how can a young couple afford to buy a home these days....

[Momoftwo]

Speaking of qualifying for, both our homes ended up closing on the same day so for like 4 hours we owned over $1million in real estate and the mortgage co had qualified us with both because our builder (and most others here due to demand) required a non contingent offer. So, we ended up being qualified with almost 45% of our incomes dedicated to both mortgages, because we have absolutely fabulous credit from owning before and paying all our bills on time. We used our equity line to write the down payment on the new house and put our old one on the market four months before we closed. This area has a great housing market and we got a contract in 60 days, but the people buying from us had a really crappy mortgage co that kept putting off the closing so we ended up closing the same day instead of 5 days apart. We now pay 25% of our incomes against our mortgage. Yes, it took a while to build up to, but unlike a lot of young couples I know today, no one gave us a penny to buy. It''s always been difficult for a young couple to buy, but don''t believe it''s harder now because houses cost more, because incomes are a lot higher for college graduates than they used to be. When my DH and I finished school, college graduates earned a smaller percentage more than hs graduates, than they do now. For example, the US govt used to hire college graduates at the GS-5 level, most agencies now hire college grads at the GS-8-9 level. This is due to competition from private companies and income levels are proportionately higher than they used to be. When we finished school, no one we knew qualified to buy anything. Now, a great majority qualify for townhouses and with two incomes, single family homes. Loans are so much easier to get for everything now. My DH at 21 had to have his father cosign his first visa card and he had a full time job with the Fed govt. My DS who is 21, and only works summers has had a credit card that we didnt'' sign for, for 2 years. He also will graduate in 1 1/2 years and be able to buy a condo when he starts work, which he plans to do. It is not harder today than it was 20 years ago. It''s actually a lot easier. When we bought our first home, interest rates were 15 1/2%, and had been 18%. I think the perception that it''s harder to buy now comes from the fact that young couples think they have to have everything at one time. New car, new home, vacations to expensive places, new clothes, etc whenever they want them. This is because most of them have seen their parents achieve this and don''t remember, because they were too young, the struggle their parents had when they were young to get to that. I''ve heard younger people say they''re entitled to it. Why? You have to earn it and work towards it.

 

[fire&ice]

Date: 2/1/2005 6:33

9 AM
Author: Momoftwo
I think the perception that it''s harder to buy now comes from the fact that young couples think they have to have everything at one time. New car, new home, vacations to expensive places, new clothes, etc whenever they want them. This is because most of them have seen their parents achieve this and don''t remember, because they were too young, the struggle their parents had when they were young to get to that. I''ve heard younger people say they''re entitled to it. Why? You have to earn it and work towards it.

I am so glad that you were a perfect responsible 20 year old.

That said, I have much higher respect for young people than you do. Instant gratification *is* an attribute to *any* young generation - be it now or 20 years ago. As Lop said, I also wore my paycheck on my back. Only when looking at reality and long term goals does that change and part of the maturity process.

And, I know plenty of over 40 years olds who have pissed away their money w/ instant gratification and a couple of bankrupcies behind them. This is a personality trait - not a trait assigned to this particular generation. Quite frankly, they (the 40 year olds) said the same thing about our generation 20 years ago.

You keep beating the drum about how these kids don''t want to sacrifice anything. I''m not onboard with your over generalizations & simplification of economics. The world is far more complex.

 

[fire&ice]

Date: 2/1/2005 1:30:23 AM
Author: Kamuelamom

The only exception where we ran up our bills was during the construction when we were charging a good part of the materials (hey, I had a mileage card) ,

I see folks taking out huge loans for construction then taking a luxury vacation or buying a luxury car and cannot finish their house and subs are looking for them.

Sad but I''ve seen this happen.

Simple rule we keep, we live within our means. Sometimes even beneath it. And then when we treat ourselves it feels like we really earned it.

Hey, your a "point pig" like me! Charge it for points! Right now, I''ve got $50.00 & a $25.00 gift card to Best Buys in my wallet from redemed points. That''s just my current reward! Yep, miles, gifts, free stuff & huge car rebates! I LOVE free stuff. Costs us nothing because we pay the card off every month! It''s like a game.

But, taking out construction loans and going on vacation?

