Ok but let’s stop blaming people for buying places to live and recognize that a larger problem is corporations buying properties by the dozens and using them as sky-high rentals or just a place to park money.
Welcome to the 'nepo' housing market: 40% of homebuyers under 30 get family money to cover their down payment
Submitted 1 year ago by return2ozma@lemmy.world to aboringdystopia@lemmy.world
https://fortune.com/2023/08/28/housing-market-nepotism-homebuying-down-payment-help-from-parents/
Comments
WeAllKnowWhyWereHere@lemmynsfw.com 1 year ago
Echo71Niner@lemm.ee 1 year ago
Almost reads like the author is fucking mad other people have rich parents who have the brains to help the very humans they created and brought into this life.
regular_human@lemmy.world 1 year ago
Yeah the market sucks, but being salty about parents financially supporting their kids ain’t it
Echo71Niner@lemm.ee 1 year ago
being salty
It’s the year 2023.
Very_Bad_Janet@kbin.social 1 year ago
I can see, however, that people buying homes with the financial help of their parents could make it almost impossible for people without that help to purchase. It's one of the reasons why I bought my first place in my 30s - I was competing with people who had huge down-payments courtesy of their wealthy parents.
It's the same reason why people resent homebuyers moving from a VHCOL location to a lower cost of living place, bringing with them the relatively large amounts of money they made from the sale of their old home or larger WFH salaries, driving up the housing costs and pricing out the locals. Also the same reason people dislike expats purchasing homes in relatively LCOL countries.
Zorque@kbin.social 1 year ago
other people have rich parents who have the brains
*bank accounts
I dont know why you're conflating throwing money at your children with intelligence. If anything, it'd be empathy over brainpower.
Echo71Niner@lemm.ee 1 year ago
Actually it’s brain power, to not allow the humans they created, to be subjected, to insane rent costs for the rest of their lives.
nxfsi@lemmy.world 1 year ago
I for one support the revival of neo-feudalism and the divine right of kings, seeing as that is how the housing market is trending towards.
Echo71Niner@lemm.ee 1 year ago
No thanks, we need to get rid of the (Royal Families) we have on this planet dirt, not add to it. Having said that, if you create a human being that goes on to live to 70-90 years, you are solely responsible for them until your death.
Rooty@lemmy.world 1 year ago
And again, the corporate media is blamimg anyone but real estate companies and market speculators.
falinter@midwest.social 1 year ago
Obama (or Illinois?) gave me 10k down payment in 2009 and I got a tiny townhome at 23 right after I got a job outta college. I stayed in it for 10 years and traded it in for a bigger house like a crab after I got married.
I was not money conscious at the time but my dad pretty much forced me to get a house if I had the means. I’m glad he did.
So I guess I was also gifted my down payment from my parents and other tax payers parents.
sj_zero 1 year ago
I think that there's two things to keep in mind when buying a house:
the first is that notwithstanding rising interest rates which you especially in America should be able to mitigate with long-term mortgage rates, it locks your cost of housing in time. What you pay for a house is going to be what you pay for house. And so that's obviously a bit of a problem with house prices go down, but if they go sideways you're fine and if they go way out like they have it's really good.
But the second part of that is that people need to buy a house that they can actually afford because the cost of their house is stuck in time and so if you buy something really expensive and it's never really not expensive for you, then you have just made a long-term commitment to something that you can't really afford.
In canada, many mortgages are variable rate, and of the fixed rate options the longest lock in that most people do is 5 years. Once you start rising above that, the cost of money goes up considerably. In spite of that, I locked in at a decent rate in 2020 for 10 years which is virtually unheard of up here, and reduce my amortization by 10 years. I'm not going to lie, I am bragging. Really proud of myself for correctly predicting exactly what was going to happen in spite of every politician in central banker assuring me that it wasn't going to happen.
Franzia@lemmy.blahaj.zone 1 year ago
Lmfaooooo Bruhhhh I’m under 30 and I’m living with my parent rather than getting help moving out.
BertramDitore@lemmy.world 1 year ago
Well I’m pretty mad that I’ll never be able to afford a house, despite having a good solid job. My parents aren’t rich, so they can’t help me. And while I’m not mad at them for not being able to help, I am mad that all other things being equal that puts me at a disadvantage.
Here’s a hypothetical scenario: Let’s say I make $60K a year, am single, with significant student debt. Let’s also say because of the pandemic payment pause, maybe I was able to save, like $5K, and I want to buy a house. Not gonna happen. Now take all the same things but add in well-off parents who could help with a down payment. That hypothetical person gets a house. They have a definite advantage. To me, that’s not just unfair, it perpetuates a system of wealth transfer that only helps a tiny fraction of the population. Everyone should have the same opportunity to own a home, if they want to.
M0oP0o@mander.xyz 1 year ago
Don’t forget the tightening of lending rules going on. Even if you have the down payment, most will not qualify for the mortgage unless they have some one co-sign (bank thinks you can’t pay $1000 mortgage, so you have to pay $2000 rent).
sadreality@kbin.social 1 year ago
Co-signing on mortgages us not a standard practice tho
If you got down payment % and income ratio, you get a mortgage. It ain't that hard, bigger issue is finding a house to match you income.
BertramDitore@lemmy.world 1 year ago
Good point. I’d never get approved for a mortgage on my own, so I’ll be stuck paying rent that’s more than any normal mortgage payment. It’s so clearly rigged against me and people like me.
BraveSirZaphod@kbin.social 1 year ago
Nothing is going to fundamentally change so long as housing supply drastically falls short of the demand. There's no way to escape the core issue that we don't have enough housing units in the places people want to live, and so the units that are available are going to go to the wealthiest people seeking them.
sadreality@kbin.social 1 year ago
The country is ran by geriatric nepo babies... If you are not one of their crotch fruit, good luck, peasant! You are going to be experiencing a lot of that "free market" in your ass.
BaronDoggystyleVonWoof@lemmy.world 1 year ago
You don’t even need to have super rich parents. My mother helped me get my first home with 15K that she saved throughout the years. (I paid her back).
M0oP0o@mander.xyz 1 year ago
I think the issue is what if you have no parents or parents with no money (or negative moneys). You could do everything right, go to school, get a professional job, and still not be able to buy a place.
Echo71Niner@lemm.ee 1 year ago
Yes, that is the status quo now in Canada, you need to make $150,000 a year, minimum, to afford a mortgage to buy a low-quality apartment or home.
BaronDoggystyleVonWoof@lemmy.world 1 year ago
The housing market is definitely fucked worldwide. Many don’t have parents with money and can only rent or not even move out of their parents house.
Some of us got lucky with minimal down payment from their parents 5-10 years ago. Its just ridiculous how the market changed in such a small time. Like the houses are still the same, the population did not grow exponentially. Wtf is going on?
Sneptaur@pawb.social 1 year ago
There’s an element of “be fiscally responsible and you too can save up” but more often than not, the answer is “make more money”.
Fredselfish@lemmy.world 1 year ago
Borrowed 3k from my bad didn’t have to pay back. There is nothing wrong with getting help from family to buy a home. Fuck this article. The housing issue is caused by large corporations who are buying up all the houses along with interest rates keeping average person from buying a home.
M0oP0o@mander.xyz 1 year ago
I wish I had a rich bad.