Posted on 07/28/2016 1:21:21 PM PDT by GuavaCheesePuff
This is a consequence of the student loan scam
Fact is when the government gave all these loans and guaranteed them to these liberal it was the plan of indoctrination.
My sister remarked the other day that our “millennials” must be outliers. Between us we have 4 “millennials” added to their spouses, we’re looking at 8 “millennials.”
They’re now between 26 and 30. They married early, own their own homes, 3 of the 4 couples have at least one child, and their jobs allow the moms to stop working when the kids arrived.
If there is one thing that might have equipped them to be in the situation they’re in, all were homeschooled, and got a head start on college by doing dual enrollment in high school. So they were ahead in their education by a couple years.
It is the DiC fault. Can’t buy a house when you can’t get anything other than a clerks job
This is quite true. I’m in my early twenties, and I would say that 75% of people in my age-range (that I interact with, at least) are not interested at all in home ownership, but seem to view travel as the big goal.
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I bought my first house at 25 mostly because it was a good tax offset. If one has a good job and can get tax advantages on the mortgage interest and property taxes.
If one does not have a good job, renting makes more sense. Someday when I retire and sell my house I will rent. No one needs tax offsets if their income is small.
How many of these millennials voted for Obama?
How is that hope and change working out for ya?
Looks like the Millenials have figured out the "property tax" game... :)
Most of them are already paying the equivalent of a mortgage, paying the government back for the privilege of being mind raped in college. Can’t blame them for living in mom’s basement.
The economic depression, joblessness, wage retardation, and government incompetence are responsible for the lowest home ownership rate in 50 years. If you don’t have a job, you can’t service a home loan. If you are working part time because Obamacare made your employer downgrade you from full time to part time employee and you lost 20% of your income, you probably can’t service a home loan.
It’s the DemocRAT government, stupid!
I think you are mis-understanding. I agree, you should not buy a home or anything if you cannot afford it, but you should not own such a thing.
You will do better to keep borrowing against your home giving you tax credits, and then putting that money in other investments.
We have never owned our home, though I could pay it off in a few days if it came down to it.
And your right, I don’t own my cars, I own a company and my company leases my cars and work trucks. It’s a good tax shelter for my business, and it reduces my potential financial liability.
As far as getting old... you will be penalized for having assets. Lets say you die first, and your wife is left owning your assets, she will not qualify for many benefits because of that home. If she is put into a nursing home against her will (which happens frequenlty), they will take her home. When you die, your estate will get crushed with estate taxes.
Own nothing, put it in an LLC if you have to. Use what collateral you have to borrow, there has never been lower interest rates, they are too low.
It’s free money, and that my friend, is what carries ME through tough times.
But for some people there is a sort of “folksy” feel to say you own something. Whatever, you can’t take it with you, and when you go, the gub’mint gonna a good chunk of it if it’s in your personal name.
You do what you gotta do, I’m advising from a smart money perspective, not from a feel good perspective.
If perhaps during those tough times, you had say $200k laying around and your mortgage was $200 a month, would you not have been better off than having no mortgage and no accessible cash?
For me, in tough times, I want accessible cash, not money tied into an asset that may take a year or more to sell (and right now at a significant loss if I need the money quickly).
You borrow when you HAVE money, not when you don’t. That’s the law of business.
I know many bankers and money people who have given me this advice, and I know a few farm families who own a few hundred acres, and they do NOT own their property, an LLC does, for the reasons I’ve given. They also borrow when they have cash, not when they are broke.
If you are broke, you do without and go earn more money. But when the sun is shining... you make hay.
BTW, we (through our LLC and SCorp) own several rental properties, and I can tell you right now, they do very well. I am not against owning rental properties in the right market, but if asked, I would discourage anyone from committing to a single family home for reasons of financial stability right now (at least in my region and market), and much less so, a dwelling of ours size, which has just been crushed by the economy and market.
Also, much depends on your age, I’m nearly 70, and owning property right now, listed on our own asset sheet is not prudent in my opinion. I advise my kids who are still in an unstable market to not own a primary residence because they may have to move about because of their careers. They are partners in one of our LLC’s and will take over that partnership at some point, so that is their investment that we have made for them.
I’ve been wrong before, and I’m no expert, but I do talk to many who seem to know what they are doing.
If I can keep a line of personal credit going on my home of $500k, at say 1 point above prime, and I can invest that credit line in something that gives me a 10-15% return, I will go that route, which is where we are at now. Compound interest is what creates wealth, Albert Einstein once said that it was the most powerful force in the universe.
To me this is the most visible symptom of an aging population; whereas streets before would have kids playing, those homes are primarily filled with adults. Homes in my area without a driveway really suffer in terms of value...
Good luck, you are going to need it
I think I’ll do OK
Thanks for your concern
You can lead a horse to water, but you can’t make him drink...
Thank you. The finger points both ways here.
Yes I admit without reservation that a good many of my fellow Millennials are lazy dimwits who don’t want to move out of their parents house and have ‘degrees’ in underwater basketweaving. But when the last few generations sold our jobs out to China and India by the millions and are now replacing us with robots, plus inflated home prices to at least 3x what they should be, there’s more than enough blame to go around.
There is also an increasing problem of construction not keeping up with demand because construction companies are closing or not building in low-margin areas. One work friend quietly admitted to me that he and his wife live in the top floor of his parent’s home (stairs are getting hard for them) because there literally is no housing in the little town he commutes from that isn’t in the worst part of town or a McMansion that won’t last 5 years. Nothing. Literally zip. New home construction there has absolutely STOPPED COLD thanks to Obamanomics.
Housing deflation is not over yet. As much as they try to prop up the housing market, true price discovery continues unabated.
That is the sticky part of your otherwise wonderful presentation. Where, oh, where is a safe 15% ROI? Your point about an open line of credit is noteworthy; those pesky loan processing fees can throw a wrench in things. And the standard deduction will outdo a pretty significant interest accumulation at today's rates for those without other personal deductions.
I must also add that a large part of living within means is directed towards an end of not having to depend on bennies from Uncle Sugar in the late stages of life, since, as you say, "You can't take it with you."
if you owned the market over the last ten years this is what your return would look like:
http://www.macrotrends.net/1358/dow-jones-industrial-average-last-10-years
I don’t own the market, there are stocks I will stay away from and stocks I am aggressive with, and we have out performed this model by far.
I don’t day trade, but I review our investments every few months. Only our IRA’s are on auto-pilot.
As far as loan processing fees, we opened our lines of credit many years ago, and I would guess we paid an initial fee of probably 300 bucks.
-In a solid conservative state that isn't likely to go dem any time in the foreseeable future (Montana, for example, is a place that I can see going solid democrat some time soon, so is off my list). Beyond that, in a region of a conservative state with seasons (if I landed in Arizona, for example, I'd want to be in the mountains) that also isn't a lefty enclave within an otherwise conservative state. I also don't want to be on or close to BLM/EPA/NFS controlled land.
-Rural enough that I could shoot and otherwise recreate on my own property without being afraid of being bothered by neighbors who close enough to be annoyed by my activities. Also rural enough that when I sit outside in the evening, I DO NOT hear cars wooshing down the road at some point in the distance, or any other noise except birds. For all that, I don't want to be impossibly far (beyond 200 or so miles?) from a city with hospitals and other potentially necessary amenities.
-A church of my persuasion with a sizeable enough congregation that is growing/producing families with children, so that it isn't likely to die out.
-Sizeable population of Swedish bikini models.
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