How are people affording these crazy home prices?

Joined
Dec 30, 2014
Messages
9,677
Out of curiosity, for those that are older than me, when did buying a house start to get advertised as an investment? Has it always been that way or is that something newer?

I was born in 91 and I cant remember a time when someone said you buy a house to live in it. You buy a house to make money is all I have ever heard.

Born in '85. There are lots of different scenarios but I would say in general the jist has always been more "get some equity for your $ rather than giving it all away with rent" rather than buying a house for an investment.

That said, it was common for many friends and family around me starting at college age to consider the first home purchase being one that could become a rental property in the future.
 

CorbLand

WKR
Joined
Mar 16, 2016
Messages
7,793
I am just curious if this idea that a house is a financial investment and creates great returns concept is correlated with the size and cost increases.

I just know that for me and many I talk with my age, it has been taught to us that you buy a house as an investment and to live in and its in that order. So many go out and buy the biggest house they can afford because the return on them is generally higher. Granted, I do live in an area that most have more kids than the national average.
 

Reburn

Mayhem Contributor
Joined
Feb 10, 2019
Messages
3,425
Location
Central Texas
Born in '85. There are lots of different scenarios but I would say in general the jist has always been more "get some equity for your $ rather than giving it all away with rent" rather than buying a house for an investment.

That said, it was common for many friends and family around me starting at college age to consider the first home purchase being one that could become a rental property in the future.

Fixed it for you
That said, it was common for many friends and family around me starting at college age to consider the first home purchase being one that could become a property to fall back to after a divorce......


I'm an 81'.
Same mentality though.
 
Joined
Jul 30, 2015
Messages
6,312
Location
Lenexa, KS
From a Pew Research article:

“The wealth gap between upper-income and lower- and middle-income families has grown wider this century. Upper-income families were the only income tier able to build on their wealth from 2001 to 2016, adding 33% at the median. On the other hand, middle-income families saw their median net worth shrink by 20% and lower-income families experienced a loss of 45%. As of 2016, upper-income families had 7.4 times as much wealth as middle-income families and 75 times as much wealth as lower-income families. These ratios are up from 3.4 and 28 in 1983, respectively.”

You need to scroll down a bit to get past the section on income to the net worth discussion.


Helpful link, thank you.

I was mistaken, upper income tier has grown by 33% since 1971, while lower income tier has grown by 16%. Understanding social program spending has increased dramatically in this time frame I think it's an overall success.

ft_2022.04.20_middleclass_01.png
 

txjustin

Lil-Rokslider
Joined
Dec 22, 2019
Messages
252
A lot of people are going into this with reckless abandon. I'm just waiting on the crash like in 2008 so I can swoop up a new house for cheap.

Don’t hold your breath. Also, real estate is HIGHLY localized.


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