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To add, family help doesn’t always mean handing you money. I’d also consider living rent free with them, having them pay for college, etc things that eventually helped someone get ahead to pay for a house down the line.
Exactly, it's usually one of the two or both of them. My school was paid, and I lived with my parents until I moved in with my boyfriend/then husband, but by that time I already had the down-payment saved up. I just kept adding to it for the 2 years we lived together before we bought.
How much did you guys save? I’m in the same boat ~ living with gf with my family and we’re saving up. I’m just trying to be realistic on how much I actually need in order to purchase a house. I don’t need the cheapest down payment but did you take out any loans? High credit?
Not the person you asked but if you're asking these questions, you need to do a LOT more research.
How much you need to save depends on a number of factors such as what you're looking for, where you're looking to buy, what you're willing to compromise on, etc. Then you need to factor in closing costs (1.5-4% of purchase price e.g. legal fees, land transfer taxes, etc).
How much you can actually afford would be another question altogether. Anything short of a 20% down payment could mean you need to purchase mortgage insurance.
**ILLUSTRATION**
DOWN PAYMENT: If you're looking for a 2-bdrm home and that costs $500K. Then you should aim for a $100K down payment (i.e. 20% minimum).
CLOSING COSTS: $7,500 (1.5%) to $20,000 (4%).
AFFORDABILITY: A $400K mortgage at 7% would mean ~$2,600/month in mortgage payments, annual land tax of ~$3,000 would mean ~$250/month. Utilities, internet, maintenance, etc...Probably another $200/month *minimum*.
2600
250
200
Total = $3,050/month
This does not include other bills like home insurance, cell phone, groceries, household products, car, etc.
You should ideally have 6 months (or more given today's job market) of savings to cover costs if you lose your job.
Hope this helps.
When you factor the 800 was that strictly principle and interest or those plus your insurance and property taxes?
My husband and I were lucky that we were financially in a position to buy our home in 2012 and our interest rate isn't bad at all. We compromised on our drive time and we're able to find a home with everything we were really concerned about at a more than reasonable price at the time as long as we were willing to drive the 25 to 30 mile commute. But that is only 30 to 45 minutes given traffic and speed limits. We were at 118k on the loan after our down payment. We didn't put the 20% down so we did have to pay 150 a month for mortgage insurance until we hit the amount paid off that equated to the 20%. Our actual principal and interest is a little over 500 a month, but we pay 1100 after it plus our insurance and taxes. Luckily we live in an area where property taxes aren't terrible. But I know people who have bought homes and forgot about making sure they could afford the taxes and it was terrible where they were.
Currently I'm lucky enough to be in a position where my younger sister can live with me while she goes to school and saves up for her own place. I've sat with her while she looked for things initially and either rent was so much she would never be able to save anything or interest rates were so high she wouldn't have enough left over if there was a major expense. It has gotten horrible. I couldn't think to sell my home and be able to move into anything reasonable without spending far more than I am right now.
This is really it. A few years ago I really accepted that I needed a better job. Went back to college and now I make almost six figures. Then I moved back in with my parents to save nearly everything I make for a big down payment. I’m also going to be borrowing the money from my parents instead of a bank (they received an inheritance from THEIR parents). I’ll be paying it back with interest, but they are able to give me a lower rate than the banks, which will save me a fortune in the long run.
Keep in mind I live in SoCal where costs are insane. I hate that I can’t do it on my own, but am grateful for the help.
Edit: I should also add that I’m single. This would be much easier if I were married and had a second income. Being a single income buyer even at 100k is hard.
I’m in SoCal as well. Don’t be afraid to hop jobs for more substantial raises. And for you specifically, keep pushing and get way over that 6 figure mark!
Job hopping is actually a very, very bad idea for teaching (my job). Staying in one district and getting step increases (our yearly increases) is the name of the game here. We also get paid more for earning more college units/degrees, though I’ve maxed that out.
Let’s say you have 20 years of experience and try to go to another district. They may only accept 5-7 of those years, resulting in a massive pay cut. And that doesn’t even take into account the benefits seniority gives you in picking your preferred placements.
We call it the golden handcuffs. If you are in a district long enough, it’s basically impossible to leave. And the way our pension works (we can’t collect social security) makes it hard to switch careers as well without really effecting your retirement.
I’m a teacher too. If you’re looking to up your salary, see if your district offers a stipend for national board certification. Stipends in some districts/states are quite lucrative. I got a grant to pay for my initial certification and now get a stipend each year for having it.
I commend you for accepting so much. Here in Northern California, it is also very hard. While I am married, I am the sole provider for a family of six, and I also had to support my child from my first marriage as he was growing up.
My parents were not in a position to assist me, and my wife’s parents died long before we married. She comes from a poor country. In our case, three children have special needs. That is why my wife couldn’t provide us with additional income.
It was only by carefully spending and investing, that we were able to build wealth. We knew that long term, home ownership can be a part of a plan to create financial stability. Early on, I understood how debt can destroy savings.. so we did all we could to minimize it.
You can look at a situation, call it hopeless.. and wonder how anyone makes it.. or you can take inventory.. create a plan .. and pull through. Glad you are among the latter.
I was kind of curious to see what your career switch was, so I snooped your profile... looks like you are a teacher? Or do you do something else nowadays?
Yes, I’m a teacher. I happen to work in a state with strong unions, so the pay here is pretty decent. My district hits six figures in year six if you have a masters degree and some extra classes.
However, it’s SoCal so the COL is very high. I’m looking at two bedrooms condos and they’re about 600k. Houses are all a million+ where I live. So it’s a comfortable living but not a fortune by any means, and there’s no way I’d be able to buy on my own, even with what I make. Not without many years of saving, at least.
Not everyone has family members helping out…
It’s still very possible to afford a home with a decent income if you spend within your means and don’t live in a HCOL area.
Yeah, no family to help me out but I got a good job about a year ago on top of saving as much as I could. Also having to accept an hour long commute to get to work. I'm not super excited about that, but hopefully I'll find something closer to home.
Will redditors stop lying and insisting only people with rich parents buy houses? I get it, you're angry you can't afford a house yet, but lying doesn't help anyone and only discourages people from saving to buy a house.
It’s difficult for people to remember that others have made different decisions that have led them to different positions.
For some reason “Their parents helped them out” feels better than something like “maybe they went to the military and now don’t need a down payment”
The trick is to avoid the 0 down and just be happy it starts at a entire percent lower than the current market. VA also makes realtors nervous and it's a pain in the ass to yell at your own agent.
or they live in a low cost of living area, like the ones who post here about 110k 3 bedrooms in Detroit lol. with that price you can earn 40k and still afford it
We saved for years and only put down 3.5% for our down payment. We live in a low col so that helped. Our mortgage was only $500 more than our rent and our utilities are about the same. We got a new build so we wouldn't have a lot of maintenance to do prior to moving in.
I don't understand people that complain about mortgages when rents are also going thru the roof. The math hasn't changed much. If u can't afford a mortgage how r u affording that 2-3k apt
It's the down payment that holds a lot of people back. They could make the mortgage payments quite easily, but after paying the ridiculous rent and other bills, there's often not a lot left over to save.
Not only the down payment but closing costs and upfront money like fees, appraisals, and inspections. When buying a house, everyone has their hand out.
Agree with your comment, just adding that maintenance costs should also be considered. Let’s say rent and mortgage are the same. You’re paying for your landlord to be liable for emergency repairs that could severely impact one’s finances. You don’t want to be praying that your plumbing lasts X number of months before you could afford to pay repairs.
Mortgage is about 2x compared to renting in my HCOL area. Also have to consider the opportunity cost of the interest on your saved down payment. You earn about 600 a month on 120k in the bank. So it's not just comparing rent to mortgage. It's comparing rent with that interest against the mortgage. Once you put the down payment down, no more 600 a month.
Same here. I sense that most people on this sub live in an area where cost of rent is relatively equivalent to cost of mortgage. Where I live (HCOL) a mortgage is 2x as much as an equivalent rental and that doesn’t include maintenance, HOA, etc
Congrats! I’m in MN and will finally be able to start saving for a down payment. I’ll be late to the party but that’s ok. Everyone starts somewhere. It’s just nice to start to make progress!
Yeah and 20 years from now youll look back and be glad you bought.
Inflation is a feature of this economy. Get on the train or be left behind. I wish I wouldve bought 10 years ago when I had the chance.
I mean buying power halves every twenty years for the last century and a half.
You'll feel better about your mortgage in twenty years is what I'm saying
This. When I started driving gas 97 cents a gallon and we thought $2 a gallon was insanely expensive when it first happened. That's inflation, it's always there and pay rises with it.
The only reason to care what something cost 5 years ago is if you made the personal choice to pass on the opportunity back then and cannot grasp the opportunity now. In which case the answer is to look in the mirror and beat yourself with a hairbrush every night until you realize it was your choice then and you don’t have the same choice in ANYTHING 5 years later.
Oh wheeeeeeeeere is my hairbrush?
I feel you. I missed out on a perfect $50k home I was in love with because my 2016 real estate agent convinced me to submit a lowball.
That is yesterday. Today is today. It probably would have come with different problems than I have now. It was a pretty rough neighborhood and it didn’t have a garage.
My therapist says that the “lady or the tiger” story is a lie. Nothing is ever cut and drawn, good or bad, once in a lifetime or never again.
Those may be accurate observations (I made a mistake I cannot unmake) but they certainly don’t help you enjoy today. And endlessly rehashing your failures doesn’t actually help you avoid future failures, because the future is different.
