Boomers cant afford they houses. boo hoo

Discussion in 'General Discussion' started by internetman, Jun 17, 2019.

  1. deadeyededric

    deadeyededric Well-Known Member

    Dec 12, 2009
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    Prune juice too!
     
  2. Sigmapolis

    Sigmapolis Well-Known Member
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    The MID was still a silly idea. Different types of debt should not be privileged because of the political connections of those owning/selling the assets behind it.

    All it did was allow for sellers (and real estate agents selling on commission) to ask for higher purchase prices because they knew buyers would be more willing and able to finance higher and higher levels of debt because Schedule A would help them out.

    Reducing the subsidies to an overstuffed market is good policy, even if it means some pain unwinding the overstuffed market (though inevitable no matter what you do).
     
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  3. isufbcurt

    isufbcurt Well-Known Member

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    Claim it as a rental property, make up a rent income amount, depreciate it and deduct all the costs associated.

    PM me your address so I can send you a tax consulting bill.
     
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  4. JeanValette

    JeanValette Active Member

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    I'm planning on saving for a houseboat in 10-20 years, so I can float down every summer from Minnesota to Iowa on I-35. I'll admire the lowland rice fields on the way.
     
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  5. ClonesFTW

    ClonesFTW Well-Known Member
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    As someone in banking who reviews financials daily... There are lots of people with $400k homes going nearly paycheck to paycheck.
     
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  6. internetman

    internetman Well-Known Member

    Aug 21, 2012
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    well they need that $860/mo suv. sarah just got a new tahoe
     
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  7. Kagavi

    Kagavi Well-Known Member

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    To clarify: California's top tax bracket is 12.3%, so rounded up, 13% on state income taxes means your AGI is at least $1,145,960+ (married, jointly), or $572,980+ (single).

    That's quite the retirement income.

    But for normal people in California, if you make a normal combined salary as a married couple in California ($112,170 - $572,984), the tax bracket is 9.3%.

    Compared to Iowa's 8.98%.

    Not to mention the arbitrage opportunities that exist with the salary differences in certain industries.

    Living by the beach is definitely worth the 0.32% difference in income tax.
     
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  8. knowlesjam

    knowlesjam Well-Known Member

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    Check out this site if interested in Central-Southern Arizona...

    https://www.cap-az.com/

    The Central Arizona Project is key to the area's water supply. Fresh water is the future battleground in the Southwest...more heat...more water use...less fresh water...repeat.
     
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  9. Sigmapolis

    Sigmapolis Well-Known Member
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    Whiskey is for drinking.
    Water is for fighting over.
     
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  10. Cyched

    Cyched Well-Known Member

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    Back in my day we didn’t drink water. Damn millennials.

    [​IMG]
     
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  11. NorthCyd

    NorthCyd Well-Known Member

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    [​IMG]
     
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  12. mdk2isu

    mdk2isu Well-Known Member

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    FIFY
     
  13. DurangoCy

    DurangoCy Well-Known Member

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    What's a typical one? No savings, no taxable accounts, and no IRAs?

    I'm kind of have to trick myself into saving, so I keep my savings account light, but I have a taxable investment account is pretty sizeable. I assume all the doom and gloom articles are looking for ways to spin the data in the worst light possible and we can't possible be that dumb as a county.

    Are there really that many white/blue collar workers that aren't contributing to their 401K/IRAs, have nothing saved, and their whole paychecks are gone in two weeks on whatever?
     
  14. Sigmapolis

    Sigmapolis Well-Known Member
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    It is not nearly as bad as the click-bait headlines want you to believe...

    upload_2019-6-17_13-51-24.png

    ...but we are definitely not as thrifty of a society nowadays as we were in generations past.
     
  15. chadly82

    chadly82 Well-Known Member

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    When I was doing mortgages I constantly saw people maxing out their purchase price, the minimum down unless it was a 2nd home and then a 401k they contribute to that has a couple loans against that. A lot of the time I saw people with about 1500 in checking and savings combined but buying a 325k home. Completely stupid but because their debt ratio allows it....they do it.
     
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  16. BillBrasky4Cy

    BillBrasky4Cy Well-Known Member

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    1.) Don't view your home as an investment.
    2.) Figure out what how much you are comfortable paying monthly before you even think about getting pre-approved.
    3.) Don't ask the lender or mortgage broker how much you are pre-qualified for because you probably have no business being anywhere close to that price point.
     
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  17. Dandy

    Dandy Well-Known Member

    Oct 11, 2012
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    I heard my friend say once: "[Town redacted]: where everybody has money but nobody HAS money."

    It's a great saying. There are a lot of people in the town that make a good income but it all goes right out the door to their brand new Escalade or $400,000 house.
     
  18. cyrocksmypants

    cyrocksmypants Well-Known Member

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    I worked on payday lending for 8 years. I think some people would be terrified knowing how many of their doctors are taking out $500 payday loans because they’re so overextended.
     
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  19. cyrocksmypants

    cyrocksmypants Well-Known Member

    Dec 29, 2008
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    Can you provide a link to that chart? I’d be curious of how much of that has to do with the rate of inflation not rising as high as inflation/as slowly as pay rates.
     
  20. Sigmapolis

    Sigmapolis Well-Known Member
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    https://fred.stlouisfed.org/series/PSAVERT
     

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