Why is everyone so concerned with buying a house right now?

[twentity]

Is there some kind of memo going around that I missed. There are about 3 or more threads about home ownership. I just wanted to know if I was missing out on something. I do plan to buy but not anytime this year but apparently everyone else and freaking out because they can't afford it this very second.

That's all I wanted to state. As you were.

[winneythepooh7]

Drink!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!!!!

[paiger81]

Drink!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!!!!


DAMN my office for not letting me have a bottle of tequila in my desk!! :huge:

[jdt141]

Drink!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!!!!

It's not st. patrick's day yet! :huge:

[inmediasres]

The issue of home ownership has become such a hot topic across America over the last decade and the energy has just been unparalleled over this very long-lasting boom.

It's really become ridiculous, to the point where people don't even think about property tax and just the time and effort it takes to improve, let alone just maintain a home. All people think about is the mortgage and the rates and the increase in value over time.

I just see people's eyes light up with enthusiasm when they talk about buying a home or suggesting that I buy one, and often I can observe that there is just very little thought going on up there in the head.

[winneythepooh7]

It's not st. patrick's day yet! :huge:

Close enough :D.

[mishl982]

:p

Because it's totally like the in thing to do!

Actually that's kind of funny, because lately I've been having thoughts about buying. Mostly because the bf is currently house hunting and with my apartment lease ending this year, my roommate and I are contemplating sharing a mortgage the next year. It would just be nice to own my own walls and not waste my money away each month.

[heatherf]

Drink!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!!!!

LOLOLOLOLOLOLOLOLOLOL!!!!!!!!!

I think it goes along the same lines of whether or not to purchase or lease a car.

[inmediasres]

I forgot to add that the influence of popular television shows about home ownership and home improvement on TLC and HGTV, among other networks, is powerful.

[SmilesSoSweet]

For me, it's the next big step in my life. I'm not married and I don't have any kids and I have no idea when that part of my life will happen, so a house is my next goal. I'm all settled here in Phoenix, and I see myself living here for awhile, so I figured why not look into buying?

[wordsmith]

I am not remotely concerned with buying a house and never have been.

[yankeeyosh]

Well, for me, it's just part of the whole set of frustrations that have been going on in my life (six years out of school, yet I still haven't been able to get into a "career" job, never been promoted, can't afford to move out of my parents' house, etc.), yet I hear of people who are only a year out of school and have their own office, house, etc. I really should stop being so envious, but the stress is just complicating matters.

[inmediasres]

The Comparison Game is the subtle crippler of our lives, innit?

[paiger81]

I'm probably going to buy a house within the next year. It basically just depends on how much my raise/promo is. Plus, I've lived in this town for about 6 years, so it seems like the next logical step for me.

[jdt141]

I am not remotely concerned with buying a house and never have been.

Unless its a brickhouse, right? :huge:

But, seriously, doesn't that seem a little short sighted if you're going to be in an area for a long (4+ yrs) period of time? Rather than just renting, which is almost the cost of a mortgage payment anyway?... hmm but I guess this depends on where you live.... damn the city!

[wordsmith]

I think I've responded to this at length in the approx. 500 threads on home ownership.


DRINK!!!!!!!!!!!!!

[Illuminous]

hah.

I sjut finished a column on this. Peer pressure. They all have hosues, what am I doing so wrong that I can't do it?

Nothing. No one need to own a house if they arent ready for it damnit. It's just one more thing to beat yourself up over, and compare yourself to other people. Put it up there with salary, SOs and the like. Don't have it or enough of it? Well don't bitch change it.

That's my whole theory on life though.

[wordsmith]

Yeah, it's just another manifestation of "I don't have/want what other people have/want so there's either a. something wrong with me and the way I'm going about things or b. other people might perceive that something is wrong with me and the way I'm going about things, and I don't like that."

[Umbra]

I'd rather buy a small apartment(700 sq feet) with a balcony instead of a house. I hate mowing yards! For now, though, I'm still a "Failure to Launch". Hehe.

[shimmer728]

I just had lunch with my dad and all of a sudden he starts talking about what a good idea it would be for me to buy a house. WITH WHAT MONEY? Jesus effing Christ.

Frankly, I don't want the responsibility of being a homeowner, unless I can get a man to do all the work for me. I'm serious.

[heatherf]

I just had lunch with my dad and all of a sudden he starts talking about what a good idea it would be for me to buy a house. WITH WHAT MONEY? Jesus effing Christ.

