iris lilies
4-17-22, 10:30pm
42 years ago when I lived in Las Cruces, New Mexico there was a cul-de-sac street of houses that charmed me so much, I always thought wow when I’m rich I’m gonna live there.
Well I’ve seen my dream house here come on the market and sell. Listed at $155,000. Here it is:
https://www.realtor.com/realestateandhomes-detail/1008-Hess-Ter_Las-Cruces_NM_88005_M21338-27465?ex=2941360360
I just did a comparison of library salaries, prices, and mortgage rates back then and now. The library where I work advertised a job last year that had a range of $45,000-$64,000. Using that minimum salary, I see that this house is far more affordable now than it was for me back then.
Granted, it needs a ton of work but it’s utterly habitable, and frankly, it looks nearly identical to the condition of the place I rented 42 years ago. The house was built in the 1930s and it is very cute. I mean it is CUTE! It’s in a safe, old neighborhood. It’s on this wonderful, gracious cul-de-sac street where every other house is a little bit bigger and a little fancier, and they have a big median down the middle and handsome plantings at the end.
We talk here often about how expensive houses are now. By my calculations this house is more affordable for that new librarian getting a job today than it was for me 42 years ago.
This is of course because back then I would’ve had a mortgage of 11% at minimum. I remember that 11% number because two years later I got a mortgage at 11 1/2%. I remember that I also looked at a house in Las Cruces where they wanted me to assume the mortgage at 16%.
I doubt I can even find a mortgage calculator on the Internet that goes as high as 16%.
here is the math:
$45,000 minimum salary at Library currently
Cost of house:$155,000
$772 monthly payment @5.120%
772 x 12=$9,264 in annual mortgage payments
20% of annual salary goes to mortgage payments
$16,000 salary in 1979…My salary in 1979
Cost of house in 1979:$65,000
I think this house would have been priced around $65,000 back then (estimate based on a house I considered buying in Cruces of similar size and age but not posh street)
$645 monthly payment @ 11.5%
$645 x 12=$7740 mortgage payments
48% of annual salary goes to mortgage
Thank you for coming to my TED talk.
Well I’ve seen my dream house here come on the market and sell. Listed at $155,000. Here it is:
https://www.realtor.com/realestateandhomes-detail/1008-Hess-Ter_Las-Cruces_NM_88005_M21338-27465?ex=2941360360
I just did a comparison of library salaries, prices, and mortgage rates back then and now. The library where I work advertised a job last year that had a range of $45,000-$64,000. Using that minimum salary, I see that this house is far more affordable now than it was for me back then.
Granted, it needs a ton of work but it’s utterly habitable, and frankly, it looks nearly identical to the condition of the place I rented 42 years ago. The house was built in the 1930s and it is very cute. I mean it is CUTE! It’s in a safe, old neighborhood. It’s on this wonderful, gracious cul-de-sac street where every other house is a little bit bigger and a little fancier, and they have a big median down the middle and handsome plantings at the end.
We talk here often about how expensive houses are now. By my calculations this house is more affordable for that new librarian getting a job today than it was for me 42 years ago.
This is of course because back then I would’ve had a mortgage of 11% at minimum. I remember that 11% number because two years later I got a mortgage at 11 1/2%. I remember that I also looked at a house in Las Cruces where they wanted me to assume the mortgage at 16%.
I doubt I can even find a mortgage calculator on the Internet that goes as high as 16%.
here is the math:
$45,000 minimum salary at Library currently
Cost of house:$155,000
$772 monthly payment @5.120%
772 x 12=$9,264 in annual mortgage payments
20% of annual salary goes to mortgage payments
$16,000 salary in 1979…My salary in 1979
Cost of house in 1979:$65,000
I think this house would have been priced around $65,000 back then (estimate based on a house I considered buying in Cruces of similar size and age but not posh street)
$645 monthly payment @ 11.5%
$645 x 12=$7740 mortgage payments
48% of annual salary goes to mortgage
Thank you for coming to my TED talk.