Super duper Tuesday

[Veer2Eternity]

Not saying they should. But my parents were able to build a home at 22 in 1982 equivalent to what a 400k home is today. In our area a 225k home is not a whole lot of a house. If they put 10% down, with taxes and insurance it's going to cost them $1,800/month. What was your payment on your house in 2001? And how much did the house cost?

that's why you buy a 225k house and assume it's going to be worth more soon.

Big problem is rent. it's insane and there's nothing anything can do about it.

Maybe trump shouldn't have let people live in rentals without paying for so long.

 

[65TPT]

that's why you buy a 225k house and assume it's going to be worth more soon.

Big problem is rent. it's insane and there's nothing anything can do about it.

Maybe trump shouldn't have let people live in rentals without paying for so long.

Rent is so expensive because the rising cost of homes and properties. When it costs $1,800/month for a below average home that you have to foot the bill if something happens, then most people are ok paying $1,200-$1,500 to not worry about fixing the A/C or roof or any other maintenance. That and most people know they don't have the money to fix those issues because 80% of America lives paycheck to paycheck.

 

[Veer2Eternity]

Rent is so expensive because the rising cost of homes and properties. When it costs $1,800/month for a below average home that you have to foot the bill if something happens, then most people are ok paying $1,200-$1,500 to not worry about fixing the A/C or roof or any other maintenance. That and most people know they don't have the money to fix those issues because 80% of America lives paycheck to paycheck.

and how did we get here?

 

[blindedbythelight]

25 year old, shouldn't be buying a 380k house. my first house was way less than the average house. its called starter homes for a reason.

the first house I bought I could afford, you could look up through the ceiling and see sunlight. But it was cheap and on a double corner lot 2 blocks from a school. I rebuilt it myself from the shingles down and 5 years later sold it for a good profit. Built 3 more new homes after that and never took out a mortgage on any of them. I dont see how a young couple can afford payments on a $300,000 house I would live in a tent first

 

[65TPT]

and how did we get here?

Lack of financial understanding that should be taught in schools is a start. Inflation is the next. And if you are going to sit here and say it is all on Trump for that and that no democrats are to blame, then give me what you're drinking. I love when people argue it's right or left but can't come to the conclusion that all the politicians are corrupt. It has been a joint effort by the idiots in office to make the country worse than what it was.

 

[Veer2Eternity]

Lack of financial understanding that should be taught in schools is a start. Inflation is the next. And if you are going to sit here and say it is all on Trump for that and that no democrats are to blame, then give me what you're drinking. I love when people argue it's right or left but can't come to the conclusion that all the politicians are corrupt. It has been a joint effort by the idiots in office to make the country worse than what it was.

I've routinely stated it falls on both biden and trump.

 

[straw09]

Don't get me wrong, Interest rates suck, but when your in your 20's, buy what you can afford,(update it/ fix it up, sell and repeat. and I will say again, interest rates were too low, for too long. the one complaint I have with this administration(on this subject) is that they denied that inflation was raising, and waited to long to raise the interest rates.

 

[Veer2Eternity]

Don't get me wrong, Interest rates suck, but when your in your 20's, buy what you can afford,(update it/ fix it up, sell and repeat. and I will say again, interest rates were too low, for too long. the one complaint iIhave with this administration(on this subject) is that they denied that inflation was raising, and waited to long to raise the interest rates.

does the admin really control the interest rates?

I do recall trump making comments daring the fed to raise rates during his term. he didn't want the runaway economy to slow down.

 

[65TPT]

Don't get me wrong, Interest rates suck, but when your in your 20's, buy what you can afford,(update it/ fix it up, sell and repeat. and I will say again, interest rates were too low, for too long. the one complaint I have with this administration(on this subject) is that they denied that inflation was raising, and waited to long to raise the interest rates.

I agree and that is what I did, I'm saying it's a lot harder now to do that than it was even 5 years ago. Which goes back to why rent is so high because the demand is so great because people can't afford to buy.

 

[Veer2Eternity]

I agree and that is what I did, I'm saying it's a lot harder now to do that than it was even 5 years ago. Which goes back to why rent is so high because the demand is so great because people can't afford to buy.

I dont see any houses not selling/empty

. It's not as crazy as it was 3 years ago but houses are being sold for crazy amounts quickly still.

 

[straw09]

does the admin really control the interest rates?

I do recall trump making comments daring the fed to raise rates during his term. he didn't want the runaway economy to slow down.

does the admin really control the interest rates?

I do recall trump making comments daring the fed to raise rates during his term. he didn't want the runaway economy to slow down.

Well, the federal reserve does, I just lumped them together.

 

[Veer2Eternity]

Well, the federal reserve does, I just lumped them together.

