Home Forums Hunting & Shooting Hunter's Campfire B&M stores closing; restaurants down.... Apartment complexes being built everywhere

Most millenials see little value in home ownership.

And some of their reasoning makes sense.




Travis

Home ownership is a pain in the ass. People are more mobile these days, it will take ten years or so on a 30 year note to build any appreciable equity. And fricking houses are HIGH. A $450k house is nothing extravagant in lots of places. Twenty percent down on that is $90k.

Color you special.

Buying and selling homes has been nothing but good for me.




Dave

Buying and selling homes has been nothing but good for me.
Dave

You and Jeff0. Coincidence?

Home ownership is a pain in the ass. People are more mobile these days, it will take ten years or so on a 30 year note to build any appreciable equity. And fricking houses are HIGH. A $450k house is nothing extravagant in lots of places. Twenty percent down on that is $90k.

I work in the south KC area and I think alot of the newer complexes are catering to the inner city crowd , that and replacing the ones that have burned down lately .

I can't see the reasoning to get a 30-year note. Did mine on 15 for not much more per month. Mine will be paid off this year.

When I started college, instead of throwing away money on rent, I found a house near the college in rough shape that no one had bought. I picked it up cheap. Lived in it while in college and then remodeled the whole thing before soon to be wife and I got married. Sold the house for $50k profit and put that money down on new house. That's the house that will be paid off in couple of months.

Current house is valued at twice what I paid for it. Yep, what a waste
Boys will start college in 3 years and I won't have mortgage or rent. Yep, complete waste.....

OP is right. Tons of apartment complexes going up in our area too. More than I can fathom.

When considering housing costs, one must consider;

Cost of housing you need,

VS

Cost of housing you think you need, to impress others

...potential buyers don't seem to have down payment money. On both sold homes we increased the sale price and "contributed" the extra to the buyers for their down payment..... essentially folding their down payment into the mortgage. Seems like a scam to me but the realtors say it's about the only way they sell now days.

The building boom around here are mostly rental complexes where they spoon feed you and change your Depends.
Having been involved in selling two houses recently, and in the process of selling a third, potential buyers don't seem to have down payment money. On both sold homes we increased the sale price and "contributed" the extra to the buyers for their down payment..... essentially folding their down payment into the mortgage. Seems like a scam to me but the realtors say it's about the only way they sell now days.

Paying any mortgage bi-weekly, 26 times per year, or making an extra monthly payment, 13 times per year, will reduce the length of the mortgage and the associated interest by a significant amount that shocks most people when they see the numbers and wonder why their mortgage holder didn't tell them about this "trick".

The growing apt market may not reflect an unwillingness to buy. Millennials with chit jobs, heavy college debt, and health insurance payments can't afford mortgage payments, it takes 2 or more together to even have an apt. Doesn't pay to buy if you do not have job security. Look at all the stores closing most of those jobs are not high paying jobs.

Owning a home isn't the investment it used to be, maybe not what it ever really was. Our home is paid for, my daughter and her husband are buying. My son is still renting, but working toward buying in a couple of years.

My parents built a new home in 1972, paid about $20K total for the home and lot. It sold in 2014 for $103K. Mom and dad paid off the mortgage in 10-15 years, but interest was sky high back then. Figure the interest, the property tax and insurance paid over 42 years. Plus the cost of new roof's, HVAC systems, painting, re-roofing, lawn care, new appliances, flooring, and other items I'm not sure they broke even.

We are also a much more mobile society today. Back about 8 years ago or so when the economy tanked there were thousands of people who had opportunities to take high paying jobs, but they had to relocate. They had homes they couldn't sell and were trapped into staying with a much lower paying job. Those who were renting could take advantage of those jobs because they were more mobile.

And there is a trend with the younger generation even among those who buy to buy much smaller homes. They truly are less interested in material things and a big home to show them off. Many kids today would rather invest their money somewhere other than real estate and spend money on experiences and travel rather than material things.

The trend is different, I'm not convinced it is necessarily worse.

Gen-x and millennial are stuck in a market where the migration to another company is the only way to advance a career, which could mean migrating to any point in the world on weeks notice. Renting makes more sense when you don't know where next month's paycheck is coming from.

Three days of joining a company, setting down roots, and putting in your 45 years for a pension are gone.

And I don't know how realtors come up with the amounts that they say you qualify for. Most are totally unrealistic. I feel that taking the figure they say you qualify for and halving it is more realistic.

For much of my life Brick & Mortar has frustrated me with, "We don't have that in stock, but we can order it."

It turns out so can I.

Renting is literally paying the landlords mortgage.

Yup.

This wasn't always the case in the past because there was no way to find distributers and other dealers, but now the www makes that easy. Parts lists and DIY instructions are also available from mulltiple sources. It's not always just about price, but often time as well.

I'm sad for people living that lifestyle and raising children. I went from kindergarten thru high school in the same school district and lived in the same house from 1st grade thru HS. I attend class reunions because I know every one of those people and I've known many of them since grade school. I have a hometown. If someone asks me where I am from, I have an answer! I am sure there are positives to living in lots of places and meeting new people all the time, but I'm happy not knowing what they are.

I am aware that people who change jobs every 3-5 years are seen as "go getters" by management in a lot of fields these days. That is also foreign to me. I am a building engineer and in my work the longer you are in one place, the better you know it. I have been at my current job 6 years and work with a guy that has been there for over 30. He is a wealth of information and whenever he is off and there is a crisis, he is the first person management will call and ask 'how fast can you get here?"

When I was laid off in 2009 I went to work for a real [bleep] property management company. I was in charge of an 18 story and a 5 story office building. Most engineers last about 2 years there. I lasted 22 months. As a result of that high turnover rate, (and really bad upper management/ownership) the place is in complete disarray. The same old problems were being addressed by a new guy who had no knowledge of how guys before him had tried to rectify the situation. Equipment was valved off and out of service and no one knew why; some said it leaked, others said it was plugged up. Everyone agreed that it had not worked for years. Projects were abandoned half complete because the guy doing the work had left for a better job or been fired