Today the Mrs. and I got a crazy idea. We were driving home from Target and decided to stop in and look at a new housing development going in on the other side of town.
The houses in this community are selling in the mid $400,000 range. That is very low for the bay area. Two years ago they would have been more like $600,000. So, we thought we'd check it out.
We liked what we saw, but that is not a good sign for me. Any time in my life that I have looked at a house and liked it, something has come up to keep it from happening.
We got back to the sales office and spoke with the finance person to figure out what the payments would be on one particular home. Based upon the current interest rate, my income, and our "good enough" credit ratings, she came up with a payment.
$3522.00 per month.
Ouch.
After the car payment that leaves $200 for bills, gas and groceries for the rest of the month.
Pathetic.
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8 comments:
Man, I know how you feel.
OUCH! I thought it was bad when friends of ours took on a $1000 a month mortgage. I wouldn't even want to THINK ABOUT $3k+...especially now.
No bueno!
Hey what the hell. Get the movers in and buy that house. Eating is very over rated anyway.
Yeah, driving too...
OUCH is right!!!
Home prices are expected to decline through the end of next year. I strongly discourage purchasing a house anytime soon.
Check out the blogs "Bubble market inventory tracker" and "Housing Panic" if you are curious.
Seriously. Keep renting.
So basically, you would have to forego everything but the most basic heating/cooling, never go out or eat out, eat only mac and cheese and hot dogs for every meal, and only drive back and forth to work?
The working poor... You would think risking your life for 40+ hours a week would mean you could actually have a decent standard of living in this country. You need to get out of the bay area, my friend...
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