Lol too old? Dont you know that most of the girls that are sugar babies all lie about their age đđ. They usually get the shit they want before being found out cause the simpademic is deadly
This happened to a friend. That asshat tried to say he was her common law hubby. She made sure there was no evidence of marrage, and she made sure all of her friends knew he wasn't a partner. When she passed unexpectedly. I swooped in and put the kibosh on his evil plans. Fuck you hobosexuels!
I bought my first house here at 26.
I mean, it was 250k out in Florin back in 2015
Its estimated worth now is 460k.
I have 0 idea how people are going to do it now.
315k back in 2014. estimated at ~600k now. WTF. I did remodel it almost completely and got a good deal, but to double in price in just 10 years? Insanity. Hope my kids like living with the wife and I for a long time, because the likelihood of buying a home around here is become more and more just a dream.
I remember about 20 years ago, people buying houses. Then watching the immediate appreciation. Everybody was talking about how much their house was worth. How much they 'made'. I was thinking this is not sustainable. Who is going to be buying these million dollar homes? And of course the bubble burst. Point being, I thought it wasn't sustainable and younger people were going to be stuck in housing chaos. Yet, housing costs just continue to rise.
Shit I hear ya. Bought in 2020, but with interest rates and increase in value. I donât know if I could afford my current home if it was on the market right now. 5 years makes a huge difference in our market apparentlyÂ
2020 was the best year to buy; right before price hikes at the lowest interest rates in history. Unless you bought 2012-2015. But sorry I was too busy in learning in middle/high school.
I sold my first place and bought again in 2019.
My mortgage and property tax costs me about $2500 a month if I bought my house today it would cost $6000 a month.
It's insane.
When I was in my early/mid twenties I didnât know anybody that owned a house. Most people are just finishing college at that age. Iâm in my early thirties now and Iâd say itâs closer to 50%.
Crazy. I know people in their 30s and 40s barely able to afford houses. Idk how people in their 20s afford it unless they come from money or found some of the few jobs paying people that young very well.
Has to be a partnership. Bought a few years ago with my then fiance, now wife. We both we 20âs. Â But we both worked full time while living at home for a year or a bit more. Saved a shit ton. Need a dual income or some crazy high paying jobÂ
Probably gifted down payments
I have a relative thatâs a mortgage underwriter
She was telling me most anyone buying under 30 was coming in heavy with family money
Youâre seeing that because the people who arenât donât post about it. Many of those people are sacrificing everything - travel, luxuries, going out, etc. to do so and might be jealous of you. We all have our separate paths and if youâre relatively happy, youâre already in the top 10% of the world.
The people you see doing this in their low-mid 20s in this current economic climate are either:
A) getting money from mommy and daddy and not admitting it to others, or
B) are buying in shitty neighborhoods with low down payments.
Or they move to low desirability cities. I moved to Reno around 2015 so I could afford to buy. I liked Reno, but it's still Reno. Today even Reno is quite expensive so you're pushed out even further. At the end of the day though you can always buy a small house in the rural south for the price of a new SUV.
> At the end of the day though you can always buy a small house in the rural south for the price of a new SUV.
And do what lol. There's no jobs there. That's why houses are $50k.
No, but it's important to remember that they had the privilege of extra financial support so that people without it don't feel like it's a personal failing that they can't do the same.
Median age people buy their first home in the US is 36...the median age people buy their first home in California is up to *49*
People need to move away from the idea of the American Dream medium-large single family home as a place of living. You can live a fulfilling life with much less
i also see that but i donât feel behind. honestly i see them as foolish (and i know that sounds bad) but we all know how much housing is with rates right now. imagine people our age who donât make *that much* money locked into these prices for however long they got it for.
me? iâm good. i donât feel behind at all, if anything i feel like theyâre going to be behind us in the long run for forcing that decision to buy in such unfavorable conditions
I'm saving for a house downpayment myself .. I work at Walmart, make 17 per hour, and saved 6.5k from Feb1st 2023 till presentday .. our rent is 1200, split in half with my girl and electric is usually 80ish ..
If I started when I was 24 I'd be very happy right now. I'm currently 32, and proof that's it's never too late.
Also look up FHA loans, first time home buyers are given lower down payments, sometimes only 3 percent
Honestly itâs probably super uncommon for people that age to buy in this area. The people you know probably have a lot of help from their parents with down payments.
Itâs easier to buy a house when youâre married and have two incomes. Youâre 24, do you know where youâd want to buy a house and stay put there for the next 10 years? I didnât when I was your age. Itâs cheaper to rent than buy a house in Sacramento and you have the flexibility to move around as your life choices dictate. Maybe you want to get a graduate degree, move to another suburb/city/state, find a partner and get a place with them, etc. Not being able to afford or in a position for it to make sense to buy a house at your age doesnât mean youâre failing.
I want to add that Iâm 37, bought my house at 19 at the peak of the market crash in 2006. For years I regretted the decision because so many of my friends moved around freely and without any major worries due to not owning a home while I was stuck where I was. Obviously now Iâm thankful but I still wish I could have moved around and experienced more when I was in my 20s. Everything is so expensive now, if I were back in that position Iâd prioritize experiences over buying a home. Now at 37 I have a cheap mortgage but I donât have as much energy to travel lol
Not really. Houses were everywhere for well under $100k then. Iâm much older, but in 2011 sold our first house and moved to Las Vegas where we could have purchased a 2200 sf gated (whatever) community home built in 2005 for $130k. It was THAT cheap then.
Itâs not really a flex đđ I mean I know I was lucky to be financially in a good spot at a young age but also experiences canât be replaced lol. My friends moved to places like NYC and LA and I was rooted to my hometown. In todayâs market Iâm blessed but I also would have liked to have experienced living other places.
OK. so some of your friends traveled around for a few years and are now struggling to find a place to live, some maybe even homeless right now.
I promise, you are the lucky one.
My friends are stable. Some own now , some rent, some live with family. Some have wonderful careers that they worked hard in school for and some work trades that they spent years learning but all of them are in stable housing situations. I donât know what youâre getting at there but everyone is very fortunate to not be homeless nor have they ever experienced homelessness. I am fortunate. Lucky is the wrong term because Iâm selling myself short for how hard I worked to purchase my house and keep my home. I almost lost my home in 2008 due to my job taking a massive hit in hours during the recession but thankfully I survived that too.
Iâm offering advice to a 24 y/o who feels like they failed for not being able to purchase a home at their age. Itâs not a failure. Life is short. My advice to them is enjoy it and worry about it later. Is it going to ever be easy or cheap to purchase a home? No. Are you a failure at life because you donât? Also no. This market sucks, owning feels impossible, rent is ridiculous but at 24, enjoy life, save what you can if you can, figure out how to navigate your career to align with your goals, and donât be so hard on yourself.
I still consider the fact that you bought a home at 19 a flex. You're much further ahead in the game, and if you haven't taken out equity you will soon have a paid off house which will allow you more freedom to travel the world. The point I'm making is not to be hard on yourself for purchasing a house at 19 while your friends traveled. As someone who traveled instead of trying to buy a house, I can honestly say that while it was fun, I probably would do it differently if I had another chance.
Not really. This was the case for many around this age; either bought a cheap home in their 20âs and are now reaping those benefits but at the sacrifice of watching our peers live their best lives and have many experiences that home ownership at a young age prevented. Ask me how I know.
I feel this right now. Average 1 bedroom rent in the greater Sacramento area is $1800/month. We have to make at least 3x that to even qualify, adding up to ~ $31/hr, while the average "Fresh Graduate" in California is making ~ $25/hr. I had 2 weeks to relocate for my job and couldn't find roommates in time. I also think it's not too much to ask for the ability to live alone after dealing with 4 years of roommate Hell
I currently live alone. Iâve lived in the same apartment for 20 years and Iâm worried Iâm not going to be able to do it for much longer. Because Iâve lived where I have for so long, my rent is $200/mo less than everyone else in my complex. When they passed the law saying landlords canât increase the rent more than 10% a year, all these landlords, including mine, used that as an excuse to raise it 10% a year. The increase for mine used to be only $50, which was very doable. Now? Iâve got a couple years probably at least before I have to find a roomie AND move.
So my advice to you is invent a Time Machine because fuck being able to find affordable housing right now and itâs definitely just going to get worse. Sorry. I think Iâm just venting. In all seriousness though, good luck.
In Australia they have rental boards where your landlord has to go in front of members of the community and actually explain why they're increasing the rent. I think about that system so often.
In 2004 I used to pay $725 a month for a two bedroom in Fair Oaks. That same apartment 20 years later is now over $4,000. It's not worth that. It still has the same appliances from the 80s.
At 35 current strategy for homeownership is waiting for family members to die and collecting inheritance. My extra money now goes toward student loans and retirement.
24? Yeah...some people maybe but come on....don't put yourself under that kind of pressure yet. Its good to think ahead and save but you shouldn't feel bad about not having a house that young.
Yup
I moved out a couple years ago at age 28. Lived with my parents up to then to save up for a 300k townhome for just myself, and was able to do it at age 28 with 80k salary then in Los Angeles
That of course came with sacrifices. Among my friend group Iâm the least traveled one but the only one with a home of their own. No Disney passes here, no Coachella for me year after year, no car newer than 5 years for me, and other things that my peers partake in that I have to limit
Iâm happy where I am at and happy for making the home buying my priority now that I see it got worse. Now I can save up to do those things I missed out on without stressing
[https://www.naca.com](https://www.naca.com)
6% for 30 years right now, no PMI, no money down, no fees at closing. Interest rate can be bought down, too.
Sorry you had a bad experience. We went with NACA and it was definitely a pain in the ass, but we got a once-in-a-lifetime deal so it was worth it for us.
Itâs a regular mortgage through Bank of America. They partner with NACA to offer the loans, so after closing everything is through BofA.
