Re: Out of the mouths of babes ( or Millennials)

Georgiagrama · ‎03-19-2010

Well, I am old, and the way I see it, the millennials are in for a big, big, shock when they reach my age. You can't reason with them, they haven't seen both sides of anything. They have only seen the "entitled" side. You know, the side where the parents worked so hard to make sure the child had all the bells and whistles necessary to make them happy in this "gimme, gimme" world.

Thankfully, our home is paid for. If we had to pay rent today I know that we would be going without other things. Rent is ridiculously high for a decent place.

My daughter and her husband were looking at homes to buy. They both have good jobs that pay quite well and could afford a really nice, large, new home. I advised them to buy a home that the payment was close to the rent they were paying, and affordable on one salary. They found a lovely home in a safe, secure subdivision and have been able to afford the upgrades they wanted. They aren't "house poor" and eventually, they may move on to a $300,000.00 home, but, you never know what life will throw at you. At least, if one of them were to get seriously ill, or lose their job, the house payment is one they could manage and they would not be worried about being evicted.

CLEM · ‎03-09-2010

@Abrowneyegirl wrote:
We were out to dinner with friends who just sold there home and had been happy to have sold it for over $100,000 more than they paid until ..............their son who is a very bright guy in the finance world ran the numbers.
Mind you their son is a millennial who makes a VERY good living and is very against the "shackles of homeownership" although he does invest in commercial real estate on the side.

He ran the numbers of what his parents spent on:
taxes
interest on the loan
up-keep- new hot water tank, new roof, appliances
landscaping/yard care
general maintenance
Etc.....

and of course they are in the "hole" there is no actual profit.

Their son and his friends can not comprehend the idea of buying something that you have to continually pay taxes on every year you own it, in addition to all the other on-going expenses. From a financial business model it does not make sense to them.

It was an interesting and sobering perspective on how times are changing.

Yes, but isn't that the house where he grew up? Did he calculate housing expenses for a family for ???? years and factor all that in?

CAcableGirl2 · ‎06-03-2010

@Georgiagrama That was great advice to your daughter/husband. Don't always count on two incomes, after all, they may want children some day and decide that one needs to stay home. It's very expensive to pay for child care and sometimes it just makes better financial sense for one of the parents to put their career on hold for a few years until the child reaches school age - if they even choose to go back to work.

If individuals like to travel and put their funds into experiences instead of a big home, then I wouldn't recommending being "house poor". I am in that situation with a bigger house then I need, but absolutely fine with it, since I didn't want to move after a separation, I adore my house, and am more then willing to write that mortgage check each month.

I think many of the "millennial" adults expect to have the big beautiful home that their parents have, not realizing the small dumpy apartments they may have had along the way before the children came and they became more financially stable. I call that the "everyone gets a trophy" syndrome.

......You look like I need a drink.....

Preds · ‎12-17-2012

I prefer being "Old School". I want to own my car, own my home and own anything else in my path. Yes, we keep it up and there are costs to do so, but ... it's ours. If and when the day comes, the home, car, etc. may be what keeps us alive and pay for in a nursing home. It may be the monies needed for our children to either sale or keep.

It gives us pride in what we worked for all these years. Pride. We worked for it and own it. Money wasn't just given to someone else for rentals.

My stepfather never bought a car in his life. He rented new ones every year because he wanted the new and improved. I've got friends that never bought a house for the same reason. It's not new. People have been doing it for years. It all boils down to your lifestyle and what you want.

I like being an owner. I've also tried to get my mother to sell and be a renter. She can't continue to do the upkeep and I can't help her. I beg her to sell now and go where she wants. She won't do it because she wants something to leave for me. Even when I tell her that I don't, won't and never will want her house. Ticks her off, but not enough for her to sell and take care of herself. LOL I think she's keeping the house now just to tick me off.

Fate whispers to her, "You cannot withstand the storm." She whispers back, "I am the storm."

