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Old 06-27-2018, 06:34 PM
 
33,046 posts, read 20,708,082 times
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Quote:
Originally Posted by bobspez View Post
They'd still be poor. It's not owning a home that makes you richer, it's the money to own a home that makes you richer. Otherwise, people living in luxury apartments or renting mansions would have less wealth than people living in small houses.

National Homeownership Month is saying PRECISELY that owning a home is what enables your kids to do better than the kids of the schlub who rents - because they are comparing the children of owners with the children of renters of the SAME AGE, RACE, AND INCOME.
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Old 06-27-2018, 06:35 PM
 
Location: Western North Carolina
4,742 posts, read 7,533,583 times
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Quote:
Originally Posted by bobspez View Post
This is a joke. The main reason for not buying a home and renting would be because you don't have the means to buy a home. It boils down to people with more wealth have kids that do better in school and they have more wealth than people with less wealth.
Not necessarily. I live in a rural area where it is actually CHEAPER to buy a house and make payments than it is to pay rent on a comparable house.

I bought my first house here (less than 50K) on a cashier's job at a local retailer and at the time, made $6.50 an hour, a single working mother, with two children.

How did I do that? First of all, I moved to an area I could afford. Second, I am a very responsible and frugal person who has always put my financial responsibilities first, and my wants second. I have done always done without status clothing, expensive cell phone plans, new cars, manicures, large screen TV's, or jewelry etc. It is much more important to me to own my home (no matter how humble). Third, because of my history of financial and personal responsibility, I had a very good credit score despite my very low income, and the bank looked at those factors. I had little or nothing to put down on that first home.

I understand that in some areas home ownership is out of the reach of many due to cost. But in some instances, the need to rent is due to a lack of planning and poor responsibility, and this gets passed on. Either that, or for some, not owning your own "space" is just not a priority, but it always has been to me. I just don't want to live in a home that I don't own.
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Old 06-27-2018, 06:39 PM
 
Location: Formerly Pleasanton Ca, now in Marietta Ga
4,110 posts, read 3,400,520 times
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So if people with the same income decide to buy a house or not, then it may affect their kids' success in life. Sounds like its not needing to lower the cost of entry of the house purchase as they have the income. They just don't have the mindset to be a homeowner even though it makes economic sense and they can afford it. That mindset might also affect how they raise their kids and how well they do in school.
It makes sense to buy the house if you can afford it and it makes you money. Those that don't do it probably raise their kids to have flaws in being successful.
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Old 06-27-2018, 06:39 PM
 
5,917 posts, read 4,054,897 times
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Quote:
Originally Posted by freemkt View Post
Did you actually read the post? Children of homeowners do better than children of renters OF THE SAME AGE, RACE, AND INCOME.

Are you saying there is some magical effect of wealth that doesn't exist for income?
Yes I am.
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Old 06-27-2018, 06:46 PM
 
Location: Formerly Pleasanton Ca, now in Marietta Ga
4,110 posts, read 3,400,520 times
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Quote:
Originally Posted by freemkt View Post
I suggest that perhaps there is something about renting that hinders wealth-building, and maybe we should identify and fix it.
It's not the fact they are renting, it's their mindset and priorities.
I rented and managed to build my net worth by investing what I saved by not buying a house.
The difference is I saw how renting was cheaper and I could invest the money I saved by renting.
You on the other hand have a tunnel vision and only see renting as a way to keep people like yourself down. I've said it before, if you picked up another job instead of posting as much as you do complaining how unfair everything is you's be in a lot better shape.
It's really up to you. Work instead of post and complain and make extra money or post here and not get paid anything.
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Old 06-27-2018, 06:50 PM
 
742 posts, read 802,881 times
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Children of billionaires are more likely to be richer than children of non billionaires of the same age, race, and gender.
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Old 06-27-2018, 07:20 PM
 
Location: Philadelphia/South Jersey area
2,280 posts, read 1,033,859 times
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Quote:
Originally Posted by untilthendoftime View Post
children of billionaires are more likely to be richer than children of non billionaires of the same age, race, and gender.
:d lmao
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Old 06-27-2018, 07:41 PM
DKM
 
Location: Thousand Oaks, CA
2,060 posts, read 670,106 times
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If income is the same then other factors are at play:

1) stability of growing up in one place which is more likely with homeowners than with renters. That means things like friends, same school etc.

2) the people who buy are usually more responsible in life than those who don't even of same income. You have to be, for example you need to be able to save up and have good credit. This would extend to the rearing of children.

3) some people have family money but a lower middle class income that still lets them buy a home in a good neighborhood.

4) some people inherit homes which is a form of wealth (see 3 above).

5) I'm guessing home ownership is correlated with long term family formation (marriage) and thus average better outcome for children, not to mention the wealth it creates as a forced family savings.
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Old 06-27-2018, 08:23 PM
 
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Educational outcome of children correlates very highly with the socioeconomic class of their parents. The children of white collar professionals tend to have a far better outcome than children of low income single parents. Home ownership has nothing to do with it. It’s the parents.
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Old 06-27-2018, 08:51 PM
 
1,481 posts, read 591,143 times
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Of course their is. Are you actually not understanding the difference between wealth and income? Two people make $50K a year. One inherits a house tax free, or his or her parents gift him with a $50K down payment so his mortgage is less than rent would be for a smaller apartment, or grandparents help out with gifts of cash, children's tuition, etc. The other person spends 1/3 of his net salary on rent and utilities. His whole family is as poor as he is and they are all just making ends meet.


Quote:
Originally Posted by freemkt View Post
Did you actually read the post? Children of homeowners do better than children of renters OF THE SAME AGE, RACE, AND INCOME.

Are you saying there is some magical effect of wealth that doesn't exist for income?

Last edited by bobspez; 06-27-2018 at 09:19 PM..
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