Frankly, I don't want the responsibility of being a homeowner, unless I can get a man to do all the work for me. I'm serious.

You can be like the Eva Longoria character on Desperate Housewives- who has the landscaping/pool boy! :razz:

[dreams82]

Well, along with the QLC, comes the desire to move our of our parents home. That I think is where the motivation to purchase ones own place lies.

[*K10*]

Why am *I* so concerned with buying a house right now? Because I'm turning 30 this year and it's time to start being alittle more responsible and stop throwing away $750 a month!

Surely nobody said you had to buy one! ;):

[wordsmith]

Well, along with the QLC, comes the desire to move our of our parents home. That I think is where the motivation to purchase ones own place lies.

You can move out of your parents' home without buying a house. I haven't lived in my parents' home for ten years (apart from three months a year the four years I was in undergrad). I have lived in five diff. apartments in that time, though. No buying for me.

[wordsmith]

Because I'm turning 30 this year and it's time to start being alittle more responsible

Again with the fallacy that not owning a home is somehow an irresponsible choice.

[SmilesSoSweet]

You can move out of your parents' home without buying a house. I haven't lived in my parents' home for ten years (apart from three months a year the four years I was in undergrad). I have lived in five diff. apartments in that time, though. No buying for me.

Exactly. I've lived in many, many apartments since I left home at 17 to start college. I could maybe see someone who lived a few years away from home in apartments move back home to save up some money for a down payment, then buy a house - my brother did that. But before that he lived away from home for awhile even after college but rented, not owned.

[*K10*]

Again with the fallacy that not owning a home is somehow an irresponsible choice.

Yes, FOR ME it is... throwing away $750 when it could be an investment.

Sorry if you don't like my choices!

[dreams82]

I agree with K10, I'd rather invest my money than put it into somene elses pocket, or in essence throw it out the window.

[Girlie girl]

I attended a money saving seminar in Nov. '05 with David Bach, author of the #1 New York Times business bestseller The Automatic Millionaire and some other handy financial books. His talk lasted about an hour or two and he talked about saving money, investments etc. The most important thing he stressed was to buy your own home and to do it as soon as financially possible because it will be the best investment of your life. Your net worth increases, you have an asset. You will not die a bag lady (just one example). I am currently renting (6 years so far) and am still not ready to buy a home because I don't know if this is where I want to live forever.. and it's still cheaper for me to rent that pay mortgage. Just wanted to add my guess as to where the house rush could be coming from... I think it's a good idea.. but only if you can afford it and will be living in the area for at least 6 years+ (read that too) for sure.

Just sharing the info..

[yankeeyosh]

I agree with K10, I'd rather invest my money than put it into somene elses pocket, or in essence throw it out the window.

That's good thinking. The only problem is whether you feel like you are going to stay where you are for a significant period of time. You might think you're investing, but if you plan on going to grad school or might want to look for a better job in the next couple of years, buying a house might not be worth it, since the costs of selling a house, not to mention all the money you have to deal with in terms of taxes, upkeep, etc. (which will ultimately be perhaps as much as $500 a month taht you actually are throwing away) that you don't have to worry about with an apartment is what makes it a very difficult choice.

I would love to purchase a condo (probably not a house at this point)...and if I had the means, I would. I hate leases, I hate dealing with landlords, etc. I'm not trying to belittle those who have. I just question whether people who are 23, 24 realize (a) the true cost of home ownership and (b) understand that even though in a way, it's "freedom", in a way, you're stifled since it's much harder and expensive to move. Unless you are sure you're going to live somewhere for at least 4 or 5 years, I don't see the benefit. And given how flighty young people can be, it is very questionable.

[wordsmith]

If you're moving frequently, buying new homes every time you move is in no way financially wise. People in transient lifestyles are wise to rent.

[red]

I would love to purchase a condo (probably not a house at this point)...and if I had the means, I would. I hate leases, I hate dealing with landlords, etc. I'm not trying to belittle those who have. I just question whether people who are 23, 24 realize (a) the true cost of home ownership and (b) understand that even though in a way, it's "freedom", in a way, you're stifled since it's much harder and expensive to move. Unless you are sure you're going to live somewhere for at least 4 or 5 years, I don't see the benefit. And given how flighty young people can be, it is very questionable.


right, but is there anyone on this board who is that age who is thinking of buying a house that we need to stop from making such a BIG mistake?

people make bad choices all of the time. nothing you can do to stop them. you just have to worry about your own stuff.

