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Record low numbers of millennials think buying a home is a good investment—here's why
- Thread starter entremet
- Start date
I have about $20k in savings. Not even enough for a down-payment these days except maybe on the most fixer-upper of homes. Which is a separate investment in itself.
Yeah.. this. If you're smart about property investment, homes are great. Rent them out and then sell them for a profit.
Condos are the new starter homes for most young people in the Boston area, and anything new is basically purchased outright for rental or flipping.
$270k (the median USA price) gets you a 800 sq ft 1 bedroom 10 miles from the city. "But why not move to a place with cheaper housing and no jobs" doesn't really sound more appealing.
Edit: the solution as it is for many things is to fix the stagnation of wages for the true middle class (people earning less than 100k/year). Until that happens ownership will be a fantasy for this generation.
Not if you live in America. First Time Home Buyer mortgages are fine if you don't mind PMI. We have a 3.36% interest rate and a PMI bill of $150 a month. We put about $7K down on a $335K home and pay $2500 a month including an $8K a year tax bill.
I've long given up in hope of ever owning a house. My grandparents will probably leave me there home when they die but I won't be able to maintain it and will most likely have to sell it. I'll never have anything substantial. It's depressing but that's what reality is for me and a lot of us.
Homes are too expensive unless you have the perfect financial situation. In other words : Be in a relationship so you can share the bill. Both in the couple have a good salary. And no debts. Good luck getting all 3.
If I want to buy a decent home around where I live, which is like 250k, how am I suppose to afford that when both my gf and me together can't even make 70k a year before taxes(which takes a good portion of that 70k already)? We might have a child soon on top of that, so forget ever getting out of our apartment for at least the next 20 years.
If I want to buy a decent home around where I live, which is like 250k, how am I suppose to afford that when both my gf and me together can't even make 70k a year before taxes(which takes a good portion of that 70k already)? We might have a child soon on top of that, so forget ever getting out of our apartment for at least the next 20 years.
If I manage to secure this new job, I might be able to start thinking about buying something in two years or so, but that would also require me to spend money on next to nothing else during those two years. Thankfully, I live in an area where prices aren't too crazy and depending on what you're looking for, owning can be cheaper than renting.
If you're waiting to inherit why not rent? Living with parents is usually a way to try and save a deposit.
In the UK in particular the parry is that living practices have not adapted to renting. Pensions are dropping and rely a lot of you having paid off your mortgage to have lower outgoings. Paying rent after retirement would be a real PITA.
If it's one thing that people hate here it's realism about what the current situation really looks like lol. I get shut down all the time for being real. But I get it, though, the reality is hard to face.
Can someone explain the fear of not eating healthy to me?
Do we need more YouTube channels dedicated to teaching people how to shop?
Do we need more YouTube channels dedicated to teaching people how to shop?
I mean buying a home takes time to save for most. Unless parents or you have a nice lump of cash.
Bullshit. 1980 made it into the ass end of Gen X.
https://www.google.com/amp/s/amp.usatoday.com/amp/386562002
Don't call me a millennial. It's insulting, lol. But don't worry I'll get over it without a safe space.
Bullshit. 1980 made it into the ass end of Gen X.
https://www.google.com/amp/s/amp.usatoday.com/amp/386562002
Don't call me a millennial. It's insulting, lol. But don't worry I'll get over it without a safe space.
This us the 3rd article in a year that had conflicting information about millennials and home buying.
Are buying less homes thsn any generation
Are buying the most homes of any generation
Which is it!?
Are buying less homes thsn any generation
Are buying the most homes of any generation
Which is it!?
OP
OP
I don't know if they're fucked. Renting will just become the new normal. And home buying, something that even lower middle class could do with ease, will be increasingly available only to upper middle classes. Not really the upward mobility story the American Dream loves to fantasize about.
Think about, people were buying homes on one modest income decades ago. That's long gone.
This is about their opinion on homeownership.
Watching people lose their houses left and right in the wake of the recession, even if it was "people who shouldn't have been approved," was enough to wash away any notion of homes being a sound investment. The wrong person at the wrong bank can decide you're over that line and then everything is gone. Additionally, the way Millennials are constantly changing jobs (it's every two years on average, last I looked) or even careers means staying rooted in one location may not be viable (for example, my wife is looking at job opportunities on the other side of the country and we can reasonably move if we want).