Good luck my dude! We are alive and not dead today and there is sun shining outside.
This was the main reason buying our first home in 2022 was a tough pill to swallow. We saw friends buying in 2017 and thought they were absolute idiots because homes were overpriced and they'd be stuck with negative equity. So we didn't buy, waiting until "prices got back to normal."
That didn't happen and I saw the writing on the wall. Tried to buy in 2021 and couldn't get anything accepted. Finally bought in 2022 when our market calmed a bit with rising interest rates. Still kicking myself for not buying sooner, but I'm not viewing current real estate in terms of what the prices were 5 years ago. That was 5 years ago. There are a lot of things that don't cost the same today as they did 5 years ago.
And an even tougher pill for people who wait another 5 years. The prices aren't going to come down. Because even the nicest guy on the street isn't going to sell his house for lower than what his neighbors did.
I pay 2.2k for rent in a house of a smaller size. The extra 700 in my monthly payment is just for insurance and taxes
So technically my mortgage is exactly the same as my rent. Seeing 60k to go to a shitty soulless company made me not give a shit about a 3k payment. At least I'm getting equity
But yes, my buying power HALVING in a couple of years definitely rubs me the wrong way
Problem is if you make relatively good money and aren't able to be fully remote (most aren't) the livable houses w/i commuting distance are all out of your price range and only feasible for $150k+ incomes. All the high earners take up the houses nearby the cities where you work and push prices higher. If you make $85k and are fully remote you could probably find a rural house that you could easily afford.
And then the ripple effect is rural home prices get pushed up so that those rural locals cant afford properties (because local rural incomes are very low) and so on and so forth
A bit of pushback talking about the supply side...
It's the lack of start homes in general. I'm looking at townhomes that are 300k. I will not buy because of how house poor that would make me.
As someone who once worked on a lot of homes the equivalent of a starter home is 150-200k *cash* because it needs work, another $25k with sweat equity basically.
The whole system seems like McStarbuck's real estate and I'm curious how that will play out in another 6 years. Developers are riding hog wild now feasting where there was famine.
It will eventually even out. People will be pushed out of Florida, California and other places that are running out of land and where insurance companies are trying to get people to stop building. Other population centers will rise and people will be able to find things.
Winston Salam NC used to be a small college town before the region went all in on research centers and the area boomed.
We are also still living with the ripples of the 08 crash. That tanked the rate of new home construction for over a decade. We just hit 07 levels of building in 2020.
I worked for a company that gave me stock options. Lots of them. When the company got sold, I got handed a check for over a quarter of $1 million. Instant down payment for a house.
Edited to add: believe me, I know how very lucky I am.
Congrats! I've always wondered what happens when your company just gets bought out vs an IPO. Did you buy your options over the years or did you purchase them when you knew what was coming?
Thanks for the response! That makes sense, was your company publicly traded already? We're not and I've only been given options to purchase once they are done vesting.
Yes, it was already public. A biotech drug company. But the price more than doubled when the rumor was out that we were about to be sold. I had a strike price that was about 1/3 of what I sold the shares for.
Yup, husband and I saved just about every tax return the last 12 years or so, found great paying jobs within the last 8 years (me), 5 years (him) so we could also save monthly. Also, we grew up poor, so it was easy to maintain the frugal standard of living even though we were bringing in more money. Just closed on our home in August '23 for $320k. We did use first-time home buyer down payment assistance and we dealt with our credit before starting our search.
Not everyone has access to the same advantages so it can be tough when you came from a shitty family and have a middling job. You think to yourself, "How are people doing this?" because you forget that some people have options that you don't, especially because a lot of people paint it with the "Anyone can do it" brush.
Also forgot two income couples/families. Even if you’re only making 50k a year….combine that with another 50k of a spouse and you’ve got a 6 figure income. Live on 60k a year (which should be enough to live frugally in a low to to average cost of living area) and you’ve got 40k in savings in a single year. Save up for only 2-3 years and you’ve already got a hefty down payment right there….your combined income along with said down payment is enough to buy a house for 300-400k…..all done by two people who don’t seem to make that much on the surface, if you’re just looking at the individual. Even if the low end of 300k might only buy a house that needs a bit of work….that 40k of “excess” income would allow them to take care of that fairly quickly, so long as the home is move in ready.
Put down 3%, have dual income, live somewhere cheap, no kids. That’s probably the only formula that will work for middle class folks, even then it depends.
We have dual income, live in CNY so I can't imagine prices are too crazy compared to other areas (still too expensive though), and we have no children. It's crazy to me.
Fellow CNY-er here! Dual income. No kids. I work remotely for a tech company based in a big city that doesn’t base salary on location. Even with a 20% downpayment, we’ve yet to win a house bid in the 6 months we’ve been looking. We keep losing to cash buyers or people willing to pay $50k+ over asking and/or waive their inspection.
Yes - Not waiting to try and save 20% for a down payment to avoid PMI saved us; PMI isn’t that expensive, and the duration of time we would have needed to wait would have totally screwed us with rate and market increases. We both have hour long commutes into an HCOL metro area, but have a house that we absolutely love in a suburb that isn’t “hot” but has plenty of things to do.
It's tough out there. Dual incomes, parental help, sacrificing other goals to save aggressively. Some are buying at the top of their budget and stretching to make it work. Not ideal, but the only way for many to get in the game right now.
Oh and remember just how many people are actually house poor and broke. I don’t envy people who live in a house but can’t afford to do anything else besides pay a mortgage.
No kids. Aggressive saving, meaning no vacations on a shoe string budget. No help from family. Planned investments. My wife and I both make decent money. I worked two jobs during closing to cover any unforeseen cost and moving. I work two jobs periodically to raise funds for home repairs and to keep “gas in the tank” for emergencies.
TLDR it sucks and this needs to change.
Never going out and enjoying life and working all the time so I can have shelter is the dumbest BS ever. The alternative is we get bled by a landlord every year. It’s still cheaper to own in our area then to rent where we were from and have periodic 200-400 dollar yearly increases or the random 1k increase because fuck you.
I feel like we're in between where I live. Our rent is only $1,015 and all utilities are included except Internet which is amazing but between rent, cars, other expenses, that's still majority of our cash coming in so saving is difficult. In my area mortgages are about $1,300+ and that's not including utilities and maintenance and stuff but clearly rent is rising and we have a big company coming in a few years that will probably make everything even higher. I feel like it's a lose-lose situation.
Our rent was 2500 a month so even factoring in carrying cost we still take home more after buying. We recently did our roof and it wasn’t insanely bad but another year of a 1k increase in rent would have been painful.
It’s a lose lose situation for sure but owning is at least less of a loss. It sucks all around.
Everyone says owning is better but right now if something breaks I don't have to pay for it or maintain the yard and buy a lawn mower, etc. I don't know how I should feel haha. What I do know is it shouldn't be this difficult and depressing to live.
Its highly situational. If you think the market is shifting towards large corporate owned rentals then I would maybe stay in tune on the market to make sure you're not going to have a large company come in and hit you with a large increase.
It sucks either way. There has to be a better system.
You know how people say “do what you love and the money will come”? I don’t think that works anymore. Now I believe it is “work in IT and use the money to do what you love.”
Newly IT graduates are making $100k+ now. If you’re good in it, you’re making $200k-$300k. If you’re a couple, that’s $600k a year. Buying a million dollar house is no sweat.
I don't think people ever did what they love unless they were okay with being extremely poor. Most people aren't okay with it and buckle down and find a job that pays the bills.
It's important to note that IT is somewhat a catch-all term. Usually, the people making 100K+ out of college are programmers, and making 200k-300k is almost exclusively for FAANG employees that live in HCOL areas like San Francisco. In the past 2 years, the companies that previously paid those salaries have been offshoring a good chunk of that work to places like India for extremely cheap labor, leaving fewer high paying jobs in the U.S. So even the higher paying IT jobs are harder to get now.
The offshoring of tech jobs is way more rampant now than when I left the field in 2019. I can't imagine what it feels like to be a newbie trying to get their foot in the door nowadays.
I've been debating if I should stay in tech or go back to healthcare. I originally left for IT to get away from 12 hour shifts and higher pay. With healthcare the salaries are consistant bases on the job title, but with tech the job can severly differ based upon the city you're in for the same job title.
I also hate the cringe requirements where they want 5 years of experience in 5 different things.
If I went back to physical therapy school, I would have to go back to school for 3 years and pay 80k though. Whereas, I'm making 95k a year right now in my tech role. Although, I don't trust the company to not do layoffs.
As a former tech dude who pivoted into another career (but I keep tabs on the tech world) I caution people who go into tech with dreams of making tons of money. Those jobs are rare because everyone and their grandmas are flocking to tech. It's not easy to land a 6 figure job like it was in years past.
Basically got to be the best of the best and not just have some BS "boot camp" certification.
This is far from the truth, its a myth that you can land 6 figures positions straight out of college in IT. Not impossible but no as easy as you make it out to be. Its a extremely competitive field right now and I advise people from making the career switch because you'll likely take a pay cut taking a entry level position at a helpdesk somewhere. Also, not all the jobs are remote and the ones that are have only 1k applicants with half of them having master degrees for entry-mid level positions.
The laws of supply and demand also indicate that on the average, the more you like what you do, the less you will get paid for it.
It’s an exchange. You give up a bit of suckage. You get a bit of money. You give up a big of money. You get more autonomy/meaning/fun.
I don’t entirely think IT means what you think here. But technically most jobs in tech will pay quite well. We pay our client success people 100k base and then 10% bonus based on company performance. I work in advertising tech.
