2022 Real Estate Observations (Boston, Marlborough, Winchester: short sales, special education, golf)

[msRB311]

Originally Posted by matrix5k

All I was saying is don't be so quick to judge young people with money, they don't always get help from parents.

My buddy graduated from state school in 2006 with a comp sci degree. He rented a cheap apt with roommates and put every dollar he could into stocks during the 2008 crash. I think he bought mostly blue chips like Microsoft, Apple, Google. By 2011-12 he had put at least 20% down on a house in San Francisco, the actual expensive city not a suburb. He was under 30 at the time so it can be done. He's rented out the other rooms which paid for the mortgage the whole time.

right so he got his money through stocks. Not just taking his income and sticking it in a savings accounts.

[msRB311]

Originally Posted by WestieWhitie

401K is stocks though, at least until you start getting close to retirement and since you're in your mud-40s I assume you've done quite well and are sitting on well over $300K at this point. Problem is there are plenty of people who choose not to contribute at all and instead blow their paychecks on Canada Goose of every available color and trendy $25 (plus tip) cocktails.

I do have more than 300k in my 401k thankfully...but i would have had more if i had put more into in my 20's. I wish I had! I think it was hard to get the concept at that stage in life. I didn't care about money i would need when i was 65. And yes I did spend my money on some pricey drinks back in the day. Who didn't.

[WestieWhitie]

Originally Posted by msRB311

right so he got his money through stocks. Not just taking his income and sticking it in a savings accounts.

Right but he made that money by using his own earnings, not by getting an interest-freee loan with mandatory forgiveness clause from Big Bank of Rich Mommy and Daddy.

[msRB311]

Originally Posted by WestieWhitie

Right but he made that money by using his own earnings, not by getting an interest-freee loan with mandatory forgiveness clause from Big Bank of Rich Mommy and Daddy.

True. Good for someone who did this. I can only hope my kids cares about 401ks and the stock market when they're 25. They currently have safe they put cash in and i keep telling them they should put it in an account but they likes to take the money out and look at it/play with it.

[BostonMike7]

I didn't get into stocks and such until the '08 Crash. I think i was 25 or 26.

But when I was 18, I don't think online brokerages existed like they do today. Investing in stocks seemed out of reach. Then it seemed like you had to call up a broker and make your trade over the phone, vs now where I can deposit money and make a few trades with a few clicks.

Still, it doesn't necessarily educate folks how to invest safely when you hop on forums such as r/wallstreetbets and see pump and dump type action with a lot of calls for #YOLO (implying dumping all your cash into a risky venture). Plus we've all seen what happened with Robinhood in the wake of the dodgecoin and Gamestop market events over the last few years. Lots of younger folks have access to easy trading now, but without real education as to how to safely invest. As a result, tons of folks lost a lot of $$ on risky ventures.

I've had basic-level conversations with my 9 year olds on how the stock market works. I need to look into it further but I wish there was a way I can open accounts for/with them and buy some funds or such so they see how that money grows to start to show them how $1 invested today can grow.

Then they might have a shot in buying a home (to keep this on topic)

[yesmaybe]

Originally Posted by id77

Unless you're a bear of the 'the market will not recover for 20 years' variety, a crash is going to help someone putting money away for a down payment in 5-10 years by allowing them to buy even more at a discount this year.

I am a long term bear, mostly because the political will to continue to pump the stock market to no end is not going to last. You also have to account for the inevitable invasion of Taiwan by China; which is going to screw up Tech Stocks no matter the outcome. It could still be better than the alternatives, but diversification isn't a bad idea given the circumstances.

In that case, real estate with a reasonable commute to Boston or Cambridge is going to look pretty good honestly.

[yesmaybe]

Originally Posted by BostonMike7

But when I was 18, I don't think online brokerages existed like they do today. Investing in stocks seemed out of reach. Then it seemed like you had to call up a broker and make your trade over the phone, vs now where I can deposit money and make a few trades with a few clicks.

I've had a Scottrade account for awhile (now owned by TD Ameritrade). Back then you had to go to a branch to sign up. But you could use the website to place trades and such. Wikipedia has an reference that the company claimed that in 2003 98% of trades were online.

[jayrandom]

Originally Posted by WestieWhitie

Right but he made that money by using his own earnings, not by getting an interest-freee loan with mandatory forgiveness clause from Big Bank of Rich Mommy and Daddy.

I for one hope I’m in a position to help my kids buy a house when it comes time. And I hope it helps them out enough that they can do the same for their kids.

That’s not to say that doing it on your own isn’t admirable, but having help and helping your family aren’t terrible things, either.

[simplexsimon]

Originally Posted by BostonMike7

I've had basic-level conversations with my 9 year olds on how the stock market works. I need to look into it further but I wish there was a way I can open accounts for/with them and buy some funds or such so they see how that money grows to start to show them how $1 invested today can grow.

Then they might have a shot in buying a home (to keep this on topic)

UTMA account where you're the custodian.

You can do this with bank accounts too, especially if rates keep going up the interest will be more meaningful. Explaining why stock and bond prices go up and down might be for later.

[matrix5k]

Originally Posted by msRB311

right so he got his money through stocks. Not just taking his income and sticking it in a savings accounts.

Yes, I originally said someone under 35 could save 23k per year for 13 years or put half of that into the stock market and get there too. I lost track of who I originally replied to, but that person assumed anyone age 35 with 300k got it from their parents or inheritance.