So much for Millenials not buying homes and renting all their lif
Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votesSo much for Millenials not buying homes and renting all their lif
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I’d take that with a grain of salt .MSN = fake news
Same company that said Hillary will win by a landslide victory and the New York would be under water due to global warming according to their “sources “
65 Replies
- Rental Property Investor · Harrisburg, PA · Member since 2018 · 369 posts · 406 votes7y
Originally posted by @Jay Hinrichs:
now of course this is major media and all the slants that come with it.. just like media saying that folks are not going to buy houses and they prefer to rent..
now you have the opposite LOL see article for your reading pleasure
https://www.msn.com/en-us/money/realestate/it-turn...
Just like we are headed for a CRASH any minute now the pundits are saying.. we maybe a recession but wont be lead by real estate this time around..
jay I saw this this morning and have already put our STVR up for sale...I'll be buying guns and bullets ad rice and stashing it for the apocalypse!
- Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes7y
Originally posted by @Doug Pintarch:
Originally posted by @Jay Hinrichs:
now of course this is major media and all the slants that come with it.. just like media saying that folks are not going to buy houses and they prefer to rent..
now you have the opposite LOL see article for your reading pleasure
https://www.msn.com/en-us/money/realestate/it-turn...
Just like we are headed for a CRASH any minute now the pundits are saying.. we maybe a recession but wont be lead by real estate this time around..
jay I saw this this morning and have already put our STVR up for sale...I'll be buying guns and bullets ad rice and stashing it for the apocalypse!
the US being such a huge diverse market. there are markets that are and have been areas were 50% of the population rents.. but that has been going on for decades and decades.. WE sell a lot of new construction to the under 40 .. probably 70% of them and believe it not many pay cash and a lot of cash 500k to one I sold in Jan. for 2.2 million.. burnt out wall st. trader with young kids.. wants to relocate to Charleston and be in the historic district.. I under stand the thought process of they don't want to be tied down to a home.. but at the same time these are educated young adults who realize that rent is just throwing money away compared to owning a home were mortgage is basically the same and in many markets less than rent.
- Rental Property Investor · Harrisburg, PA · Member since 2018 · 369 posts · 406 votes7y
That part always astounded me Jay, even in my earl 20's before I was a homeowner, some folks just can't make the rent/own numbers work in their head. Plus there's that whole "Building equity in a tangible asset" thing that goes with it...
I’d take that with a grain of salt .MSN = fake news
Same company that said Hillary will win by a landslide victory and the New York would be under water due to global warming according to their “sources “
- Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes7y
Originally posted by @Dennis M.:
I’d take that with a grain of salt .MSN = fake news
Same company that said Hillary will win by a landslide victory and the New York would be under water due to global warming according to their “sources “
totally agree that's why I commenting on the pending finical doom of the real estate bubble.. But I have empirical data.. IE just a small sampling I sold 32 new builds last year and I would think at least 20 them went to the under 40 crowd.. Along with probably 100 plus rentals we sold and most of those were to under 40 investors or at least half. that segment is a power segment and will be for years to come. But its regional for sure.. I find the motivation to own a home in historic non appreciating markets is not as keen as other markets were rents have risen by 50 to 100% in 10 years and prices continue to rise.
when someone lives in a market and their 100k home was 100k 8 years ago and now its maybe 110k were is the urgency.. and when rents have basically been 500 to 1200 for the last 20 years were is the urgency..
Not worried lol I think I read recently that 80% of millennials today can’t qualify for a traditional home loan and that likely won’t change anytime soon . We aren’t saving enough these days .Judging by the ones I know I’d understand why . I’m sure there’s plenty of young bucks “ killing” it ( on here especially) but I certainly don’t see that around me . In fact virtually every millennial I can think of is not ambitious with their goals or smart with their money. America is in for a rough ride with these guys at the helm in the years ahead
- Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes7y
Originally posted by @Dennis M.:
Not worried lol I think I read recently that 80% of millennials today can’t qualify for a traditional home loan and that likely won’t change anytime soon . We aren’t saving enough these days .Judging by the ones I know I’d understand why . I’m sure there’s plenty of young bucks “ killing” it ( on here especially) but I certainly don’t see that around me . In fact virtually every millennial I can think of is not ambitious with their goals or smart with their money. America is in for a rough ride with these guys at the helm in the years ahead
its so regional.. I was invited to Google world headquarters in Mt. View last summer to make a short presentation on real estate investing. It was very cool the campus unbelievable 3 meals a day all free and all Top quality as good as any restaurant you would go to .. So I would say a very large portion of this companies thousands of employees are under 40.. and on top of that they make very decent wages.. .. When you get out to the mid west were manufacturing well we know what has happened to wage scale and benefits.
