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How Can Young Couples Afford To Buy A Home?

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Garden Oct 3, 2012 004I think I mentioned a couple weeks ago that there is a young couple moving in next door.  They have a six-month old and a seven-year old and they are quite excited about moving into our neighborhood, which they should be since this is such a great family area.

Anyway, at the time that I learned of their move, I thought to myself:  how can they afford to buy that house?  Sure, the house is not that expensive, but I still wondered how a young couple could find the money for a 10% or 15% down payment? I mean, that’s a lot of cash for a young couple to have, right?

Well, it turns out they don’t have it.  LOL  The woman’s parents are buying the house, and they are selling it to the young couple for monthly payments.  Now it makes sense!

Still, there are many young couples that buy homes, and I still wonder how they do it.  If you buy a home that costs $200,000, which is about the median price of a home nowadays, that means a down payment of between $20,000 and $25,000.  Where does that come from and how does a young couple making what, $35,000 per year, afford it?

Times they are a’changin’.  I know that we face a decision with our home in three years.  Do we sell it, or do we rent it out to our kids so they will always have affordable housing.  We are probably leaning towards renting it out to them, and then Bev and I will build one of those mini homes on some acreage and be quite happy in the country.

Living Simple in the country, raising some animals and writing.  That, my friends, is Nirvana for this boy!

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About Billybuc

A simple man who has found happiness as a functioning dysfunctional.

6 responses »

  1. Bil, we just had this very conversation this past weekend and we too are struggling. We have enough saved for a down payment with almost $60,000 in our savings and investments, but it is the monthly payments that would get us, because we still have students loans (3 of them between two people) and these loans take up most of our monthly expenses. Who knew to become educated would be oh so costly to us. We are grateful that right now we can share my parents mother-daughter home, but still would like something of our own. In this current economy though, we are just not sure how or when we can do this. So, this article really hit home for me and could very much relate unfortunately.

    Reply
    • Janine, I can only imagine. I have owned a lot of homes, but I was basically debt free at the time and we both had good incomes. I simply don’t see how it is possible with today’s market to own a home. Sure, there are areas where real estate is still reasonable, but who wants to live in North Dakota? LOL

      Reply
  2. Yeah, um, we’re thinking we might sell this house and buy a foreclosed one closer to town…for a whopping $29,000. Must move closer. This isolation is killing me. I’m actually glad I have a teaching job for that reason and teaching in private school? #dream!
    It’s so “free” – I show up to teach and then go home to write and take photos. Bliss. Life is getting better. 🙂

    Reply
    • Cyndi….$29,000? LOL Is that even possible in today’s world? Well, yes it is if you are flexible and willing to move. Sounds like a good plan to me; isolation can be very tough. I’m so happy that you love that teaching job; part time is the way to go for sure.

      Reply
  3. We wonder the same thing. It’s so expensive here to buy a house. In reality, you won’t find anything for under R1 million. And that’s just a standard house. How on earth are we supposed to afford a R100 000 down payment? Insane. We’re renting right now, but it’s depressing when the annual renewal comes along with the 10% increase. Greedy, greedy people. Like Cyndi, we’ve also been checking out the possibility of foreclosed ones. But of course with me not having a steady income, it’s impossible right now. Just got to keep pushing forward, never know what the year might bring. Great post!! 🙂

    Reply
    • Mel, I agree, we never know what the year will bring. I just doubled my customers in one day and doubled my income….yesterday was a good day. 🙂 Stay hopeful and yes, keep pushing forward.

      Reply

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