'We Refuse To Be House Poor!': Couple With $250K Income Struggle To Buy Budget Home, Is 30% Rule Realistic?

Laura and Samuel Graves, a couple living in Portland, Oregon, are grappling with the harsh realities of the housing market despite their substantial combined annual income of $250,000. For three years, they've been searching for a home within the Portland suburbs, aiming to keep their monthly mortgage payments between $3,000 and $3,500, or about 30% of their $11,000 monthly take-home pay. However, due to rising home prices and soaring mortgage rates, they've been unable to find a property that fits their budget, forcing them to remain in a $2,700-a-month apartment rather than risk becoming "house poor."

Their struggle reflects a broader issue facing many high-income earners across the U.S., where the dream of homeownership is becoming increasingly elusive. The Graves have had to sacrifice their retirement savings to build a down payment, illustrating the financial strain even for those with six-figure incomes. While there is hope that future Federal Reserve interest rate cuts could lower mortgage rates, this could also lead to increased demand and even higher home prices, leaving potential buyers like Laura and Samuel in a difficult position.

The couple’s experience underscores the need for a more individualized approach to determining housing affordability, rather than relying on the outdated 30% rule, which suggests that no more than 30% of gross income should be spent on housing. With modern financial obligations and skyrocketing living costs, the 30% rule may no longer be realistic for many households. Instead, financial experts recommend considering a household's entire financial situation, including debt, savings, and personal goals, to determine what is truly affordable. (Full story)

Tesla is set to open a 1950s-style diner and drive-in movie theater in Los Angeles, aligning with Elon Musk's nostalgic vision for the brand. The company recently posted a job opening on LinkedIn for a Diner Experience Specialist to manage various aspects of the diner, including movie programming and menu development. The diner, located at 7001 Santa Monica Boulevard, is expected to feature a 24/7 operation with 30 Tesla Supercharger stations. Despite significant construction progress, the opening date remains uncertain. Meanwhile, in India, Tesla faces growing frustration from customers who have waited years for their Model 3 deliveries, leading to demands for refunds and raising concerns about the company's future in the Indian market. (Full story)

Vivian Jenna Wilson, Elon Musk's transgender daughter, has publicly condemned Walter Isaacson's biography of her father, calling it "genuinely defamatory" and accusing the author of portraying her as a villain to justify Musk's actions. Wilson expressed her outrage in a series of social media posts, criticizing the book for falsely depicting her and Musk as adversaries and for exploiting her story to promote a narrative that she believes may harm other transgender individuals. She also accused Musk of being a distant and emotionally unavailable father, who has publicly misrepresented their relationship and made anti-trans remarks targeting her. Despite Musk's claims of attempting to reconnect, Wilson remains estranged, having legally changed her name in 2022 to sever ties with him. (Full story)

Avon Products Inc., once a powerhouse in the beauty industry valued at $21 billion, has filed for Chapter 11 bankruptcy amidst nearly 200 lawsuits alleging that its talcum powder products, widely used in cosmetics, contained asbestos and caused cancer. This bankruptcy filing is seen as a strategic move to manage the company's debts and address the mounting legal challenges. Despite defending its talc as rigorously tested and asbestos-free, Avon has faced significant financial pressure, with high-profile cases resulting in multimillion-dollar verdicts against it. The company's decline has been further compounded by the sale of its North American operations in 2016, now operating separately as the Avon Company under LG H&H. Avon's troubles reflect broader industry concerns over talc's safety, mirroring similar legal battles faced by major corporations like Johnson & Johnson. (Full story)

Spanish authorities have begun confiscating beach loungers and umbrellas from tourists who reserve prime spots but leave them unattended, a move aimed at curbing selfish behavior that hogs public space. Local governments in popular tourist destinations, such as the mainland, Balearic Islands, and Canary Islands, have implemented fines of up to £210 for those who abandon their beach gear. This action is part of broader efforts, similar to those in Greece, to address beach overcrowding. The crackdown has sparked controversy, with locals protesting against overtourism and demanding the return of public spaces. Demonstrations on Majorca's beaches and rising tensions in Barcelona over housing costs highlight the growing conflict between tourism and residents' quality of life. New regulations now prohibit placing beach furniture before 9 AM to facilitate cleaning, with items left unattended for more than three hours subject to removal by local police. As the summer season peaks, the struggle for control of Spain's beaches intensifies, reflecting the ongoing battle between economic interests and the well-being of local communities. (Full story)