Millennials in Bay Area prefer to rent
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7   anonymous   ignore (null)   2018 Feb 10, 8:43am   ↑ like (0)   ↓ dislike (0)   quote        

anon_3a1a3 says
As soon as prices crash down to an acceptable level people will buy again. Why waste your money in buying an overpriced crap shack.


That's what I thought when I started renting in 2003. 15 years later (hard to believe it's been that long) I really wish I could go back in time and beat myself senseless for thinking that.
8   Ceffer   ignore (1)   2018 Feb 10, 10:03am   ↑ like (0)   ↓ dislike (0)   quote        

Tenpoundbass says
or fuck blow up dolls.


They don't?
9   WookieMan   ignore (0)   2018 Feb 10, 10:42am   ↑ like (0)   ↓ dislike (0)   quote        

anon_49a06 says
We waited and it paid off very handsomely. More than you can possibly know.


Waiting to buy and renting in the meantime paid off handsomely? Not saying it can't work out that way, but not much info given. I could post I did well in the stock market a while back, but what does that even mean? When, how much, etc. is always nice info (where is really good info in real estate too). So to put a nice bow on this comment, we really have no idea how well you did because you didn't give any context.
10   Goran_K   ignore (0)   2018 Feb 10, 11:19am   ↑ like (2)   ↓ dislike (5)   quote        

anon_d06f9 says
"Prefer" is a nice way to say, running out of options...


Seriously.

Millennial prefer to drive beat up 1990s era compact cars.

Just another way of saying, you can’t afford what you actually want.
11   FortWayne   ignore (1)   2018 Feb 10, 12:26pm   ↑ like (2)   ↓ dislike (0)   quote        

We too rented for a very very long time.

The trick is to save while renting, don’t spend it all on frivolous things. Be frugal. We were able to save enough to buy cash. I’m not rich, I’m not even middle class salaried, we simply saved.

I do have to say, since we bought we haven’t been as frugal anymore. Hard to save when you got to fix stuff, replace roof, plumbing, old car, etc... buy worthless nicknacks for residence...


WookieMan says
anon_49a06 says
We waited and it paid off very handsomely. More than you can possibly know.


Waiting to buy and renting in the meantime paid off handsomely? Not saying it can't work out that way, but not much info given. I could post I did well in the stock market a while back, but what does that even mean? When, how much, etc. is always nice info (where is really good info in real estate too). So to put a nice bow on this comment, we really have no idea how well you did because you didn't give any context.
12   anonymous   ignore (null)   2018 Feb 10, 12:29pm   ↑ like (0)   ↓ dislike (0)   quote        

It means don’t be jealous of other people’s sucess.

WookieMan says
anon_49a06 says
We waited and it paid off very handsomely. More than you can possibly know.


Waiting to buy and renting in the meantime paid off handsomely? Not saying it can't work out that way, but not much info given. I could post I did well in the stock market a while back, but what does that even mean? When, how much, etc. is always nice info (where is really good info in real estate too). So to put a nice bow on this comment, we really have no idea how well you did because you didn't give any context.
13   Ceffer   ignore (1)   2018 Feb 10, 1:00pm   ↑ like (0)   ↓ dislike (0)   quote        

Millennials only rent what they are used to, and there is a severe shortage of basement units in California.
14   anonymous   ignore (null)   2018 Feb 10, 5:23pm   ↑ like (1)   ↓ dislike (0)   quote        

No reason to buy overpriced houses. Wait for the crash
15   NuttBoxer   ignore (2)   2018 Feb 10, 5:37pm   ↑ like (0)   ↓ dislike (0)   quote        

tovarichpeter says
Millennials in Bay Area prefer to rent


Of course, who wants to be underwater in a year.
16   Strategist   ignore (1)   2018 Feb 10, 7:20pm   ↑ like (0)   ↓ dislike (0)   quote        

FortWayne says
We too rented for a very very long time.

The trick is to save while renting, don’t spend it all on frivolous things. Be frugal. We were able to save enough to buy cash. I’m not rich, I’m not even middle class salaried, we simply saved.