Wow, the banks are being irresponsible & not doing their job. Draws should be carefully monitored. We couldn''t get the next draw w/o a pile full of lean waivers that the contractors/suppliers have been paid up to date. And, those people who don''t pay their subs are in a heap of trouble in the end. They can file a lien on the building and their loan will never go permanent. In other words, the bank will own the property. If you can control the spending & the banks are willing to give you a construction loan, you really can make money off of the deal in terms of cash. Our house appraised for more than what we spent. We were cut a substantial check for the rest. It was great seed money for future projects.

So, when''s your next project!

 

[fire&ice]

Date: 2/1/2005 12

8:17 AM
Author: lop

Date: 1/31/2005 10:19:33 PM
Author: aljdewey

This is SO true. Rich and I lucked out BIG time in being able to get into a new house. We didn''t want an enormous house since it will only be the two of us, but these days, all they are building is 2400-2500 sq MINIMUM.

It happened that our piece of land backs to conservation, and by the time the minimum setback requirements were met on the side and in the back, the plot was only big enough to accommodate about 1800 s.f.....which was perfect for us. Had it not been for that, this house would have been bigger....and more expensive, and we wouldn''t be here.

I cannot imagine how tough it would be if we were looking to go even smaller.....we''d have had to go condo, most likely.

Al, my guess is that you guys will spread out to enjoy all 1800 sq feet of your beautiful new house.

It just works that way. You say ''We don''t need a lot'' ''we''re just 2 people'', and then you start with the ok -- a guest room would be nice, and then an office, and then room for hobbies, and then more stuff and more guests, and maybe some excersize room etc..... Stuff expands to match the space -- however much there is.

You know, at the end of the day, I prefer our 1600 sq. ft all on one level home much better. It''s so much more managable w/o the space to expand which translates directly into clutter for us.

Yeah, Al - It''s a simple matter of money. Why would a developer build a 1500 ft house when they can make more money off of a 2500 s.f. home? Land is too valuable to support a lower price (translate smaller) home.

 

[cflutist]

Date: 2/1/2005 1:30:23 AM
Author: Kamuelamom
Simple rule we keep, we live within our means. Sometimes even beneath it. And then when we treat ourselves it feels like we really earned it.

Kmom, websailor and I do the same thing. If you have ever read the Millionaire Next Door, they advocate the same lifestyle as a means of accumulating wealth.

I may not have 40 bras, nor carry an LV purse, nor use fancy cosmetics, and websailor does not drive a fancy car (he has a 1996 Tacoma truck) but we do have 1.4 Million in real estate between us, and more than 1.2 Million in equity because my mortagage balance is less than $180K. My goal is to have my home paid for in 5 years which is why I have been paying an addtional $3K in principal every month. Just think of how many purses, clothes, plasma TVs that will buy. And yes, we could go out and buy a $100K Mercedes (for cash no less), but I am perfectly happy driving my Toyota Camry around.

Like DF said, if you plan to stay in your home and if you can afford it, it does make sense to pay off your mortgage because you may get only $300 tax benefit if at that for every $1000 you pay in interest. As far as being able to itemize, we can itemize with the amount of property taxes we pay alone, and then if you add California State Income tax you have plenty of deductions without having to pay mortgage interest. And on top of that, when you get into certain income brackets, you get hit with AMT, and you lose a portion of your deductions anyway.

Bottom line, different strokes for different folks. Life is too short to worry about it. Enjoy what you do have.

 

[sevens one]

Date: 2/1/2005 1:17:35 PM
Author: cflutist

Date: 2/1/2005 1:30:23 AM
Author: Kamuelamom
Simple rule we keep, we live within our means. Sometimes even beneath it. And then when we treat ourselves it feels like we really earned it.

. Life is too short to worry about it. Enjoy what you do have.

Amen to that CF

 

[Kamuelamom]

Date: 2/1/2005 10:59

0 AM
Author: fire&ice
Hey, your a 'point pig' like me! Charge it for points! Right now, I've got $50.00 & a $25.00 gift card to Best Buys in my wallet from redemed points. That's just my current reward! Yep, miles, gifts, free stuff & huge car rebates! I LOVE free stuff. Costs us nothing because we pay the card off every month! It's like a game.

But, taking out construction loans and going on vacation?

