Topic: Will they ever be able to afford a house? - page 4. (Read 1018 times)

If Gen X mentors Gen Z in navigating the ethical landscapes of technology, while Gen Z shows Gen X the power of inclusivity and global citizenship. They can learn from each other's strengths, bridge the digital divide, and build a future where progress isn't about leaving anything behind, but about carrying the collective wisdom of generations forward.

So, let's move beyond generational comparisons and embrace the unique tapestry that each era weaves. In the grand scheme of things, the "better" generation isn't the one with the fanciest gadgets or the fastest internet speed. It's the one that learns from the past, embraces the present, and works together to shape a future where every thread, from every generation, shines brightly.

This has become a serious problem for those who were even born in 1990++, the basis for things like this happening is because of the incredibly fast growth of social media (lucky for those who were alive and successful before social media hit lol), young generation are more concerned with fashion - expensive smartphones - expensive vehicles than investing and buying a house.
However, to successfully buy a house in this era, in my opinion, it is quite difficult, house prices in many areas have really increased, I have also gone through it myself, and paying off a house in installments is something that must be done, especially for the younger generation whose parents don't have lots money.

Phenomen of concentration may also impact the situation. In the past wider variety of land, area, accomodation were deemed suitable. Nowadays, more and more people live in cities and oftentimes can't live further away from them. As a result, demand for housing in limited area grows and vast majority of area outside of cities don't even enter the supply (from a buyer perspective). What are the factors that force Gen Z to live in cities or high price areas?

I can say that the older generation has better opportunities than the current generation X and Z, especially when it comes to buying a house. In the past, land prices were relatively lower, taxes were not too high, prices of building materials were lower, and living necessities were cheaper. They also don't support their parents, they only focus on their lives. Meanwhile, nowadays many generations X and Z have low incomes, higher living needs, high land prices and taxes, and do not get support from their parents/they bear their parents' expenses. Things like this make generations X and Z have a lower chance of buying a house, and in the end most of them choose to just rent a place to live or buy a much cheaper house on the outskirts of town.

It actually varies per person's situation. Before, I don't understand why people prefer to rent than to own a house. Until I realize about work related matters, the convenience of moving from one place to another and the maintenance of the house is easier and not costing that much for the renter. Definitely one reason why someone is moving to rent is because the office or job is near and also the other necessities like hospital, groceries, etc. All of those stuff are important for someone to rent. And most of the rental properties are in the cities or areas where there's much foot traffic. Many people think that buying a house is a liability because of the mortgage that you're going to pay for so many years. They've got a point but you have to understand as well that you're not going to work forever so, if you are able to purchase a house and able to pay mortgage do it and if you're fortunate enough, do it with cash.

It's going to take time but it's a good decision to distribute your profit from this space into your own house or even a rental property of your own.

I can see that a house is a liability and not an investment unless we look for tenants to rent on it. Though having a house is good but we should prioritize investments that gives us return of investment. As of the moment I don't even have my own house because the house I built way back 2017 was still not finished until now due to lack of funds but I have a piece of agricultural and residential land on me enherited from my late father and aunt. Though I spend $0 on it but still it is for me the best gift they left and I have to think the make best plans for it.

X, Y, Z? Well, those terms really do exist ,

Generation X is more confident and exert what he has by trying as much as possible, if the wage at the time of 1980 was relatively small but could build a house with good confidence, many opportunities, however people have the mindset of ancient times to choose materials to minimize the budget, because of the principle of building fast and the rest to live luxuriously and enjoy the results of work with family.

Generation Z where there are many financial solutions including banks that finance installments of finished houses, as well as prestigious facilities, according to specifications and prices. take the easiest way, if compared to opportunities it may be the same, but the current period where full installments of goods or media with a period of decades, can imagine how much mortgage interest for decades and yes different lifestyles.

As long as it is used for property assets to live in, of course it still has a positive side and passive income one day, in terms of function it is very useful, especially if it is strategic. Whatever the way is good, but if it's in my condition, I will choose with a time that is not too long so that it will be paid off soon because anyone is not always productive at work, there are times when he starts a business, during that phase it is better if he is not burdened with installments.

Yes, it's true what you said, many of the younger generation with just enough salaries have bought houses. If I look at it, it's a bit of a force to take it so that it looks successful to other people's eyes. In my opinion, KPR is a bit of a trap, in the first and second year the developer gives it a stable amount every month, but in year 3 until the end of the mortgage you will get floating interest, in fact the interest increase is much bigger than the salary.

I personally prefer to rent a house, because going to the office is a bit closer and more economical or efficient. Compared to buying a house that is far from the office, and investing the remaining money every month little by little, for me the investment is much more valuable for the future. If we choose the right investment in the crypto industry, especially since next year will enter a bullish phase, of course we can buy a house much faster than the mortgage.

what you say is true, the needs of people in the past and the current generation are very different. Besides that, with the increasingly dense population in big cities, in my opinion we have to start accepting the situation of expensive land prices and change our mindset towards wanting to live in an apartment or flat. Like residents of big cities in other parts of the world.

