Boomers won't let go of their homes

Because the current situation will only get worse. Both Millennials and GenZ are large generations. I’m certainly no expert, but seems like lowering the price of entry and providing breaks to first time buyers could be done without impacting larger, premium housing.

The other, more likely option is we become a nation of renters, and house and land owners become an elite group. Until the bloody revolution leads to heads on spikes.

 

Older GenXers are lumped in with boomers. Those of us from the late 70s and early 80s are stuck in the middle. Lazy, entitled, but also greedy.

 

Ha, speak for yourself.
GenXers I know are ambitious, humble but also munificent.

 

Those things would be better than the status quo, I just think the amount of government intervention to make a noticeable difference in pricing would invite backlash in our political system. Perhaps the calculus changes if there are enough renters to wield political power to overpower homeowners, but it seems like when they do, they are in cities, and are more interested in things like rent control, tenants rights, etc. Because its not like you are going to buy a single family home inside NYC or Chicago. There is a geographical imbalance as well as to where single family homes are built.

 

HEY, HEY, I might be lazy and entitled, but I uhh... what was that third thing you said?

 

My first house cost me $162,000 27 years ago. Zillow says it’s $376,000. That’s a 3% growth rate. Two things:

1. Thank God I sold it 24 years ago
2. Most first time buyers can afford.

3 bed 2.5 bath. 1250 sqft.

 

Our first "home" was a 2-bedroom condo located in Alexandria, VA that we bought in 1978 for $26,900. We sold it in 1984 for $52,000. It last sold in 2018 for $202,000. Redfin currently values it at $268,272. We bought our current home in 1983 for $131,000 and did a major renovation/expansion in 1991 for around $79,000. It was last assessed by Fairfax County at $677,160. By the way we have absolutely no interest in selling it not because we are greedy but because we prefer the home to senior citizens community and also want to pass it free and clear to our son. We still have an outstanding mortgage which should be paid off in no more than 8 years. Not in any rush to do so considering that the interest rate is 2.25%.

 

1900 SF, 146k in 2000, 475k now,

just under 5% appreciation before the 60k in improvements

 

Not really much different than loan forgiveness except less targeted at people that actually need help in getting a home. A tax break will generally go to those who could easily afford a home and those who can't. Lowering interest rates will again go to both. If you want to boost home sales to people, focus on those who could afford it if they had less debt. Probably the most effective pathway.

 

Reading these last few posts about first homes made me curious to look up ours. It was 1950 sq ft, with 3 BRs, 2.5 baths in Wilmington, De. It was constructed of Pennsylvania fieldstone in 1939. The window sills in the front and sides of the house were 14 inches wide, the width between the inner and outer walls of the house.

Realtor.com has it valued at 365,200. We bought the house for 34,500 in August of 1970, enclosed a screen porch, installed central air and sold it in May, 1974 for 37,000. Our first child was born while we lived in the house.

It was one 10 houses that were identical or mirror images. We were the first owner of one of these houses to install central air. All the homes had radiator heating and our neighbors had all been told installing central air was impossible. We found a contractor who made it work by putting the AC unit in the attic and running a single duct to a central closet that was vented into the LR, DR, Kitchen, and entry. All we lost upstairs was an 8 x 10 inch space in a corner of a BR that already had an irregular shape from two dormers and a corner closet.

Within 2 years almost every house on the block had installed central air using our model.

click google maps to see the homes on the street
Google Maps

 

I’ve been looking at used motorcycles. My wife doesn’t want me to get another one due to my age and because I’ve had two episodes where I got lightheaded while driving and had to pull over. I’ve have ample time to stop as I can tell when it’s coming on.

So if anyone in the Tampa Bay Area sees a bike off to the side of the road and an elderly white guy laying beside it that’s probably me. Don’t panic just kick me until I wake up.

 

I think the latte's are just a symptom of the problem. The younger generations are raised by wealthier parents than the older generations were, and are used to nicer vacations, nicer homes, etc. They were also raised on social media, which means that they not only hear about their friends' homes and vacations, they get to see them in detail. Then they have FOMO (fear of missing out) on life's experiences, and that causes them to spend NOW. If you lack the maturity to deal with social media, it can drive you in some strange directions. It's peer pressure.

Even making a decent salary as a chemical engineer, is was nearly two decades before I went on an international vacation. I had to make sacrifices to buy my first house, more sacrifices to pay 20% of the mortgage off and cancel the PMI. Then I got a new job a few years later and had to move and do it all over again. With younger people, if enough of their friends are taking international vacations, and it is within their theoretical budget to take their own vacation overseas, they're going.

The older generation had an issue with "keeping up with the Joneses", but that was more related to having a nicer house than their neighbors. Fortunately, that investment (normally) increases the value of the house, so it may not be an entirely (financially) foolish move, unless it is taken too far.

 

Good luck with your search.

 

My retired friend says he is planning on spending his last $5k on a used motorcycle and driving off into the sunset (and letting nature take its course).

 

Might as well just take out a loan for whichever motorcycle he really wants and then let nature take its course.

 

I had a thing for kawasaki. When bikes were affordable. These were before the electronic rider aides. No TC, anti lock brakes or wheelie control. Didn't even have steering dampers on them. Still have two of them. Want to get a sportster. Someone told me a bike should do as much for you standing still as it does for you riding. I would love a touring bike but I can't get past the looks at this time.

 

The first two photos look like they were taken at Matanzas Inlet. Very nice bikes. Two of the bikes on my not so short list of possible next bikes are the Kaw Z900 and Z1000. If I wanted to go for the old school standard look, the Kaw W800 would be at the top of the list.

 

Yes. We don't have many twisty roads around here so one of my favorite rides is taking A1A up to St. Augustine/Ponte Vedra from time to time. Matanzas is beautiful at sunset especially when the weather is cooler.

The Z1000 has been on my list to test ride and possibly goto for a more functional and upright ride while still maintaining the aesthetic I prefer. Have an acquaintance in town known as kawasaki Bob who has a bunch of the vintage kawasakis that I'm familiar with but have no experience with as I got into riding a little later. He does have an original widowmaker 750 that I want to try for kicks and giggles.

 

He would worry too much about the loan, and be unable to drive as recklessly as he would want to.