OT: Could you afford to buy your house?

[18IsTheMan]

Our bank recently appraised our house at a bit more than $150k more than what we paid when we bought it back in 2019. I told my wife we would not be able to afford it if we were buying a house now (at least it wouldn't be wise). Glad we got in when we did. Have known a few folks who have had to move and buy in the last year or so and it's nuts.

 

[TopHook]

Yes, and it's doubled in price.

 

[Harvard Gamecock]

Our bank recently appraised our house at a bit more than $150k more than what we paid when we bought it back in 2019. I told my wife we would not be able to afford it if we were buying a house now (at least it wouldn't be wise). Glad we got in when we did. Have known a few folks who have had to move and buy in the last year or so and it's nuts.

If you were selling a house to move in your current house then you would still be able to afford it. Both homes would have increased in value, essentially the price increases in both homes would offset.

 

[TN-Gamecock]

Yes and I purchased it 27 years ago for 40K and now it's worth about 325K...and still rising...

 

[Thunderstick]

Could definitely afford it.

I think I’m associating with financial ne’er-do-wells on this free board.

 

[TopHook]

Could definitely afford it.

I think I’m associating with financial ne’er-do-wells on this free board.

How do you think they can afford it?

 

[ToddFlanders]

Probably, but I wouldn't like the mortgage payment at all. Now would I? Not sure. That new payment is nasty and the rates today aren't the sub-3% that we refinanced under.

 

[KingWard]

I could afford it, but I wouldn't do it. If I'm going to have to up the ante that much, I'll be looking to make a change.

 

[gamecock stock]

Yes, I could afford it. Real estate is becoming more expensive. But, also, people are upsizing drastically. The average size of homes has doubled in the past 40-45 years (while average family size has become fewer in numbers).

 

[Go Gamecocks]

Depends on how much equity you get from your prior sale. If everything goes up commensurately, then you could just roll your equity and likely take out a similar mortgage.
It also depends on where you move to/from.

 

[Go Gamecocks]

But, also, people are upsizing drastically.

Until they start downsizing.

 

[KingWard]

Yes, I could afford it. Real estate is becoming more expensive. But, also, people are upsizing drastically. The average size of homes has doubled in the past 40-45 years (while average family size has become fewer in numbers).

Amazes me how people decide to build or buy the dream home when relatively close to retirement - "empty nesters" is what I mean. They are only one medical situation away from having more house than they can manage and needing to downsize, or age simply catches up with them quickly. Of course, people can do what they can afford to do, but practicality ought to play a role someplace.

 

[gamecock stock]

Amazes me how people decide to build or buy the dream home when relatively close to retirement - "empty nesters" is what I mean. They are only one medical situation away from having more house than they can manage and needing to downsize, or age simply catches up with them quickly. Of course, people can do what they can afford to do, but practicality ought to play a role someplace.

What's even more amazing to me is to see a senior couple move into their dream retirement home that is 2-floors, especially with the master bedroom upstairs. Their poor knees. (Hope I'm not stepping on anyones' toes).

 

[GoCocksFight2021]

Yes. Way more easily now than when I bought it 20 years ago.

 

[butchrobbins]

I sold my house in Hilton Head a year ago to move to Walterboro and "downsize" my mortgage. It needed some updating and the people that bought it from me put about $100k in it and sold it 3 months later for $300K more than they paid me for it.

 

[atl-cock]

If you were selling a house to move in your current house then you would still be able to afford it. Both homes would have increased in value, essentially the price increases in both homes would offset.

And the property taxes would probably be a wash as well.

 

[KingWard]

What's even more amazing to me is to see a senior couple move into their dream retirement home that is 2-floors, especially with the master bedroom upstairs. Their poor knees. (Hope I'm not stepping on anyones' toes).

Don't worry about it. Anyone whose toes you stepped on won't be around much longer anyway.

 

[atl-cock]

What's even more amazing to me is to see a senior couple move into their dream retirement home that is 2-floors, especially with the master bedroom upstairs. Their poor knees. (Hope I'm not stepping on anyone's toes).

My dream home would be single story. Even if I were 30 years younger - single story. Now if that home were in Beaufort, it would have an enormous outdoor TV antenna so that I could pick up stations from Jacksonville and Columbia in addition to Charleston and Savannah. Well, the antenna itself wouldn't be enormous, but the tower would be - MCAS Beaufort might have a say-so in this.

