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re: Why are homeownership rates precipitously declining?
Posted on 8/30/16 at 4:34 pm to Zappas Stache
Posted on 8/30/16 at 4:34 pm to Zappas Stache
quote:
That and property taxes and insurance are tax deductible which helps.
I agree it helps. Maybe reduces the true cost by 30%.
quote:
Insurance pays for that when a hail storm rolls in.
I mean, that's hardly a viable financial plan.
quote:
Its not much time.
You must have a very low maintenance house. Good for you.
quote:
I understand people wanting to rent. But my house has appreciated about 175% since I've owned it. Even during the financial/ real estate freefall of 2008-13 it really never depreciated.
Again, your investment paid off. Good for you.
quote:
So it is an investment that will pay off in the long run.
That's not a logical conclusion for a lot of people. There is no guarantee that any property will appreciate, or even break even, so it is by definition a risk. If you want to invest in real estate, have at it. But it's not the sure fire thing that people think it is. There are a ton of people in this country who are upside down on their mortgages through factors that they couldn't control.
This is coming from a dude that owns a house and made money on the sale of his last house. Just because it happens to me or you doesn't mean it happens to everybody.
1
Posted on 8/30/16 at 6:10 pm to SlowFlowPro
Great points
Posted on 8/30/16 at 6:45 pm to Tigeralum2008
quote:
Most millenials view home ownership as them being anchored to a city. In this economy it helps being able to move around free from worrying about selling your house.
Also renting means you don't need to know how to fix things around the house/apartment
Have you seen how much housing costs at the biggest housing markets across the country?
It's impressive how much the average "starter" home goes for these days. Millenials and most middle class can't afford it.
Posted on 8/30/16 at 7:11 pm to Paul Allen
Millennials choosing to live in mom and dad's basement.
Posted on 8/30/16 at 7:16 pm to SlowFlowPro
quote:
Less government-regulated financial systems basically creating housing bubble after housing bubble doesn't help
FIFY
Posted on 8/30/16 at 7:24 pm to Epic Cajun
All of what this guy said. The new homeowner group people middle 20s to early 30s are delaying starting a family until they are more financially sound. In the group of friends I grew up with 3 started a family in their middle 20s and bought a house in the suburbs. 2 chose to stay in bigger cities and rent including myself. And one lives in his parents guest house and does a bunch of traveling for work. Two of us that don't own a home have student loan debt from grad school.
I could afford to buy in a gentrifying neighborhood in Nola but mortgage payments will likely be close to the same as I pay in rent. Plus my career goals still need to be achieved which may require a move within the next 5 years. Just don't see the need to buy.
I could afford to buy in a gentrifying neighborhood in Nola but mortgage payments will likely be close to the same as I pay in rent. Plus my career goals still need to be achieved which may require a move within the next 5 years. Just don't see the need to buy.
Posted on 8/30/16 at 7:47 pm to TunaTigers
Mortgage rates are too low...meaning banks arent making money and they'll only lend to good credit borrowers...720 credit score or higher. Once rates go up they'll lower credit standards down once again and start lending more to other borrowers cause there's a bigger margain for them and it'll be worth the risk...more profit for banks.
Posted on 8/31/16 at 8:23 am to RogerTheShrubber
quote:
People realize housing prices are still over inflated and a correction will be devastating. I understand this reasoning.
Not in the neck of the woods....maybe in southern california.
around here it's still cheaper to buy an existing home than to build a new one....as long as that's the case our housing market will be more stable than in the rest of the country.
Posted on 8/31/16 at 8:25 am to LSUBanker
Mortgage rates have been low for 6 years plus now
Posted on 8/31/16 at 8:29 am to Paul Allen
Because it's completely a waste of money (I've owned one for 13+ years). Banks and insurance companies are the least capitalistic entities in America, I bet China has better homeowner experiences than we do.
Posted on 8/31/16 at 8:42 am to Gaston
I think the two biggest factors are:
1.) not wanting to be tied up in one place
2.) the younger generation doesn't want a 'starter home'
I can't tell you how many people I know under 30 buy way way too much house. I know a ton of people who buy nicer homes then their parents own.
Thanks to Instagram, Facebook, Pinterest, and social media in general all the freaking women want these elaborate houses. Growing up my dad was a military officer and we never had a home over 1500 sq ft for a family of 5 until I was in HS. How many college graduates buy sub 1500 sq ft houses now?
Owning a home isn't expensive, owning a nice home is. I always laugh at the people that say renting long term is cheaper, because it's not at all. But renting a smaller crappier place is cheaper than owning your 'dream home'. Rental houses and owned homes are rarely compared apples to apples.
1.) not wanting to be tied up in one place
2.) the younger generation doesn't want a 'starter home'
I can't tell you how many people I know under 30 buy way way too much house. I know a ton of people who buy nicer homes then their parents own.
