Many retirees also plan to spend it all so no heritage for many. But they will die within the same decade but this will be only in around 20 years from now. So yeah at least 20 years to go so too late for everyone looking for a house now lol.
Revolut lost my account information and have effectively locked me out of my investments and digital debit card. I signed up when they offered $50 for giving them a try then updated their app and I've been out ever since. And their customer service? 5 hours in online chat because phone calls are non existent and after consistently "disconnecting" I lost patience. Not sure what to do next but DO NOT RECOMMEND
My dad and I had the same job in the same metro area. In 1969 he bought his first condo in the Los Angeles area for $16k and his annual income was about $12k. When I started the same Job in 2010, that same condo was worth $300k and my annual income was $65k. Today, it's worth over $420k and has similar mortgage interest rates as in 1969. I currently make around $110k a year and my father's income never went over $70k a year in his prime. To have the same purchasing power today, my income would need to be about $323k a year.
Wow, that's like complaining that I can't buy as much gold with my job today as I could have bought with the average job in 1969. Tell me more about your complete lack of understanding economics over time, please.
@SeanTheEvans woah! it's just a comparison between the same job and the same property but 50 years apart. Simply put, wages have been stagnant compared to housing costs so a larger percentage of people's income now goes to housing and the gap is only continuing to grow. I actually own a couple different properties with low interest rates so I'm definitely not complaining.
@@SeanTheEvans Way to completely misunderstand the example, Sean. But also you misunderstand your own example; you prove his point. You're looking at two baskets of goods and asking how many labor hours in the same job would be required to buy the same goods, in two different years. That's literally how economists do it. While ounces of gold alone is a terrible basket, housing alone is worthwhile. Separately, you're an annoying little shit because of how you communicate. Stop it. Either stop being such an annoying little shit, or stop communicating. Either way is good for us.
It's like playing Monopoly. But everyone else has been playing for ten rounds already, all the properties are already sold and the the game board is on fire.
In the UK version, everyone pays a little at the end of each turn for people who need hospital care. Also, the banker in this version does some money laundering and you can skip the income tax square if you have enough hotels.
@@Cheesite At least the UK version lets you use the hospital care you paid for without additional cost. In the American version people also pays a little at the end of each turn for people who need hospital care but only the poorest players can access it instead everyone else has to pay even more money for hospital care.
The fact that housing is considered an investment is one of the biggest issues. Limiting how many homes a person can own and getting investors out of the housing market should help normalize things but at this point, I'm just hoping for a Thanos snap
Worst part is alot of the time people dont actually really make that much money with their houses if they have not owned it for more than 15 years, and even there, its not a great profit margin compared to how much money you spent on maintain the home and fixing shit in it. Or when you go and renovate the kitchen or bathroom. But it does make equity which helps you get loans and your credit score....
@@invertedv12powerhouse77 Then you do spend the time and money to acquire a house, fix it up, and try to resell or rent it, just to find out someone came in overnight to break in and steal the AC unit and copper wiring. Now you don't have the money for repairs and have sunken hundreds of thousands into a pointless venture.
mortgages also really messed things up. today, prices are really set by banks and how much they are willing to lend out, so it is a game between banks, not buyers and sellers.
You missed a big issue: healthcare expenses. A lot of people will die in the hospital or long term care facility. Their estates will be pulverized by these expenses before they get close to the heirs.
Which, interestingly enough, is precisely the reason why European and Scandinavian countries don't have this issue nearly as much. Yes, you pay higher taxes but health care costs don't eat everything you own by the time you die.
I mean he did mention nursing homes and assisted living which is where a lot of the cost will go. Any acute care in the hospital would likely be covered by Medicare, but if you don't want to rot in living hell you'll need to sell your home to pay for good long term care.😮
@@HeronPoint2021 This is why it's best to divest long enough before that these assets won't be seized by creditors. Obvs you can't do anything about the pension.
Absolute Agreement!!!! Edit: hopefully this will become a law, with the exception of distressed properties where the entity is at fault. For example; environmental contamination. Make it their responsibility to clean.
@@dennydude did you see the part of the video where it shows corporations were 13% of purchases in 2021. They own somewhere around 20-25% of overall supply
I'm in Michigan, and the housing market here over the past 7-8 years has been unprecedented. Houses that were purchased for $130K in 2015 are now going for $590K. These are tiny, poorly constructed 950-square-foot homes in quiet, mediocre neighborhoods. Meanwhile, nicer, average-sized homes in better neighborhoods that were over $300K a decade ago are now selling for $750K+. It's wild.
A recession as bad it can be, provides good buying opportunities in the markets if you’re careful and it can also create volatility giving great short time buy and sell opportunities too. This is not financial advise but get buying, cash isn’t king at all in this time!
I've been in touch with a financial advisor ever since I started my business. Knowing today's culture The challenge is knowing when to purchase or sell when investing in trending stocks, which is pretty simple. On my portfolio, which has grown over $900k in a little over a year, my adviser chooses entry and exit orders.
bravo! I appreciate the implementation of ideas and strategies that result to unmeasurable progress, thus the search for a reputable advisor, mind sharing info of this person guiding you please?
The decision on when to pick an Adviser is a very personal one. I take guidance from ‘’Aileen Gertrude Tippy’’ to meet my growth goals and avoid mistakes, she's well-qualified and her page can be easily found on the net.
Yeah my friend's mother is like that, she moved into berlin where it was bombed to shit, and rent was so cheap there never was a reason to buy a home. Now she really wishes she did
@@yaelz6043 They'll be conscripted to fight WW3 and will live in appaling conditions in Barracks for 20 years before Nukes start flying (The Nukes take so long to fly because everyone's pussy footing about and keep threatening to use them without actually doing so until someone finally says "to hell with this" and just gets it over and done with)
I love getting financial advice from a generation whose job hunting experience consists of walking into a place where they wanted to work, asking if that place had an available job, and getting hired on the spot.
Ask A Manager has a whole section on her website about 'showing moxie' and other terrible job-hunting advice (nowadays that kind of actions would get you blacklisted as a crazy stalker)
I’m a millennial and this is actually exactly how I got a valuable paid internship in my field of study during college. You cry babies just suck at getting what you want 😂
Back in 2007, during my time working in real estate, I witnessed people purchasing newly built homes from builders with the plan to sell them before the closing of escrow to another buyer for a profit. The crash hit hard and fast, and I vividly recall many of these units ending up foreclosed upon, with the builder's plastic still covering the carpets.
Most people find it difficult to handle a fall since they are used to bull markets, but if you know where to look and how to maneuver, you can make a size-able profit. Depending on how you intend to enter and exit, yes.
The enduring US stock market bull run evokes a mix of fear and excitement, presenting opportunities with insight, resulting in $780k gains in the past ten months, utilizing a portfolio advisor for a well-defined strategy.
My portfolio has been in the gutter for the entire year, so I started researching new ways to profit in the market, but everything I tried just seemed to miss the mark. Please let us know the name of your financial advisor.
Asking a real estate agent whether you should buy a home right now is like to asking an alcoholic whether they think you should have a drink lol. Homes in my neighborhood that cost around $450k in sales in 2019 are now going for $800 to $950k. Every seller in my neighborhood is currently making a $350k profit. Simply unreal. In all honesty, deflation is what we require. The only other option is for many people to go bankrupt, which would also be bad for the economy. That is the only way to return to normal.
Home prices will come down eventually, but for now; its best to offset some of your real estate investments and get into the financial markets or gold. The new mortgage rates are crazy, add to that the recession and the fact that mortgage guidelines are getting more difficult. Home prices will need to fall by a minimum of 40% (more like 50%) before the market normalizes. If you are in cross roads or need sincere advise on the best moves to take now its best you seek an independent advisor who knows about the financial markets.
It's often true that people underestimate the importance of financial advisors until they feel the negative effects of emotional decision-making. I remember a few summers ago, after a tough divorce, when I needed a boost for my struggling business. I researched and found a licensed advisor who diligently helped grow my reserves despite inflation. Consequently, my reserves increased from $275k to around $750k.
this is definitely considerable! think you could suggest any professional/advisors i can get on the phone with? i'm in dire need of proper portfolio allocation
My CFA ’’Aileen Gertrude Tippy’’ , a renowned figure in her line of work. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market.
Appreciate this recommendation, hopefully I can get some insight to where the market is headed and strategies to beat the downtrend with when I hear back from Aileen.
My dad's actually running into this problem. He'd like to sell his Salt Waterfront home with acreage and a dock, but, there's only one problem: The only people who can afford it are Boomers and older (I'M a Boomer!), and _they already have their dream houses in the woods._
Can’t begin to tell you the amount of people that I’ve seen take care of their aging parents and sacrifice their own life, career and family, just to find out mom and dad had drained all of their money to fund their medical and living expenses. Leaving them with NOTHING. I work in banking so I see this almost on a weekly basis.
It's not a parent's job to leave their kids money. That's extremely selfish and self-serving to think your parents only exist to give you an inheritance. The parents worked and earned their money, and they obviously needed it to live on and survive. Why do kids think they're owed and entitled to their parent's money? If my parents left me absolutely no inheritance, I wouldn't care because I have my own job, and I'm smart with my finances. I care about and love my parents as people, not as cash cows.
@@heatherdisney Absolutely agree. What I was referring to was what he mentioned in the video: do not expect to receive any funds from your parents' estate. Was simply pointing out examples of how I see adults put their lives on stop to take care of aging parents, perhaps thinking that at least they will get some moneys when their parents pass. Latest case I saw was 2 sisters. One married with kids, the other one with no kids and unmarried. So of course, the responsibility of taking care of the aging parents fell on the unmarried one. 9 years later parents die, left 0 money for her due to having to use it all for medical expenses and living expenses (expected). That woman did nothing other than take care of her sick and aging parents until death, only to get the unfortunate news that her parents had even sold the house they were living in and actually died with debt. And trust me, this is more common than people realize. So as the video said, DO NOT expect to receive an inheritance. Most people deplete their funds prior to passing.
@@heatherdisney You made quite a bit of assumptions in that retort, no? Do you have a family? Do you want to give them a good life? Why is that? It's because you *want* to, not because you're expected to. The actual original point, is that it's really sad when a wealthy generation doesn't *want* to help their grandchildren, and somehow consider that virtuous.
@@heatherdisneyI mean you might care if you spent a whole decade caring for them instead of making money at a job only to be left with nothing. On the other hand you're probably going to just dump your parents at a nursing home and let them get whatever they can get with Medicare (which is basically a hell hole). 🤷
I've watched my parents spend well beyond their means their whole entitled lives in a frenzy of blind consumerism, buying sound bars and replacing perfectly good furniture every few years, or paying to have the gardens they can't even walk around too enjoy at 83 years old. I also see the HUNDREDS of thousands of dollars they're in debt from the continued awful spending practices. They're leaving their family nothing but debt and the stain of a life of selfishness. Boomers through and through.
My step-father died in "his" house having never paid it off with less than $10K in his account. When his daughter came to claim her inheritance, all she received were his unpaid bills.
This is pretty much the boomer generation in a nutshell. They made a shit ton of money in their lives, but they were the party generation, the first credit card generation. Everything they made they spent already.
@@notmyrealname3167 Because society preyed on them, just like it does on us. Don't blame the victims. Every leech out there is trying to beat you to your parent's money.
While that may be true, she also interrited the equity that he had in the house. That should be hundreds of thousands. Not all boomers were good with money though.
Back in the day, when I purchased my first home to live-in; that was Miami in the early 1990s, first mortgages with rates of 8 to 9% and 9% to 10% were typical. People will have to accept the possibility that we won't ever return to 3%. If sellers must sell, home prices will have to decline, and lower evaluations will follow. Pretty sure I'm not alone in my chain of thoughts.
If anything, it'll get worse. Very soon, affordable housing will no longer be affordable. So anything anyone want to do, I will advise they do it now because the prices today will look like dips tomorrow. Until the Fed clamps down even further, I think we're going to see hysteria due to rampant inflation. You can't halfway rip the band-aid off.
Home prices will come down eventually, but for now; get your money (as much as you can) out of the housing market and get into the financial markets or gold. The new mortgage rates are crazy, add to that the recession and the fact that mortgage guidelines are getting more difficult. Home prices will need to fall by a minimum of 40% (more like 50%) before the market normalizes.If you are in cross roads or need sincere advise on the best moves to take now its best you seek an independent advisor who knows about the financial markets.
Certainly, there are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’Melissa Terri Swayne” for about five years now, and her performance has been consistently impressive.She’s quite known in her field, look-her up.
Being a boomer, I am perplexed where people are getting the idea we had it so easy. Being a woman, working before sexual harrassment and/or exploitation was against the law, being paid ,.65 cents for every dollar a man earned, never being promoted or given responsiblity because we MIGHT give birth - the only way a woman moved up in that world was marriage. Standing on your own two feet was dangerous and risky. When Rose Mcgowen started that MeToo movement I LMAO. Been having one my whole life.
@music4566 "Being a boomer, I am perplexed where people are getting the idea we had it so easy. " It's because your dollars were literally worth more than ours. To copy an easy example from above: "My dad and I had the same job in the same metro area. In 1969 he bought his first condo in the Los Angeles area for $16k and his annual income was about $12k. When I started the same Job in 2010, that same condo was worth $300k and my annual income was $65k." You may have been making 0.65 per dollar, meaning 7.8k, compared to this guy's Dad, but if we take the 2010 example this guy would have been making 0.26 per dollar, or 3.2k. Conditions haven't equalized upwards but downwards. We are all now proportionately more than twice as bad off as a woman in the 1960s-1970s. Edit: After comparing median wages in 1970 for a man vs median housing cost, as well as both the general median wage currently and median housing cost, the true value is actually about 0.25 cents to the 1970s dollar.
Not true. We know it. I have spoken out for years about how much things cost today relative to what we made in wages as compared to today. We will work with your generation anyway we can to fix this mess. But your generation needs to focus on electing candidates who are interested in promoting the average Joe's economic interest and not a leftist social agenda just meant to divide us.
@marvelmusic4566 Honestly, go post your left wing rhetoric somewhere else. Back then an average man could work one job, to own a house, car, and raise a child. Now both parents have to work to rent an apartment, lease a car, and have their children raised by the tv/the state. So seriously hope "equality" was worth all the B.S. cause now we're all suffering this socialist beauocracy you wrought upon us. Trump 2024. (I'm 30 and have to live in a fucking car!)
@@DavidSmith-fr1uz Only one dividing is the right. CRT wasnt an issue until the right wing talking heads latched onto it, despite being around since the 80s. "Woke" wasnt an issue until the right wing talking heads latched onto it despite being around since the 80s. Books that have been in schools for decades havent been an issue until the right wing talking heads latched onto it. The only one pushing social agendas is the right. Going after settled law like Roe v Wade. Trying to outlaw LGBT+ people, etc. etc. So go right ahead and blame "our generation", while yours continues to be short sighted, selfish, and racist.
I'm surprised he didn't talk about inventory destruction/ghost houses, because we have a lot of that going on too, just not in the way traditional inventory destruction is done. Leaving aside natural disasters that were so bad people just don't bother rebuilding, companies are engaging in inventory destruction of housing. It's one of the reasons, despite massive uptick in building in the last two years we still have rock bottom inventory (that even without inventory destruction still wouldn't be enough, unfortunately). Unlike when Amazon dumps a bunch of stock in the garbage, housing inventory destruction looks a little different. A company buys a house, or condo, or townhome - basically anything that qualifies as single family housing - and then leaves it empty. They don't rent it (short or long term), nobody lives in it. This restricts the rental and homeowning options, to drive up prices. Higher asset prices means they can take out larger loans against the asset, and demand higher rents from the units they do happen to be renting. (It's rare for a company to ghost house *all* their housing stock. Just 15-20% of it.) Depending on the locale, 7-20% of housing in a city is ghost housing / destroyed inventory. Can see this on the street in my own neighborhood even though we're in the middle of a housing crisis: I have *no* direct neighbors because companies bought those houses, and they've been empty ever since. The one across the street has been empty for 7 years. When I was trying to buy a house in 2019/2020 it was a pretty common selling point that I wouldn't have noisy neighbors on the condo floor or down the street, because the units/houses were corporate owned and I'd be *alone* in my neighborhood. It's not a new practice.
It’s ok my son. I already had my vasectomy. Never married. Never had children. It was simply too expensive to play this rigged game. I figured it was just “for the best” that my unborn children stay that way.
The fact that corporate entities CAN buy houses is insane. Single family homes are designed for FAMILIES,and giving power to entities to buy them is crazy. This is literally giving profits to companies who can induce demand as much as they want, since it appreciates. You mentioned "only" 13% of sales were to corporations, but that means 1 in 10 are purchased by them. This means in a 20 home neighborhood on market, at lwast 2 are corporate owned, which is INSANE
Private family ownership is literally the cause of our housing shortage. Ordinary people have most of their wealth tied up into their house, and housing shortages cause the price of that home - and thus their personal net worth - to skyrocket. Resolving the housing crisis means that ordinary people will see most of their wealth vanish, as their single biggest investment drops in value. Corporations don't have anywhere near the government power that an army of middle class homeowners possesses.
In addition, once a home becomes part of a portfolio, it's never sold to family agsin.... Ever! So that 13% compounds year over year, pulling more homes PERMANENTLY off the market.
They finally managed to turn society into an actual game of monopoly. Well, I feel like this is not the first time, and it won’t be the last. Only thing needed is for the politicians to make the rules such that this madness ends. Someone will get hurt, but now it’s the majority that’s hurting.
The system is rotten to the core my friend. The fun thing is, it's starting to resemble more what ultimately lead to the french revolution. I believe the system will remain rotten until there is a breaking point, leading to heads rolling down.
My biggest mistake was getting myself born too late. As a go getting egg cell, I should have pulled myself up by the bootstraps and directly negotiated with my father the rights to my remaining 23 chromosomes. I then could have self fertilized myself and climbed out of my mom’s birth canal 10 years sooner, enabling me to immediately start my PhD at Stanford.
@timothy8428 Maybe not but according to all the boomers I’ve talked to, not having shoes is a whiny millennial problem. Back in their day, they had to walk up hill both ways and reproduce by parthenogenesis.
If anything, it's likely to get worse. Affordable housing will soon become unaffordable. Therefore, I advise taking action now because today's prices will seem like bargains tomorrow. Until the Fed takes more decisive action, I expect we will see hysteria due to rampant inflation. You can't just halfway rip the band-aid off.
In the early 1990s, when I bought my first home in Miami, it was common for first mortgages to have rates between 8% and 10%. It's important to recognize that we may never see 3% rates again. If sellers are forced to sell, home prices might need to drop, resulting in lower valuations. I believe many people share this perspective.
Home prices will come down eventually, but for now; get your money (as much as you can) out of the housing market and get into the financial markets or gold. The new mortgage rates are crazy, add to that the recession and the fact that mortgage guidelines are getting more difficult. Home prices will need to fall by a minimum of 40% (more like 50%) before the market normalizes. If you are in cross roads or need sincere advise on the best moves to take now its best you seek an independent advisor who knows about the financial markets.
How can one find a verifiable financial planner? I would not mind looking up the professional that helped you. I will be retiring in two years and I might need some management on my much larger portfolio. Don't want to take any chances.
As someone who has worked in the retirement housing community I find it hilarious to hear my fellow millennials talk about how they will have to wait to retire or get a house when their parents finally die. I cannot count the number of times I have watched boomers drain their savings to live 5 years long all the while leaving their kids nothing. I would bet most, if not all, of the boomer's wealth in any form is going to medical expenses, care and retirement housing. Boomers inherited the greatest wealth a generation has ever built and given that they are some of the most shellfish and spoiled people in our history, they would rather bury themselves in gold than give it to their kids.
