The rising cost of housing-particularly in frum communities

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daisy

Mon, Jul 11 2005, 10:13 pm

I think this warrants its own topic

chavamom wrote:

It is very interesting to me to see how people that were able to buy houses when they first got married are in a much better financial situation. We have good friends that bought a few years before we did the same type of house as we have - and paid literally 1/2 of what we paid AND they had a substantial down payment due to family money and an apt. that sold in Israel. That difference in mortgage payment added to the fact that the father is a rebbe (they paid no tuition for years) meant that the mother never really *needed* to work. For someone to extrapolate to my situation where we have almost 3x the mortgage payment, $1200/month in tuition bills (as of last year, we are told to expect a 5% increase + have another child starting school) and say 'well, so-and-so manages without working and HER husband is a rebbe' would be just wrong. But let me tell you, people have made comments just like that.

This is so true, and really upsetting. I just cannot believe how the prices of houses have gone up in the past 10 years. We do not have a house yet and we live in a community that is considered "very affordable". I hate to admit it, but it makes me so jealous that just because someone bought a house a few years ago, they can pay half of what we would have to pay - and our house would be that much older. Also, frum people are more limited where they can buy. Everyone knows that the more frum the block, the more overpriced the house.

I know there was an article about this in mishpacha mag this week, so I guess this is a problem everywhere.

Last edited by daisy on Wed, Aug 10 2005, 10:29 pm; edited 1 time in total

chavamom

Mon, Jul 11 2005, 10:28 pm

There is a housing 'bubble' everywhere, but it is worse in frum areas. Limited space for a population that far supercedes the average population growth for the US. It probably *isn't* a good time to buy b/c as interest rates go up, housing prices will go down. Already in our area, a one time 'hot area' to buy in, houses are not selling and we have seen a 'market adjustment'. On my block, [small!] houses that were selling for $330 K a year ago are now selling for $200-$230K.

I do wish that there were more non-profit organizations that were trying to address the need for frum housing like there are in Israel. I know that in Las Vegas they organized with a developer to build in an area for frum people and started a new kehilla and I've heard of a few such things in the NY area (and a potential one near Philly). It's a logical idea, but it's hard to convince people to hop on the wagon b/c we are used to living in 'established' areas with all the amenities of a frum neighborhood. But for that you have to pay!

Tefila

Mon, Jul 11 2005, 10:45 pm

Move here Housing is cheap 'b/c it's in uhupetzville' though we do boast an orthodox shul 2, and 4 kosher mikvehs, and 1 religous school, and one kosher food store etc. What else can u ask for Very Happy

nicole81

Mon, Jul 11 2005, 10:53 pm

it's funny how dh and I can afford more than double the mortgage that most of our friends who own homes pay, and the more we try to save each year for a downpayment, the more housing goes up proportionally. it's a viscious cycle and we will never be able to afford a home unless the real estate market crashes or we take a risk and leave our familiesand jobs behind and move out of brooklyn. if we moved away, however, my husband would never make as much as he makes here and who knows if we would ever afford a home elsewhere. we came out of our wedding with about $7000 and that includes money from our families. we both work very hard and try to save every penny we can, but it doesn't seem as if we'll be able to afford a house anytime in the near future with the inflated real estate market.

chavamom

Mon, Jul 11 2005, 10:57 pm

freilich wrote:

I keep trying to convince my husband to move to Canada. He's not buying the idea though Crying

. The big complaint I do hear from friends there are the outrageous taxes.

chavamom

Mon, Jul 11 2005, 11:01 pm

Oh, and just a point of interest. We bought a house in the past year. We got lucky and bought from someone that needed to sell quick and without an agent. Even WITH all that, the closing price was $150,000 more than the house was bought for in the late 1990's!!! That is not normal and cannot be sustained.

queen

Mon, Jul 11 2005, 11:53 pm

In the area we are looking to buy, housing has risen $30,000 in the past 3 months.

We were looking seriously at a home selling for $380,000 that was bought TWO YEARS AGO for only $200,000. TWO YEARS AGO.... THAT's IT! go figure!

