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That's a blanket statement that holds true sometimes and doesn't hold true others. Its a lot more complex of an equation than that. Sometimes the delta between homeownership and renting is 0 or negative, in which case its better to own. Also in these comparisons people fail to consider that rent will ALWAYS go up, where a mortgage will never go up.
Property taxes and utilities almost always go up, though.
"Innovative home financing" huh? How about teaching younger people to be financially responsible? How about teaching them to prioritize saving for a home by making choices like driving an older used car instead of that shiny new one that comes with the big car payment and the higher insurance costs?
How about teaching them that to lower their ideas about what their first homes should be? Let's face it, you're not supposed to start off with a $300K McMansion when you're 24 or 25 and fresh out of school. Seems to me that most people today have forgotten about the idea of a "starter" home.
How about teaching them to NOT HAVE KIDS if they DON'T OWN A HOME?? Younger people today seem to have no problem popping out the kids one after another but boy oh boy, saving up for that 20% down payment sure is hard. Hint, hint - it's much easier to save the down payment if you don't have to buy diapers and baby clothes.
Cancel the Netflix and the X-box live subscriptions, give up the $200/$300 iPhones, quit buying those $6 lattes a day (might help you lose a few pounds too, btw), sell that Coach or Kors handbag on eBay and buy a replacement at Walmart, and start SAVING to buy a home. In other words, act like a grownup. How's that for innovation??
I said the same thing in another post. And people apparently said so what. They just want to live above their means. This society owes them and must clean their ass afterwards.
If there is little demand for traditional single family homes or large homes, then the market will adjust. Smaller homes will be built. Or, more apartments will be built.
In many cities, rents are going up much faster than home prices. This is another reason young people don't accumulate wealth. They like to live in cool cities and cool neighborhoods. They can't afford a down payment. But many spend quite a bit on rents. That prevents that from savings up for a down payment. Because more people rent instead of own, rents are high.
The housing market has picked up in many places. I'm not sure that millennials are going to be majority renters. I don't think it says much if people aren't buying in their 20s. That's still a young age.
The risk of renting is that you have a live for today type of lifestyle. You may live nicely but in the long run, the wealth disparity will widen. The people who own will one day pay off their mortgage. Then the difference is going to grow even bigger.
You don't need a loan anyway - just rent and invest the difference.
Or you can use the so-called Riba free home ownership plan if owning really matters that much. It's a shame Riba free isn't more common or more available, especially for those who don't want to be in debt.
LOL. Invest the difference? Seriously? So you take the $5 you have after paying all your bills and invest it. Then in 30 years you'll have like $30 profit.
In the real world, a house is your only investment
Treasury announced in 2008 that the intentt was to have homeownership get back to historic 655 level. like other countries like the 30 year fixed arte is by gone especially with little to no down payment.
LOL. Invest the difference? Seriously? So you take the $5 you have after paying all your bills and invest it. Then in 30 years you'll have like $30 profit.
In the real world, a house is your only investment
Sure, let's start giving out innovative products like subprime, reset and short term ARMs to people that can barely afford them because that worked out so well the last time around.
It's not that all of those types of mortgages are bad, it's when several of them are combined into one mortgage that the risk is hard to control or predict.
"innovative home financing" huh? How about teaching younger people to be financially responsible? How about teaching them to prioritize saving for a home by making choices like driving an older used car instead of that shiny new one that comes with the big car payment and the higher insurance costs?
How about teaching them that to lower their ideas about what their first homes should be? Let's face it, you're not supposed to start off with a $300k mcmansion when you're 24 or 25 and fresh out of school. Seems to me that most people today have forgotten about the idea of a "starter" home.
how about teaching them to not have kids if they don't own a home?? Younger people today seem to have no problem popping out the kids one after another but boy oh boy, saving up for that 20% down payment sure is hard. hint, hint - it's much easier to save the down payment if you don't have to buy diapers and baby clothes.
Cancel the netflix and the x-box live subscriptions, give up the $200/$300 iphones, quit buying those $6 lattes a day (might help you lose a few pounds too, btw), sell that coach or kors handbag on ebay and buy a replacement at walmart, and start saving to buy a home. In other words, act like a grownup. How's that for innovation??
“Credit has not been widened or deepened, and there isn’t enough product innovation to offer loans to this generation."
He says the mortgage market needs to be more adaptable and innovative, explaining that historically, housing crashes are followed by new product offers like short-terms ARMs, reset mortgages and subprime mortgages that have fueled the recovery.
Sure, let's start giving out innovative products like subprime, reset and short term ARMs to people that can barely afford them because that worked out so well the last time around.
btw, who the heck is this idiot journalist and how is Fox allowing such rubbish to be published?
??? Perhaps the solution lies in reduced government intervention. Allow people to purchase smaller properties (less land and thus less expensive). More people will be qualified to borrow and the market will lend to qualified borrowers. Problem solved without government intrusion.
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