[SmilesSoSweet]

I would love to purchase a condo (probably not a house at this point)...and if I had the means, I would. I hate leases, I hate dealing with landlords, etc. I'm not trying to belittle those who have. I just question whether people who are 23, 24 realize (a) the true cost of home ownership and (b) understand that even though in a way, it's "freedom", in a way, you're stifled since it's much harder and expensive to move. Unless you are sure you're going to live somewhere for at least 4 or 5 years, I don't see the benefit. And given how flighty young people can be, it is very questionable.

And why just 23 and 24 year olds? There are a lot of people in their late 20s, 30s and 40s and beyond that buy a house when it may not have been the best time financially to do so. But that's their problem because they choose to buy the house and take responsibility for it.

I agree with red, just worry about your own stuff.

[and1grad]

I think NOT buying a house for some is just as responsible as buying a house is for others. There's no inherent responsibility there. People just say that to make themselves feel good. I'm over it. Buying a house would be a HUGE mistake for me. Not only would it leave me penniless at the end of each month but it'd be something I had to worry about should I leave this city.

[red]

exactly what i'm sayin'.

i totally have people in my life who make or have made choices i wouldn't have made. it can be really frustrating to watch, trust me. my little brother lives at home and doesn't work, i have family with substance abuse problems, people who have kids before they're ready, etc. but i just have to remember that everyone makes their own way in this world and just try to worry about making mine.

you will get nowhere by comparing yourself to other people. it's just crazy-making.

everyone is charging lots of stuff and not saving any money right now, but that doesn't mean i am going to do that. it's not right for me.

and1 is right. it's silly to overextend yourself just to buy a place. it's silly to buy if you don't have a steady job or you haven't lived on your own for a while or your life is in flux or etc.

[shimmer728]

I think NOT buying a house for some is just as responsible as buying a house is for others. There's no inherent responsibility there. People just say that to make themselves feel good. I'm over it. Buying a house would be a HUGE mistake for me. Not only would it leave me penniless at the end of each month but it'd be something I had to worry about should I leave this city.

Exactly.

That's what I told my dad.

[SunDevil]

Why am *I* so concerned with buying a house right now? Because I'm turning 30 this year and it's time to start being alittle more responsible and stop throwing away $750 a month!


So you can give your $750+ in interest to a bank (tax write-off...), because, I'm sure that none of us want to move into a house that would be a finicially smart decision and all of your savings and a large part of your takehome pay would go towards each month. You have to impress people. They don't look at how much debt your in, they just look at what you have.

I pay $600/month in rent. I view it like interest I would pay the bank after the tax deduction. I save $1,000, in a investment account, that would go towards the principle if I had a house.

I can move a bank account much easier than a house (with all the fees, property taxes, realator costs, and utilities).

Eventually, I will buy a house, but renting isn't that bad right now, and the housing market is starting to cool off. :)

[wordsmith]

I only pay $310 in rent. Find me a mortgage that low (not to mention front me the closing costs and property tax $$$) and I'll think about buying.

Oh, wait. No, I won't. Because I'm still not remotely close to being settled in one area longterm, and that's my most important criteria.

[capella]

I just question whether people who are 23, 24 realize (a) the true cost of home ownership and (b) understand that even though in a way, it's "freedom", in a way, you're stifled since it's much harder and expensive to move. Unless you are sure you're going to live somewhere for at least 4 or 5 years, I don't see the benefit. And given how flighty young people can be, it is very questionable.
I think it's sort of unfair to assume that someone who's 23 or 24 wouldn't research the issue in full or understand what homeownership entails. Why wouldn't someone who's purchasing a home and also happens to be young have looked into it fully?

It's also unfair to say that people in their early 20's or mid-20's are all flighty. That isn't remotely true for me or my husband (nor for most of the people I know). I was never a flighty person. And I'm not that spectacular or wondrous that I should be examined by doctors to see if they can some how figure out how I got to be so darn wise. :rolleyes: There are plenty of older idiots as well. Being stupid doesn't have an age requirement.

[and1grad]

I only pay $310 in rent.
I hate you. Thats my car payment. I cant even imagine how many techno gadgets and stuff I'd have if my rent were that low. I probably wouldnt even have to type anymore...i'd just speak to the keyboard. Go Go Gadget...

