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Honored Contributor
Posts: 9,070
Registered: ‎06-08-2016

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

There's profit then there's profit.

 

In the case of selling a home for $100k over what they originally paid, to NOT show a profit by itemizing costs over the years means you won't pay taxes on the profit at the time of the sale.

 

I don't have a problem with anyone who does not want to be "shackled" by home ownership.    Those of us who don't have the assets to invest and make money in other ways, use our home as our asset.    There's nothing wrong with someone using a different method to accumulate assets.   There are many young people who don't want to spend their weekends doing landscaping or other home maintenance chores.

 

I always cringe when I hear of a young couple, right out of college with at least some debt then buying a huge first home.    Back in my day, your first home was usually small and inexpensive and you traded up to you dream home and college was a lot cheaper, you could pay as you go.

Honored Contributor
Posts: 8,021
Registered: ‎03-09-2010

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

My husband always used to say to me, if something happens, sell the house and find an apartment.

 

On a month to month basis, it's a lot less expensive for me to live here than in an apartment.

Esteemed Contributor
Posts: 6,721
Registered: ‎02-22-2015

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

@Abrowneyegirl  So this brilliant guy thinks it makes more sense (cents) to accumulate rent receipts all of his life? Doesn't he realize his parents have been writing off their taxes for years and years? If their home is paid for, it has been an inexpensive way to live IMO. Not sure he is a "brilliant" as you seem to think. Outright home ownership is the single best investment most people make. 

 

You mentioned he owns commercial rest estate. That can become dicey. Our family has been in that area of real estate. When large businesses go under or move, it often takes a very long time to secure new tenants for those empty buildings/spaces. Hope he has the financial ability to tide him over if he has to pay the mortgage, taxes, utilities and maintenance during such a vacancy.

I couldn't live as well as I do if I were paying rent. A home this size and in this location would be cost-prohibitive to lease for most people. Actually, our HOA doesn't allow homes to be rentals!

 

Enjoy your home. There is a reason builders continue to build new subdivisions all over the country and young families are buying. The American dream of home-ownership is alive and well IMO. 

Honored Contributor
Posts: 26,270
Registered: ‎03-10-2010

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

These kids don't  understand it costs to live.  They have lived free on mom and dad for so long they don't understand life has stages and plans.

 

You pay rent forever.  You can eventually pay a house off.  Yes, it costs to maintain it  Guess what?  LIFE ISN"T A FREE RIDE.  That's what they don't understand.  Also, you may not be able to live in the house of your dreams; you may not have everything you want fall out of the sky.  

 

Plan and save are two words they don't get. 

Respected Contributor
Posts: 3,079
Registered: ‎06-03-2010

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

I don't want to live in a rented house year over year and be at the mercy of a landlord, who one day decides to sell and you are having to move.

 

Of course owning a home costs money, so does owning a car, having children, having a job, and pretty much everything you do.  

 

I have over 300K in equity so how does it make sense that I rent year over year - using his logic,  I would have nothing vs. 300K.....that is a no-brainer to me.

 

He sounds like a wet blanket to me and is trying to justify his personal decision to rent instead of buy.



......You look like I need a drink.....
Honored Contributor
Posts: 15,198
Registered: ‎06-17-2015

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

[ Edited ]

@BirkiLady wrote:

@Abrowneyegirl  So this brilliant guy thinks it makes more sense (cents) to accumulate rent receipts all of his life? Doesn't he realize his parents have been writing off their taxes for years and years? If their home is paid for, it has been an inexpensive way to live IMO. Not sure he is a "brilliant" as you seem to think. Outright home ownership is the single best investment most people make. 

 

You mentioned he owns commercial rest estate. That can become dicey. Our family has been in that area of real estate. When large businesses go under or move, it often takes a very long time to secure new tenants for those empty buildings/spaces. Hope he has the financial ability to tide him over if he has to pay the mortgage, taxes, utilities and maintenance during such a vacancy.

I couldn't live as well as I do if I were paying rent. A home this size and in this location would be cost-prohibitive to lease for most people. Actually, our HOA doesn't allow homes to be rentals!

 

Enjoy your home. There is a reason builders continue to build new subdivisions all over the country and young families are buying. The American dream of home-ownership is alive and well IMO. 


@BirkiLady  You have that right.  Houses are going up all over the place in my neck of the woods.  I don't know who is buying them but I would assume a younger couples/families.

 

 

""But tell me where do the children play"-Cat Stevens
Valued Contributor
Posts: 552
Registered: ‎03-10-2010

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

If you rent all your life, you've bought a piece of property that someone else owns. Yes, the landlord had to do the upkeep, but he chooses what he will repair and what can wait. Sometimes that depends on what kind of renter you are.

Respected Contributor
Posts: 3,529
Registered: ‎03-15-2010

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



One of the angles to keep in mind that many of the mil. move and relocate at a whim.  New company start-ups, buy outs.....

They pick up and move - owning a home really does not fit into that model.

My BF has 2 sons on a MD and one researcher in the past 4 years one has moved 3 times, one has moved twice.  

My BF so much wants to retire and nove to be near her children but she is at a loss!  

If you want to see the world and take advantage of opportunities I guess you have to be flexible and mobile.

 

(personally I HATE moving!!!!)

Respected Contributor
Posts: 3,913
Registered: ‎03-19-2010

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

I am wondering if he calculated into his equation what the yearly cost of a comparable rental would have been for all those years.

Honored Contributor
Posts: 62,786
Registered: ‎03-10-2010

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

[ Edited ]

I wonder if their oh so astute son when doing his calculations also figured in the amount they'd have had to pay to rent something to live in, you know, to provide shelter and, as it were, to raise him... and for which there would have been absolutely no return on their 'investment' at all... But then, what am I thinking. I'm sure he did, because like so many millennials he, of course, knows best... That bit of snark aside, I have come to agree that at certain points in life and for some people there is no real advantage to home ownership... If I leave my current residence I will probably rent...

 

 


In my pantry with my cupcakes...