Boomers cant afford they houses. boo hoo

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Sigmapolis

Minister of Economy
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Throw in the new tax law that doesn't allow most of us to file a Schedule A and the benefits of home ownership get real cloudy.

I bought under the old tax law. Now I can't file a Schedule A, have ownership costs, and am locked into an area I absolutely hate

I'm a mortgage guy and I've never been more bearish on home ownership

The MID was still a silly idea. Different types of debt should not be privileged because of the political connections of those owning/selling the assets behind it.

All it did was allow for sellers (and real estate agents selling on commission) to ask for higher purchase prices because they knew buyers would be more willing and able to finance higher and higher levels of debt because Schedule A would help them out.

Reducing the subsidies to an overstuffed market is good policy, even if it means some pain unwinding the overstuffed market (though inevitable no matter what you do).
 

isufbcurt

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Apr 21, 2006
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Throw in the new tax law that doesn't allow most of us to file a Schedule A and the benefits of home ownership get real cloudy.

I bought under the old tax law. Now I can't file a Schedule A, have ownership costs, and am locked into an area I absolutely hate

I'm a mortgage guy and I've never been more bearish on home ownership

Claim it as a rental property, make up a rent income amount, depreciate it and deduct all the costs associated.

PM me your address so I can send you a tax consulting bill.
 

ClonesFTW

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I look around the DSM Metro and I seriously don't know how people do it. My wife and I both make good money and I can't fathom taking on that kind of debt.

As someone in banking who reviews financials daily... There are lots of people with $400k homes going nearly paycheck to paycheck.
 

Kagavi

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Mar 4, 2013
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. . . Still love the state, (California) but when you pay 13% state income tax, 10% sales tax, and one of the highest gas taxes in the country, it is not a place one wants to retire in.

I have also looked at Texas, Arizona, Heck even looked to moving back Iowa, but living in a mild climate during November to March for the past 30 years has made me pretty soft :)

To clarify: California's top tax bracket is 12.3%, so rounded up, 13% on state income taxes means your AGI is at least $1,145,960+ (married, jointly), or $572,980+ (single).

That's quite the retirement income.

But for normal people in California, if you make a normal combined salary as a married couple in California ($112,170 - $572,984), the tax bracket is 9.3%.

Compared to Iowa's 8.98%.

Not to mention the arbitrage opportunities that exist with the salary differences in certain industries.

Living by the beach is definitely worth the 0.32% difference in income tax.
 

knowlesjam

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Oct 21, 2012
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Papillion, NE
I'm flirting with the idea of moving to Tuscon in a few years. I was surprised how cheap it was even compared to Phoenix(which I think is pretty affordable). I'd move to Austin if union wages weren't garbage there.
Check out this site if interested in Central-Southern Arizona...

https://www.cap-az.com/

The Central Arizona Project is key to the area's water supply. Fresh water is the future battleground in the Southwest...more heat...more water use...less fresh water...repeat.
 

Cyched

CF Influencer
May 8, 2009
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Whiskey is for drinking.
Water is for fighting over.

Back in my day we didn’t drink water. Damn millennials.

DCN0df_XcAA6wAH.jpg
 

DurangoCy

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Jul 5, 2010
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Durango, CO
As someone in banking who reviews financials daily... There are lots of people with $400k homes going nearly paycheck to paycheck.


What's a typical one? No savings, no taxable accounts, and no IRAs?

I'm kind of have to trick myself into saving, so I keep my savings account light, but I have a taxable investment account is pretty sizeable. I assume all the doom and gloom articles are looking for ways to spin the data in the worst light possible and we can't possible be that dumb as a county.

Are there really that many white/blue collar workers that aren't contributing to their 401K/IRAs, have nothing saved, and their whole paychecks are gone in two weeks on whatever?
 

Sigmapolis

Minister of Economy
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Aug 10, 2011
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Waukee
What's a typical one? No savings, no taxable accounts, and no IRAs?

I'm kind of have to trick myself into saving, so I keep my savings account light, but I have a taxable investment account is pretty sizeable. I assume all the doom and gloom articles are looking for ways to spin the data in the worst light possible and we can't possible be that dumb as a county.

Are there really that many white/blue collar workers that aren't contributing to their 401K/IRAs, have nothing saved, and their whole paychecks are gone in two weeks on whatever?

It is not nearly as bad as the click-bait headlines want you to believe...

upload_2019-6-17_13-51-24.png

...but we are definitely not as thrifty of a society nowadays as we were in generations past.
 

chadly82

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Sep 10, 2009
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What's a typical one? No savings, no taxable accounts, and no IRAs?

I'm kind of have to trick myself into saving, so I keep my savings account light, but I have a taxable investment account is pretty sizeable. I assume all the doom and gloom articles are looking for ways to spin the data in the worst light possible and we can't possible be that dumb as a county.

Are there really that many white/blue collar workers that aren't contributing to their 401K/IRAs, have nothing saved, and their whole paychecks are gone in two weeks on whatever?
When I was doing mortgages I constantly saw people maxing out their purchase price, the minimum down unless it was a 2nd home and then a 401k they contribute to that has a couple loans against that. A lot of the time I saw people with about 1500 in checking and savings combined but buying a 325k home. Completely stupid but because their debt ratio allows it....they do it.
 
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BillBrasky4Cy

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1.) Don't view your home as an investment.
2.) Figure out what how much you are comfortable paying monthly before you even think about getting pre-approved.
3.) Don't ask the lender or mortgage broker how much you are pre-qualified for because you probably have no business being anywhere close to that price point.
 

Dandy

Future CF Mod
Oct 11, 2012
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As someone in banking who reviews financials daily... There are lots of people with $400k homes going nearly paycheck to paycheck.
I heard my friend say once: "[Town redacted]: where everybody has money but nobody HAS money."

It's a great saying. There are a lot of people in the town that make a good income but it all goes right out the door to their brand new Escalade or $400,000 house.
 

cyrocksmypants

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Dec 29, 2008
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Washington DC
As someone in banking who reviews financials daily... There are lots of people with $400k homes going nearly paycheck to paycheck.

I worked on payday lending for 8 years. I think some people would be terrified knowing how many of their doctors are taking out $500 payday loans because they’re so overextended.
 
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