In 2000, I was making $20K more per year than I am now. I got an FHA 1st home loan, and got a nice li’l new construction 2-story in Charlotte Park for $111K.

In 2003, after being told I was “not a team player” because I didn’t want to enable my company to steal from another company, I resigned, and was freefalling. I was blacklisted in the local area. I was out of work for over three years.

I ended up having to do “jinglemail,” as I couldn’t sell it quick enough for the bank’s suiting. Still, it took four missed payments before they started moving on it.

I hate it, but now that I have a job with no security, and no benefits, I wouldn’t buy, even if I am paid relatively well. I’m renting a condo for $600/mo., and it’s not bad at all.
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KT, there are far worse things in this world than *not* owning a McMansion. Via your posts, you’ve always come across to me as a good and compassionate person. That’s address is much swankier to me than anything ending with 37027.

KT, there are far worse things in this world than *not* owning a McMansion.

That’s so true.

Y’know, I am a lot happier now than I was in 2000. I never was a huge materialist, ever, but I started enjoying that big-assed salary. I like it better when my stuff doesn’t own me, though. A simple life is preferable, IMO.
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Thanks Rob. I can tell you I’d much rather live where I am now - even when we do stress over all our bills - than to know that one missed paycheck could do us in. Man, once you get behind it’s really hard to catch back up. My brother and sister-in-law were up to their eyeballs in financial trouble, but took the Dave Ramsey class. Often they miss on going out to dinner, but they are just about debt free now. I really admire people who do live within their means.

Sounds to me like Jeffraham has the right idea, too. It’s just not worth it sometimes, although there are many times when home ownership is great - when the time is right.

And just think - in July, I’m mowing my steep lawn, sweating and puffing.

Apartment and condo people are lounging at the pool.

**what do these people do for a living to afford these homes? **

You’re assuming these people:

a) are not up to their eyeballs in debt;
b) did not inherit their money.

SoBeale - I guess I didn’t do a good job making my point in that I finally realized that most of these people ARE up to their eyeballs in debt. Inheriting didn’t even cross my mind, though.

Slarti - Yup. Good exercise though!

I just seems the older I get, the more I’d rather spend my money on experiences than on stuff. I’d rather have a $25 meal prepared by an expert chef than a couple of stupid DVDs I won’t watch more than once. I’d rather buy a $40 wrench that will last my entire life than a throw-away Chinese wrench for $5. I like my gay-ass scooter, ’cause it costs less than 25% what a car costs to keep (counting insurance, gas, maintenance), and it gets me to and from everywhere I need to go.
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This is a good post.

Best post this week at a minimum, for sure! Well done, KathyT!
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Of course none of them work their asses off to earn the money to buy a nice house. It’s all borrowed or inherited money. Envy much?

Jeffraham - I kinda dug the endorsement and economy posts.

Of course none of them work their asses off to earn the money to buy a nice house. It’s all borrowed or inherited money. Envy much?

I envy your anonymity. It’s so much easier to lob grenades when you hide your identity.

I bought a wreck, for cash. I’ve got one room at about 50 degrees, as I write this, the rest of the house is probably about 35 degrees. I got no kitchen, no teevee, no plumbing worth talking about and only rudimentary wiring. But, this is the first time in my entire life when nobody, and I mean nobody can tell me where I can keep my shit. For me, it’s not about having stuff (although I have accumulated a lot of it, none of which is worth much) but, rather, having some space that I don’t have to worry about someone deciding they can put to better use. With luck, in a year or so, I’ll have a nice little home, no money and no mortgage. Utilities and taxes should run about $400-500 a month.

I can only add this:

Ya gotta live somewhere (unless you’re Kevin). The key is to live within your means. My mortgage is far less than my rent was on my last apartment, but with ownership, you build equity. It can take time, but it’s generally better. Exceptions would be if you think you’ll be moving around a lot.

No McMansions; they’re stupid.

Kathy, I have wondered the exact same thing about people living in those huge houses. Particularly those big new ones off Murray in Brentwood. Where in the world did that money come from? How can I get a job like what they’re doing? Should I have gone to medical school? Ha!

And then I think, “Yeah, but I wouldn’t want to live in a house that big.” First, I wouldn’t want to clean it (yeah, they probably hire that out). But also, a whole ‘nother family could be living in that house and they’d never know. You could have squatters! I never want to live in a house so big that I’d be creeped out thinking there’s someone squatting on my property.

Apologies to Kathy T. for meandering semi-off topic, but this struck a chord with me:

jay on 6 February, 2008 at 9:43 pm #

Of course none of them work their asses off to earn the money to buy a nice house. It’s all borrowed or inherited money. Envy much?

I can’t speak for anyone else, but for me it’s not about envy as it is distaste for such flagrant and needless conspicuous consumption.

I used to drive by an enormous house every day on my way to work. And by “enormous” I mean 20,000+ square feet. That house was… startling. That’s the only way I can describe it.

At some point I saw a little vignette on television about the house, and it turns out it was/is owned by a very prominent neurosurgeon and his wife. Whatever children they’ve had long since left the nest.

Did that neurosurgeon work his ass off to afford that house? I have absolutely no doubt he did. Did he earn every penny? Most certainly. Is it his money to spend any way he damn well pleases? Hell yes it is. But I find it hard to believe that two people — no matter what their social appointments — require 20,000 square feet to live well.

