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I have several friends in the military and they did well buying and selling every couple of years.
One family in the Navy bought and sold 5 homes in 20 years and made money on each and even the one that was just a little above even after deduction brokerage fees still came way out ahead compare to 3 years of renting.
This family started in Florida and then to Washington followed by California... Northern and then Southern and then to Washington DC...
When it was all said and done they retired to California and did find themselves underwater once they put down roots... they love their home and location and it has recovered all and then some since they bought in 2006
Could have been they were just lucky and hit the sweet spots around the country...
A major characteristic around military bases is that there is always a guaranteed summer rush of buying and selling because of the military base.
However, military people do retire from the military in their 40s to begin new careers, and almost inevitably they are exhausted from a life of mobility. Wives want to put down roots, kids are in junior high or high school and want to develop stable relationships.
A point that has been made in this thread, and I'll reiterate it, is that people who are 25 today will be 50 in another 25 years, and changing jobs every few years won't seem desirable, nor will it be lucrative. Most won't take 25 years to figure that out.
One thing to add is several close friends have relocated staying within the same company and each time the company has taken up the slack.
One is rather high up in Wells Fargo Bank... transferred from San Francisco to Portland and then to Texas... each time the bank was there to make the transition easier...
A point that has been made in this thread, and I'll reiterate it, is that people who are 25 today will be 50 in another 25 years, and changing jobs every few years won't seem desirable, nor will it be lucrative. Most won't take 25 years to figure that out.
Why on earth whould you think that?
You can pick up 10-20% raises by switching jobs. Would you suggest I wait patiently for 10-15 years for a promotion, picking up 0-3% raises a year or take control of my own career path? All of this is done at the mercy of my employer as well.
Consider this.. my company (like most companies now), fired the coworker I replaced because he had been there 12 years and was still mediocre. They saw no reason to pay him $80,000 / year (his salary crept up that high) when they could pay a young professional (I'm 24) roughly half that and get more productivity. Companies are for more concerned with cheap production than "loyalty" and "stability."
Quote:
Originally Posted by revelated
I'll flip it around on people.
I'm in my 30's...getting uncomfortably close to my 40's...and I've never been married.
Buying a house has remained a priority for the past 7-some years.
The reason is simple. A lot of younger folks just don't care about long term employment. They screw around at work, tweeting or texting or checking their Facebook/Instagram accounts; get fired, complain, go to some other job and do it all over again. Job stability isn't on their mind. I know, because it wasn't on mine until I turned at least 26.
The issue is that job stability is a strong factor for you getting hired. Companies don't want to see you moving from company to company, one year or less of experience at each. It doesn't look good. I've been at my current company for 2 years, the company before that 3 years, the company before that 5 years. I'm at a point where I don't want to go to another job just because. I want to be stable.
I'm only going to address this part of your post, because the rest is your opinion about home ownership (some very good points, but some I personally disagree with)
Stability is not a condition for you getting hired at all. Companies do not care about employee's "loyalty." Loyalty is for your family; not your career. Every HR professional will tell you that the goal is recruitment these days is to get the best employee for the lowest possible price. The older generation has some fierce competition because millenials are young, highly educated, highly motivated, and extremely broke. We will take jobs for peanuts and candy.
Your personal situation you described is actually exactly what I meant with staying mobile. Switching every 3-7 years is ideal for your career, but certainly tough to do when you have the burden of a mortgage. That is my point; why saddle oneself with buying and selling homes that frequently?
Last edited by Opin_Yunated; 03-08-2014 at 07:57 AM..
That point was not missed by me
I'm sure many millennials are buying homes, that's great.
Also many are not, which was my point and also okay
Agreed, one size does not fit all
and there are pros and cons to either choice, as this thread has clearly established.
Oh, I agree with your point that many are not buying homes. But, that will be a blip on the market timeline, and not the earthmover that some predict.
The Times They Are A-Changing has been accurate since Time Immemorial, The Dawn Of Time, Recorded Time, Etc!
Every generation goes through a phase or two.
Anyone who doesn't have the career they want has always thought they invented the "Bad Economy," when people have always struggled with their aspirations.
