What’s in The Shaker today:

• 📈 Earning for Homeownership Spike

• ⚡️ Quick Leap to Landlord Status

• 💡 Converting vacant office buildings into apartments

• 💰 Brady's Mansion Nears Finish Line

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Earning for Homeownership Spike

In 2024, an American needs to earn $120,000 annually to afford a home, doubling the income requirement from just a few years ago, reflecting the dramatic shift in the housing market's affordability.

• The average cost of a house is around $400,000-$420,000, necessitating a salary of about $120,000 for qualification, a significant increase from the previous $60-$70K requirement.

• Rising rent prices, consuming 30-40% of income, are making it harder for people to save for a house, perpetuating the cycle of renting and delaying homeownership.

• The widening wage-to-housing gap is particularly burdensome for millennials and Gen Z, who are also grappling with high student loan and credit card debts.

Quick Leap to Landlord Status

Chris Tran, an Atlanta-based real estate investor, became a landlord within a year of buying his first home by putting down just 3.5% and utilizing house hacking.

• Tran started with a Federal Housing Administration (FHA) loan, requiring only a 3.5% down payment, and turned his first house into a rental property after a year.

• He used a Home Equity Line Of Credit (HELOC) to make a down payment on a second house, then moved into it, renting out his first home.

• 'House hacking' involves buying a home to rent out so that tenants pay the mortgage, allowing the owner to build equity and repeat the process with multiple properties.

Converting office buildings into apartments

Brady's Mansion Nears Finish Line

Tom Brady's luxurious waterfront mansion in Miami's exclusive 'Billionaire Bunker' is nearing completion, showcasing the lavish lifestyle of the NFL legend.

• The mansion, located in Indian Creek Island, features amenities like a state-of-the-art gym, waterfront pool and spa, outdoor kitchen, and lush gardens.

• Brady's property is situated just across the waterway from his ex-wife Gisele Bündchen's home, adding a twist to the neighborhood dynamics.

• Indian Creek Island, known for attracting billionaires like Jeff Bezos and Ivanka Trump, is a hotspot for private waterfront properties.

How was today's shake?

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