I think our crisis in our area is so many of our kids coming up are not interested in the Trades.. there is a huge gap.. so we have an acute labor shortage.. where a very good tradesmen out our way that can scale a company can easily make big time money.
our Dry Wall contractor for instance has 600 employees and a nice JET.. lol.. and he does insulation and dry wall he scale it.
When you look at the number young investors on BP it's hard to put any stock in the idea that young people don't care about their future. Sure there are way too many 30 somethings living at home but they will see the light soon.
- All Over, USA · Member since 2017 · 689 posts · 756 votes7y
@Dennis M.
Strange, every millennial I know can buy multiple, they just seem to choose not to tie themselves down. I’m one myself and own multiple Class A w/ 7 figures in mortgage debt, but renting my primary.
- Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes7y
Originally posted by @Bob B.:
When you look at the number young investors on BP it's hard to put any stock in the idea that young people don't care about their future. Sure there are way too many 30 somethings living at home but they will see the light soon.
that was going to be my next comment. I bet half the members on this site are under 40 LOL ..
- Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes7y
Originally posted by @Aaron Hunt:
@Dennis M.
Strange, every millennial I know can buy multiple, they just seem to choose not to tie themselves down. I’m one myself and own multiple Class A w/ 7 figures in mortgage debt, but renting my primary.
but you still own real estate.. be it primary or not.. you still have a piece of it.. I think the point of the article is you have this renter class that owns no real estate no home and is a life long renter.. and know doubt in many markets this is exactly right.
I remember the first time I was in Memphis setting up some of my HML and was at a PM's this was say 2002.. I asked him now is there any demand for these rental houses before I go making HML on them.. he said " Son 50% of the folks in Memphis rent." I was shocked coming from west coast were its not nearly as high and as it relates to SFRs less than 10% are rentals were as in the mid west in many areas is 20 to 50% and now with the last 20 years of all the turn key activity and guys like me funding that stuff on the front end there are whole sections of these towns that are basically 70 to 80% rentals so will always be.. homeowners are not coming back
they are in URBAN Cores like what we are doing in Charleston. but that's minute compared to other areas.
- Rental Property Investor · Phoenix/Lima, Arizona/OH · Member since 2012 · 4k+ posts · 4k+ votes7y
Garage
"Sure there are way too many 30 somethings living at home but they will see the light soon."
They will see the light when their parents go into the light. They are all patiently waiting for their inheritance so they can retire too. For now they are simply passing time. I always laugh when I read of a investor on here wishing to build a legacy to pass on to their children. No doubt the children are looking forward to the day they can liquidate it and retire.
- Rental Property Investor · Durham, NC · Member since 2016 · 7k+ posts · 7k+ votes7y
@Jay Hinrichs. As @Russell Brazil always says homeownership percentages fluctuate but have remained overall fairly consistent for decades.
I don’t see my generation (millennials) really changing that.
- Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes7y
Originally posted by @Thomas S.:
"Sure there are way too many 30 somethings living at home but they will see the light soon."
They will see the light when their parents go into the light. They are all patiently waiting for their inheritance so they can retire too. For now they are simply passing time. I always laugh when I read of a investor on here wishing to build a legacy to pass on to their children. No doubt the children are looking forward to the day they can liquidate it and retire.
we ran into this in the timber industry. parents hanging on to their timber and there forest to pass down to the next generation.
kids wringing their hands.. to get ahold of it.. usually log at the first opportunity.. and cash in !!! unless parents do advanced trust planning most will liquidate as you say.. seen it first hand.
I am not perticularly interested in controling money after I die. My attitude has always been that I work for me and anything I have is only important for as long as I live. Anything I pass on is a gift, I certainly have no use for it, and they can do with it as they please. As long as they don't give it away I don't care.
- Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes7y
Originally posted by @Thomas S.:
I am not perticularly interested in controling money after I die. My attitude has always been that I work for me and anything I have is only important for as long as I live. Anything I pass on is a gift, I certainly have no use for it, and they can do with it as they please. As long as they don't give it away I don't care.
the US the last 20 years or so has seen a massive transfer of inherited wealth.. much of it coming from areas of very high appreciation.
when you have houses that my parents paid 20k for and all my friends growing up.. and now mom and dad are gone and just the family home is worth 2 to 3mil. and of course is paid for .. that's a lot of wealth be transferred to the kiddos
There is potentially a huge amount of wealth being and going to be transferred in the next 20 years. Many that receive it will be financially ignorant and unprepared to manage it. Like winning a lottery. Most will likely lose it in short order.
That is very common with family businesses. One builds it, next generation mismanages and bleeds it dry, third generation goes bankrupt. Unless your children enter your business when they first enter the work force there is little likely hood they will carry on the business or investments. They will have their own interests and go their own way in life.
