patrick.net

I didn't own a house, until I was in my 40's. I was incapable of owning a house until then. Not because of lack of funds, but more because of not having financial maturity. Or a nice way of saying "I didn't have my Shit together". But I always held firm that one day I would get my crap together.

I can't see for the life of me, how the Milwhinials will ever get their crap together. They have placed their destiny and fate in the hands of Blog writers and opinion Opted pieces, that beat them down daily.

I'm not even supposed to have a job let alone a house. I have these things because I ignore author and articles like this one.

How can you slam Gen Y for not having their crap together right after admitting that it took your 40 years to sort your own shit out?

It looks like the boomers are the ones who are going to be in limbo for the next 20 years, trying to sell their retirement to everyone else.

One of the problems for them or any age group is the temporary nature of jobs. Back then, if you got in, there was a good chance you could stay in the same company for decades or at least move around in the same area.

Now, you may have to move to another state or even country. Now if you are in the mid west or some place, where houses are 100k-200k, fine buy a house. But CA prices, you can never hope to pay it off and then if you lose your job-well it ain't as easy to get one in the same area. Factor in commuting costs on today's gas prices and really not much savings. I know people who commute over 100 mi round trip everyday -driving at today's prices. You gotta go where the jobs are and if you have a house-you gotta commute.

I remeber just a decade or so ago, when gas prices were below a dollar a gallon in many states and the economy was much better and housing was strangely lower. The FED needs to get out of this mess and let housing become affordable again. Then a natural bottom will come about.

epitaph says

How can you slam Gen Y for not having their crap together right after admitting that it took your 40 years to sort your own shit out?

I said I didn't have my crap together, I don't slam Millennials for not having their crap together. I slammed them for either listening to Liberal press hell bent on keeping them down and out of the competition, and not believing in them selves to know the press if full of shit. And for lacking the gumption to at least open lives doors and collect the opportunities and experience that you will cash in when you do get your crap together.

lostand confused says

Back then, if you got in, there was a good chance you could stay in the same company for decades or at least move around in the same area.

That is the most disastrous fool headed thing anyone can do or expect. Then and especially now.

The problem with being the Company man is two fold, first you are along for the ride, but you aren't considered at all when the company dynamics change or a paradigm shift and your out. Bankrupt, Company sold, or Consultants recommends your job as redundant.
Next is the problems with upward mobility in a company is the "I knew you when" syndrome, so your potential is rarely realized, except for a select few. How ever your experience is valuable to other companies, it's up to you to cash that experience in and upgrade your position and job.

I read these HR tip articles and read, propaganda training people to expect to get screwed and be cut rate. Don't listen to those idiots, they can't see the future no better than the fortune telling Gypsy on the boardwalk.

lostand confused says

One of the problems for them or any age group is the temporary nature of jobs.

That's also why I didn't buy a house until I was 38.

I figured that since I didn't have steady work, I shouldn't be buying a house until I had more than enough money to pay cash for a house and still have enough money left over if I had to be unemployed for an extended period of time.

In a country that has been ran like a pyramid scheme for the past 50 some years there are going to be real major problems to solve in the next decade

Question of who buys houses or chooses to rent and save will be least of our concerns. That's my view of it.

CaptainShuddup says

80% of America took absence of their intelligence and overpaid 100% for their house. Then the jig was up and they lost their Asses.
Since those people lost, they don't want anyone to buy a house ever, they suppose every one now, should be life long renters.

I think their problem is that many feel entitled to equity, and have hard time accepting the fact that they don't have any because the pyramid scheme simply ran out of steam. Same people who gambled, and were hoping to cash out just in time before the crash. So as you can tell I have no pity for those who gambled and lost.

And the irony to me is that, that comes from the same people who voted to kick the can every 4 years, and are unhappy when the can could not be kicked.

Maybe she should just save for ten years and see where she is financially then. Not everyone can get a house at 26.

FortWayne says

I think their problem is that many feel entitled to equity, and have hard time accepting the fact that they don't have any because the pyramid scheme simply ran out of steam.

The American Dream is arguably the most successful marketing campaign in history.

