Home Culture Generation Y: Why We Rent When We Could Buy

Generation Y: Why We Rent When We Could Buy

I can wait.

The homie WisdomIsMisery pointed an article on Huffington Post my way the other day that was really intriguing. This article discusses the fallout of Millennials (Generation Y or ppl born from mid 1970s-early 1990s) choosing to rent rather than buy homes, and the potential trickle down effect this has on our economy. I found this article interesting because I’m a part of Generation Y and I don’t own a home and neither do most of my peers. I’m 30 years old and I’ve rented my entire life. 40 years ago, I would have been an anomaly as most men my age would have owned a home, been married and would have had a couple of children.

Burdened by $1 trillion in student loan debt and wary of taking on a new loan with a home mortgage, millennials are choosing to rent or move back in with their parents. …… Pierre Lapointe, a financial strategist, says student-loan debt is turning into “a significant drag on the housing market.”

I remember when I graduated from undergrad I moved back home for about three months before I got an apartment with one of my line brothers and a college friend. Although when I stepped foot off my college campus and had zero debt, buying a house was the furthest thing from my mind. My reasoning was a home/mortgage was a 30-year commitment that I wasn’t ready to make. You think it’s hard for a man to commit to a woman? Try mortgage and buyer’s remorse. I know plenty of people who moved back home after college to stack bread so they could make power moves. Perhaps it’s coincidence that most of my friends who went that route were also 1st generation foreigners, but that’s another post in itself.

“My subjective experience is that when people buy a house,” Dan Ariely, a professor of psychology and behavioral economics at Duke University, tells MPR, “they immediately start renovating and fixing it — going on Sunday afternoon to Home Depot, doing things that I think people would never do for houses that they rent.”

Now this is where I disagree with the author. From the outside looking in, most people who own homes tend to be more fiscally responsible. They’re committed to a home, which is something that you have to keep investing in. The hot water heater goes out and you just can’t call the super or rental management to come fix it. It’s the homeowner’s responsibility. That said, people who rent spend more money in the long run (on rent) but sometimes they may have more extra short-term disposable income. More disposable income to be pipelined directly back into the economy in terms of retail sales.

They’re not only putting off buying a home, but they’re choosing to get married and have children later in life as well. Comparing U.S. Census Bureau data, millennials are getting married at half the rate their parents’ generation did.

Now this is where the article gets interesting. I’m definitely not married and I don’t have any children (that I know of). I put that off in pursuit of higher education and self-betterment. I’m not alone in this aspect. Most of my classmates are single and childless, men and women alike. My mother had five children and her mother had five children. Adoption aside I’ll probably have no more than two children and I’m ok with that. Generation Y is probably the first generation where there are subsets of the population who choose education over children. The general consensus is that buying a home is an investment and I don’t doubt that, but I won’t be buying one until I get married at least and definitely when I start having children.

See Also:  The verified twitter account, the VIP of the online world?

Are you a homeowner? If so, do you think you purchased at the right time? If not, do you plan on purchasing a home in the near future? If you are married or have children, do you own a home or do you rent? How did you make your decision?


  1. Great Post!
    I bought a home 2 years ago. I'm 32, single with no kids. I'm blessed to owe less than 20k after three degrees thanks to partial scholarships. I think generation y folks who can manage a both a mortgage and a monthly student loan payment definitely should. Prices for homes are at an all time low. Once the market picks up my plans are to sell my house at a profit and by my dream home. In the main time, I take pride in being a homeowner. Nothing says, "I'm getting my grown man on." like coming to your own home at the end of the day.
    I'm also considering investment property.

  2. I’m 28, no kids, own a co-op. I decided to do it because I was done with my student loans, almost done with my car loan and felt the need to pay someone some large amount of money each month. Lol. Not quite. It just so happens that in my area the price of renting a 2 bedroom apt was more than paying monthly loan and maintenance. So it made more financial sense. I haven’t regretted it at all.

  3. I'm zooming in on the fact that you chose education over a family. To me, it realistically seems like either or. You can have the ideal family or your ideal education and career and personally? I would choose to raise a large, happy family over furthering my education and advancing in my career. In a heartbeat. I've had it pretty good depending on how you look at it. I think I have less than five thousand bucks in debt, I make pretty good money, all the potential in the world. Going up to a Master's and pursuing a PhD (eventually) as well as going into Politics (hopefully becoming a United States Senator) is my fall back plan. The last resort at that.

    1. Buying a home for me is something I planned to do with my husband in about 5-7 years. Somewhere in our early thirties after we've popped out a child and gotten pregnant again and then we'd just get one large enough to suit whatever amount of children we choose to have. I'm not sure I have it in me to put career over that. It feels inherently wrong. I couldn't imagine life any other way than how I planned it. 5 year plan. 10 year plan. Huge gap. Retirement. Even if I had the money I wouldn't buy a home unless it was with my husband and it was specifically to raise our children. This was a beautifully timed post for me, Tunde. It'll likely make me resolute.

    2. let me state that choosing an education over family is not something i consciously set out to do. it just happened. i went to school 11 years post-high school and in the type of field i was in marriage just wasn't on my radar. also, looking back at how my parents struggled to make ends meet because of so many kids and not nearly enough education.
      My recent post Take Me Back to 1953

      1. I totally agree bro. I did 8 years of post-high school and did it because I didn't want to struggle or atleast have the means to do as I please. Best decision I ever made. Education is one thing that can't be take away from you.

      2. I hear you. As a man though, a decision like that is almost for the best because when you choose to get married you can actually afford to raise your family however large you choose to have one. From the female perspective, working like that? Who's gonna be raising my kids? They get their nurturing from someone else? I don't wanna leave such a vital task in life to another woman so I almost have to ensure I make my partner successful which in and of itself is risky. *You* chose to be successful. No one told you why you have to be. I have to tell a man…this is what you need to do because *I* want five children and I want our lives comfortable while raising them and I want them to have access to good education. lol. No. Men have their own lives and ideals.

      3. @ parker

        Why are you guys still single? Not even trying to be funny or anything, I just don't understand why family never developed. Like. My cousin married a doctor. They had five or six children and she homeschooled all of them and they're like prodigal children and everything is peachy perfect, of course with life's obstacles and what have you, the overall cheesiness of it though is pretty up there. I don't understand how come guys like you two are still single. I used to think all relationships with men on the upper tier of education/career were "I work"…"you raise kids". Cuz that's how I was raised and that's all I've seen in my lifetime.

        …..but apparently in the real world it's completely different.

        1. Maybe you guys should realize the mindblowing amount of education you have and take a step back to relish your accomplishments and look for a suitable mate. I don't mean to impose I'm kind of excited for you guys though cuz I've seen how that turns out for men. Just my two cents, I think if you guys leveled out, found a woman, you could pick your careers back up but then you'd be able to continue together as partners. Like WIM said, work together as co-dependents.

