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Arksansas - Where it's a crime to not pay rent.
#31
(01-15-2019, 04:47 PM)videogamesrock Wrote: Yes, $75 a week is very doable for someone who makes $1333 a month.  

$1333
-133 FICA
-37 State tax
-300 savings
--------------------
$863 disposable income --- this is very doable

It boils down eliminating instant gratification for a short period of time for long-term benefits.  

Now suppose this person gets married and both make $16,000 a year, one person's salary can go toward the house payment and it is free and clear in 4.5 years.  Can we do the same in California?  No.

Now the $16,000 a year is an example that your dollar can go much further in AR than in coastal cities.  The average salary in Little Rock is much higher than 16k, but you can see how low your salary can go and you can still own a home (the example of a home was one from Little Rock).  You will never be able to afford a home in coastal cities at that salary, therefore your upward mobility is much better in AR than in coastal cities despite what your articles say.  Teenagers can afford to buy a home in AR.

And, what's going to happen to that disposable income? You have to pay for rent, utilities, food and transportation. And, you better live in a city with decent public transportation; otherwise, you would need a car or to find someone to drive you everywhere. If you have to live with your parents, then you're poor.

Who is making $16k in California? People working part-time? Wages are higher in California. House prices are also higher in California, but they aren't as high as you make them seem.
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#32
(01-15-2019, 04:54 PM)sanantone Wrote:
(01-15-2019, 04:47 PM)videogamesrock Wrote: Yes, $75 a week is very doable for someone who makes $1333 a month.  

$1333
-133 FICA
-37 State tax
-300 savings
--------------------
$863 disposable income --- this is very doable

It boils down eliminating instant gratification for a short period of time for long-term benefits.  

Now suppose this person gets married and both make $16,000 a year, one person's salary can go toward the house payment and it is free and clear in 4.5 years.  Can we do the same in California?  No.

Now the $16,000 a year is an example that your dollar can go much further in AR than in coastal cities.  The average salary in Little Rock is much higher than 16k, but you can see how low your salary can go and you can still own a home (the example of a home was one from Little Rock).  You will never be able to afford a home in coastal cities at that salary, therefore your upward mobility is much better in AR than in coastal cities despite what your articles say.  Teenagers can afford to buy a home in AR.

And, what's going to happen to that disposable income? You have to pay for rent, utilities, food and transportation. And, you better live in a city with decent public transportation; otherwise, you would need a car or find someone to drive you everywhere. If you have to live with your parents, then you're poor.

Who is making $16k in California? People working part-time? Wages are higher in California. House prices are also higher in California, but they aren't as high as you make them seem.

You have roommates to absorb the cost.  This is very doable.
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#33
is someone making $16000 a year getting their employer to pay for their health plan ?

or are they paying for their own ?

or are they just deciding to pay the tax penalty ?
Reply
#34
(01-15-2019, 04:56 PM)videogamesrock Wrote:
(01-15-2019, 04:54 PM)sanantone Wrote:
(01-15-2019, 04:47 PM)videogamesrock Wrote: Yes, $75 a week is very doable for someone who makes $1333 a month.  

$1333
-133 FICA
-37 State tax
-300 savings
--------------------
$863 disposable income --- this is very doable

It boils down eliminating instant gratification for a short period of time for long-term benefits.  

Now suppose this person gets married and both make $16,000 a year, one person's salary can go toward the house payment and it is free and clear in 4.5 years.  Can we do the same in California?  No.

Now the $16,000 a year is an example that your dollar can go much further in AR than in coastal cities.  The average salary in Little Rock is much higher than 16k, but you can see how low your salary can go and you can still own a home (the example of a home was one from Little Rock).  You will never be able to afford a home in coastal cities at that salary, therefore your upward mobility is much better in AR than in coastal cities despite what your articles say.  Teenagers can afford to buy a home in AR.

And, what's going to happen to that disposable income? You have to pay for rent, utilities, food and transportation. And, you better live in a city with decent public transportation; otherwise, you would need a car or find someone to drive you everywhere. If you have to live with your parents, then you're poor.

Who is making $16k in California? People working part-time? Wages are higher in California. House prices are also higher in California, but they aren't as high as you make them seem.

You have roommates to absorb the cost.  This is very doable.

Or, you can move to another state and be able to afford a house without having to live with roommates for several years.

There are many blue and purple states with similar and higher homeownership rates than Arkansas. 

https://www.businessinsider.com/homeowne...map-2017-7
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#35
(01-15-2019, 04:57 PM)bluebooger Wrote: is someone making $16000 a year getting their employer to pay for their health plan ?

or are they paying for their own ?

or are they just deciding to pay the tax penalty ?

