Read this one between the lines

Lived in our last house for 16 years. Would have lived out my days there, but grandkids. Did not and will not downsize. We want the extra rooms for family and friends.

If millennials want to move every few years, buy land and build…or rent.

They're bitching because they want it cheap cause that's how they think it worked. Houses have pretty much always been expensive and you've always had to work to get the nice things. They want the nice things without the work.

...but, but, but... you could own a home on ONE SALARY back then! Yeah, and no one had the newest cars, the $8 frappalattechinos, or the streaming services, of flat screen TVs, or... When my parents bought their first house, interest rates were fucking 18%!

M

mikeshaw2 said:

They're bitching because they want it cheap cause that's how they think it worked. Houses have pretty much always been expensive and you've always had to work to get the nice things. They want the nice things without the work.

...but, but, but... you could own a home on ONE SALARY back then! Yeah, and no one had the newest cars, the $8 frappalattechinos, or the streaming services, of flat screen TVs, or... When my parents bought their first house, interest rates were fucking 18%!

M

Click to expand...

Nailed it.

mikeshaw2 said:

They're bitching because they want it cheap cause that's how they think it worked. Houses have pretty much always been expensive and you've always had to work to get the nice things. They want the nice things without the work.

...but, but, but... you could own a home on ONE SALARY back then! Yeah, and no one had the newest cars, the $8 frappalattechinos, or the streaming services, of flat screen TVs, or... When my parents bought their first house, interest rates were fucking 18%!

M

Click to expand...

My wife and I spent the first 7 years in a trailer house, when we bought our first "real" house it was half a block from the tracks "mainline".

Now young people want to come out of college, buy a house worth $800k and a BMW. Just like their parents have. They don't understand the concept of having no debt. Debt is the great controller.

AllenOne1 said:

My wife and I spent the first 7 years in a trailer house, when we bought our first "real" house it was half a block from the tracks "mainline".

Now young people want to come out of college, buy a house worth $800k and a BMW. Just like their parents have. They don't understand the concept of having no debt. Debt is the great controller.

Click to expand...

Debt is indentured servitude that one puts themselves in. No one seems to want to recognize this any longer, and it isn't just the young adults. If I buy something one credit I am literally promising a portion of my life (time, which is a function of my labor generated revenue) to paying the debt off. That is willingly giving up one's free-will to another entity for something I want today if I don't have the money. It is a trap, and there are people who understand this all too well that accommodate this and hand out money.

“In a normal market this would be enough to dampen demand for homes and thus quash prices. However, several experts have noted that a widespread property shortage in the US has kept home values artificially high.”

A normal market? We’ve hauled in more than 10 million new immigrants under this administration. Housing starts aren’t anywhere close to keeping up with the influx of people. Leaving finance aside, there is a real housing shortage because the new “people boom” coming across the border. Government money is paying their rent, so the third party payer phenomenon keeps rents higher than market clearing price, which drives up sale prices for residential property.

Scapegoating Baby Boomers is convenient and popular. It misses the proximate cause entirely.

That said, the theme of “just die already, boomer” will continue because it’s an effective control measure.

When we decided to buy our farm I sold off all the vacant land I have accumulated over the previous 25 years. (I had a drill sergeant in boot camp who gave me the best advice I could get....buy land, dont waste your money). So, during all my different duty stations, I bought land, as much as I could. Yes, it meant not driving a new car or motorcycle or having a $5,000 watch. A lot of it from tax sales, I would wait until it was near the time for the owners to loose it and then reach out with an offer and most were quite grateful. It allowed us to buy a farm that would otherwise have been FAR outside our means and no house payment. Be smart with your money and it will be good to you.

As a boomer - I'm happy to be living in a home that's paid off.
I worked long and hard to make those payments all that time.
No leftist piece of shit "forgave" any of my financial commitments in return for a promised vote.
We currently have zero credit cards or car loans.
I finally got out from under the bank's thumb.

While my home has in fact appreciated in value by 400+% - I'm not selling it.
Those millennials that had their student loans forgiven and now want to buy a house can go somewhere else.

Good point. Never have that kinda pressure on people. they “refuse“ to voluntarily do something by maintaining a current lifestyle they have paid for!

Gunfighter14e2 said:

Wall street is wanting boomers to sell at max price as they know they will pay cash for a smaller foot print, which is money they can't play on, or would never be in circulation anyway. But the real reason is the bankers will lock in huge loans to those who may not be a slave now, but will be once they have a brain fart. A few homes mean nothing, but if even 25% of the boomers sell, the bankers can lock in bankable bucks as well as another generation who have to live under their bosses desk just to say, look what I am a slave to. You can massage & hype numbers all you what but unless YOU hold a free title to it, YOU don't fucking own it, and are paying extra for it.

