I know why Millenials can't afford houses and pay off their student loans..

[Anonymous]

There is no excuse to have much student debt. 2 years community college 2 years state flagship . Go to work. Find roommates buy all groceries and basic stuff at Walmart . Start saving . Invest in stocks .

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:^ Different folks have different debt tolerances. We paid off our home in 3 years. Mathematically, would it have been more profitable to have stretched it out to 30 and invested the difference? Probably. But we wanted the mortgage gone, and we've got no regrets.

But doesn't this impact your tax rate? Doesn't it help to have the mortgage interest tax deduction?

I wish I had $1 for every time I've pointed out that you pay $1 for 30 cents in mortgage tax deduction.

Stupid.

+1. So financially illiterate. An interest deduction is great when you have no choice but to incur the expense of paying interest, like when you take a mortgage to buy a house. Interest is still an expense you pay, real $ going out to the bank. The deduction helps soften the blow, but ideally you don't have the expense at all.

You have a fixed low rate loan, at like 4%, and you get 30% back as tax deduction. So basically if you can find a way to use that cash you have to earn something like 2.8%, you have made up the cost of the interest. A 10 year T-Bill will do that for you in fact, but you could even just do a 5-year and then mix it up with some higher yielding corporate debt or stocks.

The fixed low interest rate AND tax deduction, giving that away, that is financially illiterate, sorry.

[Anonymous]

Debt is debt. I sleep much better at night knowing I have two houses paid off, 4 income generating units, $1M in the bank and I owe no one anything.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I graduated from college in the early 90s and no one was buying houses right out of college.

Everyone either had roommates, or was married. Some people stillmlived with their parents.

The homes were not single family homes in hip expensive neighborhoods. They were suburban apartments or town houses for those who wanted a little nicer homes, or dives in the city.

I don't know why millenials aren't doing the same, ie getting roommates and living in less than ideal starter apartments just like everyone else. I think a lot of their housing issues are because they have a warped hgtv idea of what their first place should look like, and think they deserve more so they just decide to live with mom and dad instead so they have fun money and nice things.

I have no idea why they are too irresponsible topay off their college loans.

They might be educated, but they failed at basic consumer math when they chose to take out these exceptionally expensive loans for degrees that aren't marketable and from overpriced expensive universities.

They should not get their debt forgiven. That is unfair to everyon who met their debt obligation or who made better, more responsible choices.

Most of my friends who are now 40ish still do not own homes. most are contemplating leaving DC to get enough space for their small families. Most do not want to leave.

I lived in a group house for 7 years, with boyfriend for 4 before getting married. I have never owned a car and I spent months eating $0.75 mac n cheese for lunch and going out with friends only 1x/wk. I STILL cannot afford a home in a relatively safe neighborhood. I have zero student loans. I have worked my tail off for 15 years at my job. A 3br, 1200 sq ft home zoned for Wilson simply isn't available for under $1M. And if I move out of the city, that likely means 2 car payments. This place is insane.

The world does not owe you a home in the DC area. It's expensive here, no doubt. It can be a cool place to live. But some people cannot afford to live here, even though they might very much want to. It's cold reality.

Please point me to the section wehre I said "the world owes me a house". Idiot.

You could easily buy a SFH in Arlington on the Orange/Silver line for $750K. It will be old and crappy, but you will be in your own house.

Here's one for 675 - https://www.redfin.com/VA/Arlington/5724-16th-St-N-22205/home/11237139 3BR, 1400 sq ft, Yorktown HS.

I can't afford that, but thanks. well over 500k with major repairs needed isn't exactly possible with our nonprofit + govt salaries. But we'd be rich anywhere else. I don't complain, like ever, but it does grate on me that we can't find a solution to our space problem (one boy and one girl so will need own rooms at some point). I have no idea what we're going to do. Both of us are more employable in this area.

