Who can afford to buy these $200,000 homes?

Question

I keep seeing all these expensive homes being built in my town. I don't understand how people can afford to buy them. Driving around town the only jobs available are fast food and retail. Very few places pay more than minimum wage. What is going on?

Answer 1

They are moving from places elsewhere, and bringing their equity cash with them from selling their old homes.

I could buy a $200k home in a heartbeat, and not have much of a mortgage.

Answer 2

Even in your self-described minimum wage city, for every 10-15 minimum wagers, you need 1 to 2 supervisors. Then for every 3-4 supervisors, you probably have a manager or higher. Guaranteed all those jobs pay more than minimum wage. Also, an apprentice at the local plumbing shop may only start at $8 to $10 per hour, but an experienced plumber can certainly make much more. And the top 3 or 4 people at that company can certainly afford a house like the ones you are talking about.

So, you are right, if a person keeps driving around wondering why they can't afford a $200,000 house, they never will. Without a degree in a highly demanded field, no one will hire you for a job making $50-60,000 a year if your last job was at minimum wage. Most jobs like that are earned by working your way up through the company or starting your own company, not by dropping off an application.

Answer 3

Dude!, that is your handle right? Look, most people look at how much things costs and say, I can't afford that. A few people say I can't afford that but I can borrow the money so I look like I can afford that. Lastly, some people look at what something costs, figures out how to earn the money to get it (if they want it) and then executes the plan until they succeed and therefore can afford to buy it.

Part of a good plan would be to get a good education. In American, that option is available to just about everyone that wants it, is willing to work to get it and stays with it until that get the education they need.

Now, where are you at in your plan to get a good education? Still in school? Good, stay there until you reach the goal.

Another part of the plan to be able to afford such a home is to stay clean of drugs, stay out of legal trouble and don't start having babies until AFTER you can support them.

How you doin on that one Dude? If you are clean, staying in school, not getting into legal trouble and are not having babies, then you are well on your way to getting that house.

Then we come to this. When you get the education, go out and get a job. Once you get the job, keep it until something better comes along and use the new job to improve your financial security.

If you have gotten a degree, not started a family, are not a dope head and have gotten and kept a job then by golly, you are almost there.

Lastly, don't abuse credit and don't make stupid financial decisions (like buying new cars and furniture and other stuff with credit). Instead, continue to sacrifice, work hard, save and invest your money and within a few years you can own that house.

Well, Dude, how are you stacking up with this advice? You did ask for advice right? I know it works cuz that's how I got a $200,000.00 house...without a mortgage...and I'm NOT rich...didn't win the lottery and didn't inherit a bunch of money.

Summary: You are having the life you deserve based upon the decisions you have and are now making. It isn't easy, this thing called life, but if you work at it, make good decisions and persist then you can be a success too.

I know you won't pick this as your best answer Dude, and you probably think I am blowing smoke, but I guarantee you this will get you there.

I once heard this from someone "WORK, a sure fire money making scheme". Try it.

Answer 4

If you are in a surrounding area of a major city, then more than likely, the people working in the city are looking to live out of the city. It is cheaper and less congested, as well as being able to afford more for the amount of money.

And with the mortgages out there now days, you would be surprised who is getting the loans for those homes. And knowing what some of the managers and assistant managers of the big chain retail stores make per year, they are also buying the homes. A store manager at a Target Store can make over $150,000 per year (including bonuses). Kinda dispells the ideal of the "poor retail worker", doesn't it??

Answer 5

Most duel income two parent families can. And that's who's buying them.

And these days, jobs are not found in the newspaper. And I haven't seen anyone paying minimum wage.

Perhaps its time for Americans to take a page from the illegal immigrants and be willing to relocate to where the jobs are. Americans are way too geographically immobile these days. Our modern technology keeps us in touch with friends and family all over the world.

And when I relocated to Tennessee from Colorado, I realized I saw my Denver relatives as much now as I did when I lived 40 minutes across town from them.

Mine is a 3/2 with a 2 car garage, five minutes from downtown, and costed substantially less than $200,000.

Answer 6

I don't know about your town, but in mine they are building these houses all over, so the gov, will subsidize the payments for a black to move into a white neighbor hood,their payments are $450,00 per mo, with %500.00 down and the state will pay the %$500.00 down payment, then if they live there for 5 years they can sell and keep any profits my house I built in 1975 I am still paying almost $500,00 per mo, I wanted to give my house to my daughter and buy one of these nicer houses, but, I needed $20,000 down and my payments the lowest was $1270 per mo, and my credit score was 720 some how I think something s wrong with this picture, or am I classified as a 2nd rate citizen now??? I'm white??

Answer 7

Sometimes people can't afford them, and discover that later when the interest rate goes up and the bank takes it back off them, or thay are owned by rich investers who lease them out.
Or maybe they are lucky enough to have a better job. Whatever the reason, it's getting harder and harder to own your own home. Where I live that is the price of an average if not cheap home, in the whole of my state (Australia)

Answer 8

With the combination of near record low interest rates combined with banks who want to make money selling mortgages they will arrange it so people making barely above minimum wage can buy those houses.

They will offer a super low introductory rate and slowly increase interest with time, the more equity the people have in the house the more interest they will pay, until they refi and start all over. It is a form of legal slavery without the chains and surprisingly it is still considered respectable.

Answer 9

The job market is probably a little better than you realize, someone has to own the fast food joint, the retail store, manage the town etc. it's more than likely these folks and some who are bound to defualt by over extending themselves

Answer 10

Those homes are being sold to government workers who have a college degree , a fixed income job security and retirement program that insures they will continue to make the payments .
If you are not involved in the government you are without hope .
You better hope the company you work for has at least 20% of its business with the government . Cleaning ,cooking ,canning ,cutting ,working to build ;sidewalks, road ,schools, government offices , and provide data storage ,analysis , accounting services health care administration services or some how connected to the tit that feeds and houses Americans . .......

It sucks in the money at the rate of 60% almost in taxes on each dollar earned and redistributes it to those who will continue to elect and allow a handful of politicians who are bought and paid for by the corporations which have hijacked and taken control of America .

Think about it for a moment less then 5 thousand people are actually running the government that employs 35,000,000 people . Those tax dollars come from someplace and it sure as hell is not the corporations or government workers .
Those 35,000,000 workers have retirement after 10 years and after 20 almost 80% of there salary for the rest of their lives and we are retiring more and more of them every day .
It is paid for by the only thing that creates anything and that is working Americans . Farmers ,transport drivers ,construction workers ,and factory employees . With jobs leaving this nation more and more of your income is taken by insurance , taxes , interest and the energy companies . They need all the money to perform the great juggling act that goes on .
This nation is bankrupt out of capital devoid of any products to trade except fast food ,sodas , and weapons . We pay others with taxes to build weapons that later are sold to developing nations to defend against there neighbors possible attack . Only trouble is we arm both sides .
We have nothing except war and the hunt for energy to make more weapons .