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balor123 · Joined: 08 Mar 2008 Posts: 1204

This time it was a couple who HAD to be in Coolidge Corner. Not even a 5min walk away. He is a camp counselor and she is an accountant at a university so I can't imagine that even together they make that much. Assuming 36% limit, that means that they have an income of ~$65k. They did have $80k to put down and were approved for a $450k loan. They didn't end up buying because they weren't in love with what they found but they were willing to consider places up to ~$450k. They also need 2 parking spots which seem to run around $200/mo each and the HOA fees run around $500/mo around there. That puts them at a ratio of 6.8x + $700/mo in fees. At least they were looking below their limit ($530k) but I wouldn't call them conservative - they were only doing it so they could afford an annual trip to visit her family (she sounded Spanish). These were all 2br places btw.

Now he third one in Boston this year. If these people are typical, then it ios evidence of why housing is so expensive for the middle class here. Those in the lower middle class are willing to spend 2.5x what the rest of us are as a function of income! I don't think most Americans are this way (the rest were buying cars, TVs, and overly expensive college tuition) but it helps us understand what will be necessary for Boston to become affordable to the middle class again: the competition will need to be spending at sane levels relative to their income again. Unfortunately, the longer this continues the longer that survivorship bias will make this increasingly unlikely.

admin · Posted: Mon Feb 22, 2010 3:54 pm GMT Post subject:

Hey, do you see that episode on the recent list?:

http://www.hgtv.com/house-hunters/show/index.html

There's one with a couple looking in Charlestown, but it sounds different from what you're describing.

- admin

CC · Guest

The mortgage payment is around $2100 plus probably $4-500 property tax and HOA fee....etc. How can they handle it with $65k a year? $800 for everything else?

This must be just a story......

balor123 · Joined: 08 Mar 2008 Posts: 1204

Sorry I think it was property virgins. I described this House Hunters in another post. It was a similar story though.

I wish these were stories but I don't think they are. It's at least a plausible explanation for how the cost of a median middle class house in lesser Boston area costs $400k - $500k.