Inflation is a mother

[AGGAMEMNON66]

You are missing his point. Household prices have exceeded at a higher rate than inflation. You can't even begin to run an apples to apples comparison looking at just the mortgage rates. In 1980, you may have been paying 18% on a mortgage, but you were earning 10% in a CD. Median home price was around 3.6 times the median income, where now the median home price is near 5 times median income.

 

[FrenchFri3dNinja]

Dude, families used to be able to get by on one income. The 2 income household is much more a product of the last couple decades. There’s a reason for that. Money went further. That’s a fact.


Why are you arguing with me on this? Did you grow up in poverty or something?

No, I just did not grow up during the 70's. How old are you? How were the dinosaurs like back then?

 

[FrenchFri3dNinja]

Dude, families used to be able to get by on one income. The 2 income household is much more a product of the last couple decades. There’s a reason for that. Money went further. That’s a fact.


Why are you arguing with me on this? Did you grow up in poverty or something?

Also you said homes that cost 400k right now costed 200k back then. I did the math, you didnt. You failed. Dont blame me for your folly, grandpa.

 

[Robocok]

I want to know how greedy real estate salespeople can justify a piece of shit small wooden single wall house in a sorta shitty area listing for near $1 mil asking price.

Blaming it on the real estate agent is incorrect. It's based off supply and demand.

 

[AGGAMEMNON66]

No, I just did not grow up during the 70's. How old are you? How were the dinosaurs like back then?

Also you said homes that cost 400k right now costed 200k back then. I did the math, you didnt. You failed. Dont blame me for your folly, grandpa.

Grow up.

 

[FrenchFri3dNinja]

Grow up.

Okay, forget the jokes, Well you did bring up 400k and 200k. I did the math.

 

[therealdope]

My point was more that banking doesn't give a fuck about people, it cares about making money.

If you bought a $100,000 dollar home at 6% interest which is historically low, and financed it for 30 years, you would need to pay the bank $215,838.19 for that $100,000 home. In fact, the interest would be more than the value of the home at $115,838.19. When this is the norm and people just accept it for the way it has to be, you know we are fucked. And people think drug dealers are ruthless.

https://www.myamortizationchart.com/

Home ownership is the biggest con job ever.

 

[therealdope]

In the 90s, the value of homes was increasing so fast that some banks would loan 110% of the selling price to get the loan. They assumed that the values would keep climbing and got caught when prices collapsed.

I was in NoCal for my post doc in the late 90s and I remember my buddy in Orange County telling me that he had neighbors with : 45 yr mortgages, interest only mortgages, and even negative mortgages (you more each month you make a payment!).

Just remember SMH.

 

[HunterSdVa29]

the whopper was 99cents for a 'limited time only' for like most of my teen years and early adulthood...

Now it's like what, 3.89? w/o cheese?

pity we don't get paid near 400% more

 

[HunterSdVa29]

Don't you live in San Diego too?

The funny thing is property tax in Chicago/Cook County and a lot of the outer ring burbs is way higher than the average property tax bill in SD county. There are some people paying $15,000 a year in property taxes out in far burbs of Chicago. As expensive as houses are here, you make up for it a bit in property tax over what it could be.

Don't disagree with your points though. The gf and I are going to be buying a house soon and expect to pay between $500-600k for a 1200 sq foot single family home.

not sure what part of SD you're in (I think you mentioned North County being a possibility in another thread)....

but my brother and his wife just bought and moved into a decent development in Temecula/Murrieta. 415k for IIRC like 2300 sq ft and it's actually pretty legit. HOA aren't too bad either

Not sure if you're willing to go that far north tho

 

[TeTe]

not sure what part of SD you're in (I think you mentioned North County being a possibility in another thread)....

but my brother and his wife just bought and moved into a decent development in Temecula/Murrieta. 415k for IIRC like 2300 sq ft and it's actually pretty legit. HOA aren't too bad either

Not sure if you're willing to go that far north tho

I work in North County but my girlfriend works right on the border... So ideally we'd buy along the I-8 corridor. She'll retire with the state and Ill probably always work North because that's where all the tech companies are.

 

[HunterSdVa29]

I work in North County but my girlfriend works right on the border... So ideally we'd buy along the I-8 corridor. She'll retire with the state and Ill probably always work North because that's where all the tech companies are.

ya, my brother was out east on the 8 in lakeside/el cajon but even there the home prices were getting a bit egregious

True story, my grandparents bought their home in Mira Mesa for 110k in like 81 or something. No upgrades/renovations, nothing, sold it in 2006 for 675k....wtf

 

[Grassshoppa]

I live in Illinois.. don’t get me started on fucking property tax. I’m so close to leaving this shitty fucking state.

Really? Tell me more. I thought property taxes were the worst in California due to the "sunshine tax."

 

[TeTe]

Really? Tell me more. I thought property taxes were the worst in California due to the "sunshine tax."

Property tax in California is nothing compared to Cook County and the surrounding suburbs.. it's the highest in the nation.

It's a big reason people move over the border into Wisconsin and Indiana

Even worse is the sales tax in Cook county.. 9.25 percent, then if you are in the city you can tack on another two percent.

 

[TeTe]

@AGGAMEMNON66

Check out that property tax burden

https://www.cnbc.com/2018/04/10/us-states-with-the-highest-tax-burdens.html

 

[IReallyDoTrainUFC]

Higher interest rates are supposed to curb inflation and no not everyone is supposed to be able to afford a house. There was a time when you HAD to save 20% for a down payment but now they are trying to give a house to everyone 3.5% down.

Yes. We need insanely high interest rates so that our economy shifts from debt to savings. If America doesn't do that, it will disintegrate.

 

[ToxicShocker]

@AGGAMEMNON66

Check out that property tax burden

https://www.cnbc.com/2018/04/10/us-states-with-the-highest-tax-burdens.html

I don't understand how that works. I just got my bill for a place I bought in January. 5500 on 830k. I expected it to be 1.25 % of the purchase price but they are quoting me on the assessed value of record which is half that. Los Angeles here.

 

[TeTe]

I don't understand how that works. I just got my bill for a place I bought in January. 5500 on 830k. I expected it to be 1.25 % of the purchase price but they are quoting me on the assessed value of record which is half that. Los Angeles here.

$5,500 on an $830k house? That's not bad at all.

My mom's bf pays $11,000 a year on a three bedroom dump in the Chicago burbs.. maybe 1,400 sq ft.

Yeah, they assess the value on your house based on a few factors.. lot size, current appraisal value, sq footage and of course the neighborhood you live in makes a huge difference. I think 1.25 percent is pretty average for LA county. In the city of Chicago it's about 2 percent... burbs are anywhere between 2.5 and 3 percent.

 

[Grassshoppa]

Our total tax bill is $7700.

 

[therealdope]

$5,500 on an $830k house? That's not bad at all.

My mom's bf pays $11,000 a year on a three bedroom dump in the Chicago burbs.. maybe 1,400 sq ft.

Yeah, they assess the value on your house based on a few factors.. lot size, current appraisal value, sq footage and of course the neighborhood you live in makes a huge difference. I think 1.25 percent is pretty average for LA county. In the city of Chicago it's about 2 percent... burbs are anywhere between 2.5 and 3 percent.

This^^^. Midwest is a bitch.

I was thinking of buying a house rather than a condo for work in another city and the tax was $8,000 - $14,000 for the houses that I looked at. The condo (which I bought just after the financial crisis) was $4500/yr.