What Would Happen If All Young People Gave Up 'Luxuries' to Buy a House?

[RageKage]

Economy would likely collapse

 

[Pressure]

Hopefully as these old folks die they will pass down their property to their children.

NM, that generation had 7 kids and the property will be sold.

 

[88m3]

It can give you equity...that generally hasn't been the case for Black folks.

It can give you passive income streams...that generally hasn't been the case for Black folks.

Your last point is what I would call true but trivial in the context of the conversation.

Homeownership is overly romanticized in this country and it being one of the core parts of our economy has been a net negative in my opinion.

With record home appreciation and high rents over the last decades I find that hard to believe

It's important to consider the alternatives


If we erase homeownership it will be replaced by what, Comrade?


Will wages increase?

Stock options?


We clearly need something as SSI doesn't cut it and pensions are all but extinct.

 

[Jalether]

What are these luxuries that young people are expected to give up??

avocado toast and pumpkin spiced latte duh

 

[ogc163]

With record home appreciation and high rents over the last decades I find that hard to believe

We've had this discussion before, and I've pointed out and provided evidence that appreciation that occurs for the general population doesn't apply to the Black community.

If we erase homeownership it will be replaced by what, Comrade?

1) I never stated nor implied that we should erase homeownership.

2) Index funds, bonds, and skill acquisition/certifications (that's reasonably priced) are alternatives to placing money into a home.

 

[chico25]

Yea that means fukk all when buying a house. First off,mortgages are gonna be higher then rent and if u have other expenses fukking up your credit, what makes u think banks wanna take a risk? Everyone should know that renting does fukk all to your credit good or bad. Maybe that renter should focus on things that matter to help get a loan for a house instead of crying on social media like 99% of Americans do.

Mortgages aren't necessarily higher than rent. I recently bought a house in a planned community. That community is adding rental properties in the same neighborhood and the starting rent is significantly higher than my mortgage.

I don't think you understand either. How much would her mortgage payment be on a 480k. house with 0% down?

Including property taxes and insurance probably about $2,000 per month. Which would likely be getting them something better and larger than what they have been paying rent on for the past 10 years.

 

[Hood Critic]

what if the luxuries are debt?

That could very well be the case but luxuries and debt aren't synonymous. We know this because in our little corner of the internet here, we're often talking about everything from COL, inflation, housing costs, etc., while a lot of us are doing better than the average person.

A few lattes a week and a Netflix subscription aren't keeping most people from being able to afford a home.

 

[88m3]

That could very well be the case but luxuries and debt aren't synonymous. We know this because in our little corner of the internet here, we're often talking about everything from COL, inflation, housing costs, etc., while a lot of us are doing better than the average person.

A few lattes a week and a Netflix subscription aren't keeping most people from being able to afford a home.

Absolutely. I don't think forgoing Netflix, gym memberships, budget holidays and by not drinking coffee it will lead to homeownership but it's probably a small part of the equation. The real issue is probably wages, loan underwriting standards, and supply.

I used to have a coffee a day and a year of that is like a modest mortgage payment or a months rent in a mediocre place.

 

[dora_da_destroyer]

This assumes homeownership is a net positive, there's evidence that's not generally the case for Black folks.

I think living in a frugal manner is a good thing, but not necessarily to then subsequently spend on a home.

Agreed. We gotta stop this hone ownership fallacy just like the go to college fallacy. I definitely think there’s value to owning, but it’s not the only way to build wealth or safety.


Furthermore, I hate the “deny every luxury or splurge to hoard for tomorrow” mentality when tomorrow isn’t promised. At some point you need to make allowance for enjoying your present. That doesn’t mean be stupid, but if the worst thing you’re doing is buying a latte daily or taking two vacations a year, you’re not doing something reckless like gambling your rent money every weekend

 

[mastermind]

So is this the new, “if only kids avoided drinking expensive starbucks coffee“ or “poor people should stop buying Jordans and iPhones,” nonsense?

Not a surprise a few of the poor people should die folks are advocating for this including the thread starter.

 

[ADevilYouKhow]

So is this the new, “if only kids avoided drinking expensive starbucks coffee“ or “poor people should stop buying Jordans and iPhones,” nonsense?

Not a surprise a few of the poor people should die folks are advocating for this including the thread starter.

Try exercising your eyes before your fingers, Bozo.

It’s Vice not the Heritage Foundation or some shyt

 

[mastermind]

Try exercising your eyes before your fingers, Bozo.

It’s Vice not the Heritage Foundation or some shyt

You need to exercise critical thinking. This could have come from Mother Jones, The Intercept, Black Agenda Report or Democracy Now, and my post wouldn't change.

 

[RageKage]

Everyone's circumstances are different but 2 years ago roughly I was 7 years out from paying my mtg off and rates were good enough to reconsider re-financing. I was just going to continue the 15 but we also looked at a 30. When presented what my new mortgage would be under that scenario I nearly fell out of my chair laughing. It is less than 1/2 of what the apartment floor plan we left when we moved here costs at present and that includes property taxes & insurance.

I saw that and it was a no brainer, have one kid entering college this year and another 5 years away so I am stacking the savings in their 529 at present.

I know buying a place doesn't fit everyone's lifestyle or goals but their are tremendous advantages at times.

 

[Amo Husserl]

.

 

[ADevilYouKhow]

You need to exercise critical thinking. This could have come from Mother Jones, The Intercept, Black Agenda Report or Democracy Now, and my post wouldn't change.

You didn’t read the article. Typical!