Wow, the banks are being irresponsible & not doing their job. Draws should be carefully monitored. We couldn't get the next draw w/o a pile full of lean waivers that the contractors/suppliers have been paid up to date. And, those people who don't pay their subs are in a heap of trouble in the end. They can file a lien on the building and their loan will never go permanent. In other words, the bank will own the property. If you can control the spending & the banks are willing to give you a construction loan, you really can make money off of the deal in terms of cash. Our house appraised for more than what we spent. We were cut a substantial check for the rest. It was great seed money for future projects.

So, when's your next project!

Hey, who you callin' pig?

As far as the next project, F&I, I'm chompin at the bit since this one was mission accomplished, but too bad the market is such that it is not affordable for us to purchase an additional piece of property just yet. The next project should be easy as we hope for it to be a spec home. And if it turns out that it's not in the cards for us (as in prices continue to soar) then we'll have to seek other ways to invest.

Momof2, I appreciate your practical outlook and do agree with much of it. The bottom line is though, that it is true, not all young people can be lumped into one category though I don't think that is what you're implying. I've seen those who work their a$$e$ off and never get ahead, and like you, those who think they're somehow entitled to it, and like right now! I also think society has a lot to do with wanting the biggest, the best, and fast! Look at how meals are served and supersized in fast food places these days. Fast everything. And bigger or biggest please. Yet I've met a few who really have their heads on straight and have self discipline. Two things I did not have until I matured. I'm mature now.

But I was young and foolish once too, and thank God I didn't have the resources because I would have been a super duper irresponsible person at mangaing big money. It took me a long time and now realize that we must take care of what we have. That only sunk in once I began to have children. Maturity happens.

Personally as long as I do my share to raise my children with our values of hard work and honesty supporting them, I can only hope that they use those values to become responsible adults and citizens of the world, and maybe acquire a house along the way.

 

[Kamuelamom]

Date: 2/1/2005 10:59

0 AM
Author: fire&ice
But, taking out construction loans and going on vacation?

Wow, the banks are being irresponsible & not doing their job. Draws should be carefully monitored. We couldn''t get the next draw w/o a pile full of lean waivers that the contractors/suppliers have been paid up to date. And, those people who don''t pay their subs are in a heap of trouble in the end. They can file a lien on the building and their loan will never go permanent. In other words, the bank will own the property. If you can control the spending & the banks are willing to give you a construction loan, you really can make money off of the deal in terms of cash. Our house appraised for more than what we spent. We were cut a substantial check for the rest. It was great seed money for future projects.

So, when''s your next project!

F&I this is not they typical situation, banks are usually more careful, but I''ve seen it happen. Everybody in line after the last person to get paid is screwed. What the borrowers don''t realize is that they are ruining them selves for instant gratification. A bad credit record will follow you, and in a small place like this, your reputation will also be ruined.

 

[Nachoman]

Date: 2/1/2005 10:35:17 AM
Author: fire&ice
You keep beating the drum about how these kids don''t want to sacrifice anything. I''m not onboard with your over generalizations & simplification of economics. The world is far more complex.

I''d have to agree with you, I''ve found young people my age are actually more in tune with good financial practices than folks my parent''s age. A lot of my peers (mid twenties, a couple years out of college or grad school) realize that the way to become financially secure is to invest (either real estate or another form). Face it, people want to be rich. People don''t want to work for the rest of their life. It doesn''t take a rocket scientist to realize that to become rich, you need to start making smart decisions while you are young. This includes maxing out 401ks and buying long term investments. Especially with the housing boom here in San Diego, just about all my friends own properties. Some (like myself) own 2 or more. I get the feeling that some posters feel you need to sacrifice your happiness and live in a ratty old ''starter'' home and really ''struggle'' before you are entitled to reap the rewards. While my friends and I don''t buy new Beemers every year (which I guess can be considered a ''sacrifice''), we certainly aren''t struggling. I''d say we all live a very comfortable middle class lifestyle, with the expectation that our investments will grow and our lifestyle can shift to an upper middle/retire early lifestyle.

Also just in general, it''s an interesting contrast between the ''conservative'' investors and the ''more risky'' investors. Some folks here are ''one home'' folks, they buy one home and just pay it off and live comfortably in that. There are other folks who are willing to take more risks to reap more rewards, like buying multiple properties. Seems like the ''conservative'' folks favor spending extra money to pay off their single mortgage. While the ''riskier'' folks favor using that money or home equity to purchase other investments. Not saying there''s a wrong or right way to approach this, it all depends on what your ultimate goal is and how much risk you are willing to live with.