[wordsmith]

Car payment? What's a car payment? :twisted:

You forget where you'd have to live to get that deal, yo.

In a former brothel, on the railroad tracks, in a town of 7,000 surrounded by cornfields.

Now, it ain't no thang to me...I was raised in the country. And, granted, it's a great apartment...2BR, no less. But you? You'd go batshit crazy. :rolleyes:

[yankeeyosh]

I think it's sort of unfair to assume that someone who's 23 or 24 wouldn't research the issue in full or understand what homeownership entails. Why wouldn't someone who's purchasing a home and also happens to be young have looked into it fully?

It's also unfair to say that people in their early 20's or mid-20's are all flighty. That isn't remotely true for me or my husband (nor for most of the people I know). I was never a flighty person. And I'm not that spectacular or wondrous that I should be examined by doctors to see if they can some how figure out how I got to be so darn wise. :rolleyes: There are plenty of older idiots as well. Being stupid doesn't have an age requirement.

I'm sorry Amy...you're absolutely right. I really should have phrased what I said better. I made it sound like it was "everyone", but I probably should have said "most". Every situation is different...

[red]

also i think the media plays up the idea of lazy, irresponsible 20-somethings, when the reality is that there are lots of us who are responsible and work really hard. but i guess there's nothing exciting or scandalous about that.

even among friends and stuff, no one wants to talk about the person who works hard everyday, they want to talk about people who get things they don't deserve, etc.

[yankeeyosh]

also i think the media plays up the idea of lazy, irresponsible 20-somethings, when the reality is that there are lots of us who are responsible and work really hard. but i guess there's nothing exciting or scandalous about that.

even among friends and stuff, no one wants to talk about the person who works hard everyday, they want to talk about people who get things they don't deserve, etc.

Frankly, I think Gen 'Y' is more mature to handle home ownership, as a whole, than any other generation because in general, they have been involved with financial decisions since birth, and they have more disposable money than any generation prior. So it doesn't surprise me...but there is still a large segment that really doesn't know what they're getting themselves into.

[and1grad]

Frankly, I think Gen 'Y' is more mature to handle home ownership, as a whole, than any other generation because in general, they have been involved with financial decisions since birth, and they have more disposable money than any generation prior. So it doesn't surprise me...but there is still a large segment that really doesn't know what they're getting themselves into.
Where do you get all that from? What about Gen 'Y' suggests financial maturity to you?

[*K10*]

So you can give your $750+ in interest to a bank (tax write-off...), because, I'm sure that none of us want to move into a house that would be a finicially smart decision and all of your savings and a large part of your takehome pay would go towards each month. You have to impress people. They don't look at how much debt your in, they just look at what you have.

Good! I'm glad you know what works for you! I'm not at all interested in impressing people - I just know what works for me! :)

[yankeeyosh]

Where do you get all that from? What about Gen 'Y' suggests financial maturity to you?

Well, based on various surveys I've read, young people tend to understand the importance of saving because Social Security probably won't exist (at least to the extent it does today) when we retire, and invest money as soon as it's possible. Also, we understand how important it is to get equity , and given the rapid rise in home values the last five years, I guess the "coming of age" of Gen-'Y' and the rapid rise in home ownership among young twenty-somethings is no coincidence.

There are plenty of irresponsible people when it comes to money. No doubt about that, and a lot of them make decisions that are questionable...and it's these people that concern me (not just for themselves, but for the overall state of the economy). But I do think that our generation is more prepared for this stuff than others.

[red]

wow! i totally disagree.

the personal savings rate is at a record low (0-1%) ... i mean if people understand the importance of saving, great, but they apparently aren't actually doing it.

[Maverick434]

I don't think the majority of Americans, regardless of their age group, save very much money. The word "save" may very well be in their mind, but the actual process of saving money is not performed.

As for people 25 to 30, I don't see very much savings out there. A lot of young people carry the idea in their mind that retirement is far off and that there's time to save. So they simply put it off and don't take advantage of the compounding factor in their 401k.

How many young people have a liquid three to six months worth of savings at any given moment? We live in a "buy it now" world, the idea of saving money has been lost.

Do Americans Plan for the Long Haul? (http://www.cnn.com/2006/US/02/15/planning.overview/index.html)

Lance

[Winter Storm]

How many young people have a liquid three to six months worth of savings at any given moment? We live in a "buy it now" world, the idea of saving money has been lost.

