Jump to content

How Do People Afford It?


TAK

Recommended Posts

The affordability calculators are not necessarily wrong. It just ends up depending on what your priorities are.  If you want to always have a new luxury car, go on frequent expensive vacations, retire when you are 50, etc. your "affordable" house is going to be lower.  It also can come down to how well you are able manage your finances. I still have a hard time explaining to reasonably intelligent people why financing a sofa or fridge costs so much more in the end than just paying cash.  What can really get you though is if that higher price is for more square feet because that means more cost to furnish and maintain.

  • Like 1
Link to comment
Share on other sites

The affordability calculators are not necessarily wrong. It just ends up depending on what your priorities are. If you want to always have a new luxury car, go on frequent expensive vacations, retire when you are 50, etc. your "affordable" house is going to be lower. It also can come down to how well you are able manage your finances. I still have a hard time explaining to reasonably intelligent people why financing a sofa or fridge costs so much more in the end than just paying cash. What can really get you though is if that higher price is for more square feet because that means more cost to furnish and maintain.

I couldn't agree more.

-50 skip cable

-50 cheaper cell plan

-600 no car payment

-700 stop eating out all the time at $$$ places

-40 cancel the gym membership

Right there anyone can have an extra $1440/month of easy money. If you use it towards a mortgage of somewhere in town, savings shoot up even more dramatically.

Link to comment
Share on other sites

I couldn't agree more.

-50 skip cable

-50 cheaper cell plan

-600 no car payment

-700 stop eating out all the time at $$$ places

-40 cancel the gym membership

Right there anyone can have an extra $1440/month of easy money. If you use it towards a mortgage of somewhere in town, savings shoot up even more dramatically.

 

$40 for gym? A good cross fit package for 2 can cost over $200 a month! lol. I would also add if you are a new graduate and hopeful for your future, just a bit of struggle today should turn into easy payments later once you account for pay raises and inflation while your mortgage payments stay frozen for 30 years. Meet anyone today that is at the end of their 30 year mortgages and it will amaze how extremely little they are paying for their house worth $300K+ today.

Link to comment
Share on other sites

  • 3 weeks later...

Both good points!  $1440/mo extra does look easy to squeeze out of a budget, and thirty years later everything does look extremely cheap...  I guess you just have to worry about making ends meet for 30 years to get there! 

Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
×
×
  • Create New...