The Only Way Millennials Can Afford To Live In Big Cities

  • metta

    Posts: 39089

    Jan 09, 2016 6:03 AM GMT
    The Only Way Millennials Can Afford To Live In Big Cities

    http://www.huffingtonpost.com/entry/how-much-home-millennial-can-afford_568fcf6ee4b0a2b6fb6facd0
  • roadbikeRob

    Posts: 14305

    Jan 09, 2016 2:41 PM GMT
    Avoid the big coastal cities is the most viable option for Millennials.
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    Jan 09, 2016 4:07 PM GMT
    More goes into deciding where to live than just the size of the house... That's why so many stick it out in those coastal cities. Nobody wants to live in like Oklahoma or Kansas.
  • tj85016

    Posts: 4123

    Jan 09, 2016 4:09 PM GMT
    who ever said this was just limited to millennials?
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    Jan 09, 2016 7:06 PM GMT
    What a lame, shallow "article!" The author, with a little research and thought, could have uncovered the many first-time buyers programs that many large cities offer, featuring guaranteed down payments and sub-market interest rates. Then, there's always the roomates-for-awhile option, along with that forgotten feature of economy: frugality. Doing w/o a car in a large city is not only possible, but also makes a lot of sense. How do I know this? Because it's how I bought my first home, a 750sf condo in SF's Mission District for $112K in 1984, which sold for 5 times that amount in 2003. Now, similar units in the same complex are selling for between $800K and $1M. With a little thought, planning, and responsible living, anything's possible.
  • tj85016

    Posts: 4123

    Jan 09, 2016 7:09 PM GMT
    MGINSD saidWhat a lame, shallow "article!" The author, with a little research and thought, could have uncovered the many first-time buyers programs that many large cities offer, featuring guaranteed down payments and sub-market interest rates. Then, there's always the roomates-for-awhile option, along with that forgotten feature of economy: frugality. Doing w/o a car in a large city is not only possible, but also makes a lot of sense. How do I know this? Because it's how I bought my first home, a 750sf condo in SF's Mission District for $112K in 1984, which sold for 5 times that amount in 2003. Now, similar units in the same complex are selling for between $800K and $1M. With a little thought, planning, and responsible living, anything's possible.


    plus you had to put 20% down (in seasoned cash) like I did
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    Jan 09, 2016 7:12 PM GMT
    tj85016 said
    MGINSD saidWhat a lame, shallow "article!" The author, with a little research and thought, could have uncovered the many first-time buyers programs that many large cities offer, featuring guaranteed down payments and sub-market interest rates. Then, there's always the roomates-for-awhile option, along with that forgotten feature of economy: frugality. Doing w/o a car in a large city is not only possible, but also makes a lot of sense. How do I know this? Because it's how I bought my first home, a 750sf condo in SF's Mission District for $112K in 1984, which sold for 5 times that amount in 2003. Now, similar units in the same complex are selling for between $800K and $1M. With a little thought, planning, and responsible living, anything's possible.


    plus you had to put 20% down (in seasoned cash) like I did

    No, I only had to put down 10% in order to qualify. At the time, the "preferential" interest rate was 12-something percent, fixed 30, but over the years I successively re-fi'd it down to below 4% before I sold. Same for the place I now live in: my rate is 2.75% fixed 15, and I've already paid the loan down by 1/3.
  • tj85016

    Posts: 4123

    Jan 09, 2016 7:15 PM GMT
    ^^

    nice, I still had to put down 20% (NJ, NY, CT, PA were pretty much all the same)

    if people think buying real estate is difficult now, the 80's were fucking brutal
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    Jan 09, 2016 7:18 PM GMT
    tj85016 said^^

    nice, I still had to put down 20% (NJ, NY, CT, PA were pretty much all the same)

    if people think buying real estate is difficult now, the 80's were fucking brutal