        2. depends on your definition of single. i'm technically single because i'm not married. i'm not married because i want to wait for the right time in my life. meaning i can support a family if need be. not saying that i couldn't be married now and work towards that goal at the same time but i've learned a lot about marriages from my parents and i've gravely scared of making a lot of the same mistakes that they did.
          My recent post Take Me Back to 1953

        3. Tunde???

          I sure hope WIM writes that post on black men and women supporting one another because that broke my heart. But I did catch the pride and confidence in that comment though lmao. +1

  4. I am not married, no kids, and would not buy a home until I get married, not because it doesn't make financial sense, but it's just too big a responsibility for lil ol me. Besides, I live in So Cal and I would have to make a substantial amount of money to purchase a home that suits my standards. I'd consider purchasing a condo since HOAs take care of some of the maintenance involved in owning a home, but other than that, renting is the best option for me right now as a single lady.

  5. Excellent post! I'm a recent college graduate — literally, I just graduated last month — and I have no intentions on purchasing a home until I'm married and preparing to have children. It's a financial burden and commitment that I'm unwilling to make until I'm in a position where a house is beneficial. In the meantime, after I finish my graduate studies and while beginning my Ph.D., I will purchase a condo. A lot of the same responsibilities at half of the cost.

  6. We bought our first home when we were 20 (8 years ago). We liked the idea of owning since it meant that what we paid to every month would build up our assets instead of somebody else's. There was some kind of program that we did that made it to where we didn't have to make a down payment. We were also kind of disenchanted with renting by then because we had just gone around four months without a working stove. Also our mortgage was a little bit cheaper at around $410 a month. We only lived in that house for two years though before we moved across the country. Then we endured the headache of living five years in apartments. Again we ran into the same issue of having stuff fixed within a timely manner or having it fixed correctly (in two different complexes). Last year, we built our current home and I don't miss that apartment life one bit. Ultimately, I'd like to own a few properties and rent them out.
    Why do you have to wait til your married though? Can't you just buy something small for yourself? What if you never marry? You'll just rent forever?

    1. Why do you have to wait til your married though? Can't you just buy something small for yourself?

      i wrote towards the bottom of the comments but i'll state it here too. the city in which i went to school i had no desire in being tied to in the event i couldn't sell my home. now? i live in nyc there is no such thing as something small. i want a home with a yard and that ain't happening in harlem. i'm also not paying 500K+ for a condo.

      What if you never marry? You'll just rent forever?

      oh i'm getting married. i'm not worried about that one bit.
      My recent post Take Me Back to 1953

      1. I said that, too once, lol…

        Honestly, since I am at the cusp of X & Y I grew up with the values of home ownership, just not the fire under my ass. I really don't see the point anymore as the average homeowner only lives in each house 7.5 years. Why would I tack on all the expenses for something I'm only doing for a few years anyway? If I own, it will likely be a condo or cooperative (even if it's a townhouse or separate housing unit), where at least some of my housing expenses are shared, deferred, or rewarded.

        1. Besides, a lot of us are doing it backwards. Our Yte counterparts are still marrying and owning homes earlier. And while we may consider ourselves 'smart' for deferring big life transitions in the pursuit of education, we are also guaranteeing we will retire later, because we are effectively spreading out our debt over a larger period, and paying it down with only one income. I have friends that married before grad school, and watch them immediately bear down & make a plan to pay down debt, increase their education & make moves. We're the same age, but I live in an apartment and am still payining loan debt while they have a house, more education and are financially ready for children. So it could go either way.

        2. I agree – but I don't know why that is. Maybe it's just cultural or some other systemic issues that disproportionately affect blacks (and minorities) that cause us to put of major purchases, marriage, etc. However, I think it's cultural because I have noticed my Caucasian homies were QUICK to get married regardless of their status in life (most had more debt than myself). I've observed this time and time, again. They stay getting married in that mid-20s range in most cases. Whereas, I only have one married black friend. There's a blog here somewhere…

          *goes to the blog cave*

        3. I agree, that culturally most minorities do put off major decisions, but I will also say I think it is a regional thing also. I have plenty of married friends (black) who took vows in their mid 20's and are doing great, but they all live in the south. Most of my friends in the DC metro area who are married either came from a 2 parent home or were raised by parents who were from the south so it was engraved at an early age that marriage is a part of adulthood.

        4. That's a good point and I agree that it's a regional thing. I don't know a lot of single people but I know several couples who were married and owned houses and did so before their late twenties.

        5. I'm from Texas, so I'm not sure how much further South we can get. lol However, I do get your point about priorities. Down South, whether it occurs or not, marriage isn't particularly frowned upon. Also, if I hadn't moved, I would likely be married myself. Regional or not, I do see other races predominately marrying earlier. This is also the case statistically. I have a few theories as to why but I'll hold those for a full write-up.

        6. I actually believe it is a combination of all three factors. Think about the building blocks of adulthood/finances/etc that are taught to minorities, vs what is taught to others. They are given tools that we just didn't become familiar with until recently, and one of them is to get the debt of becoming an adult paid down as early as possible into adulthood. We are taught to be 'completely ready' in materialistic terms before we marry, whereas they are taught to be emotionally ready and pick a mate they can grow with for all the external stuff. I just read some relationship article that stated the #1 reason males were with their mate was because she was "with them when they had nothing". I immediately thought this couldn't have been polled around minorities.
          Just throwing out thoughts.

        7. IDK, nobody taught us sh*t and we still valued owning a home at a young age. We did think buying early meant paying it off early, that we wouldn't be carrying a mortgage into our old age if we kept it for the full thirty years. My husband's parents rented a house for almost twenty years. If they would've bought that house, it would've almost been paid off but they waited til their late fifties to buy a home. Just seems backward to me.
          I, too, have heard the whole "she was with me when I had nothing" sentiment. I thought it was odd when I started reading some of these blogs and folks are like I'm going to stack paper first. You'll stack more as a team.

        8. I agree. It goes both ways. I'll expand on this later – and I'm sure it won't be a popular opinion. The reason I say it goes both ways is because while the focus is mainly on why black men don't marry, I'm also not sure our better-halfs are as willing to grow with us, either. I AM NOT SAYING THIS IS A BAD THING OR ANYONE'S FAULT! (as you can see, I'm not in the mood to fight today lol).

          I'm simply saying the issues that affect black men, also affect black women – and both "suffer" indirectly as a result. Most times we try to point fingers and prescribe who is more at fault instead of realizing we're on the same team and ideally working towards the same goal. In practice though, it feels like we seem to think we have to step on top of one another in order to reach the mountain top. I'm perfectly willing to work together to get there – but not if you keep slapping my hand away until I'm at a position to pull you up (or vise versa). Basically, more and more, both sexes seem to believe they have to do everything independently instead of co-dependently because, for whatever reason, the latter shows "weakness" in our community.

        9. "The reason I say it goes both ways is because while the focus is mainly on why black men don't marry, I'm also not sure our better-halfs are as willing to grow with us, either."