Do Americans Plan for the Long Haul? (http://www.cnn.com/2006/US/02/15/planning.overview/index.html)

Lance

Yes, I just read this article and that is what I was thinking. I've always been a huge saver but I find I am the only one. My peers often give me funny looks cause I prefer to brown-bag it and live frugally in favor of putting my cash into a savings account.

And for the record I do have 6 months worth of pay stashed away in the event of an emergency.

[yankeeyosh]

wow! i totally disagree.

the personal savings rate is at a record low (0-1%) ... i mean if people understand the importance of saving, great, but they apparently aren't actually doing it.

Well, a lot of that has to do with the Boom. Keep in mind that most of Gen 'Y' is still in school, so their earning power has not been realized yet. I think that in the next ten years...especially if the economy has a downswing, the savings rate will rise substantially.

[Maverick434]

Well, a lot of that has to do with the Boom. Keep in mind that most of Gen 'Y' is still in school, so their earning power has not been realized yet. I think that in the next ten years...especially if the economy has a downswing, the savings rate will rise substantially.

I disagree. It's very common in college to still be in the "purse" of one's parents. One simply calls mom or dad and asks for more money, where does the student then develop good money management practices?. The number of college students who must manage their own finances is actually rather small. Take a look at the number of college students who graduate with credit card debt. That must be paid down before any savings can take place, due to the interest rate on the cards. I will not even bring up the number who graduate and then sign their name to an expensive car note, expensive apartment, etc.

The only thing that matters at the end of the day is how much money you keep.

A solution to the problem would be to teach personal finance in high school and again in college. That's something that parents should teach their children, but they don't.

Lance

[Winter Storm]

I agree with Maverick, I predict that the next generation will be much worse than we are. For one, there have had even more instand gratification that we have and two, I also think there is a big problem with teaching personal finances at home and at college.

I look at my sister and my 16 year old niece and how my sister just gives her anything she wants. She already has a car sitting around waiting for her and she hasn't even started driving school, not to mention she's had a cell phone since she ws 13, loses one every 3 months and my sister goes right out and buys another one. Same thing with all her friends.

I think the next generation behind us are screwed.

[wordsmith]

My sister, and all her gen y college friends, are beyond irresponsible with their spending...and they're not aberrations. They're the norm.

[cheshrcarol]

My Gen-Y brother (I consider myself X or maybe X 1/2) can't even remember to deposit his paychecks or send them home to my mom. My mom keeps getting letters that these checks were never cashed. :rolleyes:

And really, he has no reason to stay on top of things that well. My parents pay for everything for him since he's at school, and his interning paychecks basically sit in the bank.

[Winter Storm]

My Gen-Y brother (I consider myself X or maybe X 1/2) can't even remember to deposit his paychecks or send them home to my mom. My mom keeps getting letters that these checks were never cashed. :rolleyes:

And really, he has no reason to stay on top of things that well. My parents pay for everything for him since he's at school, and his interning paychecks basically sit in the bank.

Yeah, I also consider myself Gen-X. And as for your brother, *headdesk*. :rolleyes:

[yankeeyosh]

Yeah, I also consider myself Gen-X. And as for your brother, *headdesk*. :rolleyes:

What's "headdesk"? :)

Am I the only one on these boards who has faith about the rising 20somethings??? :confused:

[wordsmith]

We older folks are easing into our newfound cynicism, Mark. :rolleyes:

[Winter Storm]

What's "headdesk"? :)

Am I the only one on these boards who has faith about the rising 20somethings??? :confused:

*headdesk* is a term embressezla coined meaning slamming my head against the desk.

And yeah, I have little faith in the financial decison-making of these youngin's. The way I see it, they are coming up way more spoiled than us QLC seniors. :cool:

[springhaze]

Hey, I'm 21 (senior in college) and am firmly in the Gen-Y camp...not all of us are irresponsible with money you know :p I think Mark has a point to an extent, but of course there are all different kinds of people in any given generation- some of them are going to be irresponsible, while others are doing just fine in the maturity department.

[Winter Storm]

Am I the only one on these boards who has faith about the rising 20somethings??? :confused:
Plus add to the how hard it has been for our generation, and the fact that things are only getting higher in price, real estate, rentals, tuition, utilities, you name it, yet salaries aren't exactly increasing. I foresee, the next generation being forced into more debt just to stay afloat.

