I don't mean to dismiss your situation but you are a bit of an outlier.
That said I do think it's a disgrace that you're on full disability and still can't afford your own place, your SS disability payment should cover that and then some
Millennials Buying More Homes Than Any Other Generation
- Thread starter Syriel
- Start date
That said I do think it's a disgrace that you're on full disability and still can't afford your own place, your SS disability payment should cover that and then some
I fully agree. It can't, I'm getting only $1,011 a month on disability, rentals are $1,000+ a month in the Baltimore area, homes are selling for well above $100,000.
I, and most of my friends, have purchased at least one home by our mid-30s. In the vast majority of those cases though, they (and I) received help from parents/grandparents in the form of down payment or similar.
Early millennial here. Bought my first home in 2011 and am on my second home now. Probably gonna stay in this one unless I get a decent pay bump. Wouldn't mind one with a little more square footage
I used to think the housing market was fucked in the UK, turns out its just my area and London. Smh.
90% of baby boomer that gave me advice to make money like they did was "buy land/houses", not surprising if more are doing it. Seeing more buying a house and renting it outright and then continuing to live with parents, or renting any spare rooms and using that to pay it off, most got alot of "help" fom family at the start, least here in Australia
Not in Australia. The only person I know who has bought a house is married and got a huge amount of help from his parents.
My Mortgage ended up being $100 less a month than what I was paying in rent.
18 year olds usually fall into the Gen Z bracket. But yeah it is a fuzzy how Millennials are categorized.
Real estate is expensive in the big urban centers of the US too. If you want to own a house/appartment, that's a bad place to be.
Sounds about right. Bought our house in 2016 (we're both born in mid-late 80's) and since have had 2 other friends buy houses. Have 2 or 3 other sets of friends who are actively looking. Also plan on this being our forever home. It isn't 4 BR but I can't beat the location and we bought it just as the market was really heating up so I don't envision it ever being worth less than what we bought it for. I am very interested to see when this market finally hits a bubble and starts cooling down, comps in my neighborhood are regularly going for $100,000 over what we paid just 2 years ago.
I don't mean to pick on you specifically but there's an enormous logical fallacy here regarding PMI/MIP. PMI/MIP will mean nothing special if you shop in terms of APR. An FHA loan from mid-2016 carried a rate of 3.625%. Add in the 2016 PMI costs (and the monthly cost has dropped by .25% FYI) and you end with an APR of just over 4.25%. That's with putting down 3.5% to maintain maximum flexibility for the emergency repairs and whatnot.
Let's say now that the mindset was no PMI or bust and between mid-2016 and today, you made just enough to hit that 20% marker for no PMI. A 30 year fixed-rate mortgage today carries an APR of 4.47%. Instead of paying the PMI and being in your house for 2 years with money for repairs, etc. you're now paying more for each dollar borrowed than you did. Take a home equity to tap into that 20% you put down? 6.30% at my CU and only up to 90% LTV.
Rates are up from where they were. In the grand scheme of things though, money is still very cheap. Make an informed decision because you're likely not (according to the article now) going to make a bigger purchase in your life.
This is word for word what my wife and I did. Went straight to a four bedroom house across from our elementary and middle schools in the district and we don't plan on leaving. We lost out on multiple houses because our process took so long but we are still happy with it.
My mortgage is about the same as my rent was and I am getting nearly 4x the space, a huge back yard, and extra storage garage and a deck that was the size of my apartment
Mortgage rates are near historical lows. A lot of people are just saddling up with 30 year loans on a 0-20% down payment.
How old are you, and how much were your houses if you don't mind me asking? Did you sell the first one or do you rent it out now?
I'm buying a house right now (and am a millenial, almost 30 years old) and the only thing that sucks right now is that interest rates are skyrocketing. We kind of got fucked on ours. We couldn't get a closing date until recently because it's being built, and the interest rate rose roughy 1% in that timeframe.
But when you add in the costs of maintenance, upkeep, taxes, etc, it's about even, maybe even costlier if you own. Although, with owning, you'll have something you can sell down the road.
OP
OP
Moving away from expensive areas is also mentioned in the article. How folks who rented in SF/NYC are moving to cheaper areas of the US to buy homes for $300k. Those same homes would go for well over a million in SF/NYC.