Click to expand...

Even with a clear title.... I'm still "renting" after I have to pay the property tax and insurance for the place.

First problem, it's the daily mail.

Anyway, take a look at what I circled.



It's the Boomers causing it because they won't move out into something smaller.
Supposedly that's what causes the lack of available homes.

WUT?

If a Boomer sells and downsizes, they are still occupying a home. It's just smaller.
So the younger generation thinks they have a right to force older people into smaller homes so they can upgrade.
Fuck that, they can live in the smaller home.




Either way, it still doesn't change the number of available homes.




Has anyone bothered to discuss this with the ginormous corporations that buy up homes for rental properties?

I bet not.

And Blackstone is losing its ass. Ever notice in these articles no one talks about the asset bubble that is still living in commercial and residential real estate? Its like people have convenient amnesia - its always someone else's fault.


NEW YORK, Jan 26 (Reuters) - Blackstone Inc's (BX.N), opens new tab fourth-quarter distributable earnings fell 41% year-on-year as the world's largest manager of alternative assets said on Thursday it cashed out fewer investments across key portfolios.
Blackstone has been dealing with rising redemptions at its flagship real estate income trust (BREIT), prompting the private equity firm to exercise its right to block investor withdrawals at 5% of the quarterly net asset value of the fund.

Read that again - Blackstone is blocking redemptions. This also goes for the AirBNB debacle that is pushing up home valuations artificially and is causing homes to be priced out reach. It all smells like the GFC again. It isn't the boomers, its the speculators, low interest rates and monetary inflation that have encouraged malinvestment. With banks tightening lending its going to catch everyone who isn't locked into a mortgage or is paid off.

I know it's easy to castigate millennials as lazy and entitled but I want to point something out. My modest 3 bedroom 2 bath 1600 square foot home in 2020 was purchased for 185000. I had it reappraised to get the PMI taken off. It's now worth 255000. I've done nothing to the house besides keeping things running. No additions, no swimming pools, nothing. That's a 42% increase in value. I was able to purchase this home making 55k a year. We're seeing a 40-50% increase in the cost of living.

psharon78 said:

I know it's easy to castigate millennials as lazy and entitled but I want to point something out. My modest 3 bedroom 2 bath 1600 square foot home in 2020 was purchased for 185000. I had it reappraised to get the PMI taken off. It's now worth 255000. I've done nothing to the house besides keeping things running. No additions, no swimming pools, nothing. That's a 42% increase in value. I was able to purchase this home making 55k a year. We're seeing a 40-50% increase in the cost of living.

Click to expand...

But you are not pointing anything out the rest of the world isn't living through. The Boomers - those guys lived through the 70's and 80's, so this isn't a new thing ot them. Before them it was the Great Depression. Before then there were also several booms and corresponding depressions in the US. Cycle, supercycle, grand supercycle. Nobody knows what these things mean any longer and as a result dont have an idea of where everything is headed, they just know "today". If there was a study of financial history people could get out of the way because they would see more clearly what has happened and what is coming.

Nothing you are referring to regarding increased costs is new. It happens to us all. But everyone thinks its new for some reason.

The boomers who are lower to middle class are getting squeezed as much as everyone else. They are actually either staying in a job or going back to work. Social Security, the safety net they paid into all their lives, has been proven to be a farce. They will save money where they can, and no one can blame them for it. At least no one who has been in that situation.

@lariat is about right in post 17. Cycles are the nature of economies and social orders. People who’ve seen the cycle a couple times can recognize the patterns. Best to pay some attention to the greybeards.

The wealth pump is running low in fuel. New schemes are invented almost daily to keep the pump moving power and property away from labor to capital.

I’m one of those low class people irritated by the state having first claim on my assets and income.

lariat said:

And Blackstone is losing its ass. Ever notice in these articles no one talks about the asset bubble that is still living in commercial and residential real estate? Its like people have convenient amnesia - its always someone else's fault.

https://www.reuters.com/business/finance/blackstones-earnings-fall-41-assets-sales-slump-2023-01-26/

NEW YORK, Jan 26 (Reuters) - Blackstone Inc's (BX.N), opens new tab fourth-quarter distributable earnings fell 41% year-on-year as the world's largest manager of alternative assets said on Thursday it cashed out fewer investments across key portfolios.
Blackstone has been dealing with rising redemptions at its flagship real estate income trust (BREIT), prompting the private equity firm to exercise its right to block investor withdrawals at 5% of the quarterly net asset value of the fund.