Yeah, people underestimate the cost of someone's final years. Between finally being able to spend their cash on luxiries, no longer having an income, potentially paying for extremely high living costs (if it's assisted living), and then the final medical bill prior to death? You'd better hope mom and dad were sitting on a couple mil if you're hoping to get anything worth writing home about.
It's their money though if someone wants to spend that money on their own health and wellbeing then they should. People should not expect their parents to bail them out all the time especially financially. My family's poor so I never expected any inheritance so I worked my ass off and saved and bought a cheap house in a rough area, after 5 years I'd made the house look more modern and made a bit of money on it and now I'm in a slightly better house in a slightly better area. I think everyone these days wants their dream house straight away and expects everything. Much like climbing the corporate ladder I climbed the housing ladder. The alternative was going out every weekend spending money, and renting in a nice area. So it's up to you what you are willing to sacrifice to get there
@@thenoodlebuddy Great job putting the blame of a systemic problem on individuals and using your luck-based personal experience as a way to feel morally superior to others (it's luck-based because a market crash would've put you in the hole and you have zero control over that). You sound like one of those boomers that say millennials need to stop buying avocado toast to be able to keep up with housing prices that doubled (!!!) in just a few fucking years. You benefited from a broken system, congratulations. The system is still broken, and you thinking that your benefiting from it means the system is working fine, is yet another example of how brainwashed people in this country are.
@@thepracticalblade9013 normally a functioning healthcare insurance system where everyone paid into before they got old would catch that burden. At least in my country that issue doesn't exist
This could be easily fixed if there was a law that allows corporate entities to only build new homes, but not buy existing ones. That way if companies want to own homes for speculation or rent then they have to go and build new ones, which not only directs investments to be used to expand the housing market rather than eating it up, but also protects families so they would not have to compete with companies to buy existing homes which should in time normalize prices. Also, in order to prevent companies from using a loophole where they buy housing in their personal name or through relatives, it would be a good idea to limit private individuals to owning a maximum of two or three homes too. If a critical ressource is limited, then laws must reflect that.
yes this is exactly what I have been saying, all these people saying we should ban investments firms and such from buying single family property of any type, just like the logging industry, if your gonna cut a tree down you gotta replace it, though this would be in reverse, if you wanna sell a home you gotta build it
The issue there is that we would have no trees anymore. They would build even where they shouldn’t, and would likely continue to build massive cookie cutter developments dozens of miles out from any commercial zones.
@ST-zm3lm if they can't sell it, why would they do that, also that's not how lumber industry works, they by law have to plant more or an equal amount to what they harvest
@@loosemoose5217 I’m more so referring to all of the woodlands they clear out. Much like the ones they decimated in my hometown when they built several square miles of cookie cutter houses
The nursing home issue is even a bigger issue for the economy. But everyone seems to think that they won't need it, or be affected by it... That is the really scary part... You can't take care of your parents while working... I know a young lady who sold her house to take care of her mother until care assistance became available...
Glad where i live the government pays you to take care of your parents. So i will take care of my mother because my sister is making bank as a lawyer right now. That will save our inheritance as i don't want my mother to spend her millions on nursing homes that money should go to us the kids which is money that will be needed as everything is so expensive.
@@bobby5678-ck2tc My dad left his mother in a nursing home. Moved her to another nursing home after she was treated poorly. I don't know what happened later, but that probably ate up a lot of family resources... The hospital probably hastened my mother's problem due to lack of exercise... But I just had a lower end job... And they didn't keep track of her care eligibility...
The concept of mini-retirement changed my life. I'm no longer waiting for some retirement paradise when I'm 65. It helps to know how to fund the lifestyle. You know, making money while you sip that piña colada by the beach does help. I wouldn't have been able to do it otherwise.
Yeah, people miss that part. You don't jet out to Puerto Rico with your life savings. Proper investing and a good business acumen are big pluses. Invest in the stock market, real estate, build businesses. That's just it.
Safe to say not everybody has the skill to pursue investing. But it's always easy to follow the advice of someone who knows how to i.e a financial advisor. You could anywhere between 10--40k with the right ones. Online businesses are a good bet too if you are savvy.
Carol Vivian Constable is the licensed advisor I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
I just googled her and I'm really impressed with her credentials; I reached out to her since l need all the assistance l can get. I just scheduled a caII.
I remember learning in a class on Chinese history, that over time they would have a problematic economic cycle. Some farmers would get just wealthy enough to buy a neighbor's land, and hire poor farmers to work it. And they would begin accumulating wealth, and continue gathering assets. Until eventually a few wealthy families owned everything and they made life difficult enough for the poor, that the poor rose up and rebelled, and killed and scattered the wealthy families, and redistributed the wealth. It required intense inequality and great suffering before people were willing to do this. Much worse than we are experiencing now. Anyway, that new situation with many self-sufficient farmers would go along until some of them started buying up their neighbors' land ... I keep thinking back on that. I think oligarchs worldwide and definitely in America have been in a position to control things and grow richer for a long time. And part of absorbing wealth is extracting it from the poor and middle class. But because there's no grand conspiracy that could maintain the status quo, they can't coordinate. So they take too much, grow too rich. Which is a bad administration policy, because it creates instability over time, as I described with the Chinese history example.
Exactly. Revolution is what happens when people are pushed too far. It's not some great glorious moment of liberation, it's the endgame of a long nightmare.
What I see from a big picture is as America and the FED prints more and more funny money, what happens is core inflation doesn't rise that much because of the Eurodollar system and the USD's reserve currency status. BUT as more dollars are created, those dollars have to go somewhere, because if they entered circulation general consumer price inflation would be insane. And investment assets are the ones that are soaking up the excess money influx. And housing has become an investment asset. So basically the FED prints money and dumps it into the economy, and the investment firms have devised all sorts of methods to siphon off all that excess dumped money out of the economy for themselves. This makes the slice of the pie that is part of the circulation of the economy stay pretty much the same in absolute value, but the entire pie around it is growing at an exponential rate. Money is funneled from the government, through the middle/working class into the private equity firms.
@tripplefives1402 It's not human destiny to end up divided between rich and poor. It is the destiny of the any capitalist system, it is intentional and by design. The reason those cycles continued is because capitalism was allowed to continue, not "because humans".
@tripplefives1402maybe if instead of the state having it... We let the people who work on it control it themselves? And allow the government to break up monopolies when they do form?
@@bretthake7713and yet, it is the only system of government that has successfully endured the test of time. Sure, communism, socialism and even dictatorship still exist in some parts but they are few and in between. Most importantly, their citizens at large do not enjoy the same quality of life as Americans or other 1st world denizens. Capitalism isn’t going anywhere and there really isn’t a better system unless we contemplate taking freedoms away from those whose only crime was making better decisions and enjoying better luck than the rest.
You know what's absolutely disgusting about it? That it's regarding the housing - the basic necessity for everyone. You can get by without owning a car, without going on holidays, without owning some items etc, but everyone needs to have a place to live somewhere. A while ago there was a small documentary on YT about housing situation - or rather a crisis - in Hong Kong; people there lived in such small space it was appalling. And someone may say, well it's just one city that is expensive. Well, no, that's just the beginning of how high density places will look like if the population won't stop rising, there won't be decentralization of population and the housing pricing will not stop.
I was talking to a boomer who owns a half a million dollar house telling them I couldn't afford a house and their response? Money isn't everything... it was then I realised they don't care about you, they don't care about anyone but themselves, and they wouldn't care if you were homeless either, they'd probably respond with you reap what you sow, they may still love you but they just don't care.
One boomer parent response was "live within your means and file for bankcruptcy." Because having no credit for 7 years is how you prosper. One actually helped me when I had emergencies and paid for my health insurance until I turned 26.
@@bulbigood6558 You just don't get it, the same house bought in the 80's for $100k is now worth millions, omg see everyone this is proof you can't argue with a boomer lol
When the market crashed in 2008 my parents had enough money saved up to give me the down payment on a house. I had just graduated college and was homeless, crashing on various friends' couches and in my car, because I didn't have enough money to do the first month/last month/security deposit on an apartment. They always said they would give their kids a monetary gift for either a wedding or house and since I don't care about fancy weddings I took the house. It's wild to go from homeless to home owner at only 23. But I got incredibly lucky because there's no way I would have been able to buy a house if it wasn't for the perfect timing of super low prices and interest rates, my parents already having the money saved, and me not being locked into an apartment lease.
I was an early age home owner as well (20). It wasn’t my parents, but my grandma did the same thing with me (wedding or down payment). I didn’t want a crazy wedding, so opted for down payment. That decision was the single most impactful one I have ever made. I ended up selling that house back in 2020 and was able to pay cash for the home that my husband I now live in with our dogs and daughter. We’re 32, live in a decent home (4 beds/2 baths) with a backyard for dogs and garden. If I had NOT done the down payment option, and instead chose wedding…my life would be totally different. I’d probably be renting with no kids and no dogs. Definitely wouldn’t have the security we are lucky enough to have now.
This shit is wild. A lot of privilege here. I am 31 and bought my first house (a fixer upper) while in college when I was 23 and GF was 21. Took every penny and we ate frozen meals for a long while on makeshift furniture because we couldn't afford it. Absolutely no help from either of our single parents. In a lot of cases we helped them. Drove a beater 1991 chevy truck (crazy liability) to college and worked as an intern and GF worked as a waiter (also went to school). Really crazy and great years. It is a completely foreign concept to me when I hear peoples' families just giving them things or they receive inheritance. It's really hard to not be frustrated when I hear these stories as well. Like some people being rewarded for simply existing.
A lot of the houses go to reverse mortgage owners. The money they hoped you would inherit goes to the hedge funds that own hospitals and nursing homes.
Yup. I'm seeing a lot of reverse mortgage advertisements in printed newspapers and other old-people media, it is obviously a thriving market. But the design and wording of the ads also shows how much shame there is around the practice: it's all kept very discrete and low-key. Just because your (grand)parents still live in their home doesn't mean they still own it. There will be a bad surprise for a whole lot of young people who figured they'd only needed to hang on in the crazy housing-market until grandma kicked the bucket.
Exactly. I see it all the time with elderly people. I'm an insurance adjuster, and when I issue a check for a property claim the mortgage company is also on that check. After a while, you get to notice those "mortgage" companies that aren't major banks or credit unions that you've never heard of are actually just reverse mortgage companies. I got bored and googled them lol
I AM SO LUCKY my grandmother just died on the toilet and didn't get the chance to waste my inheritance on futile medical care. It's a huge problem that inheritances are being squandered to extend lives mere months with expensive medicine.
My friend was recently talking about wanting to buy a house near her job in Seattle. She's an aerospace engineer working for a startup, 26 years old with a $130,000 salary. She was really excited to start looking in the area until she realized that an 800 sq ft home around there would set you back half a million fucking dollars.
Tell her to come further north to Vancouver a single family home is almost 1.2 million, that’s 900k in American dollars. That should make her feel better
I lucked out. My aunt invested heavily in real estate during the 80s and 90s and owned several homes, she sold most and one of them she left to me after i was asked late past year how the place i was renting is and i told them that the new landlord was doubling the rent so id likely need to move back in with mom again at 30. I'm immeasurably grateful for this and live is finally improving after 12 years of constant struggling to stay out of poverty, but the fact the real estate market is so fucked that only the ultra wealthy can buy a home is horrific. We need to treat housing as a product again, not an investment.
Youll be flip flopping harder than a politician in a moment because youll be mad when you buy a house and it goesnt go up in value like in ussr and north korea.
You've laid bare the harsh reality of our current housing market quite brutally. It indeed feels like a rigged system where a vast majority are left with limited hope and options. It's truly grim and we certainly need equitable solutions urgently.
It was better a decade ago, but its still very possible to get into a house. New houses built each day, death, divorce, ect. VA/FHA/ Grants all help and lenders are desperate for mortgages.
Keys to a successful life... 1) Have 15 years of experience in the field that you just graduated from 2) make sure to put the down payment on your future house by time you're in sixth grade 🤦♂️🤣
@@tropinnka Or get some issue requiring any kind of extensive medical service and find out you now have a mountain of medical debt on top of your student loans.
I was able to buy a home last year, but it was at the top of our budget (200k) for a tiny 100 year old house with a mold problem and a lot of needed TLC. When I was a kid, I thought my life would be easier if I put in more work than anyone around me. Now I'm just a burnt out 26 year old getting a barely functional house to stay ahead of rising rent. What is the point in trying to achieve anything?
Bro Im about to turn 26 and don't know what I'd do if I didn't live rent free with my grandparents on property they own. Going to go back to school while I still have it so good.
Do you think 18 year olds back then were buying mansions in Martha’s vineyard? Most people bought shit houses back in the day, in fact a big reason for why housing does cost more is because relatively, housing on average is much better and a lot nicer and a lot bigger. And what have you done to change your financial situation? Have you networked with successful people or groups? Studied finance to find different ways to save money on taxes or invest properly? Found the niche in your industry to learn and attack to get a step up on others to get some real money? When people tell you to “work hard” a lot immediately think just grinding out at work, which is false. The real hard shit is doing things you’re uncomfortable with like the above mentioned skills. It’s taking big risks for the huge reward
@@Bbrosvideos I've aggressively pursued new jobs to the point I'm making $30 an hour plus overtime as well as reduced debt to avoid monthly payments as well as basically any fun or frivolous spending. The cost to buy a house isn't proportionate at all to what it once was, and if you think it is I don't really know what to say. I bought a 700 square foot 100 year old house for the price of a 2 bed 2 bath in the same area 5 years ago. It isn't realistic for the average person to buy a home anymore. I'm more successful than most of my peers and I just barely managed to get a house after years of 60 hour work weeks.
@@alextupa5573 and the homes today are considerably better than they were back in the day. Where this delusional outlook that they were getting 5 star homes for $80k is laughable. The cheap houses back in the day were exactly that, small cheap shit houses. And it’s unfortunate for those not born with a silver spoon, but it is still manageable to make it big. It just sucks ass to do so. Also it’s funny you mention a 60 hour work week like it’s this crazy thing like people back in the 60s were working 20 hours a week while making bank. Life was considerably harder back in the day than it is now. Sure it peaked around the late 90s, but that was just a brief thing. Homes will be affordable again sometime relatively soon because quite frankly they can’t afford not to
I literally remember being 17 years old in the mid 90s in my old neighborhood... and I looked at at the plots of land, and the $90‚000-$150‚000 houses in the area wishing I could buy one.
I love how we went from growing people told me I could do whatever I wanted if I worked hard enough to being grown working harder than we ever have and still not being able to do the most basic things like owning a home.
@@rixaxeno7167 excuses are for the weak. Wake up with the grindset, drink your energy + protein drink, do some much needed meditation, and you'll be able to tap into the time displacement ability every billionaire knows, you weakling.
Think about what events brought you to this point. It didn't happen over the span of a few years. It's been an ongoing, decades long project. It's about to get worse if they are able to implement Project 2025. This is coming from someone who is just exceedingly fortunate to escape the fate they had intended for me, thanks to my Dad being really stubborn.
There are plenty of cheap homes around the country still. Maybe that means changing jobs or starting a side hustle or dealing with little bit less than ideal weather.
I’ve never understood how a home can gain value as it ages when everything else on this planet depreciates, degrades, and becomes obsolete or outdated with time. This is a universal truth. So why does a car lose value but a house gains? You put an end to that bs concept of your used products gaining equity, and you’ve leveled the playing field immensely.
Homes do lose value with age - all else being equal, a new house will cost more than an old house, it's just that the general prices of real estate are going up so much that it overwhelms the price depreciation due to the house getting older.
This video makes so much sense. I'm a delivery driver and have to deliver to houses that are in isolated woodsy areas. And sometimes the home owners are senior citizens. I didn't understand why this was the case. Now I do
I've already resigned myself to the fact that my Dad has no savings or equity, and my mom only has a house she can't really afford. Basically my life is going to become a living Hell in about 10 years when they can't work for themselves anymore.
I wonder if there's going to be a massive increase in middle-aged people going to prison for the rest of their lives because they murdered their parents due to being incapable of sustaining the financial burden.
Depending on your relationship with them, leaving them to fend for themselves is an option. It sounds psychopathic, and it is, but if someone’s parents kicked them out and refused to help them financially when they were YA who needed it, they should get that same treatment in old age. Adults take care of themselves, right?
@@Sheltur_0311I’m an orphan so it’s almost like I won the lottery free college in Florida so no debt so I’m less screwed. All I had to Sacrifice was ever being loved and a real childhood 😭😭
@@sneezyfido That is deeply unsettling to think about. Imagine a 80 year old in 2103, living in a run-down nursing home cuz they couldn't afford a better nursing home and has no kids cuz they couldn't afford them or focused too much on their career, so no one to visit them. When that person dies, their lifeless body is just dumped because they couldn't afford a grave..........man, thats unsettling as fuck.
@@viskyboi1275 yeaaa, honestly it's depressing imagine that this is the destiny for all Americans, and the government will do jackshit since they can just import cheap labor to keep slaves on the market working to sustain this shit
As uncaring as this sounds it was a relief for me when my parents sat me down a few years ago and told me in no uncertain terms that if they ever became enfebbel and unable to provide for themselves to the point that they would either have to give up living it becomes a financial burden to any of their kids that they wanted to be allowed to pay themselves down on their own terms. We explored a lot of the name of this but it means that neither me nor my family will have to take on the burden of taking care of them in this day and age. I want that for my children too.
My grandparents are giving me their home and while I don't live in it yet I can't help but feel guilty when some of my friends tell me that every single month is a struggle to not be homeless due to the rising cost of everything, especially rent.
I feel the same way. I don't have a house nor is my family giving me one, but my in-laws were nice enough to let us stay at their house and pay cheap rent while we save up for our own place. It's hard hearing about my friends struggling to get by
Don’t feel guilty. Feel proud that your family still has values and cares about future generations. I’d give anything for my boomer parents to care about their grandchildren.
It is what it is; just be grateful for your fortunate situation and make the best of it. Lots of people are completely shit out of luck and that's the world we live in.
@@tabithaalphess2115You guys shouldn't feel guilty since it isn't your fault our society is like this. I'm glad to see some people aren't struggling like us though. Hope things continue to go your way
I'm in the category of being the child supporting my parents. I'm 24, have only had a full time job for 2 years paying 50k a year (before taxes), and I'm the primary income source in my household. My mom is shit at finance and my dad is a deadbeat. It's so frustrating knowing how much better I could be doing if I didn't have to parent my own parents. And then my dad has the gall to say I should try to buy a house.... Infuriating lmao
Similar but possibly worse boat, 24, had to get a job when the breadwinner died 6 months out of high school. Take care of remaining parent with half that salary (dead end job) and their disability benefits. It's rough.
It's funny seeing so many comments on here from guys making over 100K/year, as though that's normal. Most of us are stuck making 40-60k even in "richer" states. Which is just how it works when you have a stratified society. Everyone isn't going to make the top money, but to them apparently that means only they deserve to live and we're supposed to struggle, even at the median income. It's insane. Add to that the care of aging parents and possibly kids, idk how anyone doesn't implode from the pressure. But, you know, bootstraps, bootstraps!
Why are you doing that? They are grown adults making adult decisions to be self-destructive. You as their child won’t convince them the change their money habits. Expect this to continue until they pass.