And additionally to the issues that you guys mentioned, it seems that the members of that generation that do have the means tend to spend a lot of their money on discretionary expenses such as eating out in trendy restaurants, blowing money at bars, joining wine clubs, weekend trips to spas, etc. They are going to have a huge barrier to entry even to save up the 3.5% down, not to mention the traditional 20% down.

gregpfielding says

The American Dream is arguably the most successful marketing campaign in history.

That's like calling the water works a marketing ploy.
You need a place to live, this is true how you get there. Is all up to either how smart or gullible you are. The higher value you place on that place to live, then the more the Realtor gets for a cut.
All you need a roof and four walls, every thing else after that is a degree of vanity.

I just got my trim notice, I will be paying 550 less in taxes this year. But the single payer home owner insurance company in Florida that is Citizens, raised my premium by that much. Aint Cronyapitolism grand?

CaptainShuddup says

I didn't own a house, until I was in my 40's. I was incapable of owning a house until then. Not because of lack of funds, but more because of not having financial maturity. Or a nice way of saying "I didn't have my Shit together".

I'm right more often with "generalizing much" than most are, armed with studies and charts.

Half of mortgage borrowers under 40 are underwater

The percentage of borrowers who owed more on their homes than they were worth fell to 30.9% during the second quarter, down from 31.4% three months earlier, according to Zillow. Of the 15 million borrowers who were underwater during the quarter, a disproportionately large number are under the age of 40, said Zillow chief economist, Stan Humphries.

Nearly half, or 48%, of all mortgage borrowers under age 40 are underwater, about twice the rate of borrowers who are older. And that has created a sort of gridlock that could hinder the housing market's recovery, he said.

http://money.cnn.com/2012/08/23/real_estate/underwater-mortgage-borrowers/index.html?iid=HP_LN

CaptainShuddup says

I slammed them for either listening to Liberal press hell bent on keeping them down and out of the competition, and not believing in them selves

You mean that liberal media that's saying that the election is all about jobs, jobs, jobs, so you can be some wage slave working for some boss making 200x what they're willing to pay you until someone cheaper comes along?

Ya-huh.

Ask any manager. They'll tell you. The most motivated workers are the ones deep in debt. And when you are old and the only thing you can offer is money, young folks without money are your only hope. That's the reason the system is the way it is.

taxee says

Ask any manager. They'll tell you. The most motivated workers are the ones deep in debt. And when you are old and the only thing you can offer is money, young folks without money are your only hope. That's the reason the system is the way it is.

The only way that a renter will not be as "motivated" is if they have sufficient cash reserves and thus would be less scared of a job loss. However, considering that the national average net worth of a renter is like around $3,000, I seriously doubt that they are less "motivated."

Being one of the relatively well off generation X/Y renters (with no kids) I can say that I'm not mortified of loosing my job. In fact I could use a few years off anyways and I would welcome some severance pay to get me started. :)

In fact, when I messed up at work some months ago, I told my manager I had emptied my cubicle and offered to quit that day. He was visibly shocked and kept reassuring me how valuable asset I was to the company. It helped in many ways because he's been more respectful since that day. I'm in a unique role though so YMMV. :)

I think the best motivation is a healthy motivation. I've done my best work when I felt like doing it, not because my manager asked me to do it.

They might inherit a house, eventually. I figure that's the only way a lot of them even might have a shot at it.

Marjan says

I would welcome some severance pay to get me started

You do know that severance pay is not the norm these days. Most companies just kick their employees to the proverbial curb with only their accrues vacation pay as their only severance.

gregpfielding says

FortWayne says

I think their problem is that many feel entitled to equity, and have hard time accepting the fact that they don't have any because the pyramid scheme simply ran out of steam.

The American Dream is arguably the most successful marketing campaign in history.

East Bay Real Estate Agent and Blogger

What upsets me about it, is that the definition gets modified constantly to fit some marketing message, breaking the social contract.

I knew the real American Dream was a long gone concept when Bush Jr came out and redefined it as consumer home ownership as the crowd cheered it too.

AF said: Mortgage brokers were getting vocal about debt ratios on young buyers in the 1990s. The numbers just weren't working.
It took longer for CAR to respond to the crisis, thankfully they came out with the First Time Buyer Home Affordability Index. What a relief, homes where once again affordable due to financial innovations (read: ARMs and 10% downpayments).