2013년 12월 2일 월요일

About 'young people debt'|Response to "Young People and Debt"; Some Ideas







About 'young people debt'|Response to "Young People and Debt"; Some Ideas








               A               recent               Pew               research               report               showed               that               39%               of               young               adults               ages               18-34               have               returned               home               to               live               with               their               parents,               after               struggling               to               support               themselves               on               their               own.
               Naturally,               the               younger               in               the               group               are               more               likely               to               live               at               home               than               those               at               the               older               range.

However,               the               percentage               of               those               living               at               home               by               age               groups               reveals               that               the               numbers               are               high               for               all               young               people.

The               statistics               show               53%               ages               18-24,               41%               ages               24-29,               &               17%,               ages               30-34               have               moved               home.
               These               results               are               not               surprising               considering               the               unemployment               rate,               which               is               particularly               high               among               young               people.

In               addition,               some               are               straddled               with               student               loan               debt               which               is               at               an               average               at               an               all               time               high               at               $26,300.
               But,               nevertheless,               there               are               still               many               younger               people               who               are               employed,               on               their               own               and               renting.

Rent               rates               have               been               rising,               while               home               affordability               we               are               told               is               at               a               greatly               improved               level.

So,               why               not               buy?
               The               answer               is               that               there               are               reasons               to               continue               renting,               rather               than               owning,               one's               home.

Even               those               with               an               income               and               no               debt,               and               enough               cash               for               a               low               down               payment,               are               beginning               to               doubt               the               wisdom               of               jumping               into               home               ownership.

In               spite               of               almost               record               low               30               year               fix               rates               renting               is               an               attractive               option               for               many               in               that               18-34               age               bracket.
               Question               is               when               will               this               change?
               The               obvious               answer               is               that               these               things               will               need               to               happen               before               younger               renters               become               buyers               en               masses;               1.

the               economy               gains               traction               and               job               numbers               really               start               to               pick               up,               2.

incomes               look               like               they               are               growing               and               3.

home               prices               are               rising               once               again               and               not               with               the               current               accompanying               inventory               drop.
               But,               what               if               even               when               the               above               happen,               we               still               don't               see               a               return               of               renters               to               the               buyer               column?
               What               if               we               lost               a               generation               a               home               buyers?

Many               people               talk               about               how               the               stock               market               may               have               lost               a               generation               of               investors.

Over               the               last               12               years               we               have               witnessed               two               stock               market               crashes,               a               flash               crash,               fat               fingers,               and               general               frothy               turmoil               which               seeds               fear               of               participation               in               some               potential               investors.
               So,               will               this               last               housing               bust               leave               doubt               and               distaste               in               its               wake?

Have               those               who               may               qualify               down               the               road               lost               that               loving               feeling?

Is               it               gone,               gone,               gone?
               My               first               answer               is               yes               but               with               a               caveat.
               True,               I               have               seen               for               myself               a               lack               of               enthusiasm               for               home               buying               in               this               market               among               the               18-34               crowd.

Saving               for               a               down               payment               is               always               the               first               issue.

Not               only               is               it               difficult               to               amass               the               traditional               20%               down               payment,               for               many               just               3.5%               down               payment               seems               daunting.

The               drop               in               home               prices               makes               homes               more               affordable               than               they               were               for               first               time               home               buyers,               but               the               goal               remains               elusive               for               a               good               chunk               of               them.
               But               there               are               those               who               can               afford               to               become               homeowners.

What               of               those?

Even               they               are               not               convinced               its               right               for               them.

I               often               hear               those               in               this               age               group               say,               "Why               should               I               buy               a               home               when               I               know               I               am               going               to               move?

Maybe               if               I               knew               I               was               going               to               stay               in               one               place               and               have               settle               down               I'd               feel               differently."               That               is               a               reasonable,               if               not               outright               accurate,               reason               not               to               buy.

Being               nimble,               without               ties,               in               this               new               world               economy               can               give               you               an               edge.
               Also,               this               generation               is               settling               down               and               forming               families               later               that               the               previous               generation.

Getting               married               and               having               kids               isn't               something               that               needs               to               be               done               in               your               20′s               any               longer.

First               marriages               and               children               often               are               delayed               now               until               one's               30's.
               A               very               few               have               expressed               that               not               dealing               with               taxes,               HOA               fees               and               not               being               obligated               to               fix               up               the               home               is               a               plus.
               So,               besides               the               fact               that               Americans               can't               qualify               for               loans,               maybe               some               that               can               would               rather               rent               until               they               are               more               settled               in               their               life               style
               A               lot               of               things               have               changed               in               America               because               of               our               debt               blow               up,               our               current               debt               situation               and               the               future               debt               problems               we               will               have               if               we               don't               get               some               order               from               chaos.

And,               so,               along               with               and               in               reaction               to               all               that               financial               drama,               maybe               a               generation               will               wait               just               a               bit               longer               to               buy               a               home.






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