ARJ Defense ad

A battle Millennials are losing to Boomers - can you say "OK Boomer" now?

The #1 community for Gun Owners in Texas

Member Benefits:

  • Fewer Ads!
  • Discuss all aspects of firearm ownership
  • Discuss anti-gun legislation
  • Buy, sell, and trade in the classified section
  • Chat with Local gun shops, ranges, trainers & other businesses
  • Discover free outdoor shooting areas
  • View up to date on firearm-related events
  • Share photos & video with other members
  • ...and so much more!
  • bbbass

    Looking Up!!
    Rating - 0%
    0   0   0
    Sep 2, 2020
    2,825
    96
    NE Orygun
    Gross or net? 1972 dollars or 2021 dollars?

    I’m not arguing that running a business to flip a house, which is what you did can’t be profitable. What I’m arguing is that *most* 20- to 30-somethings don’t have the time, interest, or skills to do that today. They may have one or two, but not all three.

    2006 dollars.

    At the time, young couples in Bend OR working online would buy a property with an ARM loan or worse one of those smorgasbord type loans, I forget what they are called, that allow different payment options EACH MONTH (World Loan strikes a bell), and bounce out to another home after two years. I forget why it was 2yrs (uhmmmm, capital gains exemption IIRC) but it was def before the rate adjustment came due.

    They weren't "flipping", they were taking their equity after 2yrs of appreciation and moving up, buying more expensive/bigger houses each time, which rise in value faster. It's called "leveraging" and most young people understood the principle very well.

    Are you saying that is beyond the capability, understanding, and interest of most young people today??? Wow, kids have lost the desire to make money. No wonder they want Socialism.

    ETA: this is only in a hot RE market. I would agree that many kids are not good at "penciling things out". But in a hot market it really doesn't matter.
    Gun Zone Deals
     
    Last edited:

    toddnjoyce

    TGT Addict
    Rating - 100%
    4   0   0
    Sep 27, 2017
    19,285
    96
    Boerne
    …Are you saying that is beyond the capability, understanding, and interest of most young people today??? Wow, kids have lost the desire to make money. No wonder they want Socialism.

    ETA: this is only in a hot RE market. I would agree that many kids are not good at "penciling things out". But in a hot market it really doesn't matter.

    I’m saying exactly that. Those junk interest only balloon mortgages led to the bubble’s inflated pricing (free money). Then from 2008-2013 or so, that crazy growth stopped.

    Same conditions exist today, only it’s fed money being dumped cheaply and not junk mortgage products.
     

    toddnjoyce

    TGT Addict
    Rating - 100%
    4   0   0
    Sep 27, 2017
    19,285
    96
    Boerne
    Most people only stay in their homes around 6 years, and upsize.
    The reason for the (now-mythical) 'six-year break-even' is the once-common (and now rare) 'seller contribution' (used to be 3% standard), 6% commissions, 2% closing costs, and 'realistic' interest rates in the 6-8% range meant you started about 11% negative and took years to build any sort of equity.
    Take away the seller contribution and you're starting at 8% negative - roughly the rate of inflation last few years - and with interest rates below 4% you're building equity within a couple of years.

    Eli

    Building equity to break even then start over again does not equal building wealth. OTOH, a prudent purchase with 20% down and amortized over 15 years almost guarantees building wealth if you stay in the home for 10 years.

    Seriously, most wealthy people live below their means in their ‘starter’ home where the kids grow up in the same house.
     

    pronstar

    TGT Addict
    Rating - 100%
    2   0   0
    Jul 2, 2017
    10,540
    96
    Dallas
    Yeah in a normal market, if you’re only gonna live in a house for 5-ish years, you’re money ahead renting.


    Sent from my iPhone using Tapatalk Pro
     
    Top Bottom