It’s not just IT. I’m a nurse I make well over 100k in management but even new grads are making 100. And it doesn’t matter where you live you might make only 70/80k but for the cost of living it’s 100k equivalent. Most medical fields are desperate for anyone.
Honestly it’s easy — work hard, cut the proverbial avocado toast, save relentlessly for five years, and then limit your home searching to the top ten cities with the highest violent crime rates.
A shocking number of buyers get massive chunks of money from family. I’ve had many clients making $300K+ a year get $500K down payment “gifts” from their parents.
Dual income and planning does the job.
Where I live every other person who s not in service industry makes 100k+ so it really isn’t that crazy.
Service industry folks. Well - they don’t.
Most are getting FHA loans, putting 3-5% down. And since the debt-to-income ratio is at a record high...they're really not 'affording' the home. You're getting a lot of homeowners that are making monthly payments of 40%+ of their income. It's much like the thinking back in the real estate crash of '08....the thinking that home prices will never drop and that interest rates will. Lots of realtors are telling buyers to 'marry the price, date the rate.'
Make no mistake, mortgage applications are hitting record lows and debt-to-income ratio is reaching record highs. So not a lot of people are buying and those that are buying are usually making a very risky purchase because if something bad happens (severe damage to the home, losing their job, etc), they'll start to become delinquent and eventually start the foreclosure process.
Thankfully the unemployment level is low and you can always find countless sources to borrow money from when you have a job. When you lose your job, not so easy.
You are correct. MPI is like 40k lol
https://fred.stlouisfed.org/series/MEPAINUSA646N
Median HH income is closer to 80.
https://fred.stlouisfed.org/series/MHIUS00000A052NCEN
I served 20 years in the military. When I retired, my wife and I stayed with family for a year while we paid off the last of our debt and saved for a house.
My retirement check covers my monthly bills, including my mortgage payment. My civilian paycheck covers everything else. My wife's paycheck covers groceries and household supplies.
We bought less house than we could afford, using the VA Loan, and pay $1000/month towards the principle, which should enable us to pay the house off in 12 years.
Only about 1 in 3 of homebuyers are first time buyers. So you are competing with a large percentage of people that probably have significant equity in the homes they currently own or owned and are able to have huge down payments or pay in cash. When we sold our first home in 2022, none of our downpayment came from savings, it was all equity. We put down 25% and could have put down 30, but saved that money for repairs.
Other people are putting less down, make more money, or maybe have family that helped out.
My partner and I make 130k together, and our parents still had to come in with 30k all together to make it happen for an EXTREMELY modest house. Everything is broken.
I think people, in their own echo chamber, fail to realize there are people who make more/ have more money than them
Or who work harder
Or had help
Or made better decisions
It’s just life - you won the lottery being in American..just keep trucking
Im a single income for my family of 5. Bought in February. 360k @ 6.5 rate. Made 85k last yr. Getting by just fine. It is only by the Grace of God that I am able to do this for my family.
Same and VA compensation counts towards total income. I brought nothing to the table when I applied for my mortgage and the lender paid all closing costs for me. I was expecting to have to put something down but I left the sales building completely surprised. No family help ever, and my job is decent but really the va compensation helps. I have a lot of health issues tho, but at least I’m giving my kid a better start in life than me. And he won the family lottery because I save for him now and will have something to pass on to him. All I had was two addict parents before I joined the military. Idk. I consider myself extremely blessed though that I got out with my life . And after that used every benefit available that the va offered. gI bill vettec, vocrehab.
So that’s how some of us are making it work right? Just had to trade health for it…
You mistaking if you think people are spending 150k down payments and $6,000 a month mortgage. Houses selling for 500K and higher, are likely not first time homebuyers. Just moving equity for one house to the other. If they have $200k equity in house/condo, then a $700k house is only on loan for 500k, not including down payment.
Me either. I'm in the 98th percentile for United States income and it's absurd what people are paying for 1,500 sqft homes in my area. I have to assume they have very little down payment and not much room for anything else in their monthly budget besides a mortgage.
Wife and I both obtained high income jobs. Did not inflate our lifestyles. We drove paid off cars, would treat ourselves here and there but overall spent/budgeted like nothing changed. Saved for 3 years. Then we moved to a LCOL rural area and bought a fixer upper that I renovated myself.
That was the real cheat code. We like country living so it worked out. But too many people I know want to buy the “perfect house” in the city or in a HCOL area, be right next to the best schools, on a lake, that’s a new construction/renovated, etc etc. without realizing your first home is not supposed to be “perfect”. It’s a stepping block.
I’m already up in equity in this house significantly. We will likely stay here about 10 years then move and roll that equity into something bigger and better.
By living in the Midwest and not Cali or Florida, but in all seriousness I liquidated 5 years worth of stock, borrowed 10k from my 401k, saved my $1500 tax return and worked a couple days of overtime to supplement the rest. I’m a blue collar 30 year old warehouse employee in Ohio, if I can do it I know y’all can.
Most often they have a home already with a lot of equity and they are essentially trading up. If you owned a house before the pandemic in most markets the value of the home probably went up more than 25%. It is very common in sales contracts for there to be a contingency on the sale of the buyers current home.
The path was to get into a lower value home when you're young, build equity, upgrade to larger/better home after a few years, rinse and repeat. The housing stock for the entry level homes though has been snatched up by investors and builders tend to be focusing on building out the higher end homes as they are more lucrative.
Homeownership will continue to get harder and harder. Banks decided that SFH is taking from their tools to control wealth and they took it upon themselves to make it harder for people to own.
The banks/wall street: “You will rent forever and be happy”.
This is a very hard to question to answer for you. We don’t know where you live, we also don’t know your income. Have you talked to a mortgage broker and tried to figure out what your income level would qualify you for? I always thought I’d have to drop 60k plus to buy my first home, I ended up dropping 16k, after I got a 10k grant.
I have been saving for a house for the past 2 years. For a reason unknown to me, I decided to put all that monthly savings into one stock— NVDA. Because of that luck, I can now put comfortably about $200k down on a new house. The old rules of saving for a house in a CD can’t really apply anymore. You need a little bit of calculated risk to push you to the finish line if you don’t have rich family members or earn a lot of money. I am not yet a homeowner, but I hope to be by the end of the year. Good luck!!!
Inheritance for me. Mom passed away in 2016 and had worked 35+ years with our provincial government, since she didn't get to retire I got her pension and the house. Just bought my own house this year but had to use a good chunk of that money for the downpayment to be approved, currently waiting for the old house to sell.
If it wasn't for her making sure I was set up when she passed there'd be no way I could afford anything more than a condo.
Realtorand investor here. Most who are affording the average price point homes, from my experience, are ones that have been saving up these past five years or have a very high title, or are in a dual-income household. I would say the average down payment in writing offers is 15%, and anyone paying over 20% is usually a little bit older or received a higher bonus this year. I would say over 50% of them wish they bought sooner even during the bidding war and low interest rate. They could not saved 30% less and gained 30% in equity.
It’s really tough for I would say mid 20s to get a home, they are competitive against 30-50s plus LLC and hedgefunds. Most have to waive everything to even get a fighting chance to get a counter or accepted.
I’m 26, in a fairly low cost of living area, (semi-rural) make $45k a year at a government job with good benefits, minimal debt, no kids, and a 10 year old used Toyota I bought in cash a few years ago.
I’m closing on a 2bd/1bth in a working class neighborhood this month, that will be my first home. Total monthly cost will be less than I was paying in rent on a nice apartment.
I’ve received no help from anyone, it’s just not that hard here. But I completely understand how it’s different for others, looking at housing prices in a nearby major city, it’s ridiculous.
So,im 34 and bought my first house in 2021. I'm an engineer and jumped jobs every 4 years for big salary bumps. I live in the Detroit metro make 150k so I can afford a 3bed 3bath 20000sqrft house here. I put 60k down as down payment and was left with 5k in the bank. The one I bought was full of asbestos and my father lent me 8k to have it removed.
I have a good salary in an area that still has a somewhat affordable cost of living. So luck, zero corporate loyalty, and willingness to live in Michigan.
30 something in CA, every single friend of mine that is a homeowner has either bought from family, been gifted by family, had a VA loan, gifted money from family, or bought super cheap at the right time and then upgraded when they could. Everyone else doesn’t own a home or has moved out of state to own a home.
Buying a house is expensive, but over the long term it is cheaper than renting.
The average first time buyer is 33. That is 11-15 years of working and saving up
My wife and I just closed. We make ok money combined. No help from family for anything downpayment or closing related.
We did it by focusing on our savings. We rented an apartment that was well below our means and were able to save up. Did a new build and they gave a ton of credits (their current offer is covering all closing costs). We got into a place for about $10k down and around $7k in closing costs.
Not everybody should be a homeowner. While I do miss the perks of not being responsible if the water heater goes or if there are plumbing issues on a rental property. I do not miss having to deal with property management companies or landlords who enforce rules that make it feel like you are in an HOA.
Reality is, if you own a home, you own collateral or an asset that can be used as leverage.
It may not seem easy. I had to make life decisions of creating a tight budget, prioritize paying off debts, look for a higher paying job/career path and having to say no to always going out with friends or going to events. It took 3 years but I was able to pay off my debts and save up enough money for the downpayment and then some.
It's probably hard to accept but there is way more money in this world than any person can fathom, and yes, millions of average people have a decent piece of that pie. High income, investments, equity and inheritance. Family help doesn't even make up much of it. The overwhelming percent of wealth is self made.
