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In hindsight , I may be In error, as I may have overestimated and given too much credit.
Enjoy things now while we have a phony nationalist in office because when we get a socialist or a real nationalist things are going to change and the establishment wont like it. Most of the American people want protectionism so we will see how the senate seats shake out in 2018. I am hoping they get filled with socialists or nationalists.
With the amount of student debt that I have (55K) I will technically be "broke" for the next 5-6 years so I can get rid of it. Even if I did want to buy, it probably wouldn't be for another 8 years realistically.
I like to live a pretty simple, frugal life. Not out of necessity, but because it's just the way I am. If I were to buy, I feel like that would all change and I would have to adopt a different lifestyle which doesn't seem appealing.
I don't think the lady and I are having kids, so there isn't any need for more space. We won't need to pass on an "asset" on to anyone else.
The area I am in has a median home price of 800K (Boulder, CO) so a condo/townhome is all that we'd be able to afford which I'm in anyway. I'll leave the high HOA payments with the owner.
Once my debt is gone, I'm going to have ~1500/month after living/spending expenses. This will allow me to max out my 401K, set up a supplemental roth ira, save a little, and invest in areas other than home ownership. All without the hassles that come with home ownership.
I've messed with a bunch of calculators and renting vs. buying usually seems to balance out throughout one's lifespan. Once I die, I'm not going to care if I own a house.
I'm not handy at all, have no desire to mow a lawn, buy a hot water heater, or fix the roof when it starts leaking.
I like to live a minimalist lifestyle, and it seems like buying a house will just start a cycle of "buying because it's needed for the previous purchase". How many bottles of random stuff do you have in your house that you haven't touched in months? Having an apartment prevents you from buying just to fill up blank space. Have you seen some of the living spaces in Europe?
If the lady and I decide to pack up and go somewhere else, we can easily do so.
I'm sure there is more, but these are some of the reasons that we'll most likely be renting for awhile based on my experiences, values, and situation.
Millenial here. I wish I could buy a house, but I am single and thus live paycheck-to-paycheck. The only way to own a home for many people is to be dual-income. Despite my multiple college degrees and $50,000 salary it's not enough to buy a home. I can't imagine scraping together 5% down, much less 20%. A decent house around here is about $300K, so that would be $60K for the down payment, more than I make in a year. How can I possibly save that much? I could buy something for about 200k, but it'll be some old thing from 1920 that's going to cost me a fortune to repair over the 30 years of the mortgage. I don't want to buy a townhouse/condo where the board can decide to make me pay for new windows or a new roof or something I don't have the money for. I've heard those horror stories from friends, having to go into credit card debt to pay for condo crap like that. So I am doomed to rent.
*sigh* My only hope is that my parents leave me their house when they die.
Research is showing that the millennial generation is forgoing the once cherished tradition of purchasing a home. For many of us 'Baby Boomers' our greatest asset is the equity we have built up over the years by buying rather than renting. In my case several hundred thousand thousand dollars. If I had chosen to rent through the years and perhaps taken the easy route (no maintenance, freedom to move at will, etc) I probably would have payed about the same in rent as I did in mortgage.
I can see singles or childless opting for urban rentals and walk to work and bars but I can't really understand why families would choose to rent.
Lots of very smart folks on this CD forum so I would appreciate insight. Maybe things have changed and I am looking at things totally wrong.
We can't afford homes at a young age. Simple as that. Especially me, living in northern NJ/metro NYC... Do you know what property taxes are like in NJ? But I'm still early 20s and in school.
(Obviously not all of us... but many of us. Especially many of us who went to/go to college and especially grad school. It's a different world now.)
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.
Wow. I always thought Alaska was the last frontier, where the only problem was getting enough vegetables and sunlight in the winter. I can't imagine what would justify a $400/month homeowner insurance bill. Are you on an earthquake fault or something? We have the Cascadia fault here, but I'm 150 miles from the fault and the Siskiyous are between me and any tsunami. I'd probably have to rebuilt my brick chimney, but that's it.
