How do people afford houses when they don't make that much money?

I've been working toward getting a house, and I've saved a decent amount, but I don't understand how some people just have like $10000 lying around to put toward a down payment and paperwork... it baffles me! Now I understand that I don't make a lot of money on my own, but me and my husband together make about $50000 each year and I've weighed my odds, we still wouldn't be able to comfortably afford owning a home. I want to get out on my own so badly, but it's seriously illogical at this point and frustrating. I do not want to rent an appartment because it's pointless, or rent a house, again pointless to me, I want the security that it's mine and no one can take it from me. From my understanding, most people live beyond their means, and don't care. I'm not one of those people, if I can't outright buy something, then I don't and it's that simple. I have one credit card just for building credit (used on groceries, gas and cigarettes that's it) So I'm trying to understand that people like me and my husband, who owe nothing to anyone, wouldn't be able to afford owning a home while others can. Also, people will have school loans to pay, car payments to pay, mortgage and they STILL live comfortable.

Any answered would be appreciated because I'm confused.


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Most Helpful Guy

  • "if I can't outright buy something, then I don't and it's that simple."

    Well if that is the case, you and buying a home are at odds with each other. Even if you were making double the money you were now, you wouldn't be able to buy a house outright without saving for it for quite a while. Thing is, most people who get homes CAN'T really afford it, but people are always playing follow the leader, so they "buy" a home because all their friends are buying homes. What you worry about, someone coming and taking your home, is the worry of like 99% of "home owners" right now, because the truth is, none of them really own their homes outright. They are slaves to JP Morgan, or Goldman Sachs for the next 30 years as they pay off their mortgages. They only have the appearance of living comfortably... but keep in mind how high the divorce rate is in your country, and what the number one cause tends to be of that... money problems.

    If you are really serious about owning a home outright though, there are small, cheaper homes in the southern states that go for like $75 000. It's something I've taken note of, if i ever became rich and wanted to invest in rental properties. Wise people today are buying these under 100k properties in all the oil rich southern states while oil prices are super low. If i were you, I'd just keep saving. Renting is not as big of a waste as you think. Owning a home costs money. The mistake people made pre-housing crash in the usa was assuming that their house was an asset, when in actuality it was a liability. It's only really an asset if you are renting it out. So don't think you're missing out on too much. Renting is cheaper, and gives you the freedom to save. That's a freedom most of your house owning friends don't have. The personal savings rate amongst americans has been on decline since the 80's
    oneinabillionblog.files.wordpress.com/.../...a.jpg

    The average American saves like 5% of what they make, which is abysmal compared to the Chinese, who are unsurprisingly catching up to the west.

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    • So moral of the story, use the freedom you have as a renter to save more of your money than your indebted friends, and when the time is truly right, buy a home. Personally i think you are doing the right thing atm. I recall that at the height of the housing fiasco in your country, people were able to buy homes with no money down. it's tempered a bit, but its still pretty easy to get signed on to a home, as the government has been stepping in more to keep the housing market afloat with 0% interest rates. But its really just a ruse. Don't get suckered in like the rest man

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    • im glad i could help! You and I need to chat more often ^_^ and thanks for MHO :)

    • I'd say lol I'll let you know when I have another question, though this does do good for my xper

What Guys Said 6

  • I'm fortunate enough to have a decent job as an LPN (Licensed Practical Nurse). I really started from scratch, but now I do own investments and I have been buying and selling house and condo for profit. Locations also plays a factor here because you live in the states and I live in Canada. In US, an LPN don't make as much, but in Canada they make around $70,000-80,000 Canadian dollars per year as gross income. In addition, US is pretty compact and there are also plenty of competitions out there, so the standard of living is somewhat harder than some places. My cousin in Seattle, Tacoma complains about the same thing. Her and her husband find it very difficult out there, let alone to even own a house because of the taxes, pay rate and other crap you guys have to put up with. You can only hope for the best and ask an advisor for to help you guys with financial situation and make it easier for you guys.

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  • The previous generation messed it up for our generation. Most people who can afford a house now are people who already established quite a networth or have family or relatives backing them up financially.

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    • I don't know why you blame it on the previous generation alone. That happens more often then just now.

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    • Shit I blame the fat cats in government, cause I ain't seeing any of that good money coming my way. It seems, to me, that the poor and getting poorer and the rich are getting richer. But I'm 18 now, so I can admit to not knowing enough in life to see otherwise.

    • I 100% agree. They get a lifetime pension and I'll have to work for the rest of my life carrying their fat asses lifestyle. Like your really going to increase taxes because you want to send your dumbass spoiled brat to Harvard? Let me go to fucking community collage because I'm smarter than your drug using retard child.

      That was a lot of built up rage I'm sorry. Capitalism is a load of bullshit. If they cared about our well-being, then why are we suffering?

  • Mortgages and loans.

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  • mortgages... that's how

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    • This... lol

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    • Yeah I don't have financial backup... so that's out of the question lol

    • Well, I worked until I could get a down payment, then I got a mortgage and paid that off. It is how we all do it.

  • loans and savings

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  • I've always wondered this too... i bearly can afford my rent in my shared flat

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    • I live with my mom and my rent is $700 a month ($350 each) and I can comfortable afford stuff right now but if I had my own home my mortgage is like $1000 a month. I don't get what kind of jobs they are getting because some of them are really freakin stupid, but I guess they aren't that dumb because they found the right job.

    • i see what u mean, well i guess people may do over-time, get a second job or put in the hours with both partners.

      It bafffles me too

    • I've been working two jobs since I was 19 and I still can't do it lol.

What Girls Said 2

  • Well you can either save money over decades and decades of time, but most people who buy houses on low incomes get help from their children or their parents or their spouses or they rent out rooms in their house to pay off the down payment. There was a 19 year old who was living with my friend that purchased a house at the age of 19 years old, he rented the house out to 4-5 people and his 4 friends helped pay off the downpayment by contributing to the rental cost of the property. If you buy a used or old property then it's possible to get it at a discounted price.

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  • No one guys buys a home 99% of people get loans. I've never met anyone who just bought their house straight up

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    • Totally get that I would have to get a mortgage, but people have car payments (I bought my car the day I saw it and owe nothing), car insurance (mine is $24), phone bills (I have prepaid and pay like $10 a month) and then on top of that a $1500 mortgage. That's like damn near impossible! For me anyway.

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