    That they were! The one good thing was the high-interest CDs I bought, mostly 5 year-ers, which proved to be the wisest investment I've ever made. Some of those suckers were earning 14%! icon_cool.gif
  • tj85016

    Posts: 4123

    Jan 09, 2016 7:21 PM GMT
    yes, back East, we even had to pay some idiot attorney (no offense) $1000 to rubber stamp some loan docs to close lol (back when $500, $1000 was serious money)

    bonds were THE best investment for a long time

    but most "financial advisors" just sucker people into buying stocks, but it's all in the timing
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    Jan 09, 2016 7:28 PM GMT
    tj85016 saidyes, back East, we even had to pay some idiot attorney (no offense) $1000 to rubber stamp some loan docs to close lol (back when $500, $1000 was serious money)

    bonds were THE best investment for a long time

    but most "financial advisors" just sucker people into buying stocks, but it's all in the timing

    I agree: most people do NOT need a lawyer when it comes to buying or selling a home. And, you CAN time the market. Like so much else, all it requires is a little patience and information.
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    Jan 09, 2016 8:21 PM GMT
    tj85016 saidwho ever said this was just limited to millennials?


    Less money saved, school tuition wasn't even close to what it costs now, electronic bills regarding phone, Internet, cable, etc isn't what it was in the slightest, and minimum wage hasn't changed much at all (relatively speaking) to compensate for any of these added expenses.

    I moved out at 19 in the nyc are without any help from family. What I can't stand are people 40 and up telling me to go back to school as if I want to be in debt. Maybe if I had the support, but I don't, plus there's still time anyway. The whole college right after HS bs they shove down your throat throughout hs is the issue imo, especially today with the amount of student loan debt this nation faces. Not everyone knows what they want to be in life as a 14-17 year old kid.
  • roadbikeRob

    Posts: 14305

    Jan 09, 2016 8:43 PM GMT
    BP201 said
    tj85016 saidwho ever said this was just limited to millennials?


    Less money saved, school tuition wasn't even close to what it costs now, electronic bills regarding phone, Internet, cable, etc isn't what it was in the slightest, and minimum wage hasn't changed much at all (relatively speaking) to compensate for any of these added expenses.

    I moved out at 19 in the nyc are without any help from family. What I can't stand are people 40 and up telling me to go back to school as if I want to be in debt. Maybe if I had the support, but I don't, plus there's still time anyway. The whole college right after HS bs they shove down your throat throughout hs is the issue imo, especially today with the amount of student loan debt this nation faces. Not everyone knows what they want to be in life as a 14-17 year old kid.
    Exactly, that is why it is a horrible idea to go to college straight out of high school. These 18 year olds of today are nowhere near as mature and responsible as the 18 year olds 20 to 30 years ago. But try bringing that to the attention of today's parents who are largely responsible for 18 year old adults not even ready to accept responsibility and stand on their own two feet. If these kids were not so spoiled, pampered and overprotected by mom and dad they would have a clue on what to pursue for a career and what it is like to earn a buck.
  • tj85016

    Posts: 4123

    Jan 09, 2016 9:09 PM GMT
    BP201 said
    tj85016 saidwho ever said this was just limited to millennials?


    Less money saved, school tuition wasn't even close to what it costs now, electronic bills regarding phone, Internet, cable, etc isn't what it was in the slightest, and minimum wage hasn't changed much at all (relatively speaking) to compensate for any of these added expenses.

