True - but not always. Some people just don’t have enough income to save for a down payment. I feel for young people today. If you want to buy a house in our neck of the woods, you’re looking at a minimum of $700 to $800 thousand. How much do you need to save for a down payment? Well, if you go with the 10%, your mortgage payment (if you’re even approved) is going to be astronomical. At that point, the house owns you.
Little wonder people have scrapped the idea of home ownership, family, etc. It’s almost unattainable....unless, of course, you’re on welfare! Somehow these people breed like rabbits.
I know someone who lives in an $800,000 home. He’s a well established professional who couldn’t afford to buy the home he lives in right now.
He bought it for about $450,000 some years ago. He could only afford it then because he was buying it with the proceeds of the sale of his prior home … which he sold for $300,000 after buying it for $225,000. And THAT home was only affordable for him because he had about $50,000 in equity left over after he sold his first home (a townhouse).
quote “in our neck of the woods”
It seems to me like you need to move to different woods :)
Might I suggest Texas? You can still buy brand new 4-bedroom brick homes in amazing neighborhoods with great schools for less than half of the prices you mentioned.