[Serious] How is the millennial generation buying homes?

[s0me0nesmind1]

ouch



ouch times 1000

i know a guy who has loaned money to family members not knowing if he'd ever get it back. he set a lifetime limit and he told them about it up front - 20$k total. big enough to help get them through a few tough months, small enough that it wouldn't hurt him in a big way if he never got the money back. luckily he did though. and no loans after that, in the future it was on them.

I can't remember if it was Dave Ramsey or someone else, but the general statement I remember was "Never loan money to family". If you want to help your family, give them a gift and don't expect it back.

Loaning family members - hell - even friends is one of the worst things you can do in life.

 

[Red Squirrel]

Loaning family members - hell - even friends is one of the worst things you can do in life.

I fell in that trap. One of my friend's friend is in life trouble, his wife randomly ditched him, like she want complete batshit crazy on him calling cops and making up stories etc and he basically lost everything including his house and even his reputation, because of all the rumours she spread on him. Does not help that he used to be into drugs but came out clean, so she is using his history against him. She does not actually want a divorce she just wants him out of her life, so he's stuck with zero money and no place to live and he can't even meerly text her, because of the restraining order. They also ran a business together so he lost his job too given it was his business. She has all the merchandise (was a store).

So at first I felt bad and I lent him money, he said he had money coming soon and he would pay me back the next day. Yeah, they all say this.

Long story short I have at least $200 so far I've "lent" him that I'll never see again. Next time he asks it's no.

Thing is he is a nice guy, a geek like me into computers and stuff, and I don't have lot of friends so figured great, a new friend but any time he reaches out to me or if I happen to ask how he's doing, he just wants to borrow money. He's gone through depression and anxiety because of all the crap his wife did to him and his name is mud in town now because of all the rumours against him, but it's been over a year now, as hard as it is he needs to find a way to get back on his feet. He pretty much needs to move out of town and start over. It sucks royally, but unfortunately life sucks sometimes.

He found an apartment, not even sure how he's paying rent tbh. Even his parents stopped wanting to help him. At first I thought they were kind of mean, but now I think I understand. He does not seem like the type that wants to help themselves.

 

[rh71]

Paying off our house was the best feeling in the world. From that point forth, every dollar you bring home from work is yours to keep and spend (other than taxes). How great is no debt?

Oh wait, we have kids.

 

[GodisanAtheist]

I can't remember if it was Dave Ramsey or someone else, but the general statement I remember was "Never loan money to family". If you want to help your family, give them a gift and don't expect it back.

Loaning family members - hell - even friends is one of the worst things you can do in life.

- Might have been my grandpa Cause he told me almost verbatim the same thing to me when I was much younger.

Either gift them money or don't give them anything at all, a loan is basically putting a price on your relationship with that person as well as your peace of mind.

 

[Red Squirrel]

Paying off our house was the best feeling in the world. From that point forth, every dollar you bring home from work is yours to keep and spend (other than taxes). How great is no debt?

Oh wait, we have kids.

And still have all the utility bills etc. But yeah it's great to pay off the house faster. I'm working on paying down my house faster as the faster you pay the less interest you pay too and the faster you get to a point where you have a decent chunk of extra income that can then go towards investments or what not.

I'm at around 80k or so left on mine and recently upped my payment. I also want to buy an off grid property to build a cottage and eventually live there so figure the faster I pay the mortgage the faster I can make that a reality. I can technically afford it now, but in the meantime until I find land I want I should just try to pay off the house. I have around 30k in company stocks too and most of the parcels of land I find that are close to what I want are in the 40-50k range so I may even be able to buy it cash if I give it more time. though I sometimes wonder if I should just take that money and put it on the mortgage.

 

[Lanyap]

Didn't read the whole thread yet but as an old fart here's what faces most millennials from a cost of living perspective versus the "old days". I'm sure you guys/gals can think of more. Salaries have obviously gone up but have not kept up with the typical now stuff everyone wants but doesn't necessarily need.

TYPICAL NOW VS 30+ YEARS AGO
- Smart phone ($300-1,000) VS a couple of landline phones in the house ($5-15)
- Wireless phone plan ($40-60/m) VS landline service ($10-15/m)
- Multiple computing devices like desktops, tablets, laptops ($2000+) VS no devices ($0)
- Multiple gaming systems ($200-600) VS board games ($5+)
- Internet ($40-75/m) VS no internet ($0)
- Network gear ($100+) VS no network gear ($0)
- Cable TV ($75-105/m) VS limited cable TV ($10-20+/m) and/or air antenna ($0)
- Streaming TV ($10-125/m) VS no streaming TV ($0)
- Multiple TVs ($2,000+) VS one TV in the living/family room ($100) and you got more exercise getting up and down
- Decent new car ($25,000) VS the first car that I bought - nice 1973 Olds Cutlass Supreme used, 1 year old ($3,500)
- Every fifth car you see on the road today is luxury - Mercedes, BMW, Lexus, Land Rover, Audi, Jaguar VS seeing a Cadillac about once a week
- Gasoline ($2.40-$4.50) VS ($.40-.60)
- Higher property taxes
- Higher cost of homes (almost everybody wants granite counter tops, luxury bathrooms, larger rooms, remodel every few years to keep up with trends, etc. VS Formica counter tops, standing room only master bath, small rooms and live in the house for 30+ years without remodeling - just repairs.
- New kitchen appliances ($2,000-5,000+) depending on if you get fridge WiFi + LED screen VS old ($250-750)
- Washer and dryer ($1,500-2,000+) depending on if you get the WiFi model VS old ($250-500)
- Home utility bills $^^
- Middle class in the 50s, 60s and 70s had basic stuffs. Only the rich had nice stuffs
- Middle class in the 80s+ started having nice stuffs, the rich had even nicer stuffs
...

