How Can Anyone Afford to Buy?

It would be interesting to see median prices and incomes...

The median household income is $53,000. The figure of $700,000 was the median sales price.

How can people afford to live in SoWal?

....2 jobs, credit cards, HELOCs, 401K loans, ramen--lots and lots of ramen (five different flavors).


.

....2 jobs, credit cards, HELOCs, 401K loans, ramen--lots and lots of ramen (five different flavors).


.

Sounds like you have to go into deep debt to afford this area!

I checked some demographic information about the beaches of South Walton area. The average household income is $70,000. The average price of a home is about $700,000. How can people afford to live in SoWal? The average household income level where I live is $214,000. The average price of a home is about $850,000.

Eat in a lot? Reuse the same towel to save on power and it doesn't wear out the towel as quick (this doesn't work for wash cloths I don't know why); Save some money by skipping regular dental care; Buy shoes without laces so there is nothing to replace; Fold the toilet paper over one more time at least and double the efficiency (I once knew someone who folded 6 times man what a savings!). More money saving tips later- as they come to me I'll pass them along to you. Oh and buy a Shammy-Wow. I saw their ad on t.v the other day, you'll never have to buy paper towels again the guy said--sign me up for 2!

....2 jobs, credit cards, HELOCs, 401K loans, ramen--lots and lots of ramen (five different flavors).


.

Shelly's ideas are good too but I think mine are more realistic and practical going forward. The ramen is GREAT tip. Try deep frying for something different.

Sounds like you have to go into deep debt to afford this area!

Not if you only buy what you can afford, right SHELLY?

Not if you only buy what you can afford, right SHELLY?

: Way to "think outside the box" TTT!!

.

There are a lot of families in the service industry who have been here since before the real estate boom who have a little singlewide in the woods on some of those dirt roads north of 98.

As for other areas, if you don't have to be right on the beach, Bluewater Bay really does have a strong Columbia, MD influence- variety of different types of housing, many recreation opportunities (which are for the most part a la carte, so you aren't paying for tennis courts you won't use) and designed to be walkable/bikeable. You can find some smaller SFHs for less than $250K, and some very nice larger options for less than $400k. In terms of covenants and HOAs, it's a mixed bag- some older neighborhoods have no HOAs, others have very strict covenants and HOA presences.

Demographic tends to be rocket scientists (Defense Department weapons folks), Air Force officers, and other professionals. Sometimes I feel kind of dumb because, unlike my neighbors, I only have one masters degree.

And no the beach is not walkable from north of 98 in Sandestin unless you're just going for a walk. If you're carrying all of your beach paraphenalia in July you'll never make it!

What?? Park at the old Elephant Walk/Finz and carry your beach stuff 200 yards to the beach. You can't do this?? We do it all the time.

Eat in a lot? Reuse the same towel to save on power and it doesn't wear out the towel as quick (this doesn't work for wash cloths I don't know why); Save some money by skipping regular dental care; Buy shoes without laces so there is nothing to replace; Fold the toilet paper over one more time at least and double the efficiency (I once knew someone who folded 6 times man what a savings!). More money saving tips later- as they come to me I'll pass them along to you. Oh and buy a Shammy-Wow. I saw their ad on t.v the other day, you'll never have to buy paper towels again the guy said--sign me up for 2!

Thanks for such a good laugh before turning in. See that's why I'm addicted!!

Originally Posted by SHELLY
....2 jobs, credit cards, HELOCs, 401K loans, ramen--lots and lots of ramen (five different flavors).

Sounds like you have to go into deep debt to afford this area!

Strange as it may sound, there are some people out there in the world that have a lot of money. There are also some that bought years ago.

There are even people who pay off their credit cards each month, don't borrow from their 401ks, and have never eaten ramen.

Originally Posted by SHELLY
....2 jobs, credit cards, HELOCs, 401K loans, ramen--lots and lots of ramen (five different flavors).




Strange as it may sound, there are some people out there in the world that have a lot of money. There are also some that bought years ago.

There are even people who pay off their credit cards each month, don't borrow from their 401ks, and have never eaten ramen.

Yes, there are people that have worked very hard, saved their money and bought for their own enjoyment. Perhaps that sounds too simple.

