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Even as a DINK millennial couple with a combined low six figure income a home purchase feels like a poor investment. Not only the down-payment of $100k+ but the
by allthecybers 8y ago
Even as a DINK millennial couple with a combined low six figure income a home purchase feels like a poor investment. Not only the down-payment of $100k+ but the property tax increases and then having to pay that mortgage for 30 years. Since we expect mobility and a certain level of future uncertainty it just doesn’t make sense for us and many more of our generation to tie ourselves to such and expensive geographic anchor.
- gowld 8y agoYou can rent out that investment if you move. Paying rent is also expensive where home prices are expensive.
- Latteland 8y agoIf you are lucky you can get money from renting. If you were unlucky and had a house in the rust belt and jobs disappeared then few people could buy or rent your house. So people can get trapped. At least you can expunge your mortgage debt with bankruptcy. Not being able to expunge education debt is what's holding our economy down.
- sokoloff 8y agoNot being able to expunge education debt is what makes education lending possible. Otherwise, there’d be a line to file strategic bankruptcy after the last tuition payment was due...
- thedailymail 8y agoWhy would anyone file for bankruptcy right before paying their last tuition payment?
- aedron 8y agoCheap borrowing drives up prices of goods. This is true in housing and it is true in education.
- EADGBE 8y agoRevocation of a degree with the dissolving of student loan debt in bankruptcy certainly could work for some.
- sokoloff 8y agoThat doesn't make the lender whole, though; there's nothing they can repossess or foreclose on. It's a mild deterrent for some cases, but for a lot of situations, having the degree isn't anywhere near as valuable as having the education.
- tcbawo 8y agoOther (less fair) ways of doing it include requiring a co-signer or allocating some assets as escrow. Although, like healthcare, the problem is probably the cost not the financing.
- nostrademons 8y agoA lot of working professionals don't want the hassle of also being landlords, particularly remote landlords. If your tenant has a habitability issue, it's your problem. If they don't pay rent and you have to evict them, it's your problem. If they trash the place, it's your problem. If you pay a property manager 10% to make it their problem, the economics of paying a mortgage on a home you're no longer living in and renting it out become significantly more questionable - particularly in some place like the Bay Area, where mortgage payments are already often more than you would pay to rent the equivalent dwelling.
- EADGBE 8y agoThe "NK" part of your "DINK" is probably influencing your decision on whether it's a worthy decision to buy a home. As a "DI3K", a house makes a ton of sense. We need space, we need a place for five people to live, and we need a house in an area where the schools are going to be great for the next 18 years. We don't need mobility as far as relocation goes, because it just doesn't make sense in our life choices right now. I mean, it's certainly possible, but I've seen second-hand what moving from town to town every 6 months does to a 7-year-old. I'm not mad that our property (as far from the coasts as possible) has increased in value ~$50-80K, either. Don't forget shorter mortgage commitments are available (And a much better deal when you can swing them).