Am I really supposed to just buy something without feeling like I can afford it?

I’m almost 30 and have always rented. I’m currently renting a place with two roommates (one is my partner) that costs us $1750 a month, plus utilities. Here in Colorado, we cannot find anything cheaper that isn’t an apartment or completely run down, period. Definitely won’t find anything as nice or as convenient for the same price. Our lease is up in a month and I’m desperately hoping we are able to continue to live here for around this price.

I just recently started making decent money. I’ve always made less than $30k a year but this year I’m on track to make more like 75-85k. That feels like a ton of money to me but isn’t even a good job in the grand scheme of things. With houses costing upwards of $400k in my area (again, minimum, unless I want to spend $300k on a piece of crap), that doesn’t feel like enough income.

Am I wrong for thinking about how things “used to be”? My parents made, as a household, maybe $120k a year growing up. They never moved us into a house that cost more than $250k (we moved a lot, 10+ homes). Is this just how things are now, meaning there’s no point trying to hold out until things get cheaper? Are they just not going to?

If I move to a cheaper state, like Iowa (girlfriend is from there, I’m from here, so it’s the next best option), I lose my good job. I go back to making 30k a year or less just so I can spend less than $200k on a first home.

I’m no economist or real estate investor, so I don’t know how all of this works. I just see a property that costs $400k or more and immediately think I can’t afford that. Is it normal for me to feel like I’ll never be able to buy, or am I missing something? Is $400k just not a lot of money anymore?

Everyone around me says that renting is a waste of money and buying is always better, but isn’t financing a $400k house with my income just as bad as financing a $60,000 truck I don’t need?

submitted by /u/Fancy_Strawberry7137
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I’m almost 30 and have always rented. I’m currently renting a place with two roommates (one is my partner) that costs us $1750 a month, plus utilities. Here in Colorado, we cannot find anything cheaper that isn’t an apartment or completely run down, period. Definitely won’t find anything as nice or as convenient for the same price. Our lease is up in a month and I’m desperately hoping we are able to continue to live here for around this price. I just recently started making decent money. I’ve always made less than $30k a year but this year I’m on track to make more like 75-85k. That feels like a ton of money to me but isn’t even a good job in the grand scheme of things. With houses costing upwards of $400k in my area (again, minimum, unless I want to spend $300k on a piece of crap), that doesn’t feel like enough income. Am I wrong for thinking about how things “used to be”? My parents made, as a household, maybe $120k a year growing up. They never moved us into a house that cost more than $250k (we moved a lot, 10+ homes). Is this just how things are now, meaning there’s no point trying to hold out until things get cheaper? Are they just not going to? If I move to a cheaper state, like Iowa (girlfriend is from there, I’m from here, so it’s the next best option), I lose my good job. I go back to making 30k a year or less just so I can spend less than $200k on a first home. I’m no economist or real estate investor, so I don’t know how all of this works. I just see a property that costs $400k or more and immediately think I can’t afford that. Is it normal for me to feel like I’ll never be able to buy, or am I missing something? Is $400k just not a lot of money anymore? Everyone around me says that renting is a waste of money and buying is always better, but isn’t financing a $400k house with my income just as bad as financing a $60,000 truck I don’t need? submitted by /u/Fancy_Strawberry7137 [link] [comments]

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