bostonbubble.com

lucidguppy · Joined: 28 Feb 2010 Posts: 8

I've been looking to buy a house for a whole year. It's just so disappointing. I drive through town after town of paint peeling houses and ready to be derelict buildings. A lot of houses just don't even make sense layout-wise.

I keep looking at $300,000 houses that to me just don't seem livable. Like they need another 50-100k just to be good enough to get into. Then you look up what they sold for before and its close to 150,000. I feel robbed. Does that mean the value of the dollar has halved in the past 15 years?

Am I just ignorant? Is an engineer's salary not enough to live in this state? How do all the other people live here?

How do I know which towns I can afford? Should I settle for mediocre school districts?

Wonky · Guest

I don't think you are doing anything wrong. Whenever I look at the Boston area real estate ads it seems like all I see are dilapidated shacks that should be demolished. It's like the third world! In some towns, even the 500k + homes are like this. Does anyone REALLY think these poorly maintained buildings are worth that much? Evil or Very Mad

Renting in Mass · Posted: Mon Mar 01, 2010 2:11 pm GMT Post subject:

It's not just you Wonky. I've been looking at crappy 300k houses for three years now.

Renting in Mass · Posted: Mon Mar 01, 2010 2:11 pm GMT Post subject:

My previous post was meant to be addressed to the original poster.

john p · Joined: 10 Mar 2006 Posts: 1820

To go further along these lines, if an area is prone to the uplift of "Irrational Exhuberance", they will also be prone to doing other stupid things. How can an area be competitive if people are prone to doing stupid things? If the barrier to entry is that you have to make an idiotic decision to overpay for something, is that a club you want to join?

Thankfully, there are a number of towns available where you can get into Boston in a decent amount of time and get the Price to Household Earnings ratio in alignment.

http://www.boston.com/news/local/massachusetts/articles/2010/02/28/runaway_health_costs_are_rocking_municipal_budgets/

I mean some towns like Everett (from the story above) gave free health coverage for LIFE to someone who worked there for 8 years. I mean I'm not sure if that is even legal because people are voting for expenditures that future generations have to pay for that can't weigh in now. I know that people take on long term debt, but this is totally different; the people who controlled power in the public hackerama have totally tucked it to our generation and have brainwashed everyone to think that it is in their best interest to have a Town Selectmen get a lifetime pension for a short term in office, (many of which for a part time job). I mean even the younger Union Members are being fleeced; they pay Union dues and the only jobs that are being protected are the older more senior members who throw the younger ones under the bus.

balor123 · Joined: 08 Mar 2008 Posts: 1204

john p · Joined: 10 Mar 2006 Posts: 1820

$339k in Abington

http://www.realtor.com/realestateandhomes-detail/Abington_MA_02351_1114897231

36 minute ride on commuter rail from Abington Station to South Station.

http://www.mbta.com/schedules_and_maps/rail/lines/?route=OLCOLONY

CC · Guest

You are not alone! Many houses are so crapy. Ceilings are so low and layouts are very illogical. Who designed these properties??

And of course, if it's close to Boston, the asking price is very high. However it's getting lower now.

I started to look cities like Hopkinton or Hudson, but I am not so sure, because I have to drive almost 75 miles a day! Too far!! 90 also charge too much (they talked about remove the toll for years!!!).

john p · Joined: 10 Mar 2006 Posts: 1820

The best most affordable towns I like are (keep in mind that some neighborhoods in these towns are surprisingly affordable) and you can get to Boston in maybe just over 35 minutes, smooth sailing...:

Melrose,Wakefield, Lynnfield, Danvers, Topsfield, Boxford, Ipswich, Gloucester, Manchester, Beverly, Hamilton, Wenham, Newburyport, Newbury, Essex, Andover, Bedford, Acton, Wayland, Medfield, Hopkinton, Holliston, Northboro,Southborough, Needham, Canton, Norwood, Hanover, Pembroke, Hanson, Halifax, Plympton, Kingston.

http://www.realtor.com/realestateandhomes-detail/5-Tremont-St_Beverly_MA_01915_1114729529

http://www.realtor.com/realestateandhomes-detail/54-Laurel-St_Gloucester_MA_01930_1114412766

http://www.realtor.com/realestateandhomes-detail/8-Pine-St_Ipswich_MA_01938_1111417234

this is kind of nice:

http://www.realtor.com/realestateandhomes-detail/25-Stetson-Heights-Road_Pembroke_MA_02359_1115674254

http://www.realtor.com/realestateandhomes-detail/250-Main-Street_Kingston_MA_02364_1110779513

Chee · Guest

I've been looking at the same thing for years too!
I have 2 kids, so I think that even $300K is not affordable.

Say, the mortgage payment is $1500. When you include property tax, insurance and maintenance, the total expense for housing is going to be at least $2000 without fixing the old crappy house.

Just to feed a family of 4, frugally, it costs about $4000/mo. without any savings.

That is going to cost about $72/year.
You will need $90K as in salary.

If you want to save for retirement and education, will need more.
I am not working now and my husband is not making $90k with a professional job.
I think about going back to full time job, but the cost of daycare is just ridiculous in Boston. It is like $1500/mo/kid.
When I add all the extra cost of commuting and lunch, I can't bring much money home.

I really don't know how other regular people around our age (mid 30's) are living.
We are temporally in Tokyo, Japan for 3 years, and saving 30% of our income. We have national health insurance and good subway system that the company pays for the pass, no car, free child care supports, etc. We are thinking of going back to Boston, but might have to go to somewhere else where we can buy a house less than $150K and comfortably live with one income.

balor123 · Joined: 08 Mar 2008 Posts: 1204

Chee · Guest

>Just to feed a family of 4, frugally, it costs about $4000/mo. without any savings.

I meant for the monthly cost of living like utility, transportation, food, health care, miscellaneous expenses, excluding housing and savings.

I just don't know anyone in their 30's who makes $150K.
Where are they?

Guest · Posted: Tue Mar 02, 2010 6:04 am GMT Post subject:

Where do families making median income (around $60k per year) live?

GenXer · Joined: 20 Feb 2009 Posts: 703

You don't need to buy a house to live in a good town in Boston area with kids. There are plenty of rentals, and prices are coming down for rentals all the time ($1500 for a 2b/2b in Newton with free heat and first month). It may be a bit tougher to live in a condo (there are some townhouses and apartments in houses that are available for rent), but you will not be renting forever. Instead, save money and wait until prices come down or until you can afford to buy something. It is more than possible to live on a sub-$100k salary in Boston, but it is true that you won't be buying anything soon. However, it is possible to live on $40k-$45k a year with a family of 4 without sacrificing much. Yes, you may not go on expensive vacations or have your kids in private school, but it is more than possible to do that, and save the rest for retirement and a potential downpayment. Give about $15k to taxes and you have $40k left a year. In 10 years, you can easily save $400k for downpayment/retirement.

Wonky · Guest