US real estate

It depends on where you live. $200k doesn’t buy you much even in Minneapolis downtown area, get out a ways and you’ll have better luck. Way out in the burbs, you’ve got 5 bedrooms for that. But try getting anything above a studio in California or NYC…

Agree with NURB. 200k won’t even buy you a condo in NJ. NC?..you can buy a nice place with land.

For 200k in Cali you can get an uncovered parking spot.

I’m currently researching condos for my mother in law in the Long Beach/Huntington Beach area in California and they are about 250K-350K in a decent area and less than 1K square feet. I swear they were 50K less last year.

Talking about home improvements. We’re replacing eight 3’ x 6’ double hung windows in our home and after about 6 quotes I realized what a scam it is. I had estimates from 6K - 8K (after 1/2 off and free installation and other fake promotions) with a couple of companies willing to come down 1K-2K to match prices. It was also interesting to see how each of the salesmen pitched their product and turned their perceived weaknesses into advantages.

Good to know. All new windows is on my long term project list. Going to try to make it a few more years though.

I have bought in flipped 3 properties here in Florida. Back in 2008-2009, there were amazing deals to be had! I bought my first property a 3 bedroom, 2 bath, 2 car garage home( 1600sqft) with a 1/4 acre lot, built in 2006 for $45k. Two years later I sold it for 90k. My second flip, I purchased a 1bed, 1bath loft style condo (700sqft) for $25k. I Sold it for more than double the price, same as the third.

The real estate market in Florida is relatively cheap still and back on the rise since the 2008 housing collapse. However, for
200k here you can easily find a nice size pool home. It may need some work, but nice bang for your buck!

http://www.realtor.com/realestateandhomes-detail/9505-Norchester-Cir_Tampa_FL_33647_M63944-04081?row=4

Salary with no dependents, for sure.

I can’t believe prices are that cheap.

R

FluffyData’s chart looks pretty accurate. Yes Richard, its pretty inexpensive, the homes are selling quickly. The home link I posted is already pending…

I think I know why it is off…they are using median, not mean. There is no way SF is twice the price of NYC and NYC average home price is $388k. So since I would assume there would be very little salary differences for the same job in different countries/states I’m guess this is why everyone lives in a McMansion in the US? Seems odd that you can buy a median value home on the salary of a McDonalds job…

R

That is what I was thinking as well.

I meant to paste in some context and source article- Laziness and haste on my part- Apologies.

HSH: The salary you must earn to buy a home in the 50 largest metros

Zillow Price-to-Income Ratios: Comparing Price-to-Income Ratios to Affordability Across Markets - Zillow Research

San Francisco is a bit of a shocker…

$434K in LA would get you a small 2 bed 1 bath. If you want 3 bed 2 bath and/or a nicer area then you’ll be in the 550K-750K range easily.
The RE market is insane. We bought a house about 2 years ago and it already went up $150K, not counting improvements we have already made. Back then houses were getting multiple offers (10+) and a lot of them were being bought cash. Before we bought we kept seeing home prices rising every month because of all the quick flipping going on.

That’s the most misleading chart I’ve ever seen.

Take Minneapolis for example (just because I live here).

A salary of $47105 for the year, filing married with 3 exemptions (which means you count your spouse and probably a child), nets you $818.93/ pay check. That’s WITHOUT any additional deductions like 401K, Insurance, etc.

Let’s also assume a 4% Interest rate financing just under 80% of the purchase price of 209400. Your payments with tax, insurance, etc. would be about $1100/month. That’s 67% of your TAKE HOME PAY. Putting food on the table, keeping the lights on, and clothes on the kid become a pretty tough ask at that point.

“Ok, your spouse should work, too.”

Awesome. But if he/she is also making 47105/year, he/she is probably working full time, which means the kid has to go to day care. And there goes another $1100/month. So you’re right back where you started.

The American Dream of investing in a home in order to make money is a sham.

And all those “salary amounts” listed, are based on the GROSS monthly you need to have to hit that house amount. They’re “allowed” to use 41% (!) of your GROSS, in order to qualify you. Which is absurd. That sort of thinking (among other things) got us into the mess in 2008.

Ok, but still, how is it that prices are so cheap in one place, yet so much in another with all else being relatively equal (Not talking about foreign countries with vastly different taxes structures or public services).

The same job would be relatively the same pay across the country I would think, adjusted slightly for cost of living (ie. a Jr. Designer in Miami might make $30K, while in SF maybe $35 - just as made up numbers).

How can there be such a variance in price to income?

Here in Toronto average sale prices are easily above $500K. In Vancouver I think even more. You could probably find a double underground parking spot for the price listed for some of those median homes here.

R

'merica dude.

Take Cincinnati. I know some guys who work for large corporations based there (you can figure it out) who roll deep, huge house (because they cost a dollar), fast cars, big vacations… but the rub is you are living in Cincinnati where the thing people brag about is watery chili (skyline chili, everyone from Cincinnati will try to convince you it is good, and maybe it is compared to the rest of Cincinnati). Basically supply outstrips demand, so prices are low.

Now go to SF where consignment of your first born is required for a one bedroom. Demand far outstrips supply and there is all that Google money and 50 year mortgages… but you get to live in one of the top 3 cities in the United States (NY, LA, SF in case that was was in question BTW)

:slight_smile:

Mechanical Engineer III (taken from Salary.com… I know, it’s not perfect, but its a quick resource for a comparison).


Designs, develops, and tests all aspects of mechanical components, equipment, and machinery. Applies knowledge of engineering principles to design products such as engines, instruments, controls, robots, machines, etc. May be involved in fabrication, operation, application, installation, and/or repair of mechanical products. Requires a bachelor’s degree in engineering and 4-6 years of experience in the field or in a related area. Familiar with a variety of the field’s concepts, practices, and procedures. Relies on experience and judgment to plan and accomplish goals. Performs a variety of complicated tasks. May report to an executive or a manager. A wide degree of creativity and latitude is expected.

Salary from San Francisco, CA
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Salary from Iowa City, IA
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Salary from Miami, FL
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Compared to Consumer Price Index:




About the ratings here: About Cost of Living Indices At This Website
These are all relative to New York (value of 100 on all categories)

Cincinnati, since it was mentioned.
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