Housing slump hits

[Gato_Solo]

Please tell me you live in NYC or LA or Paris at least.

Worse...he lives near the 'Emerald City'...(Seattle)...which was co-opted by the California set starting in the late 1980's, hence driving up property values, and driving down moral standards...

 

[greenfreak]

'Emerald City'

One of these days I'll get out to the west coast. Rusty has always wanted to visit to Seattle.

 

[Inkara1]

So we ended up renting the two-bathroom place... I'm pretty sure I mentioned it but I'm too lazy to check. Signed the papers on Friday. Luckily it's month-to-month, so if housing prices keep falling then I might go into the market when the time's right.

 

[SouthernN'Proud]

That $20K balloon payment is a little scary, although if it's 30 or 40 years in the future maybe I could have some time to save that up. Of course, there are other costs of ownership... homeowner's insurance... I wouldn't have the cash for a 20 percent down payment so I'd probably be saddled with mortgage insurance... if it's a condo, I'd also have to pay association fees, plus water, sewer and garbage aren't paid for like they are here (or are supposed to be, anyway).

Avoid baloon payments like the plague.

Before you sign a mortgage, you better be damn well skippy you're signing on something you either A) intend to live in for that many years, or B) you can turn a profit on.

The ex wife, aka The Beast, and I bought our first house on an ARM. It was a steal for the market at the time, and we planned to be in it no longer than 5 years (turned out to be three) anyway, so we were able to avoid the attendant evils that accompany ARMs. Bought it, brand new mind you, wasn't even built yet, for $67,500. When we decided to move back to the proper end of the state, I wanted to list it for $83,900. The realtor listed it for $78,500. It sold before the sign was up in the yard.

When we bought the house that burned, we refused to go ARM because we had no plans of ever buying another house. THAT got changed...but we kept the property. We're still on fixed rate, no baloon. The payment went up, but we figure it like this. We paid around 75K for house and property. Given what land sells for within 5 miles of here, we got 50K of land and 25K of house. Now we have 50K of land (and rising all the time) and 65K of house. And we're paying for about 90K total. God does provide.

One more tidbit from your elder. Don't rationalize yourself into thinking you can save for the baloon payment. I'd say less than 2% do. You still got life to live beyond a house payment. Kids maybe, cars, having a bit of fun from time to time, you'll age, you'll get sick, you'll have more stuff happen to you than you could fathom. All of it takes money. What'll be the first source you'll draw from? That baloon that isn't even due for another 34 years of course. Then you wake up needing 20K in three years.

Ain't trying to talk you into or out of a thing. Just giving you something to ponder.

 

[Nixy]

$850... seems to be about $100 below market value judging from comparable rentals lately. I found a quick and dirty loan amortizer online and found that the people in the back unit would need to be paying more than $2,200 a month for the combined rents to cover the mortgage payments on the place since it sold for $429,000 and I'm sure he didn't have much of a down payment.

You pay $850 for a two bedroom?! The market value is $950?! Ok, so, California isn't anywhere near as expensive as people make it out to be...you're lucky to find a one bedroom for that here!! I haven't yet found one...and I'm looking.

 

[Gonz]

$850 in his neck of the woods would probably be $1200 in LA or $1400 in SF.

 

[Nixy]

$850 in his neck of the woods would probably be $1200 in LA or $1400 in SF.

Well, a 2 bedroom here is $1300 so that's pretty much right on par with those places.

 

[Gonz]

Then you're paying too much too.

 

[Nixy]

Then you're paying too much too.

It's not "too much" it's what apartments cost here...if you don't pay it then you live on the street.

 

[Inkara1]

How easy is it to find a job that pays $3,900 a month in order for the rent to be a third of your income, though? That makes a big difference. The pay around here isn't all that good.

 

[Nixy]

How easy is it to find a job that pays $3,900 a month in order for the rent to be a third of your income, though? That makes a big difference. The pay around here isn't all that good.

$3900 before taxes or after?

 

[Inkara1]

I believe it's based on pre-tax income.

BTW, that's a hefty chunk of change more than I make, even with a degree and a few years in the field.

 

[Nixy]

How easy is it to find a job where you can make $3900 a month...I guess that depends. Professionals (doctors, dentists, lawyers, engineers) make more than that (or if they don't they should be looking for a new job)...but other people don't. The professionals in my office make more than that, the administrators don't. Some support staff in Oil and Gas don't even make that much (Oil and Gas being the highest paying industry around). So, unless you happen to have a professional degree of some sort chances are you're not making $3900 a month, even pre-tax. Some trades will make more than that, but many of them won't. So, I guess what I'm saying is it fairly likely Mr Average Joe isn't gonna be making $3900 a month.