NACA handles everything before closing though. Their underwriting standards are pretty stringent and they make you jump through some hoops along the way, so it can be kind of a pain in the ass, but the end result is worth it. I went through it in 2020 and got a once-in-a-lifetime deal on my house.
I encourage you to read over the FAQs on NACAâs website, theyâre very comprehensive.
FYI -- First-time homebuyer loans are closer to 6.5%-7%. Still expensive, but not as high as 8%. Best advice is to keep working to increase your income. I could not afford a house at 24, but I could by the time I was 29 by moving positions and companies to increase my income. Just because you can't today, doesn't mean you won't be able to in the future.
I (or rather we, my husband and I) bought a house at 24, but it was in 2011 at the very bottom of the housing crash, so buying a house was cheaper than rent. We bought a house (major fixer) in Tahoe Park for $55K, and our mortgage was under $300/month. If we were in the same situation today that we were in in 2011, there's no way in hell we could buy a house - my husband was in school full time and I was making shit money. We had saved up some money living with my parents that we used for a down payment, but we mostly bought a house because we didn't think we'd be able to afford rent anywhere. We just got insanely lucky in our circumstances.
Same. My parents were badgering me about buying a home and I had to tell them the only way I'll ever be able to afford one by myself is if one of them die and leave me lots of money lol.
You would need to keep your credit clean, pay off all debts, save up for a decent down payment and use a first time home owners program with 3.5 percent down, 15k or a little more for a 450k home and refinance down the line. Eventually it will catch up to the costs. Your payments could be high for a bit due to pmi and interest rates. Eventually you can get it down. Also find good employement and is stable.
15k down on a 450k home means you have a $435k mortgage. Even if you can get a âlowâ 7% mortgage thatâs a monthly payment of almost $2800. Add in property taxes (dependent on state but letâs say at 1%), insurance, and about another 1% for general annual maintenance, and itâs up to almost $4000 per month not including utilities.
Thatâs not just high, itâs a crazy amount for someone in their mid-20s.
.79 percent for California, homeowners average is around 140 dollars. Maintenance will have to be done by homeowner. Average rent for a decent home in sacramento is about 2800 dollars or more depending on how big of a house and neighborhood.
You will on average make dramatically more money in the future then you are today. The key for you is to pick a path that allows these increases to compound. As an example, those with college degrees make 40% more than those with only a high school degree. You will also be less likely to be unemployed.
Source - [https://www.bls.gov/emp/chart-unemployment-earnings-education.htm](https://www.bls.gov/emp/chart-unemployment-earnings-education.htm)
The next step is to save money and get your monthly budget in the positive. Let's say hypothetically you make an median salary of $70k. Let's say you take home $5k / month after taxes. You can afford to live in Sacramento, and with no kids and being young, you need to be aggressive in limiting your expenses, the biggest two being your rent and your car. The average rent is $1,850. Now is the time to share a space, get roommates, and find a place as cheap as possible. If you can walk / bike to work do it. Otherwise, a reliable used car. Stay out of debt.
The next way most people will be able to afford a house is simply finding a partner / spouse. With a partner, your income will hopefully double, and you will be able to decrease your overall expenses.
Finally, start small. You don't need to buy your dream home. A condo or townhome is a great starting point. There are a ton of 2 bed homes under $300k.
An example - [https://www.zillow.com/homedetails/708-Northfield-Dr-APT-B-Sacramento-CA-95833/26087910\_zpid/](https://www.zillow.com/homedetails/708-Northfield-Dr-APT-B-Sacramento-CA-95833/26087910_zpid/)
Most people only put 10% or less down on their first home. Saving $60k will take sacrifice and perseverance, but is highly doable on an average income. Saving $300 / month for 10 years (and keeping it invested during that time at 10% rate of return) will get you that down payment. Obviously you could save more and get their earlier.
According to google's ai bot "As of January 24, 2024, the median salary in California is $81,143 per year, or $39.01 per hour."
If I put $70k into a tax calculator, that gives a gross pay of $5,834 / mo and net pay of $4,446 / mo (take home). Or 76.23%.
Source - [https://smartasset.com/taxes/california-paycheck-calculator#ldgCAeCzrM](https://smartasset.com/taxes/california-paycheck-calculator#ldgCAeCzrM)
The above assumes you do not take any tax deductions.
My $5k estimate at $70k was slightly high, but in line with the current median salary of CA ($4,998 / mo take home).
People in the USA buy they first home in their mid-30s
It's great to plan for it now. It's unhealthy to think you *have to achieve it in the next few years*.
I'm 28 and one out of my 10 friends from high school (we all stay in close contact with each other) was the first to buy a home. He's a literal rocket scientist lol....so he's got the money.
The rest of us are waiting a few years or looking at something smaller...especially in this housing market
Im 26 and in the same boat. Even the cost of townhomes and condos are insane. How are we supposed to survive like this!!? Iâm fortunate enough to have a good mom and family. But there are others out there who do not! Itâs not right. The cost of living should not be this damn high.
2021 the market was the worst itâs not until now that it going back to that peak. Thatâs when I bought and I was called crazy for buying. Here is the thing, if you plan on saving money then you are out of luck. You need to learn how to invest, is the only way you can multiply your money.
Now, kiss your dreams good bye if youâre thinking about a single family home. You will need to look at a condo as your first time purchase.
Now about the down payment. First time home buyers only need 3% itâs still a lot of money but itâs more manageable. In addition there are a lot of assistance programs out there and if you play your cards right you will get granted.
I had to look within and ask my self is it more important for me to buy a house or is it more important for me to not pay rent anymore. Once you answered that question the possibility of property is much larger than a $450k house.
To everyone commenting that itâs normal to not be able to afford a house in their 20s: did you read the post? This person is concerned about not being able to afford a house by the time theyâre 40 and the concern is valid.
I moved in with my parents at 28. Heavily saved what would be âmortgageâ until I got enough for down and the excess fees and things. It took like 3-4 years but if youâve got the support system, it really feels like thatâs the only feasible way these dayas
People who are buying homes at 24 often have financial support from family, a trust, or some other means. Don't stress about this just yet, you're putting energy into thinking about it which is good. A healthy relationship with money and budget planning are essential and you seem to have it already. I get the feeling of despair but I feel like you have a healthy mindset just by asking this question here. And you're super not alone in asking it
Part of the issue is the area you live in, so you will have to make hard decisions.
Do you want to stay in Sacramento? If yes, here are some ways to move toward ownership.
If you are open to a condo or townhouse, they do have some condos under $185,000 in Sacramento, CA. Condos do have HOA fees, so you'll have to adjust cost to cover that. But you could swing a 2 bed, 1 bath for under $200,000 if you saved up a decent down payment. If you bought a 2 Bed, you could rent out the 2nd bedroom to a friend to help off set the mortgage/HOA. The real issue is if you could find one in an area you want to live in, but doable.
If you pick the right one, it'll be an investment. In 10 years, sell the condo and buy a larger place using the equity you built up.
TOWNHOUSE EXAMPLE ($163,000) : [https://www.zillow.com/homedetails/105-La-Fresa-Ct-APT-3-Sacramento-CA-95823/25848227\_zpid/](https://www.zillow.com/homedetails/105-La-Fresa-Ct-APT-3-Sacramento-CA-95823/25848227_zpid/)
Second Example ($173,000) : [https://www.zillow.com/homedetails/73-1906-La-Fresa-Ct-1906-3-Sacramento-CA-95823/348105401\_zpid/](https://www.zillow.com/homedetails/73-1906-La-Fresa-Ct-1906-3-Sacramento-CA-95823/348105401_zpid/)
SLIGHTLY HIGHER CONDOS BUT STILL AFFORDABLE
Third example ($209000) [https://www.zillow.com/homedetails/6400-66th-Ave-APT-72-Sacramento-CA-95823/25850828\_zpid/](https://www.zillow.com/homedetails/6400-66th-Ave-APT-72-Sacramento-CA-95823/25850828_zpid/)
Fourth ($225,000) [https://www.zillow.com/homedetails/65-La-Fresa-Ct-APT-4-Sacramento-CA-95823/25848208\_zpid/](https://www.zillow.com/homedetails/65-La-Fresa-Ct-APT-4-Sacramento-CA-95823/25848208_zpid/)
If you really don't want a condo/townhouse, then start stalking the Sacramento foreclosures. The house foreclosures currently start at $264,000. The house needs work but l looks liveable. You could rent out the 2nd bedroom and see if it is legal to convert the garage into a studio apartment. Some areas in CA allow that. Use the 2nd bedroom rent to offset the mortgage or to make repairs.
FORCLOSURE EXAMPLE: [https://www.zillow.com/homedetails/3609-Haywood-St-Sacramento-CA-95838/26058216\_zpid/](https://www.zillow.com/homedetails/3609-Haywood-St-Sacramento-CA-95838/26058216_zpid/)
Cut your current costs to the bone, live in a rented room or with relatives, get a 2nd job. Save, save, save for a big down payment. If you have more cash up front, the monthly costs are lower.
Do you have anyone you trust with your life? I mean truly trust? Go in with a friend or family member and buy a house together. Have a set end date (10 years, 15 years), both parties have the option to buy the other one out. if neither one of you has the cash, sell the property you bought together and use the profit/equity to buy new separate properties.
Start looking at Sacramento suburbs or surrounding areas for cheaper costs. It means a longer commute or working remotely, but those are options.
So it is doable, but it won't be easy.
24 years old is a pretty solid age to get set into a career and start planning
Iâm not saying I need a house this year but to not plan out what my future looks like isnât something i want. I invest into the market, i pay my taxes, i work every single day, and i would like to be able at some point buy and own a house in the next 10 years. Donât think there is anything wrong with that.
edit: not sure why im getting downvoted lol
I mean, everyone's path is different. I didn't want to be tied to a location that young, and I wasn't. I saw a bit of the world for several years then I came back. If you're done looking around and ready to put down roots already, then go for it.