[yankeeyosh]

Plus add to the how hard it has been for our generation, and the fact that things are only getting higher in price, real estate, rentals, tuition, utilities, you name it, yet salaries aren't exactly increasing. I foresee, the next generation being forced into more debt just to stay afloat.

Well I agree with the debt. Tuition is increasing 8, 9% a year. Now at some state schools, like Penn State, it costs $20K a year to attend. Unless something comes along to stem the tide, it will become unaffordable for all, and $50K debt will be the norm. Not to mention the fact that housing is ridiculously expensive, as we've discussed ad nauseum since Wednesday.

But I think that all in all, we're doing pretty well. Many of us have already exceeded how much our parents are making, and we've only been in the workforce a few years compared to 30, 40 years. Fully seventy percent of young people under 25 are putting money into 401(k)s if they are offered. Granted, there are many who are struggling, and many who have little financial common sense. But I think a sizeable majority understand what it takes to succeed...even though I think schools should do a better job in terms of teaching financial education.

[Maverick434]

"Fully seventy percent of young people under 25 are putting money into 401(k)s if they are offered. "

Where did you see that one at? Statistics can be changed and they can be interpreted in multiple different ways. Both for the good and for the bad.

In general, I don't think a lot of youth get the point of saving and on a higher level, building one's wealth. This also applies across the board, not just for college graduates. It goes further to the high school graduates, the minorities etc. It's an American problem across the board. Look at marriages, many of those are simply due to money issues.

Lance

[red]

well, my husband and i make almost as much now as my parents made when they retired a few years ago (but my parents were teachers and that's a kind of weird situation, since they get a pension and health benefits and we won't...)

we don't even compare ourselves to my ILs who don't even have a HS education.

am i GEN X or Y? i'm 28.

anyway, most people i know (my age or younger) are terrible with saving money, but that could be a nyc thing.

[wordsmith]

My parents could afford a house and three babies, and my mom not working when my mom was my age. I can't.

[red]

right but i know people here who do SAH/WAH, so i think it's hard to say when your situations are so different, you know?

my parents definitely struggled and my ILs struggled even more i think.

the whole pension/health benefits thing is totally different though...

[Winter Storm]

My parents could afford a house and three babies, and my mom not working when my mom was my age. I can't.

Yeah, my mother had bought her 2nd house by my age and was raising my sister alone with no child support and was hitting the clubs every weekend (where she met my father) all on a high school grad's secretarial salary.

[heatherf]

My parents could afford a house and three babies, and my mom not working when my mom was my age. I can't.

Same here. WTF happened in that 20-30 year span that effing killed it for us?

And sure, I could stay home and Greg and I could rent....but the big thing for me not being a stay at home mom is RETIREMENT. How the eff am I supposed to save for retirement when I'm out of a good 10 years of work? That's my #1 reason why I don't stay home.

[J-girl]

I am borderline Gen Y.

Carol- the scarry thing is I sound a lot like your brother when I was in uni. My bills were all over the place and my parents were always on my case (hey that rhymed).

[red]

i think i am X. retirement scares me, but being without health insurance REALLY freaks me out.

[yankeeyosh]

"Fully seventy percent of young people under 25 are putting money into 401(k)s if they are offered. "

Where did you see that one at? Statistics can be changed and they can be interpreted in multiple different ways. Both for the good and for the bad.


I saw that in an article written somewhere several months ago...they also said that a sizeable pctg (forgot how much) already have $10K saved in their 401(k)'s...as a (temporary) retirement plan administator, sometimes I see plans where basically no one save the owner is deferring anything other than maybe a pittance.

[yankeeyosh]

am i GEN X or Y? i'm 28.


If you were born in 77, I consider you 'X'. If you were born in 78, I consider you 'Y'. But you can call yourself anything you want :)

[shorty]

Oh, my god, I know what you mean!

It sucks! Everyone keeps telling me to buy a house. And I tell them I'm still young and unsure of myself. But they keep pushing me to buy a house! Why would I go through all the trouble to buy a house if I don't know where I'm gonna be in the next year?!

[EmberMae]

It's not that I really want a house. We certainly don't need the space, and I don't want to deal with maintaining a lawn. I think a house is a symbol of success though, the American dream and all that. I just keep getting reminded of how much my life sucks compared to my parents. When they were my age I was born. by the time they were 26 they owned a house. I'm so damn frustrated because i'm nowhere close to where they were.

