That’s not the core problem, really. Plug in the numbers for a $600k mortgage with $100k downpayment in California, and add the $1k HOA fee mentioned in the article. It comes out to $5200/mo, including property tax. This is excluding maintenance.
For a property that is quite likely not even that much better than renting. (Super market dependent — in Seattle anyways, $600k doesn’t get you even a “starter” home.)
It just doesn’t make financial sense unless the time scale is fairly long, with interest rates as high as they are.
I make a fair amount, as do my peers. I don’t find it hard to save (though student loans can require a lot of cash flow). I can live very comfortably, but that lifestyle is peanuts to what it takes to afford a home. Going to some concerts, dining out, small trips — that’s peanuts compared to the cost of ownership.
As far as I can tell, the only way for the finances to make sense in a HCOL area is 1. come into a lot of capital (stock cashout, inheritance, etc) or 2. move very far away (possibly loosing that nice job). Or 3, make a lot of other lifestyle sacrifices while still also having a well-paying job. (Edit: and I mean way more than cutting that daily coffee or yearly vacation.)
And that’s not even counting what it costs to have kids!
For a property that is quite likely not even that much better than renting. (Super market dependent — in Seattle anyways, $600k doesn’t get you even a “starter” home.)
It just doesn’t make financial sense unless the time scale is fairly long, with interest rates as high as they are.
I make a fair amount, as do my peers. I don’t find it hard to save (though student loans can require a lot of cash flow). I can live very comfortably, but that lifestyle is peanuts to what it takes to afford a home. Going to some concerts, dining out, small trips — that’s peanuts compared to the cost of ownership.
As far as I can tell, the only way for the finances to make sense in a HCOL area is 1. come into a lot of capital (stock cashout, inheritance, etc) or 2. move very far away (possibly loosing that nice job). Or 3, make a lot of other lifestyle sacrifices while still also having a well-paying job. (Edit: and I mean way more than cutting that daily coffee or yearly vacation.)
And that’s not even counting what it costs to have kids!