          I've been waiting on THIS post for a min, WIM, lol. You better not be bluffing…

        10. I'm scared because if I don't artfully Picasso that piece together I'm going to get my head caved in by #thewomen…. maybe I'll Ghost Write it but get Most to publish it LMAO

        11. LMBO!

          Or, I could…uh…proofread it for you…you know, while you're deciding whether or not to publish it for the masses to see…


        12. @ Amaris

          Do you know how much flack I got growing up because not only was I raised Christian, I was raised uber traditional in the sense of marriage/mating. Even now I look at men as a combonation of morals and values and rarely, if ever, do I even think about the material things because…I swear my dad had a chip implanted in my head where everything I touch turns to gold. To me — find a mate. Prosperity will come eventually.

          @ Krys
          That happens sometimes. Figuring things out on your own just by emotionally navigating and relying on instincts. It may not have been taught but you know what feels right and you and your husband can make decisions based on that.

        13. Wis i think there are a lot of reasons why black Americans don't marry right away.
          Won't go into them now, but that should be a topic. The reasons lies with men and they are who you should ask. Bottom line, if a woman is never proposed to then she will never get married. Not really something she can totally control, (beyond changing herself to make herself the type of woman some man will want to marry, or settling). All a man has to do is propose. Finding the right woman is a non-issue because men have said on SBM that they were with "perfect women" at one time or another, and it wasn't anything wrong with the woman, it was just the timing wasn't right for them.

        14. One opinion I do have about men some brotha's delaying marriage is that I don't think it's a real priority at all. They aren't pressed about how soon it happens and when, like women are.
          But like I said especially here in the DMV I know lots of successful young brotha's making power moves and owning homes and all that. But marriage is a whole nother thing and it's not necessarily the main thing for them, and thats alright. When a man is pushed to marry and take on that level of responsibility before he is ready it's disastrous. Many women find that out the hard way.

    2. "Why do you have to wait til you're married though? Can't you just buy something small for yourself?"

      I've considered that quite a bit. I don't wanna be alone though. The world is harsh, especially the culture shock for me. I don't like being a female out in the world by myself not really knowing what's going on I don't feel a sense of security OR safety and on top of that, having a house or awesome material things for myself was never a goal in my life; living alone with really nice clothes and stuff just doesn't appeal to me in any other way besides being able to say "hey look at what I did…*soul-less, happy-less smile*"

      1. That's cool. Everybody's goals aren't the same but I was curious about it. I've never lived alone so I don't know if I would've taken the plunge into home ownership by myself either, especially at the age I did. I think if I had gotten a little bit older and depending on my job situation, I would've considered it though.

  7. my husband and i brought out house at 30 & 32. everything i prayed for and dreamed it would be 5bed, 2bath on .5 acre. Turned out it was the biggest heartache and headache of our lives. mortgage, taxes (property, school, borough, township, county, trash, water, etc) maintenance including house insurance (something always need fixing or buying) ugh..utilities(heat, water, electric, cable)..we said bye to our twice yrly vacations (1 with kids, 1 with us). oh lets not forget the food bill including our cat and parakeet (hubby loves steak & salmon-no ground chuck for him). and lastly the outside maintenance – flowers, tree maintenance, snow blower, lawnmower, etc.
    Now we had many years of good life before it became HEAVY! many days of pool parties, bbq, family reunion but we argued alot of so many things. too numerous for this blog. it almost destroy our peace and marriage.
    i can now say we have downsized and i no longer buy into the "american dream". it was never mine. fairy tales belongs in the books and movies. you all can have it.

      1. no we both have good jobs. as i listed above, homeownership is more than just paying the bank. there are many more cost associated with it.

        1. I only asked because you made it seem like suddenly those things became a problem after some years. I figured you left something out. My bad.

  8. I still rent. I'm single with no kids and in my early 30's. I'm now looking into getting a townhouse. Main reason why I'm ok with getting a townhouse is because the rent for a lot of aptmnts in MD & DC (especially Mont County) where I live, is comparable to a house. I would be paying the same or a little less and building equity and building up my credit. So now is a good time for me.
    Only reason why I didn't get a house before was because as a single woman I wasn't tryin to mow no lawns and cut grass and I'm not that handy with fixing a lot of stuff in the house and from what I was told that can get costly. A lot of people will read books and take classes and become home improvement experts themselves to save money. I have no student loans, just my monthly bills. By next year this time I'll have my townhouse….*smile* I can deal with a small 2 bedroom townhouse. Plus personally I never wanted to be in a big house all by myself. Don't laugh – but I get scared at nite….lol

    1. "Main reason why I'm ok with getting a townhouse is because the rent for a lot of aptmnts in MD & DC (especially Mont County) where I live, is comparable to a house."

      GIRL! You ain't even lyin!!! smh…

      I live in MD and currently pay $1200 in rent BY MYSELF for an apartment (2bd/2 full baths)…the mortgage on the townhouse I sold in '06 was $1179 (after refinancing…it was $900). One of my top 5 regrets is selling that house, smh…

      1. I know cyn…..it's crazy…it's like that in Philly where I'm from too.
        That's why if u can find a nice townhouse u may as well just get it and enjoy it.
        I also plan to have rental properties to make extra income.
        Location makes a huge difference too. Here if u wanna live in a nice area with low crime rates that's fairly safe it will cost you.

      2. And the only reason I'm not getting a Condo is because Condo fee's are pretty costly and they have a lot of crazy rules and regulations, from what my friends with Condo's tell me, and they are harder to sell and/or rent out when you want to. Plus taxes.
        One thing I don't think a lot of people do, but I plan to do is figure your total cost per month or year.
        Total cost meaning – Mortgage, plus any homeowners assoc fees or Condo fees and Taxes; and not just property tax but school tax and city tax as well. When you add all that together it can up your payments a lot.

  9. I think personally buying is a better option, but as with any major life decision it should be well thought out and planned and you should make sure you can afford it long-term. You should also be sure it's the best thing for you, despite what others tell you because it's your life and you will have to pay the mortgage and deal with the responsibilities of a house.
    I don't want the responsibilities of a big 3 bedroom house with a yard while I'm single and childless and there is not a need for it for me personally. I will get a nice size house when I'm married. I've just never seen the need for a huge house if it's not a necessity, just to say you live in a 5 bedroom mansion. Even if I was a millionaire I would never buy a mansion unless I had a lotta kids like Angela & Brad….lol Even then it would be big enough for all of us, but not immensely big for no real reason.
    I actually know several single & childless men or men with only 1 kid with a fairly nice size 2 or 3 bedroom house. I think particularly Americans think of it as a huge milestone and sign of maturity if your a homeowner. It's like part of the whole American Dream type thing.
    Tunde, do what you feel is best for you. If you don't want the responsibilities of a house right now and don't want a house until you have a wife and potentially children then that's fine. Nobody can tell you what is best for you. Obviously you have your reasons for doing things the way you have chosen to. This will probably work well for you because these were your decisions. Just because other folks tell you to do things that work well for them, doesn't necessarily mean they will work well for you.
    I think your a smart and responsible guy doing what u know will work well for you.

  10. Tunde the other thing some people don't think about is location is Everything. The city/state you live in makes a huge different. Some cities and states are more conducive to homeowners, while others the advantage is moreso for renters. Something that you have to take your time and research.