 

[GatorlandGamecock]

Would not buy it even though I could. Bought it in 1984 for $84,000,00, and asking price then was $125K. I am just south of Daytona and it's appraised at $350,000.00. About a mile from the beach and property here if in the right location is selling sight unseen with bidding above asking in a lot of cases.

 

[Hank Williams]

We built our house on land that my grandmother gave me. Because of the family history with the property I never considered the house purchase as an investment but an expense. Hopefully I will never have to sell and will be able to pass it to my kids. All things considered I would try my best to purchase my existing house in today's market.

Side story - my grandfather had passed 6 years prior to our house being built. During the build I had a dream that I met him walking down the street. I mentioned to him that I was building a house on his land. He told me that is what he wanted to happen. He then said he had to go because they wouldn't let him stay. I asked who was "they" and he pointed upward and said "Corporate staff". 32 years later I still get a little emotional about what I like to believe my grandfather reassuring me it was okay to have something that once belonged to him.

 

[TN-Gamecock]

Until they start downsizing.

Does not matter. In the mountains, you are going to pay....Johnson City, Kingsport and all bedroom communities have zero rentals available...I own apts and trailer parks and I have nothing and have had nothing available for several years...

Good luck getting a move in ready 2 bedroom 1 bath 900 sq feet house for less than 200K...we are running about 140-250 dollars a sq foot depending on neighborhood, style of home, waterfront or mountain view or on the top of the mountain...

I think California and Michigan must have direct pipeline to Tennessee....

Someone told me there is a movingtotennesee app. that gets a lot of traction...

My property manager told about this as she has an investor from Sacramento CA who buys up all he can in Upper East Tennessee...he bought a house in Kingsport and put it on the app. and he got a renter immediately from a guy in Sacramento CA moving to Tennessee...funny...

Our market is similar to Greenville/Spartanburg...absolutely crazy!!! Glad I starting buying rentals years ago when they were affordable...Just the rents going up and the appreciation of the property has made lots of folks here wealthy...

 

[Go Gamecocks]

Does not matter.

If you go from a larger home to a smaller home in the same market? $/sq ' is commensurate, no?

Great call on the rentals....you are in really good shape!

BTW....$388/sq' where I live. Crazy!

​

 

[CockofEarle]

Our bank recently appraised our house at a bit more than $150k more than what we paid when we bought it back in 2019. I told my wife we would not be able to afford it if we were buying a house now (at least it wouldn't be wise). Glad we got in when we did. Have known a few folks who have had to move and buy in the last year or so and it's nuts.

Put 3 on top of it & see who bites. In the meantime ck out where u could buy……
regardless of the market this stuff is old as dirt.

 

[18IsTheMan]

well, I was speaking in the context of our budget when we initially bought our house 3 years ago (obviously if we sold it now we could basically afford the same price we sold at…duh).

What we purchased at 3 years ago was at the top end of our budget, so an extra $150k would have been well out of what we were willing to pay.

Most people are house poor and we were set on avoiding that.

 

[CockofEarle]

well, I was speaking in the context of our budget when we initially bought our house 3 years ago (obviously if we sold it now we could basically afford the same price we sold at…duh).

What we purchased at 3 years ago was at the top end of our budget, so an extra $150k would have been well out of what we were willing to pay.

Most people are house poor and we were set on avoiding that.

Duh, take the monies earned & place it on the new house…..I wasn’t a biz major & apparently u didn’t sleep with darla.

 

[Prestonite]

My daughter put a contract on house being built in GSP several months ago and it is still under construction. The same house starting to be built a couple of houses down just went under contract for $130,000 higher.

 

[KingWard]

I sold my house in Hilton Head a year ago to move to Walterboro and "downsize" my mortgage. It needed some updating and the people that bought it from me put about $100k in it and sold it 3 months later for $300K more than they paid me for it.

They had their vision; you had yours. You should be okay with it as long as you got what you wanted.

 

[KingWard]

well, I was speaking in the context of our budget when we initially bought our house 3 years ago (obviously if we sold it now we could basically afford the same price we sold at…duh).

