Buy dirt.... they aren't making it anymore....
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Real estate going crazy.
- Thread starter james357
- Start date
I read on here a couple years ago about housing prices getting out of control in metro Atlanta. Figured it was because so many people are moving to that area. Now, it seems the entire country is facing crazy housing prices. Artificially low interest rates, high material costs, supply chain problems, low supply and high demand . . . There might be a lot of people upside down on these newer mortgages in a couple years. We'll see.
One of the reasons I moved to GA is the low cost of housing compared to the Northeast, and that's still kind of true.
When I left Mass in 1997 every house on the street I grew up on was going for almost a million, and that was a very normal, suburban neighborhood in a town with a good school system and an easy commute to Boston. I bought my first house in Paulding in '98 for $130K and thought I was in heaven.
I just saw the house I grew up in, which we sold for $400K in the late 80s after my Mom had a stroke, is going for $1.2 million according to Zillow. My folks paid $20K for it in the 50's. I'm not sure how anyone who makes less than $200K a year can own a house in places like that anymore.
Still, a couple of working folks with decent jobs can still probably afford a house in GA. At least until we start seeing double-digit interest on mortgages.
It will... Sort of.
I read the other day that the American Assoc. or Relators estimated that 22% of all the home sales out there are for investment.
It won't crash like 2008, since that was all about writing mortgages (read 'The Big Short' if you get a chance) to turn into CDOs, but it'll at least dip a bit then level off.
Probably the best bet right now is to buy some empty land, then wait a few years and build when the market has cooled down and builders are looking for jobs again.
Unrelated to buying yeah, but I just took a peek at the rental market for apartments in my area. For twice the cost of my mortgage you get half the space. How can these renters afford to live like this?
Yep, then if we crash and prices ever dip you have to protest to get them back down. I personally think the oblivious consumers and corrupt government will erase the American dream. Working people are not going to afford an average home. People here are paying 2K in rent. That blows my mind.
Because they are taking advantage of the market, getting big bucks for their homes, and renting until they find something or for the market to adjust. A buddy runs a moving business and he says most of their moves right now are to storage facilities.
I bought my first house in 1975. The payment including taxes, insurance and PMI was $161 a month. I had to sell my brand new Camaro to qualify for the loan. $161 was 25% of my gross pay. Depending on where you live and stats you look at the medium average income or a family in Georgia is between $55 to $75K. If you take the middle and say the average $60K then a mortgage payment at 30% of gross is $1500. That will afford you a mortgage of a little less than $300K. Sure, you will not be living in Alpharetta or Brookhaven, but most of us didn't start there either. Homeownership is still obtainable. They kids need to stay out of Starbucks, save a little money, pay their bills on time and be a little flexible. As a landlord for 20 plus years, I'm amazed at the families that have 2 car payments, collections and decent income. With a little financial discipline they could own a home but never will. They pay $1600 a month rent when they could buy the same house for $1200. Rent to own furniture, buy here, pay here car lots and worthless college degrees are part of the ball and chain that destroy their financial freedom. Most will not even spend $150 a year for renters insurance and then cry when their treasures are destroyed in a fire or flood. 50% or so rent and they will always will.
I don't know what that break down is per age category but it doesn't look like Generation Z is doing too bad
