How can a regular joe afford to buy a house for $700,000?
December 14, 2008 · Print This Article
bluesuedeshoes asked:
I live in Iowa where real estate is much less expensive. How can people on the coasts afford to spend so much on a house?
Ok, so how does a regular joe afford a house for $350,000? Pharmacist plus veterinarian salary equal to almost $200,000 and I wouldn’t feel comfortable with the amount of loan the coastal people deal with.
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I live in Iowa where real estate is much less expensive. How can people on the coasts afford to spend so much on a house?
Ok, so how does a regular joe afford a house for $350,000? Pharmacist plus veterinarian salary equal to almost $200,000 and I wouldn’t feel comfortable with the amount of loan the coastal people deal with.
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Josh Dunaway has been a certfied Realtor in the suburban Chicagoland area for over 20 years. Aside from starting his own real estate company, he also owns a mortgage company as well.
you can’t… they can afford it because they AREN’T regular joes
find something cheaper
First, I would guess that salaries are higher on the coasts. Second, not everyone on the coasts can afford to buy a $700K house. Some of us look in the $325K range.
I live in Manhattan. Its rough for regular joe’s to afford a $700,000 house. Most don’t. There are government programs that gives opportunities to people in low and middle income families to buy houses or condos that would typically cost $700,000 or more, but at a cost basis they can afford. You have to submit an application, and the people that benefit are chosen in a lottery format. So typically, 20 or 30 people out of thousands of applications win. Take a look at this website to get an idea. Hope that helps.
they put all there money into living and have nothing else to show for it
If you can afford a $700K house, you’re not an average Joe. But there are other options that an average Joe can live in a $700K house:
1) Share with other family members. I know several people in CA live in a million dollars house with their sibblings or parents.
2) There are several mortgage loan programs that will temporary lower the monthly mortgage payment such as interest only loan, ARM loans..ect..
3) Put a large amount of downpayment on the house to lower the mortgage (money can be obtained from profit in company stocks, enheritance…)
Read the Millionaire Next Door and The Millionaire Mind Set and you will understand.
Most millionaires in this country will live next door to you. Those living in those 700k houses are often slaves to their lifestyles or they are very frugal and good investors.
By doing an option arm. They normally come with a start rate of 1% for the first five years which is also called deferred interest. Your payment of P&I would be about $1769.99 vs. $3974.18 on a 30 year fixed at 6.25% or the same as interest only at $3645.83