What we purchased at 3 years ago was at the top end of our budget, so an extra $150k would have been well out of what we were willing to pay.

Most people are house poor and we were set on avoiding that.

I'm not exactly destitute. I have options. But I'm far richer in the fact that what many people think they simply have to have, I don't. I enjoy living beneath my means. I don't care if my kids wind up spending most of what I have because they don't care if I spend it all. It's a comfortable place to be.

 

[CockofEarle]

I'm not exactly destitute. I have options. But I'm far richer in the fact that what many people think they simply have to have, I don't. I enjoy living beneath my means. I don't care if my kids wind up spending most of what I have because they don't care if I spend it all. It's a comfortable place to be.

At our age we have to figure out how many more yrs…..……then you can blow it out! Take the better half to a night on the town…..Chester

 

[Patriot321]

If you were selling a house to move in your current house then you would still be able to afford it. Both homes would have increased in value, essentially the price increases in both homes would offset.

Not necessarily. If you were to sell your house in Northeast Columbia, and other areas as well, and move to many areas in Lexington, you would find a big discrepancy in the costs. We have been looking at that for several months and would have to fork out (or get a higher loan) of approximately $75K to $100K for comparablr houses in somewhat similar neighborhoods. So many factors that affect it, not always a one to one tradeoff.

 

[Forkcock]

In 1999, we built our home in Mt. Pleasant for $200K. It is now valued at $775K.

I could not afford to buy it now.

 

[sdwexler]

In 1999, we built our home in Mt. Pleasant for $200K. It is now valued at $775K.

I could not afford to buy it now.

Charleston market is insane right now. Our neighbors sold for 35k above asking- site unseen in 2 hours!!

 

[Blues man]

In 1999, we built our home in Mt. Pleasant for $200K. It is now valued at $775K.

I could not afford to buy it now.

Same here. Built my home in MtP in 2006 for 210K. It was valued at 375K when I finished it. Built it on a lot I had lived on for 10 years in a mobile home. Copahee View. Did a lot of the work myself. Now its worth somewhere north of 750K. No way I would be in the market to buy what I have now. I bought the lot in 1996 for 18K. Lots in there now are running around 160K.

 

[Thunderstick]

How do you think they can afford it?

I didn't say "they." I was responding to the OP's question "Could you afford to buy your house?"

 

[Dirtpecker]

Amazes me how people decide to build or buy the dream home when relatively close to retirement - "empty nesters" is what I mean. They are only one medical situation away from having more house than they can manage and needing to downsize, or age simply catches up with them quickly. Of course, people can do what they can afford to do, but practicality ought to play a role someplace.

I'm with you, don't understand, but I guess to each their own.

Wife and I are getting ready to start our "dream home" on acreage. 2 bedrooms, 2 baths, 1200-1300 sq ft living. There will be about the same or more in garage and porches, which is where we spend alot of time. We just don't need much inside, just a place to eat, sleep, and poop. We could afford more, but why?

 

[capngamecock]

Biden is doing a hell of a job huh? First time home buyers like me are absolutely screwed.

 

[uscwatson21]

I bought a house last July and obviously the price was pretty inflated from where it had been purchased a few year prior.

However, the interest rates were so low that I was pretty much paying exactly what I would have paid had I bought the home two years prior.

 

[uscwatson21]

Biden is doing a hell of a job huh? First time home buyers like me are absolutely screwed.

Quit being dramatic.

The first Condo I ever bought. I got some of the original paperwork from the HOA and they were all sold originally in the 1980s at a 12% interest rate.

 

[capngamecock]

Quit being dramatic.

The first Condo I ever bought. I got some of the original paperwork from the HOA and they were all sold originally in the 1980s at a 12% interest rate.

You do realize that any house under $220K is a ******** now, right? And those houses that cost 220 and above are grossly overpriced, and will likely be worth less in 10 years.

 

[KingWard]

I'm with you, don't understand, but I guess to each their own.

Wife and I are getting ready to start our "dream home" on acreage. 2 bedrooms, 2 baths, 1200-1300 sq ft living. There will be about the same or more in garage and porches, which is where we spend alot of time. We just don't need much inside, just a place to eat, sleep, and poop. We could afford more, but why?

Sounds great. Post some pictures when it's finished.