Quote:
Originally Posted by 68style
Not even equal amounts... equal PERCENTAGES... which is even more depressing because it's worse for you on the bottom end.
Like for me I bought in my neighbourhood at $365k for a condo when townhouses were $650k... now townhousea are $1M and condo is $530k... so yah mine went up 50% and so did the townhouses... but in actual dollars needed to pay for it, mine went up less than $200k but the townhouses went up almost $400k.
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The math is really ugly if you work backwards with the idea that you'll have a paid off home by retirement age. Basically you need to be in your "forever" home by age 40 to make that work and a $1.5m mortgage is over $6k/mo at that point so by age 40 your family needs to make about 250k minimum to make it work, more to be realistic since this is when you save for retirement. This is a dead dream for most people unless they get that big inheritance from mom/dad (and figure mom/dad don't pass till you're in your fifties).
Even getting into a nice duplex (1500-2000sf) is really hard by 40 - that's a 1-1.2m mortgage in most cases and $4k/mo in payments (figure $180k income or more to make it work).
Only the very lucky - the folks who got into high demand jobs like tech will experience salary increases that line up with housing price increases. The rest will get their 2-3% and that's it.