😔 Ten years ago I tried to buy a townhouse. It was selling undervalued at $90K. The builder wanted to sell more units, by truthfully saying all the units previously made were already sold. My accountant was a friend of my father, from prep school. He refused to give me the $18K of my own money for the down payment. He claimed that I needed the money in my retirement accounts more than a mortgage. Those townhouses are now valued at $300K-$400k depending on # of bedrooms and bathrooms. I still live as a renter. 😔 venting over.
My Grandpaw started working in the 50’s s on a few hundred bucks a month and went on to buy multiple pieces of property, build a house on one, retire by 62 with a pension and have a nest egg that has supported him into his 90’s with no bills. That dream is long since gone. I have to be happy with my job being just enough to pay the bills with a little bit squared away for a rainy day and a 401k that could get wiped out with the next bubble popping. It’s legit terrifying when I realized I make 30 times what he did.
Hate to say it, but a lot of my ability to retire will come from my parents passing. I was born in 1987, graduated college with a marketing and management degree in 2010 (still recovering from the recession) and the best job I was able to find was as a part time teller making $11 an hour. Took me a few years to get situated and I finally did in 2016, then in 2020 here comes COVID and I was let go from my job in July 2020 of 6 years. Since then, I have had 3 jobs and have not made more than $57,000 in a year (before taxes). Thank God I dont have any kids.
@@Policyparagontoo bad teachers convinced everyone they had to go to college and it oversaturated the market with degree-holders. Having a degree doesn't drive up your value anymore.
@@Nswix What a stupid take. If you think it was TEACHERS that decided to push college degrees at a time when manufacturing centers were being decimated all over the country and Reaganomics was being pushed as the new way forward (aka turn everything in the country into a ponzi scheme to funnel wealth to the elites), then clearly you need to go back to school.
@@Nswix I am convinced industry had a hand in boosting the attraction of going into the fields too. Getting a saturation of graduated engineers, accountants, you name it, etc. means wages could be kept in line. Just my opinion. Meanwhile, when I graduated high school, anyone who had gone into a trade was considered a loser, deemed too dumb or whatever to go to college. Those tradesmen, if they hustled, probably could have worked their way up and had more money than the college grads in the long run. I think anyone who went to school in the 80's can reflect upon that. I'd tell a parent nowadays to consider just sending their kids to a junior college and investing the rest of the college money into stocks or real estate, anything but a $150,000 university bill.
Free market translation: "Eventually everything will be sucked up by huge black hole corporations. Amazon will happily assist you by renting you a 10x10 room for half your salary of your 12/7 job".
@@LG-pt5kt A truly free market will inevitably be dominated by monopolies, because they have the resources to crush competitors. These lessons were learned in blood, but every new generation drinks the rich's trickle-down kool-aid.
Capitalism is not market anarchism. We've never actually lived under a free market. Property owners have always been able to embezzle money from the state through "public services" that they predominantly benefit from(most notably, police, who protect their property but do nothing for the average person).
I’m working really hard to eventually have something to pass on to my kids. Everyone pretending that it isn’t getting so much harder to even START is lying to themselves. I know I won’t get a thing from my parents who bought a huge home on a golf course when they retired. I live much more simply because I want to help my kids as much as I can when they need to start building their lives. It used to be a thing most people aspired to. I don’t know why it became “I got mine so eff you” even to your own family but it’s why so many people are struggling.
the family unit and your local community has become much less important for many people. when that happens it's way easier to just focus on your own success. it also just became harder to get yours for a lot of people. kind of hard to view wanting a family as a responsible goal when you are isolated, struggling to take care of yourself, don't have a clear path towards financial and career progression, and are in a social media echo chamber of other struggling 20-30 somethings.
I think it's time to make it more appealing for potential buyers. Real estate can be quite the rollercoaster! the stress and uncertainty are getting to me. I think I'll cut rents to attract potential buyers and exit the market, but i'm at crossroads if to allocate the entire $680k liquidity value to my stock portfolio?
"Overall, buyers hold a lot of the cards right now, and sellers are having to give out more concessions to close a deal." All the best, buying on sale is actually one of the best ways to invest in stocks, and advisors are ideally suited for such task
Until the Fed clamps down even further I think we're going to see hysteria due to rampant inflation. If you are in cross roads or need sincere advise on the best moves to take now with financial markets will be best you seek a fin-professional with fiduciary responsibilities who knows about mortgage-backed securities for proper guidance.
There are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’ Melissa Terri Swayne” for about five years now, and her performance has been consistently impressive. She’s quite known in her field, look-her up.
Our greatest mistake was not buying homes when we were in elementary school. Our 2nd biggest mistake is that we aren't on the streets protesting these practices
@@LonovavirWhat's your excuse? You didn't have money? Why? Should've been on the grind since day 1!!! Imagine living 14 years and have nothing..... You should do like a horse and as soon as you hit the ground you start running!!! Or the hyenas and predators in the wild will catch you.
I'm as free market libertarian as they come, and even I agree that having a handful of companies owning a sizable percentage of the country's housing is crazy. Too bad your rent is paying for the lobbyists that will keep it legal though.
Why? Why in god’s name are you a free market libertarian? You see the unbelievable unfairness and suffering caused by your ideology and you don’t introspect at all? You just stick to it?
I love how real all of this is an the fact it demonstrates the main problem with housing, the profit incentive. Everything is predicated on the newer generations coffing up more money for a home than the prior generation did and more houses so they can make money, leading to the current cost problem. Given this, we begin seeing the housing either bought out by large companies or kept by people to rent so they can make money, decreasing supply and further increasing prices. Every decision was made because someone wanted money and not because people need houses, leaving use in our current state. That any all other aspects of wage theft from coprations which are caused, again, by the proffit incentive.
I think that the biggest illusion that people have is that social security can solve all their problems in old age. Perhaps in the next few years, the pension system will be abolished and people will be left fending for themselves in their old age.
I went the other route in 2022 Bought an acre and a half. Put a new manufactured home on the property. Now we pay 2100 a month for mortgage, property tax and insurance. The 300k we have invested here would have bought us much more 5 years ago. I was regretting buying in 2021 but it was pay 2100 for a 2000sq foot home or 2100 for a two bedroom apartment. I picked the lease of two evils and I’m glad I did. We are blessed and extremely lucky. My advice to any one in their late 20s or early 30s is to buy a camper. Live in it until you have saved enough money. By then interest rates should come back down. Then buy the home you want. I didn’t buy my first home until I was 32.
I got my small house built in 2014, I was the first in my area after the last housing crisis, so I got lucky that my grandfather invested in cheap land gave it to his sons and asked for a small amount for myself. Every one else I know since then have been struggling way to much for so little.
I remember when I was a kid in the 90s my parents were renting this apartment and land lord offered to sell them it at 30k. My parents didn't want to live there long term, so they declined. That same apartment would be valued at about 200k to 250k present day. If I had a land lord of mine come along and offer me the property for 30k I would say yes in a heart beat.
My grandparents offered my dad a house with lots of acerage with the stipulation that he helps out on the farm. Pops turned that down in the early 80s. He would be a literal millionaire today if he took that offer. Grandparents sold the farm in the late 80s for a fraction of what it would be worth today.
My boomer parents turned down a 3bd/2ba house on 5 acres for $5000 in the early 90s when I was a toddler and my mother still kicks herself for not buying it because then I wouldn't have had to buy a house. But oh well. Live and learn. I know however that I will not be selling my house as we originally planned and I'll put a home on our other property and give this house to my kids to avoid them having to pay exorbitant rent prices in the future.
@@matthewhungerford1861 somewhat true. The parents could have leased it out when they were not living in it and have been pulling in money on a monthly basis for the past 30 years.
@@NotSure416 maybe there is no need to ban anything, but just tax the s**t out of any property beyond the 3rd (proceeding incrementally) to make it a far less appealing investment.
As a realtor, I would rank the inability to climb stairs over nursing home costs for the average age of sellers being 60. Most 60 year olds don’t need to head straight to a nursing home. I re-home lots of seniors to condos and ranch houses
This just really make me realize how lucky I was to buy a house in 2016. So many friends said to just wait until the market crashes, and that houses were too expensive, but I just thought that I didn't want to keep sinking money into renting. It was very hard to afford it at the time, but all my finances just improved ever since. I wish we weren't forced into these impossible situations just to afford a home.
Yeah i got a house in 2019 right before prices seemingly doubled. People who think houses will go down need to consider the price of rent and how it pressures people into buying for stability
I'm in a similar boat. Was encouraged by a friend to try to buy rather than rent in 2018. Was surprised I qualified w only 3% down payment Now I'm glad to own a home but need to move for my kids school but can't afford to lose this rate (that I am already struggling to maintain payments on)
@@sp123 I think I heard someone discuss that there is going to be a cultural divide between those who bought a home before 2020 and those who can't anymore. It just sounds scary. It would be way less terrifying if houses weren't also hoarded by investors who are just going for profits.
Yeah, I feel very fortunate that I was able to squeak into home ownership back in 2017. During the pandemic, I wasn't working, but my house was making plenty of money on my behalf. While I'm far from wealthy, I am keenly aware I do have a financial leg up on most and really feel for those who are on the "have not" side of this divide.
Yeah, I'm in the same boat. Bought a starter home in 2016 and "upgraded" to a bigger family home in 2019 using the equity from the starter home; even paid a little extra to refinance and lock in the lower rates the day before the lockdown started in 2020 - but definitely worth it!
Problem: low housing supply, high prices Solution: don't let PEs own homes But! Cause: Zoning policy limits new supply New solution: don't let PE buy properties, ease NIMBY zoning restrictions Great, but! Cause: 30 year low interest mortgage disincentivizes selling. Cause: Residential properties treated as investment vehicles due to above factors, big loans with low interest rates as hedge against inflation New solution: don't let PE buy properties, ease NIMBY zoning restrictions, abolish FDR-era institutions that insures creditors that issue low-interest long-term loans that would otherwise be a poor investment for them I may be missing numerous causal factors, but I think I've demonstrated that your peabrain solution ain't gonna fix shit
As a real esate agent specializing in seniors, this video hits a LOT of points accurately. One of the primary drivers for elderly to sell is to pay for assisted living. In my area, top-end memory care communites can cost up to $25K/mo!
It sounds to me like Assistant living homes = draining those seniors for every penny they have. Or i bet real estate agents/ brokers have their hands in both pots to try and maximize profits off one individual.
@@Itsyourboyben1 ... as an agent, I can tell you few of us work for assisted care communities. We do help seniors sell their homes for whatever reason. I didn't create the need to sell, I just facilitate the transaction to net the client the best outcome. Yes, we make a profit ... isn't that what capitalism is about? I'm not looking to take advantage of anyone. Heck, I have elderly parents that get scam calls CONSTANTLY!
End-of-life expenses basically puts folks into 3 categories - [1] folks that have enough assets so that the regular unearned income on that alone pays for care (pensions would be this sort of asset), [2] folks that are poor and just have Medicaid pay for care, and [3] folks that don't have enough to be category [1], and who gradually whittle away their assets until they drop down to category [2]. This creates a big incentive for wives or children to do home-care as much as possible so to as to minimize the time in category [2].
Honestly, with $341k saved up for an emergency fund, I feel like I’m just sitting on a mountain of cash that’s itching to work for me. So what’s the game plan for when all the Boomers... you know... kick the bucket? 😅 Is it finally time to scoop up some real estate deals or am I just funding someone else’s retirement dream?
LOL, love the sarcasm! But for real, it’s tempting to dive in. Real estate could be a goldmine if you play your cards right. That said, ever thought of sitting down with an investment advisor? They might just save you from throwing that cash into a money pit
Yup, I’m right there with you guys, but I’m kind of lost on where to start. $221k feels like a solid safety net, but I’m not trying to mess this up. Should I look for an advisor too? Honestly, no clue where to even begin
There are a handful of CFAs. I've experimented with a few over the past years, but I've stuck with ‘' Linda Aretha Reeves” for some years now, and her performance has been consistently impressive. She’s known in her field, look her up.
Funny you mention her! Just looked up Linda Aretha Reeves, and she seems like exactly what I’ve been needing to get my investments on the right track. Thanks for the rec!
The note about assisted living quality dropping caught my attention. With the number of old people who vote rigorously, you'd think they'd recognize it's in their interests to regulate the industry to ensure decent quality and non-exploitative prices... but that doesn't seem to be the direction things are going. When my mom was in one of these facilities a decade ago, we couldn't believe how gross and underfunded-looking it was. If you're telling me quality has gone down since, that's really troubling.
Too many of them have bought into the individualist mentality. They think that success and failure is completely due to personal responsibility and so most interventions that would improve living conditions across the board are turned down because they don't see a systemic solution can fix personal moral failings. The group would rather eat itself first. "Why should X get a house when I had to struggle for mine?" "It sucks that young families cant afford a place to live but its not fair that the people who did well for themselves have to be punished for that!" Etc.
@@PrettyGuardianI'm thinking more about entirely self-interested voting. A large number of old people generally end up needing assisted living or wanting to live in a retirement facility, etc. Those facilities are getting much crappier, because they're being bought up by large holding companies that want to squeeze every dollar out of them. You'd think we'd see this cohort voting to improve the places where they're living or going to end up, by regulating away the worst tactics being used to maximize profits at the residents' expense. But maybe these large companies know just how far they can drop quality without generating a coordinated response. Or people don't care quite as much as I feel like I would, in their position. *shrug*
@@danielhale1The biggest consolation I can tell myself is that once enough chickens vote for Col Sanders, we won't have to worry about chickens ruining things for the rest of us anymore.
Mom is in California and she and I used to volunteer in these convalescent homes . We have private medical insurance and even then, the cost is draining our family accounts. Where I am in Canada SAFETY is now an issue. In a GOOD govt. facility a senior in care with dementia murdered my neighbours grandfather.
Not gonna lie - as someone on the architecture path who has only been in the workforce for a year, this makes me want to learn carpentry so I can not only design but also build my house one day. Nobody takes the time anymore to build something that will last and if I can build a house that holds up when my kids and grandkids are around then all the time and energy will pay off doubly than the shoddy construction of the few “affordable” houses that exist today
I have an Aunt and Uncle that did this. My Uncle didn't even do much with his hands when he was younger (he worked with electronics in the Air Force), but they bought a 20' x 40' shed and built an apartment in the back of it to live in and over about 2 years they made the drawings and built their own house. They did most of their own work and hired subcontractors here and there to do some of the more specialized work and things like pouring the slab. My Aunt is particular so they spent a pretty penny on it, but it was cheaper than buying and they made exactly what they wanted.
Sadly unless you live in the middle of nowhere carpentry is going to be the least of your worries. Permits, electrical, plumbing, and having everything checked to make sure it up to regulations will drown you
The housing situation in Canada has become a straight up farce. Some of my friends and I are extremely lucky in that work from home means we can emigrate back to our old countries where we can actually afford to live on our salaries... absolute madness.
My mortgage is around $3k. The average rent of houses in my neighborhood is $6-8k. How is this fair or reasonable? How can you allow someone to rent a house for twice of what it costs to rent, but the bank doesn't think it can trust these lendees to pay on time?
I think a huge way to combat this would be to enact laws that limit how many residential homes a person can own (including corporations since they are “people” after all). Of course passing laws like this would absolutely scare the SHIT out of people who own all these properties in the first place. It would effectively wipe out non-liquid equitable wealth for these 1% people overnight, and they’d be forced to sell at a lower value or risk having their properties seized by the government enforcing said laws. But it would actually allow for the rest of the working population to actually be able to afford homes. Granted they’d be subjected to the same residential ownership cap as the wealthier folks, but l guarantee you these people would not care and would just be happy to have a home. It would essentially be a giant redistribution of wealth. If you think this is a law you’d like to push, be prepared for some incredibly cutthroat pushback from the people who own these properties. Companies like Zillow would essentially dissolve. There’d be a TON of propaganda funded by wealthy investors to convince the populace that this would destroy the economy (spoilers: it won’t. It will affect THEIR pockets, but it will absolutely help YOURS).
Wait if corporations, are people, dont they have the right to vote? Good thing you are full of it, and have no clue what you are talking about, or the ramifications of your crazy ideas
@@danielshchyokin3047 “Corporations are people” is the current law of the land after the Citizens United Supreme Court case. That wasn’t the commenters personal opinion
@@James.Colesanti It doesn't mean they are really people. Corporations can't vote. Or drive a car. Or get pregnant. They aren't people even if the law treats them that way in certain instances. But you knew that. You can admit it. Go ahead, be honest.
@@danielshchyokin3047 Im pasting what James.Colesanti said: “Corporations are people” is the current law of the land after the Citizens United Supreme Court case. That wasn’t the commenters personal opinion
Yes. This is corporatism. They basically just take turns owning various parts of government and keeping politicians who are friendly to them in place, while the same politicians spout about the evils of rich people and capitalism and run and get re-elected on the empty promise that they will do shit about it. I don't care if you are leaning left or right in the upcoming elections, the hard truth is that it will. Not. Matter. This is their nest egg being threatened and they will absolutely crush a country and run away after new laws are made to combat the pressures of what they've been protecting for years. Even Nancy Pelosi is planning to retire in Florida because the laws she helped enshrine would affect her own wealth. But take heart: the worse it gets the stronger the people are who will be born out of the struggle. Lessons will be learned, bad science eventually gets rejected. There WILL be a boom after a hard enough crash and it will benefit people more than hurt them.
9:16 - The stock video of a "rich guy" standing at the charging station holding the cable as his Tesla charges (for 30-60 minutes) is hilarious imagery to me.
I’m so glad I bought my home when I did. I was able to do that because I never had kids, got married, took out student loans, or a car loan. I also lived in a warehouse/storage unit for two years to save up, and I went through a non profit that helps first time home owners. My best advice is to put off having kids as the big corporations are FREAKING OUT over the birth rate decline. They need to be deprived of new consumers in the system they created.
unless you're a woman, in which case you better have that house before you're 35 coz time is running out. I gave up waiting because I wanted a kid so badly and i was running out of time. Home ownership is so close for us, but the market and interests rates are too high so we wouldn't get approved even though we both earn a decent wage. Our renting situation and work situation are the best they've been, that aside, but we've had so much bad luck, I'm constantly worried about a layoff or if my landlady changes her mind or something randomly bad happening to us. But i'm not the only one who did this; I know a gen xer who had her kids before owning a home and they finally managed it at 45 - she is very glad she didn't wait because it would have been too late. If you're a man, you got all the time in the world, if you're a woman and you know you want kids, you just don't have the luxury of time. A house can be bought any time.
They will be deprived of nothing. Pay attention. Estimates as high as 20-30 million illegal aliens in the last 4 years. I've personally seen school buses full of Mexicans from Mexico pull up to gas stations. They get back on the road and head further north, and I'm already up north America is gone. We stand for nothing but corporations bottom lines now. Dark days ahead
The final battles of the Cold War were economic, not nuclear like everyone expected. The apocalypse we're living through is much the same. It's not a zombie virus, an alien invasion, or an epic clash between the forces of light and dark. It's a slow death by economic attrition. The apocalypse sucks.
Having bought a house in 2002 which needed some costly repairs in 2007 (which I refinanced my house to get the money for), the 2008 crash was SERIOUSLY stressful. Folks who were in a house and wanted a better one were stuck underwater in their mortgage. Decent houses were left empty for years as banks worked through the legal process of repossessing them - and those houses got run down quite a bit during that time. Everyone was stressed out from losing their job, potentially losing their job or just being stuck where they were at. Wage increase requests were met with "lucky you have a job!" answers. Unless you were already money in hand shopping for a new house in 2008 (or were in the midst of building your real estate empire), the 2008 crash likely wouldn't have benefited you much. Maybe if you wanted to buy into the rough side of Philly or Detroit. Oh, and don't forget that the 2008 crash was due to too loose of lending practices, so that home loan you thought you had approved could be denied at the last minute as the screws tightened.