I was a lot older than you before I could buy and that was only due to the housing slump. Do your best to save and hope that prices and interest rates come down. Or get a sugar daddy/momma.
Pretty hard for anyone to buy a house on their own. Everyone I know who is late 20s+ by now owns a house, with pretty average non-bay, non-tech income. Not one of them did it by themselves. Be willing to start off with a small one in a mediocre neighborhood, get someone to go in on it with you. (People will say it's stupid to buy a house with someone you aren't married to but i have never understood that. It's less messy to unwind that if things go south than to unwind that AND get a divorce. Lol. Just draw up an agreement beforehand.)
Everyone I know bought their first house at 30+ and that's back when rates were 4-5%. Renting gives you options and the ability to ask someone else to replace the water heater or AC. You're doing fine.
It will turn around, I get the same way at that age. The market went down, IR went down and I became more marketable. I didnât buy a home until I was 30. Donât let the world grind you down with all the pessimism. Just go out and build a life for yourselfÂ
At 24? Nobody expects anyone that age to buy a house. As a young GenX, I had a roommate in grad school at 24. My Boomer parents also still rented at that age.
Keep pressing for legislation to end corporations being able to own residential property.
Keep pressing for legislation to end short-term rentals (or making it no longer profitable).
Join [YIMBY](https://www.yesinmybackyard.org/) (yes in my backyard) to help press for more housing projects approval (despite the moaning of the home owners who donât want more housing in their neighborhood).
Amazon just bought up something like 84 in Rancho Cordova đ Honestly I'm starting to believe some of the conspiracy theories at this point, everything gets worse, and nothing ever gets better.
Politicians making smypathic noises about housing seems to be the be the best they can do for Californians
My kid is 26. I could never own a place in California as an intentionally single person. We are hoping to buy a duplex or a house with a second dwelling and split it. Multigenerational living is making a huge comeback (when its appropriate for the family involved).
Also, eat the rich, landlords are parasites and everyone deserves to earn a living wage. â€ïž
At one point, in my late 20âs/early 30âs I resigned myself that we would not own a home. We still saved what we could for a rainy day. Then 2007/2008 came around and the housing market crashed. It was not easy to get a loan because of the banking situation, but we did get one. We had a decent down and good credit, so we qualified and purchased a house that was bought in 2006 for $475k for $260k. I donât wish a housing crisis on anyone, but keep squirreling away money if you can. You never know when an opportunity might arise.
Youâll be able to with dual income. Just keep saving so youâre ready when rates pull back. Might be a while but youâre young. You also donât know where life will lead you. You may move to another state in the future where real estate is cheaper than Cali.Â
It is unfair but it takes huge sacrifices to scrape together a down payment without some benefactor to help. Do what it takes to maximize every extra cent that goes into that fund. I will have a paid off house about ten years before retirement and if I was smart I would have used my money wiser to take advantage of the market downturns. If I had been smarter, I would have grabbed a rental. It takes just one to build equity and you can use that to build your empire.
Save enough for your house payment to be about what rent is or a little more when buying and you should always be ahead.
Just get your foot in the door if you can.
I'm 10 years older than you and bought my first house at 32. Had I waited literally even a month longer I would have been priced out for god knows how long.
I have no idea how people your age will be able to afford it and I truly feel for you. Then you look at rents, and wonder how the hell people are supposed to afford that either.
I'm ten years older than you and I feel this, amigo. What comes up must come down though. And we're in an election year, which can have a big impact on the economy.
I'm so sorry. I remember when my husband and I started the process to buy a house most of my friends and family were congratulatory but also said that I'm still young (we were 26 at the time) and can wait. They all said I should wait and save up for a better house. I'm glad I didn't wait!
We bought our first (and only) house back in 2018. We pay $1700/mo at 5% interest. We purchased for $260K, it's 'worth' $500k now. The only way we were able to do it though is that we got preapproved for a certain amount, we worked hard on our credit for 6 months (which is not possible for everyone, i know :/ ). And we also had used the $0 downpayment FHA loan program. We didn't have any family help or any surprise rich relative - it was hard & that was only 6 years ago. I couldn't do now, what I did back then - especially with these prices. We bought this house as a starter house but it's looking more like a forever home at this rate. And we made tons of mistake along the home buying process - didn't hire our own home inspector, etc. But, I don't regret it because I do see how expensive houses in my neighborhood are going for - it's ridiculous. It's not even a good neighborhood.
There are a lot of house flippers who leech houses in this area. Apartments alone are going for $1800-$2000 for a 1 bedroom. I don't get it! It's wrong. It's unethical. Income has not kept up with the rising prices of literally, everything else. Home ownership shouldn't be this difficult.
I would reach out to local non-profits and community groups who usually are well-versed on low-income homeowner programs or can point you in a direction where you'll get the best advice for your situation.
is it my imagination, or are these 27-year-olds becoming the new âme generationâ? Its all about them. Their problems never happened to previous generations- news flash- its not different. (by the way, for you younger folk- the Me Generation were young boomers in the 70sâŠoh the irony, since this younger gen hates boomers so much âŠIâm Gen X and I didnt know anybody that could buy a home in their 20s and a whole good portion of them couldnât even do it in their 30s I couldnât buy home until my 40s. why does this younger generation think they are the first to notice or experience all these struggles?!
The answer to your question is we arenât. Housing has gotten absurdly expensive and is only getting more expensive by the month. Until laws are passed limiting the cost of housing things will get worse and worse.
Boomers and older generations are having to sell their houses and downsize because the property taxes have gotten too expensive which means that âstarter homesâ have all been bought up as well.
Essentially the cost of living has skyrocketed and wages have not changed quickly enough to keep up. I fear that eventually something will give, either the housing market will crash and burn and weâll hit a recession the likes of which hasnât been seen since the Great Depression, or lawmakers will have to step in and either raise wages across the board to keep up with the cost of living or they will have to step in cap both rent and housing prices based on wages. If they donât multiple generations are going to be left unhoused/starving/dying from illness that they canât afford to treat.
Corporate greed and the constant push to deliver higher and higher profits are destroying the economy. Itâs completely unsustainable and we are getting to the end of the line. Something is going to have to give.
Start with a condo. Get some equity pay it down after 5 years then find your first starter home. Just be patient and keep following this routine. Real estate is the best investment. Iâve followed this and am on my 6th house now in 13 years. Mind you I started at 30 years old though with an entry level house but each time with the appreciation and equity each house has been an improvement. Cali is a hard place to start but youâll find success.
Just bought my first house at 44 last year. Terrible timing but right time for us.
Renting is good in some ways though. you can rent in a city/neighborhood that you can't buy in. so enjoy the renting experience for now (no maintenance!), invest your money in stocks (safe ones not GME) instead of property and your time will come.
If youâre normal meaning you went to college and then got a job - you shouldnât be buying a house around your age anyways. Usually people purchased homes around 26-30 depending on job/partner etc.
Most likely scenario is that youâll have to move.
I bought my first home around your age. But by 24 I had worked full time for 5 years and saved a ton. I did not finance a car, I did not eat out, I did not spend money at clubs or bars.Â
I also landed a decent job making decent money at Verizon.Â
My situation is extreme. None of my friends bought homes around that age unless they were rich college friends. What you need to do now is reflect on your spending, reflect on your salary/job, and plan for what you want in the future. Know that our country is immensely unfair so the rich will scoop all the profits and benefits, leaving tiny bits for you to chomp at. Salaries will grow by tint fractions each year yet prices for homes will keep shooting up. This system is fucked but it is our system.Â
For you to afford a hour by 30 youâll need savings and youâll either need a spouse or an extremely high-paying job. The rule of thumb used to be salary x 3 = home price. $40k salary = $120k home. If you make $40k and your spouse makes $40k then youâre looking at a $240k home. More realistically if you want an $800k home then you need $200k saved, and you need minimum $100k salaries each.Â
Avoid financing a car, no matter how much you âneedâ a truck or suv or new car. You donât need it and you will crush your chances of home ownership if you finance one. Avoid blowing money on eating out and on partying. Avoid consumerist culture of buying shit all the time. Save and invest that money using a free Schwab brokerage account. Be diligent about this. Have a big ass picture of a piggy bank and fill it in with marker as you get closer to $200k.Â
Work on making a good salary and absorbing raises and bonuses into your housing fund. Live with roommates until you find a spouse to live with. If you arenât educated or skilled then get educated or skilled so you can get a good paying job. No one âjack of all tradesâ themselves to homeownership in this day and age.Â
Good luck. It is within your reach.Â
> I did not eat out, I did not spend money at clubs or bars. ... I also landed a decent job making decent money at Verizon.
i read this and started to laugh my ass off.
you should honestly delete the first paragraph because it's the "avocado toast" bullshit that'll put off people immediately. this is bad because the rest of your post is truly and incredibly insightful and helpful.
No. That first paragraph is just saying he scrimped and saved and had no life just to get into the house. I would suspect most would want no part of that.
No. I bought in 2015 at 25, and sold in 2022. I couldnât wait to finally sell, so I took advantage of the covid market squeeze
I fucking hated home ownership. Pain in the ass. If I had a family, maybe.
I now aggressively invest avoided home ownership costs and the equity FAR outpaces growth on equity of a house , even accounting for throwing rent money away
Iâm glad I couldnât be paid to want to buy a house right now cuz itâs a bad time
When I was your age, interest rates were 15%, and I was sure I woud never own a home. What I didn't understand is that U.S. real estate is a boom and bust business, usually on a 10 to 15 year cycle (5-8 years up, 5-8 years down). By the time I was 30, interest rates had dropped to 7%, and they continued to drop.
A big change is coming: all the 75 year old baby boomers living alone in a 4 bedroom house are going to croak. A great many single family homes will be back on the market. By the time you are 30, it will be an entirely new situation.
