Interesting comments from one of my former students on housing

Yea-everybody wants home ownership for others because it's a better "thing". But nobody wants to make sacrifices to makes it happen. Don't worry-I have seen posts just like yours (almost word for word) on our local Facebook pages.
I grew up dirt poor and made lots of sacrifices to get where I am. My wife did as well.

I am all for making sacrifices for home ownership. Those that want to own a home need to make sacrifices.

Why should I sacrifice so someone else can get the same benefits I worked long and hard to get? No one did for me. Sounds communist to me.
 
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I remember in 2008, 2009, 2010 and mostly 2011, you could buy as many 1 br/1ba condos on the water in Florida for about $65-70k as you wanted. 2br/2ba were about $90k. I remember seeing older, smaller houses on Gulf Front beach property on Longboat Key FL in 2009, 2010, 2011 going for $250-275k.

Today, those condos are bringing $500-800k and those waterfront properties on Longboat are bringing $1.5M-2M and are "tear downs".


The thing is, in 2009, 2010, 2011, most of us were glad to have a job to pay our primary mortgage, a small car payment and buy groceries.

I'm 52 and re-arranging our investment monies. I've got stock market fatigue. I will be investing in residential real estate. I fully agree with many others, it will forever have value that increases.
 
Unfortunate for world if bright engineering mind went into real estate that honestly benefits few unless becomes generous.

However great if works out!

Exactly what I was thinking. If I were in high school today, I'd want to see what I need to do to become a real estate developer, since that's where the money is.
 
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Exactly what I was thinking. If I were in high school today, I'd want to see what I need to do to become a real estate developer, since that's where the money is.

Less than 1% of high school students have a clue about "what they want to be/do". What they NEED to do is go to friggin' WORK somewhere for a couple of years and get some real-life experience. I am VEHEMENTLY against sending an 18-year old to college 60 days after high school graduation.


As far as a "bright engineering mind" being wasted, that's debatable. He's obviously doing what he enjoys, finds lucrative and sees a future in it. Who says whatever he was going to design/assist with would actually ever make it to market/people?
 
Less than 1% of high school students have a clue about "what they want to be/do". What they NEED to do is go to friggin' WORK somewhere for a couple of years and get some real-life experience. I am VEHEMENTLY against sending an 18-year old to college 60 days after high school graduation.


As far as a "bright engineering mind" being wasted, that's debatable. He's obviously doing what he enjoys, finds lucrative and sees a future in it. Who says whatever he was going to design/assist with would actually ever make it to market/people?
I used to work in tech at a Fortune 100, and occasionally the HR team would have us tech leads do some recruiting at a fairly prestigious local STEM school.

I grew up relatively poor with two working parents struggling to make ends meet. I got my first job at 14 and worked continuously multiple jobs through high school and college in order to pay my own tuition 100% myself. I got good grades and went to a good state university which was still within top 40 in the country. I could never have any internships because I had to earn money in the summers. I graduated and moved on to get a postgraduate degree at another state school (payed for by being a TA) before getting hired into this Fortune 100 and getting promoted into management within 3 years.

Fast forward to recruiting. You’d be amazed by how many of these entitled, bratty, egotistical little college seniors have literally never had a real job before. No paper routes, no fast food job, nothing. A few had unpaid internships that seemed more like school than actual work.

I was so struck by their arrogance and their pushiness. The interviewees were selected by HR beforehand and the lists were handled by staff at the college. These kids would lie and try to get on the list or try to tell me to interview them off the record. They’d accost me and treat me like as if I clearly didn’t know what I was doing if they weren’t on my list. News flash, I’m the tech manager and I didn’t make the list, and by treating me like this you just got black listed. It was something else.

None of them, bar maybe one or two exceptions (whom I recommended for hire), had had to “scrap.” It was so eye-opening how entitled and privileged some of these kids are. I now look for evidence for being hard working, being able to deal with adversity, treating people equally, and being self-sufficient whenever I’m involved in the hiring process.
 
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I had a conversation with a co-worker back around 2005 or 2006 where he stated that real estate (home) prices would never come down drastically if at all because of the same argument made by the OP (people need a place to live). I disagreed and told him that prices will go down when people stop buying (or can't afford to buy). I believe it will happen again.
 