 

[Momoftwo]

F&I, I also know 40 year olds that piss away money. I know 60 year olds that do too. But, I know more 20 and 30 year olds that do. We don't. Nor do most of the people we know. That is not the point. Nowhere did I say ALL young people. I am speaking from surveys and statistics about the 20 and 30 something generation. Yes we were very responsible 22 and 24 year olds. Having put ourselves through school and being given nothing made us appreciate everything we have. My children are 18 and 21 and I see their generation with a lot of kids who dont' want to work for anything since they've been handed a lot. Mine don't expect it to be given to them. I am speaking from experience with some that do. Why should my responsibility be looked down on just because some people dont' know how to be responsible? I'm not going to ever apoligize for making good, educated financial choices.
BTW, exaggerate much? Beating the drum? I'm sorry if you dont' like my opinion. I didnt beat you up over yours. I also didn't ask you to get onboard with me.


This post wasn't about you, so calm down.

People who take risks financially are more likely to make more. My point wasn't about ratty starter homes,but about the idea that someone think they have to start with the biggest, nicest home. You buy what you can afford. Not everyone does. I happen to know a couple that almost lost their home when she got pregnant and ended up on bed rest for 5 months. Unexpected loss of income and they couldn't swing it on one. That wasn't risk, that was lack of planning for unforseen events. Odds are one might lose their incomes, but not likely both at the same time.

 

[aljdewey]

Date: 2/1/2005 12

8:17 AM
Author: lop
Al, my guess is that you guys will spread out to enjoy all 1800 sq feet of your beautiful new house.

It just works that way. You say ''We don''t need a lot'' ''we''re just 2 people'', and then you start with the ok -- a guest room would be nice, and then an office, and then room for hobbies, and then more stuff and more guests, and maybe some excersize room etc..... Stuff expands to match the space -- however much there is.

Hehehe - that''s what I hear, and that''s why we went with 1800. It''s a 3-BR house. One is the master BR, one is a guest room, and the last one is the home office. Most important, all the rooms are very generously sized. The guest room closet is also the storage place for linens, and the 2nd tv is set up in there, so we get use out of that room for more than just a guest room.

Another nice feature - only one bathroom upstairs but it''s HUGE. Most new homes have a small master suite bathroom and another narrow main hall bathroom for the other two bedrooms. For us, that would have been a waste. Instead, ours is a double-sized (12 x 9) bathroom. One door connects to our bedroom; the other to the main hall.

If we ever did outgrow a big, we have a full walk-up attic (read full, regular staircase) and it would be easy to convert one side to a game room and still have way more storage than we''ll ever need. That feature will help us on resale years from now for families who may desire a playroom, etc.

Now the trick is to keep things from multiplying!

Actually, hubby and I are both "weeders".....we readily throw things out that we don''t use, so hopefully, it will retain its spacious feel for a long time.

 

[fire&ice]

Date: 2/1/2005 5:41:16 PM
Author: Momoftwo
BTW, exaggerate much? Beating the drum? I''m sorry if you dont'' like my opinion. I didnt beat you up over yours. I also didn''t ask you to get onboard with me.


This post wasn''t about you, so calm down.

O.k. beating the drum - maybe I should call it your mantra. It''s a prevailing theme about the instant gratification & eintitlement of young people in a large part of all your posts.

 

[fire&ice]

Date: 2/1/2005 5:38:24 PM
Author: Nachoman

Also just in general, it''s an interesting contrast between the ''conservative'' investors and the ''more risky'' investors. Some folks here are ''one home'' folks, they buy one home and just pay it off and live comfortably in that. There are other folks who are willing to take more risks to reap more rewards, like buying multiple properties. Seems like the ''conservative'' folks favor spending extra money to pay off their single mortgage. While the ''riskier'' folks favor using that money or home equity to purchase other investments. Not saying there''s a wrong or right way to approach this, it all depends on what your ultimate goal is and how much risk you are willing to live with.

I don''t know. I''m about the most conservative investor. We do invest in multiple properties - commercial & res. For us, the freed up cash a mortgage provides coupled with historically low interest rates that a good chunk can be deducted on our personal deducs, makes us more money. Commercial loans (including a third res. property) are at a higher interest rate than what is offered for home mortgage. With us, it''s opportunity costs *not* having a mortgage that w/ tax deducs ends up being even cheaper. The cash freed up makes more money. But, we (personally) wouldn''t bite off more than we could chew. Sometimes that''s a downfall & sometimes a savings grace.

