When projecting your future income, don't forget that Uncle Sam is going to take a big ol' chunk of that. Your net is going to be significantly less than your gross.
When projecting your future income, don't forget that Uncle Sam is going to take a big ol' chunk of that. Your net is going to be significantly less than your gross.
SearchMaster
Diamond Member
- Jun 6, 2002
- 7,791
- 114
- 106
Originally posted by: axelfox
Winnar. But I've met alot of PhDs that don't make alot of money.
There are alot of ways to finance a house, so there is a pay structure for pretty much every income level.
Financing with interest-only or extremely long-term loans doesn't make it any more affordable in reality. I could sell you a brand new car for $150 a month (for life) - interested? Your only hope with "financing options" is that the value of your home appreciates at a rate far greater than inflation...possible in some markets but not all.
Engineer
Elite Member
- Oct 9, 1999
- 39,230
- 701
- 126
Svnla
Lifer
- Nov 10, 2003
- 17,986
- 1,388
- 126
What is the size of the house <sq. feet> and how many beds/baths for this brand new house? Which area is this, Plano?
How old is the house? Which area is this?
Darn, and I thought housing in this area is cheap. Look like DFW is the place to be.
The house I live right now is about $180K, 4 beds, 2 baths, 1 story, 1900 sq. ft.
Originally posted by: isasir
I wonder how overvalued (if at all) the New York/Long Island/Upstate market is.
I'm looking to buy a house this year (ideally), but the average price of a house in Nassau is $480,000.
My alternate option is to buy a co-op now, and hope the market does drop a bit, and invest my money elsewhere in the meantime. Then in a year or two (or longer) buy a house.
tough to say with NYC and North NJ.
Within the next 7 yrs.
NY Mets will build new stadium 1.5 billion project
NY Yankees will build new stadium 1.8 billion project
NY Giants (Jets) in NJ will get new stadium
NJ (soon to be brooklyn) nets get new building
NJ Devils will build new building in Newark NJ
they will rebuild the twin towers.
that is a LOT of major construction happening over the next 10 yrs. hard to see how real estates is going to go down during that period of time.
AFTER that mb.
IronWing
No Lifer
- Jul 20, 2001
- 72,044
- 32,291
- 136
Better check that calendar, the median house price in Tucson in last quarter, 2005 was $220K+, a 29% jump in one year.
http://www.dqnews.com/ZIPAZ.shtm
Starter houses are running $130K+ if you can find one. The new Casa Piñatas are even more expensive, running ~$150+ per sq ft.
Edit: More to the point, median household income for Tucson in 2005 was ~50K (high estimate, estimates run from ~42K-50K), putting the median house price above four times median income. With the ultra low interest rates over the last few years the median household could afford the median house. However as rates rise, unless we we a corresponding drop in prices, the median house will be too expensive for the median household to afford.
Originally posted by: daweeze02
all i can say is I am moving out of florida because it is getting way too $$$ to live here, moving to VA
you better pray to god your not moving to northern virginia... the housing prices here are insane
SarcasticDwarf
Diamond Member
- Jun 8, 2001
- 9,574
- 2
- 76
True in a limited sense. When someone refers to Phoenix, they are usually referring to Phoenix, Gelndale, Scottsdale, etc. It is the area. Now people who live there *might* distinguish, but it is not required.
Slew Foot
Lifer
- Sep 22, 2005
- 12,379
- 96
- 86
I sold my 1200 sqft home in San Francisco a year back at 750K. I took the profit and bought a home in Sacramento for 450K. I think the market in the CA central valley is taking a dump right now, there are LOTS of houses for sale and the new developments seem like they're offering really low prices. A house similar to mine is being offered at 360K base.
NOVA inventories are exploding. There was an article in the washington post this past weekend about how some condo developments were 25% investor owned and now everyone is selling.
Wait 2 years and you will get a nice deal
Wait 2 years and you will get a nice deal
Demon-Xanth
Lifer
- Feb 15, 2000
- 20,551
- 2
- 81
purbeast0
No Lifer
- Sep 13, 2001
- 53,478
- 6,317
- 126
Since I'm a n00b to real estate, what exactly is that saying?
I've been very vaguely looking at the condo market in Rockville, MD and around the area of Silver Spring, but I haven't really had a chance to check out VA's market. I would love to live in northern VA around arlington or tysons, but from my general knowledge, I know condo's in there are probably ridiculously expensive.
Does this mean the prices will drop pretty soon? or more along the lines of a couple years?
EDIT:
another general mortgage question ... if you do a double payment on a mortgage, does the added extra $ you put in go directly to the principle %100 ?
So like if you have a $1000 mortgage where $800 is going torwards interest and $200 torwards the principle, and pay $2000 for the month, does that mean $1200 goes torwards the principle?
Fingolfin269
Lifer
- Feb 28, 2003
- 17,948
- 31
- 91
I agree. They should be pulling in about $6000 per month after taxes (depending upon any retirement this number could be a bit different). Let's say you spend $2000 per month on your cars and your house that still leaves you about $4000 per month. WTF does it go? Do you even know? Have you tried writing down every purchase for an entire month to figure out where your money is going?
Whoah, hold on there. What part of Dallas are you talking about. North Dallas? My brother was looking at a house in North Dallas and it was $200K+ with two bedrooms and no garage. Nice area though. That's pretty much what you are paying for. Like you said, it depends on the area.