[ebruening]

This phrase has really started to bother me. If you have a mortgage, technically, you do not OWN your house. The lender does, with the understanding that you will pay them a certain amount of money every month for a certain length of time. The same thing goes with having a car loan; I have one. I do not own my car; the credit union through which I received my loan owns it. I pay them a certain amount of money every month for a certain length of time. When I have fulfilled my obligation to the credit union, then I will truly OWN my car.

[ebruening]

But I think that all in all, we're doing pretty well. Many of us have already exceeded how much our parents are making, and we've only been in the workforce a few years compared to 30, 40 years. Fully seventy percent of young people under 25 are putting money into 401(k)s if they are offered. Granted, there are many who are struggling, and many who have little financial common sense. But I think a sizeable majority understand what it takes to succeed...even though I think schools should do a better job in terms of teaching financial education.

I haven't exceeded what my parents make. I never will, if you take inflation into consideration. I heard something on NPR that said a much smaller percentage of 20somethings are putting money into 401(k)s, and the percentage isn't enough to make a substantial contribution into their retirement accounts. Gee, it kind of makes me glad that my school district forces me to put in nearly $200 per month into my retirement account :rolleyes:

[capella]

This phrase has really started to bother me. If you have a mortgage, technically, you do not OWN your house. The lender does, with the understanding that you will pay them a certain amount of money every month for a certain length of time. The same thing goes with having a car loan; I have one. I do not own my car; the credit union through which I received my loan owns it. I pay them a certain amount of money every month for a certain length of time. When I have fulfilled my obligation to the credit union, then I will truly OWN my car.
But in all fairness, you do own a certain stock in your home, regardless of paying a lender every month. Each month you buy a little more of your house. If you sell your home, you get the equity from it, not your landlord. So you do own part of your house even if you don't own the entire thing yet. Why does it bother you?

[ebruening]

But in all fairness, you do own a certain stock in your home, regardless of paying a lender every month. Each month you buy a little more of your house. If you sell your home, you get the equity from it, not your landlord. So you do own part of your house even if you don't own the entire thing yet. Why does it bother you?

I see your point, Amy. Why does it bother me? I am really, really cranky today :redface: I'm letting very small things bother me far too much. Sorry.

[capella]

I see your point, Amy. Why does it bother me? I am really, really cranky today :redface: I'm letting very small things bother me far too much. Sorry.
Awwww :) If it makes you feel better I'm quite sick and I'm trying to update my portfolio for my interviews this week. I hate writing philosophies of education and all that BS. Blah!

[ebruening]

Awwww :) If it makes you feel better I'm quite sick and I'm trying to update my portfolio for my interviews this week. I hate writing philosophies of education and all that BS. Blah!

Yes, I'm doing the same thing right now :neutral:

[pisces2473]

Same here. WTF happened in that 20-30 year span that effing killed it for us?

And sure, I could stay home and Greg and I could rent....but the big thing for me not being a stay at home mom is RETIREMENT. How the eff am I supposed to save for retirement when I'm out of a good 10 years of work? That's my #1 reason why I don't stay home.
Exactly, and that's why my mom went back to work after we were a little older. Right now, my dad makes enough for the two of them to live off of, but they bank my mom's salary for later on down the road. My dad is self-employed, so no cushy company pension for him. My mom is a municipal employee, so she will get a pension of some sort...

In my friend's case (the lawyer wife) I think he's making enough now and will make enough so that she can stay out of work for now and retirement will be okay...but she will be going back to work later, probably for the retirement stuff only.

It's scary b/c you hear about these widows in their early 60s who suddenly have to go back to work after being out of work for YEARS b/c they were stay at home moms/wives and then their husbands die and there's nothing there for them to live off of for the next 20-30 years.

[internut33]

I'm not too sure about buying now in certain markets but I'm glad I purchased my home 5 years ago. Yeah, huge payments every month and all the costs and bills associated with it. But I bought at the right time.

Tech speaking i've made about $20,000 in equity every year on my current home.

So thats a reason. Your rent isn't appreciating.

[spiritedaway]

I am in my mid-20s and I am looking as a single buyer. I know what I want and have a realistic grasp of what I can afford. (Yankee, I live in the same area that you're in, so I definitely know how crazy housing prices are around here). My income is moderate - a recent grad in a competitive field could easily make more than me - but I am debt free and have excellent credit. I'd considered myself to be financially savvy. I took care of all my finances/expenses (minus living at home) since I started my first job at 14 at min. wage. I paid for my own college education, my new car, and although I'm currently living at home, I'm paying room and board. Granted, it is less than what I would be paying if I were renting, but it still accounts for 1/4 of my monthly income.