I think it is rational to pay off your mortgage at some point. When that point is depends on many many factors. Maybe our finances are more complicated; but, the end isn''t just .30/$1.00 reward in the form of personal deducts. It''s a trickle down effect. Everyone should look at their own situation whether a mortgage is prudent.

All that being said, one should do what one is comfortable with. But, I don''t think young people should be scared or turned off by a mortgage. I don''t think a mortgage is foolish. It''s about one of the best *long* term investments. And, really can get the ball rolling financially. I can connect the dots on a great deal of our net worth back to the very first house we bought & renovated - all with someone else''s money - the bank.

Regarding the AMT, that is about the dirtest little secret. Don''t get me started on that. It''s a completely antiquated rip off that has not kept up with inflation. The AMT was a good way of getting people to pony up there full tax boat when they were taking ridiculous personal deductions. What they didn''t count on was the inflation of homes and the subsequent mortgage interest deductions associated with it. You find this tax really hitting hard in the house boom areas - CA, NY, CN, etc. It was put in place to prevent the ol'' Dorito''s commercial guy - when audited he is asked "So you made no money yet you have 65k in deductions". But, what has happened is someone can have a legitimate enormous mortgage interest that pushes them in the very catagory they intially were trying to catch. All innocently. They cap personal deductions at a certain income level. While a pain, it''s far more fair than this AMT.

 

[fire&ice]

Now the trick is to keep things from multiplying!

Actually, hubby and I are both ''weeders''.....we readily throw things out that we don''t use, so hopefully, it will retain its spacious feel for a long time.

I should start a separate thread - Can you give us some pointers. Maybe it''s the inate collector in us both; but, we are the biggest accumulators. Our new dog has come up with our New Year''s Resoltion mantra - I must de-stuff! We bought a shreader. I''m starting with checks from 1991!

I just pitched tax returns from 1984.

Any rules to throw this way to help us with our NY res? Anyone?

 

[Nachoman]

Date: 2/1/2005 5:41:16 PM
Author: Momoftwo

People who take risks financially are more likely to make more. My point wasn''t about ratty starter homes,but about the idea that someone think they have to start with the biggest, nicest home. You buy what you can afford. Not everyone does. I happen to know a couple that almost lost their home when she got pregnant and ended up on bed rest for 5 months. Unexpected loss of income and they couldn''t swing it on one. That wasn''t risk, that was lack of planning for unforseen events. Odds are one might lose their incomes, but not likely both at the same time.

Unexpected loss of income is a risk just like there''s a risk that a big fire could burn down all of your properties. Obivously the more debt you have to your name, the bigger the risk for an unexpected life event to cause hardships. I guess I lump unexpected life events under the ''risk'' category. But like you said, financial planning is key to mitigate those risks. I own two properties, if one of them goes unrented for several months then I start dipping into my cash reserves. Sure it''s a risk since i''m basically throwing money out the window for an uninhabited property, but it''s a risk that is planned for and I have the reserves to weather it without much trouble. Now if both properties get crushed by Godzilla, then I''m probably screwed, but then again all of San Diego would probably be screwed as well.

 

[hoorray]

Date: 2/1/2005 6:23:30 PM
Author: fire&ice

Now the trick is to keep things from multiplying!

Actually, hubby and I are both ''weeders''.....we readily throw things out that we don''t use, so hopefully, it will retain its spacious feel for a long time.

I should start a separate thread - Can you give us some pointers. Maybe it''s the inate collector in us both; but, we are the biggest accumulators. Our new dog has come up with our New Year''s Resoltion mantra - I must de-stuff! We bought a shreader. I''m starting with checks from 1991!

I just pitched tax returns from 1984.

Any rules to throw this way to help us with our NY res? Anyone?

I had to scale a 4200 sq ft house down to a 1400 sq ft townhouse a few years ago. Add to it that with 4200 sq feet, I had never bothered to weed -- just found another spot for stuff as it accumulated. 2 things helped the process. The first was realizing that I can have the memories without haning on to the stuff associated with it. The second was a recommendation from a friend. She said "don''t touch the things you are sorting through -- have somone else handle them". Seems weird but it held true. The minute you try something on again, or start to touch and remember things, the more you begin to think you should keep it. It''s easier to be dispassionate about it from a slight distance.