If the majority of millennials continue down the path they are going living for today, living paycheck to paycheck and not saving for the future they will be desperate to receive their inheritance to afford to retire.
- Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes7y
Originally posted by @Thomas S.:
There is potentially a huge amount of wealth being and going to be transferred in the next 20 years. Many that receive it will be financially ignorant and unprepared to manage it. Like winning a lottery. Most will likely lose it in short order.
That is very common with family businesses. One builds it, next generation mismanages and bleeds it dry, third generation goes bankrupt. Unless your children enter your business when they first enter the work force there is little likely hood they will carry on the business or investments. They will have their own interests and go their own way in life.
If the majority of millennials continue down the path they are going living for today, living paycheck to paycheck and not saving for the future they will be desperate to receive their inheritance to afford to retire.
Maybe the US should do what you guys and gals do in CA and make it mandatory to contribute to your retirement accounts direct from your pay check. at least it will be there .. unlike our SSI which everyone has predicted will not be there for many
@Thomas S. Trump said it right, not enough people in the trades. If I could do it all over I would have told my parents to politely FO. I wanted to be a mechanic. The stigma associated with trades and the generational acceptance of the path to wealth is get a degree and work that 40 hour x 52 week a year job for 40 years and get that pension is so ingrained in peoples heads is what you're seeing. Graduated college in 2000. I tried buying my first duplex in 2001 (Pawtucket, RI) and talking to my parents about their mortgage or asking my dad who was a Master Electrician in addition to being a cop to help me come inspect it, he was in no way interested. They were not interested or even willing to help. His reply was, go do it. We didn't have BP back then. And thus I never pusued it. When 9/11 happened I lost my first engineering job, before it happened I knew my job was not a 40 year job, industrial engineers were basically hired consultants. Once peak performance is achieved they would think, why are we still paying you? Of course until the next time they are wasting $800k a year. After 9/11 I was laid off and no one was hiring because companies were in shock. There was a huge cutback to see what would happen. Meanwhile my parents wanted me out of the house and rents were going up. So I continued to work crap jobs for sometime and live at home.
But hopefully you can see the mindset. I felt trapped. My parents wanted my to leave but they didn't want me to go too far. If I could go back first off I would have learned a trade that can be applied in any town, any city instead of going to college to sit behind a desk for 40 years, and instead of going the military route I would have packed my car and filled up my tank and drove until I ran out of gas. Cities only make up 2% of the American landmass. I was bound to find a cheaper place to live where I could wash dishes if I needed to and still pay rent. Then and only then, once I had some cash, then I could move back to where the action is and invest. Or stay where homes are cheaper. The point is move. I loved the movie Boiler Room and Ben Affleck gives a great speech in it. He is training new employees and he says "motion creates emotion" he is talking about getting out of the chair stand up and move around on the call. Millennials need to move around, and I am not talking about go tour southeast Asia and post on Instagram. That's cool and all but you can't invest or sometimes live there so while it's an experience it is also an expense and when you get back here your problem will be here to greet you when you return.
Millennials are stuck in this mindset driven by their parents to live close and the instant satisfaction they get that comes from the big cities where the action is. Bearly making rent. They are not concerned about the future. I mean with global warming and cow farts and the crash coming they will be alright. Bernie Sanders will be President we can let in the immigrants and they will still be able to provide me with free top notch health care.
Bottom line is people (millennials) are much more interested in being entertained than worrying about finances. Finance is BORING. The options of entertainment are now limitless because we have the internet. You don't see masses of people watching how to videos. The masses are concerned with keeping up with Paul Logan. There are leaders and there are followers, and there are get out of the wayers. As the masses follow the "leaders" it creates new opportunities for those who are looking.
- Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes7y
@Kevin M. cool picture you live in Missoula now ? I fish the bitterroot every year out of Hamilton
Montana is no way cheap anymore at least for primary housing.. and I would think were your at a big collage town there is a lot of student type rentals.
I can relate as your the age of my children.. I was fortunate in this aspect.. my daughter graduated from UC Davis 2002 so the shock of 911 was 9 months behind her.. but your right it was a very difficult hiring time for Collage kids.
the big tech companies were creaming the graduating class's if you were not 3.5 or 3.6 you had a tough time My daughter bless her heart was top 10 in her finance class and got offers from Intel Microsoft Apple etc. and took no time off and went to work .. She chose Intel.. at first she hated it being in budgets and planning.. And living in Palo alto in a 3 bed apartment that was already 3600 a month back then LOL.. But she made it through the beginning.. I talked them into coming to Portland since you only take a 10% pay cut or should I say you make 10% more if your in the bay area.
but even then the houses she was looking at in the not greatest parts of San Jose were 800 to million.. So coming to Oregon they bought a killer house for 400k.. and only took a 10% pay cut.. 16 years later 3 sabbaticals .. little dust up of not paying women equally.. she is now in upper management and does quite well.. I can see where her 30 years there will set her up for life.. I helped her buy two rentals but she keeps relatives in them.
