How I Will Never Be Able to Buy a House And Live the American Dream

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:

                                   CONSERVATIVE  AGGRESSIVE 
Minimum house
price:                         $299,319.83           347,321.36   
Loan amount:       $199,319.83            247,321.36  
Monthly mortgage
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.


1 Comment

Filed under Daryl White, Dick Don't Need No Education, Gainfully Unemployed, Life in the Ghetto

One response to “How I Will Never Be Able to Buy a House And Live the American Dream

  1. bpmee

    Debt is a form of financial slavery. The cost of getting a college diploma has skyrocketed despite the fact that most students’ income and pre-college savings levels have remained constant or decreased. Tuition increases at private colleges are especially dramatic. “That College” 🙂 is rated as one of the most expensive schools in the country. Whether or not it is worth the expense is debatable and subjective.

    Here are a few radical thoughts to consider:

    1. Don’t buy it if you can’t afford it. Is Harvard really worth the $50,000+ tuition a year? Is it worth being bogged down by student loans for the next 15 years? No. Unless you plan on continuing in academics, going to medical school, or becoming a lawyer don’t waste your money or your time.

    2. Go to community college or join an online school. State universities have also kept up with private schools in terms of tuition increases. Some state schools have actually become overnight “Little Ivies” because they must be more selective due to receiving a higher number of applications. UCONN, for example, is dramatically more competitive than it was 10 years ago. If you’re looking to get an affordable education and the prestige of the university you attend is unimportant, community college is cost effective and offers flexible scheduling. Online schools are also equally more reasonable: some may joke about “Being a Phoenix”, but the real joke is on someone who seeks name-brand higher education and is laden with debt for years afterwards.

    3. Start your own business. You do NOT need a MBA to run a business. In fact, some of the most successful startups in recent years NEVER had an MBA first employee or CEO. Find something that interests you and figure out a way to monetize it. If you like what you’re doing and can create a viable income, spending money on a college education is not necessary. The internet abounds with opportunities and potential.

    In the end, it’s what you put in your pocket each week that counts. Moving forward, my guess is some private schools will start laying off faculty and staff and maybe even close their doors. Tuition fees north of $35,000 a year are simply not worth the trouble they bring after graduation.

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