Around this time at the end of the month when the rent check comes my mother always says if I knew what was best for me I’d would put a down payment on a house.
She always speaks about my aunt who has two children in their thirties, one is an electrical engineer the other a financial analyst and how each of them have a five bedroom house in the state of Texas. In places like Texas where land is plentiful houses are on the market for $200,000. All anyone needs is a ten percent down payment of $20,000 and a halfway decent job. However they live in the suburbs where it is a 40 minute drive to get to the city.
My mother is interested in purchasing a house in an Asian neighborhood which are filled with affluent overachievers. (Tribeca, Flushing, Sunset Park). Her other requirements include the following which obviously add to the cost: must be close to walking distance for everything because since she does not speak English she can’t take public transportation, nor can she drive. She would prefer not to have a condo or coop because there are stipulations to buy equity.
I used the following calculator and assumed the best case scenario. My gross income would be $53,500 (the last full federal job I had at GS-09 step 1). Downpayment amount is $100,000 (i dont’ know how I will save that much). Monthly debt. $0 (another assumption which is fake being that I went to Forbes most expensive undergraduate college) Mortgage rate is 4% fixed interest assuming perfect credit, annual property taxes of $3,500 and annual homeowner insurance of $481. The result is this:
price: $299,319.83 347,321.36
Loan amount: $199,319.83 247,321.36
payment: $951.58 1,180.75
insurance: $331.75 331.75
Total monthly payment: $1283.33 1512.50
And this brings me at the bottom end of a house in Flushing, Queens.
She always says well so and so has a house and they do not make a lot of money. I think she would be surprised to know that these people in many cases are either doctors, lawyers, accountants. She always compares me to Daryl White, a computer programmer who consistently makes at least six figures a year.
Understandably that is one of the major reasons a typical Occupy Wall Street protester is in his twenties to early thirties, bogged down by debt from private undergraduate schools, is unable to find work and will be unable to purchase a home in his lifetime.