Aah, No Wonder Millennials Are Not Buying Homes


#41

Nah. my dad didn’t leave him his. Still under my mom’s name and she don’t even live in it.


#42

Would be yours eventually. Since she is not working, she needs the rents for living. Understandable. My guess is you didn’t give her any money from your pay check.


#43

nah. she’s in hk, that house here is just empty. was coming back like 2-3 months a year before, but last couple years she don’t even want to come back


#44

Then you can stay in it :slight_smile: or volunteer to help rent out the place and keep the change :grin:


#45

don’t want to touch anything that’s not mine.


#46

How is it not yours when you’re the only son?


#47

son yes, but still got a sister.
just don’t want to deal with anything not earn by myself for now.


#48

Those kids will be in for a rude awakening if their parents do a reverse mortgage on the house.


#49

Or if the house not on a trust , and they have to go through probate with no money.


#50

Latte? Avocado? How about AVOLATTE??


#51

When people only have 1 or 2 kids, nobody needs to buy a house if his/her parent has a house. Just make sure your parent pay off the mortgage and do not incur any debt :grinning:


#52

Yes and no. Certainly this is true, but also there are a number of deals that fall through due to parents. I’m not the only one–when I mention what happened to us to agents, they often have their own stories of out-of-state parents not understanding the market and trying to discourage their kids from closing on what would’ve been a good deal.


#53

when we bought ours in 15. Our agent said our down payment is weak 20%. A lot of chinese buying now are pay by parents at leeast 40%. That’s what i told. Lucky ppl have good daddy.


#54

My dad paid zilch and I think he’s a good daddy.


#55

My mom doesn’t want to get involved either. A down payment for us is the value of her whole house.

But aside from her using the Lord’s name in vain when I mention 10-1 ARMs, she says that “it’s your bed to make, and your bed to lie in.” So she at least hasn’t interfered with things. I have taken her out to look at houses. It’s fun to go look at the places in Atherton because she asks all the embarrassing questions like “who the heck would buy this place?”


#56

In theory, he is wrong because he’s not accounting for investing. $245K house = $49000 down payment, He’d have that in 20-21 years, not 33 at a 5% return rate per year. Of course, the down payment would’ve increased too, so there’s a question of differences between house value inflation and investment returns.

But still… therein lies the problem with $4 latte’s when you’re 21.


#57

All that said about coffee, I think there is a balance too. For a while I was reading the Mr. Money Mustache forums, and after about a month, I decided that there’s frugal, and there’s ridiculously crazy (DIY studded snow tires for bikes using nails and duct tape for example…)

I think this one article of his is absolutely a must-read for every single kid/adult in America (and maybe beyond, though):

His point being that the $4 latte’ habit now means less money invested for retirement, and that your style of living makes a huge difference on when you’ll retire. So the question is “what do you really want in life and would you rather have early retirement or that latte’ every day?” Because if you’re having $4 latte’s, you’re probably also eating out, driving an expensive car, and doing other non-frugal things.

But after reading a month’s worth of frugal forum bashing, I think the middle road makes sense. I’m ok forgoing the $4 latte’ but I’d like to not be biking in the snow.

BTW: My favorite quote from that article is this:

Sure Mr. Money Mustache”, some beginners will now say. “Of course you would say that, but I’m still less practiced than you. I still need my Starbucks Lattes and my husband likes TV sports so I can’t cancel cable. Can you please stop punching me in the face and let me adjust my consumption gradually instead of suddenly?”

Wrong Attitude! Even if you are an absolute Beginner Consumer Sucka and your goal is still to consume the maximum amount of luxury products, you are still cheating yourself out of stuff just by running a consumer debt balance. Every dollar you pay in interest to the credit card company is stealing dollars away that you could be using for more luxury purchases for yourself. Those dollars are gone forever, and you’ve permanently lowered your ability to consume luxury products, for the rest of your life.


#58

I never like the Mustache. OK, that has something to do with my hatred for facial hair. But my reasoning is this. Every person has a finite supply of self control. If you wasted it on trivial stuff like saving a few bucks on coffee you may pay for it 100x more in impulse trading that hot stock you see on CNBC.

Every “rational” decision needs to factor in the inconvenient truth that we are all just human. We are flawed from the moment we were born. Many “rational” micro decisions are anything but if you take in the full picture. I think one must read at least one behaviorial finance book. Any one will do because they mostly talk about the same things…

So no on that brand new BMW convertible. Yes on Starbucks coffee.

Damn it I like Starbucks latte! :smile:


#59

Yeah. I agree. it’s the same thing with dieting. You have a good run of weight loss, then something happens and you eat a quart of ice cream. Back to where you started.


#60

Exactly!