In defense of millennials (or any “class”), I am sure some are trying but they face roadblocks that perhaps we didn’t face when we first bought:
- intense competition - domestic and foreign
- low inventory, inventory, inventory
- the high valuations for even starter homes as a result of the above
As that one dude suggested, if we really, really want to free up some inventory we should pass a law like a one time capital gain pass for any RE home sale. I would like to see favorable treatment like the 250k/500k cap gain exclusion extended to say one secondary home (investment) that you sell in your lifetime. People will complain why the favoritism towards RE when you have say Prop 13, etc, but the reality is that we do have a RE availability crisis. No one is building. No one is drinking my alternative prefab Kool-aid. So, to really do it right and fast it has to be coming from the fed gov’t down in the form of some legislation.
I am a builder. I stopped building new homes in 2003. It isn’t worth the aggravation and risk. Can make just as much flipping. Which adds no inventory. Zoning is the issue. Without higher buildings and higher density the housing shortage will continue to get worse.
Good, reduce the supply price will increase. Basic law of economics. Too bad… I guess a whole bunch of millennials will just have to compete to buy my homes when I’m ready to sell them…
I still say you do not want to kill the Golden Goose though. At some point, the filet will be too expensive and people in droves will opt for ribeye…
All my homes are ribeyes not filets…
They are now. Buy in Sacramento and Stockton be ahead of the trend. It will be 20years before the political will happens to force higher density in the RBA
No need to go that far… east bay is all you would need to go.
Well, in 20-30 years from now, your ribeye will be meat for tacos, too old and stale.
Per a conversation I heard on the radio, most landlords are becoming NIMBYs by default. They don’t want a multiunit on their turf. On forums they beach about no supply, in the inside they are celebrating.
Well that’s the point. Why worry about things you can’t change. Make money on what exits not on what should be.
RBA zoning won’t change in my life time
Well, I for one, see it as a balancing act. Really. Yes, I am enjoying the current marketplace but like I said before, you do not want to kill the Golden Goose. Let’s not say all of us are not thinking of the future generations (and I don’t even have kids) and what they face.
I agree. Don’t get that too excited.
Remember, lack of supply of homes pushed by NIMBYs, regulations, and creation of jobs is getting you happy and satisfied. Once the trend is reversed, I believe there’s going to be a disruption, big time.
I really doubt that an immigrant working here under an H1B visa and returning home won’t be able to replicate something he saw over here. Just a tweak here and there and he can accomplish more at home than all his life in the US.
I have confidence that millienals will take over in 20 years and reject the homeless advocates liberals, the nimbyies and enviro nazis that are forcing them to double up in shithole apartments
We already have a thriving YIMBY movement from the millennialns. They are seeing thru our BS about traffic concerns and neighborhood characteristics for what it really is: shameless selfishness.
Millennials can still buy a condo in RBA for 300 to 400k. Not cheap but definitely doable before age 30. Buy early, build equity and appreciation, trade up when you can afford the next step. No excuses.
I have two separate single friends who are looking to buy, but they haven’t been able to because their expectations are too high and don’t want to compromise. They both want newer houses with short work commute (who doesn’t) but can’t afford. One is living with his roommates paying something like $1,500/month and the other is living at home. They don’t understand nor care about the concept of building equity and living more than 10 miles outside of SF is not an option for them. Unfortunately I am afraid they will be stuck in their current situation for a long time…
Tell them to continue. Less competition for investor-landlords like you and almost everyone in this forum.
In not-too-bad parts of San Leandro even SFH can be had for 500 to 600k. SL has BART too damn it.
San Leandro is outside of the 10-mile radius - ain’t gonna cut it. Besides, they don’t want anything in the East Bay.
The friend living at home even has down payment help from her parents. She can buy something in the Excelsior if she really wants to but knowing her she probably thinks it’s too ghetto.
10 mile radius would theoretically cover Daly City as well. Lots of options.
The video mentions getting 15 year mortgage instead of 30. I wouldn’t recommend that and think you can always grow your money faster than 4%. But people may also blow the money off fancy cars and vacations. Being forced to save is fool proof and very powerful. It’s not the best option but all in all not bad either.