Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
People that don't own homes are the same people that aren't in the stock market, always hoping for failure for others where they have failed to venture.
They apparently also failed to notice that real estate and the stock market bounced back rather quickly if you just held on to it instead of cashing out losses. Biggest impact on my home ownership in the 08 fiasco was just that I had a longer commute for a couple years after taking a new job when I likely would have moved closer to that new job sooner if the market had not been temporarily down.
If new buyers are paying higher and higher prices, then the market says its worth it.
That is about the dumbest statement I've ever read lol
What you may not understand is that the assumption of "higher and higher prices" feeds into the perception of it being "worth it."
Example:
A trailer home is for sale, $1 million. Is it worth it?
Your gut instinct says of course not, I'm not going to pay $1 million to live in a trailer home.
Now, suppose the trailer home is going to increase in price by 20%. Sure, then maybe I'll take it, because I can quit my job and get paid $200k/yr just to sit in a trailer home. That's better then renting a nice house and having to work for a living, eh?
You'd cash out your retirement to pay for you ADULT child's house? If that's what you would chose to do with your money, then more power to you. My bigger question would be, why can't your adult child, and presumably their spouse, provide for themselves. To each their own.
Generational wealth works that way. We manage and improve upon the assets we inherit from our parents and pass them along to our children to better their lives. My kids are just fine, btw. The eldest is fully-employed as an engineer, and the second one is finishing up his degree with plans to do the same, so they're not sitting on their butts. While they know they'll inherit a nice cushion, it hasn't stopped them from working hard themselves, but their father and I have accumulated more than we need, so why shouldn't we help them if help is needed?
Absolutely but i dont know if its going to pop anytime soon. So much of the buying up of homes is not being done by individuals who are getting in over their heads with crazy mortgages. Large investment groups such as Blackrock have virtually unlimited amounts of cash just sitting there and they want to buy assets and are buying everything in sight. I wonder if we are leading to a situation like which exists in many other countries where few actually own their homes since nobody can afford to buy them. They are all owned by some entity that can afford to rent them generationally. Kind of like feudal lords did back in the day. We get closer to serfdom every year.
I am very much against a lot of broad Government action but perhaps we need to put a hold of allowing these mega investment groups from being able to buy private residences. If they want to invest in real estate allow them to build apartment buildings and thats it.
Generational wealth works that way. We manage and improve upon the assets we inherit from our parents and pass them along to our children to better their lives. My kids are just fine, btw. The eldest is fully-employed as an engineer, and the second one is finishing up his degree with plans to do the same, so they're not sitting on their butts. While they know they'll inherit a nice cushion, it hasn't stopped them from working hard themselves, but their father and I have accumulated more than we need, so why shouldn't we pay it forward?
You should, your kids sound very successful. My parents are in a similar situation to you. My siblings and I are all nicely established, by our own doing. What they chose to leave us, once they're gone, is just icing on the cake. It will be much appreciated, but certainly not expected.
My point isn't about generational wealth, if one is cashing out a retirement to buy a kid a house, my guess would be there's no generational wealth there, and the adult child isn't that successful.
I voted with the majority which has been caused by super low interest rates. Housing may still continue rising for a while because of the low availability and cost of materials to construct new houses but eventually, as interest rates rise and production spools up, prices are going to take a crash IMO.
I voted with the majority which has been caused by super low interest rates. Housing may still continue rising for a while because of the low availability and cost of materials to construct new houses but eventually, as interest rates rise and production spools up, prices are going to take a crash IMO.
A crash isn't coming without a lot of foreclosures and/or new construction clearing the huge backlog to increase supply. Interest rates rising and the supply chain catching up with the backlog will temper the rate of rise absolutely. But not crash values.
we are in a debt bubble... home, auto, school, credit cards, federal, state, local, etc..
Everyone except me! I've been debt-free for years. The morons who are in debt upto their eyeballs will wind up dragging me down somehow, but I have not figured how just yet. I'm sure the federal government will be part of it.
Yeah and it’s gonna crash soon 2008 style. It was on the verge of crashing in 2019 then I thought for sure Covid would crash it, somehow Covid made it even worse. It should effectively go some time in the next 18 months
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