It's 50% over the median home price nationwide. $300k is a good nationwide marker for "trade-up".
I'm Canada and I'm not surprised, I said the same in another thread, every millennial I know (early 30s) were all condo horny in 08 and by now are moving into houses instead, or the younger ones are getting condos if not houses directly. It's always been a literal obsession for them, with FOMO, fear or being seen as a loser renter, and Bank of Mom helping them with their cash down. They usually know nothing about finances, investments, interest rates, have no asset other than their condo or house, and are very prone to over pay due to the above.
The narrative that millenials are all poor and struggling is bull.
The narrative that millenials are all poor and struggling is bull.
Millennial, just bought my second home for 350. Plan to raise our kids there. And yes, we lived with my in laws for a few years while my wife finished grad school. I'm really glad that phase is over...
This seems rather unimpressive. I imagine most of the older generations have already done their purchasing when they were younger.
I'm going to assume this is a joke post, because it's the weirdest opinion I've seen on Era in a while.
Good to know. I don't have both feet in the household market but I know300k is average price around here.
I'm 32, my first house was $110k for a 1900 sqft two story in a not so great part of town. Bought the second home in 2015 for $280k. 2500 sqft with a giant backyard in a much, much nicer part of town. We sold the first one and made about a 20k profit, which helped with the down payment for this house.
If at any point we can get $300k+ for this house, we're probably gonna sell. I have my eye on a certain floorplan a couple of neighborhoods over that would be perfect since we decided to have another kid.
Sort of. If I remember correctly, Boomers bought theirs when they were around 25.
To piggy back on this a bit more, not all PMI is created equally either. The rules for PMI via an FHA loan are different from that of a traditional loan. We had the money to do 20% down, but opted for 10% w/ PMI so that we could keep that other cash on hand. Our PMI will be gone in 7 years, we still are paying less than our rent and we were able to keep a significant amount of money in our pockets. For us, there was some piece of mind in locking in 3.49 versus saving up to have 30% (20% plus another 10% for cash on hand) to avoid being house poor.
Anecdotally, the Omaha market is a seller's dream. Most places sell within days of putting a sign up. Means the prices have been inflating a lot, but still nothing like SF or NYC.
Here in ATL homes are flying off the market. Houses even way up in the crappy nothern burbs stay on the market for a week max. My sister's place up in Acworth in a cookie cutter boring neighborhood full of old white people who all hate each other took all of 5 days to sell.
This article uses the 1980-2000 definition.
I don't think people realize either that you can shop around for PMI rates. Our credit union was significantly lower than the other places.
And yeah , saving for 20% down was chasing a moving target for us.
I'm not totally surprised. Living in NJ and working in NY it's rough to believe, but looking at the Midwest you can pretty much afford a decent home as long as you can make it out of bed to any full time job.
We had a headquarters location in Ohio in my company until a few weeks ago. Some of the people working there had mortgage payments of like 700$ a month on a full scale home. On a 50-70K salary like a lot of them were making, you can live like a king with housing that cheap.
We had a headquarters location in Ohio in my company until a few weeks ago. Some of the people working there had mortgage payments of like 700$ a month on a full scale home. On a 50-70K salary like a lot of them were making, you can live like a king with housing that cheap.
Millennial (1987). Just bought my first house on Sunday! Skipped the starter home and got a 4 bedroom. After frequently moving between rentals, I hope this is my last move. (2462 sq. ft. + 1600 sq. ft. basement)
It's absolutely depressing spending 1700 a month for a 1 bedroom apartment here in NJ, knowing that if we had enough for a down payment, we could move to Charlotte or Greensboro in NC and get a decent sized house, in a good area with a mortgage around 900-1000 a month.
If I ever had to move to Charlotte (my company has a huge office there and my largest client is there) I'd want to live uptown. That area is absolutely fantastic. But im sure its mad $$$
You have to be somewhere near Middlesex County or north. My mortgage isn't much more than that and i have 2400 sq ft on a modest sized lot just outside Cherry Hill. For the additional 30 minutes or so of driving time, I would absolutely go for more bang for the buck. Hell, even when I lived in Mercer County you could get a decent sized apartment in Hamilton Square for nearly half of what you're paying.