    1. The responsrble ones who are putting off kids until they find careers/serious relationships are the types that SHOULD be having kids, getting married and buying houses. Perhaps we are too smart for our own good. After the mortgage crisis, seeing peers going thru it with BMs, and the current state of relationships; I can’t see myself having kids out of wedlock, marrying someone until i know im ready or signing a mortgage unless i know i can pay even on a rainy day. Until then i’m where i am today, unmarried, no kids and a nice lil apartment 30 minutes out of the city.

      1. Yup! BMs can definitely put a hamper on a brother. I have homeboys who tell me everyday, man don't get a girl pregnant that you don't see being with or let alone getting married to. Having to deal with child support has caused many to wait on making purchases because financially, it can be draining. I am definitely waiting to get married before having kids.

      2. Yall are a trip with these opinions on the type of people who should get married and have kids.
        Just cause folks are financially responsible and get degrees cause they wanna have good jobs and be successful and make a lotta money does Not mean they will be great parents and be great spouses. Some of the most wealthy and successful people are horrible spouses and are divorced and not spending enough time with their kids to really nurture them and raise them well because they are working all the time to make the money they need to make to keep up their expensive lifestyles.

    2. idk why my first comment replied to u…but anyway i agree with your location argument. Buying a house in Boston or any big metropolitan city is much different than say buying in the South.

    3. Yeah, location is definitely key. In NC or SC, 300K can get you a mini-mansion with some land. I am single and live in the DMV also and I plan to purchase something small within the next year in the DMV. I look at it as an investment because since this is the nation's capitol, there will always be people moving to this area. Plus, the amount of money I can make after selling, you can go down south and actually have your dream home built.

    4. Yeah location does count. I live in Alabama and pay 710 for my mortgage and with taxes and insurance added on its only 875 for a modest 3 bedroom. Here a really nice 2 bedroom apartment will cost you 900 or better so it's better off to buy a home.

  11. Good post! Our generation's loyalty to renting is definitely a topic that needs to be addressed.

    I graduated from undergrad not too long ago. I have the luxury of living at home. I say "luxury" because most people don't see living with your parents as a luxury, lol. And some people don't have that option. But the money that I've been able to save is…. Wow. I'm saving up for a down payment on a property. Hopefully, in two years I'll be able to buy.

    I've always been taught that ownership is the only way too wealth. I see my friends and family dig themselves into so much debt with renting. So, I hope to own all of my major purchases, housing included.

    The hardest part of my plan is the delay of gratification. It's not easy, I want to move and get my own space on a semi-weekly basis, so I totally see both sides of the coin. A lot of my peers don't really "see" my plan. "Don't you want to move?" "Don't you get sick of your parents?" They tend to not see my vision.

    I guess the moral of my story I've made the decision to save up and start investing in assets ASAP. I hope my plan goes well and I don't have buyers remorse. That seems to be sooo prevalent.

    My recent post My Thoughts on #BWB2012

    1. I total agree. Living at home is a luxury. Even though my parents and siblings get on my nerves at times, at least I have a place to come to while I figure things out (student loans, career, etc…).

      I live in New York so for the most part people have apartments until they get married and have kids. I’ll probably start off with a condo, and then upgrade. Eventually when I do have kids I would like us to have a house. But I’ll probably move out of NY and go down south.

      I would suggest to people who are single, well into their career and are planning to get married and want to have kids or newlyweds with no children to buy a house or own some piece of property before you have kids. Once you start adding other people into the picture getting house (or at least the house you really want) becomes a little harder.

      1. You mean that's not normal??

        I thought everyone did that all my friends do it. They wanna live in these nice places in the city around their campuses so they use credit cards/loans/stack loans on top of credit cards just to have a nice place to socialize and throw a party and keep up with stuff to go out to dinners etc. etc.. And then *I* become the bassackwards one thinking they're too ridiculous to call friends while I'm attempting to get my life together. I thought it was normal but it seems like more people are saying they're a lot more financially responsible than that going through the comments. Paying for things with ACTUAL money that you ACTUALLY have and staying within those means is definitely the way to go.

  12. It's totally geographic. My wife is from Memphis, and according to her it's almost unheard of not to own after college if you are solidly middle class. In the Northern NJ / NY metro area I grew up in, it's the exact opposite. I have very few friends from there that have bought, even those that we married. It's just different culturally and financially.

    The down payment is the biggest deal to me. Even if you graduate with to debt, you still have to save up a good chunk of money. Even the 3.5% required by programs like FHA can be daunting. A lot of folks were able to get around that with the "creative" mortgages of a few years back, but that played a huge part in the housing crisis we have now.

    Also, the emergency fund required for a house is no joke. Soon after we bought, with a clean inspection record, we had major roof problems that would have mired us on debt if we didn't have the cash on hand.
    My recent post Twitter Impact: From Academia to the Everyday Citizen

  13. i'd like to add that i went to grad school in nashville where they had great first time home buyer options and it was a buyer's market. there were a couple of ppl i knew who bought homes while they were in school and their line was always the same "i pay about the same in my mortgage that you pay in rent and its an investment." my thing was that i don't want to be tied to nashville. when it came time to leave nashville a lot of those people couldn't sell their homes. that's another reason why i won't buy a home now. i want to make sure i'll be in that city for an extended period of time (10+ years).
    My recent post Take Me Back to 1953

        1. I observe that most people don't pass on houses to their children anymore. Some families are so spread out nowadays. This is why rental property mangers are a big business now.

          Auction sales are real. Those are the properties people fail to pay real estate taxes on. If anyone is interested in buying, look those up…..you can really come up that way.

        2. "I observe that most people don't pass on houses to their children anymore. Some families are so spread out nowadays."

          I was talking to a friend about this a while ago. She bought an older home in an older neighborhood. She noticed that when the parents died, they'd pass their homes on but the kids don't care, they sell off the stuff and the house like it's nothing. I hope to pass mine on to one of my kids. I think there's a disconnect with teaching the kids the value of it. My grandparents haven't passed but when they bought a new home, they kept up with the old one and passed it on to their daughter when she was old enough. That woman has been living there with her family for over thirty years. Can you imagine no rent or mortgage payment ever? Must be nice.

    1. " i want to make sure i'll be in that city for an extended period of time (10+ years)." Great point Tunde…..this is the other reason why I delayed buying a house for so long. Wanted to be sure I was going to be able to commit to it for the long haul.

  14. I'm 27 years old, childless and single. I'm leaving my apartment in July to move back home with my parents. The goal is to stack my cash and from there buy a home. When I graduated college five years ago, I stayed home for about a year and didnt save one cent. I wasnt paying rent or anything. At the time didnt realize all the expenses needed to live on my own. Looking back I wish I would have stayed home as long as possible, could have been completely debt free and in a home by now. I dont have much debt now less than 8000 in student loans and a year on my car, no credit card debt. I tell my niece who is in college all the time, dont be so quick to wont to move out of your mom house. At that age you just dont realize how good you got it.

