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Now you have gone and done it. Last time I mentioned that they lost their collective minds. If you really want to help your kids out tell your parents to leave it all to your kids as they should need it way more than you do or you don't deserve it anyways.Quote:
Originally Posted by altasnob
Sure. Cause everyone has $400k of disposable equity in their homes and want to have a second job for the rest of their lives, all while joining a class of people who are maybe more hated than any other profession.Quote:
Originally Posted by altasnob
Hopefully those parents will do the right thing and die quick so all that money doesn't go to hospital bills or nursing homes!
The only thing that is going to save future generations is making wages go up to their historic levels. Not this onesie/twosies shit that's happening now. It's probably too late for old millennials like myself to make up for lost time, but maybe at least our kids have a shot if we get our shit together. This is probably all for a different thread, but wages probably at least need to double to make up for the fact that AI is going to take half of the jobs in the next 30 years, so having two parents working isn't going to be possible anymore, and the US will probably go back to having a sole breadwinner for the family.
On your first point, all you need is 100k, not 400. Rent will cover a good part of the mortgage; losses will lower your taxes overall. I'm not saying anyone can do it but a two-income family can probably pull if of with "normal" incomes.Quote:
Originally Posted by Supermoon
The house market has been fucked for only about 3/4 years, Many could have bought before that assuming their finances were together. Maybe it's gonna be fucked for another 4 years, who knows. It's not that much time in the grand scheme of things. It's bleak at the moment but things change. Starting with real starter homes will help. They are out there.
Buddy of mine who lives in Japan just bought an old home near Tokyo. Here's a tour for anybody who is interested. Pretty cool place.
Sure. But if starter homes lose half their value what does that do to the people in them now? Hoping for a recession is not good economic policy, IMO.
Let me introduce you to Kentucky.....Quote:
Originally Posted by Supermoon
Haha. There is always that.Quote:
Originally Posted by sirbumpsalot
I have said this before but I know about 5-6 families that bought rentals as much as possible and all are doing really well now. People hate landlords? Fuck em. Being a landlord is a pita, but over the long haul is a good investment IMO.
I always figured it could end up as a pain in the ass. I'm a good judge of character I think but you never know. I never have to deal with that at the brokerage. I'm sure the Mr. Money Moustache method or whatever is not too difficult to follow- though I guess the Bitcoin advice worked fantastic for a while too.
Attachment 450870
I only suggested buying a rental to someone like yeahman, who has older kids, who I presume has been in his house a long time and consequently has a lot of equity sitting there. He suggested cashing in to help his kid when I thought he could accomplish the same thing by buying a rental property. He could even rent the property to his kid. The tax deducted interest is a big benefit to rental property where as most can no longer deduct interest from their primary residence loan becuase they take the standard deduction.
I wouldn't put all your eggs in the real estate basket. But if you feel you have sufficient money in stocks and bonds, and want more real estate exposure, a rental property would accomplish that. One downside of a rental property is it is your money gets stuck there, so to speak. You can always sell, but then you would have to pay capital gains and depreciation recapture tax. You can 1031 into a new property to avoid this. But then your money is still in a rental property. You can always do a 1031 and buy your dream retirement home you plan to die in. You'll need to rent it for 2 years to satisfy 1031 rules, but then can move into that and live there until you die (and your kids inherit at the stepped up basis). You can take a loan out on the rental property, but rates on rental properties are higher than rates on primary residence. So best to take debt out on primary residence to purchase rental property (interest tracing rules allow you to deduct this interest even though the collateral is not the rental). It is good to have a lot of debt on the rental property because the interest being deductible, and if you have it set up properly as an LLC, you can limit your assets and risk exposure (most don't set up and manage their LLC correctly, making it easy for a plaintiff's attorney to pierce the corporate veil; umbrella policy counters this). You just want to make sure the rental is cash flow positive, accounting for all the various spikes in costs that may occur.
