Affordable Housing within Southern Maryland

[wolfsong_2002]

With this great housing boom within Southern Maryland where is the relief going to come for those who cannot afford the $200,000+ for new homes. Especially when a middle class family's max income is probably less then $80,000.

 

[dems4me]

With this great housing boom within Southern Maryland where is the relief going to come for those who cannot afford the $200,000+ for new homes. Especially when a middle class family's max income is probably less then $80,000.

It's absolutely ridiculous... as a single older person and someone who has never had any interest in buying a house before... I feel as though I missed the boat... Try doing what I'm doing and just having faith that there's a place just for me somewhere --I just need to find it

 

[FastCarsSpeed]

Yeah its pretty steep these days.. I have a ton of equity in my home but I cannot see paying 400K for my next house.. It even harder trying to find a building lot to build on down here.. It seems like people have to be house poor to be able to afford homes in this area.. I like my vacations too much to have some huge ol mortgage.

 

[itsbob]

With this great housing boom within Southern Maryland where is the relief going to come for those who cannot afford the $200,000+ for new homes. Especially when a middle class family's max income is probably less then $80,000.

Hopefully NEVER, now that I've purchased a home.. but can empathize with you. I was getting frustrated, and ended up finally buying the same house that I've been renting for the last two years. But hopefully in a few years it will worth twice what I paid for it..

AND with todays interest rates, if you are making 80 K a year you can afford a 250 - 300 K house... MAX payment little over $1,700 it's doable.

 

[Oz]

Probably look towards more outlying areas. Ridge, the 7th District, and even down on Great Mills road will have more affordable housing options than Leonardtown and Wildewood. Also, older housing developments in Hollywood/Leonardtown/Lex Park will have affordable housing.

Until the buyers for $200K homes disappear, the market will remain as you described. Consumers control the market. The prices are not a function of business or government. Business only reacts and responds to meet the demands of consumers. Government should stay as far away from business as possible.

I would suggest that disciplined homebuyers earning $80K per year ($6k+ per month) should be able to afford a $200K home unless they have bad credit or a lot of debt, neither of which would be a fault of the real estate market.

 

[FastCarsSpeed]

How is 1700 a month a decent mortgage. My household income is really decent but I cannot see spending that much a month on a mortgage unless Im in the 200K a year range. I guess because I have children and the costs associated it just nuts to see a mortgage that high.. I have determined I would pay 1300-1400 a month max on my salary..

 

[itsbob]

How is 1700 a month a decent mortgage. My household income is really decent but I cannot see spending that much a month on a mortgage unless Im in the 200K a year range. I guess because I have children and the costs associated it just nuts to see a mortgage that high.. I have determined I would pay 1300-1400 a month max on my salary..

If you're making 200K a year, you can ALMOST get away with a 5K a month payment.

And would think 1400 is definetly a do-able mortgage around here.. in a nice home.

 

[itsbob]

But then you have to look at debt and credit..

and if I can do it with my debt AND my credit.. it's do-able for about anybody!

 

[AMP]

If you're making 200K a year, you can ALMOST get away with a 5K a month payment.

And would think 1400 is definetly a do-able mortgage around here.. in a nice home.

I am swinging $1260, making MUCH less than $100,000 (like try $30,000!!)

It CAN be done folks. If you are making $200,000, you can afford a $500,000 house. If you are making $80,000 you can afford a $200,000 house.

Strike now, though, interest rates are going up, and that is what will make the difference in this area. WHen I bought my house 11 years ago, the interest rate was 10.5%!!! I have done some cash out mortgatges and rolled in a new truck payment with the last few refinances, but I am now at 4.5% with just the $1260 a month.

With the proximity to the base down by you, Wolfsong, and the proximity to DC up here in Waldorf, houseing prices in this area will never be lower than they are now. Interest will, but not the housing prices.

 

[FastCarsSpeed]

See thats my problem.. Im a cash and carry person. I despise credit cards and except with my infatuation with cars I dont have a ton of debt. But I like to go out to dinner when I want and hop on a plane to FL or vegas if I feel like it. I like the live with in my means and by the mortgage companies rule I can afford a 400-500k house but there is no way in the world I can do that and still provide for my family without putting my self into debt or worrying about what happens if Im out of work and what not. Thats my big issue is that what happens if we have a serious downturn in the economy here in the metro area.. there are going to be alot of house sitting there on the foreclosure market.

 

[Oz]

How is 1700 a month a decent mortgage. My household income is really decent but I cannot see spending that much a month on a mortgage unless Im in the 200K a year range. I guess because I have children and the costs associated it just nuts to see a mortgage that high.. I have determined I would pay 1300-1400 a month max on my salary..

Roughly, 33% (sometimes more depending on your down payment) of your monthly gross would be an allowable mortgage payment. So if you're at $80K per year or $6666 per month, your mortgage payment calculation would be approx $2200 per month.

If you're living here, and paying $1300 per month on rent, you should be able to get the other $400 per month back in tax benefits.

Do you have a down payment, or bad credit, or lots of debt? All would factor in accordingly. Best case is to have a large down payment of 25% so you can avoid PMI... It's definitely tough. But if you work on it, you can probably find a $150-$200K home locally. Think older and cheaper, then fix it up yourself.