P.S. I don't know if it was around in the 70's, but ramen would have been on our dinner rotation! ;-)

I would venture to guess that someone reading this thread would also wonder how luvthebeach could afford to live in her own community!

Thanks for such a good laugh before turning in. See that's why I'm addicted!!

back Kimbug!

Originally Posted by SHELLY
....2 jobs, credit cards, HELOCs, 401K loans, ramen--lots and lots of ramen (five different flavors).




Strange as it may sound, there are some people out there in the world that have a lot of money. There are also some that bought years ago.

There are even people who pay off their credit cards each month, don't borrow from their 401ks, and have never eaten ramen.

We fall into the hard working, sensible, and thrifty category. My husband and I are in our early 50's. We have $600,000 in equity in our home with a few years left on our 15-year fixed rate mortgage (4.25%). We pay cash for our cars. We have no credit card or other debt. We have already saved up enough money to send our teenage daughter to a quality 4-year college. We have hundreds of thousands invested for our retirement years. Plus, my husband will receive a pension from his job. I clip coupons and buy items on sale. The one thing that I like to spend money on is our vacations. I wouldn't consider us to be rich, but we are financially comfortable. Yes, it would be possible for us to buy a $1 million home at the beach, but we would feel that it was beyond our means. It's all about comfort level.

Too many people in our country are deep in debt and have bought homes they never could afford. We are now seeing the repercussions of this on our global economy. But that's an entirely different issue.

The one thing that I like to spend money on is our vacations. I wouldn't consider us to be rich, but we are financially comfortable. Yes, it would be possible for us to buy a $1 million home at the beach, but we would feel that it was beyond our means. It's all about comfort level.

Too many people in our country are deep in debt and have bought homes they never could afford. We are now seeing the repercussions of this on our global economy. But that's an entirely different issue.

Well put. And being in the early-50s that $Million beach house/condo, including PITI, maintenance and other carrying costs can go a helluv a long way in paying for your vacations (here and other places around the world) for the rest of your lives.

.

.

Well put. And being in the early-50s that $Million beach house/condo, including PITI, maintenance and other carrying costs can go a helluv a long way in paying for your vacations (here and other places around the world) for the rest of your lives.

.

.

Surely you don't think the majority of gulf front homeowners have multiple mortgages and carry balances on their credit cards? These homes aren't owned or bought by middle America. I know the flippers really muddied the waters up but they are falling by the wayside day by day. I have agreed for a long time about the prices but they are creeping down to a more realistic level as of late. Look at the sold prices from 20 years ago and extrapolate them at 6 or 7 percent annually until now and many asking prices are just off base. With solds going out the door at 70 -80 percent of asking prices things are getting close to realistic.

Also, owning a beach house and going on a vacation are 2 completely different experiences.

I checked some demographic information about the beaches of South Walton area. The average household income is $70,000. The average price of a home is about $700,000. How can people afford to live in SoWal? The average household income level where I live is $214,000. The average price of a home is about $850,000.

I would guess the income of the average homeowner in Watersound is way north of 214k, and I doubt the investulators currently have an income to report.

Also, owning a beach house and going on a vacation are 2 completely different experiences.

Tell me about it! Our family had a beach house from since I was 3 years old. I spent my childhood and teenage summers there. It was great fun and I have wonderful memories, but it was a lot of work for my parents. When my father passed away in 1992, the following year we decided to sell it. My mother didn't want it and my husband didn't want the responsibility of the upkeep. However, I still miss having our own little place at the beach.

I hope you enjoy your beach vacation, luvthebeach. For future reference, it is not mandatory to post your financial history to visit sowal!

Surely you don't think the majority of gulf front homeowners have multiple mortgages and carry balances on their credit cards? These homes aren't owned or bought by middle America. I know the flippers really muddied the waters up but they are falling by the wayside day by day. I have agreed for a long time about the prices but they are creeping down to a more realistic level as of late. Look at the sold prices from 20 years ago and extrapolate them at 6 or 7 percent annually until now and many asking prices are just off base. With solds going out the door at 70 -80 percent of asking prices things are getting close to realistic.