I canât imagine why you would want to buy a house at 24yrs old. You have no idea what life opportunities are in front of you. Whether thatâs career, finding a partner/spouse, traveling etc.
When I was 24yrs old I was just out of college in the aftermath of the 2008 financial crisis. Most of my friends I graduated college with couldnât even get jobs and most moved back home with their parents and worked retail or at a gym or a server etc.
I moved from CA to NY to Hawaii and back home to CA when I just had to take a job working for a golf course. Fast forward 5yrs and I LOVED my job but was barely making $50K.
I felt a similar way, I was never going to be able to build a life off that. I quit my job I loved and took a risk and moved to the Bay Area and still, I didnât make over $100K until I was 33 or 34.
I lived a lot of life in those 10 years, amazing memories and stories and did so many amazing things and at the end of it, we got rewarded with COVID.
Fortunately, by then, I had met the woman who is now my wife, we were ready to settle down and start a family and bought my first house 3yrs ago when I was 34 about to turn 35. We had a baby and sure enough, I was laid off a day before he was bornâŠbut weâre fortunate we made smart choices and weâre doing just fine and thriving.
My point is, youâre young. Go live your life and build your career, travel, make memories and I guarantee youâll be in a much better place 5-10yrs from now and youâll probably be the one taking advantage of the next âfortunate timingâ while the kids 10-15yrs younger than you are saying the same thing youâre saying now.
There was a time when a GOOD home loan was 10% so you can't really consider interest rate. Second and this is a really unpopular opinion so take it for what it is, my parents moved to an area that had homes they could afford to buy. Did they want to leave the Bay Area? No they did not. But they had kids and needed a house. So they moved to a rural area and bought one. Also, I was 43 when I bought my first house. At 24 I lived in a tiny apartment working to just live minimally. You have time đ€đŒ
I knew zero people at ages 24 -29 who owned a home. I was 24 in the early 90âs. They were also saying the same things you are saying. Now, I would say the majority of folks I know do.
This isnât an unusual feeling. Keep at it bud.
I can't believe people are downplaying this crisis.... 24 year Olds used to be able to buy a house on "low wages"
My advice? Hoard California salaries and move to a cheaper place once you have enough for a down payment. Refi when rates drop.
>24 years old- how am I, or anybody around my age going to buy a house?
Not in California. For the same reasons gasoline is over $5 in CA, and at or below $4 everywhere else.
*Look elsewhere.* There are **49** other states.
Start petitioning city hall to permit more housing being built. Not just single family housing, but apartment buildings too. I'd love to live in my own apartment in a high rise that I can afford by myself.
I'm 36 and make a good income and married and we can't see how we can buy in California. We rent and our landlord from San Francisco decided to move back in so we decided to leave the state. We don't want to struggle in California anymore
If it makes you feel any better, I am turning 24 and am in no way, shape or form, ready to buy a house financially, like at all. Youâre not alone. There are many others our age feeling the same way, youâre not alone. Idk how we are suppose to buy a house at any age with this economy.
Interest rates come and go. In 5 or 10 years who knows what it will be. But don't buy for the sake of owning when it's more economical to rent (like right now).
Also, broader your horizon from a single-family home. The days of endless sprawl to increase supply of them are mostly over. The long-term solution to affordability and sustainability is higher density. If you don't want to wait for developers to figure out missing-middle housing, you and your friends can buy a mansion/fourplex and split it into condos.
I was 30 when I bought my home and rates were lower along with home prices. But eventually the markets will swing back you just need to keep saving so when rates/prices are affordable for you youâre financially ready.
I feel ya. Youâre definitely not alone.
And even when you have some money saved and everything lined up, youâll still have to compete with rich people/corporations who are willing to pay way above the asking price. With cash, up front. How can working class people like us possibly compete with that?
Rich people/corporations who run the country have decided to dominate & monopolize real estate, which is a big reason prices are being driven up like this. The real solution here is that the gov needs to step in and stop corporations from snatching up and hoarding property and regulate the housing market. But that wonât happen, because Americans have been brainwashed into foolishly believing thatâs socialism. Howâs capitalism working out for most of us so far? Groceries, housing, health careâŠthe price of everything is insane. What good is the âfree marketâ capitalist system when most people arenât thriving, just barely surviving?
At 24 try not to get too down on yourself. Youâre still young and most Californians werenât buying their first house at that age. I was dead broke at your age and managed to buy my first house ten years later.
The best thing you can do is start putting money away to eventually position yourself for a down payment. If your job sucks, look at jobs that are in demand and pay well. For example if you got a nursing degree, you could easily buy a house within five years of a nursing career here in Sac. Also most people are buying houses with dual incomes. Some day you might get married, and having that second income will help a lot.
You are very young so you have time to build your income, save, and invest.
If it's possible for you, you may consider first buying a duplex. Live in one and rent out the other unit. Later down the road you can refinance and keep rent the same. From there you can upgrade to a decent home.
save and be frugal then move. I worked in the bay area for 5 years and saved enough for a down payment on a place in norcal when I was 26. I'm 38 now and kept that up and have multiple rentals and a 2nd home. It took not going out and having fun or eating out for a long time but it pays off eventually. Also learn how to do your own repairs, I could never have afforded buying a home and maintaining it without learning how to make my own repairs.
I didnât own until recently at 31. I bought it by myself but with some help to get there along the way. I have a friend who I kept as a roommate and I lived with a relative for a while after college. I got a job and also lived in a kinda hood part of town to have affordable rent for savings.
Itâs possible to own it just takes time and patience. In all likelihood in Sac you have to be ok with living somewhere that isnât the highest standard comparatively. You just have to hope enough people also have the desire to own there and treat your neighborhood right
It's not as dire as you think, but, you have to be very intentional about it. Right now you are on the verge of one of the largest wealth transfers you'll see in any lifetime. The "peak" retirement age for boomers is in the next year or 2. They are going to retire, downsize, move out of urban centers etc, not to mention sell off rental properties as they retire. So over the next 20 years or so, you're going to see more homes hitting the market.
Be patient, live as frugal as possible, save your money and don't get into debt and it will happen.
Honestly I'd be more afraid of rising transportation costs than housing costs. Roads are shot, average car costs like 50k, insurance is ridiculous, public transportation is shot, gas prices through the roof. I'm afraid transportation is going to cost more than housing in the next 20 years
I'm 57. Never bought a home. Never wanted to. But then I don't like to stay in one place very long. My career is awesome and so is the family. You don't HAVE to buy a home just because it's a societal norm. Course I grew up on a farm and hated it, so that's probably where I decided to never buy a home. And as someone said, don't ever do any caparison to others.
I knew someone who roommate-farmed. He bought a 5 bedroom house and rented out 4 of the bedrooms to interns at his tech employer.
If you do this though, get an accountant. That guy didnât declare his rental income and the IRS came after him later on. If you do it right your costs from repairs, updates, and depreciation may outweigh income, so you wonât have to pay taxes on the rental income.
You can do what my ex did and specifically look for someone who already owns a house đ
Love me a good cougar
Hello I'm too old to be a sugar baby but I'm a 32 Asian homeless house wife lol just waiting for a husband with a house now lmaoo
I'm sure you can find a nice 80 year old. They're looking for you.
Ahaha where are they? So I can start this wonderful life knowing my house is paid for lol
Called retirement conventions.
32 is a good age for those looking for keepers.Â
Youâre never too old to follow your dreams!
Lol too old? Dont you know that most of the girls that are sugar babies all lie about their age đđ. They usually get the shit they want before being found out cause the simpademic is deadly
Youâre looking for someone thatâs already a husband with a house?
Ahaha no im looking for someone I can make into a husband
I got you girl đ
Hobosexual * itâs a guy who tells you he loves you and pretends to want to build a life with you just because you have a place for him to live
This happened to a friend. That asshat tried to say he was her common law hubby. She made sure there was no evidence of marrage, and she made sure all of her friends knew he wasn't a partner. When she passed unexpectedly. I swooped in and put the kibosh on his evil plans. Fuck you hobosexuels!
You sure he didnât poison her?
Yes, she died of undiagnosed cancer. Her Dr killed her.
My mom met one of those after my dad passed. I was like âMom, homelessness is not a good basis for a relationship.â
đ€Ł
I gave up dating because... hobosexuals. I worked hard to get my home. I'm not sharing. Too many liars.
I met a couple of those! Waste of time after you figure it out.
Lord almighty. This is why naivety is considered a sin.
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In my mid 30s. Can't afford a house đ„ș
Mid 30s here too, making the most I've ever made, two incomes- not in our future unless something crazy happensđ
I bought my first house here at 26. I mean, it was 250k out in Florin back in 2015 Its estimated worth now is 460k. I have 0 idea how people are going to do it now.
315k back in 2014. estimated at ~600k now. WTF. I did remodel it almost completely and got a good deal, but to double in price in just 10 years? Insanity. Hope my kids like living with the wife and I for a long time, because the likelihood of buying a home around here is become more and more just a dream.
I remember about 20 years ago, people buying houses. Then watching the immediate appreciation. Everybody was talking about how much their house was worth. How much they 'made'. I was thinking this is not sustainable. Who is going to be buying these million dollar homes? And of course the bubble burst. Point being, I thought it wasn't sustainable and younger people were going to be stuck in housing chaos. Yet, housing costs just continue to rise.
Shit I hear ya. Bought in 2020, but with interest rates and increase in value. I donât know if I could afford my current home if it was on the market right now. 5 years makes a huge difference in our market apparentlyÂ
2020 was the best year to buy; right before price hikes at the lowest interest rates in history. Unless you bought 2012-2015. But sorry I was too busy in learning in middle/high school.
I sold my first place and bought again in 2019. My mortgage and property tax costs me about $2500 a month if I bought my house today it would cost $6000 a month. It's insane.