Thanks to Instagram, Facebook, Pinterest, and social media in general all the freaking women want these elaborate houses. Growing up my dad was a military officer and we never had a home over 1500 sq ft for a family of 5 until I was in HS. How many college graduates buy sub 1500 sq ft houses now?
Owning a home isn't expensive, owning a nice home is. I always laugh at the people that say renting long term is cheaper, because it's not at all. But renting a smaller crappier place is cheaper than owning your 'dream home'. Rental houses and owned homes are rarely compared apples to apples.
This post was edited on 8/31/16 at 8:44 am
Posted on 8/31/16 at 8:48 am to baldona
People don't have Jobs. That's why.
A mortgage lender requires you to be employed. We have the highest % of the population not working since the late seventies.
It's not rocket science
A mortgage lender requires you to be employed. We have the highest % of the population not working since the late seventies.
It's not rocket science
Posted on 8/31/16 at 9:03 am to baldona
I would say the main reason is that younger folks just starting out simply do not have the money to put down a 20% payment towards purchase. We can come up with all these other reasons, in which they will be valid to a certain extent. But I'm thinking not having the money is the main reason. And it probably has to do with student loans. Hell, in some cases...the monthly payment on a student loan is damn near close to a smaller home's monthly note.
Posted on 8/31/16 at 9:04 am to Paul Allen
this can probably be associated with the same reasons why marriage rates are on the decline
Posted on 8/31/16 at 9:06 am to Gaston
quote:
Because it's completely a waste of money (I've owned one for 13+ years). Banks and insurance companies are the least capitalistic entities in America, I bet China has better homeowner experiences than we do.
That's a bit of a stretch...Hmmm....if you take out a 15 year mortgage, pay your house off and don't sell it do you realize that you could live rent free for the rest of your life? It's pretty much the equivalent of keeping a car....except it takes much longer for the house to be worth nothing than it does a car.
Say what you want about the expenses of keeping up the house they will never come close to what it costs you to rent in a comparable neighborhood.
This post was edited on 8/31/16 at 9:07 am
Posted on 8/31/16 at 9:19 am to Paul Allen
1) People are staying in school longer, which means waiting later to get married and start a family and buy a house. It's very hard for a single income to afford a decent house these days.
2) Back when someone started working for a company at age 20 and retired at age 65, there was no need to consider moving so they just bought a house and stayed in it. Now, people are likely to change jobs and even locations, all of which is a drag if you have a house around your neck.
3) If an individual actually can qualify based on income for a mortgage, they struggle saving the money needed for a down payment and to move.
2) Back when someone started working for a company at age 20 and retired at age 65, there was no need to consider moving so they just bought a house and stayed in it. Now, people are likely to change jobs and even locations, all of which is a drag if you have a house around your neck.
3) If an individual actually can qualify based on income for a mortgage, they struggle saving the money needed for a down payment and to move.
Posted on 8/31/16 at 9:21 am to Tigeralum2008
quote:
Also renting means you don't need to know how to fix things around the house/apartment
Yes! Because every Landlord is "johnny on the spot" immediately whenever anything breaks or slows down in your rental flat.
Posted on 8/31/16 at 9:35 am to baldona
quote:
I can't tell you how many people I know under 30 buy way way too much house. I know a ton of people who buy nicer homes then their parents own. Thanks to Instagram, Facebook, Pinterest, and social media in general all the freaking women want these elaborate houses. Growing up my dad was a military officer and we never had a home over 1500 sq ft for a family of 5 until I was in HS. How many college graduates buy sub 1500 sq ft houses now?
Fact.
Posted on 8/31/16 at 9:36 am to Paul Allen
This is an interesting thread. I've owned three homes in my life. I have a small beach home that I intend to retire to in a few more years. My primary home in central Florida took a huge hit in value but is finally back to what I paid for it 12 years ago. This house will be paid off by the time we move to the beach. I'm leaning toward renting it to generate a perpetual income.
Younger professionals have gotten screwed in a lot of ways in terms of income, debt and upward mobility. I completely understand why renting makes better sense in many situations.
I delayed my first home purchase until my late 20's. It was smart because my career was unstable at that time.
Younger professionals have gotten screwed in a lot of ways in terms of income, debt and upward mobility. I completely understand why renting makes better sense in many situations.
I delayed my first home purchase until my late 20's. It was smart because my career was unstable at that time.
This post was edited on 8/31/16 at 1:41 pm
Posted on 8/31/16 at 9:39 am to Gaston
quote:
Because it's completely a waste of money (I've owned one for 13+ years).
You must live in a shitty place. The homes I have owned in Austin have made me a ton of money. I've ridden the appreciation of home values to a quite substantial nest egg.
This post was edited on 8/31/16 at 9:48 am
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