I had a conversation with a co-worker back around 2005 or 2006 where he stated that real estate (home) prices would never come down drastically if at all because of the same argument made by the OP (people need a place to live). I disagreed and told him that prices will go down when people stop buying (or can't afford to buy). I believe it will happen again.
Might want to define prices going down. Would that be prices going down against a hard asset like gold, or going down against a currency like the USD?

I think one needs to account for the dynamic buying power of a currency when auditing single family home price trends.
 
I remember in 2008, 2009, 2010 and mostly 2011, you could buy as many 1 br/1ba condos on the water in Florida for about $65-70k as you wanted. 2br/2ba were about $90k. I remember seeing older, smaller houses on Gulf Front beach property on Longboat Key FL in 2009, 2010, 2011 going for $250-275k.

Today, those condos are bringing $500-800k and those waterfront properties on Longboat are bringing $1.5M-2M and are "tear downs".


The thing is, in 2009, 2010, 2011, most of us were glad to have a job to pay our primary mortgage, a small car payment and buy groceries.

I'm 52 and re-arranging our investment monies. I've got stock market fatigue. I will be investing in residential real estate. I fully agree with many others, it will forever have value that increases.
In 2004 I finally got my head enought above water and 20% to buy our first house. Then 2008 hit. I was laid off (bottom of the ladder). I got another job but for a smaller competitor but got to start over. Then my wife got laid off in 2009 and we had to relocate for her. We rented out our now zero equity house and rented a dump where we moved. We moved a couple more times. In 2014 I had recovered enough to sell our rental and buy the place we live now.

The last 10 years have been good to us, so I hope to now buy another property. Although I am likely selling this one and will replace it elsewhere. All the transactions are going to kill me. And I am not sacrificing so someone else can live here as was suggested.
 
Might want to define prices going down. Would that be prices going down against a hard asset like gold, or going down against a currency like the USD?

I think one needs to account for the dynamic buying power of a currency when auditing single family home price trends.
I agree the buying power of the once mighty dollar is in the toilet but still....a $500 or 600K mortgage for a young couple making maybe $140K between them (and a wife eventually having children thus dropping the income) is hard to handle especially with ever rising costs for everything else. Is it any wonder that working couples are having smaller families while those on 'public assistance' seem to be having more kids.....not a recipe for a good future IMO.
 
I used to work in tech at a Fortune 100, and occasionally the HR team would have us tech leads do some recruiting at a fairly prestigious local STEM school.

I grew up relatively poor with two working parents struggling to make ends meet. I got my first job at 14 and worked continuously multiple jobs through college in order to pay my own tuition 100% myself. I got good grades and went to a good state university which was still within top 40 in the country. I could never have any internships because I had to earn money in the summers. I graduated and moved on to get a postgraduate degree at another state school (payed for by being a TA) before getting hired into this Fortune 100 and getting promoted into management within 3 years.

Fast forward to recruiting. You’d be amazed by how many of these entitled, bratty, egotistical little college seniors have literally never had a real job before. No paper routes, no fast food job, nothing. A few had unpaid internships that seemed more like school than actual work.

I was so struck by their arrogance and their pushiness. The interviewees were selected by HR beforehand and the lists were handled by staff at the college. These kids would lie and try to get on the list or try to tell me to interview them off the record. They’d accost me and treat me like as if I clearly didn’t know what I was doing if they weren’t on my list. News flash, I’m the tech manager and I didn’t make the list, and by treating me like this you just got black listed. It was something else.

None of them, bar maybe one or two exceptions (whom I recommended for hire), had had to “scrap.” It was so eye-opening how entitled and privileged some of these kids are. I now look for evidence for being hard working, being able to deal with adversity, treating people equally, and being self-sufficient whenever I’m involved in the hiring process.


I hear ya, brother. I grew up very poor, too. If I wanted a new Matchbox car or fishing lure when I was a young'un, I went out and collected Coke bottles on the sides of the roads to take to the grocery store when my mother went so I could cash in those refundable, glass bottles. Finding a 32 oz bottle was like finding gold. Those were worth 25 cents.