And, we had to do the majority of the work in 2 weeks. After a while, burnout set it and it all went to the salvation army, friends and family. The bad news is that AMT hit us big time that year, so the deductions were useless. Don''t start me on that topic!

 

[cflutist]

F&I, Lop,

PS members should unite ... lets start a tax revolt against AMT

 

[hoorray]

Date: 2/1/2005 6:59:11 PM
Author: cflutist
F&I, Lop,

PS members should unite ... lets start a tax revolt against AMT

I''m in. It is only going to get worse in the upcoming years.

 

[noobie]

Date: 2/1/2005 7

2:12 PM
Author: lop

Date: 2/1/2005 6:59:11 PM
Author: cflutist
F&I, Lop,

PS members should unite ... lets start a tax revolt against AMT

I''m in. It is only going to get worse in the upcoming years.

Yes, absolutley. That''s why I just accelerate my mortgage pay off. Targeting 6 years for a 30 year mortgage

 

[Dancing Fire]

Date: 2/1/2005 7

5:12 PM
Author: noobie

Date: 2/1/2005 7

2:12 PM
Author: lop

Date: 2/1/2005 6:59:11 PM
Author: cflutist
F&I, Lop,

PS members should unite ... lets start a tax revolt against AMT

I''m in. It is only going to get worse in the upcoming years.

Yes, absolutley. That''s why I just accelerate my mortgage pay off. Targeting 6 years for a 30 year mortgage

noobie
WOW!!! 6 yrs, good for you, it took me 17 yrs to pay off my mortgage.

 

[MelissaSue]

i posted about my sisters $250k house the other day.. but I wanted to show you guys some pictures of it so you can see what you can get for $250K in Buffalo!! I seriously cannot believe some of the prices you guys are talking! Its mind blowing to me!

outside of the house.. see.. its HUGE! 2,751 sq feet. 4 bedroom, 2.5 bath

THe little entertaining room. This decor is from the previous owners.. my sister has MUCH better taste.

Kitchen

Dining Room

This is the living room, but it is actually much larger than it looks in this pic. Its all very open seems really spacious. These don''t even show the upstairs. The master bedroom and bathroom are huge, there are two other fairly good sized bedrooms, And my neice who is four has a walk-in closet the size of my bedroom..(maybe a slight exaggeration). The only room that is a little small is the baby''s room. There is also a downstairs office and a partially finished basement, which is a GIANT play room for the kids.

I totally feel like a real estate agent. lol.

 

[cflutist]

Date: 2/1/2005 8:16:14 PM
Author: MelissaSue
i posted about my sisters $250k house the other day.. but I wanted to show you guys some pictures of it so you can see what you can get for $250K in Buffalo!! I seriously cannot believe some of the prices you guys are talking! Its mind blowing to me!

outside of the house.. see.. its HUGE! 2,751 sq feet. 4 bedroom, 2.5 bath

We are SO jealous. The smallest 50 year old, 1200 sq ft house in my town is $500K. But we don''t have snow in CA

 

[Kamuelamom]

Wow, Melissasue, that''s a great looking house for $250k. Love the inside and the colors of her living room. Sounds like a great value to me seeing what is going for $250k around here. In fact, there''s nothing for under $300k in my area.

 

[Dancing Fire]

this may sound stupid but the housing boom in the pass few yrs is the worst thing that can happen for some people.what do you think is keeping the U.S. economy going in the pass 5 yrs? people are using their equity to purchase big ticket items, using your equity is no free lunch there will be extra payment every month.remember the equity in your home its not real money until you sell. if you keep using it ,all it does is getting yourself into more & more debt.when the housing market bubble burst and it WILL happen then you will owe the bank more money than what your house is worth. so the bottom line is, people think they're buildling up equity but in reality they're building up more debt.

 

[Jennifer5973]

Date: 2/1/2005 8:21:54 PM
Author: cflutist

Date: 2/1/2005 8:16:14 PM
Author: MelissaSue
i posted about my sisters $250k house the other day.. but I wanted to show you guys some pictures of it so you can see what you can get for $250K in Buffalo!! I seriously cannot believe some of the prices you guys are talking! Its mind blowing to me!

outside of the house.. see.. its HUGE! 2,751 sq feet. 4 bedroom, 2.5 bath

We are SO jealous. The smallest 50 year old, 1200 sq ft house in my town is $500K. But we don't have snow in CA

That house here, depending on exactly where it is, would range from $700,000 to $1 million.

