Is Starbucks Stealing Your Home Ownership Opportunity?
There's a story from New Zealand about how people on above average wages ($70K annually) cannot afford to buy a house, even in the face of tumbling prices. Yes, home ownership is in mortal peril there. Let's hop across the Big Pond to America. Is the same scenario at work here? We don't even have to do an official long-term study to tell you the answer to that question, “Yes!” The problem is not that random coffee cups attack you on the way home and complete a forced removal of cash from your pocket.
The problem, instead, could possibly be that those with the income to justify home ownership in this most consumer driven society on the face of planet like to buy stuff. We like coffee, video games, new cars, vacations, and the latest toy from Apple so much that the money we could be using for a home payment is tied up in the worst kind of high-interest, low-value debt. Hey, if you think the American Dream is dead and you know longer wish to pursue it, go right ahead. No crime in that. But don't walk around whining that you can't afford to buy a house on your above average income.
Controlling your miscellaneous expenses is not just an admonition for young, dumb kids any more. Old, savvy grownups in line for home ownership need it too, apparently. These days, a new car payment could very well approach the same dollar figure you'd pay for a mortgage loan on a house. How is that even possible? Are we living in Wonderland with Alice and the Mad Hatter?
If you find yourself thinking you can't afford a house, why not take a look at your miscellaneous spending first?
The Creating Wealth Team
Tags: home ownership