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

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]The more you talk about opportunity cost, the more I think you live your life leveraged to the teeth.

That's fine when all is well -- you're employed, you're healthy, the market is going up.

What happens when any of those circumstances changes?[/quote]

Mortgage = leveraged to the teeth. What's your point again? The point of renting is to allow flexibility in your overhead so that when circumstances change, you're not dealing with foreclosure. Only a dumb Millennial basher would completely mix up the concepts and celebrate the idea of taking on an enormous amount of debt. [/quote]

You've made your point PP (this is NP from above btw).

Not everyone gets a mortgage that leverages themselves to the teeth. My mortgage payments are several hundred LESS than what I was paying in rent. Now I'm getting closer to being able to max out my TSP! It's saving me money, even as I increase my savings and my ability to invest.

Clearly what you are doing is working for you - that's what it needs to do. What I'm doing is working for ME (the person it needs to work for!), and PP with a good job and poor health - sounds like he's very happy with where (s)he is in life as well. Which is excellent.

[b]Now stop telling them they have no idea what they're doing, because you're acting as though you are the ONE person who knows anything about finances.[/b] You're not. There are many theories on how to invest, and each person needs to do it in a way that works for them and their willingness to take risks, and there is more than one way to do it "right".[/quote]

In case you haven't noticed, this is an entire thread making fun of Millennials for not buying houses. Who's the one pretending like there's only one way to spend money? The sweet justice in all of this is that all of you who think your houses are great investments are the ones who will be underwater when Millennials don't buy into the same  American housing scam. Your house is only worth what Millennials are willing to pay.[/quote]

You are sure passionate about this!   [b]Good luck finding a good deal on rent if millennials can't afford and don't want to buy. [/b] [/quote]

Huh? Do you not understand how demographics and economics works? Millennials are staying longer in dense urban living situations and having children later or not at all, which means that the current crop of housing will be in oversupply as kids leave the nest and people need to downsize. People like you and the other poster will be looking to moving to an area with a lower COL, but you are convinced that you have made a great investment and will not be willing to sell at a lower ROI than you imagined. You will then rent out your houses hoping to ride out a short-term dent in the housing market, but again there will be oversupply as there will not be many Millennials looking to live in such big houses, so rental prices will be cheap.[/quote]

Seriously you sound nutso.  It's completely fine that you think renting is the way to go and have no interest in homeownership.  You do you.  It would probably be a better use of your time to focus on your investments and managing them. [/quote]

It's amazing how the Millennial bashers get all excited about Millennials not being able to pay off their student loans or afford houses, but when presented with a real argument about how these trends will affect the value of THEIR HOUSE, suddenly it's "nutso" and no one wants to discuss anymore. Lol.[/quote]

I bought my Capitol Hill rowhouse in 1995 for $141K. It's 2 blocks from Eastern market, and I paid it off 5 years ago. (Been renting both units out for 15 years -- so technically my tenants paid it off). I plan to keep it as an income-generating asset till I die, but even if I decide to sell at some point, I think I'll be fine.

But thanks for your concern. Go enjoy your market returns. Nothing could possibly go wrong there, particularly with OPEC cutting off oil production, the health care industry in free fall, and Trump slapping 15% import taxes on pretty much everything everyone buys.[/quote]

Yes, nothing can possibly go wrong with your investment that is not only at the mercy of the global economy and the Trump economy, but literally the economy of a single block in a single neighborhood. And I mean, none of your tenants will be affected by things like market returns, OPEC, healthcare, or import taxes, right?[/quote]

You're right.    We are all screwed.   Might as well lever up and buy that beautiful home.  See how we've come full circle?  [/quote]

I don't see your point at all. In fact, you seem willfully ignorant[b]. Millennials today are smart not to buy into housing [/b]because housing in this area is seriously overpriced. There is no reason that a 2BR house should require a $100K downpayment!! That downpayment is much better used diversifying into a wide variety of investments that can be hedged against shifts in the economy rather than poured into a SINGLE investment at the mercy of both geographic AND market forces. [/quote]

[b]Plenty of millennials own real estate.  [/b]

Fwiw, I made a downpayment on a house and I invest heavily in the market.  It doesn't have to be one or the other.  If you make enough money you can do both.   [/quote]

For the love of god, we are talking about MACRO trends, so will you dumbass posters who keep posting about yourself please make an exit? See Figure 31: https://www.whitehouse.gov/sites/default/files/docs/millennials_report.pdf[/quote]

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