Trying to save up 20% was the biggest mistake of my home buying experience.
My whole fucking life my parents insisted that you had to have 20% down, so that’s what I aimed for. Both my siblings just YOLOed and bought houses between 5-10% down, but I had a better paying job, so continued to save. As I saved, the cost of housing out grew my rate of savings.
When I finally did get a mortgage I only put 15% down and it was at that point I realized that the only thing the 20% down would do for me was save me something like .75% for the first 5-8 years. That is still a lot of money, but compared to just buying a house at $175,000 10 years ago and selling it for double when I ended up moving anyway–it’s nothing.
The whole system is fucked. There’s no reason only those making 6 figures or more should be the only ones with the privilege of trying to own the place you live someday. There’s no reason a company should own a place to live. There’s no reason minimum wage shouldn’t cover a reasonable lifestyle for a family. There’s no reason housing in general shouldn’t be available to everyone.
Pre covid, I was pre approved for a home. I had lied and told them I had $3K for a down payment.
I couldn’t save three grand. Rent was 40% my income, as was childcare. I made $20/hr in a “grown up” job, the type of work my uncles and aunts and parents bought houses with.
The gorgeous $167K dollar house (2016) who’s only down side was it was 45mins from work, … is now worth nearly $600K. I’m jealous of whoever ended up buying it that year.
Would have been nice to own, but a bitch to pay property tax on.
That’s the dagger in the back for gentrification. You live in an affordable area. Then someone builds a mega-plex next door and the municipal tax authority says your bungalow is the same value as a McMansion in the 'burbs.
Nobody will actually buy your house from you for $600k. They’ll buy it for maybe $250k if you’re lucky. Or they’ll wait… knowing the 3x tax price will put you into foreclosure with the next market downturn.
Andrew Cuomo bragged about renting for $96k/year
You don’t need a 20% down payment to rent a home. That’s the big hurdle, as housing prices have ballooned
Trying to save up 20% was the biggest mistake of my home buying experience.
My whole fucking life my parents insisted that you had to have 20% down, so that’s what I aimed for. Both my siblings just YOLOed and bought houses between 5-10% down, but I had a better paying job, so continued to save. As I saved, the cost of housing out grew my rate of savings.
When I finally did get a mortgage I only put 15% down and it was at that point I realized that the only thing the 20% down would do for me was save me something like .75% for the first 5-8 years. That is still a lot of money, but compared to just buying a house at $175,000 10 years ago and selling it for double when I ended up moving anyway–it’s nothing.
The whole system is fucked. There’s no reason only those making 6 figures or more should be the only ones with the privilege of trying to own the place you live someday. There’s no reason a company should own a place to live. There’s no reason minimum wage shouldn’t cover a reasonable lifestyle for a family. There’s no reason housing in general shouldn’t be available to everyone.
I had to put 30% down for a condo. It just depends on the bank and what you’re buying
Pre covid, I was pre approved for a home. I had lied and told them I had $3K for a down payment.
I couldn’t save three grand. Rent was 40% my income, as was childcare. I made $20/hr in a “grown up” job, the type of work my uncles and aunts and parents bought houses with.
The gorgeous $167K dollar house (2016) who’s only down side was it was 45mins from work, … is now worth nearly $600K. I’m jealous of whoever ended up buying it that year.
Would have been nice to own, but a bitch to pay property tax on.
That’s the dagger in the back for gentrification. You live in an affordable area. Then someone builds a mega-plex next door and the municipal tax authority says your bungalow is the same value as a McMansion in the 'burbs.
Nobody will actually buy your house from you for $600k. They’ll buy it for maybe $250k if you’re lucky. Or they’ll wait… knowing the 3x tax price will put you into foreclosure with the next market downturn.
Yeah, my mortgage has increased nearly $200/m in the last 4 years from rising taxes on my house.
And that is after having already paid extra to help bring down the balance. The taxes ate the extra and then some.