Read that again - Blackstone is blocking redemptions. This also goes for the AirBNB debacle that is pushing up home valuations artificially and is causing homes to be priced out reach. It all smells like the GFC again. It isn't the boomers, its the speculators, low interest rates and monetary inflation that have encouraged malinvestment. With banks tightening lending its going to catch everyone who isn't locked into a mortgage or is paid off.

Click to expand...

Bingo!

lariat said:

And Blackstone is losing its ass. Ever notice in these articles no one talks about the asset bubble that is still living in commercial and residential real estate? Its like people have convenient amnesia - its always someone else's fault.

https://www.reuters.com/business/finance/blackstones-earnings-fall-41-assets-sales-slump-2023-01-26/

NEW YORK, Jan 26 (Reuters) - Blackstone Inc's (BX.N), opens new tab fourth-quarter distributable earnings fell 41% year-on-year as the world's largest manager of alternative assets said on Thursday it cashed out fewer investments across key portfolios.
Blackstone has been dealing with rising redemptions at its flagship real estate income trust (BREIT), prompting the private equity firm to exercise its right to block investor withdrawals at 5% of the quarterly net asset value of the fund.

Read that again - Blackstone is blocking redemptions. This also goes for the AirBNB debacle that is pushing up home valuations artificially and is causing homes to be priced out reach. It all smells like the GFC again. It isn't the boomers, its the speculators, low interest rates and monetary inflation that have encouraged malinvestment. With banks tightening lending its going to catch everyone who isn't locked into a mortgage or is paid off.

Click to expand...

Couldn't have happened to "a nicer group of people"......

"prompting the private equity firm to exercise its right to block investor withdrawals at 5% of the quarterly net asset value of the fund". Sounds like an arbitrary rule that they just invented.

AllenOne1 said:

My wife and I spent the first 7 years in a trailer house, when we bought our first "real" house it was half a block from the tracks "mainline".

Now young people want to come out of college, buy a house worth $800k and a BMW. Just like their parents have. They don't understand the concept of having no debt. Debt is the great controller.

Click to expand...

And this is what they were taught by their parents.

not down sizing until final departure. am an early boomer and a poor with 1100 sg ft. paid for and paid for '05 pilot,no market presence. fixed income that has been fine til recently. insurance up about 50%. we all know what food,ammo,parts,trades costs and gas have done. it is what it is and out of our control. elites and their pol employees have it locked up.

Pretty sure my son is just counting on outlasting me for the house and guns , fairly shortly after my demise some pawn shop will be very happy.

Even if the boomers would sell, the profits they made would likely be eaten up by what it would cost to purchase something else.

On top of that, the grossly inflated price of a new purchase timestamps that sales price with the local tax assessor's office. Basically, if a boomer moves, their property tax is likely to double or triple.

In my area, real property reassessments can only happen once every 5 years. Any increase in value is capped at 15% at that reassessment time. The only time a property can be reassessed between those 5 year windows is when ownership changes. Then there is no cap on how much it can jump. The new assessed value becomes what the property sold for.

@psharon78 and other millennials: saw this video and thought it may be of interest to you. This is not a dig at you, very far from it; I put it here to show that there isn't a generation that isn't currently living through this, and that the problem is real. Hope this video helps. This video is fairly top level but most of his are technical and egg-headed info so most won't watch his stuff, but this one is brief and very easy to digest.

Boomers here will fully understand what he is saying if for no other reason that they have lived through most of this before and have had to course correct from their own decisions. We all live through that.

I merely just want to put things into perspective. The situation that I met the world fresh out of college and starting my career in IT is not the same. The starting salary is still going to be roughly 40k in IT. It's not until after 7+ years did my salary really start to rise.
Groceries for myself and my brother were roughly $200 for the month
Gas was around $1.90-2.10 a gallon
Utility prices haven't really changed
Rent was 40% lower even in 2015.

I'm in a far different economic situation. Not only was I able to buy a fairly nice house even at 1600sq foot for 179, my interest was 3.75%. After my divorce, I bought 60 acres of land. I'm able to deer hunt off the land saving money on groceries. My student loans are nearly paid off now, I sacrificed for the first 4 years out of college to get the majority paid off. Younger millennials and Gen Z will have a far different economic situation than many of us who are better set in a careers, to weather the financial outlook going forward. I don't have the perspective that all of one generation is lazy or entitled. I counsel many younger hard working men and women to try to get them setup for success. Give them some knowledge that I wish I had. I can't fix the entire economic situation, but maybe I can help those around me better weather it.