I don't understand how so many people can afford houses

amother

Chartreuse

Sun, Apr 30 2017, 7:54 pm

We had a budget of abt 500k. We are being told it's not enough for anything that isn't going to be really small. It's so much money!! My husband is a professional and has a decent job and I work as well but it's just not enough for a normal house. How does everyone do it? Do so many people really have so much money? I'm so sad. We are working so hard and the houses we are being told are in our price range are like glorified apartments not houses. I grew up in a tiny house and it was really hard.

Boca00

Sun, Apr 30 2017, 8:00 pm

Good luck finding something! Sometimes people can buy foreclosed homes for cheap and flip them, or move somewhere thats not in the center of town.
500K sounds very reasonable for a nice house, but of course that depends where you live. From what I've heard, you can get a mansion in Cleveland or Toms River for that price.

amother

Orange

Sun, Apr 30 2017, 8:03 pm

Ppl buy far out
Some have a cosigner
Rent out part of a multiple family house and use income to qualify
Get gifts or loans toward downpayment
Buy short sales or foreclosures

Lots of ways. Don't know where u live but as someone in the business this is what I see....

amother

Hotpink

Sun, Apr 30 2017, 8:03 pm

amother wrote:

I will tell you the answer.....The overwhelming majority of young couples who buy houses for lets say 800k+ are getting help from family. Period. That's the answer.

Of course there are other circumstances that would allow it such as the couple makes a huge salary, they got married late so they saved money, inherited a big yerushah, or they hit the powerball lottery jackpot. Otherwise, it probably came from wealthy parents/grandparents.

amother

Oak

Sun, Apr 30 2017, 8:05 pm

mommy3b2c wrote:

In Brooklyn it's like that, but not in other places.

Plenty of other places are like that. Plenty of places are even worse.

OP, I don't know how people do it. We just bought a house in the low $600's and we have put well over $100,000 into fixing it up. It's crazy to me to think I have a house now that is 3/4 of a million dollars. That's so much money. I feel like for that money we should have a mc-mansion but it's really just a very simple 4 bedroom 3 bath home. No soaring ceilings, no grand staircase, tiny, tiny lot. And now we are house poor.

mommy3b2c

Sun, Apr 30 2017, 8:22 pm

amother wrote:

Can you name the places? (Besides la)

amother

Babypink

Sun, Apr 30 2017, 8:23 pm

amother wrote:

Plenty of decent size houses in the general Monsey area (Airmont, New Hempstead, Chestnut Ridge etc) are going for 500k or less. Not sure where you are looking.

amother

Puce

Sun, Apr 30 2017, 8:30 pm

We just bought a beautiful house for 450 in monsey (couldve bought cheaper, but we wanted a certain neighborhood). Its 4 bedroom, 3 bath, around 30 years old. Vaulted ceilings make it feel more spacious-we love it, tho its no mansion its definitely perfect for us, with room to expand if we need in the future. Nearly an acre property, in a great, frum location.

No help from family. Both of us grew up on the poor side. DH was in kolel for the first 5 years. We scrimped and saved and did anything we could for money. Used grocery bags instead of store bought garbage bags. I set my own shaitel (no it didnt look fabulous but it was my tradeoff), did my own eyebrows and nails, no waxing etc. Rarely cooked meat. Often had extremely simple suppers such as sandwiches, cereal , omelettes. All for the purpose of buying a house. Drove two VERY junky old cars, only bought new clothes for ourselves if we had to, our kids had mostly hand me downs. Etc etc etc.

And it paid off-we BH bought our house after being married for about 6 years, with one decent income and no help from parents. BH we got so used to saving mode that we are not house poor (didnt put anything into the house in the beginning) and now are slowly putting money in to the house.

It is possible.

amother

Honeydew

Sun, Apr 30 2017, 8:43 pm

Do research on first time buyer programs and move to Jackson..

You can get a beautiful ranch with a pool on an acre and a half there.

Or you can stay in Brooklyn for a shack and 2 inches of grass...

amother

Oak

Sun, Apr 30 2017, 8:46 pm

mommy3b2c wrote:

Can you name the places? (Besides la)

I live in FL.... the specific communities I have in mind: Miami Beach, Surfside/ Bal Harbour, Boca Raton... Hollywood even has become expensive. NMB, which is a really dumpy, run down place even is expensive. I don't know if you can find anything there much under $500 that isn't a gut job anymore.

amother

Green

Sun, Apr 30 2017, 8:50 pm

amother wrote:

There is no shame in getting financial help from family.
Bh , I bought my house when I was 29, with help from non wealthy but willing to help parents. I am very proud of it.

amother

Hotpink

Sun, Apr 30 2017, 9:05 pm

amother wrote:

There is no shame in getting financial help from family.
Bh , I bought my house when I was 29, with help from non wealthy but willing to help parents. I am very proud of it.

Definitely agree- no shame in getting help from family. I sure did. And your right, it's not necessarily "wealthy" family. My parents gave us 50k and my in laws gave a little less, we added our wedding money and that was our down payment. I should have said most people get "family" help, not "wealthy family" help.

amother

Ecru

Sun, Apr 30 2017, 9:11 pm

It sounds like you're buying your first home. If that's the case, you don't have to think of it as your forever home. Buy what you can afford, and if that's something small, work towards building additional savings so you can trade up at some point down the road. We bought something lovely that is far from my dream home. The plan was not to stay in it forever, and I'm very grateful to have had it over the past several years.

amother

Indigo

Sun, Apr 30 2017, 9:25 pm

It all boils down to location, location, location.
I rather live in a small dump in a very desirable neighborhood,
Than in a palace in a run down neighborhood.

IMO, I'll be happier in a much smaller home that will hold its value because of the neighborhood its in.