Are Millennials making a mistake ?? (negotiating, attorney, townhouse, vents)
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Speaking as a boomer and a home owner, I think your plan is just fine. One debt at a time. Far too many people sell themselves into debt slavery and end up spending a large percentage of their incomes on interest payments. I'm firmly in favor of being debt free. If you really want flexibility in life, avoid having to make payments, on anything.
You don't have to start in kindergarten to be a homeowner. I didn't buy my first home until I was 30, and then lost everything in the 1980 recession and a divorce. Start over, and I bought my second home when I was 40. It was an unlivable dump, but all I could afford. It had potential, and 8 years later, with some work, I sold it for 2x what I paid for it. That gave me the down for the place I live now. The original mortgage was 8%, so when rates dropped I took the opportunity to refi on a 15 year note, and paid it off.
Your horizon is just fine. Many people can't think past their next paycheck, or the end of the month. You are planning to have a graduate degree and no student debt. It's a good plan. Home ownership will probably happen for you eventually, but doing it before the ink is dry on your degree would be a bad choice.
Just the opinion of an old fart.
The crudy thing is you still have property taxes, utilities and insurance. That can stack up to $1,000 a month in my area and those are charges you can never escape. You can try doing something like solar panels or something but just taxes and insurance will still be like 500-600, that's pretty steep for being debt "free".
Many young foreign millennials believe the 1st thing to do coming to America is to buy a home quickly. Some of the priciest properties are purchased by immigrants in large cities on both coasts and even in Canada. Majority of them do not have a US college diploma and no college tuition debts. That's the problem with the American dream today is that fewer and fewer Americans can chase that dream while more and more immigrants are able to obtain it because they are not saddled by student loan debt and are heavily recruited by technology companies.
A lot of immigrants in their countries saved up a lot of cash while working for American companies due to lower income taxes are able to obtain the American dream when they get here and buy a home. They don't drink starbucks or must eat the latest fad food places. They go to work and pay their mortgage.
The crudy thing is you still have property taxes, utilities and insurance. That can stack up to $1,000 a month in my area and those are charges you can never escape. You can try doing something like solar panels or something but just taxes and insurance will still be like 500-600, that's pretty steep for being debt "free".
It's called "civilization."
Larry can reverse mortgage his little loveshack, live in it until he goes off to the pablum farm, and easily cover his monthly costs. Possibly even sell, pay off the mortgage balance, and pocket bingo money.
I would rather cover $1000/month in ownership than $700 in rent.
Actually, for me, the numbers would look more like $700 in ownership and $1200+ in rent.
Larry can reverse mortgage his little loveshack, live in it until he goes off to the pablum farm, and easily cover his monthly costs. Possibly even sell, pay off the mortgage balance, and pocket bingo money.
I would rather cover $1000/month in ownership than $700 in rent.
Actually, for me, the numbers would look more like $700 in ownership and $1200+ in rent.
Not bad. Not bad at all.
So would I but lets not pretend like being debt free gets us out of slavery, it just means I have more options and can take a lesser job and not loose everything but its still slavery.
So would I but lets not pretend like being debt free gets us out of slavery, it just means I have more options and can take a lesser job and not loose everything but its still slavery.
You sir are pathetic, the previous generation sold us out to the chineese and now we are the slaves. All groveling and competitng for a hand full of good jobs lest we loose everything and have to worry about live on the streets or living check to check.
What percentage of jobs in the USA are now at will, don't have defined pensions and have shabby medical benefits with high premiums.
Now the puppet masters want to get us into a nuke war with Russia by manufacturing a chemical attack in Hollywood and putting it out for consumption. Not a peep about 45% tarrifs on china and mexico, not a peep about permenantly removing ALL foreigner work visa's permentaly, not a peep about anti trust.
In this life there are slaves and free peoples, God the father in his wrath due to our behavior set up our testing ground such that we have to work to sustain ourselves but evil men have devised complex societies that keep people working longer and harder for less and less with absolutely no accountability towards their peasents (ie workers who don't own significant revenue generating assets).
Anyone can be thrown out on the streets for any reason and that is evil. your endorsement of said behavior also implicates you as well.
The crudy thing is you still have property taxes, utilities and insurance. That can stack up to $1,000 a month in my area and those are charges you can never escape. You can try doing something like solar panels or something but just taxes and insurance will still be like 500-600, that's pretty steep for being debt "free".