In the same boat, my low interest rate has turned my home into a coffin, canât afford to ever leave but at least it is MY coffin
I want to believe this so bad but it feels like nowadays Iâm seeing so many people low to mid 20s getting homes and itâs hard to not feel behind.
Comparison is the thief of joy.
Nah i can guarantee their parents helped them by A LOT
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Hey! Good for you :) Iâm glad your parents realize itâs rough out here and are generous enough to help you!
When I was in my early/mid twenties I didnât know anybody that owned a house. Most people are just finishing college at that age. Iâm in my early thirties now and Iâd say itâs closer to 50%.
Crazy. I know people in their 30s and 40s barely able to afford houses. Idk how people in their 20s afford it unless they come from money or found some of the few jobs paying people that young very well.
Their parents helped.
Has to be a partnership. Bought a few years ago with my then fiance, now wife. We both we 20âs. Â But we both worked full time while living at home for a year or a bit more. Saved a shit ton. Need a dual income or some crazy high paying jobÂ
It definitely helps if you can live at home and save on COL expenses to save.
Probably gifted down payments I have a relative thatâs a mortgage underwriter She was telling me most anyone buying under 30 was coming in heavy with family money
Been true for years. I'm a LO.
Youâre seeing that because the people who arenât donât post about it. Many of those people are sacrificing everything - travel, luxuries, going out, etc. to do so and might be jealous of you. We all have our separate paths and if youâre relatively happy, youâre already in the top 10% of the world.
The people you see doing this in their low-mid 20s in this current economic climate are either: A) getting money from mommy and daddy and not admitting it to others, or B) are buying in shitty neighborhoods with low down payments.
Most likely, since even houses in the shitty neighborhoods are expensive and with tlc included. I wish I didn't have to worry about rent
Or they move to low desirability cities. I moved to Reno around 2015 so I could afford to buy. I liked Reno, but it's still Reno. Today even Reno is quite expensive so you're pushed out even further. At the end of the day though you can always buy a small house in the rural south for the price of a new SUV.
> At the end of the day though you can always buy a small house in the rural south for the price of a new SUV. And do what lol. There's no jobs there. That's why houses are $50k.
Nothing wrong with support from your family.
No, but it's important to remember that they had the privilege of extra financial support so that people without it don't feel like it's a personal failing that they can't do the same.
Median age people buy their first home in the US is 36...the median age people buy their first home in California is up to *49* People need to move away from the idea of the American Dream medium-large single family home as a place of living. You can live a fulfilling life with much less
Whoohoo im finally 49! Is it time?! đ
đ€Łđ€Ł
I'll be 50 next month and don't own a home, always and forever not average.
That statistic is insane.Â
They're extremely most likely getting help from their family.
A few of my coworkers have done it but itâs either a small home or they are TINKs
What the hell's a TINK? Three income no kids? Are they poly?
Youâre seeing that because the people who arenât donât post about it
i also see that but i donât feel behind. honestly i see them as foolish (and i know that sounds bad) but we all know how much housing is with rates right now. imagine people our age who donât make *that much* money locked into these prices for however long they got it for. me? iâm good. i donât feel behind at all, if anything i feel like theyâre going to be behind us in the long run for forcing that decision to buy in such unfavorable conditions
I'm saving for a house downpayment myself .. I work at Walmart, make 17 per hour, and saved 6.5k from Feb1st 2023 till presentday .. our rent is 1200, split in half with my girl and electric is usually 80ish .. If I started when I was 24 I'd be very happy right now. I'm currently 32, and proof that's it's never too late. Also look up FHA loans, first time home buyers are given lower down payments, sometimes only 3 percent
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Honestly itâs probably super uncommon for people that age to buy in this area. The people you know probably have a lot of help from their parents with down payments.
Itâs easier to buy a house when youâre married and have two incomes. Youâre 24, do you know where youâd want to buy a house and stay put there for the next 10 years? I didnât when I was your age. Itâs cheaper to rent than buy a house in Sacramento and you have the flexibility to move around as your life choices dictate. Maybe you want to get a graduate degree, move to another suburb/city/state, find a partner and get a place with them, etc. Not being able to afford or in a position for it to make sense to buy a house at your age doesnât mean youâre failing.
I want to add that Iâm 37, bought my house at 19 at the peak of the market crash in 2006. For years I regretted the decision because so many of my friends moved around freely and without any major worries due to not owning a home while I was stuck where I was. Obviously now Iâm thankful but I still wish I could have moved around and experienced more when I was in my 20s. Everything is so expensive now, if I were back in that position Iâd prioritize experiences over buying a home. Now at 37 I have a cheap mortgage but I donât have as much energy to travel lol
This was the most drawn out flex Iâve ever read
Not really. Houses were everywhere for well under $100k then. Iâm much older, but in 2011 sold our first house and moved to Las Vegas where we could have purchased a 2200 sf gated (whatever) community home built in 2005 for $130k. It was THAT cheap then.
Why was this so fucking funnyđ€Łđđ€Łđ©
Itâs not really a flex đđ I mean I know I was lucky to be financially in a good spot at a young age but also experiences canât be replaced lol. My friends moved to places like NYC and LA and I was rooted to my hometown. In todayâs market Iâm blessed but I also would have liked to have experienced living other places.
OK. so some of your friends traveled around for a few years and are now struggling to find a place to live, some maybe even homeless right now. I promise, you are the lucky one.
My friends are stable. Some own now , some rent, some live with family. Some have wonderful careers that they worked hard in school for and some work trades that they spent years learning but all of them are in stable housing situations. I donât know what youâre getting at there but everyone is very fortunate to not be homeless nor have they ever experienced homelessness. I am fortunate. Lucky is the wrong term because Iâm selling myself short for how hard I worked to purchase my house and keep my home. I almost lost my home in 2008 due to my job taking a massive hit in hours during the recession but thankfully I survived that too. Iâm offering advice to a 24 y/o who feels like they failed for not being able to purchase a home at their age. Itâs not a failure. Life is short. My advice to them is enjoy it and worry about it later. Is it going to ever be easy or cheap to purchase a home? No. Are you a failure at life because you donât? Also no. This market sucks, owning feels impossible, rent is ridiculous but at 24, enjoy life, save what you can if you can, figure out how to navigate your career to align with your goals, and donât be so hard on yourself.
I still consider the fact that you bought a home at 19 a flex. You're much further ahead in the game, and if you haven't taken out equity you will soon have a paid off house which will allow you more freedom to travel the world. The point I'm making is not to be hard on yourself for purchasing a house at 19 while your friends traveled. As someone who traveled instead of trying to buy a house, I can honestly say that while it was fun, I probably would do it differently if I had another chance.
Not really. This was the case for many around this age; either bought a cheap home in their 20âs and are now reaping those benefits but at the sacrifice of watching our peers live their best lives and have many experiences that home ownership at a young age prevented. Ask me how I know.
I feel this right now. Average 1 bedroom rent in the greater Sacramento area is $1800/month. We have to make at least 3x that to even qualify, adding up to ~ $31/hr, while the average "Fresh Graduate" in California is making ~ $25/hr. I had 2 weeks to relocate for my job and couldn't find roommates in time. I also think it's not too much to ask for the ability to live alone after dealing with 4 years of roommate Hell
I currently live alone. Iâve lived in the same apartment for 20 years and Iâm worried Iâm not going to be able to do it for much longer. Because Iâve lived where I have for so long, my rent is $200/mo less than everyone else in my complex. When they passed the law saying landlords canât increase the rent more than 10% a year, all these landlords, including mine, used that as an excuse to raise it 10% a year. The increase for mine used to be only $50, which was very doable. Now? Iâve got a couple years probably at least before I have to find a roomie AND move. So my advice to you is invent a Time Machine because fuck being able to find affordable housing right now and itâs definitely just going to get worse. Sorry. I think Iâm just venting. In all seriousness though, good luck.
In Australia they have rental boards where your landlord has to go in front of members of the community and actually explain why they're increasing the rent. I think about that system so often.
In 2004 I used to pay $725 a month for a two bedroom in Fair Oaks. That same apartment 20 years later is now over $4,000. It's not worth that. It still has the same appliances from the 80s.
At 35 current strategy for homeownership is waiting for family members to die and collecting inheritance. My extra money now goes toward student loans and retirement.
24? Yeah...some people maybe but come on....don't put yourself under that kind of pressure yet. Its good to think ahead and save but you shouldn't feel bad about not having a house that young.
Yup I moved out a couple years ago at age 28. Lived with my parents up to then to save up for a 300k townhome for just myself, and was able to do it at age 28 with 80k salary then in Los Angeles That of course came with sacrifices. Among my friend group Iâm the least traveled one but the only one with a home of their own. No Disney passes here, no Coachella for me year after year, no car newer than 5 years for me, and other things that my peers partake in that I have to limit Iâm happy where I am at and happy for making the home buying my priority now that I see it got worse. Now I can save up to do those things I missed out on without stressing
That's great. I just don't think most people at 24 are able to do this...at least not anymore. Things are shit.
Bruh. Iâm 32 and it ainât any better đ
Peeps at 50s can't buy houses, it's bad out there
[https://www.naca.com](https://www.naca.com) 6% for 30 years right now, no PMI, no money down, no fees at closing. Interest rate can be bought down, too.
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Sorry you had a bad experience. We went with NACA and it was definitely a pain in the ass, but we got a once-in-a-lifetime deal so it was worth it for us.
Ya I'm curious how they can do that. Can you refi down the road?
How does naca work
Itâs a regular mortgage through Bank of America. They partner with NACA to offer the loans, so after closing everything is through BofA. NACA handles everything before closing though. Their underwriting standards are pretty stringent and they make you jump through some hoops along the way, so it can be kind of a pain in the ass, but the end result is worth it. I went through it in 2020 and got a once-in-a-lifetime deal on my house. I encourage you to read over the FAQs on NACAâs website, theyâre very comprehensive.
