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

[Anonymous]

^ 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.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I tend to agree with much of this. The millennials I know almost all live with their parents because (supposedly) they're saving up money, but they lack for nothing (new iPhones, clothes, cars) and take ski trips to Aspen. I have a hard time imagining that their bank accounts are flush.

One is actively looking for an apartment -- with his mom, of course -- and has turned down every option for some reason: too small, too dark, the kitchen isn't updated, too loud, too close to public housing, too far from mommie and daddy. He wants to get a roommate, but he refuses to share a bathroom and his mother agrees that sharing a bathroom with "a stranger" is unacceptable for her snowflake.

Can't exactly weep for them.

Then her snowflake needs to just stay with his mother.

That appears to be the plan. FYI, he turns 29 next month.

Logical result of the constant emasculation of boys in schools. They are taught that every male urge they have is wrong and to be suppressed - so, now we have 29 year olds living with Mom with no job or wife/girlfriend, and no desire for either. Sad really.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Millennial here.
Bought a starter townhouse at the bottom of the market. Still had student loans. Just sold and bought our forever house. Still have student loans to pay off, but can now afford to pay them off more quickly.
Contrary to this board, many people have student loans and mortgages. It is possible.
Get off your high horse.

Forever house already? Now, you see, that is the difference between thinking wisely and prudently. You shouldn't have bought your dream house while still paying off student loans. You should have stayed in the starter home until you paid off your other loans. You are proving OP's point. Too much, too soon.

Go away, loser.

NP.

And this is exactly the problem with young people today. Somebody disagrees with you, you come up with a witty reply as this! Uneducated slobs. My point stands, your point is what? That having a big house you can barely afford and ton of debt is a way to success? I own two houses bought in cash, because I am a loser. Millenials are incapalbe of accepting any criticism as you just pointed out. One day I will meet you as you are checking out my purchases at the grocery store.

Jesus Christ you're awful.

-Gen Xer

Agree -

Amy Dacyczyn, author of the Tightwad Gazette, my personal finance bible, talked about when she was young, she felt she wasted a ton of money eating out and just having a high consumption lifestyle. Then she learned that she wanted to be more deliberate about her finances and she started her newsletter and retired young. This was 25 years ago. Young people drinking coffee at Union Market on a weekend does not seem out of the ordinary.

The bigger issue is that popular urban areas are getting really expensive for all of us and we all have to decide if we need to make a different choice about where we live. Or due to our jobs, if we even have a choice. My husband and I purchased a house in DC 15 years ago and the city has just gotten really, really expensive.

College debt is another issue. It seems absurd to be 22 and have a net worth of negative 50K.

For many (most?) Millennials drowning in student debt, there is a Boomer who did not save for their kids education.

+1000 and that boomer giving that millennial the lifestyle where spending was part of everyday life. And the parent not wanting their child to live in a "dangerous" neighborhood.

[Anonymous]

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.

+1. Doing the same thing. You cannot replace the security of being debt free. It is not the best move financially, but it has it's own psychic benefit.

[Anonymous]

Anonymous wrote:Assuming a return of 6% per year?

Let's talk in a year.

Better yet, let's talk in 5 years. 6% may be too low an estimate but I like to be conservative. But if you really think that way, you ought to pull all that money out of the stock market and buy some gold from William Devane.

[Anonymous]

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?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Millennial here.
Bought a starter townhouse at the bottom of the market. Still had student loans. Just sold and bought our forever house. Still have student loans to pay off, but can now afford to pay them off more quickly.
Contrary to this board, many people have student loans and mortgages. It is possible.
Get off your high horse.

Forever house already? Now, you see, that is the difference between thinking wisely and prudently. You shouldn't have bought your dream house while still paying off student loans. You should have stayed in the starter home until you paid off your other loans. You are proving OP's point. Too much, too soon.

Go away, loser.

NP.

And this is exactly the problem with young people today. Somebody disagrees with you, you come up with a witty reply as this! Uneducated slobs. My point stands, your point is what? That having a big house you can barely afford and ton of debt is a way to success? I own two houses bought in cash, because I am a loser. Millenials are incapalbe of accepting any criticism as you just pointed out. One day I will meet you as you are checking out my purchases at the grocery store.