  15. My parents helped me buy a house in college after the market crashed, and it was an excellent investment. With roommates my total living expenses are around $200. With my living expenses so low, I am able to save a lot of money even though I haven't graduated yet, and I will be buying an investment property soon. With prices still bottoming out and interest rates almost unheard of, right now is the right time to invest. Delay that gratification, buy the house you need, not what you want, and make the best of what you have. Real estate is one of the top ways to build wealth as long as you do your research and invest wisely.

  16. "Are you a homeowner?"


    "If so, do you think you purchased at the right time?"

    Yes, although not perfect timing. I wanted to buy a house years ago, but that was in the middle of the housing boom. I knew the market would crash and prices would come down significantly, so I was patient. I finally bought my house two years ago. If I bought it when I wanted to, I would have paid about $20-30,000 more for it. And I bought it during the year of the $8,000 home buyer credit, so that was more money saved.

    I tried to time the market for interest rates, and thought they would have went up by now. I can't complain about 5%, especially when I got the home buyer credit, but I didn't expect rates to go to 4%.

  17. Excuse the length of this comment but this kind of crap irritates me to no end…


    I'm glad I tossed this article your way because I found it offensive and I would have gone IN. After all the piece was titled, "Are millennials dragging down the whole economy?" and my first response was "WTF?"

    First, I'm tired of America harping on millennials and basically everyone under 65 as if it's our fault we're dealing with the repercussions of the country they left us with. Secondly, responsible home ownership is great. Buying a home for the sake of buying a home is not a smart or sound investment, especially at this time – and perhaps for the foreseeable future UNLESS you plan to LIVE in your home not use it as an investment, which is what they prefer: 1) The housing market hasn't even bottom'd out – hell foreclosure rates spiked THIS MONTH <a href="http://(http://economywatch.msnbc.msn.com/_news/2012/06/14/12203711-foreclosure-activity-jumps-in-troubling-sign-for-housing-recovery?lite)” target=”_blank”>(http://economywatch.msnbc.msn.com/_news/2012/06/14/12203711-foreclosure-activity-jumps-in-troubling-sign-for-housing-recovery?lite). 2) Students have $1 trillion in debt, yet they want us to take on MORE debt buying a home most people can't afford? This is assuming we were even able to obtain a job. It further assumes the job is secure. I have a fairly "secure" job and it's rarely a quarter goes by where they don't talk about layoffs.

    I preferred this piece on CNN http://www.cnn.com/2012/06/13/opinion/baker-famil… about the middle class and why people aren't buying homes because it's balanced and uses a far too uncommon thing I like to refer to as 'common sense.'

    "Between 2007 to 2010, the typical family had lost nearly 40% of their wealth. And, despite that our economy was 15% larger in 2010 than in 2001, the typical family's wealth decreased by 27.1% since 2001. On top of that, income had fallen. Median family income in 2010 was down by 7.7% from its 2007 level and 6.3% from its level a decade ago.

    It should be apparent that housing is not a safe asset, even when we are not in a bubble. Those who advocate that everyone should be a homeowner are displaying their ignorance. Homeownership in many markets can be like putting all your savings in your employer's stock. Ask an autoworker in Detroit if this is not clear."

    No wonder people aren't running out to make 6 figure investments in homes. There was another piece on the Atlantic yesterday advocating that students aren't taking on enough debt to pay for school, too. Blew my mind! I can't believe alleged intelligent people can sit around with a straight face saying young people (our generations) should take on MORE debt – inherently defined as taking on more money than you make – to invest in assets that have no guaranteed return on investment.

    I feel like the proverbial people in power are content pointing their fingers at us instead of realizing we're dealing with the reality of an environment THEY created. They act like we're sitting around living at home, unemployed, without kids, marriage, and homes simply because we want to rather than the fact that the system we reside in is screwed up. It's like throwing someone in a desert and blaming them for being dehydrated. That makes no sense what-so-ever.

    1. of course the older generation is going to blame us. the only alternative would be to blame themselves and we all know that's not going to happen. i don't have any huge debt in the form of student loans so i'm not too amped in taking on one in the form of a mortgage at least not right now. old ppl tend to glorify the "golden days" and try to make america how it was in the 50s and 60s. thing is you can't apply logic of how things worked back then to today and get mad when the bottom falls out of the economy.

      "There was another piece on the Atlantic yesterday advocating that students aren't taking on enough debt to pay for school, too. Blew my mind!"

      i saw the bull$hit article. the logic behind it was so backwards.
      My recent post Take Me Back to 1953

        1. Every old American man, regardless of his ethnic make up, becomes Walt Kowalksi, Clint Eastwood's character from Gran Torino… I can't effing wait! Given the fact that my pops was born in '32 I'm half way there now.

      1. I forgot to add something that someone shared with me the other day that I never noticed. Paraphrasing:

        "Old" people glamorize the past and chastise the present but over the last 50 years crime rates are down, pregnancy rates are down, education rates are up, incomes are up (albeit stagnant), stock market is up, wealth is up, GDP is up. The only thing that has NOT improved in America is marriage/divorce rates – and that's arguably a byproduct of women gaining more rights during and after the divorce process. Therefore, what is this "ideal" America of the past people are striving so hard to preserve?

        Selective amnesia at it's finest.

  18. I rent. Plan to rent for next few years. Not trying to buy a house in NYC. A few years ago it seemed like everybody around me was buying homes and I was just like..nah, chill.lol. I think with the way our generation floats around from opportunity to opportunity, it's not surprising that so many of us choose to rent. Up until we get married, a lot of us don't know where we'll be in two years time.
    My recent post A Few Random Thoughts on My Experience at #BWB2012

    1. I’m a little older than you all and I will tell you, waiting on a house is smart. It is NOT an investment. Especially not now. People look at how much its worth, 10, 15 yrs down the road and count that as profit. Say you buy a 200k place and 10yrs later its worth 350. If youre lucky. Woohoo! You forget to subtract all the interest you paid, 90% of the mortgage payment, which you might as well flush down the toilet. You get a tax deduction. Couple thou a year. Ok. If that doesn’t put you in the red, subtract taxes and insurance. Oh, you still have a few thousand in profit? What about the refrigerator, heat pump, new bathroom, lawn mower, air conditioner, plumber, dryer, carpet, fence….that’s easy 3 to 8 grand a year. Wait, you have enough left over for a vacation? Let’s subtract the closing costs on your next place.

      If you aren’t in the red, you just broke even and you have more grey hair. And in my case, an old fixer upper house contributed to my divorce. Real talk. A house will kill a marriage.

  19. First, I was always of the mindset that generation x ended in the early 80's (81-82). *shrugs* Never considered myself generation y. Now, for these questions…

    Are you a homeowner? – Yes…but only cause that sucka is upside down and won't sell. A short sale is in the works. Its being rented out now.

    If so, do you think you purchased at the right time? – My first house? YES! 6% interest rate, $900 mortgage. Bought the townhouse for $118K and sold it for $240K…though I regret selling it. Bought it prior to the housing mess and sold it during the housing mess…which caused us to purchase a single family for an stupid amount (fixed rate though, thank God)…and changes the answer to NO, lol. We are upside down. You can now get a new house for the price of what we owe, smh. We're renting it out now. Lord, PLEASE let that short sale go through!!!!!