The problem we're having is- we're prepared to spend $400,000, but we want to at least feel as if we're getting something. Where we want to live- that will basically get us a small three bedroom home. (one of the bedrooms can only fit 1 bed)

that's a lot of money to spend not to get very much...... especially (as other posters have written) these same homes went for half the amount 2-3 years ago.

sarahd

Tue, Jul 12 2005, 4:40 am

The only answer is to be one of the first to buy in a neighborhood that hasn't been discovered yet or right outside the accepted boundaries. 30 years ago that was 58th Street in Boro Park, 20 years ago it was 19th Avenue, 5 years ago it was 37th Street or 8th Avenue. The people that bought in such places had to suffer a few years, but now they're sitting pretty.

imaamy

Tue, Jul 12 2005, 9:27 am

We live in S. California so all the prices you mentioned are about half of what people pay here. I don't see how they afford it, and we've only owned for 4 years. THere was an article in our Sunday paper about Sharon Mass where I have non-frum relatives. I guess houses inside the eruv there are $35K more than just outside the eruv but it seems to be a larger community than I thought. The article made the point that people are honored to pay more because it is their way of live (being able to carry/push) and it is so important to them. I guess they should have interviewed some imamother moms for the real story! Best of luck to everyone trying to buy--it does seem to get harder and harder and push people into more debt.

queen

Tue, Jul 12 2005, 9:54 am

sarahd wrote:

The only answer is to be one of the first to buy in a neighborhood that hasn't been discovered yet or right outside the accepted boundaries.

but what about a shul????
We could have bought a beautifully upkept home for 415K recently on 3/4 of an acre etc. etc. however the shuls in the neighborhood we were not thrilled with. They were totally frum but we didn't get the picture that they are 'growing' communities.... but rather a place ppl go bec one needs to daven.

To have a beautiful home but live a life without spiritual growth didn't tempt me. So we are still waiting.

And about moving to a new area/neighborhood------ but what about shuls?

sarahd

Tue, Jul 12 2005, 4:14 pm

Either buy right near the popular areas or else you can be prepared to walk a distance to shul - if you have good reason to think that the neighborhood will be "discovered" soon.

Motek

Tue, Jul 12 2005, 6:07 pm

freilich wrote:

a choice of pizza stores?
a choice of ice cream stores?
a choice of milchig restaurants?
a choice of fleishige restaurants? (chinese, etc.)
many religious elementary schools?
many high schools?
Judaica stores?
Jewish libraries?

shall I go on? Wink

and hey, freilich FOUR mikvos?!

amother

Tue, Jul 12 2005, 7:08 pm

Move to Cleveland. Our friends just bought a five bedroom house ( 4 bathrooms ! ) for 130K. There are like 20 shuls within walking distance and a choice of 3 Orthodox day schools.

Tefila

Tue, Jul 12 2005, 7:28 pm

Quote:

and hey, freilich FOUR mikvos?!

Yes Motek

and They are all Kosher.... some in peoples homes and some in the shuls.
We have a house near a shul in a nice area going for 350k Canadian so w/h that price who needs ice cream stores, pizza stores, restaurants and all that hiskafia What

gryp

Tue, Jul 12 2005, 8:56 pm

those Mikvahs crack me up, ever since I heard about them... Smile

Mommy912

Tue, Jul 12 2005, 9:01 pm

Freilich, Mikvahs in people's homes - how is that? Is it for private use or can everyone come? Are there Mikvah ladies or is it just the ppl. who live there?

Tefila

Tue, Jul 12 2005, 10:31 pm

Quote:

Is it for private use or can everyone come?

Theoretically yes but they do end up using them out for frI NIGHTS ETC. They r very kind and generous people!
And some boast a swimming pool in their home but they instead boast a mikveh.
Uh nope I don't fall into that category yet, still waiting for that lottery ticket I was supposed to win 8)

micki

Tue, Jul 12 2005, 11:26 pm

move here - we bought our house for $63,000. 4 bedrooms, and a huge yard.

chavamom

Tue, Jul 12 2005, 11:44 pm

micki wrote:

move here - we bought our house for $63,000. 4 bedrooms, and a huge yard.

Where are you?

Tefila

Tue, Jul 12 2005, 11:58 pm

Quote:

$63,000

Wow even an apartment doesn't cost that!

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