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

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[quote=Anonymous]This thread is depressing.  I am at the cusp of GenX and the Boomers.  I have worked for everything I had.

But, I was able to graduate college debt free.  I remember the quarter tuition payments at Va Tech was about $600.  Or, in other words, I payed about 2K/year in tuition and fees (in state).  My parents could afford that.

Today, my daughter is looking at 12K at the same school.  When I graduated, I could get a good job paying 25K; today, in my field it is 60K.  So, wages are up 2.4x, whereas tuition is 6x.

My parents payed for my tuition, I will pay for my DD's tuition.  But,  not everyone is like me.

Now, I went to graduate school (Physics).  I received a scholorship for that.  Graduated in 1994 with a PhD.

Then, my salary was 50K, today, it would be about 80K.  By the time I bought a house, I was up about 20%, or 64K, today that would be about 100K.

the house was 250K, which in those interest rates was was a 1535 which was 29% of my gross.

Today, the same house would cost 2470/mo (much lower interest rate), or 29.% of the income.

If you can buy, you are locking in the payment at that value.  I am paying about 1300/mo today for the same house.

You buy today, in 20 years, you will still pay 2470/mo.  If your career goes like mine, you will be earning 265K when you are in the mid 50's, with an affordable 2459/mo mortgage.

Then you can afford your Latte's[/quote]

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