Jesus Christ you're awful.

-Gen Xer

Agree -

Amy Dacyczyn, author of the Tightwad Gazette, my personal finance bible, talked about when she was young, she felt she wasted a ton of money eating out and just having a high consumption lifestyle. Then she learned that she wanted to be more deliberate about her finances and she started her newsletter and retired young. This was 25 years ago. Young people drinking coffee at Union Market on a weekend does not seem out of the ordinary.

The bigger issue is that popular urban areas are getting really expensive for all of us and we all have to decide if we need to make a different choice about where we live. Or due to our jobs, if we even have a choice. My husband and I purchased a house in DC 15 years ago and the city has just gotten really, really expensive.

College debt is another issue. It seems absurd to be 22 and have a net worth of negative 50K.

For many (most?) Millennials drowning in student debt, there is a Boomer who did not save for their kids education.

I don't agree - we have stopped funding secondary education - states and the feds. I know my parents went to Cal State schools for basically nothing.

Oh, come one. That's a change that happened over 25 years. You're saying no one saw it coming?

[Anonymous]

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?

The reduction was less than the interest, if I recall correctly.

[Anonymous]

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.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Assuming a return of 6% per year?

Let's talk in a year.

Better yet, let's talk in 5 years. 6% may be too low an estimate but I like to be conservative. But if you really think that way, you ought to pull all that money out of the stock market and buy some gold from William Devane.

If the stock market averages 6% per year over the next 5 years, I will pull all my money out and give it to you.

[Anonymous]

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.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Assuming a return of 6% per year?

Let's talk in a year.

Better yet, let's talk in 5 years. 6% may be too low an estimate but I like to be conservative. But if you really think that way, you ought to pull all that money out of the stock market and buy some gold from William Devane.

If the stock market averages 6% per year over the next 5 years, I will pull all my money out and give it to you.

Right. 6% is such an inflated annualized return. How about this: I am confident that my 35k will have grown to more than 38k in 5 years. If so, my choice paid off. Yes there's risk that I could lose money or be flat in 5 years - the market is risky. I'm willing to take that chance on a relatively small amount of money.

When did you purchase your two homes? I can nearly guarantee you you'd have been better off paying the minimum on a loan at 4-5% and investing the difference in an s&p index fund

[Anonymous]

I think here in DC, a lot of these Union Market-shopping hipsters having their parents footing the bills. I went to college in DC and many of my classmates still, at 30+, have parents paying their rent so that they can "afford" to work at non-profits for not much money and use what they do make as play money for international trips. It's pretty common, actually.

[Anonymous]

Anonymous wrote:I think here in DC, a lot of these Union Market-shopping hipsters having their parents footing the bills. I went to college in DC and many of my classmates still, at 30+, have parents paying their rent so that they can "afford" to work at non-profits for not much money and use what they do make as play money for international trips. It's pretty common, actually.

28 years old and I agree.

And tbh, I don't think it's that bad of a plan. That's exactly how the rich get richer.

I have several friends who's parents allowed them to take unpaid internships that have turned into prestigious, high paying jobs at Vogue, Conde Nast, etc. I also have a friend who's parents' bankrolled a fashion line for her which has been successful and has expanded into multiple cities.

I understand the jealousy, because I've felt it myself. But I mean- it makes good sense.

[Anonymous]

OP, why were you at Union Market? Just to see a new place, have a nice little outing maybe? Has it occurred to you that the people you see there perhaps also just go occasionally, as a treat? You might have seen me there having a $5 coffee and a $12 poke bowl, I've done that. Twice in all the years Union Market has been open.

You might even have lumped me in with "the Millenials" you disparage, I am that age. However, what you don't know is that I am married, have a kid, earn a reasonable living as does my spouse, am a homeowner (haven't lived in my parents home since I was 22!), and even paid off my student loans this year! So don't fret too much about my choices or financial well being, I'm doing just fine.