Current Events > How likely is it for anyone to buy a house in a high cost of living area?

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Hickey_Blvd46
05/12/24 3:58:26 PM
#1:


It's hard for me to imagine most people in normal jobs with normal salaries doing it

Unless you either have financial help from your parents or you marry someone who has a lot of money

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YoBlazer
05/12/24 4:09:32 PM
#2:


Incredibly difficult, and I'm seeing that indirectly because of my sister's current situation. She's moving her family across the country from northern Virginia (expensive) to San Diego (extremely expensive). She's a pediatrician and will gross about 290k in SD. Her husband works in a specialized government role and grosses about 170k. That's a married couple grossing a combined 460k, and they're still stressing about how they can make San Diego work financially. Decent homes are going for about $1.5 million there, and with current interest rates, you're looking at monthly mortgage payments will in excess of $10,000. They also have three kids, at least two of whom will require daycare, and that will likely run... like another 4k per month.

So yeah, they'll feel the squeeze even with their high salaries. It's so, so hard for families with children to make something like this work.

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LonelyStoner
05/12/24 4:10:35 PM
#3:


Almost impossible unless you make 3 figures or more a year.

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archizzy
05/12/24 4:12:01 PM
#4:


It's definitely harder in a high cost of living area, even though salaries tend to be higher. I know a guy that moved from San Diego back here to the Midwest and even though he was just a regular guy scraping by out there, his house had gained so much value he sold it for over a million moved back here and bought an amazing top tier house for like $450K and paid in cash, bought him and his wife new vehicles and is 100% debt free and lives quite well now and has a boat, a motorcycle, and all kinds of extra stuff because he has a decent job but has no house or vehicle payment and still was able to put a chunk of money into the bank. He makes way less money now but he gained so much more and his dollar is so much stronger here.

I don't know why more people don't do that honestly. I get it, not everyone enjoys the Midwest but there are some pretty nice places in the Midwest where prices haven't gone too crazy yet. We have a number of people in their 20's at my job that started in the last year or two that have all bought decent houses and are supporting families on their salary and its not a crazy high paying job to start out as.

We have great benefits but actual pay is lower than city utilities. They are able to do it on like 55K a year.

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xAzNPimP4LiFex
05/12/24 6:07:50 PM
#5:


No chance of it happening unless you or your partner make huge money in tech, finance, or healthcare.

Only options I can think of to buy a house in a HCOL area are be rich yourself, marry someone rich, or you (or your partner) be born in a rich family.

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a-c-a-b
05/12/24 6:14:34 PM
#6:


I personally know only 2 people my age who own homes.

One of them got significant help from their parents and the other bought a house with inheritance money from their grandparents.

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YoBlazer
05/12/24 6:43:58 PM
#7:


archizzy posted...
I don't know why more people don't do that honestly.

The story you posted probably does sound like a dream scenario for some people, but you have to be very lucky and stumble into the opportunity. The odds of a young person buying in a cool market, then watching their equity explode in ten years as the market turns red-hot, and then cashing out to live the good life... are very slim.

Even if you *were* sitting on a mountain of equity that you could cash out tax-free (married couples get 500k tax-free gain on the sale of their primary home, single people get 250k), you'd still need to be willing to relocate far away, and many people have things preventing them from doing that.

I can actually use my brother's neighborhood as an example. In 2021, he bought a very modest house in an area of Los Angeles county that was clearly working class (mostly 3 bedrooms, all built before 1950), but since it's LA, these simple homes are still worth like 900k now. When I look around his street, I notice that all of his neighbors are normal blue-collar folks who bought these homes decades ago, when it was affordable for average-income earners to actually do that. They're now sitting on mountains of equity, yet hardly any of them move out.

All the areas around them have grown more expensive too, so like you said, they'd have to move to completely new places at this stage of their life. Also, their grown children, who usually live with them because they are priced out of getting their own places, would be totally screwed. So you have situations where the house is worth a million bucks, but it's a cluttered piece of crap with multiple generations living inside and like five cars parked outside.

