Friday, September 29, 2023

mr peters addresses housing costs in this essay. the cost of a house plus the taxes therein seem to be rising much faster than you would anticipate. some is certainly the government created inflation but part seems to be blackrock and their like buying houses for income producing rental property. and it seems intentional as part of their destroy everything so they can build it back as they like. when they're defeated as i imagine they will be, in the end, we'll be left to put it all back together again somehow;

Houses in my area – a rural county in SW Virginia – didn’t used to cost so much that most who live here couldn’t afford to buy one.

They do now.

Here is an example. This small house –  it is only about 1,100 square feet – just went on the market for just shy of $300,000. It would cost (according to the estimate that runs with the ad) some $2,100 per month to live in this house, assuming you could afford to put 20 percent – just shy of $60,000 – down. Plus just shy of $12,000 on top of that for closing costs – for a grand total of just over $70,000 due on the day you get the keys.

The average individual living in the area earns just shy of $26,000 annually. Family income (dual earner) is just shy of $46,000. Very few individuals or families who live here can afford such a house.

The usual lending standard defining “affordability” is the 4-1 ratio of income to home cost. Thus, a family with a $46k annual income could handle the payments (including the down payment) on a home that cost about $184,000.

There are fewer and fewer homes available for that amount of money in my area. The question arises: Who is buying these $300k-plus homes, then?

The answer seems to be twofold..........more......

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