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In my opinion, you should only buy a house if you can afford to lose that money. Otherwise, it is for the most part a waste. If it is an investment, then you should look at it as such, and have enough money to be fine if the investment goes bust. Look at almost any property - once you buy the house, it starts for the most part losing value. Over perhaps 20 years (and with the economy and unstable job market, most people don't stay in houses anywhere near that long these days), the value of the house stays almost the same. You can't count on it to grow, especially with all the maintenance costs and possible problems with it as well as wear and tear over the years and style changes. Flipping houses, especially if you live in them is a viable option if you can make sure you don't push the value too far past what the neighboring homes are estimated at, but that is a lot of time and work, and also a gamble.
In addition, look at the debt the average American family is in on top of that. If you do follow the recommendations and go to a four-year college, that is a HUGE amount of debt that you will be paying off usually into your 30s (much worse if you go to grad school). Add to that the mortgage debt, as well as other expenses like car loans and insurances. It would often make more sense to be a mechanic, plumber, or manager of a profitable construction company and start making and saving money for retirement at age 20. In truth, they are more likely to be able to buy a smaller home and make that financially viable, though likely they would do better in retirement if they rented long-term, deferring mortgage payments, repair costs, and other costs/risks associated with home ownership.
I just think that the numbers don't make sense for the majority of people, especially when much of the generations under 50 don't know how or are unwilling to budget and save for retirement.
Fine...it has only been for somewhat limited points in history that real estate (in terms of homes) appreciated that much over inflation. That doesn't make it a bad "investment" though because in the end, you only pay property taxes and insurance which is almost always less than rent. And though not very liquid, it can be sold - depending on the market for either at a profit or not - but the point is to pay it off and save that money for other things, like retirement.
First step of financial prudence is to be born in the right family, everyone knows that
Kenny Troutt, Howard Shults, Sheldon Adelson, John Paul DeJoria, Oprah Winfrey, Sam Walton, Ingrer Kamprad, Roman Abramuviel, Kirk Kirkorian, Li Ha-Shing, Grorge Soros, Maria dos Gracas Silva Foster and many many others would beg to differ. Each of them is or was when they were alive, worth at least $1billion with many worth many times that. I have multiple friends that grew up with little and went on to build at least a few million net worth.
I have friends who can barely fill their gas tank buy a home. We both have steady income and 18K down, and with down payment, closing costs, moving expenses etc....we could be out almost all of our money. How do people with no many afford it?
There's tons of programs for first time home owners, low income persons, and current or former military.
Buying a house is never dumb. It becomes an asset with value (it will never be worth $0), and rent will always keep going up, while your house payment can stay the same for 30 years (except for taxes and insurance). It's only dumbt to buy a house you can't afford, and to live the rest of your money frivolously. Everyone needs a place to live. Think about the game monopoly. The guy who wins is the guy who owns the most, not the guy who rents. Real Estate is about the only sure investment long term because real estate is finite. There are only so many houses and pieces of land to buy.
Lenders don't generally overextend anymore due to all the strict regulations that came into effect since the housing crash. So really it is a matter of financial responsibility.
First step of financial prudence is to be born in the right family, everyone knows that
Yes... a family that values work, setting goals and living within one's means can be invaluable...
Never realized the life lessons I was getting hearing my Grandmother explaining the Depression and what can happen when people through caution to the wind.
Have to say that I am around people that earn good livings... lots of Doctors... it is surprising just how much then burn through every month to maintain the lifestyle...
I have friends who can barely fill their gas tank buy a home. We both have steady income and 18K down, and with down payment, closing costs, moving expenses etc....we could be out almost all of our money. How do people with no many afford it?
You have been renting for eight years with no rent increase, have a combined income of 100k, are 41, have 18k in savings, have virtually no commute and want to buy a house for 199k. Where is your money going?
Yep, this. My husband and I have friends who are practically given houses or have them mostly paid for by their parents. I won't lie, it makes us a little jealous because we started from nothing and are busting our asses saving up to buy what will be a much more modest house than what they were simply given.
Same here. Among our peers, it is pretty standard for the parents to give as a wedding gift enough for a sizeable down payment on a house (and we're in HCOL area, so that's not small potatoes). The Mr. and I aren't so fortunate, which is fine; we're willing to work for it. But my in-laws always go on and an on about how "everyone else" owns a home and they "want to see us out of that apartment". Um yeah, that would have happened a long time ago if we had someone cut us a 6-figure check, too . We just keep telling them the same thing year after year: "We'll buy a home when we have a 20% down payment and sufficient income for a 15 year mortgage. Then, and only then, will it be a better financial move for us than renting."
You have been renting for eight years with no rent increase, have a combined income of 100k, are 41, have 18k in savings, have virtually no commute and want to buy a house for 199k. Where is your money going?
In the near future, To a divorce lawyer. Read the threads this poster has started in relationships.
It's called a gift, and with proper documentation, entirely legal.
I don't have kuds, but uf I did, I'd sure as hell rather give them money for the down payment on a house than spend it on a big wedding,
I agree. I don't see anything wrong with helping your kids get ahead if you have the means. My parents have given me some gifts like described here, but what they told us was that they didn't see the point of them hanging on to it all, living to be 100 or so and us inheriting all of it from them at that point. We would likely have made our own way by then and wouldn't need it as much. The gifts were given, most of the time with strings attached in ways that helped, but still required work on out part. I look out for my kids in the same way. You can be jealous if you want to, but I think you would want to do the same for your own kids if you can.
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Real Estate is about the only sure investment long term because real estate is finite. There are only so many houses and pieces of land to buy. 