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thronedfire2
05/12/24 6:45:23 PM
#8:


well it's pretty unlikely without generational wealth, and it's only going to get worse.

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Hickey_Blvd46
05/13/24 3:20:48 AM
#9:


Yikes that is pretty sad

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Glob
05/13/24 3:30:54 AM
#10:


LonelyStoner posted...
Almost impossible unless you make 3 figures or more a year.

I think most people make over a hundred dollars per year. Or whatever other currency.
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DarthAragorn
05/13/24 3:33:08 AM
#11:


almost impossible

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008Zulu
05/13/24 4:24:07 AM
#12:


Glob posted...
I think most people make over a hundred dollars per year. Or whatever other currency.
Maybe it's the mid 19th century where they live?

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theAteam
05/13/24 4:58:42 AM
#13:


People with normal salaries dont buy there

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Nukazie
05/13/24 5:15:27 AM
#14:


thronedfire2 posted...
well it's pretty unlikely without generational wealth, and it's only going to get worse.
just work harder

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Hickey_Blvd46
05/13/24 9:36:32 PM
#15:


theAteam posted...
People with normal salaries dont buy there

Lord its sad that you have to be in a rich family in order to own a house in a HCOL area no matter how hard you work

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vycebrand2
05/13/24 10:08:35 PM
#16:


YoBlazer posted...
The story you posted probably does sound like a dream scenario for some people, but you have to be very lucky and stumble into the opportunity. The odds of a young person buying in a cool market, then watching their equity explode in ten years as the market turns red-hot, and then cashing out to live the good life... are very slim.

Even if you *were* sitting on a mountain of equity that you could cash out tax-free (married couples get 500k tax-free gain on the sale of their primary home, single people get 250k), you'd still need to be willing to relocate far away, and many people have things preventing them from doing that.

I can actually use my brother's neighborhood as an example. In 2021, he bought a very modest house in an area of Los Angeles county that was clearly working class (mostly 3 bedrooms, all built before 1950), but since it's LA, these simple homes are still worth like 900k now. When I look around his street, I notice that all of his neighbors are normal blue-collar folks who bought these homes decades ago, when it was affordable for average-income earners to actually do that. They're now sitting on mountains of equity, yet hardly any of them move out.

All the areas around them have grown more expensive too, so like you said, they'd have to move to completely new places at this stage of their life. Also, their grown children, who usually live with them because they are priced out of getting their own places, would be totally screwed. So you have situations where the house is worth a million bucks, but it's a cluttered piece of crap with multiple generations living inside and like five cars parked outside.
They could move to the country buy a house and acreage for a 3rd of that equity and have 600k left

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Luigi_and_Tails
05/13/24 10:15:08 PM
#17:


I live and work in London. Yes. It happens.

Edit: I earn about the average household income for London. I live alone.

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LeoRavus
05/13/24 10:23:22 PM
#18:


If people making average salaries want a house their best bet is to move out of expensive areas. Or struggle paying rent that'll go up until you die.

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DarthAragorn
05/13/24 10:32:51 PM
#19:


LeoRavus posted...
If people making average salaries want a house their best bet is to move out of expensive areas. Or struggle paying rent that'll go up until you die.
You can't expect everyone that wants to own a house to move to fucking Bumfuck, Idaho.

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Glob
05/13/24 10:40:50 PM
#20:


DarthAragorn posted...
You can't expect everyone that wants to own a house to move to fucking Bumfuck, Idaho.

Not all cheap places are like that. Leaving the US helps.
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ClayGuida
05/13/24 10:43:24 PM
#21:


Easy if you're rich. Impossible if you're poor.

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NoxObscuras
05/13/24 10:45:12 PM
#22:


Really unlikely, until something changes. Both house prices and loan interest rates are much higher than they used to be. My mom was making somewhere around $80k annually when she bought her house. If I were to buy her house now, at it's current value, I'd need to make nearly $200k annually just to afford the mortgage (not even counting utilities and food). Even worse if I try to buy into a more expensive neighborhood than hers.

