So, to be able to save for a down payment in a reasonable amount of time, even households earning $100K+ have to: brown bag to work, buy only Bonus Buys at the grocery store and settle for basic cable. But then you look around and find restaurants and bars are packed, malls are over flowing and huge SUVs and BMWs are everywhere. I am missing something?
Nope, that's correct. That's why I see a lot of folks in new homes that aren't furnished up the ying yang, with a beat up toyota camry/honda accord on parked inside the garage, and why I see a lot of folks that drive the BMWs and Mercedes turn into the rental apartments down the street. Also, a lot of the those huge SUVs and BMWS are financed/leased and/or bought by borrowing from a existing home equity.
Nothing wrong with renting and deciding that Bimmer is more important than saving for a home. It's about personal choices. Not everyone can afford everything. If a BMW/Mer is more important to someone, well that's their choice. Nothing wrong with it. But you can't possibly expect folks who spend lavishly to also to be able to afford a decent home? The issue is that a lot of those luxury items are really intended only for a select few folks who actually can sustain that lifestyle.
And those folks that finance their lavish lifestyle I wouldn't consider them to be prospective home buyers in any housing market moving forward. If they can't get into a home with the most relaxed financing in housing history, I can't imagine they would qualify when things tighten up.
I find it ironic actually. Some of the folks that drive the nicest cars are actually the poorest people.
Cable…Spending $100/month on cable is absurd. Besides TV being a mental drain, it’s also a pocket drain..Sorry, hope it’s worth it.
And if you bought anything at Vons,Albertson,Ralphs at full price at a regular basic, you’re pretty much throwing your money away. Everything at every grocery store goes on sale at different weeks, does it really make a difference whether you buy something 1 week versus another. Take that gimick buy one get one free egg at Vons. Why would anyone buy a carton of eggs from vons at full price, when Vons roughly alternates the buy 1 get one free deal like every other week?
Toilet paper. Why buy that bulk from costco. Yeah, it’s cheaper when you compare to FULL price at other stores. But if happen to be in Vons and spot a sale, why not just stock up on it rather than wait until you’re on your last roll and your ass desperately needs it the next day???
Do people really need to get that $4 Mocha Frapachino at starbucks? You load up on that 3-4 times a week, then you need to spend an extra $60+/month on gym membership to work that weight off.
