How do people afford houses?

Okay, I'm 16 so I'm not very educated as far as finances go. I was wondering, how does one afford a house? If I made around 35k a year, I wouldn't be able to buy a nice house. How do people do it? Any tips or links are appreciated

Update:

I don't think you understood my question. I don't work yet, but I'm saying if I made around 35K, there are no houses that cheap so how do people come up with the money? Someone answered my question with "mortgages", thanks! I've heard of those, but didn't even know what they were.

I'm just trying to educate myself further for when I have to deal with this stuff.

7 Answers

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  • Erin R
    Lv 4
    1 decade ago
    Best Answer

    I live in Canada so I cant tell you any prices or amounts.

    I am 21 and rent a home with my boyfriend and our son so I too have been learning as much as I can about buying a home.

    You should start working as soon as you can so you can start saving money even if its only a little at a time your putting away.

    You have to go to a bank to see if you can be approved for a loan.

    They will do a credit check on you to see if you've always paid your bills, etc. and if your good for your word on paying it back over time.

    They will also want you to of had a steady long term job for a certain amount of time and making a certain amount of money a month.

    If your approved you will get that loan. I think you also have to have some money saved away to put down as well. With that loan and the money you have already you have to be able to find a house in your price range. Then once you buy the house its yours but you still then have to work to pay off the money the bank loaned you.

    A good place to look sometimes for an affordable house is through foreclosures (houses that people have lost because of not paying their loan off as they were supposed to, and the bank seizes back the home and will then sell for a much much cheaper price.) or you would have to look for a house that needs alot of fixing up.

    Unless your rich you wont be able to make enough money in one year or even in five to purchase a home. People sometimes work for 25 years or more still paying off the house completely.

    You have to have a good chunk of money saved away and have a real good job in order to be able to buy a nice home. Just look for the fixer uppers that you can see good potential in to be fixed up nice over time.

    Hope that helps.

  • Tedi
    Lv 5
    1 decade ago

    It depends on where you live. In some places like CA the houses are so expensive it's only with 2 incomes most people can buy anything. In other places you could buy a home on less than $15,000 a yr. In WA you can buy a house (2 br, 1 bath, 100 yrs old) for about $90,000.

  • 1 decade ago

    Hello, and your not 16 if you make 35k a year but i do believe you make 35k a year and you have bad credit????? well ill help you either way.1st if you are sixteen you need to establish credit and get a loan, ask a mortgage broker with your parents because they cant talk to you without parental consent. 2nd if your older with bad credit it depends, how bad is your credit and unless its extremely horrible there is a way to get a good loan... search for mortgage brokers not banks you help bad credit buyers, they will help you or restore you credit to get a loan.// GOod luck

  • do not listen to Landlord the average income is nowhere near $100k and she is out of touch with reality.

    Fact is buying a house on $35k a year is going to be very difficult even paying rent on $35k will be tight if you live in an area that requires you to have a car. I would suggest start putting money into an rrsp that you can eventually pull out tax free as a first time home buyer the more money you save up the more you save in interest in the long run.

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  • Anonymous
    1 decade ago

    Most people purchase homes using mortgages, loans from their banks.

    http://www.google.com/search?hl=en&q=financing+hom...

  • Anonymous
    1 decade ago

    Well..im only 13 so im not quite sure..buht now i think in australia (not sure if its any where else) You get 21Thousand for being a first home buyer..yehh soo im not sure if its in other countrys though :)

    Source(s): newspapers, news
  • 1 decade ago

    You need to change your thinking. No one makes 35k if they have a real job. You will make closer to 100k with a decent job.

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