house poor

I really hate when I hear people buying a home and becoming house poor. The couple that just bought the home next to us are already having issues :(. They have only owned it for 3 months.  She was telling me they could afford the house payments but it is the hidden costs that are hurting them. She said they now have no money left to put in saving or retirement so she said she will never be able to retire 🙁 sadly she told me that if something breaks they could not come up with funds to repair it

I guess they did not factor in extra cost in electric, water, taxes, insurance, and HOA fees. now they have two kids driving and they did not even think about insurance on youthful drivers and both will be heading off to college in two years. these kids are from a blended family his and hers not twins. and in my area in you are divorced you have to pay at least 1/3 of the college. She was not aware of this but both are heading to court next month to get college lined out and she will soon realize they will be putting out at least 16,000 a year.

I wish I could help them but I am afraid they will lose this home within a year

I am confused why people put themselves in such a hard place. The are in their 40’s and the got a 30 year loan!

I just try to be here and listen and I usually try to have a BBQ once a week to feed them  not sure if it helps or not.

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1 week ago

Yikes, that’s tough.

My husband and I have talked about moving to a bigger house, but I don’t think we ever will because we’re terrified of being house poor. Also, we’re in a great location. We’ve decided to do some renovations and work with what we’ve got.

Best of luck to your neighbors.

1 week ago

@queenofegypt at times that is the best bet

1 week ago

In our greedy capitalistic society banks and mortgage companies totally take advantage of people. H and I were told we would be approved for a mortgage 3X what we purchased. Is it my dream home? No. Are there things I would change if I had the funds? Yes. But I prefer to feed and clothe my family. And have a reliable car and furniture. Save for college and retirement. People need to be smart. And banks need to not take advantage of the not-so-smart.

1 week ago

@marathonmama I agree! this couple really should have waited 6 years to buy a large home. they could get both kids out of college and only have the youngest  one. I cannot foresee their income going up enough to cover these expenses.  Even if they both get good raises every year it will not be enough. I pray the kids get scholarships but they goes on the kids 1/3

 

1 week ago

I expect many are barely treading water.

1 week ago

@byfaithalone it is sad… if something goes out they go under. they bought this house before they sold their other home… they were thinking they could sell it w/o a realtor but they ended up having to use one and sold it for less so that put them Back 60,000 or so

1 week ago

@kaliko eyow! Counting chickens before they hatch.!

1 week ago

@byfaithalone true… it is not living if you have to work 50 to 60 hours a week and still worry if you have a high electric bill… you do not need a half million dollar home if it takes you 30 years to pay it off and live pay check to pay check..that would freak me out

1 week ago

I live in an apartment, but I want to move into a town house so I can have a little more space. I’m being cautious, though, because I don’t want to get myself into a bad situation. I’m in school right now, so it will probably be next year before I begin seriously working on it.

1 week ago

@mara3470 smart gal!

1 week ago

It’s too bad they didn’t factor in all the associated costs, if they were experienced home buyers (having owned previously) they should have been aware of what they were signing on to!