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FinanceDude · 06-23-2009, 08:54 AM

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.........

FinanceDude · 06-23-2009, 08:58 AM

Quote:

Originally Posted by Want2retire

... 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........

FUEGO · 06-23-2009, 09:31 AM

Quote:

Originally Posted by FinanceDude

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.

Moemg · 06-23-2009, 10:08 AM

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.com®

FUEGO · 06-23-2009, 11:48 AM

Quote:

Originally Posted by Moemg

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.com®

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).

ziggy29 · 06-23-2009, 11:58 AM

Quote:

Originally Posted by Moemg

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.

freebird5825 · 06-23-2009, 12:07 PM

Made me look...
Housing and Transportation Affordability Index

Data is incomplete nationwide, but there are enough locations to take a look at.

Moemg · 06-23-2009, 12:15 PM

Quote:

Originally Posted by ziggy29

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 .

clifp · 06-23-2009, 02:31 PM

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.

Nords · 06-23-2009, 11:47 PM

Quote:

Originally Posted by clifp

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!

Bimmerbill · 06-25-2009, 06:25 AM

[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.

FinanceDude · 06-25-2009, 08:08 AM

[quote=Bimmerbill;829554]

Quote:

Originally Posted by Moemg

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"........

freebird5825 · 06-25-2009, 08:14 AM

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

FUEGO · 06-25-2009, 08:14 AM

Quote:

Originally Posted by FinanceDude

In my area, any house under $300,000 is considered "affordable"........

According to real estate agents, any house is affordable.

unclemick · 06-25-2009, 08:19 AM

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.

Bimmerbill · 06-25-2009, 09:27 AM

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!