Stagnate wages, hot real estate market, tighter mortgage rules and stock market abatement makes home buying for young families a distant dream. It used to be that if you managed your finances responsibly, saved for a down payment and established a good credit, then you could buy your first home and start a family. All that sounds like a fable in today 's economy.
In California the median home was $305,000 in 2010 while in 2015 it was $475,000. That an increase of $170,000 or 55% over five years. In terms of down payment, in 2010 you needed $61,000 and in 2015 $81,000.
Many hardworking Americans are doing all the right things, yet instead of getting closer to the American Dream it is rapidly becoming unattainable. The stock market saw virtually …show more content…
Can you perhaps postpone the decision for a couple of years and consequently take advantage of a beaten up stock market? After the last crash in 2008, S&P rallied 50%, not including dividends. Sure home prices will continue its everlasting appreciation, but you could be in a better financial position and not to mention you can sleep better at night.
Often people are rushing to buy a home worried at the thought of losing out on another year of home price increases. Is owning a home today worth the potential sleepless nights and financial stress you are buying yourself into? As a homeowner I can assure you there is nothing glamours about owning a home. You will spend most of your time cleaning inside and outside the house, the rest of your time is spent working so you can upgrade appliances.
Finally, dare I suggest you rent and forget buying a home altogether? Never mind, how dare I make such an outrages statement.
Unfortunately, the current market conditions are not in your favour, and there is not much you can do, as disappointing as that sounds. You have to play with cards you are dealt and you will have to make some tough
In California the median home was $305,000 in 2010 while in 2015 it was $475,000. That an increase of $170,000 or 55% over five years. In terms of down payment, in 2010 you needed $61,000 and in 2015 $81,000.
Many hardworking Americans are doing all the right things, yet instead of getting closer to the American Dream it is rapidly becoming unattainable. The stock market saw virtually …show more content…
Can you perhaps postpone the decision for a couple of years and consequently take advantage of a beaten up stock market? After the last crash in 2008, S&P rallied 50%, not including dividends. Sure home prices will continue its everlasting appreciation, but you could be in a better financial position and not to mention you can sleep better at night.
Often people are rushing to buy a home worried at the thought of losing out on another year of home price increases. Is owning a home today worth the potential sleepless nights and financial stress you are buying yourself into? As a homeowner I can assure you there is nothing glamours about owning a home. You will spend most of your time cleaning inside and outside the house, the rest of your time is spent working so you can upgrade appliances.
Finally, dare I suggest you rent and forget buying a home altogether? Never mind, how dare I make such an outrages statement.
Unfortunately, the current market conditions are not in your favour, and there is not much you can do, as disappointing as that sounds. You have to play with cards you are dealt and you will have to make some tough