Contact a realtor who can connect you to the available inventory here. If you haven't done that, you don't really know what is available by reading the papers or looking on the web. You don't see what fits your buying profile but only lasts a short time on the market.

 

[dems4me]

Yeah its pretty steep these days.. I have a ton of equity in my home but I cannot see paying 400K for my next house.. It even harder trying to find a building lot to build on down here.. It seems like people have to be house poor to be able to afford homes in this area.. I like my vacations too much to have some huge ol mortgage.

I agree... I was watching a show that had the results from the Urban Institute or whatever and they said from 2001 the houses in the dc area have gone up 87%... sadly the salaries havn't... Then they said that 1 out of every 4 houses in the DC area is for 400K or more... I never dreamed that I'd need close to half a million just to buy a house or I would have gotten one much sooner... Imagine trying this single without a spouses income combined... it's just impossible.

 

[crabcake]

Imagine trying this single without a spouses income combined... it's just impossible.

says who? Single mom here

 

[Oz]

See thats my problem.. Im a cash and carry person. I despise credit cards and except with my infatuation with cars I dont have a ton of debt. But I like to go out to dinner when I want and hop on a plane to FL or vegas if I feel like it. I like the live with in my means and by the mortgage companies rule I can afford a 400-500k house but there is no way in the world I can do that and still provide for my family without putting my self into debt or worrying about what happens if Im out of work and what not. Thats my big issue is that what happens if we have a serious downturn in the economy here in the metro area.. there are going to be alot of house sitting there on the foreclosure market.

Until your priority becomes buying a house, and not going to Florida or Vegas, you probably shouldn't complain about prices.

Interest rates went up again today. If you can afford a $400K home, and you buy a $200K home, you are well within your means. Deciding between the two does not put you in the "affordable housing" bracket.

There's always the possibility of an economic downturn, because the economy flows in cycles. There will always be an up, followed by a down, followed by a recovery. It's a normal business cycle.

Sounds like rather than trying to find a reason to buy a home and then finding the right home, you're finding reasons NOT to, and then complaining about it...

 

[dems4me]

says who? Single mom here

but don't you get child support help.... and you can claim your house and child as dependents.. I get the eff taxed out of me. Are you currently looking for a home or are you one of those that saw this coming and quickly got a house a few years ago and only pay 500.00 a month mortgage or something. What me and the other guy was saying was 1700.00 a month is just ridiculous... I'm sure you are not paying 1700.00 a month rent... are you :shrug:

 

[dems4me]

See thats my problem.. Im a cash and carry person. I despise credit cards and except with my infatuation with cars I dont have a ton of debt. But I like to go out to dinner when I want and hop on a plane to FL or vegas if I feel like it. I like the live with in my means and by the mortgage companies rule I can afford a 400-500k house but there is no way in the world I can do that and still provide for my family without putting my self into debt or worrying about what happens if Im out of work and what not. Thats my big issue is that what happens if we have a serious downturn in the economy here in the metro area.. there are going to be alot of house sitting there on the foreclosure market.

I don't like credit cards either and don't use them at all. Were are you currently living :shrug:

 

[crabcake]

but don't you get child support help.... and you can claim your house and child as dependents.. I get the eff taxed out of me. Are you currently looking for a home or are you one of those that saw this coming and quickly got a house a few years ago and only pay 500.00 a month mortgage or something. What me and the other guy was saying was 1700.00 a month is just ridiculous... I'm sure you are not paying 1700.00 a month rent... are you :shrug:

I agree the prices are insane; no argument there. But as someone who's about to put her house on the market and move out of the DC Metro area, I'm not complaining, to be honest. :shrug: I bought my house for two reasons: 1) because I didn't want a landlord telling me what color to paint my walls or any other ; and 2) for investment purposes. I just got lucky with the timing and bought while it was still a buyers market 3 years ago.

 

[Pete]

I agree... I was watching a show that had the results from the Urban Institute or whatever and they said from 2001 the houses in the dc area have gone up 87%... sadly the salaries havn't... Then they said that 1 out of every 4 houses in the DC area is for 400K or more... I never dreamed that I'd need close to half a million just to buy a house or I would have gotten one much sooner... Imagine trying this single without a spouses income combined... it's just impossible.

Not for me it isn't.

 

[SmallTown]

Oh cry me a river.
Try coming up here sometimes. 2 bedroom condos built in the 80s going for 300K. Want a new condo? Some down street starting around 450k. Want a new townhome? Get your loan for about 600K. Want a new single family home? try 800k. Be happy with housing prices there, one of the bright points of somd!

 

[FastCarsSpeed]

LOL I have owned my home for 6 years now.. I paid 117K for it when it was a buyers market. I cannot complain at all really. My mortgage is like 900 a month which yes I pay with no problem what so ever. Hell when I got my house the seller paid all of closing and I got a Farmers Home loan cause mechanicsville is considered rural. I even got 500.00 for being a first time home buyer in St. Mary's county. My house will sell for 215 easily right now. We have been lookin for the past month for a house and I figure I can afford a 300-350k house with what I have to put down from my house. Sorry for the confusion here Im a second home buyer just looking in the county.. If I wanted to move more southern then Mechanicsville its not a problem to find a decent affordable house but mechanicsville and north or in calvert is outrageous for some of these homes now. And there is no way in hell I would ever go near waldorf ever again.