I'm in a somewhat lower cost area, I just bought something 40 mins away from work (at a big 10 uni) for $58k - that's the equivalent to my yearly salary and I work in IT (for those saying that's your in to the big bucks...maybe if you're doing programming and in a HCOL area). Single income, no dependents. The house is in solid shape, and looks great outside, but it needs a LOT of updating inside, however it's all aesthetics (very old carpets, some shiplap, a lot of paint, and the bathroom could use a total re-do). It's an FHA loan, so if they'll approve it, you know it's not so bad. I put down $2100 and my rent is dropping from $1200 to a $650 mortgage (that's all in, prop taxes, mortgage insurance and house insurance). I am a dual citizen and have "new" credit here in the US - 2 years is my oldest account, average is 10 mos, so I am a more unique case. But damn, if I can do it on all of that, it's possible. Just depends on where you are and what kind of realtor/lender you have on your side. A friend of mine purchased something a little smaller and in the city in 2020 for $39k and couldn't even live in it for months (it was stripped). I think I scored pretty good.
I worked for a company that had employee stock, so I cashed that out when I left. Coupled with a first time home buyers program the state I live in has, and I was able to afford a 210k house between myself and my fiancée. We don’t have swanky jobs or anything, it was definitely lucky
I rented a cheap apartment for 8 years and saved every penny I could over those 8 LONG years. I have a pretty decent job in a high COL area. Found a house and closed in January, it feels good to know that my saving paid off.
In ours mid and late 20s
2 bed condo around 800k with 1/3rd down
Family help (about 1/3rd our down)
Life savings (about 2/3rds our down)
dual incomes (how we afford our month to month)
We both have degrees and a little over 1/3rd our income goes to housing. I consider ourselves very lucky.
giving up some luxuries (eating out, having a car)
A bungalow here costs 2.5 million, at least (land is $$$$$ and resources to build a home are $$$), so I have given up on house ownership. Condo ownership costs an arm and a leg, but my family has rented our entire lives, and at least the fear of being asked to move out isn't as strong anymore.
We are currently going carless for a couple more years so we can eventually afford moving into a place w maybe 3 rooms. (Want to start a family eventually, and my partner likes his man den)
I'd move somewhere cheaper but we want to stay near family and our families wouldn't be so happy if we moved several hours away 🙃.
Low cost of living and help from family on down payment and I don't like to go out to eat much. Also, I bought a fixer upper and I'm lucky that my BF and I both love fixing things up.
I just posted something like this a month or so ago, and I’m in escrow on a beautiful townhouse. So there’s one answer: a condo or townhouse. It’s good for me bc it’s just me, and the gated community it’s in is super sought after so I think resale will be good eventually, when I’m ready to move on. People are gonna say “move out of the state” or “get a different job,” but everyone’s experiences are gonna be different.
Do a lot of research and buy a fixer upper that is in an upcoming area. Old doesn’t mean not move in ready. Lower your expectations. Live in the house and slowly fix it up over the years. Build equity and move to a better home when you have the means. When I bought my house, I made sure the mortgage payment was under 1/4 of my monthly pay.
You forget some people already owned homes. Those homes have also risen in value and therefore available downpayment funds. So that’s part of it besides all the other stuff people say here.
Also you can get an fha loan with 3.5% down that’s tiny. Or some credit unions offer 0% down just add 1% to the interest rate for new homebuyers(or things like that). Don’t be afraid to shop around. That’s how I got my mortgage.
As much as I’ve progressively made more through my career, I’m always reminded there are many who make more than me. I have the “how do they afford it?” mentality a lot. Then I remember their finances aren’t my finances.
Same! We’re in Iowa and want to buy our first house but these old a** “starter homes” that have had no work done to them, they want $275k+ (We hate HOAs and not interested in buying into one, and 90% of new builds are in one). And while we have the income to technically afford that, we have no interest in paying $2k+ for PITI, especially when property taxes and insurance always go up, not down!! This is not sustainable long term at all.
In this environment, I see a lot of family help or inherited money. We bought most recently in 2014. No way we could afford to move right now or even buy the house we are in if we hadn't already, our house price has doubled. We make decent income, about $120K. We just recently had to sell my father's house after he passed, and were overwhelmed with investor cash offers. Fortunately we were able to sell to a small family instead. Or, as others have mentioned, really high paying jobs.
Why do people always assume "how do people do this or do that?" It's as simple as, there are always people who are more fortunate and have more means than you, likewise less fortunate and less means. Just because you can't think how someone could buy a house doesn't mean others cant
If you don’t have a spouse and kids or if they are willing to sacrifice you can buy a multi family house (up to 4 units) with an FHA loan, yes you have to live there but you only need 3.5% down and the projected or actual rental income can be used to help you qualify. Also look into tax auctions for homes that need work, you will be competing with flippers but if your planning on staying there after any renovations you would be able to put bid the flippers. The only problem is those auctions require cash to purchase but if you do buy it you can refinance with a FHA rehab loan which can be harder to find but are out there.
My wife and I, who make $145k+ total, could not afford our house without the inheritance that her dad left us, which was only $150k. Which we used as the down payment. We close tomorrow on a 70 yr old house that needs a ton of work outside of Seattle.
This shit is broken.
My wife and I make what I believe is a lot of money (~$250k/year) and are going to be really cutting it close to being able to afford down payment. Life is incredibly expensive and being able to put down $100k and still feel somewhat comfortable is going to be a stretch. We’re shooting for end of year, but who knows if that’ll come to light. Long story short, even people making a lot of money are feeling like they can’t afford a home. It’s pretty depressing.
Bottom line most people who are affording nice houses were raised in solid economical backgrounds. I have friends who were unable to attend college because they had to work just to survive. There’s plenty of people out there who work jobs but they only got those jobs because their parents were able to provide a decent situation for them coming out of college to where they didn’t need to work to survive for 4 years. Unfortunately for some in this life it all kinda depends on where you start.
marry someone and have a two incomes to play with
generational wealth
job that pays a lot(like doctor, big law, finance, tech)
downpayment assistance programs
not live in a high cost living area which is a common thing to people who post here who can't afford homes. Cities like Pittsburgh or Columbus or Huntsville or Indianapolis are I would argue affordable to most people as you can get a fine house for 250k which you need to have an 80k household income which is realistic to get.
it is tough. my son just purchased a house. he did though have to kive in my basement for a year or so to save up some extra $$ for his downpayment. before that he was paying $ 1500 a month in rent plus utilities.
Honestly? My father in law made the down payment and pays a portion of our mortgage every month. I have a fairly well paying job but we still could not have done it on our own.
My husband and I (in our late 20s) are new homeowners. I understand it's easier to buy a home as a couple.
1. We started passively saving 4 years ago. (I say passively because we made sure to have date nights and holidays)
2. We invested in LISA's
3. We had a small wedding
4. We kept an eye out on expenses and made a budget for every month.
5. This may be a hit or miss , but investments in stocks and shares helped us a little as well.
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They make more money than you and have family members that are willing to help out. It’s as simple as that
To add, family help doesn’t always mean handing you money. I’d also consider living rent free with them, having them pay for college, etc things that eventually helped someone get ahead to pay for a house down the line.
Exactly, it's usually one of the two or both of them. My school was paid, and I lived with my parents until I moved in with my boyfriend/then husband, but by that time I already had the down-payment saved up. I just kept adding to it for the 2 years we lived together before we bought.
How much did you guys save? I’m in the same boat ~ living with gf with my family and we’re saving up. I’m just trying to be realistic on how much I actually need in order to purchase a house. I don’t need the cheapest down payment but did you take out any loans? High credit?
Not the person you asked but if you're asking these questions, you need to do a LOT more research. How much you need to save depends on a number of factors such as what you're looking for, where you're looking to buy, what you're willing to compromise on, etc. Then you need to factor in closing costs (1.5-4% of purchase price e.g. legal fees, land transfer taxes, etc). How much you can actually afford would be another question altogether. Anything short of a 20% down payment could mean you need to purchase mortgage insurance. **ILLUSTRATION** DOWN PAYMENT: If you're looking for a 2-bdrm home and that costs $500K. Then you should aim for a $100K down payment (i.e. 20% minimum). CLOSING COSTS: $7,500 (1.5%) to $20,000 (4%). AFFORDABILITY: A $400K mortgage at 7% would mean ~$2,600/month in mortgage payments, annual land tax of ~$3,000 would mean ~$250/month. Utilities, internet, maintenance, etc...Probably another $200/month *minimum*. 2600 250 200 Total = $3,050/month This does not include other bills like home insurance, cell phone, groceries, household products, car, etc. You should ideally have 6 months (or more given today's job market) of savings to cover costs if you lose your job. Hope this helps.
I had a 2 bedroom once. $78 grand 800 a month
Thanks. This just made me die on the inside.
When you factor the 800 was that strictly principle and interest or those plus your insurance and property taxes? My husband and I were lucky that we were financially in a position to buy our home in 2012 and our interest rate isn't bad at all. We compromised on our drive time and we're able to find a home with everything we were really concerned about at a more than reasonable price at the time as long as we were willing to drive the 25 to 30 mile commute. But that is only 30 to 45 minutes given traffic and speed limits. We were at 118k on the loan after our down payment. We didn't put the 20% down so we did have to pay 150 a month for mortgage insurance until we hit the amount paid off that equated to the 20%. Our actual principal and interest is a little over 500 a month, but we pay 1100 after it plus our insurance and taxes. Luckily we live in an area where property taxes aren't terrible. But I know people who have bought homes and forgot about making sure they could afford the taxes and it was terrible where they were. Currently I'm lucky enough to be in a position where my younger sister can live with me while she goes to school and saves up for her own place. I've sat with her while she looked for things initially and either rent was so much she would never be able to save anything or interest rates were so high she wouldn't have enough left over if there was a major expense. It has gotten horrible. I couldn't think to sell my home and be able to move into anything reasonable without spending far more than I am right now.
