Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Old 06-23-2009, 09:54 AM   #21
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
FinanceDude's Avatar
 
Join Date: Aug 2006
Posts: 12,484
I think his intent was to point out the absurdity of the way "median Tom and Jane" live. Looks like math was NOT his strong point.........
__________________

__________________
Consult with your own advisor or representative. My thoughts should not be construed as investment advice. Past performance is no guarantee of future results (love that one).......:)


This Thread is USELESS without pics.........:)
FinanceDude is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 06-23-2009, 09:58 AM   #22
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
FinanceDude's Avatar
 
Join Date: Aug 2006
Posts: 12,484
Quote:
Originally Posted by Want2retire View Post
... but I did it on a five figure salary
... I started with $60K+ that I had saved up over a couple of years ($32K of which I used for the down payment)
... also, NO debt including CCs
... $2700/mo is $32,400/year
... $32,400/year net is less than $50,000 gross per year;
... also contributed the max to my 401K, about half what the max is now, but it did lower my tax bracket
... plus I have saved a lot since 2006 when I paid it off, due to no mortgage or lump sum payments
... ***Life is full of choices*** Is it leaving way below my means to live in a really nice house instead of in a hovel? Guess it all depends on one's choices. I chose to budget my money as stated.

Besides, when you get the $500K home paid off by 2017, then you have your whole salary to live on, plus you are living rent free! Piece 'o' cake. But who wants it? Not Ziggy29, not me either.
You did it your way, which was right for you. However, Joe Median thinks he DESERVES a $350,000 house on a $72,000 salary, wherein the problem lies........
__________________

__________________
Consult with your own advisor or representative. My thoughts should not be construed as investment advice. Past performance is no guarantee of future results (love that one).......:)


This Thread is USELESS without pics.........:)
FinanceDude is offline   Reply With Quote
Old 06-23-2009, 10:31 AM   #23
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Nov 2007
Posts: 7,530
Quote:
Originally Posted by FinanceDude View Post
You did it your way, which was right for you. However, Joe Median thinks he DESERVES a $350,000 house on a $72,000 salary, wherein the problem lies........
I think you are referring to Joe2StdDev, not Joe Median.

I see plenty of what I assume are moderately wealthy households making what I assume to be much more than the median income (based on their occupations) living in my neighborhood full of median-priced houses. Of course we also have Sec. 8 tenants living on welfare in the neighborhood too. There's always those above the median and those below the median...

And I'll have to say, the author of the article is particularly bad at math and fact-checking.
__________________
FUEGO is online now   Reply With Quote
Old 06-23-2009, 11:08 AM   #24
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Moemg's Avatar
 
Join Date: Jan 2007
Location: Sarasota,fl.
Posts: 10,035
A $350,000 house is just a starter home in a lot of areas in the northeast .

Denville Township, NJ, 07834 - MLS ID#2843124 - Single Family Home real estate - REALTOR.comŽ
__________________
Moemg is offline   Reply With Quote
Old 06-23-2009, 12:48 PM   #25
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Nov 2007
Posts: 7,530
Quote:
Originally Posted by Moemg View Post
A $350,000 house is just a starter home in a lot of areas in the northeast .

Denville Township, NJ, 07834 - MLS ID#2843124 - Single Family Home real estate - REALTOR.comŽ
And? The median house price in Denville, NJ is double the national median. The median household income is virtually double the national median. Folks in Denville, NJ aren't spending much more on housing than the rest of us (on average).
__________________
FUEGO is online now   Reply With Quote
Old 06-23-2009, 12:58 PM   #26
Moderator
ziggy29's Avatar
 
Join Date: Oct 2005
Location: Texas
Posts: 15,612
Quote:
Originally Posted by Moemg View Post
A $350,000 house is just a starter home in a lot of areas in the northeast .
True, but that usually comes with higher than average wages and salaries. What really often matters is the "affordability index," or some measure of how much income an averageish household earns relative to averageish home prices in the area.

