Why Baby Boomers Don't Understand Occupy Wall Street

[웃 910]

[Alex & Rachel 78]

Saving up for a deposit isn't going to help if house prices are out of reach to begin with. I can save for a 20% deposit all I like, but it means nothing if I can't get a mortgage on the remaining 80%.

[mawilson 2,133]

Saving up for a deposit isn't going to help if house prices are out of reach to begin with. I can save for a 20% deposit all I like, but it means nothing if I can't get a mortgage on the remaining 80%.

If house prices are so high, there are obviously enough people who can afford them. If most people were like you and couldn't get a mortgage on the remaining 80%, prices would drop to a level where they became affordable.

[Alex & Rachel 78]

Yes, well, prices are dropping.

And yes, people can still afford to buy them. They're just rarely people in their 20s or early 30s. There are a lot of people buying second homes, or landlords buying to let.

I do think we are going to have a generation where a good percentage of people rent all their lives.

I'm not really arguing that this is a bad thing, just that it is a thing. I actually don't mind renting. I just really resent being told that I can't afford a house because I don't work hard enough, and that obviously my parents worked harder, when, really, I'm working a 40+ week and earning about what my dad earned when he was my age (accounting for inflation). I also resent the implication that my generation's in debt because we're all itching to own the latest gadgets, or that we expect the world to be handed to us on a silver platter. I think more of us are actually living within our means than slim likes to think.

[^_^ 5,021]

This is true. Not everyone should be a homeowner. That's why there is always a big difference in median income of a MSA as a whole and median homeowner income within the same MSA.

[slim 1,530]

Ken Jennings is the dude!

Saving up for a deposit isn't going to help if house prices are out of reach to begin with. I can save for a 20% deposit all I like, but it means nothing if I can't get a mortgage on the remaining 80%.

Why can't you find a house you can afford?

It seems to me like you're trying to buy too much house. Not everyone can finance a $200,000 home as a first-time home buyer. Perhaps you could try a different neighborhood or, Lord forbid, a smaller house.

If house prices are so high, there are obviously enough people who can afford them. If most people were like you and couldn't get a mortgage on the remaining 80%, prices would drop to a level where they became affordable.

Or they'd live somewhere they could afford.

I hear that ####### all the time. "I can't afford a house around here." Well, genius, you live in a nice area. Housing costs are high. Move to a more affordable neighborhood and buy a house.

rarely people in their 20s or early 30s.

Over 1/3 of all homes are purchased by folks aged 18-35. The average age of a first-time home buyer is 30 years old.

I just really resent being told that I can't afford a house because I don't work hard enough, and that obviously my parents worked harder, when, really, I'm working a 40+ week and earning about what my dad earned when he was my age (accounting for inflation). I also resent the implication that my generation's in debt because we're all itching to own the latest gadgets, or that we expect the world to be handed to us on a silver platter. I think more of us are actually living within our means than slim likes to think.

Obviously, there are many 18-35 year olds who are responsible enough to purchase a home. I doubt many of them are occupying anywhere other than their cubicle or their home. Funny how that works, eh?

[Usui Takumi 1,562]

Yes, well, prices are dropping.

And yes, people can still afford to buy them. They're just rarely people in their 20s or early 30s. There are a lot of people buying second homes, or landlords buying to let.

I do think we are going to have a generation where a good percentage of people rent all their lives.

I'm not really arguing that this is a bad thing, just that it is a thing. I actually don't mind renting. I just really resent being told that I can't afford a house because I don't work hard enough, and that obviously my parents worked harder, when, really, I'm working a 40+ week and earning about what my dad earned when he was my age (accounting for inflation). I also resent the implication that my generation's in debt because we're all itching to own the latest gadgets, or that we expect the world to be handed to us on a silver platter. I think more of us are actually living within our means than slim likes to think.

Where are you looking to live specifically?

[Alex & Rachel 78]

Why can't you find a house you can afford?

It seems to me like you're trying to buy too much house. Not everyone can finance a $200,000 home as a first-time home buyer. Perhaps you could try a different neighborhood or, Lord forbid, a smaller house.