LeoRavus posted...
If people making average salaries want a house their best bet is to move out of expensive areas. Or struggle paying rent that'll go up until you die.
The problem though is your job. I live in Los Angeles, and the houses in most parts of LA are over $700k now. If I move way out to the valley, like Temecula, Hemet, or Beaumont, then there are more houses in the $300k to $600k range. But if I can't find a good paying job out there, now I'm commuting 2+ hours every day to my current job. When I was younger, one of my mom's co-workers did that. Bought a house in the valley and then commuted 80 miles one way to work. He hated that commute


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DarthAragorn
05/13/24 10:46:14 PM
#23:


Glob posted...
Not all cheap places are like that. Leaving the US helps.
Damn. strong contender for dumbest post I'll see all week, and I read the topic where the dude admitted to agreeing that his race was superior to others.

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Glob
05/13/24 10:47:18 PM
#24:


DarthAragorn posted...
Damn. strong contender for dumbest post I'll see all week, and I read the topic where the dude admitted to agreeing that his race was superior to others.

Why do you think its dumb to suggest that leaving the US might be an option worth considering?
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DarthAragorn
05/13/24 10:48:11 PM
#25:


Glob posted...
Why do you think its dumb to suggest that leaving the US might be an option worth considering?
Why do you think it isn't dumb to suggest that people that can't afford to live in the US are somehow going to be legally taken in by other countries?

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ClayGuida
05/13/24 10:50:11 PM
#26:


Glob posted...
Why do you think its dumb to suggest that leaving the US might be an option worth considering?
For one, cost, second who'd allow you to move in?

Do you think Europe nations would welcome you in with open arms? Especially if you're too poor to afford a home in the US?

Do you realize what's happening across the globe at all? Most nations are shutting off most immigration and are being headed by fascists who only want their citizens in their country. So unless a job is paying you to live there, you're not just moving to Italy, France, Spain, UK, Hungary, or Poland.

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#27
Post #27 was unavailable or deleted.
DarthAragorn
05/13/24 10:53:51 PM
#28:


I legitimately can't get over how monumentally fucking stupid that was. Like you think someone that can't afford property here can just fly to a random country, get a job and documentation and just buy a house?

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Glob
05/13/24 10:55:25 PM
#29:


ClayGuida posted...
For one, cost, second who'd allow you to move in?

Do you think Europe nations would welcome you in with open arms? Especially if you're too poor to afford a home in the US?

Do you realize what's happening across the globe at all? Most nations are shutting off most immigration and are being headed by fascists who only want their citizens in their country. So unless a job is paying you to live there, you're not just moving to Italy, France, Spain, UK, Hungary, or Poland.

Theres a lot to unpack there.

Firstly, I never said anything about Europe. But yes, a number of European nations would welcome me with open arms. Is that true for everybody? No, but I never tried to claim it would be.

The idea that you need lots of money to move to another country is just bogus. As with many things, it will help, of course. But I moved to another country not so long ago and that cost me a grand total of sweet fuck all.

Unless a job is paying you to live there? Thats pretty much how all employment works, is it not? Yes, if you want to move to another country, the first step is probably to get a job if youre not super rich, but thats true of any sort of significant move.
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bsp77
05/13/24 10:55:50 PM
#30:


Hickey_Blvd46 posted...
marry someone who has a lot of money
Kinda what I did. My wife, while not rich, had over $100k in savings from living with her parents in her 20s and just paying them a few hundred a month

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Glob
05/13/24 10:57:09 PM
#31:


DarthAragorn posted...
I legitimately can't get over how monumentally fucking stupid that was. Like you think someone that can't afford property here can just fly to a random country, get a job and documentation and just buy a house?

Thats not what I said at all.

Firstly, the job normally comes before the flight. Secondly, I never said anything about just buying a house. However, the right kind of move could make it a much more realistic prospect.
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LeoRavus
05/13/24 10:58:15 PM
#32:


DarthAragorn posted...
You can't expect everyone that wants to own a house to move to fucking Bumfuck, Idaho.

What can be done about it? People in high cost of living areas actually bid against each other paying more than the home owner was asking. The government regulating how much someone can offer for a house would set a dangerous precedent.