    1. If not, do you plan on purchasing a home in the near future? – Yes, once I'm remarried. I'd only buy a condo while single.

      If you are married or have children, do you own a home or do you rent? How did you make your decision? – I have children and I rent. I have a $330K home that I don't currently live in still on my credit. Its not in default (we're renting it out) but I just can't buy right now. My situation made the decision for me. If I could buy, I'd buy a condo now. I'll save the single fam for when I have a husband to do all the man stuff that I have no interest in doing or paying someone else to do around the house, lol.

  20. Homes are not assets…they are debt until you OWN them. Having a mortgage does not mean you OWN anything. Even if you get a Equity Loan/Line or Credit you still have to pay it back with interest! Where is the asset in that. Assets create income…homes TAKE income. I guess owning will be ok once you are ready to settle somewhere forever…then maybe it pays.

    I owned, but sold it for a piece of commercial property, where I live and rent to others. Others pay my entire mortgage plus profit. That's an asset.

    I too once believe owning a home was the thing to do. Until I got smart and learned how this whole system works. And in the future if I do decide to purchase a home again, I will do so with cash. I will not make another CEO rich with my hard earned $. Banks win BIG with this logic.

    I have watched so many families that have been in their homes 10+ years eventually have to file bankrupt or foreclose because of income loss, retirement, etc. Those second mortgages are weary. Opting to rent serves most Americans today…at least if something major happens…the lease will end soon…case closed.

    1. this "Homes are not assets…they are debt until you OWN them. Having a mortgage does not mean you OWN anything." reminds me of lupe on words i never said:

      "Crooked banks around the World
      Would gladly give a loan today
      So if you ever miss a payment
      They can take your home away!"
      My recent post Take Me Back to 1953

    2. Technically homes/houses are assests….the mortgage loans, lines of credit, equity lines, etc…are the liability. Of course you own the home…you just borrowed money to buy it. Just like how you own a television that you bought with a credit card.

      The piece of commercial property you purchasesd was an asset and the loan you were paying the mortgage on that was covered by your "tenants" is a liability. You are more speaking of the cash flow aspect of this economic situation. If your renters were to get up and all leave then your cash flow would decrease and more money out of your pocket w ould be needed to pay the loan bill.

      Moral of the story, like any other purchase, is to buy smart and be sure it fits within your economic parameters. Sounds like you did just that. Kudos.

      1. "Of course you own the home…you just borrowed money to buy it. Just like how you own a television that you bought with a credit card. "

        Yes, but no one thinks the TV is an 'asset'.

  21. Great post!

    A coworker of mine suggested that I put Own a Home on my 30 Before 30 list. I put it on the list and after she left I took it off. I would like to be married before I own a home. As someone mentioned upthread, I don't want the burden of fixing repairs on my own physically or financially. If I don't get married (Lord willing, I will), I won't have children and will probably continue to rent.

  22. I rent and will rent after I'm married. We're saving for a decent down payment so we can get ahead of the game. Hell only one of my friends bought a house right after he was married and now he can't sell his house. We want to be prepared with the upkeep that comes with houses (taxes included). Take your time Tunde all you want will be there when you decide to go for it.

  23. I find it really interesting that most people tend to tie marriage to a house. I wonder if it's because of the potential for income, or more of a cultural thing of wanting a "home" to share with a family?

    The former is interesting to me because I believe you probably shouldn't have a mortgage that can't be paid on one income (even if substantiated by an emergency fund) in the worst case that you lose your job. And I'm a big proponent of hiring folks to do the "physical" stuff. Hell, I do that myself because I just don't have the time or expertise.
    My recent post Twitter Impact: From Academia to the Everyday Citizen

    1. I don't want to carry the burden that comes with buying a single family home alone. I want to share those responsibilities with someone.

      Also, having a fairly handy spouse will save you plenty money. He shouldn't try to fix your roof, but he should be entrusted with lawn care, lol…and other jobs that can be googled/researched.

    2. I agree here. I think some people wait to buy homes til after they get married so they can pool their incomes and buy a home at the top of their budget. I have some friends who did that and while they have really well paying jobs, they still have money issues. But you're right, even if you are married, it's just wiser to be able to pay for the house with one income. Means if one of you lose your job, you can fall on the other's income, that and you'll have more discretionary income and/or you can pay your mortgage down faster causing less interest. I've never been single so I really don't know if i would've bought or rent early on but I imagine it would have more to do with my job status rather than my relationship status.

      1. Exactly. My husband and I both owned homes when we married and as I said below, I rented out mine and moved into his, but if hard times had set in, we could have let one go and still held on to one and been fine. He paid all the bills for us when I lived with him and my rental income was used to build up our savings.
        My recent post I'm sorry kids….

        1. IF I could go back, I would keep the house, hire a property manager and rent it out. As long as you can keep somebody in there, it's a good source of passive income. I wish I would've given it more consideration back then but we were convinced it would be a headache living so far away. We were young and dumb. Plus it would've been nice to keep something like that in the family. When my sister's pipe busted and she needed a new place to stay, it would've been nice to let her move there or when my mom and her husband divorced, it would've been nice to offer her somewhere to go. That's if we didn't have renters. Even with the problems we had with that home, I knew with time, we could've eventually fixed them. I hate that we had to let it go.

  24. I don't have a lot of friends that are renting by choice. I personally don't mind renting. Landlords to take care of maintenance. If you're lucky, you're rent rolls together multiple bills/utilities (mine doesn't). To me, that doesn't seem like a bad deal.

    I don't necessarily think marriage and a house go hand in hand, especially if you don't have kids. I want at least two, so I'll need a house simply for the room and the yard. Something is appealing about owning a house and making it a home with your family. But, for now, renting is awesome.

  25. I bought my house in D.C. back in 2002. Best thing I ever did. I had no school loans, no car payment, spectacular credit and was able to secure a loan at 5.35 percent, which was almost unheard of back then for a 30-year mortgage. It was right before the boom so I didn't pay an outrageous price and my mortgage today is still less than what most of my friends who rent and own spend on housing each month.

    I bought at the time because rent was high and I didn't want to pay someone else's mortgage. I was scared because it was the biggest debt I had ever taken on and for real, that first year I was real cold and real hot because I kept the heat low and the air off. LOL! I became handy in the years since I purchased and what I can't do, I have a handyman who can do it and what he can't do, I pay someone with expertise to do.

    When I got married we rented my house and lived in his house. When we split, I moved back to my house.

    All in all, it's been a win-win for me.
    My recent post I'm sorry kids….

  26. Great post, as per usual. My feelings on home ownership are kind of ambivalent. I'm in my mid 20s with little debt, and I plan on keeping it that way for the foreseeable future. I'm not even going to consider a mortgage until I pay off my student loans in full, and since I'm most likely going to be going back to school in the next year or two, that means it'll take even more time, and I'm totally cool with that. I know home ownership is a status symbol in this day and age, but you don't really own anything, the bank does. And that's a really important distinction to me. The concept of spending 30 years paying uncle sam back does not appeal to me in any fashion.