I have already rejected an application for pre-approval loan because the interest rate was higher than what I expected (8.5%) for 200K. I am open to a lot of possibilities right now (houses/apartments, city vs suburbs). If I buy, it has to be a place that I could afford with my income, but I am confident it can be worked out (as long as I keep my job). Having said that, this is all premature UNTIL I find the right place at the right price. Until that happens (and I'd imagine that I will move forward with the process quickly when I do), I am just in NO hurry to buy.

There are tradeoffs to renting and buying. People shouldn't buy just because everyone is buying. Everyone's situation is different, and I think one should buy only when they KNOW they're ready - financially or otherwise. To each his own. Buying a house shouldn't be taken lightly, just because it IS a huge responsibility (and commitment, if you're buying it with someone else).

[Birdie82]

I am 23 and completely not looking at buying a house right now. I just want to get rid of my credit card debt i currently have. I would like to eventually buy a house in my late 20's when i have settled down but that seems like too much of a commitment and way too much money. Also i dont think i am mature enough, my main thing i have been worrying about today is improving my movie trivia through playing the popsecret trivia game online. Ya, i think house buying will be a few more years.

[lostindc]

Regardless of whether you rent or buy you are putting money in someone else's pocket. It's the price of housing.

If you rent - the money goes to a landlord

If you buy - the money goes to the bank in the form of interest (which can be more than the actual cost of the house over the life of the loan). Money also goes to the gov't in the form of property taxes, and might go to the condo association in the form of condo fees (if you own a condo). Not to mention repairs, maintenance costs, closing costs and commissions.

One definate downside of apartments is that they can be flipped into condos forcing the tenants to move since the prices are often insanely unaffordable.

One positive side to owning a condo is that it can't be converted into a condo.

[yankeeyosh]

If you buy - the money goes to the bank in the form of interest (which can be more than the actual cost of the house over the life of the loan). Money also goes to the gov't in the form of property taxes, and might go to the condo association in the form of condo fees (if you own a condo). Not to mention repairs, maintenance costs, closing costs and commissions.


Yup...many people don't realize that. The taxes and maintenance alone could approach the cost of rent.

[wordsmith]

In my case, easily exceed it.

[bridgetjones]

I am not buying a house until the market cools down. Besides I do not even have a downpayment together at this time. No I do not want to get a no down loan, then it will be forever before the principal gets knocked down. Hopefully all that will occur before I am 35 and after I find a hubby :) Lady luck be on my side this time... God knows I did not have economic luck until now.

As far as I am concerned, you should be extra picky about what you buy and rent a nice semi cheap apt until then. Maintaining the house plus the mortgage can wipe out retirement savings if you are not careful. Plus in this mkt you cannot be guaranteed that a market correction will not wipe out your cap gains on that house.

Nevermind, I have friends still going on and on about how rent is pissing your money down a drain :rolleyes:

[MirandaCWL]

My husband and I bought a house when I was 20 (yeah I got married young which is another story). Anyway having a house is great, don't get me wrong, but there is stuff about having an apartment that I miss. You have a lease which means that you do not have to stay there forever. I strongly recommend anyone that is buying to house to know 100% that that is where you want to be years down the road. We have had such trouble in finding and keeping good jobs. We don't have the luxury of picking up and relocating when we needed to in order to better ourselves. Also think about the upkeep on a house and keeping up a budget for that. Unless you are a handyperson then you are going to have to pay someone to do things that your landlord or maintenance person would have to do if you lived in an apartment. You are going to have bills and taxes that you wouldn't normally have too. Your house payment will fluctuate just like your rent does after your lease is up. Our house payment change every year according to insurance, escrow balances, and state, city, and school district taxes. Owning a home is a BIG decision and every angle should be covered before you buy. We are probably going to have to rent our home out, which is another topic altogether, so we can relocate and find better jobs.

[searching27]

i recently did my taxes. my rent totalled $10,200 for 2005. thats a downpayment or property taxes or whatever. in new jersey house prices are rising STEADILY. i would liek to have somethign to show for my money rather than flushing it all down in rent.

so why dont i buy? cuz i dont know if i want to stay in NJ for any longer than i have to. on the other hand, i have STAYED here longer than i ever intended to.

i hate choices.

let's drink.