Most Americans are not like you. To them, if someone is willing to finance it, they must be able to afford it.
17   Strategist   ignore (1)   2018 Feb 10, 7:24pm   ↑ like (0)   ↓ dislike (0)   quote        

NuttBoxer says
tovarichpeter says
Millennials in Bay Area prefer to rent


Of course, who wants to be underwater in a year.


No one.
Who wants to double their down payment in a year? Everyone. In which case you better buy.
18   Strategist   ignore (1)   2018 Feb 10, 7:27pm   ↑ like (1)   ↓ dislike (0)   quote        

anon_3a1a3 says
No reason to buy overpriced houses. Wait for the crash


The crash happened 9 years ago. If you missed it, no worries, the next one will come in 80 years. Please be prepared to buy.
19   Satoshi_Nakamoto   ignore (0)   2018 Feb 10, 9:56pm   ↑ like (0)   ↓ dislike (0)   quote        

Strategist says
anon_3a1a3 says
No reason to buy overpriced houses. Wait for the crash


The crash happened 9 years ago. If you missed it, no worries, the next one will come in 80 years. Please be prepared to buy.


Why 80?
20   BayArea   ignore (0)   2018 Feb 11, 5:24am   ↑ like (0)   ↓ dislike (0)   quote        

Prefer Bwahahaha
21   anonymous   ignore (null)   2018 Feb 11, 7:34am   ↑ like (0)   ↓ dislike (0)   quote        

Strategist says
anon_3a1a3 says
No reason to buy overpriced houses. Wait for the crash


The crash happened 9 years ago. If you missed it, no worries, the next one will come in 80 years. Please be prepared to buy.


😂😂😂
22   anonymous   ignore (null)   2018 Feb 11, 7:34am   ↑ like (1)   ↓ dislike (0)   quote        

Satoshi_Nakamoto says
Strategist says
anon_3a1a3 says
No reason to buy overpriced houses. Wait for the crash


The crash happened 9 years ago. If you missed it, no worries, the next one will come in 80 years. Please be prepared to buy.


Why 80?


President Barron Trump will have died leaving no more Trumps to continue the dynasty.
23   anonymous   ignore (null)   2018 Feb 11, 7:34am   ↑ like (1)   ↓ dislike (0)   quote        

Markets move in cycles. When people tell you that you have to wait more than ten years for the next downturn you know we are close to reaching the top.
24   anonymous   ignore (null)   2018 Feb 11, 9:34pm   ↑ like (0)   ↓ dislike (0)   quote        

I’m certain 100% of people who scream CRASH don’t qualify.
25   anonymous   ignore (null)   2018 Feb 11, 11:15pm   ↑ like (0)   ↓ dislike (2)   quote        

Right now is a great time to put buying real estate on hole and get in on crypto. When crypto moons again and housing crashes I would diversify and pick up a house on the cheap side.
26   Sniper   ignore (11)   2018 Feb 12, 7:35am   ↑ like (3)   ↓ dislike (0)   quote        

tovarichpeter says
Millennials in Bay Area prefer to rent


I wonder if the fact that they don't save any money factors into the "preference"?




Since 74% have less than $5K saved, it's seems that home ownership is a distant dream.
27   anonymous   ignore (null)   2018 Feb 12, 11:13am   ↑ like (0)   ↓ dislike (0)   quote        

Ownership is for ASSHOLES! who want to suck BANKSTER! SCHLONG!
28   NuttBoxer   ignore (2)   2018 Feb 12, 11:22am   ↑ like (1)   ↓ dislike (0)   quote        

Strategist says
Who wants to double their down payment in a year? Everyone. In which case you better buy.


Bold assumption in an economy this shaky. Wait, don't tell me. Stable economies are supposed to be full of bubbles and wild market swings...
29   WookieMan   ignore (0)   2018 Feb 12, 11:29am   ↑ like (1)   ↓ dislike (0)   quote        

anon_fad35 says
It means don’t be jealous of other people’s sucess.


Not sure where anyone mentioned jealousy. I'm actually a positive person and don't like to see people down on their luck. All I was getting at is that not much is added to the conversation here when something like "I did so well on something, it was amazing, you wouldn't even understand" is made as a comment.