    Location is also very important to me too. One of my best friends just bought a monstrous house (well monstrous in the sense that he's only one dude and its a 5 bedroom house)…in New Hampshire. He had to put very little money down, and his mortgage is lower than what I pay in rent for my NY apt and I have a roommate. However, the dude doesn't even have enough furniture to fill the place, and he's starting to realize just how much upkeep a house is. In NY, buying a studio apt is gonna run you 200K, and you still have to beg and plead with absurd co-op boards just to get your application approved. All I have to say to that is NO SIR, NOT ME #UNGH (Rozay Grunt).

    So, basically, once my life settles down, and I'm in an income bracket that I feel confortable enough in, I'll start to consider it. But it's just not an option right now. I'm not a fan of living beyond my means, even though our financial system is completely predicated on that notion. And then they have the nerve to complain about people using money they don't. It's comical, really.
    My recent post inomallday: But nobody should admit to getting swung on by Drake.

  27. From Starita, who is struggling on Internet Explorer:

    This is response to Krsy's question to JusticeRenee-
    A house is a beggar.

    When I bought my house it made financial sense in my head because rent was as much as my mortgage would be…but I didn't factor in all the extras that come with a house: my utilities easily tripled, when the dishwasher needed replaced that was on me alone-to buy and install, yard maintenance, buying yard equipment, down payments, taxes, PMI, home owner's insurance was like 8x what my renter's insurance was, you do stay at Home Depot trying to improve on it because it's yours, etc, etc, ETC…OH! and my first load of laundry the SEWER backed up into my kitchen!! No office to call, no daddy around the corner, no husband to defer to – just pull out the check book and hope the company you get ahold of doesn't rip you off cause there's someone else's feces on your kitchen floor!

    I don't regret owning my home, but I certainly could've been more prepared and it makes me a little sad that I have had these experiences on my own instead of with my husband.

    Houses will never be cheaper than renting. Yes, in the LOOONG run, HOPEFULLY you're investing in yourself instead of a property management company, but don't buy hoping to "save money" it's a very large upfront investment.

    (Not that you don't know all this Krys- just saying it sounds like that's the kinda stuff that JusticeRenee was referring to, the unanticipated "problems owning a home caused")
    My recent post A Few Random Thoughts on My Experience at #BWB2012

    1. With the age of our home we expected some problems. I don't want to paint an unrealistic picture. About a month in we found out there was a problem with the pipes. It didn't back up into our house but it did go into our backyard from time to time. It was a headache & we wound up getting to know the plumber. Bright side, that grass was so dang lush tho! lol Despite the roof being somewhat new, there was a leak the first time it rained & there were loose live wires in the attic. So we did make some mistakes. Mostly, we were too trusting of the sellers. We didn't know them well, but we knew them & thought they would've been upfront about anything wrong like that, we were young & dumb. We got the home inspected but those things flew under the radar.

    2. The improvements you're talking about is where we differ. I had lots I wanted to do but those extra projects weren't in the budget so I held out. Didn't so much as paint the place. It was a small house at 3 bedrooms, 1 car garage, 1.5 bathrooms, 1100 square feet but it was big enough for us. It only cost $57,500 & we got ourselves into a program for a grant to pay the down payment. The $410 we paid each month went toward the home insurance as well & the property tax was so cheap I don't even remember it. Even with the difficulties we had, I still thought it was worth it and hated we had to move it and sell it. If something broke, we could call somebody to fix it NOW, not wait til Monday or til management decides to act right so that was a big plus for us. I'm sorry your experience was so difficult but I just always knew those things would be part of home ownership.

      1. Thank you Slim 🙂

        I hear ya Krys – just saying that some folks expect that moving into a house will be similar to moving into an apartment, and it's not. Most homeowners have a story like you and I do of a gross/expensive/inconvienence that happened shortly after moving in, but that's not something that a lot of people plan for when doing the rent vs. buy calculations. Therefore the "problems owning a home caused".

        And not for nothing but you said "we" A LOT in those two paragraphs…there's a lot of power in we.

        Like I said I don't regret it – it's a source of pride and I'd encourage others to buy – I'd also encourage them to talk to a current homeowner about the real costs that come with it. The mortgage is just the beginning…

        1. I completely read that wrong, didn't see your name and saw JusticeRenee. I ain't never been an "I" tho Star, I've only been a "we!" lol I was curious what JusticeRenee was talking about though because the things she mentioned seemed like what comes with owning a home. When I think back on that house, I had so many things I wanted to do, I hated to let it go. Idk if I were single if I'd still look back on it so fondly or not.

        2. "seemed like what comes with owning a home" to you. It's all about expectations, that's all I was trying to explain. There are lots of hidden costs in home owning that are often glossed over.

          And I'm not hating on your "we" Krys 🙂 just pointing out that that's yet another factor in your experience vs. mine vs. JusticeRenee's. But again, that's just one more thing to consider when deciding if home ownership is for you.

        3. JusticeRenee was a we too, that's why I asked her what happened. And you're right, our parents don't do a good enough job of explaining what home ownership entails. I'm unsure whether it would've been more overwhelming for me if the hubmeister wasn't around. We kind of handled our own bills separately til I had the baby and stopped working. THAT'S what was more unexpected for us. The baby. Woop.

    3. @ Star

      No shots whatsoever but that is EXACTLY my worry at this point in my life. This exact scenario. I'm terrified of that happening to me and I would never wanna willfully and consciously place myself in that position.The thing about my circumstance, I come from a large southern family. My aunts/uncles have 14,15, 16 siblings. They have 5 or 6 kids of their own. My cousins have 5 or 6 kids. Varying levels of education and work taken into account, they mostly are stay at home moms. The thing is. I am literally the last born. Literally. The baby out of all those people. My dad is 80 years old. I know it sounds a little off but I'll be darned if I'm out in the world without a man. Nothing in my lifetime has prepared me for that. Kudos to you though, for real. I'm legit trying not to blow up people's inboxes in sheer panic of my reality. *rocks back and forth*

      1. And you should be, lol Cause something will happen, it's Murphy's law. lol There are plenty of folks that shouldn't be homeowners. For example if you are open to moving in the next 5 years, if you aren't willing or able to do/afford upkeep and maintenance. Renting affords you a lot of freedoms that you will lose with home ownership. Neither one are "bad", they just both have their own positives and negatives.

        Personally, I'm a roots girl. I like stability. I'll most likely live in KC long-term. "Freedom" is much less appealing to me than stability. But that's me. I'm also pretty handy. I wish I had a husband around to help me out but until he comes, I can mow the lawn and hang the shelves myself. And my Dad is only 2 hours away, so bigger projects he's happy to help me with of course it helps that there are plenty of casinos in KC, lol but he really is very helpful.

        I'm not advocating everyone buy a house, I'm advocating education and sharing your experiences so folks will be better prepared and more informed than I was. For me, household ownership was inevitable.