@@Lee-fw5bd Yep, only way I can even begin to think about buying a home is to pivot into engineering weapons or energy solutions, thats where the BIG money is for engineers, and lord only knows how big house prices will get.
We were finally able to buy a town home at half a million at a lower interest rate but that required us saving for 10 years and both of us working full time with one making 70k a year and another making 110k a year. mortgage is 3k plus hoa, insurance, etc. it's insane. (edit: its a 2,100 sqft house with three floors in a very desirable area near everything you could want, so yeah it comes with the cost but 7 years ago the price of this house was $250k)
Here in western Oregon a "house" that is for the most part a townhouse goes for half a million. I mean technically the walls are all separate, however there is maybe 5 ft in every direction and the house is barely wider than a 2 or even 1 car garage. For 650 you can get an alright house. And this is fairly cheap for the West Coast.
Most boomers are going to sell their homes when they retire, buy something cheaper, and use the difference to help with retirement. So I don't think there will be much of a wealth transfer.
Most boomers have already retired by now. If any are still working they’re going strong that’s for sure but idk many boomers even physically capable of still working
@@Nzzertral I must know a bunch of young Boomers than because every Boomer that I know of is still working and are planning on retiring in 5 years or so.
Home ownership is highly overrated. I own two single family homes (one rental and one primary residence). I pay 10k for property tax for my primary residence and 5k in property tax for my rental. For my primary residence I pay about 3k for repairs, 1k for insurance and probably 2k for maintenance every year. I have similar repair costs and insurance costs for my rental. Luckily, no HOA fees or condo fees. But, these in combination with a mortgage are very expensive. Also, plumbers, electricians and HVAC techs easily charge over $100/hour for repairs; grass cutting companies easily charge $50/cut; and other services like pest control or roofers increase in price every year. Appliances are much more poorly made than 30 years ago and only last about 7 years from my experience. So, you are constantly replacing appliances. Every repair falls on the owner. A roof alone can cost $20k.
I have been told, by a Realtor, that in my subdivision I am the only person that owns a home. The rest are rentals owned by corporations to be rented at ridiculous cost. I purchased 19 years ago and survived the 2008 debacle by putting 20% down and getting a fixed rate mortgage. The only way I could afford to do that was by working 2 full time jobs, for over 15 years.
"It doesn't mean to be working class or middle class anymore, the only thing that matters is if you own a house".. I'm still processing this sentence, so true, such a small sentence and so full of truth and wosdom. I'd love a video braking this down, just so it's clear for me and everyone who watches it. Great video, amazing and important content ❤ xie xie
Nah, he missed the mark. There hasn't been a middle class for decades, and you've never been part of it. When most people can't afford to buy land from the lords, that's feudalism.
Even GenX got caught in this. My house isn't worth what I've paid for it after you add back in the mortgage interest. And I never could have bought a house without a mortgage. Many boomers were able to buy a house without a mortgage, or with a very small partial one, and the values soared for them. They were the last generation to see that kind of advantage.
@@emilyfeagin2673Not my house. And don't forget we've had at least one housing bubble burst that bankrupted many people. It's not as simple as averages.
@@NswixI knew some personally when I was a kid. Younger friends of my parents who were making more money because of how much more affordable and accessible higher education was to them than to my parents' generation (silent generation). They skipped the 20% mortgage rates by buying cash. It's happening again, because of the boomer wealth they have now, and happening on a larger scale now than when I was a kid.
The game was over the moment old people started living 40-55 years longer than they used to. They’ve become economic vampires sucking the life out of the young
I bought a home in 2010 and all my friends thought I was crazy for taking on such a large responsibility. I did it only because at that time I could basically pay a mortgage equivalent to what I was paying in rent. My logical brain thought that made the most sense to basically pay my money into something vs nothing like rent does.
I bought in 2010 too after saving for a year making $60K. And I still had a freakin hard time in 2019 finding an accessible home I could afford as my housing budget did not increase like the rest of the market. 😅 I graduated without debt, was extremely frugal, bought at the right time, had roommates AND I still needed the financial help of my boomer parents to get into a semi-detached home instead of a townhouse condo.
My parents are boomers and had their house paid for by my grandparents in 1986 ($74,000 only).... And then had the gall to tell me how it was all them that got to where they are now - I nearly spat out my drink across the table! As an Accountant, I explained to them that forensically, roughly half was them and half was gifted from their parents, and they had to eat humble pie. Since then they have warmed to my Gen X plight of trying to get onto the property ladder, offering to help me with my housing. Half my effort and half my parents help sounds fair, generation to generation, yes?
That's interesting because you are not the first person I've heard this from and it's the same with my parents. They had their first home purchased for them by their parents and had a lot of financial help despite them both having really good jobs in the late 80's and 90's. But they act like I'm just a failure for not being as financially successful as them despite having the same type of job my mom had back in the 90's but being paid almost half of what she made, and having no meaningful help from my parents. And the Boomies still expect help from the government and young people and want it all for free or the lowest possible cost or they will throw a tantrum.
@@dubstepXpower The issue now, as with almost all things, is that these things were never sustainable and they didn't give a crap because they were making money. So they kicked the bucked down as long as they could and now it's a shit show because of these practices. Housing, water, food, energy, etc. these are all things we should have but money got in the way and now we are running out of affordable housing, food, energy and literally running out of drinkable water.
wouldn't work, then they'd move into other things, that we use to live. I'm talking utilities, garbage collection, Internet access... and on and on. No, we need to revitalize productive industries like mining, material refining and consumer goods production, that way, ROI will be better in that sector than in housing and these investors will start selling and move into them.
I'm pretty sure half the problem would be solved if government didn't have so many buildings regulations & special interest groups didn't keep suing building developers for random reasons. In CA, many developers get sued over "environmental protection" reasons. But in several cases, there was no indication that preventing housing stopped the decline of a soecies or habitat (so do, thats understandable, but I'm talking about the ones that don't). There are folks trying to build new homes, but lawsuits & government regulations drive up the prices or stop the construction.
Mortgage guy here, interesting video but small correction: FHA allows downpayments as low as 3.5%, not 3%, but Conventional loans allow first time homebuyers to put down just 3% as opposed to the usual 5%.
@@bazzfromthebackground3696 of course, it is not downpayment that is preventing most from buying homes right now. I will say, with Debt-to-income ratio allowances around 50% (and that’s off gross income, not net), qualifying for a home is easier than most think (though I do see plenty of poor credit). However, the ability to pay that 2k a month is housing costs on 4k a month gross income is another matter entirely. Unfortunately, it doesn’t look like things will be getting easier for first time homebuyers anytime soon.
@@Dbb27 yes, although since last year, it’s also only .0055% annually of the loan amount, which is 110 a month off a $240,000 loan. Not bad, better than conventional MI. If home prices do indeed continue to rise in most areas of the country, someone who puts down 3.5% could potentially refi in a few short years to conventional when rates are a bit lower and they have 20% equity in the home from amortization and appreciation.
@@internetdude1233 nice it was lowered at least. I understand they have a huge bank of funds now. Refinancing isn’t cheap of course so unless rates drop more it’s not worth it.
What I love about the ecconomy, and indeed the civic system, is that both are centered around crushing the life of the young so that the old may prosper. It would legitimately make for an excellent YA distopian fiction novel if it wasn't for the fact that it has become our reality. I wonder if any savy authors have tried penning a novel that frames blackrock's ceo as a president snow figure only to disappear after showing it to their publisher...
I often think about the nature of inter generational interaction in the west. We have an issue for certain with our wierd 'get a job' mentality. I've settled on pity. How sad it must be to have been so empty that they denigrate their own children.
Ok now I want to write this. Wealth inequality is the cornerstone of modern dystopia but what if it was the only government level conflict? Might get people to pay attention to how scary modern America is.
@@zachweyrauch2988it’s worst in the east. Korea having the lowest birth rate, followed by Japan, China and Taiwan, due to high housing prices and low income. These places values filial piety and family connections the most with their whole culture built on it. It’s about greed and ignorance, not their lifestyle.
It seems unaffordable to not have your parents live with you in old age. If it costs close to $100k a year for a nursing home... Even paying a nanny $40k would be better.
We sold our LA compound to cash up the funds, and we have private medical insurance. Depending on the parents conditions, (our mom is in better health than any 3 of her sons) you may need various types of car, and more than one person. WITH medical insurance we're now going through almost 100 grand US a year. And that's with no drama.
I help take care of my grandmother. If she was even slightly less independent, I would be basically unable to work unless I found a job working from home. She's legally blind, lives on social security, and since she can't see, she needs help with preparing food. And compared to some people I know, she requires basically zero care. She doesn't need help with the bathroom (outside asking for her shower chair to be set up for her), she doesn't need to be fed or reminded to take her meds, she's not bedridden. The nanny isn't going to cost $40K, not in the US. It's going to be more expensive. And a lot of them wouldn't agree to taking care of a senile adult who flings poo at the walls.
@@Ornithopter470 \mom will be 96 in a few weeks and is also legally blind, so we don't move anything in any cupboard. She worked decades ago with difficult seniors and wasn't paid enough. 24 hr. care, even if intermittent (a.m./p.m./occasional and we're going through almost 100 grand cash a year, Min. just went up in Calif. , too. And this is mom with all her mind and no really special needs.
@@irondragonmaiden Three shifts a day, 5 days a week, and then you have to find people to cover the three shifts on Saturday and the three on Sunday. When a person has to be watched constantly due to risks of falling, or seizures, or wandering off and drinking cleaning soap or something worse, someone else has to do the shopping and then there is transportation to appointments. It can easily end up costing more than facility-based care.
When all the boomers die, equity firms will buy up all these properties, or as many as they can, and rent/lease/airbnb them out to whoever or just let them sit until they fall apart. Just my opinion.
Possibly, it will also depend on whether Biden’s new tax proposals go through. He’s wanting to do away with trusts altogether so that would give a high percentage of them to the state via Medicaid to pay for assisted living situations. LLC’s aren’t much of a wall anymore either
@@willieverusethis Nah, the big corporation with millions of houses will be hit with demands from their plumbers, HVAC staff, roofers and other employees: "Sure, we will sign a new employment contract, just double our pay and give everyone a house or watch your rentals fall apart."
I live in rural Georgia (median income 25k) and I saw a double wide on less than an acre sell for 50k a few years ago, 75k around Covid, and 125k before the massive surge in interest rates.
I think it is mostly difficult for first time home buyers. Those who already own a home and have equity built up will have an easier time of it. Also people tend to make more money later in life as their career progresses. The other thing making it difficult are investors, where they artificially drive up prices only for the correction to eventually come. There also seems to be a goal of investment companies to make everyone a renter.
Wow great report. I knew the system would 100% fleece the elderly before letting anything be passed down. That said if you want to inherit something from your folks the tried and true method is to take care of them yourself in their old age via a multigenerational housing plan. Both my father and grandmother showed me how rewarding and kind that setup for dignified end of life support close to family can be.
The problem abt that is that right now, a lot of companies will take up as much of your time as inhumanly possible. My partner has been called in for work nearly every week for the single day she had a hard no on working. She didn't get weekends free either. I have a better job/life situation but I still am flooded with work from 8am to 6pm. The option if you have to take care of your relative is to not have a life of your own after work. I have limited PTO and even if I have to go to the doctor, showing up with a paper that says I've been away for an hour to the doctor means I need to catch up on that hour somehow. For reference, my partner is american and I'm european. I completely agree with you that multigenerational housing is great, but a lot of people simply do not have time for it and still have some time of their own. We are facing a more systematic issue I think.
I agree that younger folks have difficulty purchasing a house. due to high house prices and stagnant wages. Our son and his girlfriend purchased a house recently. We have been out of the housing market for a zillion years so were surprised at the current cost of housing. Something I have not seen mentioned is building your own house. My parents were frustrated with housing costs immediately after WWII and that inflation was rising faster then they could save money so in 1953 they built their own house. My wife and I did the same in 1982, we were lucky to find a large property and built our house. At the time interest rates were extremely high. We were betting they would not stay so high and that we would be able to get good prices from subs to do work we could not do ourselves. It could have gone the other way but worked for us. Of course building your own home is not for everyone but I think there are creative solutions to the problem. Ultimately home prices have to track what people can afford to pay so at least indirectly linked to income.
Having worked with private equity shops, you can be certain there is a meta plan in place to syphon boomers money at scale. Ridiculously high assisted living costs is such an amazing idea. You appropriate literally the wealth accumulated over a lifetime in a few years, when people are weakest both physically and mentally. What used to be generational wealth transfer is now going from retail to private equity. What kind of margins do these businesses have? Are there institutions that make you change your will to them before accepting you? I would do that too. Most American thing ever.
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Many retirees also plan to spend it all so no heritage for many. But they will die within the same decade but this will be only in around 20 years from now. So yeah at least 20 years to go so too late for everyone looking for a house now lol.
Communist Blocks have never seem so utopian...
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My first financial mistake was being a sixth grader instead of buying a house. It has been an uphill battle ever since.
So dumb of you.
Lol these how the boomers expect us to move 😂 litteraly we have it harder statically then they ever DID.
Better start investing now with your lunch money
Yea no kidding, what were you thinking!
Boringggg everyone copy this sentence 🤷🏻♂️
My dad and I had the same job in the same metro area. In 1969 he bought his first condo in the Los Angeles area for $16k and his annual income was about $12k. When I started the same Job in 2010, that same condo was worth $300k and my annual income was $65k. Today, it's worth over $420k and has similar mortgage interest rates as in 1969. I currently make around $110k a year and my father's income never went over $70k a year in his prime. To have the same purchasing power today, my income would need to be about $323k a year.
Wow, that's like complaining that I can't buy as much gold with my job today as I could have bought with the average job in 1969. Tell me more about your complete lack of understanding economics over time, please.
@SeanTheEvans woah! it's just a comparison between the same job and the same property but 50 years apart. Simply put, wages have been stagnant compared to housing costs so a larger percentage of people's income now goes to housing and the gap is only continuing to grow. I actually own a couple different properties with low interest rates so I'm definitely not complaining.
@@SeanTheEvans Way to completely misunderstand the example, Sean. But also you misunderstand your own example; you prove his point. You're looking at two baskets of goods and asking how many labor hours in the same job would be required to buy the same goods, in two different years. That's literally how economists do it. While ounces of gold alone is a terrible basket, housing alone is worthwhile.
Separately, you're an annoying little shit because of how you communicate. Stop it. Either stop being such an annoying little shit, or stop communicating. Either way is good for us.
@@mllenessmarie haha no worries lol thanks for the backup
My parents bought their first 3/1 house in Wichita, Kansas for $5k in 1955. Their combined annual income was $8k.
That house sold last year for $370k.
It's like playing Monopoly. But everyone else has been playing for ten rounds already, all the properties are already sold and the the game board is on fire.
Not even "like", that's exactly what it is, the game had winners before most of us were born to be the losers, paying just to be on "their" squares.
In the UK version, everyone pays a little at the end of each turn for people who need hospital care. Also, the banker in this version does some money laundering and you can skip the income tax square if you have enough hotels.
Its almost like monopoly was made to replicate and criticise capitalism lmao
Exactly. And it pays to go to jail so that you aren't moving around the board landing on those expensive properties with hotels and being wiped out.
@@Cheesite At least the UK version lets you use the hospital care you paid for without additional cost. In the American version people also pays a little at the end of each turn for people who need hospital care but only the poorest players can access it instead everyone else has to pay even more money for hospital care.
The fact that housing is considered an investment is one of the biggest issues. Limiting how many homes a person can own and getting investors out of the housing market should help normalize things but at this point, I'm just hoping for a Thanos snap
Worst part is alot of the time people dont actually really make that much money with their houses if they have not owned it for more than 15 years, and even there, its not a great profit margin compared to how much money you spent on maintain the home and fixing shit in it. Or when you go and renovate the kitchen or bathroom. But it does make equity which helps you get loans and your credit score....
Hauaahja try that in a comunist country
@@invertedv12powerhouse77 Then you do spend the time and money to acquire a house, fix it up, and try to resell or rent it, just to find out someone came in overnight to break in and steal the AC unit and copper wiring. Now you don't have the money for repairs and have sunken hundreds of thousands into a pointless venture.
@@pontoancora Just look at housing in Vienna, Austria which is a democratic country.
mortgages also really messed things up. today, prices are really set by banks and how much they are willing to lend out, so it is a game between banks, not buyers and sellers.
You missed a big issue: healthcare expenses. A lot of people will die in the hospital or long term care facility. Their estates will be pulverized by these expenses before they get close to the heirs.
Which, interestingly enough, is precisely the reason why European and Scandinavian countries don't have this issue nearly as much. Yes, you pay higher taxes but health care costs don't eat everything you own by the time you die.
Even in Canada, you go into govt. care and basically the agency grabs your pension, any liquid assets, and you're done.
I mean he did mention nursing homes and assisted living which is where a lot of the cost will go. Any acute care in the hospital would likely be covered by Medicare, but if you don't want to rot in living hell you'll need to sell your home to pay for good long term care.😮
@@JessicaO490Z he did say those things, but not the things I mentioned. Hmm, perhaps there is a reason they are brought up separately. 🤔
@@HeronPoint2021 This is why it's best to divest long enough before that these assets won't be seized by creditors. Obvs you can't do anything about the pension.
Law should be updated to make corporate home ownership illegal
they will NEVER do that. Remember these politicians are in office because these companies financed their campaign and give them money on the side
I agree. Homes as a corporate investment is ultimately a harm to the public.
I fully agree. The housing market is so crazy because most homes are owned by corporations. A 500 square foot home should not cost $700K!!!
Absolute Agreement!!!!
Edit: hopefully this will become a law, with the exception of distressed properties where the entity is at fault. For example; environmental contamination. Make it their responsibility to clean.
@@dennydude did you see the part of the video where it shows corporations were 13% of purchases in 2021. They own somewhere around 20-25% of overall supply
I'm in Michigan, and the housing market here over the past 7-8 years has been unprecedented. Houses that were purchased for $130K in 2015 are now going for $590K. These are tiny, poorly constructed 950-square-foot homes in quiet, mediocre neighborhoods. Meanwhile, nicer, average-sized homes in better neighborhoods that were over $300K a decade ago are now selling for $750K+. It's wild.
A recession as bad it can be, provides good buying opportunities in the markets if you’re careful and it can also create volatility giving great short time buy and sell opportunities too. This is not financial advise but get buying, cash isn’t king at all in this time!
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"Housing is so bad I'm going to have to live with my parents!"
Me: Wow... your parents have a house?
For real. My (divorced) parents are gen x and neither own a home. My dad rents, and my mom lives on her boomer parents' land.
@@TheTabascodragonand what about the kids of millennials and zoomers? I can't even imagine what they are/will be saying.
Yeah my friend's mother is like that, she moved into berlin where it was bombed to shit, and rent was so cheap there never was a reason to buy a home. Now she really wishes she did
@@yaelz6043
They'll be conscripted to fight WW3 and will live in appaling conditions in Barracks for 20 years before Nukes start flying
(The Nukes take so long to fly because everyone's pussy footing about and keep threatening to use them without actually doing so until someone finally says "to hell with this" and just gets it over and done with)
“Wow, your parents aren’t divorced?”
I love getting financial advice from a generation whose job hunting experience consists of walking into a place where they wanted to work, asking if that place had an available job, and getting hired on the spot.
