Wolf_359's recent activity
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Comment on Housing market predictions in ~finance
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Comment on Housing market predictions in ~finance
Wolf_359 (edited )Link ParentI do sort of view it the same and I think white privilege is a huge part of it. I would be much more likely to have a felony for my drug use I were black. And without the meager (but still real)...I do sort of view it the same and I think white privilege is a huge part of it. I would be much more likely to have a felony for my drug use I were black. And without the meager (but still real) generational wealth that allowed my wife's mom to help us, I would be in a much worse position. A car payment would for sure exclude us from the housing market right now. And buying a house right now may net us tens of thousands in equity that we can pass to our child someday - maybe. That's a huge privilege. It puts us in a totally different spot than someone whose mom couldn't help with a single used car a few years ago. It multiplies over years and generations.
But anyway, I do see your point. There is some personal responsibility and hard work involved too.
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Comment on Housing market predictions in ~finance
Wolf_359 Link ParentI wanted to respond again to your comment because something was gnawing at me. I don't want to seem argumentative because that's not where this comment is coming from at all. Genuinely, it was...I wanted to respond again to your comment because something was gnawing at me.
I don't want to seem argumentative because that's not where this comment is coming from at all. Genuinely, it was just something my heart was telling me to share.
I said owning the condo was a privilege because I think my entire life is very privileged right now. My mother-in-law helped us with a used vehicle a few years back, we had help getting a dishwasher, and we bought this condo for cheap just before the market totally surged and gave us a free 50k in equity.
A decade ago I was addicted to opiates and painting houses to get high while racking up credit card debt. I was desperately sick and mentally ill from the drugs. I got government assistance to go to rehab.
A decade before that I was living with my brothers and single mom in an old house in an old town. My grandma helped my mom a ton in those days so she could make it work.
A decade before that, I was born into a foreclosed and auctioned home (a genuine shit box) to a drug-addicted father who would later be totally absent from my life. We were so, so poor. My grandma provided free childcare so my mom could get job training and make it work. She eventually left my dad and we moved into a rental home.
My adult life after rehab has been nothing but second chances and me getting things I don't deserve - at least not more than any other person who is currently worse off than I am. I have an amazing job and an amazing family. But I didn't get it through sheer hard work or intelligence. So much of it was people helping out, programs that helped me or my family, and dumb luck.
There are people out there who never used drugs, never wronged anyone, and made far smarter choices with far less help than we ever got, and many of them are struggling much worse than us. I'll be honest, while teaching has some major problems, this job is higher paying and much easier than any other job I had before. It's funny to me how the highest paying jobs are usually the easiest and most cushy. Because I truly wouldn't go back to painting houses or washing dishes for pretty much any amount of money. Miserable, back-breaking work.
I honestly consider everything in my life right now to be a huge privilege that I have to earn by trying to be grateful and decent.
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Comment on Housing market predictions in ~finance
Wolf_359 Link ParentWow, thanks! Great to get insight from someone involved in the job. We own a condo and we, perhaps stupidly, bought it together with both of our names on the loan. Do you suspect we will therefore...Wow, thanks! Great to get insight from someone involved in the job.
We own a condo and we, perhaps stupidly, bought it together with both of our names on the loan. Do you suspect we will therefore not qualify for any DPA programs? I had never heard of them before.
Also, how are you feeling about the state of the housing market? It seems like some people in this thread are kind of downplaying the struggle while others are in total agreement that it's a bloodbath out there. What are your feelings?
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Comment on Housing market predictions in ~finance
Wolf_359 Link ParentThanks for sharing this. I'm excited to sit down and read this in a bit.Thanks for sharing this. I'm excited to sit down and read this in a bit.
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Comment on Housing market predictions in ~finance
Wolf_359 Link ParentThis is the best take on the generational difference that I've seen yet. I have had several boomers and X-ers tell us how great it is that our condo gained 50k in equity. All I feel is heartbreak...This is the best take on the generational difference that I've seen yet.
