Here's why renting is better than buying in LA. (Long Beach: student loans, townhomes)

[looker009]

Originally Posted by SOON2BNSURPRISE

Also if you don't want to make money, don't invest in the stock market.

So you own a home. You consider it an asset. You plan on making money with that asset. How will your house make you any money? We bought our house at the end of 2010. It has cost me more money than just the mortgage. I have had to put money into the house in upgrades. Money I will never get back. I have had to maintain the house. Money I will never get back. The house does not give me a positive cash flow. It takes money to own a home. I can't call the rental company and ask them to send someone to fix my house.

The biggest benefit is a lifestyle choice. We love owning and having our own home. It has increased in value as well. But that is a paper increase that is not realized on my balance sheet. If I borrow money from my house then I have a loan. A bank is willing to create an asset to them out of my home and charge me for the experience.

It is foolish to use your primary residence as a bank. I have watched too many families try that and fail. I have watched some that did fine. My thought is that using your primary residence is too risky when it comes to investing.

The market can go up and down. Home prices can also go up and down.

Additional funds though, that is a different story. As mentioned we could put them into the house and pay off the home loan early. But then all we have is a paid off loan. The home loan will get paid off over time. While we wait to pay off the home loan we invest the rest in the market and get bigger returns. Since we are concerned with keeping the risk low, don't ever invest in long shot companies.

Depending on state you're wrong. In California anyone that purchased house in early 2000 can make a nice profit right now. In LA 2800 sqft house cost 300 k, right now same house will cost around 720k. The more you make it nice inside the more you get for it. When big earthquake hits, prices will drop by over 50% if not more. They will recover in 5-10 years depending on level of destruction. The reason why I said depending on state, in states with plenty of open land, house do not appreciate in price much.

[anikom15]

Originally Posted by HB2HSV

Starbucks an In-N-Out

What are you saying? The millennial are only capable of service sector jobs?

I happen to know many millennials work at startups in companies like SpaceX, Virgin Orbit, and other less well known firms. Yes, they're renting mainly because house prices near where they work are very high, it's hard to come up with a down payment. Second, if you're over 30 you start to feel old among your coworkers so you plan to make a job change.

I am a millennial. I have a good job, not at a startup, but at a very old and large company. Very few people actually get jobs at startups and tech companies. Most of my peers who bothered to get their degree either work at aerospace companies, medical companies, or in real estate. The rest have service sector jobs with no prospects, or completely stupid jobs like postmates delivering. I know only one person who works at a tech company (Facebook).

https://smartasset.com/retirement/po...or-millennials

Oddly, neither service jobs nor real estate were covered by the survey, but it gives some perspective regardless.

[looker009]

Originally Posted by anikom15

I am a millennial. I have a good job, not at a startup, but at a very old and large company. Very few people actually get jobs at startups and tech companies. Most of my peers who bothered to get their degree either work at aerospace companies, medical companies, or in real estate. The rest have service sector jobs with no prospects, or completely stupid jobs like postmates delivering. I know only one person who works at a tech company (Facebook).

https://smartasset.com/retirement/po...or-millennials
Oddly, neither service jobs nor real estate were covered by the survey, but it gives some perspective regardless.

Getting a degree this days is stupid unless you want to be a doctor or a lawyer. Employers hire base on what you know and not base on a degree. Days of having degree to get a good job is long gone

[bad debt]

Originally Posted by looker009

Getting a degree this days is stupid unless you want to be a doctor or a lawyer. Employers hire base on what you know and not base on a degree. Days of having degree to get a good job is long gone

Oh ok. Feel free to make yourself less competitive. I'll be sure to let all those finance guys I work with (that require degrees) that they should just go pick up a plunger and become a plumber.

By educational attainment: 35 percent of the job openings will require at least a bachelor’s degree, 30 percent of the job openings will require some college or an associate’s degree and 36 percent of the job openings will not require education beyond high school.
https://cew.georgetown.edu/cew-repor...-through-2020/


Nine of out ten new jobs created in the last year have gone to those with a college degree
https://www.marketwatch.com/story/ni...ree-2018-06-04

[looker009]

Originally Posted by bad debt

Oh ok. Feel free to make yourself less competitive. I'll be sure to let all those finance guys I work with (that require degrees) that they should just go pick up a plunger and become a plumber.