I'm tired now. I need to go take my nap.

 

[s0me0nesmind1]

Didn't read the whole thread yet but as an old fart here's what faces most millennials from a cost of living perspective versus the "old days". I'm sure you guys/gals can think of more. Salaries have obviously gone up but have not kept up with the typical now stuff everyone wants but doesn't necessarily need.

TYPICAL NOW VS 30+ YEARS AGO
- Smart phone ($300-1,000) VS a couple of landline phones in the house ($5-15)
- Wireless phone plan ($40-60/m) VS landline service ($10-15/m)
- Multiple computing devices like desktops, tablets, laptops ($2000+) VS no devices ($0)
- Multiple gaming systems ($200-600) VS board games ($5+)
- Internet ($40-75/m) VS no internet ($0)
- Network gear ($100+) VS no network gear ($0)
- Cable TV ($75-105/m) VS limited cable TV ($10-20+/m) and/or air antenna ($0)
- Streaming TV ($10-125/m) VS no streaming TV ($0)
- Multiple TVs ($2,000+) VS one TV in the living/family room ($100) and you got more exercise getting up and down
- Decent new car ($25,000) VS the first car that I bought - nice 1973 Olds Cutlass Supreme used, 1 year old ($3,500)
- Every fifth car you see on the road today is luxury - Mercedes, BMW, Lexus, Land Rover, Audi, Jaguar VS seeing a Cadillac about once a week
- Gasoline ($2.40-$4.50) VS ($.40-.60)
- Higher property taxes
- Higher cost of homes (almost everybody wants granite counter tops, luxury bathrooms, larger rooms, remodel every few years to keep up with trends, etc. VS Formica counter tops, standing room only master bath, small rooms and live in the house for 30+ years without remodeling - just repairs.
- New kitchen appliances ($2,000-5,000+) depending on if you get fridge WiFi + LED screen VS old ($250-750)
- Washer and dryer ($1,500-2,000+) depending on if you get the WiFi model VS old ($250-500)
- Home utility bills $^^
- Middle class in the 50s, 60s and 70s had basic stuffs. Only the rich had nice stuffs
- Middle class in the 80s+ started having nice stuffs, the rich had even nicer stuffs
...

I'm tired now. I need to go take my nap.

You realize a lot of that is choice right?

I remember growing up there was 1 computer in the house. You did this thing called "take turns" - I don't know if any of you guys have heard of that concept.... But what it is is that you have to distribute who utilizes the machine into different time slots, since multiple people cannot use it at the same time. Have you heard of this?

Hell, no one needs the latest and greatest game console. Play board games or just buy the last generation console for $40 along with used games on eBay or something. I can entertain myself for days by just playing classic SNES games and such.

Cars? I've never bought one new - only used. It's also why my retirement is nice and cushy and I just moved into a 4k+ sqft home.

All of this is choice choice and choice. You CHOOSE to buy a smart fridge instead of a standard fridge. You CHOOSE to live in a home you can barely afford. You CHOOSE to buy a super duper deluxe washer/dryer. You CHOOSE to pay $180/month for 500 cable TV channels when you only watch 7.

 

[Lanyap]

You realize a lot of that is choice right?

I remember growing up there was 1 computer in the house. You did this thing called "take turns" - I don't know if any of you guys have heard of that concept.... But what it is is that you have to distribute who utilizes the machine into different time slots, since multiple people cannot use it at the same time. Have you heard of this?

Hell, no one needs the latest and greatest game console. Play board games or just buy the last generation console for $40 along with used games on eBay or something. I can entertain myself for days by just playing classic SNES games and such.

Cars? I've never bought one new - only used. It's also why my retirement is nice and cushy and I just moved into a 4k+ sqft home.

All of this is choice choice and choice. You CHOOSE to buy a smart fridge instead of a standard fridge. You CHOOSE to live in a home you can barely afford. You CHOOSE to buy a super duper deluxe washer/dryer. You CHOOSE to pay $180/month for 500 cable TV channels when you only watch 7.

Yes, choice, that's why I said "typical now stuff everyone wants but doesn't necessarily need".

 

[Red Squirrel]

Some of it is NOT choice though. Like utility bills, taxes, mortgage/rent and other reoccurring costs. Those are the real killers. Stuff like computers are not so bad because you're not paying that every month.

Oddly enough a lot of 1 time cost things like electronics are way cheaper now than they were before, but all the reoccurring costs keep going up. I would rather pay 5k for a TV and have utility bills that cost the same as they did in the 90's. In the end it's cheaper.