Boomers cant afford they houses. boo hoo

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

  1. cyrocksmypants

    cyrocksmypants Well-Known Member

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    Hence why the numbers may not lie, but they also don’t always tell the full story. I’d also argue “not as thrifty” is absolutely not a factual description, as well.
     
  2. exCyDing

    exCyDing Well-Known Member

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    Depends on the interest rate on your mortgage. With current rates, you’re probably better off investing the difference in index funds or something similar. If you’re paying 4.-something interest, but missing out on 6.-something returns, you’re missing out. They key is, you actually have to invest it and not spend it on other ****.

    Ditto. Just relocated in San Diego, 3 blocks from the beach. Sure, I’m spending more on housing and taxes than I would be if I lived in Des Moines. On the other hand, I’m not spending a couple $k to spend a week at a beach to make winter tolerable every year. It’s right there, year round. I’ve stopped correcting midwesterners when they tell me how awful CA taxes are. If they’re not able to figure it out themselves, I’m not about to help them.
     
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  3. cowgirl836

    cowgirl836 Well-Known Member

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    I'd argue it's the comparable rent, mortgage, healthcare coverage, tuition cost, wage stagnation and reduction of benefits (pension as a big one) that have a bigger impact.
     
  4. runbikeswim

    runbikeswim Well-Known Member

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    A $90,000 SUV is a way worse investment than a $400,000 house.
     
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  5. JaCyn

    JaCyn Well-Known Member

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  6. Freebird

    Freebird Well-Known Member

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    Could be. I'm sure there are different factors. Whatever it is, it's really good to chip at some of that principle the first 1/3 of a loan when almost all of your payment is going towards interest.
     
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  7. Sigmapolis

    Sigmapolis Minister of Economy
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    To-may-toe, to-mat-oe.

    The numbers are what they are.

    I did not mean to pass any judgement with the "thrifty" word, however. You know me -- if I really felt something about kids these days, I would tell you about it. :)

    Cranky Old Man can say "kids these days don't save."
    Pants says "kids these days can't afford to."

    Answering who is right -- and it is probably somewhere in the middle, as it often is -- requires more data and research than just presenting the savings rate alone.

    We know the rate went down, but it does not tell us why on its own.
     
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  8. cyrocksmypants

    cyrocksmypants Well-Known Member

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    Probably has taken a little bit of a toll on Millennials being told constantly for years by Boomers that everything is their fault.
     
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  9. Cyched

    Cyched Minister of Culture
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    Tee hee
     
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  10. CYdTracked

    CYdTracked Well-Known Member

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    I think this same problem is going to bite the younger generations down the road too when they are getting into more house and mortgage debt than they really need to be. I look around at all this new construction in the metro and wonder who the heck is able to afford many of these houses. We know of someone right now that built a new home but can't close on it until they get out from their current home they've had on the market for a year now listed somewhere in the upper 300k or possibly around 400k I think. Their empty new home which surely costs more must not have a ton of demand either to have not been sold by now as the builder has been showing it while waiting on them to get their house sold so they can close on it.

    We live in a pretty modest house for our income level. I wish we had an extra bedroom and a little more square footage but we're living comfortably within our means and have adequate space and amenities in our home so there is no need to go further into debt just to have a nicer home.
     
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  11. CtownCyclone

    CtownCyclone Loves a rainy night
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    Yes, I don't know that I'd argue with you, but I didn't want to get too bogged down.

    What the hell, Sig is in here with his charts, we're off into the bogginess.
     
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  12. chadly82

    chadly82 Well-Known Member

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    Agree with 2 and 3 for sure, the first one is pretty 50/50 though. Depends on the market, id sell my home in the right market in a heartbeat haha.
     
  13. Sigmapolis

    Sigmapolis Minister of Economy
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    An axiom for life that has served well...

    "If you think anything is simple, then you don't really understand it."

    Stuff like the finances of almost 330 million Americans over multiple generations is complex.

    If you expect anything but a bog, then you are in store for disappointment.
     
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  14. helechopper

    helechopper Well-Known Member
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    I keep seeing this pop up and often wondered the same myself. How do people afford these houses?

    1. Killer jobs
    2. Help from mom and dad (or other family member)
    3. Inheritance
     
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  15. BillBrasky4Cy

    BillBrasky4Cy Well-Known Member

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    The problem here is that most of the time any gains are just going to get reallocated to an inflated purchase price. Sure, there are people who are good at flipping but that's a whole different discussion.
     
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  16. CtownCyclone

    CtownCyclone Loves a rainy night
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    I was trying out being blissfully naive.
     
  17. Sigmapolis

    Sigmapolis Minister of Economy
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    This is what I do not get about people hoping for high prices.

    Higher selling prices are generally eaten by higher purchasing prices.

    You are a rat running on a treadmill.

    The only ones who win are the real estate agents. And, indeed, that is often the point.
     
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  18. BillBrasky4Cy

    BillBrasky4Cy Well-Known Member

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    I know a lot of 2 and 3.... There is a lot of old farm money that is being transferred down from the baby boomers.
     
  19. Sigmapolis

    Sigmapolis Minister of Economy
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    Augustus and Tiberius were cautious, prudent men who built up substantial gold reserves "in case of a rainy day" over the course of 2-3 generations.

    Caligula spent it all on wine and orgies in a few years.

    Doing the right thing takes time and discipline. Doing the fun thing does not.
     
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  20. bannedman

    bannedman Well-Known Member

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    pls watch my psa
    thank u
     

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