Ask A Manager has a whole section on her website about 'showing moxie' and other terrible job-hunting advice (nowadays that kind of actions would get you blacklisted as a crazy stalker)
@@sd-ch2cq 😂😂😂
"It worked for me 56 years ago, you youngsters are just lazy" 😂
@@filteredjc4653 "I paid $11 a month for a 3 bedroom apartment and I assume it's still $11 a month now!"
I’m a millennial and this is actually exactly how I got a valuable paid internship in my field of study during college. You cry babies just suck at getting what you want 😂
Back in 2007, during my time working in real estate, I witnessed people purchasing newly built homes from builders with the plan to sell them before the closing of escrow to another buyer for a profit. The crash hit hard and fast, and I vividly recall many of these units ending up foreclosed upon, with the builder's plastic still covering the carpets.
Most people find it difficult to handle a fall since they are used to bull markets, but if you know where to look and how to maneuver, you can make a size-able profit. Depending on how you intend to enter and exit, yes.
The enduring US stock market bull run evokes a mix of fear and excitement, presenting opportunities with insight, resulting in $780k gains in the past ten months, utilizing a portfolio advisor for a well-defined strategy.
My portfolio has been in the gutter for the entire year, so I started researching new ways to profit in the market, but everything I tried just seemed to miss the mark. Please let us know the name of your financial advisor.
Credits goes to "Sharon Lee Peoples" one of the finest portfolio managers in the field. She's widely recognized; you should take a look at her work.
Asking a real estate agent whether you should buy a home right now is like to asking an alcoholic whether they think you should have a drink lol. Homes in my neighborhood that cost around $450k in sales in 2019 are now going for $800 to $950k. Every seller in my neighborhood is currently making a $350k profit. Simply unreal. In all honesty, deflation is what we require. The only other option is for many people to go bankrupt, which would also be bad for the economy. That is the only way to return to normal.
Home prices will come down eventually, but for now; its best to offset some of your real estate investments and get into the financial markets or gold. The new mortgage rates are crazy, add to that the recession and the fact that mortgage guidelines are getting more difficult. Home prices will need to fall by a minimum of 40% (more like 50%) before the market normalizes. If you are in cross roads or need sincere advise on the best moves to take now its best you seek an independent advisor who knows about the financial markets.
It's often true that people underestimate the importance of financial advisors until they feel the negative effects of emotional decision-making. I remember a few summers ago, after a tough divorce, when I needed a boost for my struggling business. I researched and found a licensed advisor who diligently helped grow my reserves despite inflation. Consequently, my reserves increased from $275k to around $750k.
this is definitely considerable! think you could suggest any professional/advisors i can get on the phone with? i'm in dire need of proper portfolio allocation
My CFA ’’Aileen Gertrude Tippy’’ , a renowned figure in her line of work. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market.
Appreciate this recommendation, hopefully I can get some insight to where the market is headed and strategies to beat the downtrend with when I hear back from Aileen.
My dad's actually running into this problem. He'd like to sell his Salt Waterfront home with acreage and a dock, but, there's only one problem:
The only people who can afford it are Boomers and older (I'M a Boomer!), and _they already have their dream houses in the woods._
I think this is why selling is on hold, despite homeowners listing their homes. Only companies can afford to buy
You are a boomer but you have a dad ?
How old is he ?
@@LSMH528Hz How many keys are on a piano?
Depends on what type of piano@@TimeSurfer206
3 < year’s difference for mine
Can’t begin to tell you the amount of people that I’ve seen take care of their aging parents and sacrifice their own life, career and family, just to find out mom and dad had drained all of their money to fund their medical and living expenses. Leaving them with NOTHING. I work in banking so I see this almost on a weekly basis.
It's not a parent's job to leave their kids money. That's extremely selfish and self-serving to think your parents only exist to give you an inheritance. The parents worked and earned their money, and they obviously needed it to live on and survive. Why do kids think they're owed and entitled to their parent's money? If my parents left me absolutely no inheritance, I wouldn't care because I have my own job, and I'm smart with my finances. I care about and love my parents as people, not as cash cows.
@@heatherdisney Absolutely agree. What I was referring to was what he mentioned in the video: do not expect to receive any funds from your parents' estate. Was simply pointing out examples of how I see adults put their lives on stop to take care of aging parents, perhaps thinking that at least they will get some moneys when their parents pass. Latest case I saw was 2 sisters. One married with kids, the other one with no kids and unmarried. So of course, the responsibility of taking care of the aging parents fell on the unmarried one. 9 years later parents die, left 0 money for her due to having to use it all for medical expenses and living expenses (expected). That woman did nothing other than take care of her sick and aging parents until death, only to get the unfortunate news that her parents had even sold the house they were living in and actually died with debt. And trust me, this is more common than people realize. So as the video said, DO NOT expect to receive an inheritance. Most people deplete their funds prior to passing.
@@heatherdisney You made quite a bit of assumptions in that retort, no? Do you have a family? Do you want to give them a good life? Why is that? It's because you *want* to, not because you're expected to. The actual original point, is that it's really sad when a wealthy generation doesn't *want* to help their grandchildren, and somehow consider that virtuous.
@@heatherdisneyI mean you might care if you spent a whole decade caring for them instead of making money at a job only to be left with nothing. On the other hand you're probably going to just dump your parents at a nursing home and let them get whatever they can get with Medicare (which is basically a hell hole). 🤷
I've watched my parents spend well beyond their means their whole entitled lives in a frenzy of blind consumerism, buying sound bars and replacing perfectly good furniture every few years, or paying to have the gardens they can't even walk around too enjoy at 83 years old. I also see the HUNDREDS of thousands of dollars they're in debt from the continued awful spending practices. They're leaving their family nothing but debt and the stain of a life of selfishness. Boomers through and through.
My step-father died in "his" house having never paid it off with less than $10K in his account. When his daughter came to claim her inheritance, all she received were his unpaid bills.
Yeah, they have to put it in a trust otherwise it will get destroyed by debt collectors and taxes
This is pretty much the boomer generation in a nutshell. They made a shit ton of money in their lives, but they were the party generation, the first credit card generation. Everything they made they spent already.
@@notmyrealname3167 Because society preyed on them, just like it does on us. Don't blame the victims. Every leech out there is trying to beat you to your parent's money.
While that may be true, she also interrited the equity that he had in the house. That should be hundreds of thousands. Not all boomers were good with money though.
😵
Back in the day, when I purchased my first home to live-in; that was Miami in the early 1990s, first mortgages with rates of 8 to 9% and 9% to 10% were typical. People will have to accept the possibility that we won't ever return to 3%. If sellers must sell, home prices will have to decline, and lower evaluations will follow. Pretty sure I'm not alone in my chain of thoughts.
If anything, it'll get worse. Very soon, affordable housing will no longer be affordable. So anything anyone want to do, I will advise they do it now because the prices today will look like dips tomorrow. Until the Fed clamps down even further, I think we're going to see hysteria due to rampant inflation. You can't halfway rip the band-aid off.
Home prices will come down eventually, but for now; get your money (as much as you can) out of the housing market and get into the financial markets or gold. The new mortgage rates are crazy, add to that the recession and the fact that mortgage guidelines are getting more difficult. Home prices will need to fall by a minimum of 40% (more like 50%) before the market normalizes.If you are in cross roads or need sincere advise on the best moves to take now its best you seek an independent advisor who knows about the financial markets.
I will be happy getting assistance and glad to get the help of one, but just how can one spot a reputable one?
Certainly, there are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’Melissa Terri Swayne” for about five years now, and her performance has been consistently impressive.She’s quite known in her field, look-her up.
yeah but 10% on 80k is a lot less than 6% on the 800k that the same home now goes for.
adds salt to the wound that boomers don't realize how much more financially difficult we have it in modern times..
Being a boomer, I am perplexed where people are getting the idea we had it so easy. Being a woman, working before sexual harrassment and/or exploitation was against the law, being paid ,.65 cents for every dollar a man earned, never being promoted or given responsiblity because we MIGHT give birth - the only way a woman moved up in that world was marriage. Standing on your own two feet was dangerous and risky. When Rose Mcgowen started that MeToo movement I LMAO. Been having one my whole life.
@music4566 "Being a boomer, I am perplexed where people are getting the idea we had it so easy. "
It's because your dollars were literally worth more than ours.
To copy an easy example from above: "My dad and I had the same job in the same metro area. In 1969 he bought his first condo in the Los Angeles area for $16k and his annual income was about $12k. When I started the same Job in 2010, that same condo was worth $300k and my annual income was $65k."
You may have been making 0.65 per dollar, meaning 7.8k, compared to this guy's Dad, but if we take the 2010 example this guy would have been making 0.26 per dollar, or 3.2k.
Conditions haven't equalized upwards but downwards. We are all now proportionately more than twice as bad off as a woman in the 1960s-1970s.
Edit: After comparing median wages in 1970 for a man vs median housing cost, as well as both the general median wage currently and median housing cost, the true value is actually about 0.25 cents to the 1970s dollar.
Not true. We know it. I have spoken out for years about how much things cost today relative to what we made in wages as compared to today. We will work with your generation anyway we can to fix this mess. But your generation needs to focus on electing candidates who are interested in promoting the average Joe's economic interest and not a leftist social agenda just meant to divide us.
@marvelmusic4566 Honestly, go post your left wing rhetoric somewhere else. Back then an average man could work one job, to own a house, car, and raise a child.
Now both parents have to work to rent an apartment, lease a car, and have their children raised by the tv/the state. So seriously hope "equality" was worth all the B.S. cause now we're all suffering this socialist beauocracy you wrought upon us. Trump 2024. (I'm 30 and have to live in a fucking car!)
@@DavidSmith-fr1uz Only one dividing is the right. CRT wasnt an issue until the right wing talking heads latched onto it, despite being around since the 80s. "Woke" wasnt an issue until the right wing talking heads latched onto it despite being around since the 80s. Books that have been in schools for decades havent been an issue until the right wing talking heads latched onto it.
The only one pushing social agendas is the right. Going after settled law like Roe v Wade. Trying to outlaw LGBT+ people, etc. etc.
So go right ahead and blame "our generation", while yours continues to be short sighted, selfish, and racist.
I'm surprised he didn't talk about inventory destruction/ghost houses, because we have a lot of that going on too, just not in the way traditional inventory destruction is done.
Leaving aside natural disasters that were so bad people just don't bother rebuilding, companies are engaging in inventory destruction of housing. It's one of the reasons, despite massive uptick in building in the last two years we still have rock bottom inventory (that even without inventory destruction still wouldn't be enough, unfortunately). Unlike when Amazon dumps a bunch of stock in the garbage, housing inventory destruction looks a little different. A company buys a house, or condo, or townhome - basically anything that qualifies as single family housing - and then leaves it empty. They don't rent it (short or long term), nobody lives in it. This restricts the rental and homeowning options, to drive up prices. Higher asset prices means they can take out larger loans against the asset, and demand higher rents from the units they do happen to be renting. (It's rare for a company to ghost house *all* their housing stock. Just 15-20% of it.) Depending on the locale, 7-20% of housing in a city is ghost housing / destroyed inventory.
Can see this on the street in my own neighborhood even though we're in the middle of a housing crisis: I have *no* direct neighbors because companies bought those houses, and they've been empty ever since. The one across the street has been empty for 7 years. When I was trying to buy a house in 2019/2020 it was a pretty common selling point that I wouldn't have noisy neighbors on the condo floor or down the street, because the units/houses were corporate owned and I'd be *alone* in my neighborhood. It's not a new practice.
Oy, where you live, most states have squatters rights laws. If I can last 7 years, I can have a house lol
Damn bruh how this shit not illegal yet?
This sounds like bullshit. What possible benefit would they get from it?
Pick the locks, change the locks, rent them out as air bnb
Well that’s disgustingly greedy
My biggest financial mistake was being born.
Funny 😂
Bruh😂
Relatable
Literally can't even afford to keep doing this
It’s ok my son. I already had my vasectomy. Never married. Never had children. It was simply too expensive to play this rigged game. I figured it was just “for the best” that my unborn children stay that way.
The fact that corporate entities CAN buy houses is insane. Single family homes are designed for FAMILIES,and giving power to entities to buy them is crazy. This is literally giving profits to companies who can induce demand as much as they want, since it appreciates. You mentioned "only" 13% of sales were to corporations, but that means 1 in 10 are purchased by them. This means in a 20 home neighborhood on market, at lwast 2 are corporate owned, which is INSANE
Private family ownership is literally the cause of our housing shortage. Ordinary people have most of their wealth tied up into their house, and housing shortages cause the price of that home - and thus their personal net worth - to skyrocket. Resolving the housing crisis means that ordinary people will see most of their wealth vanish, as their single biggest investment drops in value. Corporations don't have anywhere near the government power that an army of middle class homeowners possesses.
In addition, once a home becomes part of a portfolio, it's never sold to family agsin.... Ever! So that 13% compounds year over year, pulling more homes PERMANENTLY off the market.
It’s not just corporate buyers. Commodifying essential resources is bad for everyone.
@@Nun195Essential resources have always been commodities. There are records of cost of living complaints in Rome when it was an empire.
They finally managed to turn society into an actual game of monopoly. Well, I feel like this is not the first time, and it won’t be the last. Only thing needed is for the politicians to make the rules such that this madness ends. Someone will get hurt, but now it’s the majority that’s hurting.
It's ironic that the people who need to own their own home the most (families with kids) are the least likely to own it. Things need to change.
Can't do it with capitalism
Yeah, better this than starving to death @
The right to have children isn’t earned, much less by having money. you are a deeply inhuman person
The system is rotten to the core my friend. The fun thing is, it's starting to resemble more what ultimately lead to the french revolution. I believe the system will remain rotten until there is a breaking point, leading to heads rolling down.
Skill issue, Samuel.
My biggest mistake was getting myself born too late. As a go getting egg cell, I should have pulled myself up by the bootstraps and directly negotiated with my father the rights to my remaining 23 chromosomes. I then could have self fertilized myself and climbed out of my mom’s birth canal 10 years sooner, enabling me to immediately start my PhD at Stanford.
Your PhD would have taken most the earnings you would have used for an investment into housing.
Stop blaming yourself and start blaming your parents
If you weren't born rich, just give up and accept that you'll probably be on welfare and/or homeless for the rest of your life.
Pretty sure they don't make shoes in sizes for zygotes.
@timothy8428
Maybe not but according to all the boomers I’ve talked to, not having shoes is a whiny millennial problem. Back in their day, they had to walk up hill both ways and reproduce by parthenogenesis.
If anything, it's likely to get worse. Affordable housing will soon become unaffordable. Therefore, I advise taking action now because today's prices will seem like bargains tomorrow. Until the Fed takes more decisive action, I expect we will see hysteria due to rampant inflation. You can't just halfway rip the band-aid off.
In the early 1990s, when I bought my first home in Miami, it was common for first mortgages to have rates between 8% and 10%. It's important to recognize that we may never see 3% rates again. If sellers are forced to sell, home prices might need to drop, resulting in lower valuations. I believe many people share this perspective.
Home prices will come down eventually, but for now; get your money (as much as you can) out of the housing market and get into the financial markets or gold. The new mortgage rates are crazy, add to that the recession and the fact that mortgage guidelines are getting more difficult. Home prices will need to fall by a minimum of 40% (more like 50%) before the market normalizes. If you are in cross roads or need sincere advise on the best moves to take now its best you seek an independent advisor who knows about the financial markets.
How can one find a verifiable financial planner? I would not mind looking up the professional that helped you. I will be retiring in two years and I might need some management on my much larger portfolio. Don't want to take any chances.
Her name is 'Rachel Sarah Parrish’. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
She appears to be well-educated and well-read. I ran an online search on her name and came across her website; thank you for sharing.
As someone who has worked in the retirement housing community I find it hilarious to hear my fellow millennials talk about how they will have to wait to retire or get a house when their parents finally die. I cannot count the number of times I have watched boomers drain their savings to live 5 years long all the while leaving their kids nothing. I would bet most, if not all, of the boomer's wealth in any form is going to medical expenses, care and retirement housing. Boomers inherited the greatest wealth a generation has ever built and given that they are some of the most shellfish and spoiled people in our history, they would rather bury themselves in gold than give it to their kids.
Yeah... I find it strange that they want "independence" from their kids and would rather stay in a nursing home
Yeah, people underestimate the cost of someone's final years. Between finally being able to spend their cash on luxiries, no longer having an income, potentially paying for extremely high living costs (if it's assisted living), and then the final medical bill prior to death? You'd better hope mom and dad were sitting on a couple mil if you're hoping to get anything worth writing home about.
It's their money though if someone wants to spend that money on their own health and wellbeing then they should. People should not expect their parents to bail them out all the time especially financially.
My family's poor so I never expected any inheritance so I worked my ass off and saved and bought a cheap house in a rough area, after 5 years I'd made the house look more modern and made a bit of money on it and now I'm in a slightly better house in a slightly better area. I think everyone these days wants their dream house straight away and expects everything. Much like climbing the corporate ladder I climbed the housing ladder. The alternative was going out every weekend spending money, and renting in a nice area. So it's up to you what you are willing to sacrifice to get there
@@thenoodlebuddy Great job putting the blame of a systemic problem on individuals and using your luck-based personal experience as a way to feel morally superior to others (it's luck-based because a market crash would've put you in the hole and you have zero control over that). You sound like one of those boomers that say millennials need to stop buying avocado toast to be able to keep up with housing prices that doubled (!!!) in just a few fucking years. You benefited from a broken system, congratulations. The system is still broken, and you thinking that your benefiting from it means the system is working fine, is yet another example of how brainwashed people in this country are.
@@thepracticalblade9013 normally a functioning healthcare insurance system where everyone paid into before they got old would catch that burden. At least in my country that issue doesn't exist
This could be easily fixed if there was a law that allows corporate entities to only build new homes, but not buy existing ones. That way if companies want to own homes for speculation or rent then they have to go and build new ones, which not only directs investments to be used to expand the housing market rather than eating it up, but also protects families so they would not have to compete with companies to buy existing homes which should in time normalize prices. Also, in order to prevent companies from using a loophole where they buy housing in their personal name or through relatives, it would be a good idea to limit private individuals to owning a maximum of two or three homes too. If a critical ressource is limited, then laws must reflect that.
yes this is exactly what I have been saying, all these people saying we should ban investments firms and such from buying single family property of any type, just like the logging industry, if your gonna cut a tree down you gotta replace it, though this would be in reverse, if you wanna sell a home you gotta build it
Too bad the politicians all have a large working stake in real estate for this exact reason.......
The issue there is that we would have no trees anymore. They would build even where they shouldn’t, and would likely continue to build massive cookie cutter developments dozens of miles out from any commercial zones.
@ST-zm3lm if they can't sell it, why would they do that, also that's not how lumber industry works, they by law have to plant more or an equal amount to what they harvest
@@loosemoose5217 I’m more so referring to all of the woodlands they clear out. Much like the ones they decimated in my hometown when they built several square miles of cookie cutter houses
The nursing home issue is even a bigger issue for the economy. But everyone seems to think that they won't need it, or be affected by it... That is the really scary part... You can't take care of your parents while working... I know a young lady who sold her house to take care of her mother until care assistance became available...
Glad where i live the government pays you to take care of your parents. So i will take care of my mother because my sister is making bank as a lawyer right now. That will save our inheritance as i don't want my mother to spend her millions on nursing homes that money should go to us the kids which is money that will be needed as everything is so expensive.
Nursing homes are predators.
