quote:

Originally posted by bigeinkcmo:
Since we got back from a FL vacation over Thanksgiving my wife and I have been heavily discussing our options. It was kind of eye-opening to see what you can get compared to metro Denver. Our house has more than doubled since we bought it ~13 years ago, but most of those gains have come in the last 3-5 years. The first 5-7 years it stayed pretty much the same value. We could basically sell and buy a modest place outright in a lot of locations out of state or more remote. Our property tax runs 0.8-1% locally, but the increases have been 30%+ the last two appraisal cycles.

It nice to have equity but it also sucks because to get another bedroom upstairs, another bath and maybe a small room (so appx 600-700 sqft total) and it would be 200k more than we could sell our place for. It's nuts, even small cape cod style homes in the 900-1000 sq ft range are going for right around 350-400k in my neighborhood. My buddy was looking here and bought in Aurora because he couldn't even find something under 500k that he would consider. And of the homes he did find he lost out on several all-cash offers. I don't blame him though.

I don't particularly feel like our house is worth what it is, but that's the way the market sees it. Kind of leaves one feeling bewildered.

quote:

Originally posted by chongosuerte:

quote:

Originally posted by Lord Vaalic:
The numbers just don't add up. If average income in the US is $70k and let's even go high and say $75 - $80, even if both people are working that doesn't add up to affording a $500k house. Plus two car payments at $500 - $700 a month.

Who is affording these places?

That’s my question. And rent prices are the same.

I work in Plaza Midwood/Villa Heights/NODA, for those familiar. We are not required to live in the city, but my kids live an hour north of Charlotte with their mom and my wife works off Westinghouse, so I’m in a hard spot as far as moving.

Currently I have an unbelievable residental situation. But eventually we will want to buy. When we moved from the beach I sold my house (got bent over on that) and she kept hers, renting it out long-term.

We occasionally look around. My MIL is a local realtor. We would be most interested in the Gaston County area probably, but we’re waiting at least another year. We have an unbelievable deal where we rent now near 77/485 on the north side of town.

But the prices are insane. We’re hoping for some kind of downturn before we buy. I want to do 20% down on a 15 year mortgage. Ain’t no way in hell were doing that on a $500,000 house.

quote:

Originally posted by BBMW:
Three family house. I had five comps putting the value in the range of $800K. They did two appraisals that came back around $640K. The appraisals were utter garbage. For instance, my building was 3x 2 bed/2 bath units. Some of their comps were all 1 bed / 1 bath. My assumption, and my lawyer agreed with me, is that they just didn't want to lend as much as I wanted, and told the aprraisers to lowball it. Also, I originally wanted 75% LTV, and the pushed it down to 70%, then just rounded it down even more. If I hadn't has as much money into the process as I had, I would have walked away and started over. There were several points where I was very tempted anyway.

quote:

Originally posted by rocket72:

quote:

Originally posted by BBMW:
Are they? I tried to get a commercial mortgage recently, and got run through the mill and lowballed on the LTV. I'm not seeing it.

When you say lowballed on LTV, what LTV did they want and what kind of property is it?

quote:

Originally posted by Lord Vaalic:
The numbers just don't add up. If average income in the US is $70k and let's even go high and say $75 - $80, even if both people are working that doesn't add up to affording a $500k house. Plus two car payments at $500 - $700 a month.

Who is affording these places?

quote:

Originally posted by architect:

quote:

Who is affording these places

People who bought their first home in the 70's when the average cost was under $200K and who have rolled their appreciated equity upwards over the decades.

quote:

Originally posted by RHINOWSO:

quote:

Originally posted by Lord Vaalic:
The numbers just don't add up. If average income in the US is $70k and let's even go high and say $75 - $80, even if both people are working that doesn't add up to affording a $500k house. Plus two car payments at $500 - $700 a month.

Who is affording these places?

Who has two $500-700 / mo car payments? Moreover, why? I'd far prefer to have a couple of older rides and pay more on a house, which unlike a car, can actually be an investment.

Yeah, the average AGI is right at $70K, but the average for people filing Married filing jointly is $118K. Again, thats just averages and depends greatly on location.

Also an eye opener that your chosen occupation directly affects how much you will make. Sorry but school teachers, LEOs, and first responders make not a lot of money, compared to DRs, lawyers, and other professions.

Two people with AGI of $118K, married jointly average. $500K mortgage is $3200/mo, or $38K / year. Yeah that's a lot but if you aren't swallowing $12-18K/year for new shiny cars, it isn't hard.

quote:

Originally posted by chongosuerte:
Factor in health insurance, easily $12,000 a year, water/sewer/cable/internet/gas/power/insurance/escrow...I can’t understand how $118k can do it.

quote:

Originally posted by RHINOWSO:

quote:

Originally posted by chongosuerte:
Factor in health insurance, easily $12,000 a year, water/sewer/cable/internet/gas/power/insurance/escrow...I can’t understand how $118k can do it.

Responsible financial planning.

I had a $520K house at age 31 making $100K / year. We had made $120k on a previous house and put 10% down, covered closing costs, fees.

Key was we didn't have car payments and zero credit card debt. We didn't eat out every day, budgeted expenses, spent when it made sense and when it didn't, we stayed home with the kids.

It's all about choices.

quote:

Originally posted by ElToro:
The problem with selling and cashing out is I have to live somewhere.

quote:

Originally posted by sjtill:
We are still renting in San Diego only because the inventory is so low, haven't found anything we really like in this very desirable area. So we've watched prices increase about 10% in the last year.
This area of SD (Scripps Ranch) only fell about 10% in the Great Recession.

quote:

Originally posted by oddball:

quote:

Originally posted by ElToro:
The problem with selling and cashing out is I have to live somewhere.

Not a problem; simply move out of state for a better life

quote:

Originally posted by Dusty78:

quote:

Originally posted by Skins2881:

quote:

Thirsty Beaver over in Plaza Midwood? An apt building was built around it since they refused to sell.

That is hilarious. I don't think I have ever seen anything like that. I wonder if the snooty apartment dwellers will make that their new watering hole?

So the place is run by two brothers I think.

quote:

Originally posted by bigeinkcmo:

quote:

Originally posted by BBMW:
Can you do an addition to your current house (either out or up)? ...

Yeah, good question. We could do either but I’m a bit concerned about the stagnant wage growth slowing things here. We’re adding folks, it’s record low unemployment but wages are stalling and costs are increasing fast. I feel like something has to give.

quote:

Originally posted by ElToro:
Good job and career making good money etc. but it’s getting close. Another round of f’d Up gun and tax laws and that may the straw that breaks my back... In the next 10-20 years maybe sooner it could get reallly ugly.

quote:

Originally posted by NavyGuy:
Same here in Texas, northeast Fort Worth area. Values where holding pretty steady, increasing moderately each year in line with the general COL but the last 4-5 years they have skyrocketed. Our house has increased so much we looked into selling and maybe moving to a smaller place with a smaller yard, but it works both ways. Sell at a nice profit, then pay through the ass for a new place. We still may do that this spring or summer.

I don't know how kids starting out can get into a decent house when what was considered a "starter house" now goes over $200,000 and might need a lot of upgrading.