Who can afford this shit.

dingobingo · Jan 12, 2020

This is tied to the unemployment thread:

*notice* I know I can afford this, my question is about companies only building high end luxury appartments.

I live in Cincinnati, Ohio. I currently make close to six figures ( not bragging, trying to make a point). I used to rent, and I'm currently paying for my MBA ( did not take any student loan). I'm in the process of saving for a condo, and I'm looking to buy in 6 months. looking at these prices for condos, who the fuck can affoard these gentrification costs.. 220 k for a 1 bed/ 1 bath/ half bath. Like who makes that kind of money there is nothing affordable. If I'm having doubts paying inflated prices, who the hell buys these units. It just does not make any sense. Only thing that seems to being constructed is high end housing. Surely there cannot be so many people in my age range and location that can afford this???

*rant over*

ElectricBlanketFire · Jan 12, 2020

I wrongly assumed making 6 figures makes you king of Ohio.

Fat4all · Jan 12, 2020

i live somewhere where rent isn't too bad, but i make bad money so i cant afford the cheap prices anywho

Drew Barrymore Keanu Reeves - CINCINNATI ( uncut )

The song 'Cin-cin-ati from Babes In Toyland - complete with Keanus most excellent dialogue and an unhappy ending for the young Drew Barrymore.

www.youtube.com

TaySan · Jan 12, 2020

I'm convinced in the next decade every major city in America is going to be out of reach for the masses. I can never dream to own a place of my own.

2PiR · Jan 12, 2020

With six figure salary, if you think 220k for 1bed room is too much. Then you need to budget. Because you can definitely afford that.
you really can't save 44k in couple of years for 20% down payment?

SpottieO · Jan 12, 2020

dingobingo said:
This is tied to the unemployment thread:

I live in Cincinnati, Ohio. I currently make close to six figures ( not bragging, trying to make a point). I used to rent, and I'm currently paying for my MBA ( did not take any student loan). I'm in the process of saving for a condo, and I'm looking to buy in 6 months. looking at these prices for condos, who the fuck can affoard these gentrification costs.. 220 k for a 1 bed/ 1 bath/ half bath. Like who makes that kind of money there is nothing affordable. If I'm having doubts paying inflated prices, who the hell buys these units. It just does not make any sense. Only thing that seems to being constructed is high end housing. Surely there cannot be so many people in my age range and location that can afford this???

*rant over*

Where are you trying to buy in the city? I would assume Cincinnati has suburbs where 220 can get you a decent sized house. 220 for a condo in the urban core here would be the deal of a lifetime.

but yeah you should 100% be able to afford that on your income unless there is something you didn't say.

Masoyama · Jan 12, 2020

220k condo on a 6 figure salary should be a mortgage under 10 years. Seems pretty easy TBF

blame space · Jan 12, 2020

i make an assumedly low five figures and i AM the king of Ohio. all the pizza and video games money can buy.

KingM · Jan 12, 2020

dingobingo said:
This is tied to the unemployment thread:

I live in Cincinnati, Ohio. I currently make close to six figures ( not bragging, trying to make a point). I used to rent, and I'm currently paying for my MBA ( did not take any student loan). I'm in the process of saving for a condo, and I'm looking to buy in 6 months. looking at these prices for condos, who the fuck can affoard these gentrification costs.. 220 k for a 1 bed/ 1 bath/ half bath. Like who makes that kind of money there is nothing affordable. If I'm having doubts paying inflated prices, who the hell buys these units. It just does not make any sense. Only thing that seems to being constructed is high end housing. Surely there cannot be so many people in my age range and location that can afford this???

*rant over*

I believe the high-end construction projects have run into snags in many big cities. I just read something about a lot of luxury condos in Manhattan going unoccupied for years because.no one can afford them or choose to live in some place that costs half as much for the same space, or more.

For the price you can definitely fine something nice in the city though, though perhaps not as high end.

xxracerxx · Jan 12, 2020

How much do you pay in rent? $220K seems doable on a six figure salary.

blame space · Jan 12, 2020

actually can we talk about the "figures" thing? like someone who makes 100k is anywhere near the person who makes 999k.

or, hell, that the person who makes 10k is even anywhere near anyone else.

msdstc · Jan 12, 2020

I think the argument here isn't if they can afford it... Its that a 1 bedroom at 220 is ridiculous, how are people with average pay supposed to afford this?

dingobingo · Jan 12, 2020

pong123 said:
With six figure salary, if you think 220k for 1bed room is too much. Then you need to budget. Because you can definitely afford that.
you really can't save 44k in couple of years for 20% down payment?

