Your Housing Costs

[Lon]

I was advised many years ago that if I wanted to be and stay in financial good order, to keep my housing costs at or under 20% of my net income. Housing costs meaning rent/mortgage, taxes, insurance & utilities. I am fortunate to have made a nice profit on the five homes that I have purchased during my lifetime, none of which were purchased as investments.
I cringe when I hear of those whose housing costs have been and are as much as 60% (sometimes even more) of their net income and can't help wondering if the problem is having CHAMPAGNE TASTE WITH BEER INCOME.
Sure, lenders were dead wrong and overly zealous in making loans to unqualified buyers, but the buyers must take responsibility for their financial stupidity as well.​

 

[applecruncher]

While I know there are a lot of people who have simply fallen onto hard times (job loss, medical catastrophe, storms/fire, etc.) I also know many people who made their own beds as far as housing problems.

Sure the over-zealous lenders were to blame in many cases. But still, some people want to have/maintain a certain image. They buy homes that really can’t afford. They have little or no emergency savings. Big car payments, lots of credit card debt. When things go wrong they blame anything and everything except their own poor decision making.

 

[Shalimar]

People must live somewhere, even those who rent often feel the pinch re wages not equal to the cost of living. Sometimes two jobs are insufficient to make ends meet. No one should be forced to live in a hovel because of financial situations beyond their control. When I was young houses were affordable to a much larger portion of the populace than at present. Even educated young people with careers are often unable to afford to purchase a simple home. Not champagne tastes, vastly different financial climate than experienced by many of my generation, and Lon's generation before me. Times have changed .

 

[Kitties]

When I lived in and owned a house for 7 years, I noted one neighbor who probably used his house as a bank account for upgrades. Ridiculous decorative brick fencing in the front yard, in ground pool. Landscaping. Cars. I never refinanced. And while I sold it after the downturn, I still walked away with money. And how I wish I had sold it two years earlier.

I also worked with a woman who's mother and husband did "extensive remodeling" to their house, then ended up losing it. I don't know if they pulled money out with a predatory refinance loan or what. But I wondered if they wished they still had their dated house.

People were victims of predators. But I also do agree with personal responsibility. And I'm not saying I've always been super responsible with money all my life. I haven't. But I never got in debt. I sometimes wonder if HGTV is making people think that they will only be happy with stainless steel appliances and an updated Kitchen.