The easiest, cheapest way to get into the rental business is to house hack. My friend has a walk out basement he is converting into an ADU. He's in Bellingham, which currently requires the owner to occupy the residence to make it a legal ADU. But ADU laws are being relaxed throughout the country. It is only a matter of time before the city ends that owner occupied requirement (then he can move out and keep the place as a duplex). Seattle allows two ADUs per property, on attached, one detached, with no owner occupy requirement. I see all jurisdictions going this direction over time. I believe if he rents his ADU for more than 3 years, and then sells, he will only be able to take the primary residence capital gains exclusion on the portion of the house that is his primary residence, and will have to pay taxes on the ADU portion (so be aware of this before you dive in).
I don't think mom and pop landlords are despised. In fact, it is quite the contrary. They are sought after. Everyone rather rent from the person who actually owns the house, and works on the house, than some faceless corporate landlord who has an army of MBA data crunchers maximizing their investment. For your first rental, I think it is best to buy extremely close to where you live and property manage yourself. You will learn the business, the tax implications, and your house, and then can outsource these tasks as you grow older. It can be a time suck, but depends on the condition of your property.
This is not true.Quote:
Originally Posted by altasnob
Typical altasnob post, 30 seconds on Target’s website shows he is way off.
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Here's where that came from:
Low-Wage Jobs Are Becoming Middle-Class Jobs
Millions of low-income families are experiencing less financial stress and even a modicum of comfort.
"Last month, Target announced that it would pay new employees as much as $24 an hour and extend health benefits to anyone working at least 25 hours a week. The company is hardly the only one coughing up cash to lure in new workers or retain those on staff. Starbucks recently set a national minimum wage of $15. McDonald’s, Dairy Queen, and Subway franchises have been offering signing incentives. Lowe’s is giving bonuses to hourly workers this month."
https://www.theatlantic.com/ideas/ar...market/673277/
https://corporate.target.com/press/r...e-and-expand-a
What that article above explains is that because of pandemic stimulus hand outs and a tight labor market, for the first time in a long time the gap between the upper and lower class has shurnk. This is a good thing, and I would expect it to continue because boomers are starting to die, and there aren't enough babies or new immigrants to replace them.
There was an article in the Seattle Times the other day that talked about how all the tech layoffs in Seattle are big tech. Tech workers with 15 years experience, who were making 300 to 400k a year, were laid off and now have to work for 200-300k at non-tech companies, like Alaska Airlines. This isn't necessarily a bad thing. It is bringing down the upper class in Seattle and spreading the wealth out to other sectors.
https://www.seattletimes.com/busines...e-so-friendly/
Agreed, one slacker friend of mine put close to $1M into real estate over the last 20 years by scrimping/saving and gasp...living with ROOMMATES...retired at 52 with a multi-million net worth and clears $90,000 from rents after expenses and before taxes. Guy never made more than $100K a year in his career.Quote:
Originally Posted by liv2ski
“As much as”Quote:
Originally Posted by Harry
Yeah. No
But here, grocery stores start at $22
It’s fubar
And my electric bill is now $650. In winter with gas heat.
Does buddy have kids?Quote:
Originally Posted by sirbumpsalot
Key words = “as much as”Quote:
Originally Posted by altasnob
Here is the reality,
https://jobs.target.com/job/green-ba...18/45576945312
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I wondered about that as my bill is $300 a month from SDG&E. The price of gas on that bill has increased 3-4 times from last winter.Quote:
Originally Posted by Core Shot
You've completely missed the point. Obstacles in your way to a goal are to go around/over/under. Anything else is an excuse.Quote:
Originally Posted by east or bust
Fuck owning more than one house.
But I'm not a goal-oriented individual.
In todays society, its a reason to whine.Quote:
Originally Posted by sirbumpsalot
2 in 10 Lumberghs agree.