This is the Bay Area; you literally cannot get a house for under $200,000. Believe me, I'd be very happy with a 2 bed, sub-800 sq ft home. Living in the UK and here I am VERY used to small homes! For a period a boyfriend and I shared a room that was 6 ft by 7 ft.

Cheaper neighbourhoods are 1-2 hours commute away, minimum. The increase in gas costs would be too much. We're also tied to this area for family reasons.

Granted, I'm thinking mainly of my experiences in the UK, here. The US has a lot of cheap areas, and a lot of space in general. In the UK space is at a premium, and house prices in most of the country are fairly high.

Over 1/3 of all homes are purchased by folks aged 18-35. The average age of a first-time home buyer is 30 years old.

Obviously, there are many 18-35 year olds who are responsible enough to purchase a home. I doubt many of them are occupying anywhere other than their cubicle or their home. Funny how that works, eh?

I know a few people who are my age who do own a home but every single one was helped out by their parents. Actually, this was given as a reason for house prices remaining high in the UK; parents help their children buy a home since prices are so high, but then prices remain high because houses are still being sold because parents are helping their children...

Also, I'm taking it that these figures are for the whole of the US.

[Alex & Rachel 78]

Where are you looking to live specifically?

Right now, we both work in central San Jose, so anywhere in the South Bay. I wouldn't rule out moving further afield, but I'd like to remain close to at least one family (mine or Alex's) and I also owe it to my boss to remain here for the time being. Not to mention that wherever we moved, we'd have to factor in moving costs.

Really the decision to move to the US was an economical one. House prices here and over in the UK are roughly equivalent, as is the cost of living, but salaries here are generally greater. Even when you factor in the cost of owning a car and buying health insurance (neither of which were necessary in the UK) we're still better off here.

Like I said, I'm not expecting to buy. I'm not afraid to rent. My expectations - at least with regards to the size and situation of housing - are low. I'm just arguing that not being able to afford a house doesn't make me either a) non-hard-working or b) irresponsible.

Edited October 27, 2011 by Alex & Rachel

[slim 1,530]

This is the Bay Area; you literally cannot get a house for under $200,000. Believe me, I'd be very happy with a 2 bed, sub-800 sq ft home.

A quick Google search yields this charming 2bd, 2 bath with a little more sq. footage than you requested for only $59,000. Your drive time to work would be under an hour.

http://www.realtor.com/realestateandhomes-detail/824-32nd-St_Oakland_CA_94608_M27866-62548?source=web

[Fandango 1,440]

I just did a search, and searched El Segundo and the surrouding cities within a 10 mile radius, and there are 107 houses for sale $200k or under, with a min sq footage of 1200.

Forgive me, on.y been to Cali once, so I'm not sure what constitutes the South Bay Area....

[Mr. Big Dog 10,747]

A quick Google search yields this charming 2bd, 2 bath with a little more sq. footage than you requested for only $59,000. Your drive time to work would be under an hour.

http://www.realtor.com/realestateandhomes-detail/824-32nd-St_Oakland_CA_94608_M27866-62548?source=web

[Fandango 1,440]

http://www.realtor.com/realestateandhomes-detail/6323-Scalea-Court_Palmdale_CA_90260_M29599-33710 3000 sf really nice newer home in Palmdale for only $165k. Though I'm not familiar with palmdale Edited October 27, 2011 by Anita Cocktail

[Marilyn. 340]

I just did a search, and searched El Segundo and the surrouding cities within a 10 mile radius, and there are 107 houses for sale $200k or under, with a min sq footage of 1200.

Forgive me, on.y been to Cali once, so I'm not sure what constitutes the South Bay Area....

I am pretty sure the Bay area she is talking about is San Fransisco area

[Nina~ 431]

I just did a search, and searched El Segundo and the surrouding cities within a 10 mile radius, and there are 107 houses for sale $200k or under, with a min sq footage of 1200.

Forgive me, on.y been to Cali once, so I'm not sure what constitutes the South Bay Area....

El Segundo is near LA. It is a 6 hour drive to San Jose.