    I moved out at 19 in the nyc are without any help from family. What I can't stand are people 40 and up telling me to go back to school as if I want to be in debt. Maybe if I had the support, but I don't, plus there's still time anyway. The whole college right after HS bs they shove down your throat throughout hs is the issue imo, especially today with the amount of student loan debt this nation faces. Not everyone knows what they want to be in life as a 14-17 year old kid.


    oh, so a 42 year old with a family of 4, doesn't face the same issues buying housing?

    it's not a millennial problem, it's a national problem
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    Jan 09, 2016 9:29 PM GMT
    I had a mixed blessing: 2 years of college right out of HS, then the USN x 3 years, courtesy of a lottery number of 8, then back to college to finish my BA in 7 semesters all told. I wasn't too happy about the USN at the time, but in retrospect it was a good thing for my development and maturation process - and the GI Bill bennies sure came in handy, too. But, I agree: straight out of HS and into college is NOT always the best thing for everyone, especially if they go on to do well completely w/o "benefit" of a BA.
  • tj85016

    Posts: 4123

    Jan 09, 2016 9:47 PM GMT
    ^^

    oh, you got nailed in the draft? I missed the draft by a year or so
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    Jan 09, 2016 9:50 PM GMT
    tj85016 said^^

    oh, you got nailed in the draft? I missed the draft by a year or so

    Yep, that's me: Mr. Lucky (aka Mr. Mean, Old, Fat, Ugly Man!). Made the most of it, though and spent most of my active duty in the Mediterranean. Will be returning there with a former shipmate and his wife later this year to revisit our old haunts.
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    Jan 09, 2016 11:08 PM GMT
    tj85016 said
    BP201 said
    tj85016 saidwho ever said this was just limited to millennials?


    Less money saved, school tuition wasn't even close to what it costs now, electronic bills regarding phone, Internet, cable, etc isn't what it was in the slightest, and minimum wage hasn't changed much at all (relatively speaking) to compensate for any of these added expenses.

    I moved out at 19 in the nyc are without any help from family. What I can't stand are people 40 and up telling me to go back to school as if I want to be in debt. Maybe if I had the support, but I don't, plus there's still time anyway. The whole college right after HS bs they shove down your throat throughout hs is the issue imo, especially today with the amount of student loan debt this nation faces. Not everyone knows what they want to be in life as a 14-17 year old kid.


    oh, so a 42 year old with a family of 4, doesn't face the same issues buying housing?

    it's not a millennial problem, it's a national problem


    Well you're right, but what about the millennial's with kids? A lot of millennial's have parents in their 40s so if it's bad enough for their parents... Heh.
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    Jan 09, 2016 11:14 PM GMT
    The bottom line is that it is much different for those under 35 than it was for those over 35. Relative to inflation, they are paid far less than the older generation was, they are finishing college with crippling debt from getting degrees that cost far more relative to inflation. The cost of college has exploded over the last 20 years, and that has seriously damaged this generation's ability to purchase a home.

    I have a friend who just finished becoming a doctor, but has $120,000 in college debt. Sure, she will be able to buy a house-- but when? Once she pays off that 120 Gs AND saves up a down payment... That's many years off, and she's already 33.
  • roadbikeRob

    Posts: 14305

    Jan 10, 2016 11:00 PM GMT
    Millennials are not alone in this troubling scenario. A large number of younger baby boomers born between 1956 and 1964 and Generation Xers are experiencing serious financial pressures thanks to downsizing, outsourcing, and the lack of good paying job opportunities. Many junior boomers and Xers are living from paycheck to paycheck and most of us have four year college degrees. Many of us have had to either delay or literally give up on pursuing the American Dream because it is just not attainable anymore. So it is not just about the Millennials facing an uncertain future. Even some of the older baby boomers born before 1956 are not doing all that great and many of them are staying in the workforce longer because they cannot afford to retire. Meanwhile Wall Street and the CEOs continue to shovel huge wads of money into their already bursting pocketbooks. Go figure.
  • rnch

    Posts: 11524

    Jan 11, 2016 2:37 AM GMT
    Perhaps young, first time home/apartment renters/buyers perhaps need to "downsize" their expectations?

    Does a single person or couple REALLY need a 4 bedroom, 3 bath, 2000-plus square foot house for their first home?

    Watching totally divorced from reality, unrealistic television shows and movies have given the mills a warped sense of what to expect out in "The Real World".