  28. I'm single [never married] with no kids. I bought my first house when I was 22 [I'm 26 now] simply because my mortgage is ridiculously low compared to what I'd pay for the same amount of space while renting. My house will be paid off in the next 5 years. I've accelerated my payments since day 1, and more than likely will purchase my next house before I'm 30 and keep my first home as a rental property. Home maintenance isn't a big deal when you plan for it. The money I save on inflated rent payments and my homeowner's insurance cover anything I need to have done. It's a hassle sometimes, but you take the good with the bad.
    My recent post Can One’s Self-Esteem Be Tied to Another Person?

    1. I think most people try to buy a home based on what the bank says they can afford, rather than what they can actually afford. The bank has no problem letting you live above your means, and people who aren't fiscally responsible will be up to their eyeballs in debt before they know it. Buying a house isn't for everyone, and that's fine.

      1. *high-five* You are so right. When we were buying our first house, we were talking about our budget with the loan officer. She said "According to our calculations, you can afford to pay [this] much per month so we can approve you for [this] much money." I said "No, we'll not pay more than [this] much per month so we don't need all of that." If we did go based on what she said, we would've definitely been hurting ourselves. People are giving too much power to the bank in that situation.

        1. Typically, lenders will say you can afford a home approximately 2.5 – 3x your annual gross salary. But that's really only feasible if you actually plan to take 30yrs to pay back your loan, and don't have an income-to-debt ratio above 30%. The majority of people trying to apply for a home loan nowadays don't have anything close to that. I had to get out of banking, simply because I was tired of having to lie to people, telling them that they needed a product that they really didn't. Smh. Until people are willing to be educated about managing their money, they do not need to be buying a house.

        2. That's more of a reason why financial literacy should be taught in school(middle and high school).

        3. I wholeheartedly agree. I could literally go on and on about the amount of people I've encountered who care nothing about their finances, and it's due largely in part to their ignorance. I wish it were taught in more schools.

    2. I realize though that many people buy a house because they think it's "the right thing to do" and they don't really have an idea of what to expect. I was a bank manager for 3 years, am a licensed insurance agent, and my father has a real estate/property management company. I was fortunate enough to know all sides of the problems one may face with home ownership. So I'll always be the first one to advise others about how they should go about purchasing their first home/their financial situations, should they ask for my advice.
      And also, great post Tunde!

  29. i've always been a advocate of renting. until i am married and possibly until i have children, i have no desire to chain myself to some pile of concrete for 30 years. nawl. lol

    i'd probably never buy a house if it was up to me. but understanding that kids need stability, i'll do it then. otherwise, i don't see it as an asset. our generation's values and priorities are drastically different from those previous, and i'm okay with that for the most part. the financial obligations that come with the owning and upkeep of a home (not to mention utilities and taxes) just don't yell "WIN" to me. i'd rather use the money to travel and deposit in my savings. lol

    great post Bowtie!

  30. I chose not go buy for mobility reasons and I was taught that owning a home is a liability/forced savings and most people will be lucky to get back what they put in (this accounts for inflation, growth in value, proper maintenance, etc.). I'll buy when I see myself being some where for more than five years.

  31. Excellent post!

    I defintely want ot own a home one day. As of now, renting is cool. Im not worried about biological clocks or time ticking. When I get there, I get there!

    Good sh*t Tunde

  32. As a fellow millennial, I acknowledge that I have postponed purchasing a home and getting married because of my educational pursuits. I am currently in the middle of a PhD program and considering going to law school. It just doesn't seem like the right time to make any type of long-term commitment, but I'm sure I'll feel differently in a few years when my finances are more stable. In the mean time, my parents, who are both members of the generation before the baby boomers, will just have to wait a bit longer for their grandchildren to arrive.
    My recent post 5 Reasons Not To Lie: Thoughts on Shellie Zimmerman’s Arrest

    1. "I am currently in the middle of a PhD program and considering going to law school."

      i considered law school for a long time while doing my phd. after i finished that turned into a distant memory. the only schooling i can see myself doing at this point is perhaps a mba program and even that would be part time.
      My recent post Take Me Back to 1953

  33. I'm reading some of these comments and like a few others I find it strange that so many posters, mostly women are waiting until marriage to buy. My mom was encouraging me to do that, my dad is like "uhm no, you will have your OWN assets". Disparity in their is interesting.

  34. I am a homeowner, twice over now. I haven't paid rent since I was 25. (I'm almost 39.) Once you've bought and sold it's hard to rent again, especially an apartment beause the mentality is different. Homeowners of all stripes (condo, townhome or single family) have a vested interest in maintaining their own individual properties and community (IN GENERAL) because it will make the value appreciate over time.____I don't really regret buying. I bought something that I felt was safe and I could afford on my then single girl salary. I do regret buying an older property because they have their own little quirks. And like a lot of folks and I am upside down, though not horribly so. I'm married now and though it's enough space for the 2 of us now, if we have more than 1 child it will be super tight.____I'd advise anyone to sit right on buying right now . I'm not leaving Houston anytime soon so I'm good.

  35. I'd also like to add that taking care of a house can be tiresome. But at the end of the day, I love being able to paint my walls etc. and I did some renovations before I moved back in last spring so it's exactly as I want it. without me having to move. For me, the headache of upkeep is worth it.
    My recent post I'm sorry kids….

  36. I always wanted to own a home, but not because I wanted the equity – but in my mind I'm a "socialite" who wanted a place of my own to throw fabulous house parties/game nights/burgers and beers – which I do now! I bought a home almost three years ago. I live in the DC Metro area and I refused to pay anybody's ridiculous rent prices. So I toughed it out, lived at home, stacked my dough and waited. When it was time, things were in favor for buyers (low interest rates, etc) and Obama was handing out 8 stacks. So, I bought a home that I felt like I could manage in an area that I researched and learned would have tons of new projects and renovations coming w/in the next few years that would increase my property value. In my circle of folks from the urreaa who are rooted here, we all own a piece of something. We joke that we're trying to buy the city back one block at a time. Now that I've done it though, I don't find home ownership to be horrible, but kind of overrated. I think that depending on what's going on in my life if and when I do sell, I'll just be a nomad.
    My recent post Why Hip Hop Won’t Die Wednesday

  37. hmmm… interesting post… i actually refused to buy a home for the following reasons :
    a) i think it's not an asset if you have to mortgage and unless i win the lottery, it's gonna be a minute before i can pay in cash, (but when i do, please know that there will be some mad ignant background music as i act all types of ignant in paris) and
    b) i'm much more into buying a piece of land and building the kind of home that i would to raise my kids in… although at this rate, it'll be the kind of home i retire to and then get incredibly bored in.
    c) I live in Africa and most of the architecture on the houses for sale is erm… grotesque (which is me being polite) and they have a thing for really ugly greek columns, uneven stairs, weird layouts and puke-worthy colour schemes (there are also beautiful, unaffordable exceptions, of course) and so i could not spend that amount of money on something that makes me feel so nauseous.
    all in all… i see renting like eating out… am paying for all the convenience and none of the responsibility. and i can sue if i get food poisoning.


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