[quote=spdrun]Neighbors’ values? Low housing values are a good thing in the long run. They allow Gen-Y folk to buy in comfortable areas and derive rental income, while kicking the butts of X’ers and boomers who overpaid anyway.
In short, people who rode the gravy train too long are getting the shaft and it’s karmic justice in my book. <3
And yes, a lot of the properties that are available are in poor shape. But if they end up sufficiently cheap, they can be fixed up -- investing should be about sweat equity AS WELL AS passive activities.[/quote]
Why do you think "Gen Y folks" should be entitled to buy only in "comfortable" areas? Do you think their predecessors all bought their first properties only in "comfortable" areas? How about their second property??
spdrun, I don't know how it is where you live, but in CA coastal counties, residential properties have traditionally been arranged in a “caste system.” Those who bought at a fair price for their particular buying era, kept the maintenance of their properties up over the years, made any necessary improvements, made all their mortgage payments on time and/or bought and sold sequentially buying a little higher-priced property each time were rewarded with a small, moderate or large profit when they finally sold. The size of this profit depended on area of property and amount of sweat equity the owner sunk into the property. Mortgage interest rates only had a low to moderate effect on home sales volume.
Except for the most highly-desirable areas (usually <5 mi from the coast), sweat equity was necessary to make a profit upon sale.
It isn’t the “boomers” who need “karmic justice.” It’s primarily the X-ers who rode that gravy train too long and its not entirely their fault. The long “gravy train problem” is entirely the fault of lender malaise. And MANY X-ers were advised by boomers and beyond NOT to buy during the millenium boom and they did so anyway, in fear they would be “shut out of buying a home forever.”
And your brethren, Gen Y, in general, does NOT WANT to ENGAGE in “sweat equity” in any way, shape or form. At least not around here.
That is w-a-a-a-a-y too much work for them.
You seem to be a little confused, spdrun. The vast majority of “boomers” didn’t borrow themselves into oblivion on their properties. Most took out their purchase-money mtgs long before the “millenium boom” and they didn’t need to borrow any more … ever. They now deserve to get a “fair price” for their properties (considering all the improvements they have made over the years) so they can retire somewhere less expensive and not be a burden on YOU!
A young adult in the US is entitled to WORK in a job they are qualified for. They are NOT entitled to any more than that. Whatever they acquire beyond that (barring any trust funds they might have) is the result of THEIR OWN earning capacity.