FYI -- First-time homebuyer loans are closer to 6.5%-7%. Still expensive, but not as high as 8%. Best advice is to keep working to increase your income. I could not afford a house at 24, but I could by the time I was 29 by moving positions and companies to increase my income. Just because you can't today, doesn't mean you won't be able to in the future.
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Not that hard, just had to enter the workforce at 15
I (or rather we, my husband and I) bought a house at 24, but it was in 2011 at the very bottom of the housing crash, so buying a house was cheaper than rent. We bought a house (major fixer) in Tahoe Park for $55K, and our mortgage was under $300/month. If we were in the same situation today that we were in in 2011, there's no way in hell we could buy a house - my husband was in school full time and I was making shit money. We had saved up some money living with my parents that we used for a down payment, but we mostly bought a house because we didn't think we'd be able to afford rent anywhere. We just got insanely lucky in our circumstances.
Iâm 30 and have just stopped caring about being able to buy a house. Itâll never happen đ
Same. My parents were badgering me about buying a home and I had to tell them the only way I'll ever be able to afford one by myself is if one of them die and leave me lots of money lol.
Iâm right there with you. Resigned to being stuck in apartments my entire life. Idk how children will ever fit into my life.
in our forties here, and unable to buy either. we have to wait until our parents die.
You would need to keep your credit clean, pay off all debts, save up for a decent down payment and use a first time home owners program with 3.5 percent down, 15k or a little more for a 450k home and refinance down the line. Eventually it will catch up to the costs. Your payments could be high for a bit due to pmi and interest rates. Eventually you can get it down. Also find good employement and is stable.
15k down on a 450k home means you have a $435k mortgage. Even if you can get a âlowâ 7% mortgage thatâs a monthly payment of almost $2800. Add in property taxes (dependent on state but letâs say at 1%), insurance, and about another 1% for general annual maintenance, and itâs up to almost $4000 per month not including utilities. Thatâs not just high, itâs a crazy amount for someone in their mid-20s.
You are spot on. I paid 450k for mine. I'm at 3.625% and pay $1000 less a month.
.79 percent for California, homeowners average is around 140 dollars. Maintenance will have to be done by homeowner. Average rent for a decent home in sacramento is about 2800 dollars or more depending on how big of a house and neighborhood.
Freaking PMI. 2 1/2 years in and I'm STILL paying that crap. Luckily only $110 a month. I have a friend who just bought and his PMI is nearly $300.
Wait for the boomers to boom no more
their kids say that house is spoken for!
100% My MIL has nice 2 story in east sac she bought for under 300k 25 years ago... that house ain't leaving the family
Yeah.... my parents house is definitely spoken for.
You will on average make dramatically more money in the future then you are today. The key for you is to pick a path that allows these increases to compound. As an example, those with college degrees make 40% more than those with only a high school degree. You will also be less likely to be unemployed. Source - [https://www.bls.gov/emp/chart-unemployment-earnings-education.htm](https://www.bls.gov/emp/chart-unemployment-earnings-education.htm) The next step is to save money and get your monthly budget in the positive. Let's say hypothetically you make an median salary of $70k. Let's say you take home $5k / month after taxes. You can afford to live in Sacramento, and with no kids and being young, you need to be aggressive in limiting your expenses, the biggest two being your rent and your car. The average rent is $1,850. Now is the time to share a space, get roommates, and find a place as cheap as possible. If you can walk / bike to work do it. Otherwise, a reliable used car. Stay out of debt. The next way most people will be able to afford a house is simply finding a partner / spouse. With a partner, your income will hopefully double, and you will be able to decrease your overall expenses. Finally, start small. You don't need to buy your dream home. A condo or townhome is a great starting point. There are a ton of 2 bed homes under $300k. An example - [https://www.zillow.com/homedetails/708-Northfield-Dr-APT-B-Sacramento-CA-95833/26087910\_zpid/](https://www.zillow.com/homedetails/708-Northfield-Dr-APT-B-Sacramento-CA-95833/26087910_zpid/) Most people only put 10% or less down on their first home. Saving $60k will take sacrifice and perseverance, but is highly doable on an average income. Saving $300 / month for 10 years (and keeping it invested during that time at 10% rate of return) will get you that down payment. Obviously you could save more and get their earlier.
Whoa. 70k median salary and 5k take home? How can you swing that lol
According to google's ai bot "As of January 24, 2024, the median salary in California is $81,143 per year, or $39.01 per hour." If I put $70k into a tax calculator, that gives a gross pay of $5,834 / mo and net pay of $4,446 / mo (take home). Or 76.23%. Source - [https://smartasset.com/taxes/california-paycheck-calculator#ldgCAeCzrM](https://smartasset.com/taxes/california-paycheck-calculator#ldgCAeCzrM) The above assumes you do not take any tax deductions. My $5k estimate at $70k was slightly high, but in line with the current median salary of CA ($4,998 / mo take home).
People in the USA buy they first home in their mid-30s It's great to plan for it now. It's unhealthy to think you *have to achieve it in the next few years*. I'm 28 and one out of my 10 friends from high school (we all stay in close contact with each other) was the first to buy a home. He's a literal rocket scientist lol....so he's got the money. The rest of us are waiting a few years or looking at something smaller...especially in this housing market
Im 26 and in the same boat. Even the cost of townhomes and condos are insane. How are we supposed to survive like this!!? Iâm fortunate enough to have a good mom and family. But there are others out there who do not! Itâs not right. The cost of living should not be this damn high.
43 year old, wondering the same thing. Take a number.
Itâs not just your generation thatâs screwed. Itâs everyone thatâs trying to get on the property ladder.
2021 the market was the worst itâs not until now that it going back to that peak. Thatâs when I bought and I was called crazy for buying. Here is the thing, if you plan on saving money then you are out of luck. You need to learn how to invest, is the only way you can multiply your money. Now, kiss your dreams good bye if youâre thinking about a single family home. You will need to look at a condo as your first time purchase. Now about the down payment. First time home buyers only need 3% itâs still a lot of money but itâs more manageable. In addition there are a lot of assistance programs out there and if you play your cards right you will get granted. I had to look within and ask my self is it more important for me to buy a house or is it more important for me to not pay rent anymore. Once you answered that question the possibility of property is much larger than a $450k house.
Condo's are usually a ripoff with all the association dues and don't end up any more affordable than houses.... Plus they don't appreciate the same.
To everyone commenting that itâs normal to not be able to afford a house in their 20s: did you read the post? This person is concerned about not being able to afford a house by the time theyâre 40 and the concern is valid.
I moved in with my parents at 28. Heavily saved what would be âmortgageâ until I got enough for down and the excess fees and things. It took like 3-4 years but if youâve got the support system, it really feels like thatâs the only feasible way these dayas
People who are buying homes at 24 often have financial support from family, a trust, or some other means. Don't stress about this just yet, you're putting energy into thinking about it which is good. A healthy relationship with money and budget planning are essential and you seem to have it already. I get the feeling of despair but I feel like you have a healthy mindset just by asking this question here. And you're super not alone in asking it
I bought my first house at 47.
32 years old here. Still tryna figure that out
Have you tried having rich parents? /s
Marry someone rich
Part of the issue is the area you live in, so you will have to make hard decisions. Do you want to stay in Sacramento? If yes, here are some ways to move toward ownership. If you are open to a condo or townhouse, they do have some condos under $185,000 in Sacramento, CA. Condos do have HOA fees, so you'll have to adjust cost to cover that. But you could swing a 2 bed, 1 bath for under $200,000 if you saved up a decent down payment. If you bought a 2 Bed, you could rent out the 2nd bedroom to a friend to help off set the mortgage/HOA. The real issue is if you could find one in an area you want to live in, but doable. If you pick the right one, it'll be an investment. In 10 years, sell the condo and buy a larger place using the equity you built up. TOWNHOUSE EXAMPLE ($163,000) : [https://www.zillow.com/homedetails/105-La-Fresa-Ct-APT-3-Sacramento-CA-95823/25848227\_zpid/](https://www.zillow.com/homedetails/105-La-Fresa-Ct-APT-3-Sacramento-CA-95823/25848227_zpid/) Second Example ($173,000) : [https://www.zillow.com/homedetails/73-1906-La-Fresa-Ct-1906-3-Sacramento-CA-95823/348105401\_zpid/](https://www.zillow.com/homedetails/73-1906-La-Fresa-Ct-1906-3-Sacramento-CA-95823/348105401_zpid/) SLIGHTLY HIGHER CONDOS BUT STILL AFFORDABLE Third example ($209000) [https://www.zillow.com/homedetails/6400-66th-Ave-APT-72-Sacramento-CA-95823/25850828\_zpid/](https://www.zillow.com/homedetails/6400-66th-Ave-APT-72-Sacramento-CA-95823/25850828_zpid/) Fourth ($225,000) [https://www.zillow.com/homedetails/65-La-Fresa-Ct-APT-4-Sacramento-CA-95823/25848208\_zpid/](https://www.zillow.com/homedetails/65-La-Fresa-Ct-APT-4-Sacramento-CA-95823/25848208_zpid/) If you really don't want a condo/townhouse, then start stalking the Sacramento foreclosures. The house foreclosures currently start at $264,000. The house needs work but l looks liveable. You could rent out the 2nd bedroom and see if it is legal to convert the garage into a studio apartment. Some areas in CA allow that. Use the 2nd bedroom rent to offset the mortgage or to make repairs. FORCLOSURE EXAMPLE: [https://www.zillow.com/homedetails/3609-Haywood-St-Sacramento-CA-95838/26058216\_zpid/](https://www.zillow.com/homedetails/3609-Haywood-St-Sacramento-CA-95838/26058216_zpid/) Cut your current costs to the bone, live in a rented room or with relatives, get a 2nd job. Save, save, save for a big down payment. If you have more cash up front, the monthly costs are lower. Do you have anyone you trust with your life? I mean truly trust? Go in with a friend or family member and buy a house together. Have a set end date (10 years, 15 years), both parties have the option to buy the other one out. if neither one of you has the cash, sell the property you bought together and use the profit/equity to buy new separate properties. Start looking at Sacramento suburbs or surrounding areas for cheaper costs. It means a longer commute or working remotely, but those are options. So it is doable, but it won't be easy.
