bostonbubble.com

[Guest]

I've been a big fan of renting for the last few years. I notice many of you are also. I've finally reached the point (a rent increase didn't help) where I wanted to get a place of my own. I wasn't so much interested in buying a house as an investment but more for a place to live where I could buy a decent washer, dryer, range, fridge and do what I want with the place. I figured prices have come down a good bit and with mortgage rates at all time lows it wouldn't be a bad to move ahead with this idea. I work in Burlington so I was mainly looking for something around the northern 95 belt area.

I was floored when I actually went out to see some homes in the 250K to 400K price ranges. These places were complete dumps for the most part that needed anywhere from 20K to 50K of work (new windows, furnaces, carpet appliances). I couldn't believe how high the prices still were in the area. I'm curious what experiences other people have had. I'm single with no kids and have decent income and savings. I can't imagine how people with kids are able to afford anything unless they move pretty far outside of Boston. There can only be so many high paid doctors and lawyers in the area.

[VacationGuy234]

I'm in the same situation. You are not dreaming. Like you, I often wonder were people are getting the money. The only answer I can come up with, given that salaries have not risen, is two family income and possibly inheritance. I make a decent living and if I had a wife who made as much as I did we could live decently above the 400k mark for a home. Other than that, the majority of people here must have made a lot of money in the market.

[Boston ITer]

I think the working population is currently stretched, while at the same time, the investment/speculation capital hasn't exactly gone away.

http://www.washingtonpost.com/business/2012/03/31/gIQAVOgDoS_story.html

[JCK]