Everyone's gotta decide if the juice is worth the squeeze. That is always the calculation. For many, the initial capital investment, stress and burden of owning rental properties is not worth the possible income. For others, it is. Life is about tradeoffs and compromise, especially in real estate. Id rather have a crappier house in a nice area well within my means, as opposed to buying at the limit of my means because less stress is more important to me than accumulating as much wealth as possible.Quote:
Originally Posted by Mazderati
If you really want to help your kids, teach them the value of hard work and getting educated/skilled in an employable field. And tell them that their will be no inheritance when you kick the bucket.Quote:
Originally Posted by altasnob
" as much as blah blah blah "
IME in the POS environment this means maybe 2 people in the store on any given day might make that kind of wage/ might have a clue but the rest of them are not much good
Dad is that you? Are you posting on tgr now?Quote:
Originally Posted by Toadman
You know what? Fuck that. That's where I came from, no money, definitely no inheritance, borrowed money to pay for my flight to the US (where I had secured a good internship). It sucked. Money buys you experiences that can help you mature where lackthereof can hinder your development.Quote:
Originally Posted by Toadman
So yeah I'll try not to spoil my kid (I can't afford it anyhow) but I don't want him to start from behind. Especially in today's world. I'm not rich but I'll try to secure him housing and college. From there he can choose to become a bum or get to the next step.
I think the point of that post was to say that he wants to raise his kids so they are independent and hardworking and not financially dependent on him well into adulthood. I would hope my kid is middle aged+ when i kick the bucket, and by then i hope he has a life he enjoys and is financially stable so he wont need or be counting on any inheritance from me.Quote:
Originally Posted by Mani_UT
For sure but I think the topic is giving them a big step (while still alive) to access an increasingly out of reach RE market. Why have them struggle, pay 30-40-50% of their income in a 6% mortgage (assuming they can even buy) when you can get them ahead by planning 20 years ahead. Just to teach them that life is hard? They'll have other opportunities.Quote:
Originally Posted by californiagrown
I get why parents want to provide the kids with a better start to life. I think that's a natural parental instinct, or at least for most parents. I've seen both sides of the coin with friends that had their lives handed to them with a silver platter and silver spoon. Most turned out not to be assholes and were appreciative of what the parents did for them.Quote:
Originally Posted by Mani_UT
I didn't have that silver spoon. I had to forge it myself. I don't feel like I am any better than the next person. But, I do know that when the shit hits the fan, I have a leg up on those that were handed their spoon.
Remember those Mexican pointy boots? Surely America is a market for the bootstrap equivalent.
I have more confidence that your kids will be able to figure it out on their own than you do!Quote:
Originally Posted by Mani_UT
I would like my kid to treat life as though there was no familial safety net or step up financially, but be extremely grateful if there was a net in a time of need, or a boost was given for a life milestone (college tuition help, DP on a starter home, etc). Its a mindset i had/have, and would like to instill into my kid- that you must earn everything and to never expect a break. So, dont count on an inheritance from me(... but i will probably help out here and there while im alive, and will hopefully leave a fat inheritance when i die).Quote:
Originally Posted by Mani_UT
Good luck with that. Sincerely
"You give your children enough money to do something, but not enough to do nothing."
Name the movie.
warren g and Charlie creeper?Quote:
Originally Posted by yeahman
Guess who's house this was:
https://www.zillow.com/homedetails/1...8910891_zpid/?
lion stained glass [x]
initials on the gate [x]
bloodstained imported Italian tiles with scratch marks [o]
Only $3 million?Quote:
Originally Posted by sirbumpsalot
That’s a great estate. Unfortunately it’s in vegas
says 0.42 acres....but I gotta think its bigger than that.Quote:
Originally Posted by Core Shot
Check this out....
https://www.zillow.com/homes/20090-M...80924851_zpid/
The actual MLS entry has some additional information that the home needs carpet, interior paint, and a roof.
I looked closely at comparatives this morning for a client and the best I can determine value is closer to $500k to 550k. So, the broker is drumming up a bunch of interest from Buyers who potentially can't qualify for a loan big enough to buy the place. Odd strategy. I hope the client insisted on it.