 

[Gato_Solo]

How easy is it to find a job where you can make $3900 a month...I guess that depends. Professionals (doctors, dentists, lawyers, engineers) make more than that (or if they don't they should be looking for a new job)...but other people don't. The professionals in my office make more than that, the administrators don't. Some support staff in Oil and Gas don't even make that much (Oil and Gas being the highest paying industry around). So, unless you happen to have a professional degree of some sort chances are you're not making $3900 a month, even pre-tax. Some trades will make more than that, but many of them won't. So, I guess what I'm saying is it fairly likely Mr Average Joe isn't gonna be making $3900 a month.

So only the 'well-to-do' can afford to buy a house in Canada. All others must rent. Interesting.

 

[A.B.Normal]

How easy is it to find a job where you can make $3900 a month...I guess that depends. Professionals (doctors, dentists, lawyers, engineers) make more than that (or if they don't they should be looking for a new job)...but other people don't. The professionals in my office make more than that, the administrators don't. Some support staff in Oil and Gas don't even make that much (Oil and Gas being the highest paying industry around). So, unless you happen to have a professional degree of some sort chances are you're not making $3900 a month, even pre-tax. Some trades will make more than that, but many of them won't. So, I guess what I'm saying is it fairly likely Mr Average Joe isn't gonna be making $3900 a month.

$3900 * 12 = $46800 per year gross / 26pay periods =$1800 gross per pay.

$1800/80hrs=$22.50/hr ,now if you have benefits medical/dental etc.. that are considered "taxable " benefits then you don't need to be making $22.5 /hr to reach $3900 /mnth.



Damn,I think I just talked myself into a new car.

 

[A.B.Normal]

Even if you consider $3900/2pay periods =$1950 per pay period =$24.38 /hr (based on a 40 hr work week) =$50700 Gross per year .Granted that is more than I make ,but I'm only part time, working 30-40hrs per week + benefits.

 

[Gato_Solo]

Even if you consider $3900/2pay periods =$1950 per pay period =$24.38 /hr (based on a 40 hr work week) =$50700 Gross per year .Granted that is more than I make ,but I'm only part time, working 30-40hrs per week + benefits.

1. Where do you live?
2. How much is your housing?
3. How much do you pay for insurance?

 

[A.B.Normal]

1)Mid Vancouver Island B.C. about an hour north of Victoria (yeah that Victoria)

2)Reduced rent due to caretaking a farm and doing chores and keeping an eye on the place.

3)Since we rent ,insurance wouldn't be the same as owner insurance ,so no point stating.

We plan on buying,but I'm hoping for them to build a new Store just North of me within a couple years ,because I'd be fulltime there.We have a substantial dp,but it'd be a pain to buy and then sell again in such a short period IMO.

 

[Gato_Solo]

1)Mid Vancouver Island B.C. about an hour north of Victoria (yeah that Victoria)

2)Reduced rent due to caretaking a farm and doing chores and keeping an eye on the place.

3)Since we rent ,insurance wouldn't be the same as owner insurance ,so no point stating.

We plan on buying,but I'm hoping for them to build a new Store just North of me within a couple years ,because I'd be fulltime there.We have a substantial dp,but it'd be a pain to buy and then sell again in such a short period IMO.

That was kinda my point. Your area and Nixy's are over 500 miles apart, so the buying vs renting vs paycheck will be different. Don't know if it would be higher or lower, considering you're near a resort area, but it will be different. The rent inky is paying for rent at his place is over 3 times what I'm paying for mine. I'm sure that p_v and Leslie will be paying different in Toronto as well...

 

[greenfreak]

People can criticize NY all they want but my husband and I each make well over these salary figures. Any computer professional on Long Island or in NYC should make the same if they're good.

While our rent for the 1st floor of a house by the beach was $1500., it was on par with the area. Our mortgage is more than double that and we're handling it just fine.

I think it's about working towards the highest pay level you can for your chosen career, living with someone who is doing the same, and choosing an area that is advantageous for that situation. $1500. rent in NYC probably would get you a 1 room closet that they call a studio. Rusty commuted one hour into the city from where we used to live just fine.

What we did works for us but we were very honest about what we could and couldn't afford. When I was making crap money, I had a crap apartment. Everything improved in degrees over the years. As long as you're moving up with each job, apartment, etc. I think it's just fine. We suffered for years and now we're living the good life. There is something to be said for the struggle. It makes you appreciate the end result that much more.