3 ms·

Of course it wasn't 'easy' to make mortgage payments back then. Mr Market always prices monthly outgoings for housing to some % of typical income. The differen

by nly 5y ago

Of course it wasn't 'easy' to make mortgage payments back then. Mr Market always prices monthly outgoings for housing to some % of typical income. The difference is those who managed to get on the property ladder in between the 70s and 90s saw falling rates and their LTV ratios being crushed as property prices sawed. Today many of those people live in 7 figure homes in the middle of prime city centers, or bought second properties and became landlords, intentionally or accidentally. Young people today face the opposite. Just like stock market multiples, housing is at the highest the market can bare. Either we embrace inflation and wages rise, or interest rates rise, the market crashes, and millions upon millions of people end up underwater.

sigmaprimus 5y ago
>>>Today many of those people live in 7 figure homes in the middle of prime city centers. Many of those people live in their same homes, the city grew up around them. At risk of making a generalization, too many young people feel they should get to start at the top. People who bought homes in the 70s spent a lifetime accumulating their wealth, many of them have supported two generations of children and are still working to support the next generation. It is much easier to just throw up your hands and cry out "The World is Unfair". A choice is made to just give up rather put in the hard work required to succeed, that choice is about to go away along with the opportunities that todays youth have squandered. Hard times are right around the corner, the good news is that housing prices are going to come down. The bad news is it won't make a difference to the people complaining about not being able to afford them as the cost/wage ratio means nothing when You don't have a job.
- nly 5y ago
  > too many young people feel they should get to start at the top. I wouldn't call a dual income couple in their mid 30s paying >40% of take-home pay for a 2 bedroom flat "the top", but ok. I guess my parents who started with a 3 bed family home on a single blue-collar income started at the fucking apex.
  - sigmaprimus 5y ago
    So what You are saying is You and your partner are Dual Income No Kids or (D.I.N.K.s) and still struggling to get by? Now is the time to make some changes, You probably both have cell phone contracts totaling over $100 USD per month, chances are there is a just as much going out in other digital subscriptions, maybe You even have that stuff that makes your toilet water blue...literally flushing money away. IDK your situation but have heard the same excuses for a long time. You have the ability to make changes before You get tied down with responsibilities like kids and debt, make the choice to change your lifestyle now before that choice is made for You.
    - nly 5y ago
      It's a nice fantasy, but you need to brush up on Amdahl's law and apply it to saving. Our rent is currently 25% of our joint take home pay. It's contractually tied to inflation and goes up every year. Housing goes to 40-50% if we buy, but half of that will be equity and the other half at least won't be making my landlord, who owns at least a dozen properties, even wealthier. And we're not DINKs by choice. We want kids. I put 50% of my personal take-home salary in to savings/investments and have been doing so for 3 years. We have decided not go give more than token gifts this Christmas as we really want to reach our spring savings goal. Meanwhile house prices have gone up 10-15% over the last year. I earn good money but if it's this tough for me then believe me when I say it's fucking hopeless for most people my age. I've also heard this bullshit before from older generations, including my parents. Sure they faced hardships. Different kinds of hardships. Unemployment. Inflation. High interest rates...but don't think people have it any easier today because they're they spend $30/mo on a phone contract. Spending $30/mo on Netflix and Disney+ today is like spending $4/mo on whatever crap people wasted money on in the 1970s. They did it too.
      - sigmaprimus 5y ago
        >>>I've also heard this bullshit before from older generations, including my parents. Mark those words my friend...There is truth in them and one day not too long from now that same BS will be coming out of your mouth, I guarantee it! On a side note, put some of your savings into physical precious metals it may very well be the only thing that will allow You to prosper in the next decade.
montblanc 5y ago
> Either we embrace inflation and wages rise But then, probably, so would assets (stocks and real estate). I don't see an easy way out of this mess...

by nly 5y ago

sigmaprimus 5y ago

>>>Today many of those people live in 7 figure homes in the middle of prime city centers. Many of those people live in their same homes, the city grew up around them. At risk of making a generalization, too many young people feel they should get to start at the top. People who bought homes in the 70s spent a lifetime accumulating their wealth, many of them have supported two generations of children and are still working to support the next generation. It is much easier to just throw up your hands and cry out "The World is Unfair". A choice is made to just give up rather put in the hard work required to succeed, that choice is about to go away along with the opportunities that todays youth have squandered. Hard times are right around the corner, the good news is that housing prices are going to come down. The bad news is it won't make a difference to the people complaining about not being able to afford them as the cost/wage ratio means nothing when You don't have a job.

nly 5y ago
> too many young people feel they should get to start at the top. I wouldn't call a dual income couple in their mid 30s paying >40% of take-home pay for a 2 bedroom flat "the top", but ok. I guess my parents who started with a 3 bed family home on a single blue-collar income started at the fucking apex.
- sigmaprimus 5y ago
  So what You are saying is You and your partner are Dual Income No Kids or (D.I.N.K.s) and still struggling to get by? Now is the time to make some changes, You probably both have cell phone contracts totaling over $100 USD per month, chances are there is a just as much going out in other digital subscriptions, maybe You even have that stuff that makes your toilet water blue...literally flushing money away. IDK your situation but have heard the same excuses for a long time. You have the ability to make changes before You get tied down with responsibilities like kids and debt, make the choice to change your lifestyle now before that choice is made for You.
  - nly 5y ago
    It's a nice fantasy, but you need to brush up on Amdahl's law and apply it to saving. Our rent is currently 25% of our joint take home pay. It's contractually tied to inflation and goes up every year. Housing goes to 40-50% if we buy, but half of that will be equity and the other half at least won't be making my landlord, who owns at least a dozen properties, even wealthier. And we're not DINKs by choice. We want kids. I put 50% of my personal take-home salary in to savings/investments and have been doing so for 3 years. We have decided not go give more than token gifts this Christmas as we really want to reach our spring savings goal. Meanwhile house prices have gone up 10-15% over the last year. I earn good money but if it's this tough for me then believe me when I say it's fucking hopeless for most people my age. I've also heard this bullshit before from older generations, including my parents. Sure they faced hardships. Different kinds of hardships. Unemployment. Inflation. High interest rates...but don't think people have it any easier today because they're they spend $30/mo on a phone contract. Spending $30/mo on Netflix and Disney+ today is like spending $4/mo on whatever crap people wasted money on in the 1970s. They did it too.
    - sigmaprimus 5y ago
      >>>I've also heard this bullshit before from older generations, including my parents. Mark those words my friend...There is truth in them and one day not too long from now that same BS will be coming out of your mouth, I guarantee it! On a side note, put some of your savings into physical precious metals it may very well be the only thing that will allow You to prosper in the next decade.

montblanc 5y ago

> Either we embrace inflation and wages rise But then, probably, so would assets (stocks and real estate). I don't see an easy way out of this mess...