My son took the path of sub trades is a GC does well.. compared to working in a factory in the mid west that's for sure. he is his own boss.
I will say if I had it to do all over growing up in Cupertino I should have stuck with some of the tech companies I was thinking of working with and gone into sales with them.. be long long retired by now. with stock options etc.. but who was to know.
- Investor · Los Angeles, CA · Member since 2017 · 523 posts · 476 votes7y
(Older) millennial and rental property investor here. I suppose I'll buy to occupy when I have a family, but until then, it's hard for me to see the value in buying a place as an owner occupant. I could invest that money back into buying more properties and growing my other business (attorney). The issue is (as Jay mentioned) too many millenials are doing zero to build wealth.
Part of it is understandable given that many of us graduated school with 6 figure debt, and others saw their relatives get foreclosed on in the '08 crash. Still, I have buddies who are doctors and attorneys and have paid down most school debt, but still have not take on any wealth building activities outside of 401K, they continue to rent, and so on. All of this when knowledge about building wealth is cheaper to acquire than ever before. Well, less competition for me and other younger investors I suppose, so I won't complaint :-)
- Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes7y
Originally posted by @Shiva Bhaskar:
(Older) millennial and rental property investor here. I suppose I'll buy to occupy when I have a family, but until then, it's hard for me to see the value in buying a place as an owner occupant. I could invest that money back into buying more properties and growing my other business (attorney). The issue is (as Jay mentioned) too many millenials are doing zero to build wealth.
Part of it is understandable given that many of us graduated school with 6 figure debt, and others saw their relatives get foreclosed on in the '08 crash. Still, I have buddies who are doctors and attorneys and have paid down most school debt, but still have not take on any wealth building activities outside of 401K, they continue to rent, and so on. All of this when knowledge about building wealth is cheaper to acquire than ever before. Well, less competition for me and other younger investors I suppose, so I won't complaint :-)
One of my proudest moments as a father was putting both my kids through collage .. so they did not have to borrow any money.. I did make them do intern jobs for their spending money.. but they both left with degrees and no debt.. so for me its a point of paternal pride that I could do that.. and of course they both bought primary homes right out of the gate.. ( my influence I guess) and my daughter is a Dave Ramsey deciple her home is almost paid for and they have no debt.. same with my son.. LOL.. But my daughter now makes such a good wage and stuff.. rentals at this point would bog her down I think. My son is a flipper.. he will do value add sell make 50k do the next one he does not need rentals either.
PS other than collage .. they bought their homes with their own money.
- Lender · Pensacola, FL · Member since 2017 · 658 posts · 626 votes7y
Originally posted by @Dennis M.:
I’d take that with a grain of salt .MSN = fake news
Same company that said Hillary will win by a landslide victory and the New York would be under water due to global warming according to their “sources “
I'm starting to believe media companies (content providers) are a recession-proof industry. It doesn't matter if the news is true or false. What matters is the advertising dollars follow the eyeballs no matter where they go. Fortunately, I own shares of Microsoft (the parent company of MSN), which is a Dividend Achiever.
The media was saying the same thing about the Boomers in the 1970s as they are saying about the Millennials today. The generation of pot-smoking hippies would never afford a house, much less anything else. By the 1980s, some Boomers had morphed into Yuppies (Young Urban Professional: a young person with a well-paid job and a fashionable lifestyle) and became the target of Madison Avenue. Today, some Millennials are apparently morphing into Muppies.
Whether the news is real or fake, however, it never changes. The issues the nonconformist Steve Jobs discussed on Nightline in 1981 are still with us today more or less. What has changed is we now have online forums such as BiggerPockets where people interested in a topic (wealth-building with real estate) can exchange ideas. The world is speeding up and change is happening at a faster rate.
Even those millennials that are working high paying jobs do not create anything of value. IT specialists, the newest addition of cell phone, apps to help avoid having to do anything with your life, electronic adult toys. All completely wasted efforts. No contribution of any value to society for a generation of adults living in their own private worlds playing with toys or walking around oblivious to the world around them glued to their cell phone.
I feel most concerned for their children. We can only imagine how children of the millennial generation will turn out. I can see them now with electronic games wired directly to their brains, feeding tubes and wearing bicycle helmets and body protection encase they should suddenly wake up and roll off the couch.
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