I know I can affoard that, but 220k for a 1 bedroom.. like wtf, how can people that are bot in the same pay grade afford this shit, and why are they making only luxury homes.

Dreams-Visions · Jan 12, 2020

ElectricBlanketFire said:
I wrongly assumed making 6 figures makes you king of Ohio.

YOu can easily pay $2,500/mo for an apartment in Ohio, not in a downtown area.

Jarmel · Jan 12, 2020

msdstc said:
I think the argument here isn't if they can afford it... Its that a 1 bedroom at 220 is ridiculous, how are people with average pay supposed to afford this?

They don't.

jb1234 · Jan 12, 2020

msdstc said:
I think the argument here isn't if they can afford it... Its that a 1 bedroom at 220 is ridiculous, how are people with average pay supposed to afford this?

And that's kinda on the cheap end from my perspective. In Seattle, that same condo would go for 500K.

RedOnePunch · Jan 12, 2020

Now Imagine living on the west coast.

blame space · Jan 12, 2020

is living in a big city even that good?

dingobingo · Jan 12, 2020

msdstc said:
I think the argument here isn't if they can afford it... Its that a 1 bedroom at 220 is ridiculous, how are people with average pay supposed to afford this?

Yep, worded it wrong lol. The only shit that is being made is luxury housing

whatsinaname · Jan 12, 2020

Masoyama said:
220k condo on a 6 figure salary should be a mortgage under 10 years. Seems pretty easy TBF

1 bedroom. Then consider HOA fees which are usually $200-300+ in a place like OP is looking at. And property taxes.

2PiR · Jan 12, 2020

dingobingo said:
I know I can affoard that, but 220k for a 1 bedroom.. like wtf, how can people that are bot in the same pay grade afford this shit, and why are they making only luxury homes.

well because people can, and there is demand. I used to think the same, like who buys homes/condo in Toronto, prices here are NUTS. But apparently MANY MANY people can and are buying. I guess buying a home on minimum pay has long gone.

dingobingo · Jan 12, 2020

RedOnePunch said:
Now Imagine living on the west coast.

Used to live in Dubai, I know how expensive houses can get, but in Dubai salaries are pretty good

KingM · Jan 12, 2020

dingobingo said:
I know I can affoard that, but 220k for a 1 bedroom.. like wtf, how can people that are bot in the same pay grade afford this shit, and why are they making only luxury homes.

Profit. Developers dream of having a high rise filled with people making at minimum 100K plus and charging a quarter mile per unit minimum. Better to have half your building unoccupied if every unit costs 250k vs filling it up at 100K.

One in Four of New York’s New Luxury Apartments Is Unsold (Published 2019)

A quarter of the new condos built since 2013 in New York City have not yet found buyers, according to a new analysis of closed sales.

www.nytimes.com

peteykirch · Jan 12, 2020

dingobingo said:
This is tied to the unemployment thread:

I live in Cincinnati, Ohio. I currently make close to six figures ( not bragging, trying to make a point). I used to rent, and I'm currently paying for my MBA ( did not take any student loan). I'm in the process of saving for a condo, and I'm looking to buy in 6 months. looking at these prices for condos, who the fuck can affoard these gentrification costs.. 220 k for a 1 bed/ 1 bath/ half bath. Like who makes that kind of money there is nothing affordable. If I'm having doubts paying inflated prices, who the hell buys these units. It just does not make any sense. Only thing that seems to being constructed is high end housing. Surely there cannot be so many people in my age range and location that can afford this???

*rant over*

LOL That's cute.....

My Fiance and I are making over six figures combined in NJ, and we can't even begin looking at homes where all new construction is from the low 800s. Our 1 bedroom apartment is 1800 a month. We've been scrimping and saving so we could move to somewhere in NC where the cost of living is a bit more realistic.

LewieP · Jan 12, 2020

You can afford it.

You are the demographic who can afford it.

People on average or below salaries cannot.

dingobingo · Jan 12, 2020

whatsinaname said:
1 bedroom. Then consider HOA fees which are usually $200-300+ in a place like OP is looking at. And property taxes.

