I make 450k and I can't buy a home right now

I agree with the last sentence.

It's strange to see people complaing about rising real estate prices. Normally, that is considered a sign of high demand and prosperity. As opposed to falling real estate prices (as in 2008(, which is a sign of low demand and economic recession.

• 20% down payment (in your case, that would be about $240,000)
• Credit score above 750
• No more than 30% of your gross income going to mortgage (ideally less than 28% but some banks allow up to 33%) (in your case, that would be $11,250/mo. Calculating your loan at 5.5% interest would allow you to borrow just under $2M)
• All loan payments, mortgage, car loan, credit cards, student loan must be less than 40% of your gross income.
• Preapproved by a mortgage lender, so you can get a mortgage within 30 days of acceptance.

If you are getting outbid by "cash" buyer. Take the finance clause out of the contract. Sellers will now rank you alongside the cash buyers. If you win the bid, you cannot back out if the mortgage falls through. Beware.

I second this. We live in the mid west, husband makes ~850-900k per year, we're debt free and have a great lifestyle.

You live in the Midwest.

I own one car thats from 2007 and has 250k miles on it. no debt.

all my current cash is going towards groceries, swim lessons for kids, wife gym etc.

I honestly have no major expense outside paying the government money to live in this beautiful well functioning crime free state of NY with amazing roads and bridges.

New Canaan market should be hot going forward. I still think interest rate will dampen the housing market soon. I imagine a lot of white professionals with kids who don't want to raise their kids with NYC criminals (you know who they're) will want to move out there.

Which is why I posted earlier that there's a big difference between the NYC co-op market and suburban market.

If you make half his salary and live in a more expensive house, how did you qualify for the mortgage? 200K salary is not going to qualify for a $1M mortgage. Or you like me, live in a $1.2M house that I bought 12 years ago for $500K. Then your situation is not equivalent to his. You could not qualify for the house you live in if you have to start over from scratch.

Yes. And?

Wait, you don’t know?

Can’t believe such a sniveling lil’ biatch is in I-banking. BulgeBracket dudes i know are mostly tireless pedal2themetal workers with don’t take defeat personalities. U sound like the dude who cries & complain: i run X-miles/wk & do my workouts in XX:XX, but so and so still beats me in races…boohoo.

Agree. A gross, fake humblebrag. I can't believe people make threads like this. I especially like the post about him mailing bank statements or whatever to the mods. What? LOL.

You added an extra zero there.

Same thing happened to me in Colorado last year. Would offer 50k over and still be outbid by 50-100k. I had to look further up the mountain and buy a fixer. It worked out ok but it was irritating for sure.

1) I didn’t say I made $200,000, I said I make half what the OP makes.

2) I live in an expensive area. People throwing half their incomes at their mortgages is not uncommon. I don’t do this, but it wouldn’t be crazy abnormal and the lenders in my area seem to know this.

3) Unlike the OP, I was somehow able to spend money/invest well and racked up a pretty decent down payment. I admit, I am a little puzzled that I’m better at investing than an investment banker.

4) I did benefit from lower interest rates than are currently available. I could still make it work at 5.5%, but it would be tight. Again, the OP makes twice what I make.

5) I guess I should add, property taxes in my state are low, particularly compared to the OP’s area. State taxes are high, but having a large mortgage helps a bit with that.

Be patient.

We have an inventory problem that is years in the making due to 2009 and elitist zoning.

Things are changing:

Data from the top 35 markets (Calculated Risk)

Inventory in these markets were down 34% YoY in January, down 8% YoY in April, and are now up 42% YoY! So, this is a significant change from earlier this year, but about the same YoY increase as in July (up 43% YoY).

In the short term, we may see a seller's strike as homeowners adjust to price growth declines or actual declines, so inventory will go up and down in spurts.

The crappy zoning isn't going away soon, but 6.25% mortages will cool the market-eventually.

BTW, owner equivalent rent and rent for primary residences make up 40% of the core CPI. OER lags home prices by about a year, so expect last year's home prices to burn through OER and CPI for some time, but it won't say all that much about current general price trends.

If the Fed doesn't recognize this mechanical inflation, even if home prices fall, you may see a real recession and be able to get a home much more cheaply as the Fed runs the risk of over-tightening.

To read a high profile story about elite zoning. See:

fortune.com

The Silicon Valley royalty that populates America's richest town is fighting tooth and nail to keep 58 new housing units from being built

It’s not just star tech investor Marc Andreessen. Big names from Apple, Google, and Netflix really don't want anything new built in their backyard in Atherton, California.

Link:fortune.com/2022/08/13/atherton-califo...

You’re an investment banker and can’t figure out alternative financing where you present an all cash bid?

Or did you mean you’re an investment baker?

Its anonymous, how can it be a humble brag? Its a good thread, it shows how different situations can be at the extremes. As someone astutely pointed out earlier, this dude is getting taxed at a rate 90% of the folks on this thread cant imagine. He is taking home half at best of that 450. NY tax is out of this world. And he just started making that 450. Completely adds up that he would have difficulty in that situation and in a very expensive housing market. Its nuts right now. The numbers add up. Coming up with 200-300K down payment alone is tough. Everything he has said makes sense.