5 years ago i could have jumped into a nice 100000 dollar house. now that same house is 150000. Im kickin myself for not buying then, and now im throwing my money away in rent because I cannot afford anything decent.
2006-06-21 07:08:40 · 8 answers · asked by mastersac 1 in Business & Finance ➔ Renting & Real Estate
The cost of living in Indiana, where I live, is very low. You can buy a newly built big house with a garage and all the appliances for maybe a little over 100,000 if that, at $650/a month, people pay that alone a month for an apartment. There are SO many breaks for first time home buyers. I live in an apartment myself, I want a house soon though.
2006-06-21 07:24:04 · answer #1 · answered by sgrjackson1 5 · 0⤊ 0⤋
They don't. Not outright, anyway.
Most Home buyers I know have sold their old house during the drop in mortgage rates, and made a profit, usually 100%, from it, because the home's value increased either over time, or they got in right when the housing prices started going up. Then, they upgraded to a house going for twice as much without spending anything, or spending very little. The purchase of all these higher-priced homes raised the market prices, and now first -time homebuyers are screwed. It's worse than the stock market. I can't afford one either!
2006-06-21 14:18:30 · answer #2 · answered by hoot 2 · 0⤊ 0⤋
The main reason people can afford houses today is because they bought back then. Those of you who waited are struggling now. Owning is better than renting, and you now know why.
The other reason is because money is still free and easy, and because of the low interest rates. As rates rise, and lending standards tighten, you'll find that people can't afford nearly all of what they can today. You'll find a lot of houses in foreclosure, and falling prices probably. Who knows what the future will hold. But renting is costly. Especially if you can get a good house with stable income.
2006-06-21 14:14:37 · answer #3 · answered by Anonymous · 0⤊ 0⤋
It's difficult, but you should make a way to purchase a home because paying rent is basically giving money away. You should be sure to have your mortgage shopped for different lenders to get the best deal for you. There are programs for 1st time homebuyers, don't get discouraged. Good Luck.
2006-06-21 14:13:38 · answer #4 · answered by Cat 5 · 0⤊ 0⤋
Are you sure you can't afford anything? You should consult with a mortgage planner that can help you determine if there are programs out there that will suit your needs.
Annual property appreciation has outpaced your annual increase in income I would presume, but that isn't a show stopper.
2006-06-21 14:22:35 · answer #5 · answered by ReggieWjr1 4 · 0⤊ 0⤋
That's only 8.5% annual appreciation which isn't too high. In fact it's exactly what the stock market has returned annually going back to 1923.
Find a way to buy something now. That appreciation, given your price point, isn't going to stop.
2006-06-21 14:13:36 · answer #6 · answered by Oh Boy! 5 · 0⤊ 0⤋
Interest rates go down....prices go up because more people can afford the houses
Interest rates go up....prices level or go down because people find it hard to afford a new loan.
Think of 1985 interest rates
Think of 2005 interest rates
Big difference.
2006-06-22 00:37:33 · answer #7 · answered by Jessica 2 · 0⤊ 0⤋
in so cal you are looking at a million dollars for a decent house. for $650,000 you can get fixer in a terrible neighborhood.
i bought my house in 2000 for $350,000 and i could easily sell today for about 1.2 million.
so the answer to your question is.....people are just in more debt than ever....
2006-06-21 14:14:22 · answer #8 · answered by dik 3 · 0⤊ 0⤋