I've followed the local real estate market closely for the past couple
years and have noticed home prices sky rocket over the past year (I live on the
edge of the Seattle metropolitan region). Now all 200k gets you up my way is a
one-bedroom, one-bath home that's at the end of its economic life. I'm
not sure how prices can keep rising so quickly when wages aren't going up.
In past years one hoped their children would do better, but not since Obama took
over. REd tape, high taxes, including the world's highest corporate tax
rate, complicated tax structure, enormous social spending, deficit spending are
restraining the economy. We have too many on welfare and govt assistance.
There are jobs going untaken.
Median income has been very sluggish since 2008.And many people have
realized, post 2008, that a home is not necessarily an investment. It is
shelter first & foremost, but expecting to make a lot of money on your home
appreciating in value is not realistic.Utah did not get hammered the
way Las Vegas and southern California were in the Great Recession. A co-worker
bought a house in Vegas that had last sold for $380,000, for $85,000.
Definitely not an investment.
To "Strider303" there are actually lots of "starter homes" out
there. The problem is that many young couples want to start in a home just like
their parents currently own. They don't want the small house. Another
problem with the "starter homes" out there is the location. Yes you can
get that 1500 sq ft house for $100,000 that is located in high crime area. But,
would you want to live there?
The article was shallow and did not shed a lot of light on the issue - home
ownership, in my not too humble opinion.I think the author(s) should
have discussed lack of what used to be called "starter homes" i.e., two
or three bedrooms, one bath, modest living space and carport. Another issue is
the mortgage payment to income percentage, and other long term debt payments the
potential owners carry. A third factor could be ability of purchaser to set and
follow a budget, short and long term.It would have been nice to see
the incomes of the potential buyers and costs of dwellings being sought. Many
times our home "eyes" are bigger than our pocket books.I did
not find the article that helpful or interesting, and we will purchase a home
within the next year.
We have found if we are in the habit of regularly saving money, the process of
purchasing a home is just not that difficult. Also, maintaining it isn't a
problem. It requires smart money management. It is really about making choices
as to where we spend our money and time. The biggest issue we have had to deal
with was dealing with incompetent real estate people. A good real estate agent
should be able to assess what we are looking for and not waste our time with
showing us garbage homes in scary neighborhoods just because it is a home they
have listed. I remember having to take the phone from an agent so that I could
complete the closing details.
What's the hardest part of affording a home?Oh, I don't
know, maybe the money?Is this a trick question?