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Originally Posted by wavelandscott
Not in my neighborhood...it is not particularly affordable in this area either
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East Coast / West Coast aside, on a percentage basis, the US offer far more opportunities for young couples to own a home.
Also, the simple fact that the IRS allows a direct deduction against income for the interest on the loan for the primary residence and the FHA downpayment of 3.5% (for credit scores over 580). The downside to FHA of course is having to purchase default insurance (though tax deductable), but even with this kids can at least get into starter homes, even new build ones. The transaction fees, including commisions are also deductable.
This is what I did in 1990 in Colorado. FHA, 3.5% down, fixed rate at 5-3/8% for 30 years. Sold the house 6 years later when the Californians came in due to CA being too expensive and moved to Texas where I could then afford a commercial loan (20% down)...
Here in Australia, the situation is very different. I live in a nice, but small home (compared to American standards). Variable rates are the dominant package here, so I purchased a home assuming a max rate of 12% so that I could afford the mortage no matter what happened. Also, the "Stamp Duty", which is a form of penalty for being able to afford a home, is complete nonsense as it stiffles both the new home buyer and investors.
I'm now retired, but still paying a mortage. Will sell the house within the year and move back to the USA, where I will start to build my home on some mountain acreage I have.