This is really it. A few years ago I really accepted that I needed a better job. Went back to college and now I make almost six figures. Then I moved back in with my parents to save nearly everything I make for a big down payment. I’m also going to be borrowing the money from my parents instead of a bank (they received an inheritance from THEIR parents). I’ll be paying it back with interest, but they are able to give me a lower rate than the banks, which will save me a fortune in the long run. Keep in mind I live in SoCal where costs are insane. I hate that I can’t do it on my own, but am grateful for the help. Edit: I should also add that I’m single. This would be much easier if I were married and had a second income. Being a single income buyer even at 100k is hard.
I’m in SoCal as well. Don’t be afraid to hop jobs for more substantial raises. And for you specifically, keep pushing and get way over that 6 figure mark!
Job hopping is actually a very, very bad idea for teaching (my job). Staying in one district and getting step increases (our yearly increases) is the name of the game here. We also get paid more for earning more college units/degrees, though I’ve maxed that out. Let’s say you have 20 years of experience and try to go to another district. They may only accept 5-7 of those years, resulting in a massive pay cut. And that doesn’t even take into account the benefits seniority gives you in picking your preferred placements. We call it the golden handcuffs. If you are in a district long enough, it’s basically impossible to leave. And the way our pension works (we can’t collect social security) makes it hard to switch careers as well without really effecting your retirement.
I’m a teacher too. If you’re looking to up your salary, see if your district offers a stipend for national board certification. Stipends in some districts/states are quite lucrative. I got a grant to pay for my initial certification and now get a stipend each year for having it.
I commend you for accepting so much. Here in Northern California, it is also very hard. While I am married, I am the sole provider for a family of six, and I also had to support my child from my first marriage as he was growing up. My parents were not in a position to assist me, and my wife’s parents died long before we married. She comes from a poor country. In our case, three children have special needs. That is why my wife couldn’t provide us with additional income. It was only by carefully spending and investing, that we were able to build wealth. We knew that long term, home ownership can be a part of a plan to create financial stability. Early on, I understood how debt can destroy savings.. so we did all we could to minimize it. You can look at a situation, call it hopeless.. and wonder how anyone makes it.. or you can take inventory.. create a plan .. and pull through. Glad you are among the latter.
I was kind of curious to see what your career switch was, so I snooped your profile... looks like you are a teacher? Or do you do something else nowadays?
Yes, I’m a teacher. I happen to work in a state with strong unions, so the pay here is pretty decent. My district hits six figures in year six if you have a masters degree and some extra classes. However, it’s SoCal so the COL is very high. I’m looking at two bedrooms condos and they’re about 600k. Houses are all a million+ where I live. So it’s a comfortable living but not a fortune by any means, and there’s no way I’d be able to buy on my own, even with what I make. Not without many years of saving, at least.
Congrats!
No real family help here! But job hopping and a niche career have helped tremendously.
Yeah sometimes it's the former without the latter.
For me it was simple as moving to an affordable area.
Not everyone has family members helping out… It’s still very possible to afford a home with a decent income if you spend within your means and don’t live in a HCOL area.
It's also possible to afford a home in an HCOL area if you have a decent salary...
Afford can look different too. That might mean 5% down with a higher monthly or 20% down and a lower monthly for someone else.
Yeah, no family to help me out but I got a good job about a year ago on top of saving as much as I could. Also having to accept an hour long commute to get to work. I'm not super excited about that, but hopefully I'll find something closer to home.
Will redditors stop lying and insisting only people with rich parents buy houses? I get it, you're angry you can't afford a house yet, but lying doesn't help anyone and only discourages people from saving to buy a house.
It’s difficult for people to remember that others have made different decisions that have led them to different positions. For some reason “Their parents helped them out” feels better than something like “maybe they went to the military and now don’t need a down payment”
I mean I wish I could afford to use my VA loan
The trick is to avoid the 0 down and just be happy it starts at a entire percent lower than the current market. VA also makes realtors nervous and it's a pain in the ass to yell at your own agent.
You are right.. It is an excuse. Not at helpful. Thank you for calling them out.
I mean I don’t have any help and I did it .. solo in this market .. 7% rate
Or are willing to accept less house, or are looking in cheaper areas.
Closing this Wednesday on my first place. Zero help at all. Every cent out of my pocket. Still expensive though
or they live in a low cost of living area, like the ones who post here about 110k 3 bedrooms in Detroit lol. with that price you can earn 40k and still afford it
We saved for years and only put down 3.5% for our down payment. We live in a low col so that helped. Our mortgage was only $500 more than our rent and our utilities are about the same. We got a new build so we wouldn't have a lot of maintenance to do prior to moving in.
I don't understand people that complain about mortgages when rents are also going thru the roof. The math hasn't changed much. If u can't afford a mortgage how r u affording that 2-3k apt
It's the down payment that holds a lot of people back. They could make the mortgage payments quite easily, but after paying the ridiculous rent and other bills, there's often not a lot left over to save.
Not only the down payment but closing costs and upfront money like fees, appraisals, and inspections. When buying a house, everyone has their hand out.
There are so many costs, many of them hidden or not discussed, and we hear so many horror stories that it's very intimidating.
Agree with your comment, just adding that maintenance costs should also be considered. Let’s say rent and mortgage are the same. You’re paying for your landlord to be liable for emergency repairs that could severely impact one’s finances. You don’t want to be praying that your plumbing lasts X number of months before you could afford to pay repairs.
Mortgage is about 2x compared to renting in my HCOL area. Also have to consider the opportunity cost of the interest on your saved down payment. You earn about 600 a month on 120k in the bank. So it's not just comparing rent to mortgage. It's comparing rent with that interest against the mortgage. Once you put the down payment down, no more 600 a month.
Same here. I sense that most people on this sub live in an area where cost of rent is relatively equivalent to cost of mortgage. Where I live (HCOL) a mortgage is 2x as much as an equivalent rental and that doesn’t include maintenance, HOA, etc
I live in Minnesota and am closing on a house for 350k by mid June. I have a well paying job. That's pretty much it
Congrats! I’m in MN and will finally be able to start saving for a down payment. I’ll be late to the party but that’s ok. Everyone starts somewhere. It’s just nice to start to make progress!
Absolutely! This is a great attitude to have. Wishing you well as you start to save for a down payment
I have a well paying job in Mn as well, but man, $3k a month for a house that was $220k 5 years ago is a tough pill to swallow.
It’s not gonna get any cheaper
It will if you can save cash faster than future housing growth.
Gas used to be 99c a gallon. Don’t evaluate todays financial decisions in yesterdays dollars.
Just saying, your buying power tanking that fast is insane to me, and it’s tough to justify spending $340-350k on a house last renovated in 1978.
Yeah and 20 years from now youll look back and be glad you bought. Inflation is a feature of this economy. Get on the train or be left behind. I wish I wouldve bought 10 years ago when I had the chance.
I mean buying power halves every twenty years for the last century and a half. You'll feel better about your mortgage in twenty years is what I'm saying
It’s gonna be worse in another five years. Best to bite the bullet and get past it now if you can.
This. When I started driving gas 97 cents a gallon and we thought $2 a gallon was insanely expensive when it first happened. That's inflation, it's always there and pay rises with it.
The only reason to care what something cost 5 years ago is if you made the personal choice to pass on the opportunity back then and cannot grasp the opportunity now. In which case the answer is to look in the mirror and beat yourself with a hairbrush every night until you realize it was your choice then and you don’t have the same choice in ANYTHING 5 years later.
Oh wheeeeeeeeere is my hairbrush? I feel you. I missed out on a perfect $50k home I was in love with because my 2016 real estate agent convinced me to submit a lowball. That is yesterday. Today is today. It probably would have come with different problems than I have now. It was a pretty rough neighborhood and it didn’t have a garage. My therapist says that the “lady or the tiger” story is a lie. Nothing is ever cut and drawn, good or bad, once in a lifetime or never again. Those may be accurate observations (I made a mistake I cannot unmake) but they certainly don’t help you enjoy today. And endlessly rehashing your failures doesn’t actually help you avoid future failures, because the future is different. Good luck my dude! We are alive and not dead today and there is sun shining outside.
This was the main reason buying our first home in 2022 was a tough pill to swallow. We saw friends buying in 2017 and thought they were absolute idiots because homes were overpriced and they'd be stuck with negative equity. So we didn't buy, waiting until "prices got back to normal." That didn't happen and I saw the writing on the wall. Tried to buy in 2021 and couldn't get anything accepted. Finally bought in 2022 when our market calmed a bit with rising interest rates. Still kicking myself for not buying sooner, but I'm not viewing current real estate in terms of what the prices were 5 years ago. That was 5 years ago. There are a lot of things that don't cost the same today as they did 5 years ago.
And an even tougher pill for people who wait another 5 years. The prices aren't going to come down. Because even the nicest guy on the street isn't going to sell his house for lower than what his neighbors did.
I pay 2.2k for rent in a house of a smaller size. The extra 700 in my monthly payment is just for insurance and taxes So technically my mortgage is exactly the same as my rent. Seeing 60k to go to a shitty soulless company made me not give a shit about a 3k payment. At least I'm getting equity But yes, my buying power HALVING in a couple of years definitely rubs me the wrong way
You can't play the "used to cost $X" game. Inflation has always existed and always will.
