tldr: kids wasting money on useless crap, and this is a long rant.
Basically, there are a ton of young couples in my city. And they all complain about how homes are expensive.
Well, they are. They've been expensive for almost every generation. "But they were cheaper during the boomer times!" they screech! Yes, but interest rates were double digit, and banks didn't hand out loans like they do now.
Y'see, these same complainers, dual income no kids (DINK's) all seem to be rocking Arc'teryx jackets ($500 average) iPhones, Netflix, Amazon prime subs, Airpods, out for dinner numerous times a week, new-ish cars, UberEats deliveries which add $15 to each meal at least.
And as for getting their own place, they all seem to imagine they have to have a fully furnished home with the latest stuff.
My parents got their house with no sidewalks, no fencing, no garage, and yep, basic furniture ie a used kitchen table and chairs, usual bedroom stuff, some rugs, a small TV, used fridge, etc etc. Didn't even have a washer/dryer until I was 6 or 7.
My dad built the walks, did the concrete forms, retaining walls, framed and built a garage solo, built the fencing around the entire property, and mom took care of the inside of the house, did all the painting... listen, I could go on, but the point is yes, homes cost more dineros than they did if you account for inflation. And no this wasn't rural Sask or AB, this was urban BC in a big town that looks a lot like Vancouver on the map.
Can you really picture some hipster putting up a stud wall and shingling the roof on his own? Or knowing how to build a fence that could last longer than a month without falling down? He'd probably kill himself tripping over a handsaw.
But dammit, if you and your GF (for some reason they can't get married and start a family either) are spending $1900/month to rent something fancy, plus another $2000/month+ on bullshit, then fuck your complaints.
What excuse do you really have? Been together 5 years, still rent like a chud, no kids, but hey at least you get soggy cold food delivered to the door and drive a car that you can barely afford so you look cool on instagram. Over that same time they'd have been able to save a good amount for a downpayment and subsequent mortgage payments that are less than their rent.
Naw fuck it, just complain instead. Ok, rant over.
You have a point that the average retard is bad with their money, however it costs 500k to buy a little shitbox house in a big city so you can go fuck yourself
1900$ rent is what, a two bedroom apartment now? so fancy and entitled people are
But no ones buys houses with cash, you use a mortgage, and now you can do 5% down and interest rates are super low. To buy a 500k home you need 25k and your mortggage payment would be like 2500 a month and you need a combined income of 90k to qualify for the mortgage. Buy the house, finish the basement with a kitchen, rent the basement out for half your mortgage. This is all doable for a new family that doesn’t have kids yet.
You now have an income producing asset that makes your home more valuable, you can take out a home equity line of credit and invest the money into other real estate, stocks, or a business.
If you turn your 500k home into a 600k property you can get a heloc and take out 80k to buy a rental property in Windsor that will cash flow and you will reap the benefits of appreciation on two properties.
Nothing got handed to most people. they work hard for what they’ve got.
I have a hard time seeing the worth of spending that much on such a hyper inflated market. also renting can be a nightmare, especially with the white flight that goes on in the urban areas.
also good luck doing what you suggest and making your money back before you die. https://toronto.ctvnews.ca/this-tiny-toronto-house-just-sold-for-800k-over-asking-1.5072243
They aren't building smaller houses anymore, just massive 5 bed 4 bath mansions for parjet families. All I want/need is a two bedroom but those are all going well over asking to the point that I'm priced out of the market
The housing market is screwed up, and there is a legitimate complaint about how overpriced housing is, but you're right.
The wife and I cut our spending down so much that we have a savings rate of $4,000 per month. Other people in our situation can barely make their multiple car payments.
We have no monthly subscriptions, no cable, reliable used car paid in cash, we only buy clothes from Facebook or thrifted, or crazy closeout sales (wife bought 2 nice sweaters from London drugs for $5 each the other day). I bought leather work boots in near new condition on Facebook for $20.
We never order in, except pizza on special occasions like New Year's. I refuse to even install a door dash or skip the dishes app. We only get fast food with coupons. Cheap cell plans. Cheap phones paid in cash.
We are piling up cash. I still won't be buying a house in this market, but we can afford it.
A big part of this is our complete contentment in Christ. A good weekend for us is walking by the river, studying scripture, watching the Chosen, listening to worship music. It's a much simpler life. And I guarantee you we are happier and more fulfilled than 99% of normies out there 'living their best life'.
By living this way, our $100k household income is effectively $150k+ compared to how the average person lives.
Getting rid of the girlfriend has actually been the best financial decision I have ever made.
Playing With Fire: BMO Economist Warns About the Housing Market
-Retirement check: Cashed
-Housing market: Crashed
-Racial homogeneity: Destroyed
-Industrial capabilities: Offshored
-Government: Jewed
Yep it's boomer time.