A $250,000 house in a market where the median household income is $80,000 is more "affordable," in some ways, than a $150,000 house in a market where the typical income is $35,000.
__________________
"Hey, for every ten dollars, that's another hour that I have to be in the work place. That's an hour of my life. And my life is a very finite thing. I have only 'x' number of hours left before I'm dead. So how do I want to use these hours of my life? Do I want to use them just spending it on more crap and more stuff, or do I want to start getting a handle on it and using my life more intelligently?" -- Joe Dominguez (1938 - 1997)

RIP to Reemy, my avatar dog (2003 - 9/16/2017)
ziggy29 is offline   Reply With Quote
Old 06-23-2009, 01:07 PM   #27
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
freebird5825's Avatar
 
Join Date: Feb 2008
Location: East Nowhere, 43N Latitude, NY
Posts: 9,017
Made me look...
Housing and Transportation Affordability Index

Data is incomplete nationwide, but there are enough locations to take a look at.
__________________
"All our dreams can come true, if we have the courage to pursue them." - Walt Disney
freebird5825 is offline   Reply With Quote
Old 06-23-2009, 01:15 PM   #28
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Moemg's Avatar
 
Join Date: Jan 2007
Location: Sarasota,fl.
Posts: 10,035
Quote:
Originally Posted by ziggy29 View Post
True, but that usually comes with higher than average wages and salaries. What really often matters is the "affordability index," or some measure of how much income an averageish household earns relative to averageish home prices in the area.

A $250,000 house in a market where the median household income is $80,000 is more "affordable," in some ways, than a $150,000 house in a market where the typical income is $35,000.

Absolutely but there are no $250,000 houses there . The average house is $380,000 and it is certainly no luxury abode . The average wage is $68,000 .My point was that $350,000 does not necessarily buy a mansion everywhere .
__________________
Moemg is offline   Reply With Quote
Old 06-23-2009, 03:31 PM   #29
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
clifp's Avatar
 
Join Date: Oct 2006
Posts: 7,450
There aren't even any homes for $500,000 in many parts of Hawaii. As this $440,000 teardown illustrates. Yet people still figured out how to live here at income levels ($63K) only modestly higher than the median household in the nation.
__________________
clifp is offline   Reply With Quote
Old 06-24-2009, 12:47 AM   #30
Moderator Emeritus
Nords's Avatar
 
Join Date: Dec 2002
Location: Oahu
Posts: 26,618
Quote:
Originally Posted by clifp View Post
There aren't even any homes for $500,000 in many parts of Hawaii. As this $440,000 teardown illustrates.
For Kailua that's actually a pretty nice lot. And contractors are plentiful now!
__________________
*
*

The book written on E-R.org, "The Military Guide to Financial Independence and Retirement", on sale now! For more info see "About Me" in my profile.
I don't spend much time here anymore, so please send me a PM. Thanks.
Nords is online now   Reply With Quote
Old 06-25-2009, 07:25 AM   #31
Thinks s/he gets paid by the post
Bimmerbill's Avatar
 
Join Date: Jan 2006
Posts: 1,631
[quote=Moemg;828875]A $350,000 house is just a starter home in a lot of areas in the northeast .

Things are still pretty expensive up here in NH. Tho for 280-300K I could get a very nice 2000-2400 sq/ft colonial on about 5 acres in my town.
__________________
Bimmerbill is offline   Reply With Quote
Old 06-25-2009, 09:08 AM   #32
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
FinanceDude's Avatar
 
Join Date: Aug 2006
Posts: 12,484
[quote=Bimmerbill;829554]
Quote:
Originally Posted by Moemg View Post
A $350,000 house is just a starter home in a lot of areas in the northeast .