Tell us more why waiting to buy worked for you. Ideas, opinions and information are the key to discussions on any forum. Just saying it worked well for you, with no context, means nothing to anyone here. Congrats on doing well in something that could be anything. Seriously.
30   WookieMan   ignore (0)   2018 Feb 12, 11:51am   ↑ like (0)   ↓ dislike (0)   quote        

Sniper says
I wonder if the fact that they don't save any money factors into the "preference"?




Since 74% have less than $5K saved, it's seems that home ownership is a distant dream.


Not sure why it matters what is in a savings account with regards to renting or owning? I'm 34 and have about $37k in two savings accounts (hooray for me!). I can almost guarantee I'm doing better then anyone in any other generation right now outside the true 1%'ers. Savings in a savings account is not the greatest metric for measuring anything really when interest rates for those accounts are dick. I'd love to see the graph for every generation from this same source. I can't imagine it's much better for the other generations.

I'll also throw myself under the bus here as well. Anyone with over $5-$10k in a savings account is kind of stupid. Especially a Millennial. Every $ you can get your hands on should be going into 401k, HSA, Roth in that order, maxing out before you even have a savings account (outside of a 3-6 month emergency account). 98% of people can't even get to step one in my estimation.

So having a ton of cash in a traditional savings account is either stupid, or really hard to do. Not saying that's what Millennials are doing, just the savings account graph really has no bearing on renting or owning in the big picture. Outside of under the mattress or some checking accounts (which you have to have), it's really the worst place to keep your cash.
31   anonymous   ignore (null)   2018 Feb 12, 12:04pm   ↑ like (0)   ↓ dislike (0)   quote        

Hi wookieman, good post. may I ask, do you own a home and if so, when did you buy and with how much down?
32   WookieMan   ignore (0)   2018 Feb 12, 12:29pm   ↑ like (0)   ↓ dislike (0)   quote        

anon_3a1a3 says
Hi wookieman, good post. may I ask, do you own a home and if so, when did you buy and with how much down?


Feel like I've posted this before, but whatever. Yes I own. Two properties to date. I'll give the success.

Bought in 2013. Zero down, borrowed from a family member, the whole amount. Fixed the house up (I guess this would be the down payment technically) and refi'd, payed the family member back.

I taught the family member how to borrow money on margin with their stock funds (zero risk of a margin call with this individual). So we paid the monthly nut on that, which I want to say was a really low percentage, interest only while fixing it up. We refi'd, paid family member back and paid ourselves back what we put in to fix the place up. Still had $40k equity at that point I think in 2014. Just pulled $40k out in November again and still have about $60-$70k in equity.

Literally have been paid to own my primary home so far, even factoring interest I've paid on the loan. Key is to buy well. If you buy right even just once in your lifetime, assuming you have marketable skills as an employee, it can be the difference between retiring at 62 vs. 50. At which point I'll be renting places for 6 months to a couple years at a time because I don't want to own. You can do the same with renting as well and investing differently. Not saying one way is better than the other. Just was easier to ask for the cash for a house vs. investing in stocks or some other silly investment scheme.
33   CovfefeButDeadly   ignore (3)   2018 Feb 12, 1:27pm   ↑ like (0)   ↓ dislike (0)   quote        

Tenpoundbass says
I love stories like these. Like people have a choice other than the crap we have or don't have.
Nobody prefers to take Uber, live in a Closet size house, ride the bike everywhere, rent, or fuck blow up dolls.


This is sort of incorrect. Downtown/inner city living is pretty sweet. While I wouldn’t want to do without a car, during the three years I lived in Downtown LA, I put less than 5000 miles a year on my car, and most of that was trips to Las Vegas. Even with LA’s rather limited rail system, I was able to walk, uber, or take rail to most of the places I wanted to go.

Only regret at all was not buying a condo or loft in Downtown LA when I could have afforded it in 2011. I would have been bitching left and right from then until 2014, but it’s been all gravy since then.
34   anonymous   ignore (null)   2018 Feb 12, 1:33pm   ↑ like (0)   ↓ dislike (0)   quote        

Thanks for sharing. Do you live in California, if so, which area?
35   WookieMan   ignore (0)   2018 Feb 12, 1:53pm   ↑ like (0)   ↓ dislike (0)   quote        

anon_3a1a3 says
Thanks for sharing. Do you live in California, if so, which area?


