Housing Costs-----Then Now

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Lon
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Joined: Fri Nov 12, 2004 11:38 pm

Housing Costs-----Then Now

Post by Lon »

I never really thought about this until talking to a 35ish year old Civil Engineer that works for the Sate of California. He was telling me that his housing costs consumed about 50% of his income. That's mortgage, interest, taxes, utilities and insurance. Over the years I have owned (with the bank) 5 homes that were all custom built non sub division residences. Housing has never consumed more than 15% of my income. The huge differential between then and now is the very high cost of housing in relation to salary. Wages in many parts of the U.S. just haven't kept up with higher rents and the cost of buying a home. People that live in an area where there are good wages and low housing costs are at a distinct advantage in being able to save and invest. What's the picture where you live?
Kathy
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Joined: Fri Sep 02, 2005 2:45 pm

Housing Costs-----Then Now

Post by Kathy »

I hear you loud and clear!!!!

We moved away from Oklahoma City in November 2002. We purchased our home there in October of 1995 for $126,000. It was 2500 square feet with the following: three car garage, three bedrooms, an office, two bathrooms, formal living, formal dining and a large kitchen. It was fenced on about one-half an acre. We sold it for $163,000.

When we moved to the Washington DC area (Gaithersburg, MD, 30 miles NW) we paid $289,000 for a home that was built in 1974. It was falling apart. We had to put plastic on the windows in the winter to keep the cold out. It was a four bedroom home with two and a half baths, a tiny kitchen with one dining area, two car garage and one living area....no basement (which was unusual for where we were). Also, the lot was tiny, tiny, tiny. This past March, we moved back to Oklahoma and sold that dump for $430,000! We had four bids on it. All for more than the asking price of $400,000 and it sold in five days. No inspection either...people were fighting over it. Our Realtor told us that if the same home had been in Bethesda, MD, it would have commanded nearly one million dollars!

We now live in Enid, Oklahoma and purchased a home for $163,000. It is three bedrooms, two bathrooms, a HUGE kitchen with a large dining room and recreation room. We sit on one half an acre. The closets are enormous!

Salaries in the DC area are more here, but I still don't see how people afford to live there. It's ridiculous. The salaries are not THAT much more!
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Lon
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Joined: Fri Nov 12, 2004 11:38 pm

Housing Costs-----Then Now

Post by Lon »

Kathy wrote: I hear you loud and clear!!!!

We moved away from Oklahoma City in November 2002. We purchased our home there in October of 1995 for $126,000. It was 2500 square feet with the following: three car garage, three bedrooms, an office, two bathrooms, formal living, formal dining and a large kitchen. It was fenced on about one-half an acre. We sold it for $163,000.

When we moved to the Washington DC area (Gaithersburg, MD, 30 miles NW) we paid $289,000 for a home that was built in 1974. It was falling apart. We had to put plastic on the windows in the winter to keep the cold out. It was a four bedroom home with two and a half baths, a tiny kitchen with one dining area, two car garage and one living area....no basement (which was unusual for where we were). Also, the lot was tiny, tiny, tiny. This past March, we moved back to Oklahoma and sold that dump for $430,000! We had four bids on it. All for more than the asking price of $400,000 and it sold in five days. No inspection either...people were fighting over it. Our Realtor told us that if the same home had been in Bethesda, MD, it would have commanded nearly one million dollars!

We now live in Enid, Oklahoma and purchased a home for $163,000. It is three bedrooms, two bathrooms, a HUGE kitchen with a large dining room and recreation room. We sit on one half an acre. The closets are enormous!

Salaries in the DC area are more here, but I still don't see how people afford to live there. It's ridiculous. The salaries are not THAT much

more!




Your home in Enid would go for about $575,000 to $650,000 here in this part of California
Kathy
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Joined: Fri Sep 02, 2005 2:45 pm

Housing Costs-----Then Now

Post by Kathy »

That's scary!!! How do people live??? Seriously, the housing in MD was so outrageous, I do not see how people working at McDonald's survived. Apartment rent was worse than paying for mortgage! Housing in Enid is starting to go up too, but not as drastic. We have some new business coming into town and that will make houses go up....good if you are selling I guess, but we are not going anywhere for quite a while...if ever again!
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Lon
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Joined: Fri Nov 12, 2004 11:38 pm

Housing Costs-----Then Now

Post by Lon »

Kathy wrote: That's scary!!! How do people live??? Seriously, the housing in MD was so outrageous, I do not see how people working at McDonald's survived. Apartment rent was worse than paying for mortgage! Housing in Enid is starting to go up too, but not as drastic. We have some new business coming into town and that will make houses go up....good if you are selling I guess, but we are not going anywhere for quite a while...if ever again!






I suspect that's why California has so many bankruptcies.
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Lon
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Joined: Fri Nov 12, 2004 11:38 pm

Housing Costs-----Then Now

Post by Lon »

Housing costs in New Zealand on both the North Island as well as the South Island are quite high in relation to salaries. That is true primarily in Auckland, Wellington, Hamilton & Christchurch.
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valerie
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Joined: Sun Sep 05, 2004 12:00 pm

Housing Costs-----Then Now

Post by valerie »

California is absolutely outrageous.



My Dad recently moved to Idaho, where he got a 2,800 sq. ft. home on

5 fenced acres for $189,000. Here in Sonoma County, couple mil easy.



My husband and I have really debated moving out of state. Don't want to,

but we could live like king and queen for what we could get for our house

here!



:thinking:
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