My house value is probably almost triple now than what I gave for it. But I refuse to sell because I can’t get what I have now for the money I’d make. So new values it would be a stretch

Congrats!

I’m building my 3rd one right now. I couldn’t afford any of them.

Yes I could.

I might rent mine out and buy another one when the market crashes or build a barndominium.

My house has almost tripled in value in the last 5yrs. Debt free almost. I live within my means and have everything I want.

I remember it well. It was another democratic president. My Dad had a construction company and he had just branched out from building custom homes to building some spec houses. They were in Center Point (A nice area at the time) he had several houses that he couldn't sell. I was still living at home at the time and we had to sell our house in Cahaba Heights and move into one of the houses, my brother who was married had to buy another one and Dad's company had to file for bankruptcy. That was a hard time for the family.

That's where I am, I wouldn't be able to afford what my house is now but kinda glad I built what I did 7 yr ago, i could sell and pay cash for a nice house thats smaller if I wanted but it sits on big chunk of land and that means more to me

Yes but it would be tough. I started making payments on the land in 2019. We locked in our mortgage in January of 2020, right before the Rona hit. Land prices here have more than doubled since then and housing prices have risen considerably. There’s a large EV manufacturer building closeish to us and once that gets up and running I’d estimate our property will then tip over into the “unaffordable” category. The influx of people coupled with inflation has driven property values through the roof here.

I wouldn't want to be a buyer of any kind of real estate in this market. My son is ready to purchase but he's holding off due to interest rates and high prices.

Right now building supplies are cheap but interest rates and labor are high. You’ll never have a market when materials, interest rates and labor are all cheap at the same time. Generally it’s low interest rates but materials are through the roof or high interest rates and materials are reasonably priced.

I’m fortunate that I’m not borrowing any money on my new build.

When someone says they couldn't afford to purchase their house in today's market.... I don't think some here can comprehend how much property values have gone up in some areas. About 1/2 of Birmingham has almost doubled and in a lot of areas close to triple in value in about 10 years. The housing market crashed in '08 and didn't recover until 2011-12. That's 10-12 years ago not 30 years.. Many houses that were $300-400 are now $800+.

We aren't talking about oh... it went from $100-200k. We are talking it went from $200k to $600k. It's been more like 30 years but my first home I bought for around $120k and today it is worth $300+ maybe pushing $400k.. Comprehend what a mortgage payment will run you a month on a $800k house @ 7% plus........ The younger guys that work for me can't afford to live in town and in the same neighborhoods that I COULD afford at their ages.

Wages have NOT kept up. All of our standard of living is going down the toilet pretty darn fast.

Yes. But godliness with contentment is great gain. We are called to make disciples and be good stewards. Spending like congress isnt being content and certainly not being a good steward. God will not bless mismanagement

OPTION 2

Speaking of material pricing...what is concrete going for these days?

This is very true. It worries me for my kids. My wife and I have been blessed and have a nice home on a decent tract of land. I can pay it off now, but I'm making more off of money market accounts than my morgage interest. I have a friend that just built a nice home (probably a little over 3200 sq. ft.) on a 5 acre lot and I think their total cost is over $750k. I would hate to know what that payment would be with today's interest rates. I would hate to be a young family looking for a 4 bedroom place on a few acres right now.

Nope - My house has doubled in value since I purchased in 2017. Supporting a stay-at-home wife and two kids with that mortgage would be impossible for me.

Does that $750 include the land? We own 5 acres free and clear and are looking at building a similar size home but nowhere near that number. We looked at a spec home a few weeks ago. The 1/8 acre lots were going for 32k. Smdh.

Yes, I bought my farm 30 years ago,15 years, 20% down, 8% interest. Payed off in 12 years. Worked 2 jobs most of the time, wife worked, raised 2 kids and put them through college.
Thanking the Lord everyday, working hard and a little good luck.
If I was 30 I’d do it again. You have to live within your means.

I don't know if that includes the cost of the lot or not. Pretty sure that total does include the driveway, sod, pool, landscaping, etc.. I think the lot was 60 or 70k.

Back when I built I was not going to finance anything past the doorknob. No way I could sleep at night knowing I was making payments on my grass and plants. They do have a concrete drive where I am fine with a gravel drive, and just a concrete parking area.

Great plan; if you know when and how you are going to die.

Cash would almost double at 3% a year in 23 years.