birdhunter17
FNG
- Joined
- Aug 1, 2023
- Messages
- 25
This is a huge problem for the younger generation just out of school. Both my 20 something kids live at home because there is no way to buy and no where to rent here.
In I way, I agree with you both. Watching my kids rent vs. buy is very eye opening. No, they don't have any equity built up in a house, but they also don't have any debt and routine payments to repair a house or taxes related to that house.@Yoder I disagree.......the enslavement, as you call it, only comes when you want a house as a showpiece for others to see that you cant truly afford. Having a modest house that can be paid off (and it can be) because you dont have 9 cell phone bills, 4 car payments for vehicles you dont need (another showpiece) and throwing money at frivolous things. There are other options for health care such as cost sharing that many take advantage of. Think outside the box and you dont have to be an 'ant'..........
I've thought for a while now that when the boomers all start dying off and going into retirement homes, all that wealth will have to go somewhere. They have more wealth tied up in their homes and properties probably than all the generations that follow them. It has to go somewhere. Pretty soon, they won't be able to take care of their homes/properties and that's when something's gotta give.Yup. I’ve been telling the wife all the toys will go on sale very soon.
In I way, I agree with you both. Watching my kids rent vs. buy is very eye opening. No, they don't have any equity built up in a house, but they also don't have any debt and routine payments to repair a house or taxes related to that house.
My wife and I have both worked for over 30 years, both have college degrees (two in the case of my wife) and have always had good, but not necessarily high paying jobs. In the small towns we live in, we would probably be solid in the middle of the middle income bracket.
That said, we have always bought reasonably sized homes (never over 2k square feet despite having 3 kids) in reasonably priced locations. And yet, 20 years after buying our first home, we still owe half of what it cost. We are not extravagant spenders. We don't buy expensive toys or go on expensive trips or decorate our home or property in expensive ways. So it does feel like we've been tricked after doing everything right and still not owning more than half our home after 20 years. Meanwhile our young professional kids are debt free. It's been eye opening for sure.
I'm not sure I'd give my kids the advice to go buy a home. I don't see the up side for them so long as they don't have kids. Financially I think they just might be better off renting and investing in their retirement.
This topic really makes me wonder what percentage of Western Europeans own their home vs. rent, and how that affects their cash flow and retirement age. Some days I put on the tinfoil hat and think we've all been sold a story about the "American dream" of owning a home and land by people who are laughing all the way to the bank.
Other investments exist, many of which don’t involve the constant maintenance and expenses.Its never guaranteed you will make money from any investment- a home is an investment.
I wonder what % of their assets those homes make up compared to in the US70% of EU folks own versus rent. In the US it’s slightly less.
I wonder what % of their assets those homes make up compared to in the US
It's all what you make of it. If all you need or want is a box, then ya.....a tent might suffice.A home is primarily a box to live in.
In I way, I agree with you both. Watching my kids rent vs. buy is very eye opening. No, they don't have any equity built up in a house, but they also don't have any debt and routine payments to repair a house or taxes related to that house.
My wife and I have both worked for over 30 years, both have college degrees (two in the case of my wife) and have always had good, but not necessarily high paying jobs. In the small towns we live in, we would probably be solid in the middle of the middle income bracket.
That said, we have always bought reasonably sized homes (never over 2k square feet despite having 3 kids) in reasonably priced locations. And yet, 20 years after buying our first home, we still owe half of what it cost. We are not extravagant spenders. We don't buy expensive toys or go on expensive trips or decorate our home or property in expensive ways. So it does feel like we've been tricked after doing everything right and still not owning more than half our home after 20 years. Meanwhile our young professional kids are debt free. It's been eye opening for sure.
I'm not sure I'd give my kids the advice to go buy a home. I don't see the up side for them so long as they don't have kids. Financially I think they just might be better off renting and investing in their retirement.
This topic really makes me wonder what percentage of Western Europeans own their home vs. rent, and how that affects their cash flow and retirement age. Some days I put on the tinfoil hat and think we've all been sold a story about the "American dream" of owning a home and land by people who are laughing all the way to the bank.
Yes! Location is king! Right now my parents house which was the same price as homes in a better location when built 20 years ago is nearly 500k less than if 6 miles west. 800 vs 1.3 is a pretty big deal.The biggest mistake I think people made over the last 2-3 years is completely ignoring location. Location is always the determining factor in appreciation for real estate. Location was absolutely lost when people got FOMO bad. There are houses in shit areas that people paid more than our house, which is in a really nice area. We waited till rates popped high, got ours for under asking and paid our rate down. Yes, it was unfortunate timing for when we were buying, but just saying "I need a house somewhere, anywhere in town!" would have made it worse if/when the bubble pops.
I meant 50% of my current home, 20 years later.What % of a 2003 purchase price that is still owed when you seemingly have bought other houses since, is a pretty worthless metric because the context could vary so much.
Buying isn't a one size fits all, there is risk and commitments that must be understood for sure.
I meant 50% of my current home, 20 years later.
I feel like you're missing my point.An even more worthless metric.