I mowed a few yards during the summers (thank goodness summer was from April through October in south Alabama) starting about age 9 for some money. I carried the groceries in and garbage out for a quarter for a few old ladies. Rake pinestraw in the winter. Swept up the showroom and cleaned the bathrooms when I was 11-12 years old at a nearby boat dealer/service center. Worked at a farmer's market during the summer when I was 15 and saved up enough money to get contact lenses because I didn't want to wear glasses anymore. I've been wearing contacts now for 37 years.

I've never been unemployed a single day since I started working a W-2 job at the age of 17 in a grocery store. For many of those years from 17 up through my late 20's, some early 30's, I had two jobs. I have been employed at a full-time position since I was 20 years old, still going to a technical college. I don't have a 4-year degree and I am proud of where I'm at today.

I don't know what to think to see what I consider middle-middle class families spending $4-8k on freshman dorm-room decorations for their 18 year old kid. Now I hear the big thing is RENTING clothing for their kids to go to a college football game. There's evidently several new businesses that rent formal attire (on a subscription basis) to these kids parents where they can be dressed to the nines for a 3-1/2 hour football game. This is in addition to the cost of college, which is a minimum of $100k today when you combine tuition, living expenses, vehicle costs, insurance, spending money, food, etc. Many of these college kids will spend $500-600 each weekend on stuff (beer/alcohol/drugs, food, clothing, etc.).

These kids have never worked a day in their life and let's be honest, their parent's can't really afford this lifestyle for their kids, either.

When these kids finally graduate, it's more than likely in some field that isn't going to pay for their lifestyle they were living in college, much less what it would take for them to live on their own, they have zero work experience and really no life skills. This is multiplied by the hundreds of thousands across the country each year.
 
I’m surprised that this type of housing has not taken off here. Six hours to put up a house.




In this video you see that these homes are not cracker boxes.

 
In 2004 I finally got my head enought above water and 20% to buy our first house. Then 2008 hit. I was laid off (bottom of the ladder). I got another job but for a smaller competitor but got to start over. Then my wife got laid off in 2009 and we had to relocate for her. We rented out our now zero equity house and rented a dump where we moved. We moved a couple more times. In 2014 I had recovered enough to sell our rental and buy the place we live now.

The last 10 years have been good to us, so I hope to now buy another property. Although I am likely selling this one and will replace it elsewhere. All the transactions are going to kill me. And I am not sacrificing so someone else can live here as was suggested.

I have a similar story -

I had built a house in 1996, met a girl in 2000, got married, added on in 2002. In 2006 I took a job nearly 3 hours away, the wife and kids stayed behind until we could sell that house and move to where my new job was. Well, it didn't sell. She ended up wanting a divorce, was seeing someone else while I was gone. I got her to sign the papers quickly because she wanted out, I let her stay in the house another 4 months and then I made up a story that I had a buyer for the house and she needed to get out. She had been letting her sister stay there also, it was trashed. Got it cleaned up, met my now wife and we would drive over on the weekends and see my daughter. We did that for years and in 2013 we started a process to get it ready to put back on the market. New paint throughout, new carpet, some new cheap flooring, etc. Took 180 days to get an offer and it sold, we had to write a $3,000 check at closing to satisfy the mortgage shortfall from the sale price. My RE agent even took it easy on my with a reduced fee AND she paid a handyman to put in some handrail on a stair that I never got around to.

We also had a house in the north Atlanta suburbs, moved out of it 6 months later, took 6 months to get it ready to sell, sold it the first day on the market. Location, Location, Location. We bought the current house and property in 2015, never thought I'd live in a house/on a property for what we paid for it and it's value has almost doubled. I finally feel like something has gone my way in life.
 
Exactly what I was thinking. If I were in high school today, I'd want to see what I need to do to become a real estate developer, since that's where the money is.
Engineer works, I asked a successful real estate developer and he said civil engineering would have been his choice of major for line of work. He majored in finance which helps but deeper understanding for permits, structural design, roads and soils would have helped .
 
I had a conversation with a co-worker back around 2005 or 2006 where he stated that real estate (home) prices would never come down drastically if at all because of the same argument made by the OP (people need a place to live). I disagreed and told him that prices will go down when people stop buying (or can't afford to buy). I believe it will happen again.
Might want to define prices going down. Would that be prices going down against a hard asset like gold, or going down against a currency like the USD?