My energy needs get taken care of by a wood stove during cold weather, and the fact that I have upgraded the energy efficiency of our home with lots of insulation, efficient doors and windows, and honeycomb blinds that make the windows even more efficient. Of course, 40 degrees of heating or cooling is pretty normal in this area. We only get a couple dozen 50 degree heating days a winter, and 60 degree heating days are rare. In the winter we typically leave the thermostat at 60 to remind us to start a fire if we are cold. I have about 55 acres of mixed timber, and there is more wood falling off the trees than we need for heat. This time of year it's about a 10 degrees of heating, and solar gain through the south windows takes care of it.
Millenial here. I wish I could buy a house, but I am single and thus live paycheck-to-paycheck. The only way to own a home for many people is to be dual-income. Despite my multiple college degrees and $50,000 salary it's not enough to buy a home. I can't imagine scraping together 5% down, much less 20%. A decent house around here is about $300K, so that would be $60K for the down payment, more than I make in a year. How can I possibly save that much? I could buy something for about 200k, but it'll be some old thing from 1920 that's going to cost me a fortune to repair over the 30 years of the mortgage. I don't want to buy a townhouse/condo where the board can decide to make me pay for new windows or a new roof or something I don't have the money for. I've heard those horror stories from friends, having to go into credit card debt to pay for condo crap like that. So I am doomed to rent.
*sigh* My only hope is that my parents leave me their house when they die.
You don't live in a starter home for the rest of your life. You don't even live in a starter home for 10 years. You shop for distressed properties with deferred maintenance, probably that no bank will loan on so the owner has to carry a contract. You spend your weekends painting it inside and out, fixing the broken windows and doors, and doing something with that weed patch they call a yard. Stay away from houses with rotten wood, rotten plumbing, or overhanging trees that will cost you thousands of dollars to remove. You sell it for a hefty profit, and use the profit for a down payment on a house you really want to live in.
Stay away from 30 year mortgages. The first 10 years of payments are almost all interest. The payments on a 15 year mortgage are not that much higher. The only justification for a 30 year mortgage is if you plan to sell again in the near future. Talk to an attorney before you buy on contract, because you lose many mortgage protections. Look for a trust deed and note rather than a purchase contract. Your attorney can explain this to you.
Don't think it's impossible. It's not. If you blindly follow the path of John Q. Consumer you will pay for it, but if you work the angles you can come out very well. Living paycheck to paycheck you think of money as something to spend, but when you have a big wad of money it becomes a tool to generate wealth. You don't spend it, you use it.
BTW, if you are negotiating a contract purchase, the seller might be firm on price but more flexible on interest rates. See what deal they are offering, and don't be afraid to walk if it doesn't meet your needs.
Last edited by Larry Caldwell; 04-08-2017 at 03:06 AM..
Reason: postscript
We can't afford homes at a young age. Simple as that. Especially me, living in northern NJ/metro NYC... Do you know what property taxes are like in NJ? But I'm still early 20s and in school.
(Obviously not all of us... but many of us. Especially many of us who went to/go to college and especially grad school. It's a different world now.)
My BIL grew up in New Jersey, and has said that he couldn't afford the property taxes on the house he grew up in, which currently run about $5,000/month. All I can say is, NYC/NJ is not the world. As soon as you finish school, leave.
BTW, nobody in their early 20s who was still in school could afford a home, ever. That's the same old world it always was.
My BIL grew up in New Jersey, and has said that he couldn't afford the property taxes on the house he grew up in, which currently run about $5,000/month. All I can say is, NYC/NJ is not the world. As soon as you finish school, leave.
BTW, nobody in their early 20s who was still in school could afford a home, ever. That's the same old world it always was.
Places like NYC and NJ are where all the good jobs are. Cheapsville does not.
area and cost of living are not expensive in a vacuum . they are expensive because they are in demand and they are usually in demand because that is where you will find the higher paying jobs .
you can do better generally in the higher cost area's if you have a decent paying job and buy a home .
social security pays you a lifetime of income based on higher wages so relocating to cheapsville at retirement can give you a nice edge .
also if you own your home long enough the more expensive the home the greater the appreciation dollars can be .
a 600k home that appreciates even 2 oe 3% is a whole lot more than a 200k home appreciating 2 or 3% so transplants like this who relocate are generally much better off than the locals in cheapsville .
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