I have had several boomers and X-ers tell us how great it is that our condo gained 50k in equity. All I feel is heartbreak for the people who were just a couple years behind me on buying their first piece-of-shit starter condo. Single-family homes feel totally out of reach for us and yet we're still better off than the younger folks who are feeling that less-than-single-family condos are out of reach for them.
Yeah, it's fucked up. This condo has gotten shittier since we moved in. It shoudn't cost 50k more.
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Comment on Housing market predictions in ~finance
Wolf_359 (edited )Link ParentI think the cost of having a child is the hardest part actually, but worth it! As for your numbers, you're a bit off. Seems like you didn't include accurate property taxes, closing costs, or...I think the cost of having a child is the hardest part actually, but worth it!
As for your numbers, you're a bit off. Seems like you didn't include accurate property taxes, closing costs, or something else.
We have about 50-70k in equity on this condo depending on what it sells for. Let's say 70 on the high end.
250k home
Put the 70k in equity toward the new home
subtract 15k for closing costs
that's 55k down toward the actual cost of the home.
That's $1901/month.300k home with the same math is $2310. My "take home" after I pay union dues, taxes, and health insurance out my check is about $2400. So that's essentially gone and we haven't even paid utilities.
We are now left with my wife's take home pay - pretty much the same exact amount - to pay for:
-Utilities
-Gas in our cars (no public transport out here and we drive 15-30 min to work)
-car insurance
-car repairs (like the tires that just cost me $400 or the brakes and rotors I put on my wife's car myself that still cost $250)
-groceries
-childcare
-diapers
-formula (wife breastfed for months but lost her entire supply the minute she went back to work)
-our clothes, baby clothes (which we usually get free or cheap from facebook)
-baby "equipment" like carseats and miscellanious stuff
-makeup, shower products, and other assorted things
-medication and doctor's appointments
-random emergencies that come up
-everything elseWe are super lucky we bought reliable used cars a few years back with cash. No car payment beyond the car insurance. If we had even super low car payments we would be in worse shape. I don't know what the car market is like where you are but here in NY we still have to contend with rust and even the rust buckets are expensive these days. Nevermind the fact that they're money pits once they get like that. My previous car - a wonderful Mazda 3 from 2006 - was great until it got rusty and old. Then it was 2k every six months to fix some bullshit and I kept thinking it had to be the last big fix. It never was. I kept it too long trying to be frugal.
Anyway, not trying to win an argument or anything. I just wanted to be accurate and possibly add perspective to that scenario. In short, we cannot afford a 300k home for sure. Even 250 feels pretty horrible and is probably a financially stupid decision as far as our month-to-month is concerned. I'm afraid that banking on raises is just going to leave us in the same spot in five years as the market continues to climb. The only positive to waiting is that my wife could go back to the ER or something when the kid is a little older. Right now it's just not feasible for her to be working nights and weekends.
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Comment on Housing market predictions in ~finance
Wolf_359 Link ParentIt's tough. This condo needs at least $20k in work. Needs a furnace and the condenser on the a/c crapped out on us. It's a thin, tall condo that shares walls with neighbors on both sides. The...It's tough. This condo needs at least $20k in work. Needs a furnace and the condenser on the a/c crapped out on us. It's a thin, tall condo that shares walls with neighbors on both sides. The upstairs bedrooms are extremely hot in the summer so I think that the a/c is worth fixing for the baby. I have also fixed my washer and dryer by hand multiple times now to keep them running. But they're way past the end of their natural life cycle. Our floors are all slanted inward toward the center of the home and I think it needs to be addressed somehow. I did put some pole jacks in the basement to prevent it from getting worse but we are currently just using risers so our furniture near the walls doesn't tip over toward the center of our rooms (lol). Oh and our refrigerator isn't long for this world either. But those are relatively cheap I guess if we just get an old and ugly one.
