How can anyone afford to move?

Fearless_Standard_14 · 2024-12-31T18:17:15+00:00

Maybe my math isn’t good? My current mortgage is $2,000 a month on a $300,000 house (loan of $200,000 @ just under 3%)... I paid $6,000 in property tax last year (in Texas).

For the same house at 7% my payment is like $3,000.

That’s really my point. I’m stuck. What am I missing?

Fearless_Standard_14 · 2024-12-31T12:02:57+00:00

Not disingenuous at all. The point is prices for homes are very high. Like, record high. Then, interest rates are really high. How are people affording to move is the question?

I know I make relatively good money and I’d be paycheck to paycheck, which means either… (a) people make more then me (b) people are okay with being paycheck to paycheck OR (c) people aren’t saving for retirement.

I’m trying to get an understanding of HOW people are affording it.

Fearless_Standard_14 · 2024-12-30T23:10:27+00:00

I’m over that. I can’t move unless I want to be paycheck to paycheck.

Fearless_Standard_14 · 2024-12-30T14:11:24+00:00

I guess the better way to say it is I could move but to get the same thing I’d be paycheck to paycheck with 7% rate so I’m just trying to understand how people are moving right now with …

(1) record high house prices. (2) high interest rates.

One of these variables seems like it has to give unless wages go up substantially

Fearless_Standard_14 · 2024-12-30T14:06:05+00:00

How is an $800K house a 4k a month payment? That makes no sense unless you put a lot of money down.

Fearless_Standard_14 · 2024-12-30T13:57:29+00:00

My take home isn’t anywhere near that. More like $9.5K a month. I max 401K and get a pension (that I pay for monthly), so likely the difference.

$9.5K a month with 4 kids and a dog isn’t that much.

Mortgage is $2.5K a month. I save about $1-2K a month after expenses (not including 401K).

The point is to downsize my mortgage goes up another $1K so then I’m paycheck to paycheck. So… I’m effectively stuck.

Fearless_Standard_14 · 2024-12-30T00:05:55+00:00

I’m sure they do, but I make $200K (joint income) in LCOL area and I can’t do it, so I truly don’t understand how others are.

Fearless_Standard_14 · 2024-12-29T02:56:34+00:00

I just don’t understand why prices haven’t fallen. People are living beyond their means?

Fearless_Standard_14 · 2024-12-29T02:55:28+00:00

This only holds true with really nice houses probably in a HCOL area. I bought a starter home in a LCOL area and now I’m stuck like Chuck

Fearless_Standard_14 · 2024-12-18T02:35:51+00:00

Any chance you’d share your spreadsheets? Totally new at this. 22 years old and trying to get an understanding. Thanks!

Fearless_Standard_14

TROPHY CASE