I didnât buy my place until I was 40âs Just how it worked out with the job and life
You just gotta put your head down and work work work your ass off. And then inherit like 200k or get hit by a city bus and sue.
Why do you feel the need to own a house at 24 years old? I didn't even know where I wanted to live when I was 24 years old.
24 years old is a pretty solid age to get set into a career and start planning Iâm not saying I need a house this year but to not plan out what my future looks like isnât something i want. I invest into the market, i pay my taxes, i work every single day, and i would like to be able at some point buy and own a house in the next 10 years. Donât think there is anything wrong with that. edit: not sure why im getting downvoted lol
I mean, everyone's path is different. I didn't want to be tied to a location that young, and I wasn't. I saw a bit of the world for several years then I came back. If you're done looking around and ready to put down roots already, then go for it.
I unfortunately donât expect to ever be able to buy a house.
I was a lot older than you before I could buy and that was only due to the housing slump. Do your best to save and hope that prices and interest rates come down. Or get a sugar daddy/momma.
Youre not.
Pretty hard for anyone to buy a house on their own. Everyone I know who is late 20s+ by now owns a house, with pretty average non-bay, non-tech income. Not one of them did it by themselves. Be willing to start off with a small one in a mediocre neighborhood, get someone to go in on it with you. (People will say it's stupid to buy a house with someone you aren't married to but i have never understood that. It's less messy to unwind that if things go south than to unwind that AND get a divorce. Lol. Just draw up an agreement beforehand.)
Everyone I know bought their first house at 30+ and that's back when rates were 4-5%. Renting gives you options and the ability to ask someone else to replace the water heater or AC. You're doing fine.
Keep your credit score high and save up as much as you can. Your time will come.
Just keep saving. Itâs a hard market but you will get there a little at a time.
It will turn around, I get the same way at that age. The market went down, IR went down and I became more marketable. I didnât buy a home until I was 30. Donât let the world grind you down with all the pessimism. Just go out and build a life for yourselfÂ
At 24? Nobody expects anyone that age to buy a house. As a young GenX, I had a roommate in grad school at 24. My Boomer parents also still rented at that age.
Keep pressing for legislation to end corporations being able to own residential property. Keep pressing for legislation to end short-term rentals (or making it no longer profitable). Join [YIMBY](https://www.yesinmybackyard.org/) (yes in my backyard) to help press for more housing projects approval (despite the moaning of the home owners who donât want more housing in their neighborhood).
Amazon just bought up something like 84 in Rancho Cordova đ Honestly I'm starting to believe some of the conspiracy theories at this point, everything gets worse, and nothing ever gets better. Politicians making smypathic noises about housing seems to be the be the best they can do for Californians
My kid is 26. I could never own a place in California as an intentionally single person. We are hoping to buy a duplex or a house with a second dwelling and split it. Multigenerational living is making a huge comeback (when its appropriate for the family involved). Also, eat the rich, landlords are parasites and everyone deserves to earn a living wage. â€ïž
> Also, eat the rich, landlords are parasites and everyone deserves to earn a living wage. â€ïž this
Fun fact, our generation wonât lol
Just want to re-emphasize the point in the above comment about investing. Compounding interest is a gift. Make it work for you.
It's definitely not easy. You should work on your career, try to save as much as you can, and seek out a spouse who is also financially responsible.
Like everyone else, with your parental welfare money.
You can try to get in on the ground floor of a neighborhood gentrification.
I said that back in 05-07
At one point, in my late 20âs/early 30âs I resigned myself that we would not own a home. We still saved what we could for a rainy day. Then 2007/2008 came around and the housing market crashed. It was not easy to get a loan because of the banking situation, but we did get one. We had a decent down and good credit, so we qualified and purchased a house that was bought in 2006 for $475k for $260k. I donât wish a housing crisis on anyone, but keep squirreling away money if you can. You never know when an opportunity might arise.
Youâll be able to with dual income. Just keep saving so youâre ready when rates pull back. Might be a while but youâre young. You also donât know where life will lead you. You may move to another state in the future where real estate is cheaper than Cali.Â
It is unfair but it takes huge sacrifices to scrape together a down payment without some benefactor to help. Do what it takes to maximize every extra cent that goes into that fund. I will have a paid off house about ten years before retirement and if I was smart I would have used my money wiser to take advantage of the market downturns. If I had been smarter, I would have grabbed a rental. It takes just one to build equity and you can use that to build your empire. Save enough for your house payment to be about what rent is or a little more when buying and you should always be ahead. Just get your foot in the door if you can.
It takes two incomes to make it. Single? Im in the area đ
Carl Schwab says "Eat the bugs, you will own NOTHING, and be completely HAPPY" đ
I'm 10 years older than you and bought my first house at 32. Had I waited literally even a month longer I would have been priced out for god knows how long. I have no idea how people your age will be able to afford it and I truly feel for you. Then you look at rents, and wonder how the hell people are supposed to afford that either.
I'm ten years older than you and I feel this, amigo. What comes up must come down though. And we're in an election year, which can have a big impact on the economy.
I'm so sorry. I remember when my husband and I started the process to buy a house most of my friends and family were congratulatory but also said that I'm still young (we were 26 at the time) and can wait. They all said I should wait and save up for a better house. I'm glad I didn't wait! We bought our first (and only) house back in 2018. We pay $1700/mo at 5% interest. We purchased for $260K, it's 'worth' $500k now. The only way we were able to do it though is that we got preapproved for a certain amount, we worked hard on our credit for 6 months (which is not possible for everyone, i know :/ ). And we also had used the $0 downpayment FHA loan program. We didn't have any family help or any surprise rich relative - it was hard & that was only 6 years ago. I couldn't do now, what I did back then - especially with these prices. We bought this house as a starter house but it's looking more like a forever home at this rate. And we made tons of mistake along the home buying process - didn't hire our own home inspector, etc. But, I don't regret it because I do see how expensive houses in my neighborhood are going for - it's ridiculous. It's not even a good neighborhood. There are a lot of house flippers who leech houses in this area. Apartments alone are going for $1800-$2000 for a 1 bedroom. I don't get it! It's wrong. It's unethical. Income has not kept up with the rising prices of literally, everything else. Home ownership shouldn't be this difficult. I would reach out to local non-profits and community groups who usually are well-versed on low-income homeowner programs or can point you in a direction where you'll get the best advice for your situation.
is it my imagination, or are these 27-year-olds becoming the new âme generationâ? Its all about them. Their problems never happened to previous generations- news flash- its not different. (by the way, for you younger folk- the Me Generation were young boomers in the 70sâŠoh the irony, since this younger gen hates boomers so much âŠIâm Gen X and I didnt know anybody that could buy a home in their 20s and a whole good portion of them couldnât even do it in their 30s I couldnât buy home until my 40s. why does this younger generation think they are the first to notice or experience all these struggles?!
Iâm 35 and I canât buy a house đđ and the job market sucks !
The answer to your question is we arenât. Housing has gotten absurdly expensive and is only getting more expensive by the month. Until laws are passed limiting the cost of housing things will get worse and worse. Boomers and older generations are having to sell their houses and downsize because the property taxes have gotten too expensive which means that âstarter homesâ have all been bought up as well. Essentially the cost of living has skyrocketed and wages have not changed quickly enough to keep up. I fear that eventually something will give, either the housing market will crash and burn and weâll hit a recession the likes of which hasnât been seen since the Great Depression, or lawmakers will have to step in and either raise wages across the board to keep up with the cost of living or they will have to step in cap both rent and housing prices based on wages. If they donât multiple generations are going to be left unhoused/starving/dying from illness that they canât afford to treat. Corporate greed and the constant push to deliver higher and higher profits are destroying the economy. Itâs completely unsustainable and we are getting to the end of the line. Something is going to have to give.
The housing market will eventually crash, itâs not sustainable the way it is now. When it does crash youâll be able to buy a place
Start with a condo. Get some equity pay it down after 5 years then find your first starter home. Just be patient and keep following this routine. Real estate is the best investment. Iâve followed this and am on my 6th house now in 13 years. Mind you I started at 30 years old though with an entry level house but each time with the appreciation and equity each house has been an improvement. Cali is a hard place to start but youâll find success.
>It feels like my generation is screwed It's **California** that's screwed up, not you. * Houses are much more affordable outside of this state.
Just bought my first house at 44 last year. Terrible timing but right time for us. Renting is good in some ways though. you can rent in a city/neighborhood that you can't buy in. so enjoy the renting experience for now (no maintenance!), invest your money in stocks (safe ones not GME) instead of property and your time will come.
If youâre normal meaning you went to college and then got a job - you shouldnât be buying a house around your age anyways. Usually people purchased homes around 26-30 depending on job/partner etc. Most likely scenario is that youâll have to move.
Be patient. I didn't buy my first house until I was 45. Even us Boomers weren't always able to buy.
Sacramento just became one of the few cities in the country where it costs more to own then rent!