Yep, I just dont see how luxury housing that is constantly being built can be filled

xxracerxx · Jan 12, 2020

msdstc said:
I think the argument here isn't if they can afford it... Its that a 1 bedroom at 220 is ridiculous, how are people with average pay supposed to afford this?

The units that OP is looking at is not aimed towards average paid people (unless a double income).

Pockets · Jan 12, 2020

I could afford this shit. But who could afford this shit?

Man, that's some funny shit. lmao

Mass Effect · Jan 12, 2020

Yeah it's ridiculous. Even in "smaller" cities like yours housing costs are going through the roof (no pun intended). That's why telling people who live in larger cities to just move to another city is terrible advice because, not only does it not solve the problem, it's going to follow you anyway if you move to anywhere even remotely desirable.

It's unsustainable.

nightstalker962 · Jan 12, 2020

Dude, move to Michigan. My cousin bought a decent condo for $90,000.

Juice · Jan 12, 2020

The brain drain from rural Ohio, Indiana, Kentucky, and Pennsylvania to Columbus and (to a slightly lesser extent Cincinnati) has led to their real estate markets beginning to resemble more traditionally wealthy metros.

Nobody writes home about the (non-chili) skyline of either city, but as much or more wealth is generated in what amounts to a pretty small downtown area that it's inevitable that prices would increase and developers would be incentivized to maximize margin on luxury housing.

Of course, because it's still Ohio, I would strongly recommend against anybody buying a condo unless they were seriously looking at living in it for 20 years. Resale prices on condos are always garbage when there's plenty of new places to sprawl into through gentrification of other parts of the city or renewal of nearby suburbs.

For reference, in 2007 my Columbus 1BR apartment was $700, creeping up to $1000 by 2011, at which point I moved to a 2BR townhouse priced at $1330 (neither of these places were within 8 miles of downtown). In 2013 I bought a 1980s-build house appraised at $193k, also a solid 15m drive without traffic (1h drive with). In 2019 its value had increased to about $275k.

There is probably a real estate bubble and the market is overdue for a downturn. I think with the advent of remote knowledge work, Columbus's (relative to tech and finance hubs) affordable cost of living will insulate it somewhat, but man I'd really hesitate before stretching myself to buy something I couldn't easily afford right now

capitalCORN · Jan 12, 2020

dingobingo · Jan 12, 2020

Mass Effect said:
Yeah it's ridiculous. Even in "smaller" cities like yours housing costs are going through the roof (no pun intended). That's why telling people who live in larger cities to just move to another city is terrible advice because, not only does it not solve the problem, it's going to follow you anyway if you move to anywhere even remotely desirable.

It's unsustainable.

The city has like 5 new condo buildings in a specific area and they are all 200k + easily 1k units. Who can fill that up

Kamagii · Jan 12, 2020

That is the cost of living in any major city sadly. I live 30 min outside of Toledo and some of the run down piles of trash cost more than my 3 bed room 2 1/2 bath house.

it's weird but one thing I have learned live in the suburbs work in the city

Damaniel · Jan 12, 2020

dingobingo said:
This is tied to the unemployment thread:

I live in Cincinnati, Ohio. I currently make close to six figures ( not bragging, trying to make a point). I used to rent, and I'm currently paying for my MBA ( did not take any student loan). I'm in the process of saving for a condo, and I'm looking to buy in 6 months. looking at these prices for condos, who the fuck can affoard these gentrification costs.. 220 k for a 1 bed/ 1 bath/ half bath. Like who makes that kind of money there is nothing affordable. If I'm having doubts paying inflated prices, who the hell buys these units. It just does not make any sense. Only thing that seems to being constructed is high end housing. Surely there cannot be so many people in my age range and location that can afford this???

*rant over*

If you wanted to live in downtown Portland, you'd be begging for a 1 bedroom condo for only $220k, and you'd have to go way, way out of the city center (think east of 82nd Avenue) to find houses that cost less than $300k (and anything sub $300k is going to be super tiny or in need of a lot of work). Even decent suburban houses are all $450k or more. Based on sane lending guidelines, a person who makes $100k per year with 20% down would have a hard time spending $300k, let alone $450k - yet all the housing is all that expensive, and the average household income here is only around $60k. Housing is fucked.