God no (for the prices and COL). I'm in Northern IL, around the Chicago area. About as much detail as I'll give for my location. I'd do CA for the weather, activities and scenery and that's it.

I live among the peasants even though I can own the castle. Not trying to brag or anything, I prefer to live this way. Feel my quality of life is much better the way my wife and I are instead of living like rich ass holes. Fuck, with two kids and how much we like to travel, I'm not sure why we would sink a bunch of money into our house. We're both home, with a normal routine maybe 6 months of the year, and 70% of the time we're home it's just to sleep. So having some Taj Mahal is not really our cup of tea.

3a1a3 - I assume you were responding to me, so that's what the response here was regarding. I know I can come across as an ass. I'm not fully sure why you're interested, but hopefully I've given more information and detail then necessary. As always, register and get a username.
36   anonymous   ignore (null)   2018 Feb 12, 2:19pm   ↑ like (0)   ↓ dislike (0)   quote        

Thanks WookieMan!
Don’t think you come across like an a** at all. Appreciate the info. I was just curious. I live in SoCal and buying makes zero sense here. Waaay to overpriced. Far away from rental parity. I’ll rent, save and wait for a nice crash.
37   Sniper   ignore (11)   2018 Feb 12, 6:51pm   ↑ like (1)   ↓ dislike (0)   quote        

WookieMan says
Not sure why it matters what is in a savings account with regards to renting or owning?


It does matter. Doesn't buying homes require down payments and closing costs. If the Millennials in the chart haven't saved any money, how do they purchase? Answer, they don't, they rent.

WookieMan says
Anyone with over $5-$10k in a savings account is kind of stupid.


WookieMan says
(outside of a 3-6 month emergency account).


I'm confused, if someone has a 3-6 month emergency account, how much on average would there be in that account? Are you suggesting people shouldn't have a emergency account?

WookieMan says
98% of people can't even get to step one in my estimation.


Isn't that what the chart is saying for the 74%? Should Millennials dump every cent into their 401K (step one) and not save anything for a rainy day?

WookieMan says
Not saying that's what Millennials are doing, just the savings account graph really has no bearing on renting or owning in the big picture. Outside of under the mattress or some checking accounts (which you have to have), it's really the worst place to keep your cash.


I think it's clear by that chart that Millennials aren't saving tons of cash in their checking account or sticking under their mattresses instead of a saving account. They aren't saving. Period.

WookieMan says
I'd love to see the graph for every generation from this same source. I can't imagine it's much better for the other generations.


Sadly, it wasn't any better, almost just as bad.

https://www.gobankingrates.com/saving-money/half-americans-less-savings-2017/
38   ThreeBays   ignore (0)   2018 Feb 12, 7:41pm   ↑ like (1)   ↓ dislike (0)   quote        

Millennials also apparently prefer to drive Toyota Corollas more than Ferraris.
39   Strategist   ignore (1)   2018 Feb 12, 7:59pm   ↑ like (1)   ↓ dislike (0)   quote        

Sniper says
Sadly, it wasn't any better, almost just as bad.

https://www.gobankingrates.com/saving-money/half-americans-less-savings-2017/


"Some Americans who are saving appear to be doing a better job of setting aside cash in a savings account. In the 2017 survey, 57 percent of respondents said they have less than $1,000* in a savings account — a decrease of 12 percentage points from 2016 and"

Who bothers to save in a savings account? I remember opening a checking account with the criminal Wells Fargo, where they told me I would need to open a savings account too, if I wanted a free checking account. So I opened a savings account too with $600. After 6 years, and all that wonderful interest, it's still less than $650.
My point.....savings accounts are pointless. What counts is your liquid assets, and credit card limits that can be used in an emergency. And mommy if you are a loser.
40   Patrick   ignore (0)   2018 Feb 12, 8:08pm   ↑ like (0)   ↓ dislike (0)   quote        

Strategist says
Wells Fargo, where they told me I would need to open a savings account too, if I wanted a free checking account


Why do they do that exactly?

