Posted on 08/29/2022 7:16:57 AM PDT by millenial4freedom
A majority of new American homeowners say they’re “house rich and cash poor,” according to a new U.S. News & World Report survey.
The survey, conducted by the third-party survey platform Pollfish, asked 2,000 new homeowners in the U.S., who purchased their first home between 2021 and 2022, how they currently feel about their financial situation.
More than half of them — 59% — answered that “house rich and cash poor describes my situation.” It’s a sentiment that “reflects both the rising sales prices of homes across the country as well as some of the unexpected costs of homeownership that first-time homebuyers encounter,” according to the U.S. News and World report.
“I’m just curious,” I said, “Can’t you smell the landfill that’s right over there?” I pointed towards the west, where I had seen the signs for the landfill. The couples’ heads swiveled around to look at me.
The seller pasted on a fake smile. “I’ve never smelled anything.”
“Oh. I’m wondering if it will start to smell when it reaches 110 degrees outside. These are beautiful homes though.” And I walked out laughing.
Buyers in our neighborhood were paying up to $700K over asking during the frenzy. I know there’s a lot of tech money here in the Bay Area but that is obscene. It’ll take years before they’re in the green with their purchase.
Lady on my street put her house on the market for $725,000...accepted an offer for $700,000 two days later. The $25,000 was the “greed” layer, so I think she was wise to take the $700,000, which is still high and a good price. I loved the 2-day offer.
Touche!
There’s a neighborhood in a local town that was built over a landfill that was decommissioned in the early 1960’s. Realtors hate when I tell clients about it and the fact that most reputable foundation repair contractors refuse to work there.
However, it rarely stops a buyer from purchasing there, despite the presence of multiple breakouts in flatwork from multiple iterations of foundation repair.
My son rents a basement room from his grandma. It’s a great deal for both of them. He just started a new job as an over the road trucker and is only home 1-2 days a week.
He said he wants an apartment and we’re telling him to hold off.
Key criteria are: Do you like the home and are happy? Can you afford the property taxes, HOA costs and upkeep? Can you afford the loan, insurance, PMI and other incidentals?
If you can, then someone else’s assessment has no bearing.
In the end, if you can upkeep it and pay the way, things will work out unless FJB just outright confiscates all personal property and puts everybody in a government Ghetto Hovel...
It will be exactly one year on Wednesday that my wife bought our first home. I is a little smaller than we wanted and a little higher in price but it was completely remodeled. New bath and half bath, kitchen remodeled with granite countertops and brand ne fridge, stove, and dishwasher, sink and faucet. New carpet and flooring and new entry doors
The furnace and hot water heater are older. So far the only problems have been a leak with a plumbing fitting, circuit breaker for the dryer, and thermostat for the hot water tank an I did all the repairs myself. We have a 15 yrs fixed and both the wife and I have recession proof jobs. Were very blessed.
Two young couples have moved into the just-built houses across the street. Their mommies and daddies bought the houses for them. They are clueless.
A member of the HOA had to show them how to set the trash out for pickup. That was after they had thrown it in boxes, on the curb, and into the street.
They had to be shown how to connect the hose to the faucet to water their lawns.
We don’t think they’ll last.
Six to twelve months ago houses here were being snatched up within a day, and most often above asking price.
Now they’re lingering for weeks, and many have prices reduced a time or two. Others show up again as “back on market. Not sure if that’s due to financing issues. Could be problems in the inspection process.
FOMO?
“Only a fool would ‘own’ a home now”
Do you mean “own” or “buy” (with mortgage, or cash)?
LOL, I’ve seen that too. My neighbor has an inground irrigation system. Admitted they have no clue to what one is or what it does. Their Landscaper tore out 3 big lilac bushes and part of the sprinkler system. They asked me what those pipes sticking out of the ground went too and I said I don’t know. Hard to keep straight face when I said that.
They use a manual sprinkler to water their lawn. It’s fun to watch them moving it around the yard while my sprinklers are running automatically.
Fear Of Missing Out
Deja vu all over again.
An actress named Sydney Sweeney recently bought a $3 million dollar 3,200 sq.ft home. She paid $305,000 over the asking price.
Search found: Built during the Great Depression and last sold in 1972 for a $85,500 <— wow!
https://www.dirt.com/gallery/entertainers/actors/sydney-sweeney-house-los-angeles-1203450651/sydney1/
The key for a first time buyer is to put down at least 20% (which avoids PMI) and put off cosmetic improvements and furniture purchases until you have cash to pay for them. I see too many young first time buyers run up credit cards to get the house perfect and that will almost always put you in a bad situation. You might have to live with old lady wallpaper, outdated appliances and ugly furniture for a while. The main thing is having a solid house to live in and a rainy day fund for the critical repairs that will inevitably be necessary.
Taking out equity loans or borrowing from your 401k to make cosmetic improvements is always a mistake.
Yep. That’ll put a crimp in the family budget for a few years to come.
Or, they believe the “Zero % Loans” of the furniture company......
oh ok. Thanks!
I wonder how someone 26 can have the wherewithall to buy a house like that and be stupid enough to buy a house like that? For cash?
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.