It’s not my house, it’s not my money, and it’s not my business. But there is a point where the unwashed masses like me wonder where the line between personal preference and the supremely ridiculous is crossed.

Kristina:

Many years ago I worked for someone who had a nice, modest home in a decent neighborhood. In the last 35 years he has become a fairly well to do financial consultant and could certainly have afforded to buy/build a bigger house. He still lives in the same place. Two years ago, when he turned 60 he decided he wanted to do something “big”, so he sponsored a Habitat For Humanity project. He also worked at the project house a lot of weekends. That, to me is a worthwhile way to “spread the wealth”.

Well, a few things have gone by the wayside, lo these many years. Worries about the “appearance of impropriety,” is one. Living modestly (and within one’s means) is certainly another.
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I could never live in a McMansion - they usually are built with smaller rooms, but a lot of them. I prefer a few, ginormous rooms. Better for social gatherings and stuff.

But I live in a pretty “normal” sized house for four people and three dogs.

That being said - I fully understand people saying “it’s not for me”. I say it myself. But for some reason, people can’t stop. They add, “and it shouldn’t be for you, either”.

I remember having this same conversation here about SUVs.

[…] these harsh economic times, Kathy T. argues that, however entitled you think you are to the dream, it may be best to hold off on homeownership until […]

LMAO @ Lesley

I’m reminded of an old cartoon, I don’t remember which one, but a rich guy driving around in a limo had a flat tire; he opened the trunk and drove off in the spare *car*.

Maybe the McMansion mania could be traced back to the real estate agent’s mantra that “a home is your biggest investment”. It may be your largest, single financial committment, but do you live in any of your other investments? Of course not. An investment should be able to be liquidated at your will even if you take a loss. Your home doesn’t meet that criteria since market forces determine the liquidity of your “invesment”…plus, you still need a place to live.

News 2 Me - A home IS one of your biggest investments, alongside a college education for you and your kids & your retirement. Returns do fluctuate no matter if it’s real estate or the stock market or whatever. As I said before quoting The Donald, “Well, real estate is always good, as far as I’m concerned.” Also, it’s not a loss unless you sell for less than you bought (Peter Lynch). Whomp, there it is.

I wonder the same thing when I look around me and see these families where the mom stays home, dresses to the nines, huge house, nice cars? Coveting? No, not anymore. I know that the majority of these people are miserable at home and like SoBeale said, up to their eyeballs in debt, most likely.

I still get tired of living check to check though. Wondering when/if my ship is ever gonna come in. I shouldn’t, I guess.

Kathy T.

There are so many variables involved in buying and selling real estate that it’s just as difficult as the stock market. Also, when one is in the market and can’t come up with the cash on a margin call they lose what they’ve got–then some. The elephant in the room for those who are “house poor” with those huge and, often, ugle homes is that if they are having cash flow problems they start borrowing at 20–30% on the plastic. Wheh they are foreclosed they may declare bankruptcy but that credit card debt is (thank you, congress) innoculated against the bankruptcy. How long before debtor’s prison are the “new black”?

Sista Smiff:

When my ship came in, I was at the airport.

“A home IS one of your biggest investments…”

I’ll try one more time, KT. Hope I make it clearer.

An investment is an asset accumulation vehicle. A home is a place to live. Sell your home and you still need a place to live…unless you’re willing to share a box with Kevin.

And Lynch is correct about losses. However, his philosophy presupposes you can sell. Today’s market proves the point that sometimes there are no buyers regardless of how big a loss you are willing to take.

Sorry about the mis-tagging above.

News 2 Me - Using that perspective, you’re absolutely right. However, land is a limited commodity so the flip side of your argument is when a strong market does benefit the seller. Overall owning a home is a good investment with the added perk that you have a roof over your head.

But the whole point of the original post is not to argue whether this is an investment (though we do a prety good job of it), rather it is to urge people not to rush in to home ownership if they aren’t ready and certainly don’t rush in to something that will come back and bite you in the butt when you miss one McMansion McPayment.

And someday I’ll learn to splel, slepl, spell.

Google toolbar has a spell checker - not that I actually use it, mind you - but it’s there!

what do these people do for a living to afford these homes?

Many of them are busy building houses of cards, ma’am. Plastic cards.

A dear friend of mine runs a computer-repair business that makes house calls. I cannot count the times he has expressed shock and dismay at turning up at one of the McMansions (mostly in Brentwood, but now in Murfreesboro, gaaah) for a repair job only to find the resident’s computer sitting on a card table in a room otherwise empty but for a folding chair. The rest of the house would be similarly decorated: card table in the kitchen with folding chairs around it, maybe a ratty couch and chair in the den/family/great room in front of a TV bigger than my former Tercel, and a mattress on the floor of the bedroom.

A goodly number of those folks never paid their computer-repair bills, either, which is why he took to charging service calls upon arrival and deducting the charge from whatever repairs he did. Over the last few years, as he’s gotten repeat business and referrals, often the original client has moved into a much more reasonable (and reasonably furnished) home.

From driving up in their driveways, though, he says you’d never think they were any different from the neighbors. Their houses of cards were just more cunningly designed, I guess.