There are places in the US not 100 miles from civilization where regular people buy homes.

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NoxObscuras
05/13/24 11:00:02 PM
#33:


LeoRavus posted...
What can be done about it? People in high cost of living areas actually bid against each other paying more than the home owner was asking. The government regulating how much someone can offer for a house would set a dangerous precedent.
They don't need to regulate normal people outbidding each other. They need to regulate companies being able to just come in and buy up housing for profit.

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Hickey_Blvd46
05/14/24 2:06:33 AM
#34:


^that I 100% agree with

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eggcorn
05/14/24 2:50:50 AM
#35:


They go super fast, so very likely.

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Hickey_Blvd46
05/14/24 2:44:26 PM
#36:


Bump

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Glob
05/15/24 5:07:08 AM
#37:


I notice those people who needlessly bashed my comment havent returned.
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MedeaLysistrata
05/15/24 5:09:52 AM
#38:


It really has nothing to do with cost

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#39
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Glob
05/15/24 6:33:06 PM
#40:


[LFAQs-redacted-quote]


And yet if it was, youd be able to provide some reason why, rather than just trolling.
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#41
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Glob
05/16/24 6:43:31 PM
#42:


[LFAQs-redacted-quote]


Not being able to buy a house is not the same as not being able to afford housing. Theres also the fact that a lot of jobs that hire people internationally will pay for your flights and your housing. Its clearly something that youre dismissing because you know nothing about it. Ive got experience of doing it.
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DrizztLink
05/16/24 6:45:44 PM
#43:


"you can't afford a house? why not try moving 15,000 miles after jumping through all the hoops and maybe finding a country that accepts Americans in general, let alone poor Americans"

"why are you calling my idea unrealistic "

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TendoDRM
05/16/24 6:50:56 PM
#44:


Glob posted...
Not being able to buy a house is not the same as not being able to afford housing. Theres also the fact that a lot of jobs that hire people internationally will pay for your flights and your housing. Its clearly something that youre dismissing because you know nothing about it. Ive got experience of doing it.

Yes, this is very useful information for the people working at my local Target. I'll go let them know that if they're having trouble affording rent, they should apply for international jobs in Vietnam or wherever.

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DarthAragorn
05/16/24 6:51:45 PM
#45:


Glob posted...
Not being able to buy a house is not the same as not being able to afford housing. Theres also the fact that a lot of jobs that hire people internationally will pay for your flights and your housing. Its clearly something that youre dismissing because you know nothing about it. Ive got experience of doing it.
What the actual fuck do you think this topic is about

Holy shit how does it get worse with every post

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Glob
05/16/24 7:04:14 PM
#46:


TendoDRM posted...
Yes, this is very useful information for the people working at my local Target. I'll go let them know that if they're having trouble affording rent, they should apply for international jobs in Vietnam or wherever.

And thats moving the goalposts.

But I never suggested it was a solution that works for everybody. Youve assumed a whole lot here and changed what were talking about in an effort to make my comment seem ridiculous. If youve had to do that, it cant have been all that ridiculous in the first place.

DarthAragorn posted...
What the actual fuck do you think this topic is about

Holy shit how does it get worse with every post

People who cant afford to buy a house because theyre expensive in the place they live.
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#47
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DrizztLink
05/17/24 6:27:32 PM
#48:


"I never said it was a solution for everybody. It isn't even a solution for most people. It's maybe a solution for 10% of the population."

"why does nobody like my solution"

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Glob
05/17/24 8:09:25 PM
#49:


[LFAQs-redacted-quote]


As somebody who moved from a high cost of living area in the UK to a low cost of living area in Vietnam, Id say Ive got a better read of it than you guys have. Literally nothing youve said to attempt to refute my original statement has been of any value.
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DarthAragorn
05/17/24 8:31:59 PM
#50:


No, it's you thinking "oh anyone can do it why don't they just do it are they stupid" just because you did it, which is dumb as fuck and it's getting worse every time you defecate all over your keyboard and post ITT.

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