@@bobby5678-ck2tc My dad left his mother in a nursing home. Moved her to another nursing home after she was treated poorly. I don't know what happened later, but that probably ate up a lot of family resources... The hospital probably hastened my mother's problem due to lack of exercise... But I just had a lower end job... And they didn't keep track of her care eligibility...
The concept of mini-retirement changed my life. I'm no longer waiting for some retirement paradise when I'm 65. It helps to know how to fund the lifestyle. You know, making money while you sip that piña colada by the beach does help. I wouldn't have been able to do it otherwise.
Yeah, people miss that part. You don't jet out to Puerto Rico with your life savings. Proper investing and a good business acumen are big pluses. Invest in the stock market, real estate, build businesses. That's just it.
Safe to say not everybody has the skill to pursue investing. But it's always easy to follow the advice of someone who knows how to i.e a financial advisor. You could anywhere between 10--40k with the right ones. Online businesses are a good bet too if you are savvy.
Your advisor must be really good. How I can get in touch? My retirement portfolio's decline is a concern, and I could use some guidance.
Carol Vivian Constable is the licensed advisor I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
I just googled her and I'm really impressed with her credentials; I reached out to her since l need all the assistance l can get. I just scheduled a caII.
I remember learning in a class on Chinese history, that over time they would have a problematic economic cycle. Some farmers would get just wealthy enough to buy a neighbor's land, and hire poor farmers to work it. And they would begin accumulating wealth, and continue gathering assets. Until eventually a few wealthy families owned everything and they made life difficult enough for the poor, that the poor rose up and rebelled, and killed and scattered the wealthy families, and redistributed the wealth. It required intense inequality and great suffering before people were willing to do this. Much worse than we are experiencing now. Anyway, that new situation with many self-sufficient farmers would go along until some of them started buying up their neighbors' land ...
I keep thinking back on that. I think oligarchs worldwide and definitely in America have been in a position to control things and grow richer for a long time. And part of absorbing wealth is extracting it from the poor and middle class. But because there's no grand conspiracy that could maintain the status quo, they can't coordinate. So they take too much, grow too rich. Which is a bad administration policy, because it creates instability over time, as I described with the Chinese history example.
Exactly. Revolution is what happens when people are pushed too far. It's not some great glorious moment of liberation, it's the endgame of a long nightmare.
What I see from a big picture is as America and the FED prints more and more funny money, what happens is core inflation doesn't rise that much because of the Eurodollar system and the USD's reserve currency status. BUT as more dollars are created, those dollars have to go somewhere, because if they entered circulation general consumer price inflation would be insane. And investment assets are the ones that are soaking up the excess money influx. And housing has become an investment asset.
So basically the FED prints money and dumps it into the economy, and the investment firms have devised all sorts of methods to siphon off all that excess dumped money out of the economy for themselves. This makes the slice of the pie that is part of the circulation of the economy stay pretty much the same in absolute value, but the entire pie around it is growing at an exponential rate. Money is funneled from the government, through the middle/working class into the private equity firms.
@tripplefives1402 It's not human destiny to end up divided between rich and poor. It is the destiny of the any capitalist system, it is intentional and by design. The reason those cycles continued is because capitalism was allowed to continue, not "because humans".
@tripplefives1402maybe if instead of the state having it... We let the people who work on it control it themselves? And allow the government to break up monopolies when they do form?
@@bretthake7713and yet, it is the only system of government that has successfully endured the test of time. Sure, communism, socialism and even dictatorship still exist in some parts but they are few and in between. Most importantly, their citizens at large do not enjoy the same quality of life as Americans or other 1st world denizens. Capitalism isn’t going anywhere and there really isn’t a better system unless we contemplate taking freedoms away from those whose only crime was making better decisions and enjoying better luck than the rest.
You know what's absolutely disgusting about it? That it's regarding the housing - the basic necessity for everyone. You can get by without owning a car, without going on holidays, without owning some items etc, but everyone needs to have a place to live somewhere. A while ago there was a small documentary on YT about housing situation - or rather a crisis - in Hong Kong; people there lived in such small space it was appalling. And someone may say, well it's just one city that is expensive. Well, no, that's just the beginning of how high density places will look like if the population won't stop rising, there won't be decentralization of population and the housing pricing will not stop.
There is too many people
@@cyndlehick9777There are more houses than people in the united states lol
@@cyndlehick9777 Now you know what the vaccines were really for.
Sleeping in your car has become a nice alternative
I was talking to a boomer who owns a half a million dollar house telling them I couldn't afford a house and their response? Money isn't everything... it was then I realised they don't care about you, they don't care about anyone but themselves, and they wouldn't care if you were homeless either, they'd probably respond with you reap what you sow, they may still love you but they just don't care.
That is such a boomer response!
One boomer parent response was "live within your means and file for bankcruptcy." Because having no credit for 7 years is how you prosper. One actually helped me when I had emergencies and paid for my health insurance until I turned 26.
"Money isnt everything"
No,when you have enough it isnt , but when you have barely any it is.
What did you expect as a grown mature adult? He is retired and won the prize, it’s your turn now.
@@bulbigood6558 You just don't get it, the same house bought in the 80's for $100k is now worth millions, omg see everyone this is proof you can't argue with a boomer lol
"Permanently exiting above-ground real-estate market" is the coldest and most polite phrase I have heard this week.
Also accurate, because funerals and burials are another scummy business
When the market crashed in 2008 my parents had enough money saved up to give me the down payment on a house. I had just graduated college and was homeless, crashing on various friends' couches and in my car, because I didn't have enough money to do the first month/last month/security deposit on an apartment. They always said they would give their kids a monetary gift for either a wedding or house and since I don't care about fancy weddings I took the house. It's wild to go from homeless to home owner at only 23. But I got incredibly lucky because there's no way I would have been able to buy a house if it wasn't for the perfect timing of super low prices and interest rates, my parents already having the money saved, and me not being locked into an apartment lease.
"The american dream"
Its a blessing for sure
I was an early age home owner as well (20). It wasn’t my parents, but my grandma did the same thing with me (wedding or down payment). I didn’t want a crazy wedding, so opted for down payment.
That decision was the single most impactful one I have ever made. I ended up selling that house back in 2020 and was able to pay cash for the home that my husband I now live in with our dogs and daughter. We’re 32, live in a decent home (4 beds/2 baths) with a backyard for dogs and garden. If I had NOT done the down payment option, and instead chose wedding…my life would be totally different. I’d probably be renting with no kids and no dogs. Definitely wouldn’t have the security we are lucky enough to have now.
The next crash will take that home from you. It all depends on what the REAL OWNERS, the corporations, in the USA decide YOUR FATE WITH!
This shit is wild. A lot of privilege here. I am 31 and bought my first house (a fixer upper) while in college when I was 23 and GF was 21. Took every penny and we ate frozen meals for a long while on makeshift furniture because we couldn't afford it. Absolutely no help from either of our single parents. In a lot of cases we helped them. Drove a beater 1991 chevy truck (crazy liability) to college and worked as an intern and GF worked as a waiter (also went to school). Really crazy and great years.
It is a completely foreign concept to me when I hear peoples' families just giving them things or they receive inheritance. It's really hard to not be frustrated when I hear these stories as well. Like some people being rewarded for simply existing.
A lot of the houses go to reverse mortgage owners. The money they hoped you would inherit goes to the hedge funds that own hospitals and nursing homes.
Yup. I'm seeing a lot of reverse mortgage advertisements in printed newspapers and other old-people media, it is obviously a thriving market.
But the design and wording of the ads also shows how much shame there is around the practice: it's all kept very discrete and low-key.
Just because your (grand)parents still live in their home doesn't mean they still own it. There will be a bad surprise for a whole lot of young people who figured they'd only needed to hang on in the crazy housing-market until grandma kicked the bucket.
Exactly. I see it all the time with elderly people. I'm an insurance adjuster, and when I issue a check for a property claim the mortgage company is also on that check. After a while, you get to notice those "mortgage" companies that aren't major banks or credit unions that you've never heard of are actually just reverse mortgage companies. I got bored and googled them lol
You'll be old yourself if you're relying on inheritance. Most young people need a home NOW so they can raise their own families.
I AM SO LUCKY my grandmother just died on the toilet and didn't get the chance to waste my inheritance on futile medical care. It's a huge problem that inheritances are being squandered to extend lives mere months with expensive medicine.
My friend was recently talking about wanting to buy a house near her job in Seattle. She's an aerospace engineer working for a startup, 26 years old with a $130,000 salary. She was really excited to start looking in the area until she realized that an 800 sq ft home around there would set you back half a million fucking dollars.
Awful area. Tell her to live in a van and get tf outta Seattle as soon as she has enough experience
Half a million? That will get you a shack in Tacoma
That's not bad, you can live comfortably on 30k year, and pay it off in 5 years.
@@IrvineTheHunter "You can live comfortably on 30k a year."
Not in Seattle you can't!
Tell her to come further north to Vancouver a single family home is almost 1.2 million, that’s 900k in American dollars. That should make her feel better
I lucked out. My aunt invested heavily in real estate during the 80s and 90s and owned several homes, she sold most and one of them she left to me after i was asked late past year how the place i was renting is and i told them that the new landlord was doubling the rent so id likely need to move back in with mom again at 30.
I'm immeasurably grateful for this and live is finally improving after 12 years of constant struggling to stay out of poverty, but the fact the real estate market is so fucked that only the ultra wealthy can buy a home is horrific. We need to treat housing as a product again, not an investment.
Youll be flip flopping harder than a politician in a moment because youll be mad when you buy a house and it goesnt go up in value like in ussr and north korea.
I'm Norwegian
You've laid bare the harsh reality of our current housing market quite brutally. It indeed feels like a rigged system where a vast majority are left with limited hope and options. It's truly grim and we certainly need equitable solutions urgently.
It was better a decade ago, but its still very possible to get into a house. New houses built each day, death, divorce, ect. VA/FHA/ Grants all help and lenders are desperate for mortgages.
@@TheeRedBaronthis sounds like bootstraps with extra steps
@@TheeRedBarondid you even watch the video?
The entire system is specifically designed to make the people poor.
Sorry for trying to offer a solution to people who would rather complain than try.
Keys to a successful life...
1) Have 15 years of experience in the field that you just graduated from
2) make sure to put the down payment on your future house by time you're in sixth grade
🤦♂️🤣
or just study something that there’s demand in lol
@@tropinnkaand then find out you weren’t the only one with the same idea and enter an incredibly saturated industry
@@tropinnka Or get some issue requiring any kind of extensive medical service and find out you now have a mountain of medical debt on top of your student loans.
Genghis Khan: "With money, you can buy a little power. But with power, you can have all the money."
Your decadence has caught up with you. How dare you not own your own house in 6th grade. Your laziness is destroying the economy.
I was able to buy a home last year, but it was at the top of our budget (200k) for a tiny 100 year old house with a mold problem and a lot of needed TLC. When I was a kid, I thought my life would be easier if I put in more work than anyone around me. Now I'm just a burnt out 26 year old getting a barely functional house to stay ahead of rising rent. What is the point in trying to achieve anything?
Bro Im about to turn 26 and don't know what I'd do if I didn't live rent free with my grandparents on property they own. Going to go back to school while I still have it so good.
Exactly! That is why I've decided to stop trying so hard.
Do you think 18 year olds back then were buying mansions in Martha’s vineyard? Most people bought shit houses back in the day, in fact a big reason for why housing does cost more is because relatively, housing on average is much better and a lot nicer and a lot bigger.
And what have you done to change your financial situation? Have you networked with successful people or groups? Studied finance to find different ways to save money on taxes or invest properly? Found the niche in your industry to learn and attack to get a step up on others to get some real money?
When people tell you to “work hard” a lot immediately think just grinding out at work, which is false. The real hard shit is doing things you’re uncomfortable with like the above mentioned skills. It’s taking big risks for the huge reward
@@Bbrosvideos I've aggressively pursued new jobs to the point I'm making $30 an hour plus overtime as well as reduced debt to avoid monthly payments as well as basically any fun or frivolous spending. The cost to buy a house isn't proportionate at all to what it once was, and if you think it is I don't really know what to say. I bought a 700 square foot 100 year old house for the price of a 2 bed 2 bath in the same area 5 years ago.
It isn't realistic for the average person to buy a home anymore. I'm more successful than most of my peers and I just barely managed to get a house after years of 60 hour work weeks.
@@alextupa5573 and the homes today are considerably better than they were back in the day. Where this delusional outlook that they were getting 5 star homes for $80k is laughable. The cheap houses back in the day were exactly that, small cheap shit houses.
And it’s unfortunate for those not born with a silver spoon, but it is still manageable to make it big. It just sucks ass to do so.
Also it’s funny you mention a 60 hour work week like it’s this crazy thing like people back in the 60s were working 20 hours a week while making bank. Life was considerably harder back in the day than it is now. Sure it peaked around the late 90s, but that was just a brief thing.
Homes will be affordable again sometime relatively soon because quite frankly they can’t afford not to
4:12 Businesses shouldn't legally be allowed to own residential housing. Period. Simple. Done.
^that & limit each individual to owning at most 3 homes & problem solved entirely 🤙🏻
Should have purchased that house when I was six years old DARN IT!
Right?! If only you worked harder when you were 3 years old! Stop being lazy! /s
I bought a house when I was six...
.
.
.
...playing Monopoly :)
Me too, I passed up a sweet dish of a deal at 14, $150,000 for a home. Foolish me.
"When I was 9 years old I walked to school 20 miles uphill on one foot, my other foot was starting a business" - Stevens He´s Dad
I should have bought one before I was even conceived!
I literally remember being 17 years old in the mid 90s in my old neighborhood... and I looked at at the plots of land, and the $90‚000-$150‚000 houses in the area wishing I could buy one.
I love how we went from growing people told me I could do whatever I wanted if I worked hard enough to being grown working harder than we ever have and still not being able to do the most basic things like owning a home.
You're not working hard enough. You need to be pushing 170 hours a week.
@PaleGhost69 Unfortunately, residents of planet Earth only have 168 hours in a week total, so I am probably screwed.
@@rixaxeno7167 excuses are for the weak. Wake up with the grindset, drink your energy + protein drink, do some much needed meditation, and you'll be able to tap into the time displacement ability every billionaire knows, you weakling.
Think about what events brought you to this point. It didn't happen over the span of a few years. It's been an ongoing, decades long project. It's about to get worse if they are able to implement Project 2025. This is coming from someone who is just exceedingly fortunate to escape the fate they had intended for me, thanks to my Dad being really stubborn.
There are plenty of cheap homes around the country still. Maybe that means changing jobs or starting a side hustle or dealing with little bit less than ideal weather.
I’ve never understood how a home can gain value as it ages when everything else on this planet depreciates, degrades, and becomes obsolete or outdated with time. This is a universal truth. So why does a car lose value but a house gains? You put an end to that bs concept of your used products gaining equity, and you’ve leveled the playing field immensely.
Homes do lose value with age - all else being equal, a new house will cost more than an old house, it's just that the general prices of real estate are going up so much that it overwhelms the price depreciation due to the house getting older.
Land is scarce
supply and demand. If everyone wants something, it becomes valuable.
The land that the house is on is valuable, and gets more valuable as the infrastructure/ community around it gets developed. Thats why
@@synaesthesia888 also the work people put into the homes, the land/property being cared for or neglected for decades is potential value too
This video makes so much sense. I'm a delivery driver and have to deliver to houses that are in isolated woodsy areas. And sometimes the home owners are senior citizens. I didn't understand why this was the case. Now I do
I've already resigned myself to the fact that my Dad has no savings or equity, and my mom only has a house she can't really afford. Basically my life is going to become a living Hell in about 10 years when they can't work for themselves anymore.
I wonder if there's going to be a massive increase in middle-aged people going to prison for the rest of their lives because they murdered their parents due to being incapable of sustaining the financial burden.
Depending on your relationship with them, leaving them to fend for themselves is an option.
It sounds psychopathic, and it is, but if someone’s parents kicked them out and refused to help them financially when they were YA who needed it, they should get that same treatment in old age. Adults take care of themselves, right?
Imagine this, but when you're in your early 20s. And instead of 10 years it's about 3 years.
@@tisvana18issue is some states by law require you to attend and care for elderly parents
@@Sheltur_0311I’m an orphan so it’s almost like I won the lottery free college in Florida so no debt so I’m less screwed. All I had to Sacrifice was ever being loved and a real childhood 😭😭
You had me at “Older generations permanently exiting the above-ground real estate market” 😅
Nothing like some grim humor to brighten the mood. It's the financial version of Bond one liners.
It does touch on another issue.
Graves will be unaffordable for X onward
@@sneezyfido That is deeply unsettling to think about. Imagine a 80 year old in 2103, living in a run-down nursing home cuz they couldn't afford a better nursing home and has no kids cuz they couldn't afford them or focused too much on their career, so no one to visit them. When that person dies, their lifeless body is just dumped because they couldn't afford a grave..........man, thats unsettling as fuck.
@@viskyboi1275 yeaaa, honestly it's depressing imagine that this is the destiny for all Americans, and the government will do jackshit since they can just import cheap labor to keep slaves on the market working to sustain this shit
Boomers can't grok why younger generations despise them. Same reason farmer despise locust swarms.
As uncaring as this sounds it was a relief for me when my parents sat me down a few years ago and told me in no uncertain terms that if they ever became enfebbel and unable to provide for themselves to the point that they would either have to give up living it becomes a financial burden to any of their kids that they wanted to be allowed to pay themselves down on their own terms. We explored a lot of the name of this but it means that neither me nor my family will have to take on the burden of taking care of them in this day and age. I want that for my children too.
My grandparents are giving me their home and while I don't live in it yet I can't help but feel guilty when some of my friends tell me that every single month is a struggle to not be homeless due to the rising cost of everything, especially rent.
I feel the same way. I don't have a house nor is my family giving me one, but my in-laws were nice enough to let us stay at their house and pay cheap rent while we save up for our own place. It's hard hearing about my friends struggling to get by
Don’t feel guilty. Feel proud that your family still has values and cares about future generations. I’d give anything for my boomer parents to care about their grandchildren.
Simple. Don't be friends with peasants. They will just drag you down.
It is what it is; just be grateful for your fortunate situation and make the best of it. Lots of people are completely shit out of luck and that's the world we live in.
@@tabithaalphess2115You guys shouldn't feel guilty since it isn't your fault our society is like this. I'm glad to see some people aren't struggling like us though. Hope things continue to go your way
I'm in the category of being the child supporting my parents. I'm 24, have only had a full time job for 2 years paying 50k a year (before taxes), and I'm the primary income source in my household. My mom is shit at finance and my dad is a deadbeat. It's so frustrating knowing how much better I could be doing if I didn't have to parent my own parents.
And then my dad has the gall to say I should try to buy a house.... Infuriating lmao
Similar but possibly worse boat, 24, had to get a job when the breadwinner died 6 months out of high school. Take care of remaining parent with half that salary (dead end job) and their disability benefits. It's rough.
It's not funny
It's funny seeing so many comments on here from guys making over 100K/year, as though that's normal. Most of us are stuck making 40-60k even in "richer" states. Which is just how it works when you have a stratified society. Everyone isn't going to make the top money, but to them apparently that means only they deserve to live and we're supposed to struggle, even at the median income. It's insane. Add to that the care of aging parents and possibly kids, idk how anyone doesn't implode from the pressure. But, you know, bootstraps, bootstraps!
insist they add you onto the deed if you are paying the mortgage
INSIST
Why are you doing that? They are grown adults making adult decisions to be self-destructive. You as their child won’t convince them the change their money habits. Expect this to continue until they pass.
