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Go visit a homeless shelter and find out what forced people there. There are people with substance abuse problems to be sure, but most simply had that one life catastrophe that made them choose between rent and food or other of life’s necessities.
Or stay in your echo chamber.
A little more about my experience with the recently homeless— until Covid, I taught a life skills class to residents at the local Salvation Army homeless shelter. I’m nothing like an expert in life skills; my personal history has lots of missteps in all aspects of my long life. But I found people who did know more than I do about money management and family relationships. Me, I was more of a cheerleader than anything, someone whose life had a lot of bumps and fumbles, but they could take advantage of the three hots and a cot they were getting for 90 days to reset their lives...which, I’ll say immodestly, they needed to hear more than money management skills.
How did I know this? Because for 14 months in 1972-73, I was homeless in Houston. It was 99.92% my fault; my habits and mindset dug a big hole for myself that but for the Salvation Army, I would never have escaped. I have an obligation to repay the gift of my life, and can’t wait until the shelter opens for volunteers to start up again.
About substance abuse in my local shelter— the Army randomly tests weekly; a confirmed positive means they’re back on the street. If someone’s admitted to a substance abuse problem or it’s discovered (those matronly officers have no problem rolling up someone’s sleeve to look for tracks), weekly 12-step meetings are mandatory, on pain of eviction from their cot and hots.
I had between 25-45% of my “students” be college graduates on any given week...as well as tweakers, guys freshly out of MDOC (prison, with no family or friends to take them in). Sometimes they were both. I listened to their stories, called them on their bull****, hugged them anyway, brought my grandkids along occasionally to remind them of a future in general and their futures in particular. Keep trying. Don’t give up on yourself, your family whether they love you or not, your life, your future. I would point to the blank wall behind me and tell them that that button they don’t see yet is the reset button on their lives. I belueve that button is really there. These folks have lived through lotsa s**t; they’d know if I was trying to run some more past them.
So I know whereof I speak. Those folks are, all too often, you and me with one small catastrophe separating the two of you, or me. As I responded to the person I responded to upthread, go there. See for yourself. Maybe volunteer to serve them dinner or some other meal. Offer them a smile and a greeting. Ask how they’re doing and listen for the real answer. Imagine the two of you have switched places. They’re almost certainly Americans, just like you.
If you can't afford a new home, then buy a used home, and if you can't, then buy an older used home, and if you can't then rent, and if you can't, then move to a place where you can afford housing.
I thought it was stupid to buy a house in a place you may not even stay in?
Well, then the obvious solution is to rent, right?
But you said if you can't rent then you have to buy a house where you can afford it.
Quote:
Originally Posted by ntwrkguy1
Mortgages are at historic lows, and owning a house right now is much cheaper than renting in a lot of places.
That's why the housing market is on fire.
It's infuriating because they're setting you up to lose money. It's like signing you up for a free trial then not allowing you to cancel but on a much worse scale.
Last edited by Nickchick; 10-25-2020 at 08:59 PM..
But you said if you can't rent then you have to buy a house where you can afford it.
It's infuriating because they're setting you up to lose money. It's like signing you up for a free trial then not allowing you to cancel but on a much worse scale.
That is why people work hard to buy in areas that increase in value, and don't want to see low income housing being built in these areas.
How are builders able to build so many homes? How are low to middle income families able to afford all these homes? If the economy is dancing on the edge of a depression like some believe, how are people affording all these homes? These are not all rich people buying homes. The data shows it is across the board with a special surge in first time home buyers and move up homes.
The interest rate on my first home mortgage was a whopping 16.5-% in the early 80’s.
The monthly P&I payment, exclusive of property taxes and insurance, would be a fraction of what it was in the early 80’s despite nearly 40 years of modest compounded appreciation.
Real estate is local, down to the zip code and neighborhood within the zip code. And then even location within the neighborhood and housing style.
Current interest rates goose demand. When demand exceeds supply in a particular local area, home values tend to increase. When supply exceeds demand, the inverse happens.
That a property is located in an area of high demand does not necessarily mean sellers are profiting. What the seller paid, subsequent equity loans and investments in upgrades or not, determine profit.
Some upgrades make a property more desirable. Some upgrades are way too personalized to matter. And some properties are upgraded beyond local norms.
My in-laws, long deceased, immigrated from Europe in 1950, before my time. They shared a tiny apartment with other immigrant families and saved every cent they could for a down payment. They worked very low paying service jobs cleaning commercial spaces at night. They never owned a car, dined out, went to a movie, had a TV, or learned to speak or understand English, despite being multi- lingual. None the less, they became naturalized citizens and paid faxes.
They eventually bought a 3 flat. The family lived in the basement with dirt floors, while they rented space in the units to newly arrived immigrant families.
The singular focus was paying off the mortgage note and owning free and clear and they did in record time.
Not too many homeowners are willing to live as frugally as they and many other immigrant families did
Not too many homeowners are willing to live as frugally as they and many other immigrant families did
That's right.
There's been a cultural shift in the reason to own a home. The reason to buy a home now is to have a big giant credit card called a HELOC.
Even worse is they make no attempt to save money for a down-payment.
Which builds Wealth: Putting 0% down on a $250,000 McMansion and paying $250,000 for a McMansion, plus paying $318,000 in interest....
...or...
....Saving money to put 20% down on the $250,000 McMansion and paying only $79,956 in interest....
...and then use $238,044 saved to invest or save or both to build Wealth?
Instead of spending $661/month on interest, if you put that in a Roth IRA which is typically 7%-10% you'd have over $800,000 for retirement after 30 years and if you lived 20 years beyond age 65 you'd have $40,000+ per year in addition to your Social Security retirement benefits.
And then people got the nerve to say they ain't got no wealth. Well, no, they don't, not if they're going to freely hand it over to everyone else.
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