Home is the new luxury item. ($20k, payments, inflation, cash)
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As people settled west and claimed territory, they would go in groups. Often they would form a shelter for a church/community area. Then they would begin building their homes on their property, and barns for their animals. They would work the land to make it suitable for agriculture. No one person could do it together, so they worked as a team. Could you imagine building your own home? How about with self hewn trees and few nails? It's what they did though.
As enough farmers were in an area, a trading post would turn into a town. Non agricultural trades would setup stores and buy built homes. The time of getting a home was generally right around the time of marriage, which was fairly young. A young gentleman's main expense was not the ring or the celebration, but the home to get ready to bring a new wife home too.
The unmarried would rent. The elderly may rent. Students would rent. People passing through would rent. The main community would consist of home owners though. Farmers getting bought out would move on further into the frontier. However industrialists needed people, and needed them cheap. Immigration provided that and some of the first rentals came from corporate dormitories. Nothing says control like both wages and living. In the South, sharecropping became a norm. A few decades after, the frontier was finished, though immigration was far from done. Landless farmers moved into towns, looking for a new way to settle down. Renting became more common for the young looking to find opportunities not available where they had born. Until they found it, they rented. With a steady stream of renters, a business model was born.
For centuries, that was part of the draw to America. Your own land, your own religion, your own opportunities. The flyers didn't really go into the Natives already living there of course. But truly home ownership used to be fairly standard up until the 19th century.
All of you are talking like low interest rates are a good thing.
They're not!!!!
Now these rates are driving prices up.
Back in the day you had sound money.
Today only mad money
So stop about those rates, nobody's buying the rhetoric
Besides dollars are more difficult to get today.
Overall you guys had a lot more easy jobs, lower unemployment and decent monetary policies.
Because when Interest Rates were high all that was talked about was the affordability crisis... story after story how many could no longer buy when rates "Shot Up" a quarter point.
My first mortgage was 13.5%...
I think what we have learned is that it will never be perfect...
As people settled west and claimed territory, they would go in groups. Often they would form a shelter for a church/community area. Then they would begin building their homes on their property, and barns for their animals. They would work the land to make it suitable for agriculture. No one person could do it together, so they worked as a team. Could you imagine building your own home? How about with self hewn trees and few nails? It's what they did though.
As enough farmers were in an area, a trading post would turn into a town. Non agricultural trades would setup stores and buy built homes. The time of getting a home was generally right around the time of marriage, which was fairly young. A young gentleman's main expense was not the ring or the celebration, but the home to get ready to bring a new wife home too.
The unmarried would rent. The elderly may rent. Students would rent. People passing through would rent. The main community would consist of home owners though. Farmers getting bought out would move on further into the frontier. However industrialists needed people, and needed them cheap. Immigration provided that and some of the first rentals came from corporate dormitories. Nothing says control like both wages and living. In the South, sharecropping became a norm. A few decades after, the frontier was finished, though immigration was far from done. Landless farmers moved into towns, looking for a new way to settle down. Renting became more common for the young looking to find opportunities not available where they had born. Until they found it, they rented. With a steady stream of renters, a business model was born.
For centuries, that was part of the draw to America. Your own land, your own religion, your own opportunities. The flyers didn't really go into the Natives already living there of course. But truly home ownership used to be fairly standard up until the 19th century.
I was looking at some family history on the farm side of the family and the men were mostly around 28 and the women 18 to 20 at the time of marriage.
I found this strange and was told a man couldn't think of taking on a wife until he was established and could provide and this generally took about 10 years...
Of course the oldest that was to inherit the farm didn't have to wait so long...
Also... the never married women always had a home at the farm no matter which generation was in charge... of course this meant they contributed too... I had a great aunt that never married and she always lived on the farm... another married and lost her husband in WWII... even though she had only been married a few months when he was killed... she was no longer the responsibility of the farm.
Those of modest means would work on farms and ranches and slept in the bunk house... meals and lodging came with the job.
Your post points out eloquently that it was your CHOICE though - you wanted certain things and were willing to pay more for them and able to pay for them or find a bank willing to loan you the money to do so.
I'm not saying this applies to you, but maybe some people need to come to the realization that it's a smarter financial move early in life to buy the split level ranch and be willing to wait a bit on the historic area.
My third house was in the historic district. My first one was in the treeless subdivision where everyone parked on the street.
Because when Interest Rates were high all that was talked about was the affordability crisis... story after story how many could no longer buy when rates "Shot Up" a quarter point.
My first mortgage was 13.5%...
I think what we have learned is that it will never be perfect...
But wasn't a house about 20,000 in 1957 in the richest neighborhoods?
The home my parents bought in 1969 was built in 1958 and sold new for $28,000.
Eleven years later my parents bought it for $35,000 and were able to take over the mortgage...
In 2007 the same home down the street sold for $725,000 and in 2011 was sold foreclosure for $320,000
Every block in my city had a least one foreclosure.
What is ironic is the same builder here in Oakland also built similar homes in Cupertino and we had family friends that bought one new... it was $23,000 because it was so far out...
Last year the kids sold it after the parents passed... it was well maintained... just not upgraded... really like a perfectly dated 1958 home... the kids got 1.3 million for it and it was sold in a week.
So the Cupertino home not only cost much less new... it appreciated by a factor of 56
The Oakland home appreciated by a factor of 27
Maybe location is the most important factor???
Last edited by Ultrarunner; 02-12-2016 at 11:53 PM..
The home my parents bought in 1969 was built in 1958 and sold new for $28,500.
Eleven years later my parents bought it for $35,000 and were able to take over the mortgage...
In 2007 the same home down the street sold for $725,000 and in 2011 was sold foreclosure for $320,000
Every block in my city had a least one foreclosure.
What is ironic is the same builder here in Oakland also built similar homes in Cupertino and we had family friends that bought one new... it was $23,000 because it was so far out...
Last year the kids sold it after the parents passed... it was well maintained... just not upgraded... really like a perfectly dated 1958 home... the kids got 1.3 million for it and it was sold in a week.
Oakland is like an expensive Detroit that sometimes gets economic benefits from Bay Area booms. Please don't try to sell it to people.
That said 5 generations of my family call Oakland home and for the last 3 years the growth in the Oakland housing sector has been off the charts...
Everyhome sale around me is young professionals... mostly white or Asian with one or two children... I have not seen kids around here for a long time.
Years 2008 through 2012 I did not have a single kid for Halloween.... last year I ran out of candy.
Oakland sells itself... having the best climate, close proximity to many parts for SF than living in SF and a bustling uptown... not to mention the mot spectacular views of the SF skyline and sunsets!
That said 5 generations of my family call Oakland home and for the last 3 years the growth in the Oakland housing sector has been off the charts...
Everyhome sale around me is young professionals... mostly white or Asian with one or two children... I have not seen kids around here for a long time.
Years 2008 through 2012 I did not have a single kid for Halloween.... last year I ran out of candy.
Oakland sells itself... having the best climate, close proximity to many parts for SF than living in SF and a bustling uptown... not to mention the mot spectacular views of the SF skyline and sunsets!
I know I wouldn't buy a house in the 200g range in Oakland. 500 square feet on a 2000 lot in a bad neighborhood ew.
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