
Almost 70% of Millennials Regret Buying Their Homes - paulpauper
https://www.cnbc.com/2018/07/18/most-millennials-regret-buying-home.html
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spamizbad
Part of what might be going on here: Millennials are happier living in
cities[1], but can't afford to buy there. So they compromise, purchasing in a
post-WWII suburb, which tend to be the worst examples of suburbs: They lack
walkable downtowns, with streets dotted with mass-produced homes that aren't
built as well as prewar construction and starting to incur significant
maintenance costs. But between ongoing student loans, that's all you can
afford.

[1] [https://www.citylab.com/life/2018/06/millennials-are-
happies...](https://www.citylab.com/life/2018/06/millennials-are-happiest-in-
cities/563999/)

~~~
phlipski
I hear the phrase, "Not as well built as before" a lot when it comes to
housing, and I just dont' understand why that is always assumed. Modern
building codes are updated based on sound science and testing. Talk to folks
who have houses down in the Corpus Christi, TX area after the recent
hurricane. Basically the newer the house the less damage incurred.

~~~
dragonwriter
> I hear the phrase, "Not as well built as before" a lot when it comes to
> housing, and I just dont' understand why that is always assumed.

I think it's mostly true of 1960s-1970s construction (possibly 1950s-1980s)
compared to the period shortly before that. But, also, survivorship bias: an
older house must be better constructed to be still standing than a newer one.

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jandrese
There's not much to the article. It seems that 70% figure includes people who
discovered a problem with the house after they moved in or discovered that
they don't like mowing the lawn. Also, it included the sage advice of not
buying a home that's too expensive for you to afford.

The article did suggest that you should get your home inspected before you buy
it like pretty much every bank doesn't already require that. It also failed to
mention that home inspections are largely useless.

~~~
thebooktocome
> It also failed to mention that home inspections are largely useless.

According to whom?

~~~
jandrese
A lot of times it comes down to conflict of interest. They are hired by the
agent who is only interested in selling the home and getting the commission.

Even when they aren't, finding a reputable one who will actually do a good job
is extremely difficult. Most are just looking to run through a house as fast
as possible and collect their fee. There isn't some directory of problems
they've missed. As far as I know there isn't any way to recover costs from
them over issues that they missed and caused you to buy a home that you would
not have given the problems. This makes them quite prone to being a rubber
stamp and yet another fee for home buyers.

~~~
LeifCarrotson
You're correct that if they have a conflict of interest, they are definitely
useless.

Don't hire the agent's inspector. Likewise, make sure you have your own agent,
don't use the seller's. And if you're in court someday, don't expect one
lawyer to represent both parties. Simple stuff.

It's similar to buying a car: don't ask the dealer's maintenance department
whether it's a good car. Drive it to your independent mechanic on the test
drive and ask them to take an unbiased look at it.

If you don't know a reputable home inspector, you could ask your painter,
contractor, or handyman if you have a good relationship with someone who knows
houses to take a look.

~~~
jandrese
Of course if you're a first time homebuyer who has been previously renting you
won't have any relationships with painters, contractors, or handymen...

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a_r_8
"The survey found one in three millennials dipped into their retirement
accounts to pay for their homes"

Retirement account? What's that?

~~~
joezydeco
Funny that a spokesperon for a retail banking company will label borrowing
from a pretax retirement account (which is completely legal and usually
cheaper than retail credit) as a bad thing.

Equity is equity. In fact, targeting your savings into real estate right now
might be better than a 401(k).

[https://slate.com/business/2018/07/does-buying-a-home-
count-...](https://slate.com/business/2018/07/does-buying-a-home-count-as-
saving-for-retirement.html)

In years past, young homeowners got gifts or loans from family to help
assemble a down payment for a home. This really is no different, although it
signals that the millenials' parents have no free cash to loan their children.

~~~
koolba
> In years past, young homeowners got gifts or loans from family to help
> assemble a down payment for a home. This really is no different, although it
> signals that the millenials' parents have no free cash to loan their
> children.

