Anonymous
Post 01/04/2017 21:32     Subject: I know why Millenials can't afford houses and pay off their student loans..
Anonymous wrote:
Anonymous wrote:This whole thread is insane. Owning a house is not the be all and end all. I would say that it's a VERY hyped up experienced and completely overrated.

Maybe these millennials are just being smart about it because they realize it's way more hassle and work than it's worth.


Sir. I own mine now and have put a LOT of money in it, but if I ever have to leave this area, I doubt I will buy again. Let someone else pay for all this ish.


advice to my parents was to sell their house and retire as renters. They made money in the markets by doubling down in 2008. Imho, housing is absurd (hope I stay afloat) but you can certainly fair well as a renter if you've got savings. There's def too much to pay for all this ish be on me.
Anonymous
Post 01/04/2017 21:30     Subject: Re:I know why Millenials can't afford houses and pay off their student loans..
OMG someone talking sense on DCUM
Anonymous
Post 01/04/2017 21:28     Subject: I know why Millenials can't afford houses and pay off their student loans..
Anonymous wrote:
Anonymous wrote:When you look at buying houses, it is best to think of it from a cash-flow perspective.

Lets say, after taxes, the house is neutral cost compared with an apartment (I do not know if this is the case today). In 30 years, no matter what happens to the price, you have paid off the mortgage. You have value.

Now, while the price of the rental usually goes up, the mortgage is constant. So, as things inflate, the percentage of my income (which inflates) going to housing drops. Today, it is 9% of my income, down from 29%....


So dumb. Do you think people who don't buy houses just let their down payment sit and gather 0% interest? Your mortgage might be constant but the tradeoff is that you are drowning in opportunity costs. There is nothing stupider than investing 30%+ of your net worth in a single asset. Most people are better off renting and investing the down payment in REITs to hedge for real estate appreciation.


This is why I used a down payment assistance program (in DC it's available to anyone making under $125k, assets didn't matter). Buying was CHEAPER than renting for me, which is why I did it as soon as I did. I had extra cash at closing too which went to the PMI, so I don't pay that monthly either (I used the low income tax abatement, which meant the sellers transfer taxes were paid to me and provided the extra cash). And the sellers paid my closing costs.

I came out ahead I think. And I can save more money now because my housing costs are lower than they otherwise would be.
Anonymous
Post 01/04/2017 21:20     Subject: I know why Millenials can't afford houses and pay off their student loans..
Anonymous wrote:When you look at buying houses, it is best to think of it from a cash-flow perspective.

Lets say, after taxes, the house is neutral cost compared with an apartment (I do not know if this is the case today). In 30 years, no matter what happens to the price, you have paid off the mortgage. You have value.

Now, while the price of the rental usually goes up, the mortgage is constant. So, as things inflate, the percentage of my income (which inflates) going to housing drops. Today, it is 9% of my income, down from 29%....


So dumb. Do you think people who don't buy houses just let their down payment sit and gather 0% interest? Your mortgage might be constant but the tradeoff is that you are drowning in opportunity costs. There is nothing stupider than investing 30%+ of your net worth in a single asset. Most people are better off renting and investing the down payment in REITs to hedge for real estate appreciation.
Anonymous
Post 01/04/2017 21:16     Subject: I know why Millenials can't afford houses and pay off their student loans..
Anonymous wrote:I am not a millenial and know the value of property in a good location. Our house has been nothing but a cash cow and continues to appreciate. Best investment we have ever made and beats the stock market any day.


Thanks for proving my point! We already know you are not a millennial. Your house is only a good investment because you were able to buy before he market took off and took advantage of cheap financing options that crashed the economy.
Anonymous
Post 01/04/2017 18:20     Subject: I know why Millenials can't afford houses and pay off their student loans..
I am not a millenial and know the value of property in a good location. Our house has been nothing but a cash cow and continues to appreciate. Best investment we have ever made and beats the stock market any day.
Anonymous
Post 01/04/2017 18:13     Subject: I know why Millenials can't afford houses and pay off their student loans..
Anonymous wrote:This entire thread is crazy. Millennials are not buying houses because we saw the housing market crash and realized that it is silly to be house poor and that houses are not good investments. We are not paying off student loans because we got them after the recession and the interest rates are so low that they are not a priority.


They never have been. They are a roof over your head (which most people consider a necessity) and in the long run are much cheaper than renting. They for the most part hold their value, and occasionally reward or screw the buyer with outsize gains or losses.
Anonymous
Post 01/04/2017 17:53     Subject: I know why Millenials can't afford houses and pay off their student loans..
Anonymous wrote:lol You people are insane.

The vast majority of the people buying pre-recession/pre boom were Gen Xers/Boomers. This is mathematical, just plain fact. What other generation was buying up real estate at inflated prices and using their homes as ATMs or being self styled "flippers"? The Silent Generation? WHO?