Medicaid

There is no more tax penalty

or they work at Walmart and pay $50 a month, but I'm sure they are just going for the free Medicaid.

(01-15-2019, 05:00 PM)sanantone Wrote:
(01-15-2019, 04:56 PM)videogamesrock Wrote:
(01-15-2019, 04:54 PM)sanantone Wrote:
(01-15-2019, 04:47 PM)videogamesrock Wrote: Yes, $75 a week is very doable for someone who makes $1333 a month.  

$1333
-133 FICA
-37 State tax
-300 savings
--------------------
$863 disposable income --- this is very doable

It boils down eliminating instant gratification for a short period of time for long-term benefits.  

Now suppose this person gets married and both make $16,000 a year, one person's salary can go toward the house payment and it is free and clear in 4.5 years.  Can we do the same in California?  No.

Now the $16,000 a year is an example that your dollar can go much further in AR than in coastal cities.  The average salary in Little Rock is much higher than 16k, but you can see how low your salary can go and you can still own a home (the example of a home was one from Little Rock).  You will never be able to afford a home in coastal cities at that salary, therefore your upward mobility is much better in AR than in coastal cities despite what your articles say.  Teenagers can afford to buy a home in AR.

And, what's going to happen to that disposable income? You have to pay for rent, utilities, food and transportation. And, you better live in a city with decent public transportation; otherwise, you would need a car or find someone to drive you everywhere. If you have to live with your parents, then you're poor.

Who is making $16k in California? People working part-time? Wages are higher in California. House prices are also higher in California, but they aren't as high as you make them seem.

You have roommates to absorb the cost.  This is very doable.

Or, you can move to another state and be able to afford a house without having to live with roommates for several years.

There are many blue and purple states with similar and higher homeownership rates than Arkansas. 

https://www.businessinsider.com/homeowne...map-2017-7

The roommate thing is only for a couple of years.  People do it all the time, heck I even had roommates when I was younger.  But now you can see how little you can earn and still own a home in AR.  The safety net is much better there as you can still own a home despite being in "poverty". 

Remember "want" is not a need, and falls into the category of instant gratification.  

Also, a little bit of real data, my rentals in Indianapolis, Birmingham, Memphis,  are worth about $90,000 each.  My average tenants make over $5,000 a month (usually 2).  Why do they rent? I'm not sure, but their income to housing cost is more effective there too.
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#36
(01-15-2019, 05:02 PM)videogamesrock Wrote:
(01-15-2019, 04:57 PM)bluebooger Wrote: is someone making $16000 a year getting their employer to pay for their health plan ?

or are they paying for their own ?

or are they just deciding to pay the tax penalty ?

Medicaid

There is no more tax penalty

or they work at Walmart and pay $50 a month, but I'm sure they are just going for the free Medicaid.

In other words, their poverty is being subsidized by other people. At least Arkansas is not as dependent as many other states are on other states' tax dollars, but most of the 10 most federally-dependent states are in the South and Appalachia. 


https://www.businessinsider.com/homeowne...map-2017-7

(01-15-2019, 05:02 PM)videogamesrock Wrote:
(01-15-2019, 04:57 PM)bluebooger Wrote: is someone making $16000 a year getting their employer to pay for their health plan ?

or are they paying for their own ?

or are they just deciding to pay the tax penalty ?

Medicaid

There is no more tax penalty

or they work at Walmart and pay $50 a month, but I'm sure they are just going for the free Medicaid.

(01-15-2019, 05:00 PM)sanantone Wrote:
(01-15-2019, 04:56 PM)videogamesrock Wrote:
(01-15-2019, 04:54 PM)sanantone Wrote:
(01-15-2019, 04:47 PM)videogamesrock Wrote: Yes, $75 a week is very doable for someone who makes $1333 a month.  

$1333
-133 FICA
-37 State tax
-300 savings
--------------------
$863 disposable income --- this is very doable

It boils down eliminating instant gratification for a short period of time for long-term benefits.  

Now suppose this person gets married and both make $16,000 a year, one person's salary can go toward the house payment and it is free and clear in 4.5 years.  Can we do the same in California?  No.

Now the $16,000 a year is an example that your dollar can go much further in AR than in coastal cities.  The average salary in Little Rock is much higher than 16k, but you can see how low your salary can go and you can still own a home (the example of a home was one from Little Rock).  You will never be able to afford a home in coastal cities at that salary, therefore your upward mobility is much better in AR than in coastal cities despite what your articles say.  Teenagers can afford to buy a home in AR.

And, what's going to happen to that disposable income? You have to pay for rent, utilities, food and transportation. And, you better live in a city with decent public transportation; otherwise, you would need a car or find someone to drive you everywhere. If you have to live with your parents, then you're poor.