Some yes and some no. I know many, many people who looked upon real estate (during the boom) as another place to "park their money." The ones who put it into coastal property figured it would go up further and faster than, say, a duplex in Dallas. Some bought empty lots to use like CDs; others bought homes and condos so they could use them while their investment increased. Truth be told, lots of the "high net worth" people who bought their properties as investments (which is more than are letting on) are not at all happy to have to be feeding the beast.

.

.

Tell me about it! Our family had a beach house from since I was 3 years old. I spent my childhood and teenage summers there. It was great fun and I have wonderful memories, but it was a lot of work for my parents. When my father passed away in 1992, the following year we decided to sell it. My mother didn't want it and my husband didn't want the responsibility of the upkeep. However, I still miss having our own little place at the beach.

It is by far much, much better to be the child of (or the friend of) the owner of a beach house .


.

Some yes and some no. I know many, many people who looked upon real estate (during the boom) as another place to "park their money." The ones who put it into coastal property figured it would go up further and faster than, say, a duplex in Dallas. Some bought empty lots to use like CDs; others bought homes and condos so they could use them while their investment increased. Truth be told, lots of the "high net worth" people who bought their properties as investments (which is more than are letting on) are not at all happy to have to be feeding the beast.

.

.

Once again I have to agree, but frequently it sounds like you think all purchases made in the area are made by people that overpaid and now are on the brink of foreclosure. There are groups that have made wise purchases and groups that have not. The unfortunate group that bought the ever appreciating asset during the boom to make a quick buck are not very happy at this time. The group that used their property as an ATM are also not in the best of spirits I would assume. A little due dilligence goes a long way.

Some yes and some no. I know many, many people who looked upon real estate (during the boom) as another place to "park their money." The ones who put it into coastal property figured it would go up further and faster than, say, a duplex in Dallas. Some bought empty lots to use like CDs; others bought homes and condos so they could use them while their investment increased. Truth be told, lots of the "high net worth" people who bought their properties as investments (which is more than are letting on) are not at all happy to have to be feeding the beast.

.

.

More blanket statements about groups of people while using nebulous words like 'lots', 'many', and 'some'. I'm sure there are 'lots', 'many', and 'some' who did the opposite and are as happy as they could be with their beach homes.

We fall into the hard working, sensible, and thrifty category. My husband and I are in our early 50's. We have $600,000 in equity in our home with a few years left on our 15-year fixed rate mortgage (4.25%). We pay cash for our cars. We have no credit card or other debt. We have already saved up enough money to send our teenage daughter to a quality 4-year college. We have hundreds of thousands invested for our retirement years. Plus, my husband will receive a pension from his job. I clip coupons and buy items on sale. The one thing that I like to spend money on is our vacations. I wouldn't consider us to be rich, but we are financially comfortable. Yes, it would be possible for us to buy a $1 million home at the beach, but we would feel that it was beyond our means. It's all about comfort level.

Too many people in our country are deep in debt and have bought homes they never could afford. We are now seeing the repercussions of this on our global economy. But that's an entirely different issue.

My point was more aimed at the other statement implying that the only way to own at the beach is:

"....2 jobs, credit cards, HELOCs, 401K loans, ramen--lots and lots of ramen (five different flavors)".

The properties & prices that started this thread are not typical homes - they are the upper tier in a vacation/resort area. The many vacation homes have definitely driven up the overall prices in the area, but the average resident doesn't live in a beachfront condo.

IMO there are 2 groups of second homeowners - people who bought a home or property because they loved the area and wanted to spend more time at the beach and people who bought/built to try and make $$$ fast or as an "investment."

The first group are very happy with their purchase, though not so much with the taxes and insurance issues. They bought something because it added to their enjoyment of life.

The second group is rueing their timing and has many behind the fiscal 8 ball. The only thing the purchase was meant to bring to their life was $ and that has certainly not been the way it turned out.

On GMA this a.m. (on sight in Miami) the foreclosure rate on condos was out of this world; one was quoted as saying; "This is a renters Paradise"....

Seems that a conversation recently with a SoWaler had similar sentaments...:scratch:

....2 jobs, credit cards, HELOCs, 401K loans, ramen--lots and lots of ramen (five different flavors).


.