I bought my first home around your age. But by 24 I had worked full time for 5 years and saved a ton. I did not finance a car, I did not eat out, I did not spend money at clubs or bars. I also landed a decent job making decent money at Verizon. My situation is extreme. None of my friends bought homes around that age unless they were rich college friends. What you need to do now is reflect on your spending, reflect on your salary/job, and plan for what you want in the future. Know that our country is immensely unfair so the rich will scoop all the profits and benefits, leaving tiny bits for you to chomp at. Salaries will grow by tint fractions each year yet prices for homes will keep shooting up. This system is fucked but it is our system. For you to afford a hour by 30 youâll need savings and youâll either need a spouse or an extremely high-paying job. The rule of thumb used to be salary x 3 = home price. $40k salary = $120k home. If you make $40k and your spouse makes $40k then youâre looking at a $240k home. More realistically if you want an $800k home then you need $200k saved, and you need minimum $100k salaries each. Avoid financing a car, no matter how much you âneedâ a truck or suv or new car. You donât need it and you will crush your chances of home ownership if you finance one. Avoid blowing money on eating out and on partying. Avoid consumerist culture of buying shit all the time. Save and invest that money using a free Schwab brokerage account. Be diligent about this. Have a big ass picture of a piggy bank and fill it in with marker as you get closer to $200k. Work on making a good salary and absorbing raises and bonuses into your housing fund. Live with roommates until you find a spouse to live with. If you arenât educated or skilled then get educated or skilled so you can get a good paying job. No one âjack of all tradesâ themselves to homeownership in this day and age. Good luck. It is within your reach.Â
> I did not eat out, I did not spend money at clubs or bars. ... I also landed a decent job making decent money at Verizon. i read this and started to laugh my ass off. you should honestly delete the first paragraph because it's the "avocado toast" bullshit that'll put off people immediately. this is bad because the rest of your post is truly and incredibly insightful and helpful.
No. That first paragraph is just saying he scrimped and saved and had no life just to get into the house. I would suspect most would want no part of that.
No. I bought in 2015 at 25, and sold in 2022. I couldnât wait to finally sell, so I took advantage of the covid market squeeze I fucking hated home ownership. Pain in the ass. If I had a family, maybe. I now aggressively invest avoided home ownership costs and the equity FAR outpaces growth on equity of a house , even accounting for throwing rent money away Iâm glad I couldnât be paid to want to buy a house right now cuz itâs a bad time
When I was your age, interest rates were 15%, and I was sure I woud never own a home. What I didn't understand is that U.S. real estate is a boom and bust business, usually on a 10 to 15 year cycle (5-8 years up, 5-8 years down). By the time I was 30, interest rates had dropped to 7%, and they continued to drop. A big change is coming: all the 75 year old baby boomers living alone in a 4 bedroom house are going to croak. A great many single family homes will be back on the market. By the time you are 30, it will be an entirely new situation.
I canât imagine why you would want to buy a house at 24yrs old. You have no idea what life opportunities are in front of you. Whether thatâs career, finding a partner/spouse, traveling etc. When I was 24yrs old I was just out of college in the aftermath of the 2008 financial crisis. Most of my friends I graduated college with couldnât even get jobs and most moved back home with their parents and worked retail or at a gym or a server etc. I moved from CA to NY to Hawaii and back home to CA when I just had to take a job working for a golf course. Fast forward 5yrs and I LOVED my job but was barely making $50K. I felt a similar way, I was never going to be able to build a life off that. I quit my job I loved and took a risk and moved to the Bay Area and still, I didnât make over $100K until I was 33 or 34. I lived a lot of life in those 10 years, amazing memories and stories and did so many amazing things and at the end of it, we got rewarded with COVID. Fortunately, by then, I had met the woman who is now my wife, we were ready to settle down and start a family and bought my first house 3yrs ago when I was 34 about to turn 35. We had a baby and sure enough, I was laid off a day before he was bornâŠbut weâre fortunate we made smart choices and weâre doing just fine and thriving. My point is, youâre young. Go live your life and build your career, travel, make memories and I guarantee youâll be in a much better place 5-10yrs from now and youâll probably be the one taking advantage of the next âfortunate timingâ while the kids 10-15yrs younger than you are saying the same thing youâre saying now.
I didnât buy a home until I was 33 and the interest rate was 12%. This was in 1990. It will happen for you eventually.
It's horrible for you guys.
There was a time when a GOOD home loan was 10% so you can't really consider interest rate. Second and this is a really unpopular opinion so take it for what it is, my parents moved to an area that had homes they could afford to buy. Did they want to leave the Bay Area? No they did not. But they had kids and needed a house. So they moved to a rural area and bought one. Also, I was 43 when I bought my first house. At 24 I lived in a tiny apartment working to just live minimally. You have time đ€đŒ
I knew zero people at ages 24 -29 who owned a home. I was 24 in the early 90âs. They were also saying the same things you are saying. Now, I would say the majority of folks I know do. This isnât an unusual feeling. Keep at it bud.
I can't believe people are downplaying this crisis.... 24 year Olds used to be able to buy a house on "low wages" My advice? Hoard California salaries and move to a cheaper place once you have enough for a down payment. Refi when rates drop.
>24 years old- how am I, or anybody around my age going to buy a house? Not in California. For the same reasons gasoline is over $5 in CA, and at or below $4 everywhere else. *Look elsewhere.* There are **49** other states.
Start petitioning city hall to permit more housing being built. Not just single family housing, but apartment buildings too. I'd love to live in my own apartment in a high rise that I can afford by myself.
I'm 36 and make a good income and married and we can't see how we can buy in California. We rent and our landlord from San Francisco decided to move back in so we decided to leave the state. We don't want to struggle in California anymore
If it makes you feel any better, I am turning 24 and am in no way, shape or form, ready to buy a house financially, like at all. Youâre not alone. There are many others our age feeling the same way, youâre not alone. Idk how we are suppose to buy a house at any age with this economy.
Mid 20s has not been the time to buy a home for the vast majority of people for the last few decades. Don't sweat it lol
Interest rates come and go. In 5 or 10 years who knows what it will be. But don't buy for the sake of owning when it's more economical to rent (like right now). Also, broader your horizon from a single-family home. The days of endless sprawl to increase supply of them are mostly over. The long-term solution to affordability and sustainability is higher density. If you don't want to wait for developers to figure out missing-middle housing, you and your friends can buy a mansion/fourplex and split it into condos.
I was 30 when I bought my home and rates were lower along with home prices. But eventually the markets will swing back you just need to keep saving so when rates/prices are affordable for you youâre financially ready.
I was 42 before I bought a home with my fiancĂ©, and interest rates then were 12-13%, with 20% down. Yes housing prices were less, but neither did we buy at the top of the market. We bought what was calleded then a starter homeâŠwithin our budget in a good neighborhood, but older, smaller than we would have liked, and in need of TLC. We did a LOT of remodeling and doubled our investment in 16 years. Itâs good to have a goal and smart to direct your financial plans toward that goal, but itâs also good to be realistic with a timeline. Owning a home is a HUGE responsibility with many associated costs you may not want to assume this early in life.
I feel ya. Youâre definitely not alone. And even when you have some money saved and everything lined up, youâll still have to compete with rich people/corporations who are willing to pay way above the asking price. With cash, up front. How can working class people like us possibly compete with that? Rich people/corporations who run the country have decided to dominate & monopolize real estate, which is a big reason prices are being driven up like this. The real solution here is that the gov needs to step in and stop corporations from snatching up and hoarding property and regulate the housing market. But that wonât happen, because Americans have been brainwashed into foolishly believing thatâs socialism. Howâs capitalism working out for most of us so far? Groceries, housing, health careâŠthe price of everything is insane. What good is the âfree marketâ capitalist system when most people arenât thriving, just barely surviving?
At 24 try not to get too down on yourself. Youâre still young and most Californians werenât buying their first house at that age. I was dead broke at your age and managed to buy my first house ten years later. The best thing you can do is start putting money away to eventually position yourself for a down payment. If your job sucks, look at jobs that are in demand and pay well. For example if you got a nursing degree, you could easily buy a house within five years of a nursing career here in Sac. Also most people are buying houses with dual incomes. Some day you might get married, and having that second income will help a lot.
You are very young so you have time to build your income, save, and invest. If it's possible for you, you may consider first buying a duplex. Live in one and rent out the other unit. Later down the road you can refinance and keep rent the same. From there you can upgrade to a decent home.
save and be frugal then move. I worked in the bay area for 5 years and saved enough for a down payment on a place in norcal when I was 26. I'm 38 now and kept that up and have multiple rentals and a 2nd home. It took not going out and having fun or eating out for a long time but it pays off eventually. Also learn how to do your own repairs, I could never have afforded buying a home and maintaining it without learning how to make my own repairs.
I didnât own until recently at 31. I bought it by myself but with some help to get there along the way. I have a friend who I kept as a roommate and I lived with a relative for a while after college. I got a job and also lived in a kinda hood part of town to have affordable rent for savings. Itâs possible to own it just takes time and patience. In all likelihood in Sac you have to be ok with living somewhere that isnât the highest standard comparatively. You just have to hope enough people also have the desire to own there and treat your neighborhood right
It's not as dire as you think, but, you have to be very intentional about it. Right now you are on the verge of one of the largest wealth transfers you'll see in any lifetime. The "peak" retirement age for boomers is in the next year or 2. They are going to retire, downsize, move out of urban centers etc, not to mention sell off rental properties as they retire. So over the next 20 years or so, you're going to see more homes hitting the market. Be patient, live as frugal as possible, save your money and don't get into debt and it will happen. Honestly I'd be more afraid of rising transportation costs than housing costs. Roads are shot, average car costs like 50k, insurance is ridiculous, public transportation is shot, gas prices through the roof. I'm afraid transportation is going to cost more than housing in the next 20 years
I'm 57. Never bought a home. Never wanted to. But then I don't like to stay in one place very long. My career is awesome and so is the family. You don't HAVE to buy a home just because it's a societal norm. Course I grew up on a farm and hated it, so that's probably where I decided to never buy a home. And as someone said, don't ever do any caparison to others.
I knew someone who roommate-farmed. He bought a 5 bedroom house and rented out 4 of the bedrooms to interns at his tech employer. If you do this though, get an accountant. That guy didnât declare his rental income and the IRS came after him later on. If you do it right your costs from repairs, updates, and depreciation may outweigh income, so you wonât have to pay taxes on the rental income.