I think one needs to account for the dynamic buying power of a currency when auditing single family home price trends.
Yeah, Im lost on this one.
Best advice for anyone. If you want to buy a home, and need a home to live buy it!
Why even question what is the right time? I can answer that, people love to talk, analyze. But that thinking is dead wrong with real estate.
If you want to speculate, instead of speculating on a roof over your head, buy the home and speculate in the stock market.
You will always get the housing market wrong. If you bought a home in 2006 like we did, the value was close to double many years later.
Why would you wait? For what? If you are that good to know the market, buy the home and invest in the stock market, with the profits you can pay off the home. :whistle: Never happen, EXCEPT like anything in life, roll of the dice, some will win but it's nothing more than speculation.

You need a home, buy a home, it will be worth more in 10 years even if the market crashed. IN the meantime you will have built up equity in your home, reduced your mortgage (if you were smart) and again, if you're that good, put your spare money into the stock market too.
One thing for sure, you will either be right advising someone to buy a home or you will be wrong, flip a coin, see where it lands. It's not rocket science, giving home buying advice is just plain old luck.
 
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I agree the buying power of the once mighty dollar is in the toilet but still....a $500 or 600K mortgage for a young couple making maybe $140K between them (and a wife eventually having children thus dropping the income) is hard to handle especially with ever rising costs for everything else. Is it any wonder that working couples are having smaller families while those on 'public assistance' seem to be having more kids.....not a recipe for a good future IMO.
I can save any young couple hundreds of dollars a month that older people didnt have when they bought a home.

Trash the expensive cell phones and plan, Walmart or Redpocket service on a cheap phone.
No PAY TV, no Sports Package. Subscription to maybe Netflex
NO music Subscription
No cars over $10,000, No Jet Skis, Boats, Motorcycles
No eating out, cook at home, one night a week date night followed by a movie at home
Clothes from Old Navy, TJ Max, Marshalls
No Furniture except for the very basic stuff.
No Credit card loans
Buy a very small house that needs work

Life has never been more easy in the USA, never, ever. The only reason home prices are what they are is other people know how to save and capable of buying one or else they wouldnt be able too.
 
I can save any young couple hundreds of dollars a month that older people didnt have when they bought a home.

Trash the expensive cell phones and plan, Walmart or Redpocket service on a cheap phone.
No PAY TV, no Sports Package. Subscription to maybe Netflex
NO music Subscription
No cars over $10,000, No Jet Skis, Boats, Motorcycles
No eating out, cook at home, one night a week date night followed by a movie at home
Clothes from Old Navy, TJ Max, Marshalls
No Furniture except for the very basic stuff.
No Credit card loans
Buy a very small house that needs work

Life has never been more easy in the USA, never, ever. The only reason home prices are what they are is other people know how to save and capable of buying one or else they wouldnt be able too.


It’s basically wants over needs when it should be the other way around. Young people are woefully unprepared for adult life.
 
It’s basically wants over needs when it should be the other way around. Young people are woefully unprepared for adult life.
A car salesman will go hungry if he sells a car based on needs. The salesman knows to make the sale, sell the buyer what he wants, not what he needs.

Reality.....
 
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I car salesman will go hungry if he sells a car based on needs. The salesman knows to make the sale, sell the buyer what he wants, not what he needs.

Reality.....


True and the buyer should know that the salesman is not his friend going in.
 
I can save any young couple hundreds of dollars a month that older people didnt have when they bought a home.

Trash the expensive cell phones and plan, Walmart or Redpocket service on a cheap phone.
No PAY TV, no Sports Package. Subscription to maybe Netflex
NO music Subscription
No cars over $10,000, No Jet Skis, Boats, Motorcycles
No eating out, cook at home, one night a week date night followed by a movie at home
Clothes from Old Navy, TJ Max, Marshalls
No Furniture except for the very basic stuff.
No Credit card loans
Buy a very small house that needs work

Life has never been more easy in the USA, never, ever. The only reason home prices are what they are is other people know how to save and capable of buying one or else they wouldnt be able too.
Well, I made up my mind to buy the worst home in a top area. Worked out pretty well, even with all my mistakes.
 
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