A corollary, and one of my faves: Every generation thinks they invented sex. LOL
Like to chat further, but I have a date to run out and show homes to millennials.....
Rent goes up every year. House payments generally don't. (Property tax increases are usually small and occur over a period of decades).
The house payment on homes I've been looking at lately (smaller, downsizing due to age/disability) generally come in around $250 - $350 - tack on another $100 to $150 per month for property tax and insurance in this area. The same house will RENT for $800 to $1000 per month - THIS year. Next year it'll go up by $25 to $50 per month, and it'll do that every. single. year.
Make one extra house payment per year and your 30 year mortgage will be paid off in 17 years. Since house payments will be about half what you would pay in rent - that should be easily doable. Unless you go nuts and buy more house than you can actually afford. Which is a whole 'nother issue ....
Given you own your own home, and barring crazy HOAs (which I wouldn't buy into if you paid me), you can pretty much do what you want. Do you want 3 dogs? You got it. You want to put in a vegetable garden? You are limited only by your own imagination and energy. Do you want to tear down the ugly pergola leaning over your patio? You don't need anyone's permission. Is something about your house unsightly or unsafe? True, its on you to fix it - but you are also solely in charge of DECIDING to fix it. No worries about having a fight with the landlord, who later refuses to allow you to renew your lease in retaliation.
Over many decades, I have had trouble with landlords over various issues, but the VAST majority of it has taken place in the last 7 years in two states, neither of which have any effective tenant protection laws. It is true, you can get gulled when buying a house. But owning is much, much preferable to having to deal with loony landlords. I greatly miss my rural property, which I own free and clear but can no longer live on due to disability (I don't drive, for one thing). I own that place free and clear - but it will have to be sold and the money spent elsewhere.
Stability is not a condition for you getting hired at all. Companies do not care about employee's "loyalty." Loyalty is for your family; not your career. Every HR professional will tell you that the goal is recruitment these days is to get the best employee for the lowest possible price. The older generation has some fierce competition because millenials are young, highly educated, highly motivated, and extremely broke. We will take jobs for peanuts and candy.
Just a comment...
A sister of a friend is HR for a Hospital in Washington State...
She receives employment inquires from all over the country and some foreign countries.
The hard and fast rule is anyone with an address outside the geographic area isn't considered.
I read thru the thread and would simply like to comment about buying a used trailer when your older .. I have worked as a PM for years so understand the rental side of things .. I owned a few homes as well bought and sold and rented them out several times over the ownership times I had them .. HOWEVER.. at my age I no longer wish to be that hands on so I thought about what I needed in life and how I planned to take care of me and where I wanted to live in my final years .. I wanted to stay in Mn with my children close by and I wanted good medical care thats offered here .. so .. renting in my area is pricey unless you live in senior Fed /hud housing but I didnt like that idea at all ( rules and controls over me .. ) so my kids suggested we buy a home .. umm NO because I suppect my money will run out befor I am done living and I would be forced into places that I wouldnt do well in Anyways .. I cant/dont want to OWE folks .. so at tax time my kid bought me a little 2 bedroom USED trailer and its nice totally rehabbed and decent .. She paid $4500.00 for this place cash its mine to live in free and clear .. I have to pay lot rent for it of course but 250$ amonth isnt bad when you think about rents .. in the area.. water swere and trash are included .. I pay for my own elect and personal stuff of course .. I live in a decent MH park I have yard privialages and a park in the center of the place .. so its def nice for what it is .. at age 67 I struggle with the what if's of life so having MY OWN PLACE as such works .. Maybe thats something you folks might want to look into that idea as cost effective used mobile on a rented lot ..
When I die my kid can sell it to some one else for about the same money or rent it out till she is ready to unload it .. small investment but decent payoffs for her ..
===========================
we got it on craigslist and if you look there are some awesome trailers in there for resonable price that are already fixed up and ready to live in with few problems ..
Last edited by Faworki1947; 03-08-2014 at 04:12 PM..
Reason: added a thought
Like to chat further, but I have a date to run out and show homes to millennials.....
Very funny Mike!
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