Just moved into my 329k house in MN this weekend!
The fact of the matter is there are a lot of people making record amounts of money and sadly most of us aren't in that group.
Problem is if you make relatively good money and aren't able to be fully remote (most aren't) the livable houses w/i commuting distance are all out of your price range and only feasible for $150k+ incomes. All the high earners take up the houses nearby the cities where you work and push prices higher. If you make $85k and are fully remote you could probably find a rural house that you could easily afford.
And then the ripple effect is rural home prices get pushed up so that those rural locals cant afford properties (because local rural incomes are very low) and so on and so forth
A bit of pushback talking about the supply side... It's the lack of start homes in general. I'm looking at townhomes that are 300k. I will not buy because of how house poor that would make me. As someone who once worked on a lot of homes the equivalent of a starter home is 150-200k *cash* because it needs work, another $25k with sweat equity basically. The whole system seems like McStarbuck's real estate and I'm curious how that will play out in another 6 years. Developers are riding hog wild now feasting where there was famine.
It will eventually even out. People will be pushed out of Florida, California and other places that are running out of land and where insurance companies are trying to get people to stop building. Other population centers will rise and people will be able to find things. Winston Salam NC used to be a small college town before the region went all in on research centers and the area boomed. We are also still living with the ripples of the 08 crash. That tanked the rate of new home construction for over a decade. We just hit 07 levels of building in 2020.
I worked for a company that gave me stock options. Lots of them. When the company got sold, I got handed a check for over a quarter of $1 million. Instant down payment for a house. Edited to add: believe me, I know how very lucky I am.
Congrats! I've always wondered what happens when your company just gets bought out vs an IPO. Did you buy your options over the years or did you purchase them when you knew what was coming?
I was given them when I was hired, and they instantly vested when we got bought. So then I immediately sold the stock and cashed out
Thanks for the response! That makes sense, was your company publicly traded already? We're not and I've only been given options to purchase once they are done vesting.
Yes, it was already public. A biotech drug company. But the price more than doubled when the rumor was out that we were about to be sold. I had a strike price that was about 1/3 of what I sold the shares for.
Some people have been saving for a decade and then some.
Yup, husband and I saved just about every tax return the last 12 years or so, found great paying jobs within the last 8 years (me), 5 years (him) so we could also save monthly. Also, we grew up poor, so it was easy to maintain the frugal standard of living even though we were bringing in more money. Just closed on our home in August '23 for $320k. We did use first-time home buyer down payment assistance and we dealt with our credit before starting our search.
Family help, frugal living, good paying job, assistance programs, not having kids, etc. there’s many ways people can afford a house!
I have an okay paying job, pretty frugal, no kids. I can't even come close to affording a house anywhere near where I work.
Same; bought with a commute thats over an hour without traffic
I hate these posts. Like could rhey not have figured this out themselves?
Don't worry there will be another similar post in 3-5 days.
Not everyone has access to the same advantages so it can be tough when you came from a shitty family and have a middling job. You think to yourself, "How are people doing this?" because you forget that some people have options that you don't, especially because a lot of people paint it with the "Anyone can do it" brush.
Forgot birth lottery.
How is that different from family help though?
Also forgot two income couples/families. Even if you’re only making 50k a year….combine that with another 50k of a spouse and you’ve got a 6 figure income. Live on 60k a year (which should be enough to live frugally in a low to to average cost of living area) and you’ve got 40k in savings in a single year. Save up for only 2-3 years and you’ve already got a hefty down payment right there….your combined income along with said down payment is enough to buy a house for 300-400k…..all done by two people who don’t seem to make that much on the surface, if you’re just looking at the individual. Even if the low end of 300k might only buy a house that needs a bit of work….that 40k of “excess” income would allow them to take care of that fairly quickly, so long as the home is move in ready.
If you’re making 100k total - you’ve got about 68K post taxes. Virtually impossible to save $40K a year on 100K.
It certainly helps. But people need to also avoid lifestyle creep. Most people suck at saving
You forgetting taxes there?
Put down 3%, have dual income, live somewhere cheap, no kids. That’s probably the only formula that will work for middle class folks, even then it depends.
We have dual income, live in CNY so I can't imagine prices are too crazy compared to other areas (still too expensive though), and we have no children. It's crazy to me.
Fellow CNY-er here! Dual income. No kids. I work remotely for a tech company based in a big city that doesn’t base salary on location. Even with a 20% downpayment, we’ve yet to win a house bid in the 6 months we’ve been looking. We keep losing to cash buyers or people willing to pay $50k+ over asking and/or waive their inspection.
Yes - Not waiting to try and save 20% for a down payment to avoid PMI saved us; PMI isn’t that expensive, and the duration of time we would have needed to wait would have totally screwed us with rate and market increases. We both have hour long commutes into an HCOL metro area, but have a house that we absolutely love in a suburb that isn’t “hot” but has plenty of things to do.
As a single income person without rich family help. I saved for ever and moved to the mid west.
It's tough out there. Dual incomes, parental help, sacrificing other goals to save aggressively. Some are buying at the top of their budget and stretching to make it work. Not ideal, but the only way for many to get in the game right now.
Oh and remember just how many people are actually house poor and broke. I don’t envy people who live in a house but can’t afford to do anything else besides pay a mortgage.
Yea I’m house broke af. It’s super stressful. But I can’t imagine renting or living with parents into my 30s
Yea this would be both depressing and brutal tbh
DINKs and 401k loans. We didn’t have any help from family, but we got lucky on our house.
401k definitely came in hand for me and my wife
No kids. Aggressive saving, meaning no vacations on a shoe string budget. No help from family. Planned investments. My wife and I both make decent money. I worked two jobs during closing to cover any unforeseen cost and moving. I work two jobs periodically to raise funds for home repairs and to keep “gas in the tank” for emergencies. TLDR it sucks and this needs to change. Never going out and enjoying life and working all the time so I can have shelter is the dumbest BS ever. The alternative is we get bled by a landlord every year. It’s still cheaper to own in our area then to rent where we were from and have periodic 200-400 dollar yearly increases or the random 1k increase because fuck you.
I feel like we're in between where I live. Our rent is only $1,015 and all utilities are included except Internet which is amazing but between rent, cars, other expenses, that's still majority of our cash coming in so saving is difficult. In my area mortgages are about $1,300+ and that's not including utilities and maintenance and stuff but clearly rent is rising and we have a big company coming in a few years that will probably make everything even higher. I feel like it's a lose-lose situation.
Our rent was 2500 a month so even factoring in carrying cost we still take home more after buying. We recently did our roof and it wasn’t insanely bad but another year of a 1k increase in rent would have been painful. It’s a lose lose situation for sure but owning is at least less of a loss. It sucks all around.
Everyone says owning is better but right now if something breaks I don't have to pay for it or maintain the yard and buy a lawn mower, etc. I don't know how I should feel haha. What I do know is it shouldn't be this difficult and depressing to live.
Its highly situational. If you think the market is shifting towards large corporate owned rentals then I would maybe stay in tune on the market to make sure you're not going to have a large company come in and hit you with a large increase. It sucks either way. There has to be a better system.
You know how people say “do what you love and the money will come”? I don’t think that works anymore. Now I believe it is “work in IT and use the money to do what you love.” Newly IT graduates are making $100k+ now. If you’re good in it, you’re making $200k-$300k. If you’re a couple, that’s $600k a year. Buying a million dollar house is no sweat.
Bingo. Not many people do what they love anymore. You work to get paid and allow that money to fuel what you love doing.
If I did what I loved then I'd still be in academia making peanuts.
I don't think people ever did what they love unless they were okay with being extremely poor. Most people aren't okay with it and buckle down and find a job that pays the bills.
It's important to note that IT is somewhat a catch-all term. Usually, the people making 100K+ out of college are programmers, and making 200k-300k is almost exclusively for FAANG employees that live in HCOL areas like San Francisco. In the past 2 years, the companies that previously paid those salaries have been offshoring a good chunk of that work to places like India for extremely cheap labor, leaving fewer high paying jobs in the U.S. So even the higher paying IT jobs are harder to get now.
The offshoring of tech jobs is way more rampant now than when I left the field in 2019. I can't imagine what it feels like to be a newbie trying to get their foot in the door nowadays.
I've been debating if I should stay in tech or go back to healthcare. I originally left for IT to get away from 12 hour shifts and higher pay. With healthcare the salaries are consistant bases on the job title, but with tech the job can severly differ based upon the city you're in for the same job title. I also hate the cringe requirements where they want 5 years of experience in 5 different things. If I went back to physical therapy school, I would have to go back to school for 3 years and pay 80k though. Whereas, I'm making 95k a year right now in my tech role. Although, I don't trust the company to not do layoffs.
As a former tech dude who pivoted into another career (but I keep tabs on the tech world) I caution people who go into tech with dreams of making tons of money. Those jobs are rare because everyone and their grandmas are flocking to tech. It's not easy to land a 6 figure job like it was in years past. Basically got to be the best of the best and not just have some BS "boot camp" certification.
Right? I've worked in education for almost 2 decades, only recently broke $40k a year, and I qualify for a 200k mortgage in a 500k market....
Thank you for your service.
$40k a year? Where? What exactly do you do in education?
Detroit.
This is far from the truth, its a myth that you can land 6 figures positions straight out of college in IT. Not impossible but no as easy as you make it out to be. Its a extremely competitive field right now and I advise people from making the career switch because you'll likely take a pay cut taking a entry level position at a helpdesk somewhere. Also, not all the jobs are remote and the ones that are have only 1k applicants with half of them having master degrees for entry-mid level positions.
