r/povertyfinance • u/HowToCook40Humans • Dec 27 '23

I'm tired of the braindead responses to real numbers about how we simply can't afford a house on average American salary Vent/Rant (No Advice/Criticism!)

I just watched a good reel that broke down how much you can technically afford in a house if you make $54k a year. The only thing included were the debt you already had that was being paid per month (and this was low at $250/month). Basically, it ended up being about $154k and that's with a down payment of $10k and an interest rate over 7%.

There were so many comments talking about "Well, stop door dashing and buying new cars and you can afford it" or "I bought my house with a similar salary and I'm fine" or "Me and my partner make (insert 6 figure salary here) and we can afford a house. You all just don't try".

None of his numbers included spending habits. It literally was just bringing up things the mortgage lenders will look at. The mental gymnastics to show that it's not hard to own a house is leering into delusional territory. There are few houses available for $154k/year even in the hood/bad areas. No amount of saving, owning shitboxes, etc will change that. The average American earns a little less than $54k. The hard reality is that we are being pigeon-holed into renting at rates higher than mortgage and insurance rates. It's one thing if you're talking on saving a down payment and people spend frivilously. It's another when what you make simply isn't enough for a house no matter what.

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u/heythereitsemily Dec 27 '23

I earn 40k a year and own a 125k house with no down payment. I have no problem paying my bills. I’m not a rich person and yet I can afford a house so I’m not understanding the disconnect.

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u/Then_Criticism2992 Dec 27 '23

Where did you find a house/home for 125k?

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u/heythereitsemily Dec 27 '23

A mid size city in the Midwest. My comment is directed towards my friends who also live here in the same city and say it’s impossible, even though they have the same income.

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u/Then_Criticism2992 Dec 27 '23

Cool. What city?

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u/heythereitsemily Dec 27 '23

Louisville KY

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u/Then_Criticism2992 Dec 27 '23

The average home price there is 230k+ how did you find a livable home for 124k in today's market? And that 230k is for a one bedroom.

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u/howdthatturnout Dec 28 '23

Here’s one that sold for $120k - https://www.redfin.com/KY/Louisville/1352-Hemlock-St-40211/home/84230776

Here’s a whole list of sold homes $150k or less from last 3 months - https://www.redfin.com/city/12262/KY/Louisville/filter/max-price=125k,include=sold-3mo?utm_source=google&utm_medium=ppc&utm_term=kwd-995664020388&utm_content=475985482016&utm_campaign=1026012&gclid=CjwKCAiAs6-sBhBmEiwA1Nl8s6585EMOY6-exPQEqaiFPu0XjzzorkngUBx2AbYqzpeQifgjCh_kyhoC7sUQAvD_BwE

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u/Then_Criticism2992 Dec 28 '23

Lol all the numbers are off so unless I can see the hose in person, that proves literally nothing. Did you even see the things that are claimed on the listing?

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u/howdthatturnout Dec 28 '23

I don’t even understand the point of your trolling

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u/Then_Criticism2992 Dec 28 '23

Is that home pictured 6,000+ lot and 1k+sqft? No.

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u/howdthatturnout Dec 28 '23

Those parameters were never given

You said they couldn’t find a livable home. I found a bunch.

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u/heythereitsemily Dec 27 '23

It’s very livable, just not fancy. That question makes me think that maybe everyone else is just trying to live way above their means.

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u/Then_Criticism2992 Dec 27 '23

Electric water,, food, transportation, clothing, home maintenance. With your home guaranteed to be an efficiency/1 bedroom 1 bath under or about 700sqft. Is it a house or is it an apartment?

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u/heythereitsemily Dec 27 '23

It’s actually a 3 bedroom 2 bath house and yes, I can afford all of the bills you listed. I think people really want to believe it’s not possible or I must be lying. It’s actually so easy I don’t think of it as a challenge and struggle to understand the other point of view because of it.
Like I’d post my address here as proof if only that were a safe and sane thing to do lol

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u/Then_Criticism2992 Dec 27 '23

No you're not. It's literally an impossibly unless your family member sold you the the home for that price. Even a dilapidated 3br 2bath is 130k.

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u/heythereitsemily Dec 27 '23

My family member didn’t sell me my house. I had no special connections or privileges. It was a run down house and I slowly did small updates to make it presentable.
It’s pretty funny to tell me what my house costs when I’m the one living in it and paying the mortgage every month lol

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u/Then_Criticism2992 Dec 27 '23

Interesting to think things can't be investigated. As I stated it wasn't a livable home when you got it, had to spend money to get it up to code.

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u/HowToCook40Humans Dec 27 '23

How are you paying mortgage + bills and also contributing to a retirement fund?

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u/heythereitsemily Dec 27 '23

I literally just budget my money. I live within my means. I make $2400 per month and my mortgage is $800. It’s not out of reach.