Who is making $16k in California? People working part-time? Wages are higher in California. House prices are also higher in California, but they aren't as high as you make them seem.

You have roommates to absorb the cost.  This is very doable.

Or, you can move to another state and be able to afford a house without having to live with roommates for several years.

There are many blue and purple states with similar and higher homeownership rates than Arkansas. 

https://www.businessinsider.com/homeowne...map-2017-7

The roommate thing is only for a couple of years.  People do it all the time, heck I even had roommates when I was younger.  But now you can see how little you can earn and still own a home in AR.  The safety net is much better there as you can still own a home despite being in "poverty". 

Remember "want" is not a need, and falls into the category of instant gratification.  

Also, a little bit of real data, my rentals in Indianapolis, Birmingham, Memphis,  are worth about $90,000 each.  My average tenants make over $5,000 a month (usually 2).  Why do they rent? I'm not sure, but their income to housing cost is more effective there too.

You said 4.5 years, and that's several years, not a couple.

I don't see what you're seeing. Most people in Arkansas, as poor as it is, are not making $16k.
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#37
(01-15-2019, 05:10 PM)sanantone Wrote:
(01-15-2019, 05:02 PM)videogamesrock Wrote:
(01-15-2019, 04:57 PM)bluebooger Wrote: is someone making $16000 a year getting their employer to pay for their health plan ?

or are they paying for their own ?

or are they just deciding to pay the tax penalty ?

Medicaid

There is no more tax penalty

or they work at Walmart and pay $50 a month, but I'm sure they are just going for the free Medicaid.

In other words, their poverty is being subsidized by other people. At least Arkansas is not as dependent as many other states are on other states' tax dollars, but most of the 10 most federally-dependent states are in the South and Appalachia. 


https://www.businessinsider.com/homeowne...map-2017-7

Well, I will close my lesson today with this summary:

You can own a home in AR while living in poverty.
You only need to make $16k a year.
As you move up the ladder you will have this home paid off in a short period of time.
If you start saving as a teenager you should have a down payment for your home by the age of 20.  We can't do that in CA.

Something to think about:

If you remain prudent you should be able to own 10 plus homes in AR by the time you are in your late thirties with a solid 10k a month income.  
If you're going to invest in real estate, the South East is where it is at.
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#38
(01-15-2019, 05:18 PM)videogamesrock Wrote:
(01-15-2019, 05:10 PM)sanantone Wrote:
(01-15-2019, 05:02 PM)videogamesrock Wrote:
(01-15-2019, 04:57 PM)bluebooger Wrote: is someone making $16000 a year getting their employer to pay for their health plan ?

or are they paying for their own ?

or are they just deciding to pay the tax penalty ?

Medicaid

There is no more tax penalty

or they work at Walmart and pay $50 a month, but I'm sure they are just going for the free Medicaid.

In other words, their poverty is being subsidized by other people. At least Arkansas is not as dependent as many other states are on other states' tax dollars, but most of the 10 most federally-dependent states are in the South and Appalachia. 


https://www.businessinsider.com/homeowne...map-2017-7

Well, I will close my lesson today with this summary:

You can own a home in AR while living in poverty.
You only need to make $16k a year.
As you move up the ladder you will have this home paid off in a short period of time.
If you start saving as a teenager you should have a down payment for your home by the age of 20.  We can't do that in CA.

Something to think about:

If you remain prudent you should be able to own 10 plus homes in AR by the time you are in your late thirties with a solid 10k a month income.  
If you're going to invest in real estate, the South East is where it is at.

You presented an unrealistic scenario that's not supported with stats. If you can find stats that show that most people in poverty in Arkansas own $90k homes, then you will prove your point. I will bet that most homeowners in AR make significantly more than $16k. 

You should also know that California is not the only blue state in the Union. It is also impossible for a full-time worker in CA to make $16k unless he or she is illegally being paid less than minimum wage.
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#39
No, I won't be able to show you that most people in poverty own 90k homes. What I did do is use 2nd-grade mathematics to show you that it is very possible for people who make $16k a year to own a 90k home. Whether they choose to do so or not is their freedom to choose.
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#40
(01-15-2019, 05:28 PM)videogamesrock Wrote: No, I won't be able to show you that most people in poverty own 90k homes.  What I did do is use 2nd-grade mathematics to show you that it is very possible for people who make $16k a year to own a 90k home.  Whether they choose to do so or not is their freedom to choose.

1. You didn't include all living costs.

2. You suggested government assistance. 

3. A lot of people can save for a house just about anywhere if they lived with other people for years and received government assistance.

I'm assuming this person is also supposed to save for retirement and have an emergency fund? I guess they can get free clothes from a church or charity. After buying a house, this person wouldn't have extra money for decades. That sounds like a low quality of life to me. I'd rather rent.
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