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I agree most do manage it.
I am not talking about the responsible people who actually think this through.
(or take good counsel from people who might know something useful)
I am talking about the many others who go in and worry about the rest later
and think that keeping such a burden is the responsible part.
This group KNOW's (if only viscerally) that they are playing "catch up ball" in the game of life.
They also know (or sense) that they really have nothing to lose by rolling the dice.
Once in a while one of them actually pulls it off.
And until the Sheriff comes to put them out... they still had to live somewhere.
I still say the concept of employment stability in this economy is a laughable joke of an assumption with which to rationalize home purchasing, in this century. People's jobs are simply not that permanent in aggregate anymore. They're always losing them and having to either get another lesser paying job in town or relocate. None of which are compatible with the requisite homesteading that would make buying a wiser investment than renting.
I think the reason most people buy anyways is because the thought of these realities depress the hell out of them. They need the social validation the symbolism these "life markers" provide in order to escape the reality that they will always be playing catch-up in life compared to their parents. Put another way, the median home-loaner in this Country is financially insolvent as *uck and part of the reason for their insolvency is the very housing choices they make. Housing choices their employment instability is simply incompatible with. Talk about ironic. You feel the need to make life choices you can't afford in order to feel better about the fact you can't afford them in the first place. It's a vicious circle. Proof positive humans are generally inelastic about coping with downgrades.
It's a vicious circle. Proof positive humans are generally inelastic about coping with downgrades.
Yes, Americans are finding it difficult to cope with the lower standard of living. Others deny it and keep comparing us to third world nations in the hopes the contrasts will alleviate further distress. Sure, we're better off than Mexico, but what about Norway or any other nation high on the UN's human development index?
More conservative boomer types think there is no wage crisis or problem with re-distribution, it's all just a matter of how much someone is willing to go to work to get what they want. It's not a socio-economic problem to them, it's a matter of taking "personal responsibility".
A lot of older people simply don't understand the current job market and economic reality though.
They understand it; it's been going on since the early 1990s (watch the movie 'Reality Bites').
radiolibre99, I sincerely hope other young folk are as rational as you are about this stuff. Previous generations that pushed home ownership/having children was based on a wholesome life/family values—aka as the American Dream.
However, post-2008, the Boomers/Gen 'X' found out how insecure/vulnerable their retirement plans & home values have become. They need the millennials to be financially reckless, while simultaneously dealing with underemployment, relatively low wages, & devalued money. Boomers/GEN 'X' adore grandchildren also.
Then you have cities/municipalities that are ALSO dependent on millennials maturing into spendthrift consumers. This is a dangerous situation for the younger citizenry; they are looked upon as financially expendable cattle.
They understand it; it's been going on since the early 1990s (watch the movie 'Reality Bites').
radiolibre99, I sincerely hope other young folk are as rational as you are about this stuff. Previous generations that pushed home ownership/having children was based on a wholesome life/family values—aka as the American Dream.
I assume most of the people giving the type of advice/prodding the OP described were already well established in their careers and families when Reality Bites came out (nearly 20 years ago already).
I do agree the Millennials are basically looked at as expendable by many.
People's jobs are simply not that permanent in aggregate anymore.
They're always losing them and having to either get another lesser paying job in town or relocate.
None of which are compatible with the requisite homesteading that would make buying a wiser
investment than renting.
Care to put any numbers or ratios to these broad claims?
That what you describe exists isn't in dispute...
That it affects far more today (in every age group) than it has in the past isn't in dispute...
That it affects so many more than it doesn't affect (as is being implied) is in dispute.
Quote:
I think the reason (some of that affected group of) people (choose to ignore the common
sense warning to honestly evaluate where they in particular stand and then) buy anyways is because
the thought of these realities depress the hell out of them. They need (to fantasize that they meet the
objective financial buy/rent criteria) in the social validation the symbolism these "life markers" provide
in order to escape the reality that they will always be playing catch-up in life compared to their parents.
And too many salesman types are quite happy to sign them up for the mortgages.
And they're still the ones who choose to ignore the objective and sign the papers anyway.
Four basic questions to make that objective analysis from:
do you want to remain where you are for at least X years? (5-10 is considered minimum/norm)
is your employment situation rather stable? (solid company, solid market, needed product/service)
do you earn enough to afford a purchase? (pay the mortgage AND all the other obligations you have)
have you saved enough to manage a purchase responsibly? (down, closing, reserve)
If you CAN'T say yes to all four... don't sign.
Last edited by MrRational; 07-25-2013 at 07:28 AM..
Yes, Americans are finding it difficult to cope with the lower standard of living.
Maintaining the overly broad broad brush theme...
I see it that what Americans (and civilized westerners in general) are finding difficult to
cope with is reconciling the hard choices needed to maintain their/our standard of living
vs their/our desire to be decent and hopeful.
We really don't want to force deport the border crossing criminals and their progeny ...
and we really don't want to similarly force relocate the under/never performing native in order
to shed us of the burden of maintaining them and theirs in preference to maintaining the standard
of living that c/would otherwise work very well (tyvm) with 80-100 million fewer citizens.
I bought in 2008 (at $133,000...
and felt compelled to do another $15,000 in improvements...
for a total of $148,000)
My house value is about $125,000 now
Wow; sorry to hear about your really unfortunate timing.
Did you lose you your job too?
I'm not clear on why you've felt compelled to sell so soon after purchase
(and at a loss to boot) to then pay more in rent somewhere else.
Last edited by MrRational; 07-25-2013 at 10:45 AM..
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Market realities trump family values!