Personally, I would also live in constant fear of the upkeep. I'm on my apartment's third water heater, had a ton of A/C / furnace repairs (including one in the middle of the night in the dead of winter which got fixed quickly), a bunch of washer/dryer/dishwasher issues, little issues like leaks / cracks / blinds / etc., not to mention stuff like mowing, snow removal and trash (our complex covers water and sewage as well). Yes, the rent I pay includes the cost of all that, but none of those were unexpected expenses where we had to scramble to pay for the repair. Whereas I've seen family and friends have to scramble to cover the cost of a sudden household expense, paying an exorbitant amount just to have someone show up and look at the problem.
Basically, I only see houses as a risk, with a ton of maintenance risks on top of that, and I'm not the gambling type. We have more space than we need as it is and are happy not being tied down to anything longer than a yearly lease. We have decent neighbors (I can't imagine investing in a house only to have horrible neighbors move in and being stuck with them, never mind having your property values drop because of them), we're in a nice area close to shopping / work / entertainment but far enough away from everything that we feel safe. Whatever complaints I have about apartment living are tiny compared to the stress I would have dealing with a house.
Literally the only reason I can think of for owning a home is getting a dog. I know plenty of breeds are okay in apartments but I'd rather they have a yard to run around in.
Personally, I would also live in constant fear of the upkeep. I'm on my apartment's third water heater, had a ton of A/C / furnace repairs (including one in the middle of the night in the dead of winter which got fixed quickly), a bunch of washer/dryer/dishwasher issues, little issues like leaks / cracks / blinds / etc., not to mention stuff like mowing, snow removal and trash (our complex covers water and sewage as well). Yes, the rent I pay includes the cost of all that, but none of those were unexpected expenses where we had to scramble to pay for the repair. Whereas I've seen family and friends have to scramble to cover the cost of a sudden household expense, paying an exorbitant amount just to have someone show up and look at the problem.
Basically, I only see houses as a risk, with a ton of maintenance risks on top of that, and I'm not the gambling type. We have more space than we need as it is and are happy not being tied down to anything longer than a yearly lease. We have decent neighbors (I can't imagine investing in a house only to have horrible neighbors move in and being stuck with them, never mind having your property values drop because of them), we're in a nice area close to shopping / work / entertainment but far enough away from everything that we feel safe. Whatever complaints I have about apartment living are tiny compared to the stress I would have dealing with a house.
Literally the only reason I can think of for owning a home is getting a dog. I know plenty of breeds are okay in apartments but I'd rather they have a yard to run around in.
Millennials could simultaneously be the largest % of homebuyers today, and still be buying homes at a rate much lower than previous generations in their respective heydeys.
Ownership rates are the lowest they've been in 50 years, so millennials being the largest purchasing group doesn't mean much:
https://blogs.wsj.com/economics/2015/07/28/u-s-homeownership-rate-hits-48-year-low/
I currently live and work in Copenhagen, the capital of Denmark. Getting to work takes 30 minutes by much too crowded bus.
In two months I will be moving into my house which is 60km from Copenhagen. My commute will be 60 minutes by half-empty train.
Small town with complete silence and no traffic. I'll have more space (dedicated hometheater here I come) and much bigger and newer kitchen. Can't wait!
In two months I will be moving into my house which is 60km from Copenhagen. My commute will be 60 minutes by half-empty train.
Small town with complete silence and no traffic. I'll have more space (dedicated hometheater here I come) and much bigger and newer kitchen. Can't wait!
Haha, saving takes time. You don't just graduate and have that down payment ready to go. Shit, it's why I bought a condo and not a house. Was cheaper.
Oh I wasn't being dismissive, haha. I just thought it was funny how you really didn't want to be identified with millennials.
Do you have to go to the office everyday? I can't imagine giving up 10 hours a week of my life just commuting. I have a 15 minute walk and even that is terrible.
Currently residing in my gma's old house. paying 'rent' to my aunt.
If I can just get my spit together, this place will be mine eventually.