[Anonymous]

Anonymous wrote:Debt is debt. I sleep much better at night knowing I have two houses paid off, 4 income generating units, $1M in the bank and I owe no one anything.

yeah, sure. That'd be nice. I simply don't understand why everyone in the world isn't in your situation.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Debt is debt. I sleep much better at night knowing I have two houses paid off, 4 income generating units, $1M in the bank and I owe no one anything.

yeah, sure. That'd be nice. I simply don't understand why everyone in the world isn't in your situation.

Isn't that the point of this entire thread? $38 candles and $200 knives.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I graduated from college in the early 90s and no one was buying houses right out of college.

Everyone either had roommates, or was married. Some people stillmlived with their parents.

The homes were not single family homes in hip expensive neighborhoods. They were suburban apartments or town houses for those who wanted a little nicer homes, or dives in the city.

I don't know why millenials aren't doing the same, ie getting roommates and living in less than ideal starter apartments just like everyone else. I think a lot of their housing issues are because they have a warped hgtv idea of what their first place should look like, and think they deserve more so they just decide to live with mom and dad instead so they have fun money and nice things.

I have no idea why they are too irresponsible topay off their college loans.

They might be educated, but they failed at basic consumer math when they chose to take out these exceptionally expensive loans for degrees that aren't marketable and from overpriced expensive universities.

They should not get their debt forgiven. That is unfair to everyon who met their debt obligation or who made better, more responsible choices.

Most of my friends who are now 40ish still do not own homes. most are contemplating leaving DC to get enough space for their small families. Most do not want to leave.

I lived in a group house for 7 years, with boyfriend for 4 before getting married. I have never owned a car and I spent months eating $0.75 mac n cheese for lunch and going out with friends only 1x/wk. I STILL cannot afford a home in a relatively safe neighborhood. I have zero student loans. I have worked my tail off for 15 years at my job. A 3br, 1200 sq ft home zoned for Wilson simply isn't available for under $1M. And if I move out of the city, that likely means 2 car payments. This place is insane.

The world does not owe you a home in the DC area. It's expensive here, no doubt. It can be a cool place to live. But some people cannot afford to live here, even though they might very much want to. It's cold reality.

Please point me to the section wehre I said "the world owes me a house". Idiot.

You could easily buy a SFH in Arlington on the Orange/Silver line for $750K. It will be old and crappy, but you will be in your own house.

Here's one for 675 - https://www.redfin.com/VA/Arlington/5724-16th-St-N-22205/home/11237139 3BR, 1400 sq ft, Yorktown HS.

I can't afford that, but thanks. well over 500k with major repairs needed isn't exactly possible with our nonprofit + govt salaries. But we'd be rich anywhere else. I don't complain, like ever, but it does grate on me that we can't find a solution to our space problem (one boy and one girl so will need own rooms at some point). I have no idea what we're going to do. Both of us are more employable in this area.

Don't fret. That house was a red herring. $750k for the lot; a 100 year old house that used to be the stables or something, obviously would take $100ks to KEEP that place liveable and safe for your kids.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Debt is debt. I sleep much better at night knowing I have two houses paid off, 4 income generating units, $1M in the bank and I owe no one anything.

yeah, sure. That'd be nice. I simply don't understand why everyone in the world isn't in your situation.

+1000

[Anonymous]

Anonymous wrote:Took a field trip to Union Market this weekend. Filled with young people looking very spiffy, drinking $5 coffees and buying things like $30 candles and locally sourced food that is 2x the price of Safeway. There was a stall there selling $200+ Japanese knives. All this 'everyday luxury' is killing you guys.

Guess that's why all the "working poor" in rural America can't afford anything either: They're busy blowing it on $5 coffees and smelly candles.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Took a field trip to Union Market this weekend. Filled with young people looking very spiffy, drinking $5 coffees and buying things like $30 candles and locally sourced food that is 2x the price of Safeway. There was a stall there selling $200+ Japanese knives. All this 'everyday luxury' is killing you guys.

Guess that's why all the "working poor" in rural America can't afford anything either: They're busy blowing it on $5 coffees and smelly candles.

Yep. If only they would stop buying caviar with their foodstamps.