Yeah, I guess the question is whether we invest in this place more or get out and into something more spacious. Don't need a ton of space either. Even something similarly sized with a basement would be fine since we would have some storage.
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Comment on Housing market predictions in ~finance
Wolf_359 Link ParentThanks for this comment. It does help remind me that I'm not insane for thinking these things. I don't live in a city. I live in a rural/suburb area where you used to be able to get a really nice...Thanks for this comment. It does help remind me that I'm not insane for thinking these things.
I don't live in a city. I live in a rural/suburb area where you used to be able to get a really nice home with two careers and multiple children. I guess I figured that with two careers and one child, we could get a modest starter home at this stage in my life. Sure, it would be an outdated and small house with a couple bedrooms and one bathroom, but that's not feeling realistic anymore. Honestly, if we didn't get this run-down condo before COVID, I don't think we could even dream of getting it now. We could afford it monthly, sure. But I don't know how we would beat out 20 other offers when some of them are straight cash.
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Comment on Housing market predictions in ~finance
Wolf_359 Link ParentGood luck with your future in public education!!! For me at least, the healthcare is phenomenal and the (perhaps meager) pension is definitely a wonderful help for the future. My advice to you is...Good luck with your future in public education!!! For me at least, the healthcare is phenomenal and the (perhaps meager) pension is definitely a wonderful help for the future. My advice to you is to join the union immediately and obviously get tenure. If your district offers Master's +30 pay bumps, do it ASAP. I will get a raise when I finish my 30 credits and it will factor into my raises every single year from now on. I am doing my credits as fast as possible and it should take me about a year total. Over the next 30 years of my career I will make, at bare minimum, $90k more than someone who didn't take the classes. That doesn't account for my yearly raises being higher due to the bump. I think over the lifetime of my career it ends up being 120k more than someone who doesn't take them.
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Comment on Housing market predictions in ~finance
Wolf_359 Link ParentFor sure! We aren't thinking in terms of making an investment. We are thinking in terms of monthly payment versus what we "need" in a home for the family. We aren't looking for anything special. A...For sure! We aren't thinking in terms of making an investment. We are thinking in terms of monthly payment versus what we "need" in a home for the family. We aren't looking for anything special. A modest two bedroom home would be fanstic. Just sucks that our monthly payments would wipe us out. The argument could be made that it's our fault for having a child, but it seems like an economy that makes you choose between housing and one child (with two "decent" and "real" careers) is not an economy that is doing particularly well.
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Comment on Housing market predictions in ~finance
Wolf_359 (edited )Link ParentApologies, I misused the term "take-home" in this instance. What I really meant was "how much money is being deposited in my bank account every month." I have healthcare taken out ahead of time,...Apologies, I misused the term "take-home" in this instance. What I really meant was "how much money is being deposited in my bank account every month."
I have healthcare taken out ahead of time, union dues, and then obviously all the other nonsense. I also take out $200/month for my retirement which is much less than I should be taking out but truly all I can spare.
The point of this post wasn't to say that I'm totallly screwed and can't make ends meet. We're very fortunate in many ways. I guess my point was that we have very little hope of getting a house anywhere in our area in the near future and we have two "middle class" careers between us. I worry that America's middle class is finally gone when a teacher and nurse can't have one child and a modest two bedroom home that isn't a total renovation project. Because the houses in our price range are selling in no time with many, many offers. Worse, the vast majority of them require serious updates. I'm not talking about paint and a kitchen. I'm talking more like a furnace, a roof, windows, and who knows what else since inspections are not happening. If I was more comfortable sharing my exact location I do think we could all have a good laugh at the Zillow listings that are selling within a few days in my area. I think you might be surprised honestly. If you buy a $220k home that needs $30k in repairs to fix the absolute basic necessities, did you really buy a $220k home?