😔 Ten years ago I tried to buy a townhouse. It was selling undervalued at $90K. The builder wanted to sell more units, by truthfully saying all the units previously made were already sold.
My accountant was a friend of my father, from prep school. He refused to give me the $18K of my own money for the down payment. He claimed that I needed the money in my retirement accounts more than a mortgage.
Those townhouses are now valued at $300K-$400k depending on # of bedrooms and bathrooms.
I still live as a renter.
😔 venting over.
It’s YOUR money. You could have served him with a lawsuit and then moved it to a new account.
That wasn’t your money then
I presume that by "your money", you mean your trust money. If it's really your money, you can do whatever the fork you want to do with it.
He was your accountant not your investment manager no? Is there that distinction in the USA?
its not up to your accountant, its your money, this is either a lie, or you are the most pathetic human on the fact of the earth.
My Grandpaw started working in the 50’s s on a few hundred bucks a month and went on to buy multiple pieces of property, build a house on one, retire by 62 with a pension and have a nest egg that has supported him into his 90’s with no bills. That dream is long since gone. I have to be happy with my job being just enough to pay the bills with a little bit squared away for a rainy day and a 401k that could get wiped out with the next bubble popping. It’s legit terrifying when I realized I make 30 times what he did.
Hate to say it, but a lot of my ability to retire will come from my parents passing. I was born in 1987, graduated college with a marketing and management degree in 2010 (still recovering from the recession) and the best job I was able to find was as a part time teller making $11 an hour. Took me a few years to get situated and I finally did in 2016, then in 2020 here comes COVID and I was let go from my job in July 2020 of 6 years. Since then, I have had 3 jobs and have not made more than $57,000 in a year (before taxes). Thank God I dont have any kids.
You shouldn't accept a single job under 80k my brother, even that is underpaid given your experience.
@@Policyparagontoo bad teachers convinced everyone they had to go to college and it oversaturated the market with degree-holders. Having a degree doesn't drive up your value anymore.
@@Policyparagon Easier said than done
@@Nswix What a stupid take. If you think it was TEACHERS that decided to push college degrees at a time when manufacturing centers were being decimated all over the country and Reaganomics was being pushed as the new way forward (aka turn everything in the country into a ponzi scheme to funnel wealth to the elites), then clearly you need to go back to school.
@@Nswix I am convinced industry had a hand in boosting the attraction of going into the fields too. Getting a saturation of graduated engineers, accountants, you name it, etc. means wages could be kept in line. Just my opinion. Meanwhile, when I graduated high school, anyone who had gone into a trade was considered a loser, deemed too dumb or whatever to go to college. Those tradesmen, if they hustled, probably could have worked their way up and had more money than the college grads in the long run. I think anyone who went to school in the 80's can reflect upon that. I'd tell a parent nowadays to consider just sending their kids to a junior college and investing the rest of the college money into stocks or real estate, anything but a $150,000 university bill.
Free market translation: "Eventually everything will be sucked up by huge black hole corporations. Amazon will happily assist you by renting you a 10x10 room for half your salary of your 12/7 job".
Then that's not a free market, is it?
@@LG-pt5kt A truly free market will inevitably be dominated by monopolies, because they have the resources to crush competitors. These lessons were learned in blood, but every new generation drinks the rich's trickle-down kool-aid.
@@LG-pt5kt Oh, but it is.
@@LG-pt5kt Yes it is rofl, what else would it be.
Capitalism is not market anarchism. We've never actually lived under a free market. Property owners have always been able to embezzle money from the state through "public services" that they predominantly benefit from(most notably, police, who protect their property but do nothing for the average person).
I’m working really hard to eventually have something to pass on to my kids. Everyone pretending that it isn’t getting so much harder to even START is lying to themselves. I know I won’t get a thing from my parents who bought a huge home on a golf course when they retired. I live much more simply because I want to help my kids as much as I can when they need to start building their lives. It used to be a thing most people aspired to. I don’t know why it became “I got mine so eff you” even to your own family but it’s why so many people are struggling.
God bless you
the family unit and your local community has become much less important for many people. when that happens it's way easier to just focus on your own success. it also just became harder to get yours for a lot of people. kind of hard to view wanting a family as a responsible goal when you are isolated, struggling to take care of yourself, don't have a clear path towards financial and career progression, and are in a social media echo chamber of other struggling 20-30 somethings.
@@justinh2701 lmao yea it's the $11.99 a month Netflix subscription that's the problem. Gtfo
@@justinh2701 It's unrealistic goals to want what the previous generations got for much less work?
@@Lee-fw5bd people want to live in a car with a pet and call it a day
I think it's time to make it more appealing for potential buyers. Real estate can be quite the rollercoaster! the stress and uncertainty are getting to me. I think I'll cut rents to attract potential buyers and exit the market, but i'm at crossroads if to allocate the entire $680k liquidity value to my stock portfolio?
"Overall, buyers hold a lot of the cards right now, and sellers are having to give out more concessions to close a deal." All the best, buying on sale is actually one of the best ways to invest in stocks, and advisors are ideally suited for such task
Until the Fed clamps down even further I think we're going to see hysteria due to rampant inflation. If you are in cross roads or need sincere advise on the best moves to take now with financial markets will be best you seek a fin-professional with fiduciary responsibilities who knows about mortgage-backed securities for proper guidance.
this sounds considerable! think you know any advisors i can get on the phone with? i'm in dire need of proper portfolio allocation
There are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’ Melissa Terri Swayne” for about five years now, and her performance has been consistently impressive. She’s quite known in her field, look-her up.
She appears to be well-educated and well-read. I ran a Google search on her name and came across her website; thank you for sharing.
Our greatest mistake was not buying homes when we were in elementary school. Our 2nd biggest mistake is that we aren't on the streets protesting these practices
I passed up buying a home for $150,000 when I was 14. Clearly I'm financially illiterate.
That the real quick
@@LonovavirWhat's your excuse? You didn't have money? Why? Should've been on the grind since day 1!!! Imagine living 14 years and have nothing.....
You should do like a horse and as soon as you hit the ground you start running!!! Or the hyenas and predators in the wild will catch you.
Instead of learning my abc I should’ve been learning the market
@@louistech112this is literally the stuff capitalists used to say in debates (on UA-cam) a few years ago
Hmm, it’s almost like the state should regulate home purchases by non-individuals
I'm as free market libertarian as they come, and even I agree that having a handful of companies owning a sizable percentage of the country's housing is crazy.
Too bad your rent is paying for the lobbyists that will keep it legal though.
Why? Why in god’s name are you a free market libertarian? You see the unbelievable unfairness and suffering caused by your ideology and you don’t introspect at all? You just stick to it?
@@thegenericguy8309 That's justice, I guess.
@@thegenericguy8309 Because things were even worse without a free market.
@@Nswix LOL, free market libertarian "thinking" is why 3 people own more wealth than 50% of the country now.
I love how real all of this is an the fact it demonstrates the main problem with housing, the profit incentive.
Everything is predicated on the newer generations coffing up more money for a home than the prior generation did and more houses so they can make money, leading to the current cost problem. Given this, we begin seeing the housing either bought out by large companies or kept by people to rent so they can make money, decreasing supply and further increasing prices.
Every decision was made because someone wanted money and not because people need houses, leaving use in our current state.
That any all other aspects of wage theft from coprations which are caused, again, by the proffit incentive.
sounds like a pyramid scheme
Progressive Vacancy Tax.
I think that the biggest illusion that people have is that social security can solve all their problems in old age. Perhaps in the next few years, the pension system will be abolished and people will be left fending for themselves in their old age.
Which they voted for
I went the other route in 2022 Bought an acre and a half. Put a new manufactured home on the property. Now we pay 2100 a month for mortgage, property tax and insurance. The 300k we have invested here would have bought us much more 5 years ago. I was regretting buying in 2021 but it was pay 2100 for a 2000sq foot home or 2100 for a two bedroom apartment. I picked the lease of two evils and I’m glad I did. We are blessed and extremely lucky. My advice to any one in their late 20s or early 30s is to buy a camper. Live in it until you have saved enough money. By then interest rates should come back down. Then buy the home you want. I didn’t buy my first home until I was 32.
I was 43.
Best advice ever live in survival mode for 10 years, at this point it's better to invest into cartels
I got my small house built in 2014, I was the first in my area after the last housing crisis, so I got lucky that my grandfather invested in cheap land gave it to his sons and asked for a small amount for myself. Every one else I know since then have been struggling way to much for so little.
I remember when I was a kid in the 90s my parents were renting this apartment and land lord offered to sell them it at 30k. My parents didn't want to live there long term, so they declined. That same apartment would be valued at about 200k to 250k present day.
If I had a land lord of mine come along and offer me the property for 30k I would say yes in a heart beat.
My grandparents offered my dad a house with lots of acerage with the stipulation that he helps out on the farm.
Pops turned that down in the early 80s. He would be a literal millionaire today if he took that offer.
Grandparents sold the farm in the late 80s for a fraction of what it would be worth today.
My boomer parents turned down a 3bd/2ba house on 5 acres for $5000 in the early 90s when I was a toddler and my mother still kicks herself for not buying it because then I wouldn't have had to buy a house. But oh well. Live and learn. I know however that I will not be selling my house as we originally planned and I'll put a home on our other property and give this house to my kids to avoid them having to pay exorbitant rent prices in the future.
Hind sight is 20-20.
that's less then 5 percent annual return, including inflation,. so Investing in that apartment was a bad deal
@@matthewhungerford1861 somewhat true. The parents could have leased it out when they were not living in it and have been pulling in money on a monthly basis for the past 30 years.
We need to actually ban private equity from purchasing multiple homes and renting them out.
lmfao, you literally cant. dont speak on things you dont understand, it makes you look really dumb
It's almost like the system is against us or something 💀💀💀
Ban real estate investors all together. No reason why investors need to own 20+ homes.
@@NotSure416 maybe there is no need to ban anything, but just tax the s**t out of any property beyond the 3rd (proceeding incrementally) to make it a far less appealing investment.
@@ROMANTIKILLER2 Maybe, but the risk is that investors will just pass the costs onto the tenants.
As a realtor, I would rank the inability to climb stairs over nursing home costs for the average age of sellers being 60. Most 60 year olds don’t need to head straight to a nursing home. I re-home lots of seniors to condos and ranch houses
This just really make me realize how lucky I was to buy a house in 2016. So many friends said to just wait until the market crashes, and that houses were too expensive, but I just thought that I didn't want to keep sinking money into renting. It was very hard to afford it at the time, but all my finances just improved ever since. I wish we weren't forced into these impossible situations just to afford a home.
Yeah i got a house in 2019 right before prices seemingly doubled. People who think houses will go down need to consider the price of rent and how it pressures people into buying for stability
I'm in a similar boat. Was encouraged by a friend to try to buy rather than rent in 2018. Was surprised I qualified w only 3% down payment
Now I'm glad to own a home but need to move for my kids school but can't afford to lose this rate (that I am already struggling to maintain payments on)
@@sp123 I think I heard someone discuss that there is going to be a cultural divide between those who bought a home before 2020 and those who can't anymore. It just sounds scary. It would be way less terrifying if houses weren't also hoarded by investors who are just going for profits.
Yeah, I feel very fortunate that I was able to squeak into home ownership back in 2017. During the pandemic, I wasn't working, but my house was making plenty of money on my behalf. While I'm far from wealthy, I am keenly aware I do have a financial leg up on most and really feel for those who are on the "have not" side of this divide.
Yeah, I'm in the same boat. Bought a starter home in 2016 and "upgraded" to a bigger family home in 2019 using the equity from the starter home; even paid a little extra to refinance and lock in the lower rates the day before the lockdown started in 2020 - but definitely worth it!
Private equity companies should NOT be allowed to permanently own single family homes, limit them to 5 years maximum before they have to sell.
tehy just gona make new company and sel it to that new company
They barely own any to begin with bro. They own less than 1%
Thats 5 years too long. Corporations shouldn't be able to own period
@@jer1776 I'm going to let you think about that one before pointing out how stupid that is
Problem: low housing supply, high prices
Solution: don't let PEs own homes
But!
Cause: Zoning policy limits new supply
New solution: don't let PE buy properties, ease NIMBY zoning restrictions
Great, but!
Cause: 30 year low interest mortgage disincentivizes selling.
Cause: Residential properties treated as investment vehicles due to above factors, big loans with low interest rates as hedge against inflation
New solution: don't let PE buy properties, ease NIMBY zoning restrictions, abolish FDR-era institutions that insures creditors that issue low-interest long-term loans that would otherwise be a poor investment for them
I may be missing numerous causal factors, but I think I've demonstrated that your peabrain solution ain't gonna fix shit
As a real esate agent specializing in seniors, this video hits a LOT of points accurately. One of the primary drivers for elderly to sell is to pay for assisted living. In my area, top-end memory care communites can cost up to $25K/mo!
So how much does selling a house buy them? One year? Three? Puzzling to me. 🤔
At that point, what's the tradeoff between just paying a full time live in assisted living aide?
It sounds to me like Assistant living homes = draining those seniors for every penny they have. Or i bet real estate agents/ brokers have their hands in both pots to try and maximize profits off one individual.
@@Itsyourboyben1 ... as an agent, I can tell you few of us work for assisted care communities. We do help seniors sell their homes for whatever reason. I didn't create the need to sell, I just facilitate the transaction to net the client the best outcome. Yes, we make a profit ... isn't that what capitalism is about? I'm not looking to take advantage of anyone. Heck, I have elderly parents that get scam calls CONSTANTLY!
End-of-life expenses basically puts folks into 3 categories - [1] folks that have enough assets so that the regular unearned income on that alone pays for care (pensions would be this sort of asset), [2] folks that are poor and just have Medicaid pay for care, and [3] folks that don't have enough to be category [1], and who gradually whittle away their assets until they drop down to category [2]. This creates a big incentive for wives or children to do home-care as much as possible so to as to minimize the time in category [2].
Honestly, with $341k saved up for an emergency fund, I feel like I’m just sitting on a mountain of cash that’s itching to work for me. So what’s the game plan for when all the Boomers... you know... kick the bucket? 😅 Is it finally time to scoop up some real estate deals or am I just funding someone else’s retirement dream?
LOL, love the sarcasm! But for real, it’s tempting to dive in. Real estate could be a goldmine if you play your cards right. That said, ever thought of sitting down with an investment advisor? They might just save you from throwing that cash into a money pit
Yup, I’m right there with you guys, but I’m kind of lost on where to start. $221k feels like a solid safety net, but I’m not trying to mess this up. Should I look for an advisor too? Honestly, no clue where to even begin
There are a handful of CFAs. I've experimented with a few over the past years, but I've stuck with ‘' Linda Aretha Reeves” for some years now, and her performance has been consistently impressive. She’s known in her field, look her up.
Funny you mention her! Just looked up Linda Aretha Reeves, and she seems like exactly what I’ve been needing to get my investments on the right track. Thanks for the rec!
Watched Linda Aretha on Bloomberg finance summit 4 years ago and her presentation was terrific!
The note about assisted living quality dropping caught my attention. With the number of old people who vote rigorously, you'd think they'd recognize it's in their interests to regulate the industry to ensure decent quality and non-exploitative prices... but that doesn't seem to be the direction things are going.
When my mom was in one of these facilities a decade ago, we couldn't believe how gross and underfunded-looking it was. If you're telling me quality has gone down since, that's really troubling.
Too many of them have bought into the individualist mentality. They think that success and failure is completely due to personal responsibility and so most interventions that would improve living conditions across the board are turned down because they don't see a systemic solution can fix personal moral failings. The group would rather eat itself first. "Why should X get a house when I had to struggle for mine?" "It sucks that young families cant afford a place to live but its not fair that the people who did well for themselves have to be punished for that!" Etc.
@@PrettyGuardianI'm thinking more about entirely self-interested voting. A large number of old people generally end up needing assisted living or wanting to live in a retirement facility, etc. Those facilities are getting much crappier, because they're being bought up by large holding companies that want to squeeze every dollar out of them. You'd think we'd see this cohort voting to improve the places where they're living or going to end up, by regulating away the worst tactics being used to maximize profits at the residents' expense.
But maybe these large companies know just how far they can drop quality without generating a coordinated response. Or people don't care quite as much as I feel like I would, in their position. *shrug*
@@danielhale1The biggest consolation I can tell myself is that once enough chickens vote for Col Sanders, we won't have to worry about chickens ruining things for the rest of us anymore.
Mom is in California and she and I used to volunteer in these convalescent homes . We have private medical insurance and even then, the cost is draining our family accounts. Where I am in Canada SAFETY is now an issue. In a GOOD govt. facility a senior in care with dementia murdered my neighbours grandfather.
@@HeronPoint2021Yikes! I'm so sorry to hear that!
Not gonna lie - as someone on the architecture path who has only been in the workforce for a year, this makes me want to learn carpentry so I can not only design but also build my house one day. Nobody takes the time anymore to build something that will last and if I can build a house that holds up when my kids and grandkids are around then all the time and energy will pay off doubly than the shoddy construction of the few “affordable” houses that exist today
Takes more than a good carpenter to make a well-built house
if you want a home that lasts, you'd build with masonry like europeans do, not stick built POS's like we do here.
I have an Aunt and Uncle that did this. My Uncle didn't even do much with his hands when he was younger (he worked with electronics in the Air Force), but they bought a 20' x 40' shed and built an apartment in the back of it to live in and over about 2 years they made the drawings and built their own house. They did most of their own work and hired subcontractors here and there to do some of the more specialized work and things like pouring the slab. My Aunt is particular so they spent a pretty penny on it, but it was cheaper than buying and they made exactly what they wanted.
Learn masonry too
Sadly unless you live in the middle of nowhere carpentry is going to be the least of your worries. Permits, electrical, plumbing, and having everything checked to make sure it up to regulations will drown you
The housing situation in Canada has become a straight up farce. Some of my friends and I are extremely lucky in that work from home means we can emigrate back to our old countries where we can actually afford to live on our salaries... absolute madness.
true
what do you do for work? I would like to get into a work from home job and I have no idea how to get started
That sounds straight up illegal
@@stickmanbrainsit’s simply globalization
And they are also cutting down these corners, because it becomes really difficult to find remote work in other countries where you don't live 💀
The money goes to the care home industry, banks buy all the houses, and young people stay poor.
Exactly, we won't see a dime
My parents and grandparents are poor af and won’t give me anything when they croak. I’ll have to pay funeral expenses and healthcare expenses.
Yes you can. Have a decent credit rating? Talk to a realtor
@@emilyfeagin2673”Now is a GREAT time to buy a house!” - guy who gets paid if you buy a house
@@emilyfeagin2673 oh, so someone making $40k a year with a decent credit rating can get a $800k home? It's really that easy huh?
"I couldn't give up an opportunity to sh*t on your dreams to get 2024 started".
- How money works
My mortgage is around $3k. The average rent of houses in my neighborhood is $6-8k. How is this fair or reasonable? How can you allow someone to rent a house for twice of what it costs to rent, but the bank doesn't think it can trust these lendees to pay on time?
Find a new city / neighborhood
leave the big city, there's nothing left for anyone there anymore.
I think a huge way to combat this would be to enact laws that limit how many residential homes a person can own (including corporations since they are “people” after all).
Of course passing laws like this would absolutely scare the SHIT out of people who own all these properties in the first place. It would effectively wipe out non-liquid equitable wealth for these 1% people overnight, and they’d be forced to sell at a lower value or risk having their properties seized by the government enforcing said laws.