Officer Big Mac · Jan 12, 2020

nitewulf · Jan 12, 2020

Two incomes increases affordability drastically. The costs don't double.

xxracerxx · Jan 12, 2020

dingobingo said:
The city has like 5 new condo buildings in a specific area and they are all 200k + easily 1k units. Who can fill that up

People like you. People that want to live close to downtown and on the waterfront.

jukeboxhero2396 · Jan 12, 2020

move to delaware where you can get a house for that much.

EchoChamber · Jan 12, 2020

Officer Big Mac said:

Ew light theme.

dingobingo · Jan 12, 2020

juice said:
The brain drain from rural Ohio, Indiana, Kentucky, and Pennsylvania to Columbus and (to a slightly lesser extent Cincinnati) has led to their real estate markets beginning to resemble more traditionally wealthy metros.

Nobody writes home about the (non-chili) skyline of either city, but as much or more wealth is generated in what amounts to a pretty small downtown area that it's inevitable that prices would increase and developers would be incentivized to maximize margin on luxury housing.

Of course, because it's still Ohio, I would strongly recommend against anybody buying a condo unless they were seriously looking at living in it for 20 years. Resale prices on condos are always garbage when there's plenty of new places to sprawl into through gentrification of other parts of the city or renewal of nearby suburbs.

For reference, in 2007 my Columbus 1BR apartment was $700, creeping up to $1000 by 2011, at which point I moved to a 2BR townhouse priced at $1330 (neither of these places were within 8 miles of downtown). In 2013 I bought a 1980s-build house appraised at $193k, also a solid 15m drive without traffic (1h drive with). In 2019 its value had increased to about $275k.

There is probably a real estate bubble and the market is overdue for a downturn. I think with the advent of remote knowledge work, Columbus's (relative to tech and finance hubs) affordable cost of living will insulate it somewhat, but man I'd really hesitate before stretching myself to buy something I couldn't easily afford right now

Yeah, Cincinnati has been growing and Cbus too. I just cannot believe all these condos and new developments can be filled, it's not possible. I'm blessed to have a great job. But its just impossible for people here to affoard this stuff.

Avitus · Jan 12, 2020

Large holding companies plus foreign money being parked.

dingobingo · Jan 12, 2020

xxracerxx said:
People like you. People that want to live close to downtown and on the waterfront.

Lol

Doom · Jan 12, 2020

OP, you don't need the fabled 20% down as a first time buyer. It's completely unnecessary and is just something to chase because it means you won't pay PMI if you do. Considering the rent payments from renting, even at 3.5-5% down you're probably not paying much more than you are renting.

Not that you're not wrong about housing being egregiously price, but there are a lot of common misconceptions that prevent people from buying because they think they "can't".

AlexMeloche · Jan 12, 2020

Seems pretty normal to me? I mean, in the suburbs of Montréal (let's say in Laval), the average 1 room condo is around 225-250K. The average salary is around 38K.

Quantza · Jan 12, 2020

Capitalism squeezing as always. Don't think the demand is high enough yet for things to change. You'd know lol.
If a lot of 'tech' workers live there (software dev and engineering), that might be the reason.

ItIsOkBro · Jan 12, 2020

Complaining about $220k?

*cries in Torontonian*

Try sub 400sq ft bachelor pads starting at $400k

xxracerxx · Jan 12, 2020

dingobingo said:
Yeah, Cincinnati has been growing and Cbus too. I just cannot believe all these condos and new developments can be filled, it's not possible. I'm blessed to have a great job. But its just impossible for people here to affoard this stuff.

Average rent in Cincinnati is $1,028.

https://www.rentcafe.com/average-rent-market-trends/us/oh/cincinnati/

Now say someone puts 10% down on the $220K condo, the mortgage would be $1,288 with PMI according to this mortgage calculator:

https://www.mortgagecalculator.org

Deleted member 39374 · Jan 12, 2020

6 figures in Ohio is like being a millionaire in CA

You're lucky, OP. Go buy a huge McMansion in the suburbs for like 200K lmao

dingobingo · Jan 12, 2020

Doom said:
OP, you don't need the fabled 20% down as a first time buyer. It's completely unnecessary and is just something to chase because it means you won't pay PMI if you do. Considering the rent payments from renting, even at 3.5-5% down you're probably not paying much more than you are renting.

Not that you're not wrong about housing being egregiously price, but there are a lot of common misconceptions that prevent people from buying because they think they "can't".

Yeah I'm aware it was just something that confused me. Now that I'm looking at houses and stuff it blows my mind

Who can afford this shit.

What year is this?

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