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.
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
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.0
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