutely needing to buy, then it might not be a bad idea to wait it out to see if this comes true. That being said, I am in a similar boat and when you are ready for life reasons (significant other, moving forward in life,etc..), it's hard to delay based on a hope you have for the market.
Maybe we should be capping how many investment properties and entity can own. Housing should not become unattainable for most in the self-proclaimed greatest country in the world.
We bought our first home when I was 28 but we would have been better off if we had waited since we bought in 2006 when house prices were relatively high like they are now. Prices had been dropping for a few months when we bought, so we thought we were getting a good deal. We paid $215k but the value plummeted to almost half that in a few years. Of course, the value has since doubled from the original price. I encourage homeownership as early as possible but the current conditions suggest that saving until another dip occurs may be the best. In addition, have the hope that your financial situation will improve considerably as you gain experience in your field. It will often happen in large jumps at once when you may not expect it. But, when it happens. seize the opportunity and be grateful for it.
People want to turn every problem into a morality play, but the fact is it’s harder to buy a house now than it used to be. Prices have risen faster than wages for a long time, and that means fewer people can afford houses - that’s it. IMO the issue isn’t corporate owned housing. It’s decades of under-building while population massively increased combined with rules that make affordable housing impossible to build in desirable areas (e.g. requiring homes to have a front yard and parking for 3 cars a couple miles from Boston).
Repeal those rules, legalize multi family everywhere and let the market work.
Maybe you should look at costs you can trim instead of blaming your current income.
Internet? Cable? Streaming services? Gym? Eating out? Car payment?
The only new clothes I have bought in years are my running outfits and shoes. I buy my regular clothes at Goodwill and yard sales.
My grandfather's fav saying was "it's easier to cut costs than it is to make more money."
But if you can do both, you can live quite comfortably.
Not buying coffee and new work shirts is not a path towards home ownership. You can't cut Cable and then parlay that $600 a year for a decade into the extra "$6000" you need to buy a house. The numbers just don't add up. Most people are like $100,000 short of where they need to be, despite good choices and good jobs.
I am trying to buy a house right now (with/for one of my kids) and the supply is tiny and the bids are all tens of thousands over asking. Luckily, I don't need the house right now (since I have a primary residence), so there is no rush for me, but for a young couple in search of a place to race a family, this market sucks.
I am 28 and make 80k a year. After taxes and elective contribution, I get $1,950 a paycheck every 2 weeks. So for 10 of 12 months, that means $3,900 in take home pay. Based on boomer-era finanical advice, 28% should be spent on a mortgage. That's $1,092 MAXIMUM. Reverse-engineer that, and even with a full 20% down, that's around a $170k house.
I live in a town of 25k in the midwest. There are 67 houses for sale. 2 are technically in my budget. One is completely torn up for a full reno on the inside. The other is 800 sq ft foreclosure with no garage door.
If you are older than me, and you EVER wonder why so many people my age and younger are "antiwork", or "soy leftists", or rent their childhood bedroom from their parents (like me), or don't go to college, or whatever f***ing problem you have with them, THIS IS WHY. The math is impossible. It's not going to get better. Somehow, it's going to get mathematically more difficult to afford a house, every year, forever, and no one is ever going to step in and fix it on a state, national, political, or investment level.
The 30% advice (or 28%) is pre-tax. 30% of 80,000 works out to exactly 2,000 per month! It will depend on the interest rate and the term of the loan, but you can definitely afford a $300,000 - 400,000 house if you have 20% down.
But honestly you shouldn't use the 28% rule. You should track what you spend each year and make a detailed budget, and add some costs for emergencies.
Rent cheaply and save money for a large down payment. Or get married. Or just be like any other normal single dude
Yep. This is your answer if you really want a house. Rent and live meagerly for 5 years. Also, work 7 days a week if you can. Your student loans are forgiven right? Or have been in forbearance for 3 years? The rest of us are going to be paying for those. How about a thanks for that.
People want to turn every problem into a morality play, but the fact is it’s harder to buy a house now than it used to be. Prices have risen faster than wages for a long time, and that means fewer people can afford houses - that’s it. IMO the issue isn’t corporate owned housing. It’s decades of under-building while population massively increased combined with rules that make affordable housing impossible to build in desirable areas (e.g. requiring homes to have a front yard and parking for 3 cars a couple miles from Boston).
Repeal those rules, legalize multi family everywhere and let the market work.
Yes but since the problem exists everywhere, these factors--underbuilding, pop increase, and zoning rules--is probably only part of the problem. Corporate ownership and buying for Airbnb'ing are potentially bigger parts. So the long-term solution could be political fixes for each of the above, but that isn't going to solve the problem in a timeframe that's helpful to OP and everyone else in this boat.
My parents bought a house in a desirable area in 1982 for a price that was 1.3x their combined income. It just took my partner and I five months to find a house we could afford that wasn't a 100% remodel, and it is 2.8x our combined income of 250k.
Condescending advice that was never given to generations of homebuyers in this country. Avoiding talking about the real problem entirely and shifting blame entirely onto individuals instead of the f*cked market.
The ‘market’ got ya by the balls .. what are you going to do about it ?? Look around it’s not just housing …
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