Usually folks signing a very high interest mortgage do so to snag property while prices are down due to the rough market then will refinance in 2-5 years when rates are lower.
As long as homes are investments, buying a home as soon as you can regardless of interest rate is the most accessible path to financial success for the average middle class American
For one thing, when you buy a home you’re basically locking in your home payment for decades. A 30 year mortgage originated in 1998 would have the exact same payment this month as it did in 1998. Unless of course you pull equity out of the home in a HELOC or refinance but that’s generally not a good idea anyways since you’re trading long term wealth for short term cash, and that’s basically always a path to economic ruin. Point is though, whatever payment you lock in with your initial mortgage it’s not going to change significantly until the mortgage is fully paid off. Even if you refinance, even considering property tax changes, your home costs are largely not going to increase. About the only wildcard is insurance which those rates are mostly determined by the risk of property loss, so as long as you don’t live somewhere that is at relatively high flood, fire or hurricane risk you’ll probably not see a dramatic increase
titanicx@lemmy.zip 1 day ago
I mean honestly good luck finding a 350,000 home. Even the homes that are 40 years old in my area are selling for 4 to 500,000. The new home build s are averaging 400 to $450,000 to start. So getting a home at $260,000 that you got would be a dream.
funkless_eck@sh.itjust.works 1 day ago
BanMe@lemmy.world 1 day ago
2300 sqft historic home in a capitol city downtown… 8 years ago… but I do have to put up with a few quirks like the homeless everywhere and the serial killer that was actively preying on them for several years, and the sword-carrying superhero who then came along to patrol and ‘fight’ this killer.
We have a security system.
some_kind_of_guy@lemmy.world 1 day ago
I want to know more about this vigilante sword man
jmf@lemmy.dbzer0.com 1 day ago
You can still find sub 50k homes, but you will have to temper your expectations for the area and condition. Can’t be afraid to learn a few renovation tricks and get your hands dirty!
titanicx@lemmy.zip 1 day ago
I ain’t moving to rural Mississippi
Trainguyrom@reddthat.com 16 hours ago
Truth is rural any state usually has affordable homes, just not the jobs. It’s a good option if you work remotely or in an extremely in-demand job like healthcare
jmf@lemmy.dbzer0.com 12 hours ago
Pennsylvania has plenty too. Yes you will have to commute or work from home, but often that’s life here in the states. Yes we are being outpriced and our quality of life is trending down, but there is still housing for those trying to get by with tempered expectations. I’d rather move to Mississippi and own something than rent my whole life, but that’s just me.
Trainguyrom@reddthat.com 16 hours ago
This is going to vary wildly by region. There’s tons of large cities where the going rate for homes is around 300k and there’s notable large cities where you’re lucky to find any property for under a million.
Depending on the market you might simply need to lower your standards if you’re filtering by homes built too recently or homes with a ton of square footage or a high number of bedrooms/bathrooms. Or you might be in a truly fucked market where your best bet is to get creative and either buy a home with friends and/or family or even buy a home with a family member or friend helping with the intial mortgage and then rent out some space or find some other hustle with the property (I’ve heard of folks buying homes & property in the country and turning it into a wedding venue for example. Or renting it out for film shoots or AirBnB or whatever else happens to work where you live. I know a guy who built an ADU just to rent out on AirBnB as a side stream of income)
That’s…extremely new even by American standards. I say this sitting in a home which was built while the ottoman empire still existed. Yeah there’s quirks and it would be nice if the home was built to more modern standards, but it’s nothing that a bit of creativity, ingenuity and maybe a contractor or two when you can afford them can’t sort out. Plus the equity I’ve gained in just a few years makes it a damn good choice that I bought when I did and didn’t wait until I could afford to buy the perfect house
Hey, the house across the street from me is listed at that right now. It’s got a pool and some nice updates, decent amount of bedrooms and bathrooms. Cute place. I live in a pretty small town so you might not like that, especially since job availability can be a struggle here even during good job markets if you’re in a white collar role. On the other hand if you’re willing to change careers entirely it’s pretty affordable. Guy who’s selling it works for a landscaping company and mows lawns on the side for several folks in the neighborhood. Or I’m thinking I’ll go be a school bus driving as a backup if things go south with my employment status for example. See above about either lowering your standards to what you can afford or getting creative if you’re in a more fucked market.
Ultimately life in this world is all about finding the best way to enjoy the opportunities available to you. If you’ve got a career you love living somewhere you love maybe it’s worth renting for an extra decade or two until you can finally afford to buy. Or maybe you aren’t fully in love with your career and/or where you live so relocating or a creative change to your finances might make sense.
titanicx@lemmy.zip 15 hours ago
I mean 40 years is really not new even by American standard. Hell I have half a dozen neighborhoods around my house that have been built within the last 2 years probably doubled almost triple the number of homes within my area. Any of the homes that are you know 30 40 years old are considered old in the area. We do have homes that are well over 100 years old within the area but 40 to 50 years is definitely not new by American standard unless you live in an area that’s literally just recently been built. We do have two or three whole cities that have basically been built within the last 40 years that those homes are still considered new wish but they’re definitely not new because they continue to build in those areas every single year.