6 ms·

5% is still $20k. When you're living payslip to payslip, even $5k is too much as a deposit is too much.

• ct0 5y ago
  But 5% is better than 20% down. Most have the capacity to save but choose not to.
  • t-writescode 5y ago
    5% down on a 400k place is 20k. Sure, I suppose someone earning a normal wage could scrounge together 20k in, let's say, 5-10 years, but then they would use *ALL* of their savings and have no emergency fund anymore, to use that 20k. Further, then you look at all the costs you get hit by when buying a house such as closing, etc, and that 20k turns out to be 28k, so they'll need to save for even more years. And now the house isn't 400k, it's 450 or 500, so instead of 20k, they instead need 25k, and with closing costs, now it's 35k because those went up proportionally, as well.
  • gizdan 5y ago
    At current minimum wage, saving 20k will take years and years. Most non-tech folks just do not earn enough to save. It's not that they don't want to, or choose not to. It's that they don't have disposible income. 5% is certainly better than 20%, but when you don't have the money, even 1% deposit is too much.