Wah, housing is unaffordable in the US

Question

Wah, housing is unaffordable in the US

wah, housing is unaffordable in the US.

go to zillow, type in 200k max price for single family homes, not condos or anything else

instantly flooded with red dots everywhere, literally everywhere including the north east

wahh these houses are shitty / bad location / etc.

uh, yeah, if you're just breaking into the housing market are you expecting the perfect house for cheap? everyone loves to bring up how boomers bought houses for 50k back in the day, do you think those houses were amazing, pristine condition, perfect school zones? of course not, they were awful, and making a high salary was a lot harder back then. boomers took a gamble and won. well you are gonna have to do the same.

what is the prevailing wage in that area? houses will always be ~4x the gross annual household income which is unaffordable for most americans.

doesn’t mention state or region

bro just buy a house in a shitty area that’s 2 hours from the city where your job is bro

In terms of $ per sq. ft, adjusted for inflation, housing costs haven't actually surged by all that much, especially in America where we can freely build.

ignoring the impact of mortgage rates

which is unaffordable for most americans.

Only because they are paypigs who spend every cent on stupid shit.

just move to the middle of nowhere

how am i supposed to work

Including them, houses have simply gotten larger over time. Think about the little ranches that used to dominate the scene, now it's 2 story McMansions at minimum.

Mortgages did distort the total cost of homes though. Back when 10% was typical and it was hard to qualify for a mortgage, there was far less demand, and the overall cost of a house was lower. Post mortgage era demand is tied more to the monthly payment.

median existing home sales price is $414k.
$414k with 10% down at 6.5% for 30 years is about $2.7k/mo plus another $700/month in taxes and utilities or $3.4k/mo total.
median household income is $80k or about $60k after tax or $5k/mo.
so $1.6k/mo left over to cover retirement, food, transportation, healthcare, home maintenance/upkeep, childcare, etc. for two adults.

that's called being house poor.

plenty of remote jobs. or a hybrid job where you go to the office once or twice a week.

I drove by a place like this yesterday. Worst neighborhood in the city. Windows boarded up. Roof looks so bad I don't think shingle replacement alone would cut it. Listing looks like the idea is for you to buy the lot, demolish the house, build new.

im fully remote and have worked remotely for the last 6 years. remote jobs are getting rarer by the day.

buying a house you can't afford

Let's assume you're not retarded though and get that mortgage only after saving up at least the full price of the house.
$41k downpayment
rest goes into ARCC
dividend from 373k in ARCC pays for that whole mortgage you dont have to do anything
ALSO that stock appreciates in value over time you have turned 414k
into 828k
of assets
all of which are appreciating
like magic
but no
stupid people with not enough money to even get a used corolla up front buy houses on loans they cant afford then wonder why
slightly less stupid people save up for a house then buy it up front which is a complete waste but at least you aren't getting raped by banks
smart people? we just win

yup, buying land is also an option
then you can just build a cheap small house, add additions over time, etc.

if you have the cash you should just buy the damn house, you're not gonna beat 7% interest on the stock market dude

new construction is never cheaper than existing construction. labor and materials today are always more expensive than labor and materials from 5, 10, 20, 50 years ago. always and without exception.

yeah except that's not true at all lol

if you have the cash you should just buy the damn house

common retard normalcattle misconception
take the leverage instead

you're not gonna beat 7% interest on the stock market dude

ARCC dividend with the remaining 90% will pay the whole house off and you have a house + your ARCC shares at the end making you 2x richer than you would be wasting all that money on buying the house up front.
don't be a normgroid

if you're just breaking into the housing market

This logic is destroying civilization.

you're doing a very risky thing and just assuming it'll work fine

go look up the price of new construction builds over time. do they go up or do they go down? go look up the operating margins of the large, publicly traded builders. they're probably relatively flat as a % over time.

new construction is cheaper than 50+ year old houses in the north east at least. that i know

you're not gonna beat 7% interest on the stock market dude

Haha

it will work fine, the risk of going tits up is lower than the risk of missing out on the net worth boost from leveraging your assets

then you're comparing apples to oranges. is the home style comparable? what about the lot size and home size? are you including the sizeable HOA associated with new builds or the massive tax bills on improved land that generally occurs after your first year of ownership?

what I'm doing is brainstorming ideas for people who want a house. buying land and building is a good idea if you live in the north east

you are right the SPY will probably beat that
but however
ARCC has outperformed the spx by 3% a year since inception
it survived 2008, 2020
do your research, literally
first crack at collecting collateral when businesses fold
everyone else gets raped but arcc loses maybe 10%-20% from the loan
high interest rate environment = collect higher money, lower interest rates = more businesses borrowing
special dividend
capital preservation
you win in all weather conditions
big, FAT dividend and the stock also goes up
i love this fucking piece of shit ticker
i will buy it until im 60

just fuck off dude you're obviously here to shill your favorite stock. go away

and you're complaining about poor people who make retarded decisions like take loans they can't afford to pay
or maybe you are one it's hard to tell

i'm not doing that at all but thanks for the bumps

they were in white neighborhoods thoughever

Homeowners skew above average in terms of income. Renters are below average. Median income of a homeowner is like 110k.

the other consequence of this is these niggers get huge fucking tax deductions for that mortgage interest and the government wonders why its in debt

The map of 200k houses is basically the map of negroes and crime.

social media broke normalfags minds hard

they all think they deserve to live in modern stylish 4000 square foot homes

in some areas, yes. some are just white and poor. you should like those

dude just buy a collapse shit box in the ghetto for $200k

as mentions, the sweet spots are the lower middle class/working class white areas. Basically 0 crime and disorder and yet affordable houses. I live in one and despite being kind of boring it's hard to leave because it really does feel like the pocket.

economic boom

WAAAAAAH house prices

economic gloom

WAAAAAAH jobs

You can borrow 4x your yearly income

literally everywhere including the north east

North East is a shithole full of niggers and incompetent dem politicians.
South East is a shithole full of niggers and incompetent rep politicians.
The west is full of beaners.
Literally the only desirable part of the country are vacation towns on lakes in the mid west.