Edited to add: and this isn't to say it's any better--it's just close to NYC. The whole thing is just ridiculous

 

[Kamuelamom]

I can't believe what I just saw after coming off the website to MLS sales here. My gosh there are homes in and around my neighborhood (relatively) going for nearly $500k!!!! I want to faint! The same subdivision I just moved from is one that has the smallest lots on it (only 7500 sf) and there is a "brand new" (shottily built I might add) house going for $425k! And lots only in about that size (slightly bigger maybe) going for over what i sold my house for and then some.

A house lot for over $400k in what used to be $250k house and lot just 12 months ago.

I'm off to faint now.

 

[MrsFrk]

Date: 2/1/2005 3:35:36 AM
Author: Dancing Fire
the biggest mistake i see young couple making is as soon as they built up some equity in their home they used the equity to buy big luxury items (car,etc) now they have to carry an extra payment on their back every month.soon or later they will bury themself in so much debt that they will never get out for the rest of their life.sure,i can go out and buy myself a new 100k mercedes tomorrow ( pay with my equity) if i want to ,i''ll be looking good in front of my friends but there''s no point of getting myself into a 100k debt.right now i have 0 tax write off on interest paid and it feel SO good and i don''t give a damn about no tax write off !!!

Very true. We have leveraged our equity into other investments, which have in turn made us money. We have a nice nest egg, when I got to med school in the Fall I will be able to not work and it won''t be a hardship for us. We are comfortable, but we don''t live extravagantly- we drive Hondas and most of my wardrobe is sister-me downs.

(it''s convenient having a fashionista as a baby sister).

 

[MrsFrk]

Date: 2/1/2005 3:56

3 AM
Author: Kamuelamom

Date: 2/1/2005 2:57:18 AM

Author: MrsFrk

KamuelaMom- I just got back from the Big Island, Kamuela is STUNNING. I wanna live there, like yesterday.

Ooooh MrsFrk, glad you liked it!

Where did you go? You can PM me if you prefer.

We stayed in Hilo, but we drove all around. We spent a few days at Hapuna Beach, we went hiking in Volcanoes National Park (being a mere 6 feet away from hot lava is a trip!), snorkeling at Richardson Beach Park (saw 3 enormous sea turtles- so awesome!), toured Parker Ranch, Lyman House and Museum, took a kayak tour of the irrigation flumes in Kohala.

Visited pretty much every waterfall we could get our hands on.

Akaka falls was incredibly impressive.

The entire island is so gorgeous, such an incredible variety of foliage and landscapes. Kamuela was particularly gorgeous, we had dinner at Merriman''s one evening. The little chicken houses crack me up- my husband commented that they were some happy looking chooks. I can''t wait to visit again.

 

[MelissaSue]

Date: 2/1/2005 8:22

8 PM
Author: Kamuelamom
Wow, Melissasue, that''s a great looking house for $250k. Love the inside and the colors of her living room. Sounds like a great value to me seeing what is going for $250k around here. In fact, there''s nothing for under $300k in my area.

K-mom-

I think her house is a great deal, even for around here. I think its because of the age of the neighboorhood (Its 15-20 years old).. new houses this size are going for much more not far away from where she lives. Its funny that you mentioned the colors in the living room though, because that was literally the first thing she changed when she moved in.. That was the previous owners decor. I actually don''t mind the living room, but the problem was the entire HOUSE was pink.. even the kitchen.
Her room is all neutrals.. tan or grey walls.. I cant remember which.. tan leather couch.. white carpet.. I think she had the walls repainted within a week of moving in. (While she was 9 months preggo.. my sisters crazy..)

 

[Kamuelamom]

Ahem, MrsFrk, if you went from Hilo through Kamuela (as in to Merriman''s), and passed the chicken houses, you were literally less than two minutes from where I live.

A little turn off the highway and you''d have been here.

Oh so close...........

I''ve said it before somewhere, that I love this island for it''s geographic diversity, probably the most diverse state, and maybe even *anywhere.* Where else can you go to stand 6'' from hot ooooozing lava, snowboard atop mauna Kea and be on the beach sipping a margarita

or a cold beer

, ALL IN THE SAME DAY!

Glad you liked it here. Next time, do call.