By educational attainment: 35 percent of the job openings will require at least a bachelor’s degree, 30 percent of the job openings will require some college or an associate’s degree and 36 percent of the job openings will not require education beyond high school.
https://cew.georgetown.edu/cew-repor...-through-2020/


Nine of out ten new jobs created in the last year have gone to those with a college degree
https://www.marketwatch.com/story/ni...ree-2018-06-04

Enjoy PAYING off nice loan for rest of your life. Basically in place like LA, NY etc you will still not be able to buy real estate and will be forced to rent

[bad debt]

Originally Posted by looker009

Enjoy PAYING off nice loan for rest of your life. Basically in place like LA, NY etc you will still not be able to buy real estate and will be forced to rent

See here's the thing. My wife and I actually get paid this thing called money. With this money we are able to somehow afford to purchase a home AND a student loan. It's not some binary dichotomy between the two.

Now, I certainly understand that someone like you who has no college degree and gets paid $12 an hour working at McDonald's can't fathom being able to purchase a house, but see when you get college educated with advanced degrees and start working a career track job your salary explodes. Currently looking at an average salary growth of 20%. Good luck getting that at any job that doesn't require a college degree.

[looker009]

Originally Posted by bad debt

See here's the thing. My wife and I actually get paid this thing called money. With this money we are able to somehow afford to purchase a home AND a student loan. It's not a binary event.

Now, I certainly understand that someone like you who has no college degree and gets paid $12 an hour working at McDonald's can't fathom being able to purchase a house, but see when you get college educated with advanced degrees and start working a career track job your salary explodes. Currently looking at an average salary growth of 20%. Good luck getting that at any job that doesn't require a college degree.

I am licensed real estate broker. No need for a degree and I make very nice living. Also no need to pay off any loans. I recently purchase a house.

[anikom15]

Originally Posted by looker009

I am licensed real estate broker. No need for a degree and I make very nice living. Also no need to pay off any loans. I recently purchase a house.

You can make a nice living with or without a degree, but there are a lot more jobs that require a degree than just lawyers and doctors.

[bad debt]

Originally Posted by looker009

I am licensed real estate broker. No need for a degree and I make very nice living. Also no need to pay off any loans. I recently purchase a house.

Lol. N of 1 buddy. Here's some data for you.

The typical REALTOR® is a 54-year-old white female who attended college and is a homeowner.
The median gross income of REALTORS® was $41,800 in 2018, an increase from $39,800 in 2017.

Some college: 30%
Bachelor's degree: 31%
Graduate degree and above: 13%
Associate degree: 13%

https://www.nar.realtor/research-and...ate-statistics


College is not required for anyone to make money. However, college greatly increases the probably of potential lifetime earnings. You can argue til you're blue in the face, but the data shows that you're wrong.


https://www.bls.gov/opub/ted/2017/hi...nd-quarter.htm

Here's a fairly basic cash flow showing the NPV of the three career tracks discussed by the BLS data to include the cash outlay required for each of the degrees and non earning years while in college or graduate school.



And then a fancy graph for you too showing total lifetime earnings for each net of education costs.

[bad debt]

Originally Posted by looker009

I am licensed real estate broker. No need for a degree and I make very nice living. Also no need to pay off any loans. I recently purchase a house.

How come you chose not to respond to this?

Originally Posted by bad debt

See here's the thing. My wife and I actually get paid this thing called money. With this money we are able to somehow afford to purchase a home AND a student loan. It's not some binary dichotomy between the two.

Since you're a realtor, this reality should be plain as the nose on your face. What percentage of home buyers in 2019 are millennials? Of the millennials that are buying homes what percentage have college degrees vs only high school degrees?

I'm sure you read your organization's reports, but in case you don't maybe you should get some continuing education credits or something by this stuff:

https://www.nar.realtor/research-and...ational-trends

https://www.marketwatch.com/story/th...use-2017-08-02

https://www.redfin.com/blog/homeowne...and-education/