Things are still pretty expensive up here in NH. Tho for 280-300K I could get a very nice 2000-2400 sq/ft colonial on about 5 acres in my town.
Living in the Midwest is affordable compared to other areas, but prices are creeping up. I bought my house in 1995 for $169,900. We probably put $20,000 into it over the past 14 years. At the height of the RE market, I could sell it for $289,000, according to my RE buddy. Now he says I could get $269,000. In my area, any house under $300,000 is considered "affordable"........
__________________
Consult with your own advisor or representative. My thoughts should not be construed as investment advice. Past performance is no guarantee of future results (love that one).......:)


This Thread is USELESS without pics.........:)
FinanceDude is offline   Reply With Quote
Old 06-25-2009, 09:14 AM   #33
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
freebird5825's Avatar
 
Join Date: Feb 2008
Location: East Nowhere, 43N Latitude, NY
Posts: 9,017
Snowbelt prices...the bottom end of the scale
(source: Syracuse, NY Real Estate on Yahoo! Real Estate - Houses for Sale & more)

Syracuse, NY Real Estate Market Snapshot
updated Monday, June 22, 2009

Homes for Sale - 588
$98,900 Median Price

New Homes - 1
$239,990 Median Price

Foreclosures - 115
$62,242 Median Price
__________________
"All our dreams can come true, if we have the courage to pursue them." - Walt Disney
freebird5825 is offline   Reply With Quote
Old 06-25-2009, 09:14 AM   #34
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Nov 2007
Posts: 7,530
Quote:
Originally Posted by FinanceDude View Post
In my area, any house under $300,000 is considered "affordable"........
According to real estate agents, any house is affordable.
__________________
FUEGO is online now   Reply With Quote
Old 06-25-2009, 09:19 AM   #35
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jul 2003
Location: Kansas City
Posts: 7,409
1970, three bedroom one bath 900 sq ft tract home in the burbs outside Kansas City - built to raise a family of four(or more). One car garage since enclosed to make a tad under 1100 sq ft.

Overpaid 85k in 2005 post Katrina.

heh heh heh - you know my fish camp cost 21k in 1979. Houses are waaaay too expensive.
__________________
unclemick is offline   Reply With Quote
Old 06-25-2009, 10:27 AM   #36
Thinks s/he gets paid by the post
Bimmerbill's Avatar
 
Join Date: Jan 2006
Posts: 1,631
DW bought .66 acres on for 12 or 15K cash (forgot which) back before the market went crazy. Its a nice lot, across the street from a small lake. Water views, not water front.

I keep saying if I get sick of it all I will put a single wide on it and become a drain on society (well, some would argue that I am already a drain) by quitting my job and "retiring." Unfortunately, the town has poor school system, do 3yo DD would have to go private.

Already installed a septic, gravel driveway and electricity. All I need is a well, single wide, some stained tank tops and a supply of pabst blue ribbon!
__________________
Bimmerbill is offline   Reply With Quote
Old 06-25-2009, 11:01 AM   #37
Thinks s/he gets paid by the post
 
Join Date: Dec 2007
Posts: 4,764
Quote:
Originally Posted by FUEGO View Post
According to real estate agents, any house is affordable.

Oh don't worry you will get a raise. Houses never go down! Oh don't throw away your money renting. Oh equity is where it is at!
__________________

__________________
Notmuchlonger is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Washington Post Article: "An Unsavory Slice of Subprime" jazz4cash FIRE and Money 6 10-22-2007 12:57 PM
"Buy & Hold" Asset Allocation article ladelfina FIRE and Money 7 06-09-2007 01:25 PM
Great article "Ten Reasons You Aren't Rich" Surfdaddy FIRE and Money 5 03-24-2007 01:19 AM
"Many Plan to Keep Working Into Retirement" article wildcat Other topics 6 08-17-2005 07:49 PM
ER article:  "American Fairy Tale" malakito Other topics 45 08-16-2004 09:20 PM

 

 
All times are GMT -6. The time now is 01:07 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.