Or they're just (financial) idiots and decided to spend the same cash on a
lavish wedding. It's hilarious (in a black comedy sort of way) how many people
complain about not being able to afford a down payment yet spent more than
enough for the down payment of an FHA loan on their weddings.

~~~
joezydeco
Millenials are getting married even later than GexX couples. I'd attribute it
more to higher rent costs and student loans attacking their savings rate.

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mpax
The generational narrative is misleading. People are getting squeezed because
of accumulating debt-servicing costs.

[http://static6.businessinsider.com/image/4cf45f1d4bd7c8a2371...](http://static6.businessinsider.com/image/4cf45f1d4bd7c8a237150000/household-
debt-as-percentage-of-gdp.jpg)

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iambateman
Three days ago, my wife and I (late 20’s) walked away from our second house
contract. We felt a deep sense of relief.

The first contract went belly-up when we got a phone call from our lender the
day before closing: “there is a cemetery on the property.”

It turns out some people were buried under the carport a few decades ago and
we were told we would have to dig them up.

Who am I supposed to call and ask: “hi, can you help me move a body?”

As you may imagine, we walked away.

The second house was going along swimmingly until the HVAC inspector said that
our ducts had asbestos tape on them and needed $4-6k in remediation, plus a
rotten bathroom. The sellers claimed they didn’t have any money to fix it, so
we left that contract as well.

Needless to say, buying houses isn’t my favorite activity at the moment.

~~~
jrnichols
> and we were told we would have to dig them up.

….

well that's something that I've not seen on HGTV recently. :O

How did anyone find this out?

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antisthenes
Not only is my mortgage cheaper, there is an enormous benefit to being the
boss in your own house.

You have complete autonomy over what you do inside the property as long as you
follow the zoning laws. E.g. I don't need anyone's permission to swap out an
appliance or to make some holes in the ceiling for recessed lights or to run
Cat6 to every room just because.

I can just do it. And the mortgage for a 1700 sq ft. house is comparable to
renting a 2-br 1100 sq ft. apartment...

True, there's maintenance involved, but that's down to preference. I enjoy
most of it and do it myself.

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akulbe
Part of me wonders if part of this isn't in inflated (and unrealistic)
expectations.

Society (American society, at least) _drills_ it into your head...

You _want_ to buy a house.

You _must_ go to college.

These are societal metrics for success... and yet both often prove
disappointing. You realize home ownership is way more expensive than you'd
expected. You realize that fresh diploma does not mean a high-paid job.

Welcome to adulthood, the great re-aligning of expectations? :)

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apple4ever
I don't think I have a regret from buying my home, but I hate the mortgage
process.

There should be no down payment requirement. There should be no PMI
requirement. If you can prove you can pay rent for a couple years, there is no
reason you shouldn't be able to get a loan for that same amount.

~~~
matchbok
Uh, what do you think a downpayment is? It's proof you can provide the money
promised/you are responsible with money...

~~~
apple4ever
My financial history is proof I can provide the money and am responsible. I'd
love to save more money, but this thing called life gets in the way.

Its a loan. What does it matter if I get a $250,000 or a $260,000 loan? I
don't think its proof of anything. I think its sham by banks.

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Simulacra
Best decision I ever made.

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makotech222
Millennials, like myself, are stuck between a rock and a hard place. We either
have to keep shelling out a mortgage-level rent payments every month, with a
$100+ increase every year, or try and save up and spend the 20% down payment
and hedge against the rent payment increases.

I went with saving for down payment and getting a home. I'd say i made the
right choice though. I just looked at rent cost for the apartment I use to
have, and when i started renting it was $900; It's now at $1315 4 years later.
My mortgage is at $1300, and I know it will always stay that way, too. Only
downside is replacing things that seem to break all the time when you own a
home :P

~~~
ams6110
Do people still think about "starter" homes?

The first house I bought was tiny. Two small bedrooms, a bathroom with a sink,
tub, and toilet, a living room and a kitchen. Carport in back on a small lot.

I knew it wasn't what I wanted forever, but it was adequate at the time (no
kids when we bought it, one when we sold it) and the payment was lower than
rent on a similar sized apartment.

Gave me a tax deduction, and though it didn't appreciate a lot I didn't lose
money on it either. When I sold it, I parlayed the original down payment, the
small increase in equity, plus additional savings into buying a bigger house.

If you start off with a big house at the very upper end of what you can
afford, you have a hard time saving more money and can be really hurt by
unexpected maintenance and repairs.

~~~
swagtricker
>Do people still think about "starter" homes?

Yeah. With fond memories of 20+ years ago when they actually existed in
competitive markets. Unfortunately, house flippers have killed the "slow
growth, sweat equity" path to ownership. Everything that can be improved,
updated, or expanded in a competitive housing marked is done by flippers.
Then, even 2 bedroom 1 bath "small" homes cost a fortune because they have
stainless steel appliances & granite countertops covering up 50 year old
galvanized pipes and electrical work with a limited number of grounded
outlets. Flip with flashy improvements, drive up the price, and let the
expensive infrastructure problems be a time bomb for the sucker that wants to
live in it.