OP you've cracked the case.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Took a field trip to Union Market this weekend. Filled with young people looking very spiffy, drinking $5 coffees and buying things like $30 candles and locally sourced food that is 2x the price of Safeway. There was a stall there selling $200+ Japanese knives. All this 'everyday luxury' is killing you guys.

Guess that's why all the "working poor" in rural America can't afford anything either: They're busy blowing it on $5 coffees and smelly candles.

Yep. If only they would stop buying caviar with their foodstamps.

OP you've cracked the case.

OP may be off regarding buying a home and paying for college (those are not millenial issues--those are struggling middle class issues), but he/she is on to something...
There is not enough prioritization when young people start making money. Too often luxury items are confused with or are treated as daily necessities. One example: my niece (millenial) just moved back home--but she is leasing a car! I suggested she buy a daily driver for $2k and forget the monthly payment. Living in her parents' home while driving a jeep looks better to her than sharing an apartment and driving a 15 year old honda.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I graduated from college in the early 90s and no one was buying houses right out of college.

Everyone either had roommates, or was married. Some people stillmlived with their parents.

The homes were not single family homes in hip expensive neighborhoods. They were suburban apartments or town houses for those who wanted a little nicer homes, or dives in the city.

I don't know why millenials aren't doing the same, ie getting roommates and living in less than ideal starter apartments just like everyone else. I think a lot of their housing issues are because they have a warped hgtv idea of what their first place should look like, and think they deserve more so they just decide to live with mom and dad instead so they have fun money and nice things.

I have no idea why they are too irresponsible topay off their college loans.

They might be educated, but they failed at basic consumer math when they chose to take out these exceptionally expensive loans for degrees that aren't marketable and from overpriced expensive universities.

They should not get their debt forgiven. That is unfair to everyon who met their debt obligation or who made better, more responsible choices.

Most millenials ARE living with roommates, or living at home with their parents to save money.

My loans will be forgiven in 5 years. No I did not go to an overpriced university. I went to an inexpensive law school and graduated with $70k in loans that I couldn't pay off because the job was shit (thanks to those who crashed the economy while I was in college buying homes they couldn't afford or didn't have the income to purchase thanks to no accountability!), and the interest rates were high so my debt has doubled while I've been working a low paying job. Yes I will use the public program that is available so that my loans go away as soon as I qualify. The government is what caused the problem, and the government is going to fix it.

BTW, I'm a single mom (and DV survivor), and I live in a neighborhood of DC that has not gentrified, in my own modest home that I purchased using the low income tax abatement and a down payment assistance program. I'm going to use the funds available to me to make my life better and more stable. Not only that, I'm going to artificially depress my AGI until my loans are discharged (by contributing a higher than average amount to my 401k) so that my loans payments stay low. I figure my 70 year old self will thank me in about 35 years.

I figure if this country elected a person who is "smart" enough to figure out the loopholes so they don't have to pay any taxes, I can play games with my money too.

No.

You caused this problem, not the government.

You are the one who chose to take out these loans. You are the one who picked your major. You are the one who picked your school.

Why did you take out $75K of loans for college? Why didn't you do two years at NOVA community college? Why didn't you pick out a less expensive college or a marketaboe degree like accounting or a stable, in demend degree like teaching?

These are all choices you made. Why should we the taxpayers pay off your loans that you freely took out on your own?

[Anonymous]

Anonymous wrote:

Anonymous wrote:I graduated from college in the early 90s and no one was buying houses right out of college.

Everyone either had roommates, or was married. Some people stillmlived with their parents.

The homes were not single family homes in hip expensive neighborhoods. They were suburban apartments or town houses for those who wanted a little nicer homes, or dives in the city.

I don't know why millenials aren't doing the same, ie getting roommates and living in less than ideal starter apartments just like everyone else. I think a lot of their housing issues are because they have a warped hgtv idea of what their first place should look like, and think they deserve more so they just decide to live with mom and dad instead so they have fun money and nice things.

I have no idea why they are too irresponsible topay off their college loans.

They might be educated, but they failed at basic consumer math when they chose to take out these exceptionally expensive loans for degrees that aren't marketable and from overpriced expensive universities.

