MovieChat Forums > Property Brothers (2011) Discussion > 1 thing about this show that always bugs...

1 thing about this show that always bugs me is (dream house vs reno)

posted 11 years ago by davelanger
11 replies | jump to latest

I know 90% of the time the reno house the couple already has is theirs but to play along.

It always bugs me how the first how they show them the dream house is usually just 100k or so over their budge then they have to rough it and get some POS reno house for 100k under their budget

Why not just buy the first house that is already done, is that really that much more on your mortgage payments over 30 or 40 years?

[–] ChrisCuda 11 years ago

Because they usually show them houses several hundred thousand over their budget, not just $100K. And yes, if you do the math, each $100K added to a 30yr loan at today's rates adds about $500 per month to your payment. They've gone to get approved first, so when they say "they have a budget of $500K", that is either what they're comfortable with, or all their debt-to-income ratio would support. Most people can qualify for more than they can afford considering DTI ratio's only take into consideration what shows up on your credit report (& not all of your smaller debts like cable, cell phone, groceries, gas, utilities) which add up pretty quickly.

$500K @ 5% for 30yrs = $2684.11

$750K @ 5% for 30yrs = $4026.16

Not a comfortable jump in monthly payments for most people.

[–] Meldove 11 years ago

It also depends what a couple can get approved for. Usually, mortgage rates are pretty well set and if a couple could get a home approved for 100,000 more - they probably would go for it. But, it just doesn't work that way.

[–] HOKfilms 11 years ago

What bugs me is that they are shown a dream house 150k over their budget which they cant afford, then they end up buying a house 150k under their budget and are told with the extra 150k they can remodel their house to make it exactly like they want. Uh, why not just show them a house thats exactly what they want and at their budget. Is there only 800k and 400k houses on the market? Lol

[–] ReinaMissy 11 years ago

Uh.....

because these people are unwilling to compromise.

D'oh.

[–] FooserX 11 years ago

That's not what is happening.

Their budget is X
The first house is X + 150,000
They buy their cheaper house for X-150,000
After all is said and done, their house is worth X.

They are still short the $150k for the initial dream house.

[–] HOKfilms 11 years ago

Nope, u missed my point. And I never meant that theyre finished house now worth the same as the dream house they were shown.

My point is Im sure there is a house within their budget that has what they want without having to be built for them.

I <3 Emily Blunt

[–] FooserX 11 years ago

Right, got it.

Agreed!

[–] ashley2002 11 years ago

The reason why they don't do that (beside it being a TV show and there has to be a reno) is that the couple don't want to compromise on something. That may be the location or what the inside of the home looks like or both. These couples all seem to want to live in a certain neighborhood that is pricey and they can't afford the homes that are already reno'd and up to their standards...so their option is to get a home in their neighborhood of choice that needs work done to it to get their dream home in their perfect neighborhood.

I would do it to get my dream place in my neighborhood in Chicago that I love. Most places in my price range I see are not what I want and would be willing to reno it to get what I do want.

[–] HOKfilms 11 years ago

Let me stop you right at that its a tv show. Thats why they do it. Nothing more.

I <3 Emily Blunt

[–] savagesteve13 11 years ago

A 30 year mortgage means you are paying for that home TWICE.
So if a home costs $250,000 you end up paying $500,000.

Not good financial strategy. Its best to find a home you can truly afford and stick to a 15 year mortgage maximum.

[–] adouthit-1 11 years ago

I haven't watched all the episodes but most of the ones I have seen are $200,000 to even a million over their budget. They usually are only putting in around $100,000 (+ or -) to renovate. It would make more sense to buy a cheaper house and renovate to their taste. There are several things that bug me about this show but that isn't one of them.