How?

[KenInRockwall]

Ok, so I'm one of those BB's that so many are sticking barbs into as though somehow we are responsible for the lack of financial discipline and desire for quick gratification of the later generations. I've worked since I was a pre-teenager and worked my way through college. My family did not have money to send me to college, take vacations or pay for some of my shoes and other clothing. I serviced time in the military, not because I wanted to, but because it was required. I could have gone to graduate school, but my draft board said no. My wife and I raised four sons, all of whom got college degrees and have no student debt. My wife and I spent many years doing without many things that our neighbors and friends had. We moved numerous times due to job changes. I was unemployed a couple of times, while still trying to provide for a young family. It was not until late in our lives, when the kids were out of school and our house paid for that we were finally able to achieve financial independence. I paid cash for my Sportsmobile, after my retirement at 70 years of age. Would I have liked to have been able to enjoy it while I was much younger and physically more vigorous? Yes! But that was not an option. Other things in life are more important than instant gratification and I'm tired of all this BBs are the source of the younger generations ills. Get real, get patient, get some discipline and work your butt off like we did. You all have much better options, better opportunities, better technology, better everything in life and a much better lifestyle than we ever did.

[MLD]

Doesn’t piss me off at all. This can work, but a mortgage payment on a 400k house, even with 20% down, assuming you have 80k to put down, is still a huge chunk of money monthly. And lots of folks who did that in early 2000s wound up with 250k houses on which they owed 300k. It’s risky, but heck, you have a van to live in if necessary!!!

[MLD]

True. I generalized a lot in my post. No generation is homogeneous in its experiences. Technically, I’m a youngish boomer, but I was 11 when US pulled out of Saigon. 5 during the summer of love. Definitely too young for Woodstock and too old for most Xers to relate to. Interesting article in WaPo today about generational labels being irrelevant. It’s true in many ways.

[MLD]

Here is the WaPo article on generational labels being a pretty dumb idea that leads to harmful stereotypes:

https://www.washingtonpost.com/opini...g-retire-them/

[KenInRockwall]

Yes, I've read such articles in the past, as well. I agree that such labels are mostly arbitrary and meaningless, yet the "boomer generation" label seems to be the primary ones getting blamed for everything the younger generations now see as bad society problems.

Your financial advice regarding a mortgage and taking out a second mortgage to finance any item is very bad advice. That is how many got into financial binds. I've owned 5 houses over the years and never made money on any of them. As someone told me well before I purchased my first house "a house is not an asset, it is a liability". Those purchasing a home with the intention of using it as an investment, should look at the cost to own vs the proceeds from a sell. Only a lucky few will actually see a return on such an item and usually a small one compared to what investing that money into stocks over the lifetime of home ownership can return. A house is a place to live, not an investment. I've never paid $400k or more for a house, choosing to be more realistic in what I can afford and where I can afford to live. Even though my current home (by far the most expensive one that I've owned) is taxed at more than $400k and I paid cash for it, I would be lucky to sell it and come out ahead, after considering tax, insurance and maintenance cost. A Sportsmobile, like any other vehicle, will greatly depreciate in value very quickly, so it is very unwise to borrow against ones home to finance one.

[MLD]

Originally Posted by KenInRockwall

Yes, I've read such articles in the past, as well. I agree that such labels are mostly arbitrary and meaningless, yet the "boomer generation" label seems to be the primary ones getting blamed for everything the younger generations now see as bad society problems.

Your financial advice regarding a mortgage and taking out a second mortgage to finance any item is very bad advice. That is how many got into financial binds. I've owned 5 houses over the years and never made money on any of them. As someone told me well before I purchased my first house "a house is not an asset, it is a liability". Those purchasing a home with the intention of using it as an investment, should look at the cost to own vs the proceeds from a sell. Only a lucky few will actually see a return on such an item and usually a small one compared to what investing that money into stocks over the lifetime of home ownership can return. A house is a place to live, not an investment. I've never paid $400k or more for a house, choosing to be more realistic in what I can afford and where I can afford to live. Even though my current home (by far the most expensive one that I've owned) is taxed at more than $400k and I paid cash for it, I would be lucky to sell it and come out ahead, after considering tax, insurance and maintenance cost. A Sportsmobile, like any other vehicle, will greatly depreciate in value very quickly, so it is very unwise to borrow against ones home to finance one.

I did mention boomers, with some regret, but another member recommended the home loan strategy.


House values vary so much by location. I live in Portland and 400k will buy a small, 1200 sf house. I was fortunate to buy mine in 1999 when it cost 150k for a small house. I could not afford to move to Portland if I didn’t already own a home here. With appreciation, we did well even with taxes and upkeep, but it’s less an investment than a holding tank for money you spent for housing long term.

[N147JK]

Originally Posted by KenInRockwall

A Sportsmobile, like any other vehicle, will greatly depreciate in value very quickly, so it is very unwise to borrow against ones home to finance one.

And to pay loan interest on a depreciating item is adding insult to injury. I did it once many years ago.. never again.

[simplesez]

Originally Posted by MLD

Doesn’t piss me off at all. This can work, but a mortgage payment on a 400k house, even with 20% down, assuming you have 80k to put down, is still a huge chunk of money monthly. And lots of folks who did that in early 2000s wound up with 250k houses on which they owed 300k. It’s risky, but heck, you have a van to live in if necessary!!!

Down payment?

Again there is always a way. First time home buyers can get no down payment mortgages. Military can get VA loans.

Just read the KeninRockwell post quickly. I think people, starting with the OP think that their own situation is normal. Use your imagination and realize that folks that want something expensive will hustle to get it. Not a fan of the hustle? Fine but try not to complain "WHY not me" when others have more expensive toys. Life isn't fair or even. Everyones experience on this planet is different.

Fun conversation but again try to keep it light or it will get uglier than a NextDoor app conversation.

Lots of new people posting in this thread. Welcome! Remember to leave your predispositions at the door

[b. rock]

Simplesez is on the money, no pun intended (OK maybe a little). Make your money work for you - otherwise it's working for someone else.

[86Scotty]

This is a great thread with great ideas, different values and experiences. It is probably the first forum thread anywhere ever that has gone this far without devolving in to a locked down political argument. I hope we can keep it that way for awhile.

"A Sportsmobile, like any other vehicle, will greatly depreciate in value very quickly, so it is very unwise to borrow against ones home to finance one." This used to be true but is not so true anymore. I've always lived by it but I am challenged daily by what I see and it isn't just Sportsmobiles. If you bought a Toyota pick up years ago you can probably now get more than you paid for it. There are many other examples.

I paid $5500 for my first Sportsmobile and sold it about 3 years later for $25k. It was resold, resold and then resold over the next year up to nearly $40k at the last sale.

Logic no longer applies.