How do people afford to buy houses here?

amother

Thu, Feb 22 2024, 8:19 pm

I grew up in boro park and still live here. I'm renting a small 3 bedroom apt for 3000 a month. Dh has a great job here and I also have a nice paying, flexible job we couldn't take these along if we would move away.
So we made the decision to stay here but as our children are growing, and need more room, I'm feeling very tight in my apt. Houses seem to be starting in the 1.7+ million range. Saw a tiny bungalow for 1.5 but that's it for under 2m.
How exactly are people being approved for 2 MILLION dollar mortgages? And after being approved, how do you cover $10,000+ a month just for the house? I feel like there's a secret trick that people know that is eluding me. And I don't believe everyone has rich family members helping them.

amother

Bone ↓

Thu, Feb 22 2024, 8:26 pm

Good luck getting an answer. I tried asking many many friends. My neighbor was selling for 2.4 I was ready to live in the basement or even half!!!!!! Just to buy the house but I simply can not come up with 13K a month. I really don't know what to tell you just know you're not the only one wondering. It's very interesting especially since I see many times its people much younger than me. Many times they answer " nissim V'niflaos." I can understand why someone wouldn't say when they are in the process but it would be nice if they vaguely shared how. I know a long time ago when I was seriously considering a certain property a coworkers husband told me about a little bank that would give a better rate. I was so grateful even though at the end I didn't end up buying anything.

amother

↑ Bone

Thu, Feb 22 2024, 8:28 pm

amother OP wrote:

Thats all your wondering? Im wondering how they afford to leave it empty for a year of renovations with such hefty mortgage.

amother

Blonde

Thu, Feb 22 2024, 8:29 pm

If you read this site carefully, there are apparently quite a few people who make obscene sums of money and can therefore afford it. Others get major help from parents or grandparents with means. Still others have been scrimping and saving for years towards a significant down payment. The bigger your down payment, the smaller your mortgage.

amother

Impatiens

Thu, Feb 22 2024, 8:29 pm

amother DarkCyan wrote:

Half the place bought before it was those prices. And the rest either have the money or move somewhere cheaper.

Agree.
The only people I know who purchased recently (ages 29-30) are one couple with a great going business - detached single family home, cash - not sure how much, and couple with dual income, decent salary - condo, 1.2 mill.

amother

Babyblue

Thu, Feb 22 2024, 8:47 pm

amother Blonde wrote:

With homes going for two million dollars you could scrimp and save until you are 120 and you won't have enough for a significant enough down payment.

Even if you managed to save a million dollars (and I don't know anyone with a regular salary who would be able to do that) you would still need to take out a mortgage for a million!

amother

Amber

Thu, Feb 22 2024, 8:50 pm

Many people bought years ago cheap and are selling for high amounts and are able to buy. We did it to ourselves. If we would not give in to these crazy prices they would surely go down. The people that can afford flip the houses and the prices go up and up and the average can't afford. Bh lots of people moved out and paid a lot less

amother

Papaya

Thu, Feb 22 2024, 10:24 pm

Bh we bought a few years ago before the interest went crazy high. I’m wondering the same thing. Where is everyone getting so much money for the down payment then to renovate and to be able to pay for rent, mortgage and renovations all while still living and paying basic bills boggles my mind. I find it so hard to bet that so many people are making so much. I mean to cover that stuff you have to be bringing in minimum 750 after taxes. Dh owns a company and all his employees make under 200. He takes ppl that went to chasidish mesivtas and no experience. They love working for him bh lots of great benefits. But it’s simply impossible to pay them more. There’s not enough money coming in. And bh his business is doing quite well but with expenses and insurance for his company it’s a huge chunk ..