I suspect they have calculated that they will make more from fees when your checking falls below some minimum, or a check bounces. They wouldn't get as much in fees if you had all your money in checking.

Or maybe it's some other motive I don't know about.
41   Satoshi_Nakamoto   ignore (0)   2018 Feb 12, 8:12pm   ↑ like (0)   ↓ dislike (0)   quote        

Patrick says
Strategist says
Wells Fargo, where they told me I would need to open a savings account too, if I wanted a free checking account


Why do they do that exactly?


They are famous for inflating the # of accounts by any means possible, aren't they?
42   WookieMan   ignore (0)   2018 Feb 12, 8:43pm   ↑ like (0)   ↓ dislike (0)   quote        

Sniper says
Sadly, it wasn't any better, almost just as bad.


So clearly it's an American problem. If anything it's more embarrassing that older folks haven't saved more in the time they've had. Millennials can still make up lost ground. And yes, living with mommy and daddy is one of those ways to save money. If mommy and daddy are cool with it, isn't it on them to own their children as failures? Or smart capitalist? It's one or the other.

Sniper says
I'm confused, if someone has a 3-6 month emergency account, how much on average would there be in that account? Are you suggesting people shouldn't have a emergency account?


Should have clarified. Yes on having an emergency "account." Your emergency fund can be in a checking or savings account though. I keep on average about $10k in my checking. Yes, the savings account is an additional part of that emergency fund. Unless you're (not you) an idiot, $10-$15k should easily cover you for 3-6 months. If you need more than that in an emergency fund, then you don't need an emergency fund, you've got money and should have assets and don't need Dave Ramsey to wipe your ass (not you, speaking in terms of people needing this "service").

Sniper says


Isn't that what the chart is saying for the 74%? Should Millennials dump every cent into their 401K (step one) and not save anything for a rainy day?


Technically yes, every penny they can afford should be dumped into a 401K. Bankruptcy won't touch your 401K. It will fucking drain your savings account though if you want to keep cash there and have to declare BK. And if you're going bankrupt, the 10% early withdrawal on a 401k is a nothing burger if you don't have a job and aren't paying Fed taxes. So outside of a small cash contingency/emergency fund, every $ you can dump into a protected account is about the smartest move you can make.

Sniper says
I think it's clear by that chart that Millennials aren't saving tons of cash in their checking account or sticking under their mattresses instead of a saving account. They aren't saving. Period.


I won't dispute this. Most Americans aren't saving anything. Let's just stop hammering one generation or the other though.
43   Sniper   ignore (11)   2018 Feb 12, 8:53pm   ↑ like (1)   ↓ dislike (0)   quote        

Strategist says
What counts is your liquid assets, and credit card limits that can be used in an emergency.


Both of which, Millennials don't have.
44   Sniper   ignore (11)   2018 Feb 12, 8:53pm   ↑ like (1)   ↓ dislike (0)   quote        

Strategist says
Who bothers to save in a savings account?


The gist I get from this article (and others like it) is that they use the terminology "savings account" to designate saving money somewhere. Using the term "savings account" makes it clear to the readers what the intention is.

I think if they said "checking account", most people would equate a checking account as the one you PAY all your bills out of, not SAVE money for the future, that you don't touch.

As we all know, if a Millennial had $1000 in their checking account (debit card access), they would just spend it on a iPhoneX.
45   WookieMan   ignore (0)   2018 Feb 12, 8:56pm   ↑ like (0)   ↓ dislike (0)   quote        

Sniper says
Strategist says
What counts is your liquid assets, and credit card limits that can be used in an emergency.


Both of which, Millennials don't have.


I do. So this is not true.
46   Sniper   ignore (11)   2018 Feb 12, 9:39pm   ↑ like (1)   ↓ dislike (0)   quote        

WookieMan says
Sniper says
Strategist says
What counts is your liquid assets, and credit card limits that can be used in an emergency.


Both of which, Millennials don't have.


I do. So this is not true.


Well, we all know you're special! :)

Actually, my kids do too, but they are definitely a minority within their peers. The majority of their friends are the paycheck to paycheck group. My youngest son wants to rent a house with one of his buddies, but none of them will leave the comfort of mommy's basement and strike out on their own.

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