Home ownership: Suze Orman's view

  • beaujangle

    Posts: 1701

    May 23, 2014 12:30 AM GMT
    What do you guys think of her view?

  • tj85016

    Posts: 4123

    May 23, 2014 12:38 AM GMT
    She's generally correct, but it depends on the financial specifics in each case.

    Homeownership is a good way to make money . . . and a good way to lose money.

    Bank of America is still screwing mortgage holders.

    And Wall Street is putting a ton of money into rental properties.
  • Posted by a hidden member.
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    May 23, 2014 1:11 AM GMT
    Even when going after a new job, do people usually pick up and move far away from the life they've made where they are, family, friends, or do they first try to find something else nearby? If you've a family, how many different school systems are you going to screw your kid up with? Don't you want your kid to grow up with his friends if that's possible?

    So the idea of a house locking you in place might happen here and there but is that normal? Or is it normal for people to want to stay put where they've built a life?

    Any evidence of that....:::::googling::::::

    Seems Pew somewhat PU'd Suze

    http://www.pewsocialtrends.org/2008/12/17/who-moves-who-stays-put-wheres-home/

    As a nation, the United States is often portrayed as restless and rootless. Census data, though, indicate that Americans are settling down. Only 11.9% of Americans changed residences between 2007 and 2008, the smallest share since the government began tracking this trend in the late 1940s.

    &

    nearly four-in-ten — have never left the place in which they were born. Asked why they live where they do, movers most often cite the pull of economic opportunity. Stayers most often cite the tug of family and connections.

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    Aside from that, given reverse mortgaging during later years, the house would become effectively a bond portion of a portfolio, providing some income additional to social security, whatever pension might be available, other investments, etc.

    Try living in a stock that can't kick you out. The house also will protect against inflation of rents. So I think many of the old arguments still hold some value and her claim that this new assessment of the American dream is based on population movements is not evidenced in the Pew Survey, rather it found the opposite, that people are not moving about more so but rather settling in more than ever before.

    She just wants you to sell cheap now so she can raise the rents on you later.

    EDIT to add (I was curious to see if I could find something more current than 2008 ) :

    Here's what I think looks like the latest findings since 2000.

    http://www.census.gov/hhes/migration/files/5-year_migration.pdf

    Presented at the Annual Meeting of the Population Association of America San Francisco, CA May 3-5, 2012

    The share of movers has declined in each age category since the 2000 Census, especially for age groups 5 to 14 and 25 to 44 and for both males and females alike.


    So settling in not moving about is a continuing trend even given structural changes in corporate employment which cranked up when, late 80s through mid 90s? That condition has not altered this trend so her argument is 90% bogus (allowing for the 10% who just want to start fresh with a city view).
  • Posted by a hidden member.
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    May 23, 2014 7:06 AM GMT
    You could have put this in the Arts and Entertainment forum; this is television after all. I'd let some tv financial adviser influence my decisions just as much as I would some tv doctor (Dr. Phil, Dr. Oz, Dr. Mercola, or whoever it is these days). Her job, just like the tv doctors, is to grab eyeballs. The more eyeballs they grab the more the networks and stations can charge the advertisers.

    Some of what she says might be true, and probably enough is to sound believable and plausible, but rather than listening to her you'd be better off doing your homework and figuring out what's right for you.
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    May 23, 2014 7:14 AM GMT
    I was almost surprised people stay in the same town that much :/

    Suze Orman is very charismatic and after reading Lumpy's I'm more inclined to believe she is the Dr. Phil variety tough love and buzzwords
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    May 23, 2014 7:18 AM GMT
    Quite a few people are still living the life that she claims no longer exists: government workers. State, county, city, or federal. I worked for the University of California and am getting a check every month, and every few years get a cost of living increase. These checks will continue to arrive until I die. And they're paying for my health insurance.
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    May 23, 2014 7:41 AM GMT
    Wow

    So she serves as smoke or disinformation as well, logical. Awkward

    One would imagine a person might tap her shoulder an say hey, Suze, that's not true.

    Lol oh media, how I don't miss you... except Rick and Morty