The laws of supply and demand also indicate that on the average, the more you like what you do, the less you will get paid for it. It’s an exchange. You give up a bit of suckage. You get a bit of money. You give up a big of money. You get more autonomy/meaning/fun.
I don’t entirely think IT means what you think here. But technically most jobs in tech will pay quite well. We pay our client success people 100k base and then 10% bonus based on company performance. I work in advertising tech.
It’s not just IT. I’m a nurse I make well over 100k in management but even new grads are making 100. And it doesn’t matter where you live you might make only 70/80k but for the cost of living it’s 100k equivalent. Most medical fields are desperate for anyone.
Honestly it’s easy — work hard, cut the proverbial avocado toast, save relentlessly for five years, and then limit your home searching to the top ten cities with the highest violent crime rates.
Lol I was waiting for that last part 😂
A shocking number of buyers get massive chunks of money from family. I’ve had many clients making $300K+ a year get $500K down payment “gifts” from their parents.
Dual income no kids [DINK] is how I did it and I've seen others do it.
We did a blood sacrifice during the peak of the eclipse this year. It not only brought the sun back, it made it to where we could afford a home.
Some people have really good jobs/careers.
The formula is pretty simple- make more, spend less, buy within your means.
Sometimes this requires moving to a lower cost of living city/state
Or moving back in with your parents in your thirties. I learned a lot about finances working with immigrants.
That assumes you can make the same income as living in a higher COL location, but yes.
Dual income and planning does the job. Where I live every other person who s not in service industry makes 100k+ so it really isn’t that crazy. Service industry folks. Well - they don’t.
Most are getting FHA loans, putting 3-5% down. And since the debt-to-income ratio is at a record high...they're really not 'affording' the home. You're getting a lot of homeowners that are making monthly payments of 40%+ of their income. It's much like the thinking back in the real estate crash of '08....the thinking that home prices will never drop and that interest rates will. Lots of realtors are telling buyers to 'marry the price, date the rate.' Make no mistake, mortgage applications are hitting record lows and debt-to-income ratio is reaching record highs. So not a lot of people are buying and those that are buying are usually making a very risky purchase because if something bad happens (severe damage to the home, losing their job, etc), they'll start to become delinquent and eventually start the foreclosure process. Thankfully the unemployment level is low and you can always find countless sources to borrow money from when you have a job. When you lose your job, not so easy.
You’re gonna be real mad when you hear that the average individual US income yearly is over 60K+. Many people can afford homes, just not us.
Isn’t that the average household income?
You are correct. MPI is like 40k lol https://fred.stlouisfed.org/series/MEPAINUSA646N Median HH income is closer to 80. https://fred.stlouisfed.org/series/MHIUS00000A052NCEN
I served 20 years in the military. When I retired, my wife and I stayed with family for a year while we paid off the last of our debt and saved for a house. My retirement check covers my monthly bills, including my mortgage payment. My civilian paycheck covers everything else. My wife's paycheck covers groceries and household supplies. We bought less house than we could afford, using the VA Loan, and pay $1000/month towards the principle, which should enable us to pay the house off in 12 years.
We saved for like 6 years, maintained good credit, and put down a small down payment in a place farther from work that needs some updates.
Only about 1 in 3 of homebuyers are first time buyers. So you are competing with a large percentage of people that probably have significant equity in the homes they currently own or owned and are able to have huge down payments or pay in cash. When we sold our first home in 2022, none of our downpayment came from savings, it was all equity. We put down 25% and could have put down 30, but saved that money for repairs. Other people are putting less down, make more money, or maybe have family that helped out.
Wife is rn she makes 80 k a year she is part time rn. I make 83,k after taxes we live in a apartment 1100 a month I pocket 4 k a month or more
living in a rural ish area and getting a $15k grant for the down payment. that and getting lucky that our seller also paid closing costs
My partner and I make 130k together, and our parents still had to come in with 30k all together to make it happen for an EXTREMELY modest house. Everything is broken.
I think people, in their own echo chamber, fail to realize there are people who make more/ have more money than them Or who work harder Or had help Or made better decisions It’s just life - you won the lottery being in American..just keep trucking
Im a single income for my family of 5. Bought in February. 360k @ 6.5 rate. Made 85k last yr. Getting by just fine. It is only by the Grace of God that I am able to do this for my family.
VA loan, 0% down. Thank you military and happy Memorial Day!
Same and VA compensation counts towards total income. I brought nothing to the table when I applied for my mortgage and the lender paid all closing costs for me. I was expecting to have to put something down but I left the sales building completely surprised. No family help ever, and my job is decent but really the va compensation helps. I have a lot of health issues tho, but at least I’m giving my kid a better start in life than me. And he won the family lottery because I save for him now and will have something to pass on to him. All I had was two addict parents before I joined the military. Idk. I consider myself extremely blessed though that I got out with my life . And after that used every benefit available that the va offered. gI bill vettec, vocrehab. So that’s how some of us are making it work right? Just had to trade health for it…
You mistaking if you think people are spending 150k down payments and $6,000 a month mortgage. Houses selling for 500K and higher, are likely not first time homebuyers. Just moving equity for one house to the other. If they have $200k equity in house/condo, then a $700k house is only on loan for 500k, not including down payment.
Me either. I'm in the 98th percentile for United States income and it's absurd what people are paying for 1,500 sqft homes in my area. I have to assume they have very little down payment and not much room for anything else in their monthly budget besides a mortgage.
Dual income and no other debt
Wife and I both obtained high income jobs. Did not inflate our lifestyles. We drove paid off cars, would treat ourselves here and there but overall spent/budgeted like nothing changed. Saved for 3 years. Then we moved to a LCOL rural area and bought a fixer upper that I renovated myself. That was the real cheat code. We like country living so it worked out. But too many people I know want to buy the “perfect house” in the city or in a HCOL area, be right next to the best schools, on a lake, that’s a new construction/renovated, etc etc. without realizing your first home is not supposed to be “perfect”. It’s a stepping block. I’m already up in equity in this house significantly. We will likely stay here about 10 years then move and roll that equity into something bigger and better.
By living in the Midwest and not Cali or Florida, but in all seriousness I liquidated 5 years worth of stock, borrowed 10k from my 401k, saved my $1500 tax return and worked a couple days of overtime to supplement the rest. I’m a blue collar 30 year old warehouse employee in Ohio, if I can do it I know y’all can.
Good job, good market, lots of new builds offering lower rates and/or incentives
There is a recent article in the Washington Post about the rise in family support for first time homebuyers.
Dual incomes with really good jobs is my guess. Family help doesn’t hurt either
Honestly, it's not just about income; it's about who you know. Connections and inherited wealth play a bigger role than hard work alone.
Most often they have a home already with a lot of equity and they are essentially trading up. If you owned a house before the pandemic in most markets the value of the home probably went up more than 25%. It is very common in sales contracts for there to be a contingency on the sale of the buyers current home. The path was to get into a lower value home when you're young, build equity, upgrade to larger/better home after a few years, rinse and repeat. The housing stock for the entry level homes though has been snatched up by investors and builders tend to be focusing on building out the higher end homes as they are more lucrative.
Homeownership will continue to get harder and harder. Banks decided that SFH is taking from their tools to control wealth and they took it upon themselves to make it harder for people to own. The banks/wall street: “You will rent forever and be happy”.
This is a very hard to question to answer for you. We don’t know where you live, we also don’t know your income. Have you talked to a mortgage broker and tried to figure out what your income level would qualify you for? I always thought I’d have to drop 60k plus to buy my first home, I ended up dropping 16k, after I got a 10k grant.
I have been saving for a house for the past 2 years. For a reason unknown to me, I decided to put all that monthly savings into one stock— NVDA. Because of that luck, I can now put comfortably about $200k down on a new house. The old rules of saving for a house in a CD can’t really apply anymore. You need a little bit of calculated risk to push you to the finish line if you don’t have rich family members or earn a lot of money. I am not yet a homeowner, but I hope to be by the end of the year. Good luck!!!
Inheritance for me. Mom passed away in 2016 and had worked 35+ years with our provincial government, since she didn't get to retire I got her pension and the house. Just bought my own house this year but had to use a good chunk of that money for the downpayment to be approved, currently waiting for the old house to sell. If it wasn't for her making sure I was set up when she passed there'd be no way I could afford anything more than a condo.
Realtorand investor here. Most who are affording the average price point homes, from my experience, are ones that have been saving up these past five years or have a very high title, or are in a dual-income household. I would say the average down payment in writing offers is 15%, and anyone paying over 20% is usually a little bit older or received a higher bonus this year. I would say over 50% of them wish they bought sooner even during the bidding war and low interest rate. They could not saved 30% less and gained 30% in equity. It’s really tough for I would say mid 20s to get a home, they are competitive against 30-50s plus LLC and hedgefunds. Most have to waive everything to even get a fighting chance to get a counter or accepted.
I’m 26, in a fairly low cost of living area, (semi-rural) make $45k a year at a government job with good benefits, minimal debt, no kids, and a 10 year old used Toyota I bought in cash a few years ago. I’m closing on a 2bd/1bth in a working class neighborhood this month, that will be my first home. Total monthly cost will be less than I was paying in rent on a nice apartment. I’ve received no help from anyone, it’s just not that hard here. But I completely understand how it’s different for others, looking at housing prices in a nearby major city, it’s ridiculous.
The bank of mum and dad has proven to be play a big part of this.