I am a millennial generation who is still single and decided to rent because I have no plans to stay in the city I live in now for the long term. Many people told me and even belittled me because I didn't have my own house, but I kept quiet. because I am more interested in investing for the future and setting short and medium term financial goals. Because I think that a house is not a liquid type of investment (easy to pay out), the buying and selling process may take years. The money to buy a house can be allocated to buying bitcoin for future financial goals.

I believe that affording a house could always be "easy" depending on how you approach the subject. Many people think that buying a house that you can live in is the way that you should start, and that's absolutely not the way you should start.

Starting up with a real estate business means you should start where you can afford, it could literally be a land that you have absolutely no house on, just pure land, if that's what you can afford. From there, you just put a small tiny shitty prefabricated tiny house, and sell that, then buy another and do it again, if you keep doing this again, you could buy a bit of a bigger land and put a few in instead of one, and then you could get a terrible home at a bad to mid level place, and renovate it and sell it. Going this way consistently will get you a great house, if houses are expensive, be on the owner side, not the buyer side.

From the link you posted, I can see some other proposed statistics for the US. From this huge percentage, isn’t a majority of the percentage from the US? There are countries that if you check their statistics, what you will find is very very low compared to what the US divorce rate is. So, you have to factor that in too because we’re talking about Gen Z from the world at large and not just the ones from the US. I even checked again and Many of the information about divorce on that site is centered around the US. You can use just them to make a judgment.

And that's a sign of how tough life is today and that's true that even with that age, it's hard to get their own house in the city and even on the rural areas, there's the hardship that can seen on today's generation. The mortgage and its interest are quite high and increasingly based on the government's response to the economical situation of a country.

Regardless of where you live, the houses and real estate prices have increased for most of the countries. And someone can barely afford it and while there are economical situations for everyone, the sellers of these properties are also taking advantage of it as they increase the prices way out of the srp.

I think a house is the same as real estate. And we know real estate right? Yes, it is a kind of investment. Whether you are planning to re-sell it soon, or have a space for rent, etc..., you name it. Not just house but even other things, like car, and mobile phones can be an asset too, as long as we know how to use them properly.

Paying mortgages has a duration (you already said it) so I won't say that we will get trapped because being trapped means endless. Making money and ways to make money sounds the same, so both are not easy. We can't tell what can happen in the future, so I won't set an exact date if when will I think experience to be wealthy.

This actually depends on what type of country we are in whether first world country or third world country because lifestyle and the way of living in these categories differ regardless of ages and generations. I find it biased when we look at the chart IMO.

I haven't seen anyone post the table that is made by OP,


So here it is,


First thing first actually on the 80's people many people's are already going to the Universities, and there are a lot of jobs that are also required better degree or certification, just like nowadays there are many jobs that are also has lower entry point. The only different is the Real Estate price, people are hoarding houses, while the land area is not growing the population has growth and it's crowded together in certain area, this was utilized by housing speculators to hoard houses in the area and increasing the housing market price.

Now the question wether later generation could afford a house is depends on wether they want to buy a house far away from big city, that has cheaper price?

This pic is the inflation chart.

Inflation is the expansion of the money supply and this chart reflects exactly that.

The more they print the more expensive everything gets.

If you want to fight this crap, buy the stuff which has limited supply and people will always need. Real estate, commodities, land... According to this chart, as long as you hold USD, you will be the sucker in the long term. In the short term, things may look a bit different since it is expensive to borrow money right now but sooner or later the FED will go dovish again.

In my previous post I said "avoid buying a house" mainly because of the high interest rates. If you have the cash, now is the time to get rid of it.

The affordability of houses for young people is a complex issue influenced by various factors such as economic conditions, housing policies & personal financial situations. It is tough to predict the future with certainty, there are potential solutions that can help improve affordability like government initiatives, increased housing supply & innovative financing options. By addressing these challenges collectively it’s possible to create a future where young people have more opportunities to afford a house.

"Couples going through their first divorce are around the age of 30. Married couples between the ages of 20 to 25 are 60% likely to get a divorce" https://divorce.com/blog/divorce-statistics/

Diveroce phenomenon and avoidance of marriage is too significant to be overlooked.

I accept that argument yet disagree with the causation below.
There are countless people doint pretty well today despite having not completed their studies, crafter their skills and so on. As a matter of fact, there are a lot of them who can't use computer, smartphone (except for taking pictures), aircon, beamer, screwdriver etc. Rent-seekers sitting on pile of legal titles to real estate, healthcare, pensions, education, housing, trademarks, business licenses (concessions, anit-competition protection schemes, charters defining privileges, monopoly) etc.

The point was that it used to take orders of magnitude less effort to obtain licences, permits etc. For example, there wasn't theory test to obtain driving license. Not to mention differences in building regulations. As a result, gen Z may spend more time applying for licences, permits, education etc. than working and earning.