Outpriced in home market where I was born and grew up :(

posted 3 years ago in Home
Post # 3
Member
344 posts
Helper bee
  • Wedding: November 1999

i am sorry to hear about your situation.  I just wanted to chime in to tell you something you may not believe, but “The American dream” is not really all it is cracked up to be.  I own a house and I do truly love it, but I do not believe it is my ticket to a secure financial future nor do I believe it is better financially than renting.  There are millions of people who lost money on houses during the recession, and not all of them were people who bought things they couldn’t afford.  It is true that you are not earning equity when you rent but the costs of home ownership (maintenance, taxes and insurance) are typically higher than the amount of equity you earn in a house at first.  My opinion is that if you love the area and your network of family and friends and are happy at your jobs there, don’t leave just so you can buy a house.  Owning a house will not make you happy.  It sounds like you are not happy with your current apartment, so perhaps you can find a better place or maybe even a house to rent?  not all apartments have bad neighbors and landlords!  

Post # 4
Member
4998 posts
Honey bee
  • Wedding: April 2012

I’m really sorry. It sucks.

It’s not unusual, though, or even limited to the USA.

Plenty of people in the UK and all over the world have to accept that they will never be able to buy a house where they grew up. 

Could you move further out into the commuter belt to get something a bit bigger? We’ve had to move an hour’s commute away from where we work to afford more than a one bedroom apartment and if we were in a bigger city (like London) we’d be looking at a two hour commute and not even able to afford a small studio in the city.

Post # 5
Member
7664 posts
Bumble Beekeeper
  • Wedding: July 2013 - UK

This is the exact situation DH is in. London prices were just too high, so we had to move out into commuter land. It means long commutes, but that is better than living in a one bedroom flat in what is basically the ghetto, which would have been the alternative.

How far would you be willing to commute? We both commute for over an hour to work.

Post # 7
Member
7664 posts
Bumble Beekeeper
  • Wedding: July 2013 - UK

@SpecialSundae:  And how ****ty the areas are. DH’s parents’ house is worth almost exactly the same the house I grew up in is. The difference? I grew up in an 8 bedroom semi detached with a 150ft garden in Manchester. They have a 2.5 bedroom terraced house in a **** part of South London, with a 6ft bt 6ft concrete yard out back!

Post # 8
Member
4998 posts
Honey bee
  • Wedding: April 2012

@Rachel631:  It’s depressing how much my grandparents’ house in Barnet is now worth now, given what it was sold for 20 years ago (add a zero).

Post # 9
Member
6273 posts
Bee Keeper
  • Wedding: October 2013

@iloverocks:  i know many people who rent in the DC area because they can’t afford to buy.  i also know many people who would rather rent than buy because it costs a lot more to own a house in the long run than not.

don’t stress yourself out, if you want to stay in the bay area, find a beautiful house to rent, it doesn’t have to be an apartment.

Post # 10
Member
11734 posts
Sugar Beekeeper
  • Wedding: November 1999

I agree with the renting a house idea.  You get the best of both worlds.

Post # 11
Member
274 posts
Helper bee
  • Wedding: October 2014

same problem here outside of DC.  my FI and I make over 130k combined but single family homes start around 400/500k.  I wouldnt feel comfortable on our current salary buying a house that expensive.   Luckily we were born and raised in an area where the cost of living is much lower.  We’ll move back there eventually when were ready to buy a house and spend under 200k.   I don’t understand how so many people afford homes over 500k. though I guess if both parties involved make at least 100k, it would certainly be feasible. 

 

Post # 12
Member
3016 posts
Sugar bee
  • Wedding: July 2014 - Prague

I’m from the Bay Area as well. I had to give up my dream of buying a home a long time ago. It SUCKS.

Post # 13
Member
11772 posts
Sugar Beekeeper
  • Wedding: May 2013

Does living costs get cheaper 30 minutes away? What about an hour away?

Post # 14
Member
7281 posts
Busy Beekeeper
  • Wedding: October 2011 - Bed & Breakfast

I just want to offer some sympathy. It really does suck to realize that something you really want may be out of reach for a long time. We live in the DC metro area. We’re a 90 minute commute from the city, and the average sale price in our area is $600k. You have to move at least 2 hours away to get a single family under $400k in a good area. We spent 10 years saving a huge down payment to make home buying affordable for us. It can be done, but it takes a lot of patience and self-discipline to make it happen.

Post # 15
Member
1822 posts
Buzzing bee
  • Wedding: May 2013 - Pavilion overlooking golf course scenery, reception at banquet hall

Don’t feel obligated to buy something you don’t want (1br condo) simply because you think you have to own something. I agree with the person earlier in this thread who says the American Dream isn’t all it’s cracked up to be. It costs a LOT to own a home – especially in your area. Mortgage is such a tiny percent of the actual costs of owning a home, yet people always seem to focus on “mortgage payment = how much I pay per month for a home”. Remember, rent is the MAXIMUM you’ll ever spend on your home per month, while mortgage is the MINIMUM you’ll spend. Property taxes (in the bay area, I cannot imagine!), homeowners insurance, repairs (BIG ones: we are only 3 months in and are working on an unexpected $5k project because something didn’t turn up in the inspection), lawn care, utilities doubling or tripling because of the extra space… it’s seriously expensive. And if you want to buy a 1br now and save up for something else when you start a family? The costs of buying/selling (closing costs, realtor fees, etc) are huge as well.

I say rent, enjoy your free maintenance team, make an aggressive savings plan (big % of each partner’s paychecks, invest!), and reevaluate later down the line! Besides, the housing market is insane all across the country this year, things are selling for higher than they should. If you have such serious doubts, definitely wait. Moving to Portland etc, well, a forum won’t be able to help you make that decision. That’s gotta be between you and your husband.

Post # 16
Member
3769 posts
Honey bee
  • Wedding: December 1999

I ditto renting a house. Another option might be a town house-we had an end unit and it was way better than an apartment.

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