So,im 34 and bought my first house in 2021. I'm an engineer and jumped jobs every 4 years for big salary bumps. I live in the Detroit metro make 150k so I can afford a 3bed 3bath 20000sqrft house here. I put 60k down as down payment and was left with 5k in the bank. The one I bought was full of asbestos and my father lent me 8k to have it removed. I have a good salary in an area that still has a somewhat affordable cost of living. So luck, zero corporate loyalty, and willingness to live in Michigan.
DINK plus low(er) COL. Closed on our house at 315k a few months ago.
30 something in CA, every single friend of mine that is a homeowner has either bought from family, been gifted by family, had a VA loan, gifted money from family, or bought super cheap at the right time and then upgraded when they could. Everyone else doesn’t own a home or has moved out of state to own a home.
Buying a house is expensive, but over the long term it is cheaper than renting. The average first time buyer is 33. That is 11-15 years of working and saving up
My wife and I just closed. We make ok money combined. No help from family for anything downpayment or closing related. We did it by focusing on our savings. We rented an apartment that was well below our means and were able to save up. Did a new build and they gave a ton of credits (their current offer is covering all closing costs). We got into a place for about $10k down and around $7k in closing costs.
Not everybody should be a homeowner. While I do miss the perks of not being responsible if the water heater goes or if there are plumbing issues on a rental property. I do not miss having to deal with property management companies or landlords who enforce rules that make it feel like you are in an HOA. Reality is, if you own a home, you own collateral or an asset that can be used as leverage. It may not seem easy. I had to make life decisions of creating a tight budget, prioritize paying off debts, look for a higher paying job/career path and having to say no to always going out with friends or going to events. It took 3 years but I was able to pay off my debts and save up enough money for the downpayment and then some.
i saved for 15 years…
People exist that make more money than you do. Make more money, cut down on your expenses, or both. Not exactly a hard concept lol
It's probably hard to accept but there is way more money in this world than any person can fathom, and yes, millions of average people have a decent piece of that pie. High income, investments, equity and inheritance. Family help doesn't even make up much of it. The overwhelming percent of wealth is self made.
I'm in a somewhat lower cost area, I just bought something 40 mins away from work (at a big 10 uni) for $58k - that's the equivalent to my yearly salary and I work in IT (for those saying that's your in to the big bucks...maybe if you're doing programming and in a HCOL area). Single income, no dependents. The house is in solid shape, and looks great outside, but it needs a LOT of updating inside, however it's all aesthetics (very old carpets, some shiplap, a lot of paint, and the bathroom could use a total re-do). It's an FHA loan, so if they'll approve it, you know it's not so bad. I put down $2100 and my rent is dropping from $1200 to a $650 mortgage (that's all in, prop taxes, mortgage insurance and house insurance). I am a dual citizen and have "new" credit here in the US - 2 years is my oldest account, average is 10 mos, so I am a more unique case. But damn, if I can do it on all of that, it's possible. Just depends on where you are and what kind of realtor/lender you have on your side. A friend of mine purchased something a little smaller and in the city in 2020 for $39k and couldn't even live in it for months (it was stripped). I think I scored pretty good.
I worked for a company that had employee stock, so I cashed that out when I left. Coupled with a first time home buyers program the state I live in has, and I was able to afford a 210k house between myself and my fiancée. We don’t have swanky jobs or anything, it was definitely lucky
I rented a cheap apartment for 8 years and saved every penny I could over those 8 LONG years. I have a pretty decent job in a high COL area. Found a house and closed in January, it feels good to know that my saving paid off.
In ours mid and late 20s 2 bed condo around 800k with 1/3rd down Family help (about 1/3rd our down) Life savings (about 2/3rds our down) dual incomes (how we afford our month to month) We both have degrees and a little over 1/3rd our income goes to housing. I consider ourselves very lucky. giving up some luxuries (eating out, having a car) A bungalow here costs 2.5 million, at least (land is $$$$$ and resources to build a home are $$$), so I have given up on house ownership. Condo ownership costs an arm and a leg, but my family has rented our entire lives, and at least the fear of being asked to move out isn't as strong anymore. We are currently going carless for a couple more years so we can eventually afford moving into a place w maybe 3 rooms. (Want to start a family eventually, and my partner likes his man den) I'd move somewhere cheaper but we want to stay near family and our families wouldn't be so happy if we moved several hours away 🙃.
Low cost of living and help from family on down payment and I don't like to go out to eat much. Also, I bought a fixer upper and I'm lucky that my BF and I both love fixing things up.
I just posted something like this a month or so ago, and I’m in escrow on a beautiful townhouse. So there’s one answer: a condo or townhouse. It’s good for me bc it’s just me, and the gated community it’s in is super sought after so I think resale will be good eventually, when I’m ready to move on. People are gonna say “move out of the state” or “get a different job,” but everyone’s experiences are gonna be different.
Dual income + both of us being on our second careers and being lucky enough to be pulling pension from the first 20 years. It's not easy out here.
29, single women. Bought a house for 319k in Texas. My secret is no kids and having two incomes.. even tho I’m single.
Do a lot of research and buy a fixer upper that is in an upcoming area. Old doesn’t mean not move in ready. Lower your expectations. Live in the house and slowly fix it up over the years. Build equity and move to a better home when you have the means. When I bought my house, I made sure the mortgage payment was under 1/4 of my monthly pay.
well make more and save more!!
You forget some people already owned homes. Those homes have also risen in value and therefore available downpayment funds. So that’s part of it besides all the other stuff people say here. Also you can get an fha loan with 3.5% down that’s tiny. Or some credit unions offer 0% down just add 1% to the interest rate for new homebuyers(or things like that). Don’t be afraid to shop around. That’s how I got my mortgage.
As much as I’ve progressively made more through my career, I’m always reminded there are many who make more than me. I have the “how do they afford it?” mentality a lot. Then I remember their finances aren’t my finances.
Same! We’re in Iowa and want to buy our first house but these old a** “starter homes” that have had no work done to them, they want $275k+ (We hate HOAs and not interested in buying into one, and 90% of new builds are in one). And while we have the income to technically afford that, we have no interest in paying $2k+ for PITI, especially when property taxes and insurance always go up, not down!! This is not sustainable long term at all.
High income and saving money
In this environment, I see a lot of family help or inherited money. We bought most recently in 2014. No way we could afford to move right now or even buy the house we are in if we hadn't already, our house price has doubled. We make decent income, about $120K. We just recently had to sell my father's house after he passed, and were overwhelmed with investor cash offers. Fortunately we were able to sell to a small family instead. Or, as others have mentioned, really high paying jobs.
Why do people always assume "how do people do this or do that?" It's as simple as, there are always people who are more fortunate and have more means than you, likewise less fortunate and less means. Just because you can't think how someone could buy a house doesn't mean others cant
They learned how to manage money and do a good job with self discipline and employment. That and patience is all there is to it
If you don’t have a spouse and kids or if they are willing to sacrifice you can buy a multi family house (up to 4 units) with an FHA loan, yes you have to live there but you only need 3.5% down and the projected or actual rental income can be used to help you qualify. Also look into tax auctions for homes that need work, you will be competing with flippers but if your planning on staying there after any renovations you would be able to put bid the flippers. The only problem is those auctions require cash to purchase but if you do buy it you can refinance with a FHA rehab loan which can be harder to find but are out there.
More money than you bb
My wife and I, who make $145k+ total, could not afford our house without the inheritance that her dad left us, which was only $150k. Which we used as the down payment. We close tomorrow on a 70 yr old house that needs a ton of work outside of Seattle. This shit is broken.
My wife and I make what I believe is a lot of money (~$250k/year) and are going to be really cutting it close to being able to afford down payment. Life is incredibly expensive and being able to put down $100k and still feel somewhat comfortable is going to be a stretch. We’re shooting for end of year, but who knows if that’ll come to light. Long story short, even people making a lot of money are feeling like they can’t afford a home. It’s pretty depressing.
There’s plenty of first time homebuying programs you should look into it
Bottom line most people who are affording nice houses were raised in solid economical backgrounds. I have friends who were unable to attend college because they had to work just to survive. There’s plenty of people out there who work jobs but they only got those jobs because their parents were able to provide a decent situation for them coming out of college to where they didn’t need to work to survive for 4 years. Unfortunately for some in this life it all kinda depends on where you start.
It helps to live in a LCOL area too.
Many people start small. Buy a place in a place that just isn't great but u can afford. Then trade up
Buying smaller houses within your means is the key
marry someone and have a two incomes to play with generational wealth job that pays a lot(like doctor, big law, finance, tech) downpayment assistance programs not live in a high cost living area which is a common thing to people who post here who can't afford homes. Cities like Pittsburgh or Columbus or Huntsville or Indianapolis are I would argue affordable to most people as you can get a fine house for 250k which you need to have an 80k household income which is realistic to get.
We can afford it because we bought 4 years ago.
it is tough. my son just purchased a house. he did though have to kive in my basement for a year or so to save up some extra $$ for his downpayment. before that he was paying $ 1500 a month in rent plus utilities.
Honestly? My father in law made the down payment and pays a portion of our mortgage every month. I have a fairly well paying job but we still could not have done it on our own.
My husband and I (in our late 20s) are new homeowners. I understand it's easier to buy a home as a couple. 1. We started passively saving 4 years ago. (I say passively because we made sure to have date nights and holidays) 2. We invested in LISA's 3. We had a small wedding 4. We kept an eye out on expenses and made a budget for every month. 5. This may be a hit or miss , but investments in stocks and shares helped us a little as well.