Shawnie · ‎03-10-2010

you can jigger those figures a number of ways. I invested in an asset that happened to be my house. And yes the bank received interest cause they don't give away money. Yes I have to keep up the house. But I bought when my income was low and increasing and I have been living on dollars bought then. And for the last ten years the principle has been paid. Just taxes and upkeep. Right now if I sell my profit will surpass the RE taxes and improvements etc. But I did not make wholesale additions etc. Besides pride of ownership I think the advantage to ownership is paying when you can afford it and once you retire and your income is lower most people at least used to shoot for payoff. Renters can expect the same flat outflow payment over their life so they must figure how to maintain income to pay for that rent, i.e. does this blot out retirement for them?? They don't strike me as a group of savers.

BTW, and I don't recall who posted this. But a grown daughter asking their mother to buy them a house??? Shame.

SahmIam · ‎04-16-2010

Two things:

1) The county you live in makes more money off of apartments then they do homesites (be it townhouses or single family). In many places, the county pushes for condos over townhouses and single family because they place far more people in the same amount of space, therefore making more money.....it's called high density living. The push to zone land from "houses" to "high density units" is big everywhere. Keep an eye on zoning hearings; attend them as you can prevent it if you're lucky.

2) As I was told by someone whose age makes them a millennial and who has no interest in buying a house:

"why should I buy house? I'm gonna get my parents once they die."

And those in the same age group all nodded in agreement and explained they see it that way as well. Guess you can add that to the list as well.

jeanlake · ‎03-10-2010

@missy1 Thank you for saying life is tough and we shouldn't judge. So many 'all or nothing' statements are made on posts. The majority of millennials I know have good qualities. Much more interest in volunteerism than my generation.

"I took a walk in the woods and came out taller than the trees." Henry David Thoreau

Sooner · ‎03-10-2010

@SahmIam wrote:
Two things:

1) The county you live in makes more money off of apartments then they do homesites (be it townhouses or single family). In many places, the county pushes for condos over townhouses and single family because they place far more people in the same amount of space, therefore making more money.....it's called high density living. The push to zone land from "houses" to "high density units" is big everywhere. Keep an eye on zoning hearings; attend them as you can prevent it if you're lucky.

2) As I was told by someone whose age makes them a millennial and who has no interest in buying a house:

"why should I buy house? I'm gonna get my parents once they die."

And those in the same age group all nodded in agreement and explained they see it that way as well. Guess you can add that to the list as well.

And they are going to be SOOOOO surprised when mom lives to 97 and they are taking care of her and she won't move out of the house. . .

ccassaday · ‎10-21-2010

@Georgiagrama wrote:
Well, I am old, and the way I see it, the millennials are in for a big, big, shock when they reach my age. You can't reason with them, they haven't seen both sides of anything. They have only seen the "entitled" side. You know, the side where the parents worked so hard to make sure the child had all the bells and whistles necessary to make them happy in this "gimme, gimme" world.

Thankfully, our home is paid for. If we had to pay rent today I know that we would be going without other things. Rent is ridiculously high for a decent place.

My daughter and her husband were looking at homes to buy. They both have good jobs that pay quite well and could afford a really nice, large, new home. I advised them to buy a home that the payment was close to the rent they were paying, and affordable on one salary. They found a lovely home in a safe, secure subdivision and have been able to afford the upgrades they wanted. They aren't "house poor" and eventually, they may move on to a $300,000.00 home, but, you never know what life will throw at you. At least, if one of them were to get seriously ill, or lose their job, the house payment is one they could manage and they would not be worried about being evicted.

That is such good advice. I have said the same thing. You can always save that second income for retirement or a job loss. So many times a yoing couple starts having kids and the wife wants to quit. Well if you get a house you can afford on one income you can stash most of thr other away and learn to live on one before the baby hits and you quit. Dave Ransey reccommends no more then 25% of your monthly income on a house payment and a 15 y mortgage if you can.