We will be okay in the end even if it means staying here and shifting our perspective on what a "family home" looks like in terms of size and comfort. I mostly just feel really bad for people my age who are trying to break into the market right now. Especially if they have a job that doesn't pay great and doesn't have all the benefits my job has. I said in another comment somewhere that I can't easily leave this area because teachers tend to get trapped by their districts with benefits that accumulate over time and don't transfer between schools. I am finally in a situation where I have accumlated some benefits and would stand to lose a lot of progress toward future gains by moving.
It's a tradeoff, like everything else.
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Comment on Housing market predictions in ~finance
Wolf_359 Link ParentHaving kids is absolutely brutal and it's a financially terrible decision - but it's not a decision you make for financial reasons. Daycare is about $250-$300 per week for in-home (which is the...Having kids is absolutely brutal and it's a financially terrible decision - but it's not a decision you make for financial reasons. Daycare is about $250-$300 per week for in-home (which is the cheapest option around here). So yeah, it's at least $1000 per month for a single child. Fortunately I'm off in the summer and we won't need childcare for those weeks.
Nevermind the fact that kids need diapers and formula, toys and clothes, blankets and bedsheets, etc. They're just a money pit. We know we greatly sacrificed in our material quality of life to have a baby and we have more or less accepted that because we love him so much.
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Comment on Housing market predictions in ~finance
Wolf_359 Link ParentI personally am of the opinion that waiting it out here is a poor choice. I think there is more of an upper limit on the max value of this condo. I think housing costs will continue to rise and we...I personally am of the opinion that waiting it out here is a poor choice. I think there is more of an upper limit on the max value of this condo. I think housing costs will continue to rise and we are probably better off getting a foot in the door now. Plus, we "need" the space now. I'm tripping over things to move things to get what I need. Kids take up so much space.
I realize this is a very American thing to say. People have been raising mutliple kids in single-room living situations for centuries. I get that.
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Comment on Housing market predictions in ~finance
Wolf_359 Link ParentAgreed! That's why we responsibly decided to take significantly less into our home search. I'm just surprised that irresponsible people are even eligible for that much.Agreed! That's why we responsibly decided to take significantly less into our home search. I'm just surprised that irresponsible people are even eligible for that much.
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Comment on Housing market predictions in ~finance
Wolf_359 (edited )Link ParentGood point. I guess that's worth thinking about. Though, if a family with a child was offering 10k less, I think we would have to very seriously consider that it's worth attempting to do the right...Good point. I guess that's worth thinking about. Though, if a family with a child was offering 10k less, I think we would have to very seriously consider that it's worth attempting to do the right thing.
I'm extremely against corporate ownership of homes. I've heard all the free market arguments and many people have tried to spin it as a good thing - I genuinely don't see how it can be a good thing. I think it's greed at the highest level imaginable.
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Comment on Housing market predictions in ~finance
Wolf_359 (edited )Link ParentWell, perhaps. But we bought it before COVID and it was pretty easy to get. Now they are selling in days and mostly to cash buyers way above asking. It's great if these condos are only 130k now,...Well, perhaps. But we bought it before COVID and it was pretty easy to get. Now they are selling in days and mostly to cash buyers way above asking.
It's great if these condos are only 130k now, except it doesn't help if the offers being accepted are all cash, no inspection, and the sellers are getting 20-30 offers each. That's not exactly great for people getting a starter home.
Wife and I already agreed we weren't going to sell our condo to a landlord or company if we could help it, even if it meant a cash offer.
Edit: I also would clarify that this condo is much more in the style of an apartment. And it needs a lot of necessary work. I'm not complaining about four walls and a roof, but I'm just thinking that it's insane how my condo would be unobtainable post-covid for a young couple with careers. This condo was our "financially conservative and living within our means" decision before covid. Now it's straight up expensive for this area. The 50k in equity doesn't help us much because the house prices have gone up just as much. It sure does put us in a better spot than someone who has been renting though, and that's kind of my point. Even we are struggling, so what are they doing?