That's a choice that depends on where you live. My homeowner insurance is $800 a year, and that includes the million dollar liability umbrella. My property taxes are $1600/year. That adds up to a whopping $200/month. I challenge you to find any place anywhere in the USA where you can rent for that. It gives me a lovely home in a beautiful setting surrounded by huge maples with a creek in the back yard, a barn, a shop, a gazebo overlooking the creek with power and data lines so I can use it as an outdoor office, and 90 acres of forest and pasture.
You have utilities wherever you live. My only utility bill is power, and it runs about $140/month in the winter, $125/month in the summer, $50/month in the spring and fall. I just put a 30 year roof on the house. Pro-rated, that's a whopping $16/month.
It sounds to me like you live in an eastern state. The 13 colonies funded their government on property taxes, and they never broke the habit.
Larry can reverse mortgage his little loveshack, live in it until he goes off to the pablum farm, and easily cover his monthly costs. Possibly even sell, pay off the mortgage balance, and pocket bingo money.
I would rather cover $1000/month in ownership than $700 in rent.
Actually, for me, the numbers would look more like $700 in ownership and $1200+ in rent.
Not bad. Not bad at all.
Larry hasn't had a mortgage balance in 9 years. I paid off the mortgage in 2008, and didn't retire until I was FRA in 2014. I just added the mortgage payments to retirement savings and ended up with another $200k net worth by the time I retired. Since then, cash flow has covered my expenses so I haven't needed the money, but the feds are going to make me start RMDs this year, so I'm going to build a couple outbuildings. I have a cruddy old woodshed that needs to be torn down. I want to replace it with a 2-story gambrel roof mini-barn with storage below and a rec room upstairs big enough for a projection theater and a pool table. That's the big advantage of owning over renting. You can do anything you want with the property. Will I get the money back when I sell? <shrug> Who knows? I don't really care. When we sell the place, my wife and I will have plenty of money to support our feeble old age.
It sounds nice, doesn't it? That is the result of a plan that started 30 years ago, when neither of us had any resources and both of us had a mediocre income. We sacrificed a lot for many years. Some people would say they would rather live than do that, but hey, we aren't dead yet, and are living pretty well.
That's a choice that depends on where you live. My homeowner insurance is $800 a year, and that includes the million dollar liability umbrella. My property taxes are $1600/year. That adds up to a whopping $200/month. I challenge you to find any place anywhere in the USA where you can rent for that. It gives me a lovely home in a beautiful setting surrounded by huge maples with a creek in the back yard, a barn, a shop, a gazebo overlooking the creek with power and data lines so I can use it as an outdoor office, and 90 acres of forest and pasture.
You have utilities wherever you live. My only utility bill is power, and it runs about $140/month in the winter, $125/month in the summer, $50/month in the spring and fall. I just put a 30 year roof on the house. Pro-rated, that's a whopping $16/month.
It sounds to me like you live in an eastern state. The 13 colonies funded their government on property taxes, and they never broke the habit.
I live in Alaska and property taxes are 420 a month and that's after fighting with the city. Insurance is about the same and utilities are much higher. Electric is about the same but gas is like 300 a month in winter, that's real money if you give up your big money job or the big money job gives up you.
The house we get for that price is MUCH nicer than the crappy apartment (and crappy land lords) at a similar price point though.
Not sure how to plan to cut hours or retire with a grand a month that never goes away.
You sir are pathetic, the previous generation sold us out to the chineese and now we are the slaves. All groveling and competitng for a hand full of good jobs lest we loose everything and have to worry about live on the streets or living check to check.
What percentage of jobs in the USA are now at will, don't have defined pensions and have shabby medical benefits with high premiums.
Now the puppet masters want to get us into a nuke war with Russia by manufacturing a chemical attack in Hollywood and putting it out for consumption. Not a peep about 45% tarrifs on china and mexico, not a peep about permenantly removing ALL foreigner work visa's permentaly, not a peep about anti trust.
In this life there are slaves and free peoples, God the father in his wrath due to our behavior set up our testing ground such that we have to work to sustain ourselves but evil men have devised complex societies that keep people working longer and harder for less and less with absolutely no accountability towards their peasents (ie workers who don't own significant revenue generating assets).
Anyone can be thrown out on the streets for any reason and that is evil. your endorsement of said behavior also implicates you as well.
Sorry.
Point of order:
I called "pathetic" first.
In hindsight , I may be In error, as I may have overestimated and given too much credit.
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