Feet don't fail me now. Millenials stink.
If I can just get my spit together, this place will be mine eventually.
Feet don't fail me now. Millenials stink.
I was spoiled working from home for a decade. Once you do that everything else is soul sucking.
Understandable from that perspective. Work clothes and all gotta be a real drag.
Yeah, more threads should specify the country in the title if it only applies to one country/region.
I grew up in a small house and there was pretty constant maintenance and repair - enough to make me not really see the appeal in it. I can only image the work a larger home requires.
I wouldn't want to keep a huge house clean. And what if I wanted to move? Owning a house sounds terrible.
Uhhhh no shit, most late 20's / early 30's folks don't have ~30-60K lying around.
Oh. Gotcha. Hell no. I got my ass beat. No safe spaces.
Try 20 hours a week....
"Put $40k down when you make $50k/yr with no benefits or security and before you pay off your student loans you coward."
No, that is not terrible. Don't be asinine. I had a job for several years that was only a 10-15 minute walk away and as much as I hated that job I felt immensely fortunate that it was so close.
I feel the same way. My parents treated their house as in investment. Then 2008 came.
And you're right, home ownership is not exactly greatly compatible with how mobile millenials are supposed to be. They say employers have no loyalty to workers anymore and if you want real raises you need to switch jobs every 2-3 years. Uhh, okay. So assuming you're not lucky enough to always find a new job in the same part of the same city you're in, that means dealing with selling your house several times throughout your life. Oh but don't worry, just become a landlord, rent it out and deal with all that bullshit while simultaneously dealing with the upkeep bullshit of your new house! Jesus christ, no thanks.
The cap rate in cities is so fucking shit right now so of course you want to rent. Where do the majority of people live? Cities! Our old condo back in San Jose, California is "worth" about $850,000. To get a 30 year mortgage on that is $4,000 a month if you get a *really* good interest rate. We rent it out for $2,850 because that's about what the market supports.
Who wants to burn an extra $1,150 a month on a mortgage? Who has $1,150 a month to burn on the novelty of having a mortgage? Then you have to pay property taxes on top of that! Another $550 a month! So you're down $1700 a month but you're "building equity". Minuscule amounts of equity. People would look at the minuscule amount of equity, the massive amount of cash you're outlaying, and look at you saying "are you a fucking idiot?"
It's one thing to own a home when the cap rates are in proper order and the difference between mortgage + property tax is much closer to rent. Owning a home when the cap rates are so ridiculously low? Who the fuck has money to burn for that?
Who wants to burn an extra $1,150 a month on a mortgage? Who has $1,150 a month to burn on the novelty of having a mortgage? Then you have to pay property taxes on top of that! Another $550 a month! So you're down $1700 a month but you're "building equity". Minuscule amounts of equity. People would look at the minuscule amount of equity, the massive amount of cash you're outlaying, and look at you saying "are you a fucking idiot?"
It's one thing to own a home when the cap rates are in proper order and the difference between mortgage + property tax is much closer to rent. Owning a home when the cap rates are so ridiculously low? Who the fuck has money to burn for that?
I have $130K remaining in student debt, I have a son, and I own a house. You make it work. You don't whine about being afraid you won't be able to eat healthy anymore.
..... man it sucks being a millennial when you look at the financial aspect of it.
It's just so weird that as we are making shit wages that aren't enough to live off of, with no prospects for a better future, that we don't want homes that are increasingly more expensive.
Ah well, better jack up the prices and give rich people tax cuts. That will fix it! Also make sure we don't have access to healthcare, that will pair nicely.
Ah well, better jack up the prices and give rich people tax cuts. That will fix it! Also make sure we don't have access to healthcare, that will pair nicely.
I don't think houses are a bad investment. I just don't particularly want a house. As a Millennial, that makes me part of the problem. I just don't feel like I need all that living space.
Truth. I can literally work from bed with my wireless keyboard and mouse. If I ever have to do a normal commute again I will probably be extremely depressed.
This. Holy shit. No one is saying it's easy. It takes time. It may take compromises in other areas.
How is this different from renting? You signed a lease, you aren't going to get released because you are broke.