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Comment on Housing market predictions in ~finance
Wolf_359 Link ParentI'm a teacher so I have a pension and a modest 403b. Because of the housing situation I'm only putting $200 a month into my 403b. It's literally all I can spare and even that really sucks for me...I'm a teacher so I have a pension and a modest 403b.
Because of the housing situation I'm only putting $200 a month into my 403b. It's literally all I can spare and even that really sucks for me every month.
I also put $50 into my kid's savings account every month since I don't want him to go through this later in life. His mom and grandma do the same.
In theory I could free up a few hundred a month but I don't know if pausing retirement money at 30 years old is a smart move. Feels like one of those things you should never do. Pretend the money isn't there kind of thing. Really I should be increasing the amount I put in there but...yeah I don't know how that's possible right now.
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Comment on Housing market predictions in ~finance
Wolf_359 Link ParentChildcare costs are not calculated in DTI. We learned that during this process. Pretty crazy if you think about it because that's the one thing people would never ever forego. My kid has to eat...Childcare costs are not calculated in DTI. We learned that during this process.
Pretty crazy if you think about it because that's the one thing people would never ever forego. My kid has to eat even if it means I can't. He has to be watched so I can work. Like, there is no amount of debt or suffering I wouldn't endure to meet his basic needs. And yet it's the one thing they don't take into account. Very interesting!
Another little bit of privilege I didn't mention is that we actually do own a little condo/townhouse currently. We bought it just before COVID and the value has obviously increased. We bought this place for a mere 80k and it's already worth 130 (at least). We could probably get more because we've had several private offers at 130. It needs a lot of work but I seriously wouldn't be surprised if we could list it and get 150 or 160.
We would stay here but it's very, very small and we don't fit now with the kid. It's becoming unmanageable and we're going to have to start paying for storage just to squeeze in another box of diapers, haha.
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Comment on Housing market predictions in ~finance
Wolf_359 (edited )Link ParentMy wife and I went to the courthouse and got married on a whim one day because we did the math on what she was paying in health insurance versus what we could save by putting her on mine. We had...My wife and I went to the courthouse and got married on a whim one day because we did the math on what she was paying in health insurance versus what we could save by putting her on mine.
We had been dating a long time and knew we would get married anyway. We just didn't know that our wedding would be done in the local courthouse with $1.00 rings from Goodwill that we picked up on the way there.
Our families were pissed! But every time we go to one of our friends' weddings and see the $20-$40k they're spending on a single afternoon, we feel pretty goddamn good about our decision.
Sorry my friend. Do you have student loans by the way? Because getting married can totally screw you on loans if you don't do it right! Keep it in mind for later.
Thanks! I'm not financially literate to understand how paying a dollar on 7% translates to an 8.3% benefit. If you have the time and energy, would you elaborate?
I am financially literate enough to tackle high high interest rate loans first but I'd love more specifics on what you're saying.
As for the condo, I don't see it having major structural issues.
It's more a situation where the floors may need to be jacked up, stabilized, and then levelled, perhaps by just shimming the subfloor even.
I guess we are just so cramped here that I have a hard time putting a dime into this place. I used to do home improvement projects here all the time because they improved my life. Now I can't help but ask, "will I get every penny of this project back in equity?" Because if the answer is no, I don't see myself staying here long enough for it to be worth it.
This place was a great place to live and save money through our respective college programs. It was much cheaper and nicer than the dilapidated party central apartments we lived in prior.
I know we will be okay in the end. But I really don't think a lot of others will be. My youngest brother is 7 years younger than I am and I don't see how he gets into the housing market when he's fresh out of college. I'm going to tell him to work his ass off, wait to have kids until 30 like we did, and just get into something as soon as it becomes feasible.
I'm worried prices are going to spike after interest rates go down but maybe the market will at least become a little less competitive if more people are willing to move due to lower rates.