But it would actually allow for the rest of the working population to actually be able to afford homes. Granted they’d be subjected to the same residential ownership cap as the wealthier folks, but l guarantee you these people would not care and would just be happy to have a home.
It would essentially be a giant redistribution of wealth. If you think this is a law you’d like to push, be prepared for some incredibly cutthroat pushback from the people who own these properties. Companies like Zillow would essentially dissolve. There’d be a TON of propaganda funded by wealthy investors to convince the populace that this would destroy the economy (spoilers: it won’t. It will affect THEIR pockets, but it will absolutely help YOURS).
Wait if corporations, are people, dont they have the right to vote? Good thing you are full of it, and have no clue what you are talking about, or the ramifications of your crazy ideas
@@danielshchyokin3047 “Corporations are people” is the current law of the land after the Citizens United Supreme Court case. That wasn’t the commenters personal opinion
@@danielshchyokin3047 found the landlord)
@@James.Colesanti It doesn't mean they are really people. Corporations can't vote. Or drive a car. Or get pregnant. They aren't people even if the law treats them that way in certain instances. But you knew that. You can admit it. Go ahead, be honest.
@@danielshchyokin3047 Im pasting what James.Colesanti said: “Corporations are people” is the current law of the land after the Citizens United Supreme Court case. That wasn’t the commenters personal opinion
The problem is corporations get too big and they end up being a monopoly making it next to impossible to compete
Yes. This is corporatism. They basically just take turns owning various parts of government and keeping politicians who are friendly to them in place, while the same politicians spout about the evils of rich people and capitalism and run and get re-elected on the empty promise that they will do shit about it. I don't care if you are leaning left or right in the upcoming elections, the hard truth is that it will. Not. Matter.
This is their nest egg being threatened and they will absolutely crush a country and run away after new laws are made to combat the pressures of what they've been protecting for years. Even Nancy Pelosi is planning to retire in Florida because the laws she helped enshrine would affect her own wealth.
But take heart: the worse it gets the stronger the people are who will be born out of the struggle. Lessons will be learned, bad science eventually gets rejected. There WILL be a boom after a hard enough crash and it will benefit people more than hurt them.
HUD gave these corps. 0% money in 2007 onward, making the very problem it's supposed to be helping a lot WORSE
9:16 - The stock video of a "rich guy" standing at the charging station holding the cable as his Tesla charges (for 30-60 minutes) is hilarious imagery to me.
Lol that was hilarious
I’m so glad I bought my home when I did. I was able to do that because I never had kids, got married, took out student loans, or a car loan. I also lived in a warehouse/storage unit for two years to save up, and I went through a non profit that helps first time home owners.
My best advice is to put off having kids as the big corporations are FREAKING OUT over the birth rate decline.
They need to be deprived of new consumers in the system they created.
this is the correct answer.Kudos
They’ll just import more from the third world, make more kids before your over with.
They are importing new customers as we speak 😂
unless you're a woman, in which case you better have that house before you're 35 coz time is running out. I gave up waiting because I wanted a kid so badly and i was running out of time. Home ownership is so close for us, but the market and interests rates are too high so we wouldn't get approved even though we both earn a decent wage. Our renting situation and work situation are the best they've been, that aside, but we've had so much bad luck, I'm constantly worried about a layoff or if my landlady changes her mind or something randomly bad happening to us. But i'm not the only one who did this; I know a gen xer who had her kids before owning a home and they finally managed it at 45 - she is very glad she didn't wait because it would have been too late. If you're a man, you got all the time in the world, if you're a woman and you know you want kids, you just don't have the luxury of time. A house can be bought any time.
They will be deprived of nothing. Pay attention. Estimates as high as 20-30 million illegal aliens in the last 4 years. I've personally seen school buses full of Mexicans from Mexico pull up to gas stations. They get back on the road and head further north, and I'm already up north
America is gone. We stand for nothing but corporations bottom lines now. Dark days ahead
The final battles of the Cold War were economic, not nuclear like everyone expected.
The apocalypse we're living through is much the same. It's not a zombie virus, an alien invasion, or an epic clash between the forces of light and dark.
It's a slow death by economic attrition.
The apocalypse sucks.
Bingo
My biggest mistake was being in preschool instead of buying a home after the bubble popped in 2008.
if you were in preschool in '08 you were never going to be in the situation to buy a house by now
Having bought a house in 2002 which needed some costly repairs in 2007 (which I refinanced my house to get the money for), the 2008 crash was SERIOUSLY stressful. Folks who were in a house and wanted a better one were stuck underwater in their mortgage. Decent houses were left empty for years as banks worked through the legal process of repossessing them - and those houses got run down quite a bit during that time.
Everyone was stressed out from losing their job, potentially losing their job or just being stuck where they were at. Wage increase requests were met with "lucky you have a job!" answers.
Unless you were already money in hand shopping for a new house in 2008 (or were in the midst of building your real estate empire), the 2008 crash likely wouldn't have benefited you much. Maybe if you wanted to buy into the rough side of Philly or Detroit. Oh, and don't forget that the 2008 crash was due to too loose of lending practices, so that home loan you thought you had approved could be denied at the last minute as the screws tightened.
It never popped in some places.
If you didn’t buy from 2010-2019 you missed out!
@@Lee-fw5bd Yep, only way I can even begin to think about buying a home is to pivot into engineering weapons or energy solutions, thats where the BIG money is for engineers, and lord only knows how big house prices will get.
We were finally able to buy a town home at half a million at a lower interest rate but that required us saving for 10 years and both of us working full time with one making 70k a year and another making 110k a year. mortgage is 3k plus hoa, insurance, etc. it's insane.
(edit: its a 2,100 sqft house with three floors in a very desirable area near everything you could want, so yeah it comes with the cost but 7 years ago the price of this house was $250k)
@waffle8364 I'm about to do the same thing.... what interest rate did you get?
Where are you living? 3k a month for mortgage seems like it might be better to just rent!
A townhouse for half a million?! I think I just threw up a little. That's absolutely insane.
Here in western Oregon a "house" that is for the most part a townhouse goes for half a million.
I mean technically the walls are all separate, however there is maybe 5 ft in every direction and the house is barely wider than a 2 or even 1 car garage.
For 650 you can get an alright house. And this is fairly cheap for the West Coast.
If you can work remotely, you can move to somewhere without insane property rates and taxes.
Most boomers are going to sell their homes when they retire, buy something cheaper, and use the difference to help with retirement. So I don't think there will be much of a wealth transfer.
Dont forget the death tax. The bank will take everything. We're just treading water until then pretending like money is real.
Are they buying houses or condos/apartments. If they aren’t buying houses then the houses being sold need young buyers.
Most boomers have already retired by now. If any are still working they’re going strong that’s for sure but idk many boomers even physically capable of still working
The high cost of healthcare will drain their savings and any wealth transfer to their families...
@@Nzzertral I must know a bunch of young Boomers than because every Boomer that I know of is still working and are planning on retiring in 5 years or so.
Home ownership is highly overrated. I own two single family homes (one rental and one primary residence). I pay 10k for property tax for my primary residence and 5k in property tax for my rental. For my primary residence I pay about 3k for repairs, 1k for insurance and probably 2k for maintenance every year. I have similar repair costs and insurance costs for my rental. Luckily, no HOA fees or condo fees. But, these in combination with a mortgage are very expensive. Also, plumbers, electricians and HVAC techs easily charge over $100/hour for repairs; grass cutting companies easily charge $50/cut; and other services like pest control or roofers increase in price every year. Appliances are much more poorly made than 30 years ago and only last about 7 years from my experience. So, you are constantly replacing appliances. Every repair falls on the owner. A roof alone can cost $20k.
I have been told, by a Realtor, that in my subdivision I am the only person that owns a home. The rest are rentals owned by corporations to be rented at ridiculous cost. I purchased 19 years ago and survived the 2008 debacle by putting 20% down and getting a fixed rate mortgage. The only way I could afford to do that was by working 2 full time jobs, for over 15 years.
"It doesn't mean to be working class or middle class anymore, the only thing that matters is if you own a house".. I'm still processing this sentence, so true, such a small sentence and so full of truth and wosdom. I'd love a video braking this down, just so it's clear for me and everyone who watches it. Great video, amazing and important content ❤ xie xie
Nah, he missed the mark. There hasn't been a middle class for decades, and you've never been part of it. When most people can't afford to buy land from the lords, that's feudalism.
Even GenX got caught in this. My house isn't worth what I've paid for it after you add back in the mortgage interest. And I never could have bought a house without a mortgage. Many boomers were able to buy a house without a mortgage, or with a very small partial one, and the values soared for them. They were the last generation to see that kind of advantage.
What boomers bought houses without mortgages? I've never met anyone who rented for 20 years while saving money to buy a home free-and-clear...
Real estate typically increases in value at about 4% per year, depending on the market
@@emilyfeagin2673Not my house. And don't forget we've had at least one housing bubble burst that bankrupted many people. It's not as simple as averages.
@@NswixI knew some personally when I was a kid. Younger friends of my parents who were making more money because of how much more affordable and accessible higher education was to them than to my parents' generation (silent generation). They skipped the 20% mortgage rates by buying cash. It's happening again, because of the boomer wealth they have now, and happening on a larger scale now than when I was a kid.
God Bless Us!
The game was over the moment old people started living 40-55 years longer than they used to.
They’ve become economic vampires sucking the life out of the young
I bought a home in 2010 and all my friends thought I was crazy for taking on such a large responsibility. I did it only because at that time I could basically pay a mortgage equivalent to what I was paying in rent. My logical brain thought that made the most sense to basically pay my money into something vs nothing like rent does.
Same 😂 in 2017, my apartment kicked me out in December, I was like well, I'm done.
Liar
I bought in 2010 too after saving for a year making $60K. And I still had a freakin hard time in 2019 finding an accessible home I could afford as my housing budget did not increase like the rest of the market. 😅
I graduated without debt, was extremely frugal, bought at the right time, had roommates AND I still needed the financial help of my boomer parents to get into a semi-detached home instead of a townhouse condo.
My parents are boomers and had their house paid for by my grandparents in 1986 ($74,000 only).... And then had the gall to tell me how it was all them that got to where they are now - I nearly spat out my drink across the table! As an Accountant, I explained to them that forensically, roughly half was them and half was gifted from their parents, and they had to eat humble pie. Since then they have warmed to my Gen X plight of trying to get onto the property ladder, offering to help me with my housing. Half my effort and half my parents help sounds fair, generation to generation, yes?
This works only if your parents are less narcissistic/boomerish than the average ones
That's interesting because you are not the first person I've heard this from and it's the same with my parents. They had their first home purchased for them by their parents and had a lot of financial help despite them both having really good jobs in the late 80's and 90's. But they act like I'm just a failure for not being as financially successful as them despite having the same type of job my mom had back in the 90's but being paid almost half of what she made, and having no meaningful help from my parents. And the Boomies still expect help from the government and young people and want it all for free or the lowest possible cost or they will throw a tantrum.
So the answer is to make private equity firms ineligible to own residential housing?
that would help but not stop the shit show. Billionaires would just own tons of homes directly rather than through corporations
@@georgerafa5041why is it an issue now though and wasn't before? We need to go back why can't they invest in other shit not a necessity like shelter?
@@dubstepXpowerbecause it's profitable
@@dubstepXpower The issue now, as with almost all things, is that these things were never sustainable and they didn't give a crap because they were making money. So they kicked the bucked down as long as they could and now it's a shit show because of these practices. Housing, water, food, energy, etc. these are all things we should have but money got in the way and now we are running out of affordable housing, food, energy and literally running out of drinkable water.
wouldn't work, then they'd move into other things, that we use to live. I'm talking utilities, garbage collection, Internet access... and on and on. No, we need to revitalize productive industries like mining, material refining and consumer goods production, that way, ROI will be better in that sector than in housing and these investors will start selling and move into them.
I'm pretty sure half the problem would be solved if government didn't have so many buildings regulations & special interest groups didn't keep suing building developers for random reasons.
In CA, many developers get sued over "environmental protection" reasons. But in several cases, there was no indication that preventing housing stopped the decline of a soecies or habitat (so do, thats understandable, but I'm talking about the ones that don't).
There are folks trying to build new homes, but lawsuits & government regulations drive up the prices or stop the construction.
Mortgage guy here, interesting video but small correction: FHA allows downpayments as low as 3.5%, not 3%, but Conventional loans allow first time homebuyers to put down just 3% as opposed to the usual 5%.
But how much does that .5 really matter when nobody can afford it😂
@@bazzfromthebackground3696 of course, it is not downpayment that is preventing most from buying homes right now. I will say, with Debt-to-income ratio allowances around 50% (and that’s off gross income, not net), qualifying for a home is easier than most think (though I do see plenty of poor credit). However, the ability to pay that 2k a month is housing costs on 4k a month gross income is another matter entirely. Unfortunately, it doesn’t look like things will be getting easier for first time homebuyers anytime soon.
The problem with FHA is the MIP never gets dropped off the loan.
@@Dbb27 yes, although since last year, it’s also only .0055% annually of the loan amount, which is 110 a month off a $240,000 loan. Not bad, better than conventional MI. If home prices do indeed continue to rise in most areas of the country, someone who puts down 3.5% could potentially refi in a few short years to conventional when rates are a bit lower and they have 20% equity in the home from amortization and appreciation.
@@internetdude1233 nice it was lowered at least. I understand they have a huge bank of funds now. Refinancing isn’t cheap of course so unless rates drop more it’s not worth it.
What I love about the ecconomy, and indeed the civic system, is that both are centered around crushing the life of the young so that the old may prosper. It would legitimately make for an excellent YA distopian fiction novel if it wasn't for the fact that it has become our reality. I wonder if any savy authors have tried penning a novel that frames blackrock's ceo as a president snow figure only to disappear after showing it to their publisher...
I often think about the nature of inter generational interaction in the west. We have an issue for certain with our wierd 'get a job' mentality.
I've settled on pity. How sad it must be to have been so empty that they denigrate their own children.
So, how long will it take for the Hunger Games to become a thing? The winner gets lifelong PTSD and a free house!!!!!
Ok now I want to write this. Wealth inequality is the cornerstone of modern dystopia but what if it was the only government level conflict? Might get people to pay attention to how scary modern America is.
People keep reading YA dystopian future novels and I'm just like, "You looked around outside lately?"
@@zachweyrauch2988it’s worst in the east. Korea having the lowest birth rate, followed by Japan, China and Taiwan, due to high housing prices and low income. These places values filial piety and family connections the most with their whole culture built on it. It’s about greed and ignorance, not their lifestyle.
It seems unaffordable to not have your parents live with you in old age. If it costs close to $100k a year for a nursing home...
Even paying a nanny $40k would be better.
We sold our LA compound to cash up the funds, and we have private medical insurance. Depending on the parents conditions, (our mom is in better health than any 3 of her sons) you may need various types of car, and more than one person. WITH medical insurance we're now going through almost 100 grand US a year. And that's with no drama.
Not if you need 24/7 care.
I help take care of my grandmother. If she was even slightly less independent, I would be basically unable to work unless I found a job working from home. She's legally blind, lives on social security, and since she can't see, she needs help with preparing food. And compared to some people I know, she requires basically zero care. She doesn't need help with the bathroom (outside asking for her shower chair to be set up for her), she doesn't need to be fed or reminded to take her meds, she's not bedridden.
The nanny isn't going to cost $40K, not in the US. It's going to be more expensive. And a lot of them wouldn't agree to taking care of a senile adult who flings poo at the walls.
@@Ornithopter470 \mom will be 96 in a few weeks and is also legally blind, so we don't move anything in any cupboard. She worked decades ago with difficult seniors and wasn't paid enough. 24 hr. care, even if intermittent (a.m./p.m./occasional and we're going through almost 100 grand cash a year, Min. just went up in Calif. , too. And this is mom with all her mind and no really special needs.
@@irondragonmaiden Three shifts a day, 5 days a week, and then you have to find people to cover the three shifts on Saturday and the three on Sunday.
When a person has to be watched constantly due to risks of falling, or seizures, or wandering off and drinking cleaning soap or something worse, someone else has to do the shopping and then there is transportation to appointments. It can easily end up costing more than facility-based care.
When all the boomers die, equity firms will buy up all these properties, or as many as they can, and rent/lease/airbnb them out to whoever or just let them sit until they fall apart. Just my opinion.
That's exactly what will happen.
Possibly, it will also depend on whether Biden’s new tax proposals go through. He’s wanting to do away with trusts altogether so that would give a high percentage of them to the state via Medicaid to pay for assisted living situations. LLC’s aren’t much of a wall anymore either
That's not an opinion. It's a fact!!
It's how late-stage capitalism rolls. We will all be renters.
@@willieverusethis Nah, the big corporation with millions of houses will be hit with demands from their plumbers, HVAC staff, roofers and other employees: "Sure, we will sign a new employment contract, just double our pay and give everyone a house or watch your rentals fall apart."
I live in rural Georgia (median income 25k) and I saw a double wide on less than an acre sell for 50k a few years ago, 75k around Covid, and 125k before the massive surge in interest rates.
what in the f#ck... that's just greed
They sell for over $200k here in rural east Texas, hours away from the major cities.
I think it is mostly difficult for first time home buyers. Those who already own a home and have equity built up will have an easier time of it. Also people tend to make more money later in life as their career progresses. The other thing making it difficult are investors, where they artificially drive up prices only for the correction to eventually come. There also seems to be a goal of investment companies to make everyone a renter.
Wow great report. I knew the system would 100% fleece the elderly before letting anything be passed down.
That said if you want to inherit something from your folks the tried and true method is to take care of them yourself in their old age via a multigenerational housing plan. Both my father and grandmother showed me how rewarding and kind that setup for dignified end of life support close to family can be.
The problem abt that is that right now, a lot of companies will take up as much of your time as inhumanly possible. My partner has been called in for work nearly every week for the single day she had a hard no on working. She didn't get weekends free either. I have a better job/life situation but I still am flooded with work from 8am to 6pm. The option if you have to take care of your relative is to not have a life of your own after work. I have limited PTO and even if I have to go to the doctor, showing up with a paper that says I've been away for an hour to the doctor means I need to catch up on that hour somehow. For reference, my partner is american and I'm european.
I completely agree with you that multigenerational housing is great, but a lot of people simply do not have time for it and still have some time of their own. We are facing a more systematic issue I think.
I agree that younger folks have difficulty purchasing a house. due to high house prices and stagnant wages. Our son and his girlfriend purchased a house recently. We have been out of the housing market for a zillion years so were surprised at the current cost of housing.
Something I have not seen mentioned is building your own house. My parents were frustrated with housing costs immediately after WWII and that inflation was rising faster then they could save money so in 1953 they built their own house. My wife and I did the same in 1982, we were lucky to find a large property and built our house. At the time interest rates were extremely high. We were betting they would not stay so high and that we would be able to get good prices from subs to do work we could not do ourselves. It could have gone the other way but worked for us. Of course building your own home is not for everyone but I think there are creative solutions to the problem. Ultimately home prices have to track what people can afford to pay so at least indirectly linked to income.
Having worked with private equity shops, you can be certain there is a meta plan in place to syphon boomers money at scale. Ridiculously high assisted living costs is such an amazing idea. You appropriate literally the wealth accumulated over a lifetime in a few years, when people are weakest both physically and mentally. What used to be generational wealth transfer is now going from retail to private equity. What kind of margins do these businesses have? Are there institutions that make you change your will to them before accepting you? I would do that too.
Most American thing ever.
Gross. Just absolutely horrific how capitalism just sucks the life from everyone it can. Fucking vampires
literally re-inventing feudalism at a rapid place, its all by design