SarcasticDwarf
Diamond Member
- Jun 8, 2001
- 9,574
- 2
- 76
To explain the above:
1) Not as many people are buying. This is because the average moron is slowly coming to realize that the market has shifted. Also, investors are no longer buying.
2) The rate at which houses are put on the market has increased, while the rate at which people buying has decreased.
3) Prices have not really started to fall much because we are still in a transition period.
1) Not as many people are buying. This is because the average moron is slowly coming to realize that the market has shifted. Also, investors are no longer buying.
2) The rate at which houses are put on the market has increased, while the rate at which people buying has decreased.
3) Prices have not really started to fall much because we are still in a transition period.
Dulanic
Diamond Member
- Oct 27, 2000
- 9,957
- 581
- 136
It is deff not affordable here in New England region. A 2BR Townhome costs 275K.... 3BR... atleast 300K. A house? 3-4BR 350+ unless it is a beater. Between me and my fiancee we make almost 100K, and we can't come close to affording a house right now with these prices.
it's pretty simple, there have always been professional home flippers that know how to buy good properties, rehab them and sell at a profit. the last few years it's been the dot com all over again just this time in RE
A lot of so called investors bought up a lot of real estate in NOVA and other parts of the country. Many times the pros were selling to the amateurs. they used the ultra-low creative financing to pay 1% or so until they sell. Now they are all selling. NOVA inventories have quadrupled in the last year and sales are down.
Virginia MLS
The lack of inventory has pushed prices up because you still had people who want to buy a real home compete for property. Now the Donald Trump wanna bees will foreclose since they can't sell what they bought. And since a lot of them used their existing home equity for this madness, they will lose their homes as well.
Now for part 2, how do people afford the crazy prices? In the last few years over 30% of all new mortgages have been adjustable rate, interest only or Option ARM. If you ask a couple making $100,000 how they can afford their $500,000 mortgage and they say their payments are only $1000 a month, they are in for a big shock soon.
Many people bid up prices and took out ARM's since that is the only way they can afford their dream home. A lot of people had the idea of living in a nice home for a few years and when they can't afford it they sell and buy something they can afford. It's like a game of musical chairs, someone is always left standing. This year $300 BILLION worth of loans will adjust. Next year is $1.5 TRILLION and 2008 is also around $1 TRILLION and then it drops off. Current rates are around 5.5% plus 1% or 2% premium. If rates stay the same, then a lot of people's mortgages will go up to 8% or 9% per year in interest. On a $400,000 mortgage you are talking around $3000 a month plus taxes and insurance. And then you need cars, gas and food. $3500 a month home payment translates to a couple making $100,000 per year. Of course the national average and median is a lot less.
This year it's the investors selling in bubble markets. Next year when they foreclose and banks try to sell the extra inventory you will have the stupid people trying to sell and suddenly their equity will vanish. As they can't sell they will foreclose and this will add even more inventory to the 2008 people and so one.
A lot of investors have plans to rent out if they can't sell. Again, it's going to be too much competition. And to top it off, many markets will have huge numbers of new contstruction come online in the next 2 years.
A lot of so called investors bought up a lot of real estate in NOVA and other parts of the country. Many times the pros were selling to the amateurs. they used the ultra-low creative financing to pay 1% or so until they sell. Now they are all selling. NOVA inventories have quadrupled in the last year and sales are down.
Virginia MLS
The lack of inventory has pushed prices up because you still had people who want to buy a real home compete for property. Now the Donald Trump wanna bees will foreclose since they can't sell what they bought. And since a lot of them used their existing home equity for this madness, they will lose their homes as well.
Now for part 2, how do people afford the crazy prices? In the last few years over 30% of all new mortgages have been adjustable rate, interest only or Option ARM. If you ask a couple making $100,000 how they can afford their $500,000 mortgage and they say their payments are only $1000 a month, they are in for a big shock soon.
Many people bid up prices and took out ARM's since that is the only way they can afford their dream home. A lot of people had the idea of living in a nice home for a few years and when they can't afford it they sell and buy something they can afford. It's like a game of musical chairs, someone is always left standing. This year $300 BILLION worth of loans will adjust. Next year is $1.5 TRILLION and 2008 is also around $1 TRILLION and then it drops off. Current rates are around 5.5% plus 1% or 2% premium. If rates stay the same, then a lot of people's mortgages will go up to 8% or 9% per year in interest. On a $400,000 mortgage you are talking around $3000 a month plus taxes and insurance. And then you need cars, gas and food. $3500 a month home payment translates to a couple making $100,000 per year. Of course the national average and median is a lot less.
This year it's the investors selling in bubble markets. Next year when they foreclose and banks try to sell the extra inventory you will have the stupid people trying to sell and suddenly their equity will vanish. As they can't sell they will foreclose and this will add even more inventory to the 2008 people and so one.
A lot of investors have plans to rent out if they can't sell. Again, it's going to be too much competition. And to top it off, many markets will have huge numbers of new contstruction come online in the next 2 years.
SarcasticDwarf
Diamond Member
- Jun 8, 2001
- 9,574
- 2
- 76
FYI, most houses being rented out on the bubble markets have long been rented out for a fraction of the monthly mortgage. A house with a $2800/month mortgage is often rented for $1600.
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