Yep i think the Admin uses their 'bully pulpit' to sway them. I know trump did to basically keep interest rates at zero (for WAY too long)

 

[bullitpdq68]

I'm 31. So no, I wasn't around in the 70s and 80s and definitely wasn't looking to buy a house in the 90s lol. But I have had this conversation with my parents. They built in 1982 when interest rates were 12%. They built their house for less than 80k. That includes land and all. That same house would cost almost 400k to build today and the land would be worth almost 60k. 12% interest is way less on 90k than 7% is on 400-450k. I know we will never see the 2-3% interest again, but even at 5%, you're saving $400/month compared to 7% interest. On a 30 year loan you would save over 150k. I was fortunate enough to buy a house before the pandemic, but I do feel for young adults trying to buy their first home in todays market. When I checked on rates a month or so ago they quoted me at 6.99. Maybe your local banks can quote you that low, but I haven't seen it around here.

Chase was the lowest, I have never found a local bank that can beat the big boys. However I hear what you are saying, right now we want to move to the country, recently found a home we really like 7 acres of land 3700 square foot home a 36X28 shop $450,000 its only been listed 1 month, and there are already 8 competing bids on the dang home, many of them are not even local and have not even looked at the house. Our realtor told us she keeps thinking it is going to slow down but it hasn't, they are selling houses as fast as they can list them even with what people say are terrible interest rates, and she said she has sold a few sight unseen from buyers out of state. When talking to here we both agreed these interest rates are not bad, 2005 when we built our current home 6.5 was what I had. I have since refinanced and I am sitting at 2.1, and right now you can get 4.5 precent interest on your checking account, You can make more money buy not paying off your home early.

So honestly to say interest rates are killing things is just not right, the market is still hot, people are still building and purchasing. Remote work has changed how people live and where people live. I have had job offers from all over and they all tell me I can work remote won't have to move. I don't know when we will see home sales level off but I am sure at sometime all this will finally come to a halt, let's just hope it's not a big one. I remember in 2005 we were going just like this and it finally all came crashing down along with home prices, there is always a correction.

 

[bullitpdq68]

Not saying they should. But my parents were able to build a home at 22 in 1982 equivalent to what a 400k home is today. In our area a 225k home is not a whole lot of a house. If they put 10% down, with taxes and insurance it's going to cost them $1,800/month. What was your payment on your house in 2001? And how much did the house cost?

The average yearly income in 1982 for America was $11,000, I would assume in Missouri it would be lower than that but for sake of argument we will go with national numbers.
In today today's dollars $11,000 translates into $35,200 I am rounding up. That $80,000 home translates into $255,682.49 in todays dollars. So when you look at these numbers, $11,000 income $80,000 home 1982, then compare to $35,200 income and $255,700 everything honestly looks to be on par. That is assuming one income household which many were back in the 80's, not like today were both moms and dads have two income households.

 

[blindedbythelight]

Not saying they should. But my parents were able to build a home at 22 in 1982 equivalent to what a 400k home is today. In our area a 225k home is not a whole lot of a house. If they put 10% down, with taxes and insurance it's going to cost them $1,800/month. What was your payment on your house in 2001? And how much did the house cost?

I have a picture of my 20 year old dad setting rafters on the old family rock home when he got back from the war in 1946 I think. Grandad built the front two rooms out of field stone, my dad added 3 more rooms and a bathroom . A few years ago I helped my son put a new roof on it and remodel it when he started his family there. Never has been a mortgage on the property or home, just a lot of work and sweat to build a place to live. We have lost a lot of the work ethic in this country and people want to live in a McMansion that they cant afford and it eats them up

 

[straw09]

I have a picture of my 20 year old dad setting rafters on the old family rock home when he got back from the war in 1946 I think. Grandad built the front two rooms out of field stone, my dad added 3 more rooms and a bathroom . A few years ago I helped my son put a new roof on it and remodel it when he started his family there. Never has been a mortgage on the property or home, just a lot of work and sweat to build a place to live. We have lost a lot of the work ethic in this country and people want to live in a McMansion that they cant afford and it eats them up

My neighbors son is building a 5000sq ft home. He is single.

 

[bullitpdq68]

I have a picture of my 20 year old dad setting rafters on the old family rock home when he got back from the war in 1946 I think. Grandad built the front two rooms out of field stone, my dad added 3 more rooms and a bathroom . A few years ago I helped my son put a new roof on it and remodel it when he started his family there. Never has been a mortgage on the property or home, just a lot of work and sweat to build a place to live. We have lost a lot of the work ethic in this country and people want to live in a McMansion that they cant afford and it eats them up

My first home I purchased was so bad that racoons were living in it. Slowly rebuilt it and sold it and moved on up. I agree seems people today want what their parents have now without having to build up to it. The things I have now took me 40 years of hard work, sometimes me and my wife worked two jobs. When we decided to have kids our first one we both worked two jobs to save up the $1,500 that it was going to cost us out of pocket to have the child.
My Grandmother didn't have a dryer until almost 1979 the old washer she used still had a ringer on it. I remember mom and dad purchased a brand new home in 1982 and there was only central heat no central air, central air was a luxury, We did have a nice Attic fan that pulled in the cool air at night. Can you imagine if a new home today didn't have central air, people would lose their minds.