Hmmm. Thanks to home ownership for all government policies the ATM ers and no docs were in the mix. HAMP includes investment properties-owner occupied only? https://www.makinghomeaffordable.gov/steps/pages/step-2-program-hamp.aspx

https://www.washingtonpost.com/news/where-we-live/wp/2016/07/21/d-c-to-reopen-foreclosure-prevention-program/?utm_term=.db597f9ad29f

Now onto the high cola DC area. Do you realize how the Feds /Obama are screwing you for mortgage ins deductions ? https://www.washingtonpost.com/realestate/mortgage-deduction-for-middle-income-homeowners-expired-at-the-end-of-2016/2017/01/03/e0369600-cc3e-11e6-b8a2-8c2a61b0436f_story.html?tid=pm_realestate_pop&utm_term=.352f45ffc930
Anonymous
Post 01/04/2017 17:42     Subject: Re:I know why Millenials can't afford houses and pay off their student loans..
I know a bunch of Millennials who have bought houses. I think the reason it's not happening yet is that Millennials tend to live in cities where the homes are more expensive, so they are just buying them later. Once they start having kids (also later) I think you'll start to see more settling down.

Signed,
Millennial home owner
Anonymous
Post 01/04/2017 17:22     Subject: I know why Millenials can't afford houses and pay off their student loans..
When you look at buying houses, it is best to think of it from a cash-flow perspective.

Lets say, after taxes, the house is neutral cost compared with an apartment (I do not know if this is the case today). In 30 years, no matter what happens to the price, you have paid off the mortgage. You have value.

Now, while the price of the rental usually goes up, the mortgage is constant. So, as things inflate, the percentage of my income (which inflates) going to housing drops. Today, it is 9% of my income, down from 29%....
Anonymous
Post 01/04/2017 17:00     Subject: I know why Millenials can't afford houses and pay off their student loans..
This entire thread is crazy. Millennials are not buying houses because we saw the housing market crash and realized that it is silly to be house poor and that houses are not good investments. We are not paying off student loans because we got them after the recession and the interest rates are so low that they are not a priority.
Anonymous
Post 01/04/2017 16:32     Subject: I know why Millenials can't afford houses and pay off their student loans..
Anonymous wrote:lol You people are insane.

The vast majority of the people buying pre-recession/pre boom were Gen Xers/Boomers. This is mathematical, just plain fact. What other generation was buying up real estate at inflated prices and using their homes as ATMs or being self styled "flippers"? The Silent Generation? WHO?


Lol so true, and these are the greedy idiots going on about personal responsibility and restraint.
Anonymous
Post 01/04/2017 15:56     Subject: I know why Millenials can't afford houses and pay off their student loans..
lol You people are insane.

The vast majority of the people buying pre-recession/pre boom were Gen Xers/Boomers. This is mathematical, just plain fact. What other generation was buying up real estate at inflated prices and using their homes as ATMs or being self styled "flippers"? The Silent Generation? WHO?
Anonymous
Post 01/04/2017 13:25     Subject: I know why Millenials can't afford houses and pay off their student loans..
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:Remember when you took out that HELOC? When you didn't actually save for your kids' education but instead thought of your house as an ATM?
As crazy as you may think it, the Millenials did NOT cause the housing crash. They did not dissolve your retirement funds. They were too young to buy when all that went down.
You may be bitter and have a few more years of wear, but you mid-forty somethings and up are not the geniuses you think you are.


It took a million pages, but finally someone points this out.

Older Gen Xers and crusty ass Boomers are very judgmental and smug for a group that literally caused one of the greatest financial recessions in our lifetime from being greedy, materialistic and living completely beyond their means.

-Younger Gen Xer


We oldsters are not responsible for the ludicrous lending to unqualified borrowers. That was PC-homes for all. Don't slam the group that believed in 10-20+% down and fixed rate 30 year mortgages. No funk.


Actually you are. Those bankers and brokers dividing up those bonds and creating the greatest recession and housing slump were not our current 1980+ born generation. That was all you.
Those younger kids were just beginning to enter and graduate college when you fucked up the entire economy.


Different PP here. You're as bad as the OP. OP paints an entire generation (Millennials) as irresponsible because they prioritize small luxury items and services over paying down debt and saving for life milestones. You paint two entire generations (Boomers and Gen-X) for the economic recession that was created by a portion of greedy bankers and brokers and people who bought more than they could afford, or listened to the bankers and brokers who told them they could afford more. The funny thing is that the victims in both situations (the millennials that OP castigates and the older overspenders that you blame) are the same type of people. These are people who spend on the present instead of saving for the future.

Essentially both of you are flagging the same type of people, showing that they really do span generations. There are savers and spenders in all generation. As I said several pages ago, the only difference I see is that there may be slightly spenders than savers now than there were in prior generations.


I suggest you read 'Reckless Endangerment' by Gretchen Morgenson (Ny Times reporter). It lays out exactly how Fannie and Freddie destroyed the housing market. They were run by a bunch of Clinton-era political hacks that were lining their pockets. It was not the banks, it was Fannie and Freddie. They MADE the market for mortgages - they have near monopoly control on what types of mortgages were made and the underwriting standards for them.
Anonymous
Post 01/04/2017 12:04     Subject: I know why Millenials can't afford houses and pay off their student loans..
Anonymous wrote:This whole thread is insane. Owning a house is not the be all and end all. I would say that it's a VERY hyped up experienced and completely overrated.

Maybe these millennials are just being smart about it because they realize it's way more hassle and work than it's worth.


Sir. I own mine now and have put a LOT of money in it, but if I ever have to leave this area, I doubt I will buy again. Let someone else pay for all this ish.