They should not get their debt forgiven. That is unfair to everyon who met their debt obligation or who made better, more responsible choices.

Most millenials ARE living with roommates, or living at home with their parents to save money.

My loans will be forgiven in 5 years. No I did not go to an overpriced university. I went to an inexpensive law school and graduated with $70k in loans that I couldn't pay off because the job was shit (thanks to those who crashed the economy while I was in college buying homes they couldn't afford or didn't have the income to purchase thanks to no accountability!), and the interest rates were high so my debt has doubled while I've been working a low paying job. Yes I will use the public program that is available so that my loans go away as soon as I qualify. The government is what caused the problem, and the government is going to fix it.

BTW, I'm a single mom (and DV survivor), and I live in a neighborhood of DC that has not gentrified, in my own modest home that I purchased using the low income tax abatement and a down payment assistance program. I'm going to use the funds available to me to make my life better and more stable. Not only that, I'm going to artificially depress my AGI until my loans are discharged (by contributing a higher than average amount to my 401k) so that my loans payments stay low. I figure my 70 year old self will thank me in about 35 years.

I figure if this country elected a person who is "smart" enough to figure out the loopholes so they don't have to pay any taxes, I can play games with my money too.

Good for you PP. Rooting for you.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I graduated from college in the early 90s and no one was buying houses right out of college.

Everyone either had roommates, or was married. Some people stillmlived with their parents.

The homes were not single family homes in hip expensive neighborhoods. They were suburban apartments or town houses for those who wanted a little nicer homes, or dives in the city.

I don't know why millenials aren't doing the same, ie getting roommates and living in less than ideal starter apartments just like everyone else. I think a lot of their housing issues are because they have a warped hgtv idea of what their first place should look like, and think they deserve more so they just decide to live with mom and dad instead so they have fun money and nice things.

I have no idea why they are too irresponsible topay off their college loans.

They might be educated, but they failed at basic consumer math when they chose to take out these exceptionally expensive loans for degrees that aren't marketable and from overpriced expensive universities.

They should not get their debt forgiven. That is unfair to everyon who met their debt obligation or who made better, more responsible choices.

Most millenials ARE living with roommates, or living at home with their parents to save money.

My loans will be forgiven in 5 years. No I did not go to an overpriced university. I went to an inexpensive law school and graduated with $70k in loans that I couldn't pay off because the job was shit (thanks to those who crashed the economy while I was in college buying homes they couldn't afford or didn't have the income to purchase thanks to no accountability!), and the interest rates were high so my debt has doubled while I've been working a low paying job. Yes I will use the public program that is available so that my loans go away as soon as I qualify. The government is what caused the problem, and the government is going to fix it.

BTW, I'm a single mom (and DV survivor), and I live in a neighborhood of DC that has not gentrified, in my own modest home that I purchased using the low income tax abatement and a down payment assistance program. I'm going to use the funds available to me to make my life better and more stable. Not only that, I'm going to artificially depress my AGI until my loans are discharged (by contributing a higher than average amount to my 401k) so that my loans payments stay low. I figure my 70 year old self will thank me in about 35 years.

I figure if this country elected a person who is "smart" enough to figure out the loopholes so they don't have to pay any taxes, I can play games with my money too.

No.

You caused this problem, not the government.

You are the one who chose to take out these loans. You are the one who picked your major. You are the one who picked your school.

Why did you take out $75K of loans for college? Why didn't you do two years at NOVA community college? Why didn't you pick out a less expensive college or a marketaboe degree like accounting or a stable, in demend degree like teaching?

These are all choices you made. Why should we the taxpayers pay off your loans that you freely took out on your own?

How is that any of your business? I love the gall of all the SAHMs on here who fuss about school pyramids and want their children to go to the best schools to the point of putting themselves in severe mortgage debt, but someone else decides to go a college/university and increase their education - its all you should have gone to a CC!!

[Anonymous]

I'm an older millennial. I have worked like a slave, saved every dime, and now own a successful business and a $2.5m house. And, no, mommy & daddy didn't pay for it. OP, Go back to your cheesy McMansion in McLean and stick your head in a toilet bowl.