Then go on to say With a median home price of $493,900, life in Sharon is also much more economical than in the affluent communities of Brookline, Newton, and other towns closer to Boston.
I don't consider $493,900 the least-bit affordable for most families on a 50 - 60k income. Unless they already own a home with lots of equity, and the first part of the article even mentions "first home." The entire article is based on affordable housing then they talk about all these places where the houses cost 10 times the annual income of the target families.
This isn't a "bubble" article, I'm just showing the total ignorance of some media writers to reality. The average home price for the places on this list is over 300k...so figure, even at 20% down on $350,000, that's a loan of $280,000 which ends up about $2000 a month with tax and insurance, give or take. Take that $50,000 a year family, and they only bring home about $2700 a month of their income...they have $700 to live on for an entire month after mortgage payments?? I don't think so!
The photo of Fort Lauderdale Fla. area, shows what appears to be hundreds of boats, tied up at docks, IN THE WATER.
However, there doesn't appear to be any way to get individual boats from the dock to the waterway.
Is this actually some sort of "in the water boatshow"?
Or is this just yachting, Florida style?
They left out "flyover country" all together. I'm a bit miffed, even though I rarely ever bother reading Business Weak.
You nailed it. "First home"? Fugeddaboudit!!
I'll paint a "real life" picture for you, here.
After taxes, 401k, and my portion of my medical and dental I knock down a shade over $60K. I bought a house 15 years ago in the low-end part of Concord, CA. 3br, 1 ba, 960sqares, built in 1955. Paid $132K. Today, it appraises at about $500K-$525K, but it's been as high as $560K. I owe around $160K on it (re-fi'd and put $80K into a 500sq. ft. addition about five years ago), so I've got plenty of equity. Probably too much, actually, but let's just call it an even $350K.
Anyway, I've looked seriously at relocating to chop my commute by at least 50%, so that puts me into areas where "average" homes run $650K to $750K. So, say I buy a $650K house. I get a $300K loan and decide to go with a 15 year term, so my payments are about $3200 a month. My current tax basis is about $180K, so I'm in for $2,400 a year. My new tax basis of $650K puts me in for over $8,600 a year in property taxes! That's over $700 a month. Throw in $300 a month for PG&E and I'm in for another grand.
Well, just that, right there, adds up to over $4,200 and I'm only walking in the door every month with $5,200. That leaves $1,000 for EVERYTHING else for a family of six, and I'm supposedly one of the guys that's doin' alright.
I just don't see how anyone without $250K in equity (or cash) and a net income of at least $4K a month could get into a house and remain financially solvent. Tragicaly, I think a large number have, over the last several years, taken advantage of crazy loans with terms like "five years at 1.00%" and those five years have begun to run out. I'm afraid we're going to see MANY people discovering that they cannot afford a REAL house payment, and MANY of them discovering that they need to get out from under houses that are now appraising for 5%-15% less than what they paid for them, and that's going to precipitate a considerable financal disaster for many of them.
You are absolutely right. I make good money and a mortgage payment of over $600 is too much in my opinion. That puts me in a $120,000 house with some equity.
Dammit, my city is on that list. We don't want publicity.
Simply amazing, how in the world can people afford a mortgage on houses that cost in the hundreds of thousands of dollars. Blows my mind.
Thank God, Cary, NC is not on the list.