You guys nailed it. If I had a dollar for every time I heard a younger person complain that they aren't getting the breaks, and that they would be as well off as me if it weren't for inflation (and other sob story reasons), I'd be a millionaire. Seriously.
Yeah, inflation's a bitch, but it's exactly what you guys have pointed out. It's about priorities, and having half a brain. I didn't spend my money on trips to Las Vegas and Mexico twice a year, on over priced but fashionable phones, or clubbing it twice a week, eating at trendy but overpriced restaurants so I could take a selfie and post it on social media. I didn't spend 200 buck on a haircut. Instead, 15 years ago I bought a house, and started paying it down. I still have the same house and the mortgage is now less than a 100K. My vehicles aren't fancy and don't have a $3K stereo system, but they're economical, and I take care of them, and as a result have no car payments.
I was laid off 6 months ago, but my wife works, and I do some odd jobs on the side (snow shoveling, reno work, etc..). My wife doesn't make a lot of money, but between the two of us we can afford to live comfortably and raise our two kids, thanks to some forethought and responsible finances.
Anytime someone tells you it's all about luck, tell them to get educated on the concept of money and finances. It's not about luck.
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Originally Posted by Bad Grizzly
Exactly. The concept of cheap housing so everyone can be equal has been tried already and it doesn’t work. Having prices skyrocket isn’t a great thing either, but what I would like to see ideally is real estate appreciating
by around 5-7% every year. A little bit above inflation.
People wrongly assume that if real estate increases above inflation rate that nobody will ever be able to afford a home. The fact is, over time most people’s income increases better than inflation, via getting married and having two incomes, via promotions at work, etc.. there’s easily room for hoses to increase at higher than the inflation rate and still make it affordable for people, this is the way it’s been over a decade and it’s worked fine.
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Originally Posted by Bad Grizzly
As I said in my previous post, most people's incomes over a long term aren't tied to inflation and are better. An by most people, I mean people with some ambition and some smarts. If one spends their life working at Walmart and or Tim Horton's and never getting promoted, this doesn't apply.
People see their income move up relative to inflation through various means other than simply getting an inflation raise every year. You buy a smaller house at a certain time in your life, and as your income increases, you sell and move up into a larger, nicer place and later on with your income situation continuing to improve and your mortgage lowering itself relative to the current economy due to appreciation, you get into a position where your nice home is cheap. See every city anywhere, but Vancouver and Toronto. Even in those cities, many who played their cards right have done well. Myself, and many other people I know bought their houses over the last couple of decades and have done very well over time. Our mortgages are low or gone altogether, so for me dead money would be rent going to an apartment.
The cheap housing I'm referring to that didn't work is something like this.
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Originally Posted by jc_yyc_ca
With all due respect, you’re the one struggling with the basic numbers. What BG said in this post is true and applies to a lot of people. You buy your house at some point, and then you are locked into the prices of that time even if your house goes up in value. You and/or your wife continue to get raises etc. and you build up your finances, all the while paying down the principle on your mortgage. I think you missed the part where BG mentioned people get raises over time and other various sources to boost income. You also probably missed the fact that, once you buy a house you are locked into the market and it’s a hedge against inflation. This isn’t rocket science and millions of people everywhere grasp the concept.
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Originally Posted by Corndogger
Home ownership rates in Canada and most of the world have been very stable for decades. If some Millenials are finding it hard to buy maybe they should look at their expenses. Going on exotic trips constantly, buying over priced iPhones, etc. adds up.
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Originally Posted by SteveP
Not just iPhones, fancy coffees and exotic trips, but expensive everything from haircuts and cars. Millennial’s have no concept of driving an older less fancy car in order to get ahead. Little self control from what I’ve seen.
If they want to go ahead and spend money on those things, that’s great it’s their life to enjoy, but they shouldn’t be complaining about not being able to afford a house. Young people not being able to buy a house these days is a matter of not knowing how to prioritize things.
That and what bad grizzly touched on, I find a lot of millennials are for lack of a better word, lazy. I’m sure that plays a part.
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