How do people afford big houses

amother

Slategray

Tue, Feb 19 2019, 3:01 pm

I totally get you. We make over 170k and can’t figure it out. We even own a small starter home now in Lakewood that never appreciated in value (bought during the last housing bubble)

If we were to buy a home over 500 k we would no longer
1 pay full tuition
2 save for retirement
3 save for kids weddings.

The only thing I can think of is that those that have big houses aren’t - I don’t know. Or maybe we are just too responsible.
Realtors think we are nuts we don’t want to spend so much but I don’t think it’s responsible. We even have toe down payment saved up. I just can’t risk not making it monthly.

shaindy3

Tue, Feb 19 2019, 3:08 pm

How much of a down payment does someone need if you’re buying a 500k house?

I always assumed that it’s above 100k which honestly I have no idea how we’ll ever get there.

Mommyg8

Tue, Feb 19 2019, 3:22 pm

sirel wrote:

I personally know more than a few people who bought in Lakewood, it's on someone else's name, and they pay the "rent" with section 8, which pays the mortgage.

They either have the down payment saved up, or they take a personal loan from family or a gemach.
then they pay that back over the years

playing the system

I know someone who did that and got into real trouble (not with the government). Because when someone else has title to your home..... someone else has title to your home. You fill in the dots.

sky

Tue, Feb 19 2019, 8:54 pm

Mommyg8 wrote:

I know someone who did that and got into real trouble (not with the government). Because when someone else has title to your home..... someone else has title to your home. You fill in the dots.

I also do. Her house was put under her parents name. Parents died. Siblings insisted on including it in the yerusha to split.

Mommyg8

Tue, Feb 19 2019, 8:59 pm

sky wrote:

I also do. Her house was put under her parents name. Parents died. Siblings insisted on including it in the yerusha to split.

Parents are a halbe tzarah, but where I live it's illegal to get section 8 if your parents own the house. Put in under a friends name Can't Believe It

? Very, very not a good idea.

Mommyg8

Tue, Feb 19 2019, 9:00 pm

ectomorph wrote:

My friend won a low income lottery in Lakewood

Lakewood Commons and Forest Park, but the houses are not particularly big (by Lakewood standards).

amother

Seagreen

Tue, Feb 19 2019, 9:12 pm

amother wrote:

We make the same much as you. My parents gave 100k and we bought a house in Jackson for $600k. We put an additional 100k of our down and now we have a doable $3k mortgage

amother

Hotpink

Tue, Feb 19 2019, 10:32 pm

amother wrote:

Many Lakewood/Brooklyn people have been moving to Detroit for Kollel. There are Kollel designated apartments here. And when you do buy a house- they’re $150-200k. I didn’t do it myself. I’m a native Detroiter and I feel like there’s been an east coast invasion because of cheap housing.

Let me know where to find these 150k houses even south of 10 in Southfield they are over 200k now and those are small. For a normal size house where we live people are paying close to 300k and putting in at least 100k there are 3 people doing that on my block right now. 1 bought for I think 280 and is putting at least 150 the other 2 I’m not sure how much they bought for and they are also both putting in over 100k. So no one is buying a large home here for 150k maybe a teeny tiny smaller then her Lakewood basement apartment that would need tons of work but houses like my 3800 sq foot house are going for mid 4 that’s still way cheaper then other places but not dirt cheap.

amother

Slategray

Tue, Feb 19 2019, 11:33 pm

amother wrote:

We make the same much as you. My parents gave 100k and we bought a house in Jackson for $600k. We put an additional 100k of our down and now we have a doable $3k mortgage

My mortgage is now 2k (my house and property is tiny and old so taxes are low). I pay over 3k in tuition. After taxes and insurance there isn’t much less.
I can’t take on 3k per month mortgage.

amother

Honeydew

Wed, Feb 20 2019, 1:05 am

amother wrote:

3800 sq ft houses are super uncommon unless you built it yourself. Many of the houses in our area are small. People deal. I don’t have 3K for a mortgage, and I’m sure many others don’t either.

amother

Wine

Wed, Feb 20 2019, 1:08 am

Another off topic Detroiter here. I agree with amother above. Even south of a ten a house just went for 300k+ and yes these homes are nowhere the size of a Lakewood home. Also property tax is pretty high and tuition double the amount it is in Lakewood. Not too mention salaries are a joke in the Midwest. So definitely don't move here for a higher quality of life. More relaxed yes.

amother

Seagreen

Wed, Feb 20 2019, 6:52 am

amother wrote:

My mortgage is now 2k (my house and property is tiny and old so taxes are low). I pay over 3k in tuition. After taxes and insurance there isn’t much less.
I can’t take on 3k per month mortgage.

Wow- I guess family size is a big factor. I’m paying full tuition and it’s coming to $2k per month

livinginflatbus

Wed, Feb 20 2019, 9:42 am

I also wonder occasionally how everyone affords it , but the reality is there’s no secrets . Either you have money saved up , parental help or big loans . That’s it .

amother

Olive

Wed, Feb 20 2019, 10:19 am

I was an older single so I had saved up a lot. My parents gave financial support during the first few years of marriage. I saved a lot of it by living in a small aptmnt and living frugally while also working. Then, I got monetary gifts when I was buying a house. Plus, my ILs loaned us some money so no interest in paying that back. So that's how I bought our home. We don't make a lot of money now (I'm no longer working) but thankfully, the house is not a huge cost. There's always an answer. So many times, ppl have money that you just don't know about.