I just read an article about people leaving NYC and buying houses in Ridgewood, NJ for a million dollars and tearing it down to build a new house, just like Beverly Hills. My sister said that there are two houses being torn down right behind her son house in Ridgewood. I see that in Franklin Lakes all the time.
The rise of the multimillion-dollar 'knock down' house as wealthy millennials war over houses in the suburbs
Teardown buyers are paying "a premium to buy a house and to knock it down and build."fortune.com
Can't be there's "wealthy millennials", they're just emptying their 401s to buy Lambos
Because there's people who still want to stay in cities.
That's what is beautiful about post COVID. There's people who want to live in cities. Or suburbs. Or rural areas. Or keep properties in each kind of area. And now they can.
I live in JC. I know of people with a condo here, and a house in Sussex. Or a place at the shore. Or whatever it is.
It's like the pied-a-terre concept, but now it's for more people because companies consider lifestyle.
I work remotely, and I own here, and I'm keeping my place because I love living here. I'm looking to buy a place at the shore too. Maybe one day I'll buy a house in the burbs. Or maybe a place in Costa Rica or Mexico. It's a great freedom that is making every one except perhaps those who own office buildings have much better lives.
I would bet a lot of those people in Montclair and Ridgewood are not commuting into NYC- if ever- but they like the walkable towns and schools in those places. Much like the people I know in JC and Hoboken often don't go to an office, but like the city lifestyle.
Maybe that's true that people have more money than I realize. I just find it crazy the bidding wars on $1M+ homes. Is this the best economy in the history of the country? If everyone can afford $1M+ homes?
It's a strong economy. But the click-driven media and certain corporate allies who don't want to pay people want to besiege it.
It's the lowest unemployment since 1969.
A lot of people did *VERY* well during COVID via the great resignation and real estate, often both.
And, there's a generational wealth transfer going on which I guess makes people feel uncomfortable because it's often at the expense of people, mostly boomers, passing on.
The general rule of thumb is that people can afford a home at three times income. There are A LOT of two income families in particular earning 333k or so, and that's before we get to an inheritance.
But because of the media drumbeat, you're made to rethink packed airports, restaurants, concerts, etc, and imagine a crisis that isn't happening.
We all lived through 2008. That was a crisis.
When unemployment is very low, yet a large majority of people in the country are living paycheck to paycheck, that means a lot of money is being spent. No savings, no student loans for the past 3 years, etc. But it will all catch up in the end.
Yeah lwhen rates were low my buddy kept telling me to break the bank on a shore house or vacation property because it will double in value.
$100K is nothing in NJ even as an individual. By the time you account for taxes, housing, autos, etc. no money left for investments/retirement.
You need to learn to appreciate both. Studies are flawed and wrong all the time. Anecdotes are not always 100% correct either.
Kyk is the data nerd ITT so he can correct me (no disrespect there bud) but I think the average person has something like 30% equity in their house. I bought in 2019 if I sold today I probably have...400k equity. So yes I could buy 1M home, or 1.5M and probably waive appraisal knowing it's not going to miss that bad that I need to come up with more. That's the view people are using (and we as a brokerage are advising if they have that capital) when they try to buy.
Listen, when it comes to money, you either save/invest, spend, or a combo of both. Given where inflation sits and everything that’s gone on the last couple years, are you seriously trying to say that folks are still heavily saving/investing? Savings rates are a joke and people loaded up on leverage when rates were low. Instead of people refi’ing their current $450K 30-year mortgage or jumping to a 15 year at 2.25%, they decided they would rather upgrade their housing and have a $800K mortgage at 3.75%. There are long term financial consequences to that mentality.
So the end result is a $600K-$1.1M mortgage?
So the end result is a $600K-$1.1M mortgage? Maybe that’s the issue here = nobody thinks borrowing $1M to live in a house is a big deal. And it’s probably because they look at it like they will never pay it off anyway or when they sell they will make a boatload.
So the end result is a $600K-$1.1M mortgage? Maybe that’s the issue here = nobody thinks borrowing $1M to live in a house is a big deal. And it’s probably because they look at it like they will never pay it off anyway or when they sell they will make a boatload.
Lots of good stuff in this thread
Looking for some advice for a friend of who recently bought new construction in nj @RUskoolie and @kyk1827. She said she gets some water in basement and some other issues like back yard is a mud pit, interior doors jot closing
Builder has been slow playing her, did some grading . She doesn’t think it helped
She was thinking about going through nj home warranty program, but wanted to to give builder another chance to make things right . It’s a subdivision of single family’s
Looking for some advice for a friend of who recently bought new construction in nj @RUskoolie and @kyk1827. She said she gets some water in basement and some other issues like back yard is a mud pit, interior doors jot closing
Builder has been slow playing her, did some grading . She doesn’t think it helped
She was thinking about going through nj home warranty program, but wanted to to give builder another chance to make things right . It’s a subdivision of single family’s
A builder gives a 10 year warranty on structure. Interior doors can get sticky some months because of humidity. That's a bit normal. They should close but can be a little harder to close vs other months.
Water in the basement depends....could be grading, could be gutters. Is there any sump pump or french drain? If not she should put one in. Especially if it's unfinished and there are plans to finish.
I just built a new home with a finished basement and made the basement as water proof as I could anyway.
Water in basement I am not sure cause . There is sump pump , foundation drain but not French drain . What course of action can she take ?
She needs to put in French drain on her dime?
@kyk1827, I bought a home in Austin, TX a few months ago, in Feb 2023. This was a $750K home cut down to $625K, in the heart of east Austin. 3 bathrooms, 2 bedrooms. No suburbs, no drive. Walkable to bars, east 6th, everything a millennial could want. Not an apartment, single standing home with front and backyard. Small grass space but def enough to have a large party, grill, watch football outside in the fall.
Given this was arguably the hottest market of the Covid surge, do you think I overpaid? I expect you to be bullish on the market overall, I’m just curious. I’m not moving, won’t sell this until I get my money out and then some. I will wait very long term if I have to, I am still semi-young but at the moment don’t envision myself returning to the east coast any time soon. If anything I believe I would consider a second home in New Orleans, or possibly if I made bigger money, Southern California where I still have family.
Just curious what your thoughts are on these ultra hot markets cooling off. Because from what I know, this was the hottest of them all, figuratively and literally. AKA it will be high 80s all week.
Given this was arguably the hottest market of the Covid surge, do you think I overpaid? I expect you to be bullish on the market overall, I’m just curious. I’m not moving, won’t sell this until I get my money out and then some. I will wait very long term if I have to, I am still semi-young but at the moment don’t envision myself returning to the east coast any time soon. If anything I believe I would consider a second home in New Orleans, or possibly if I made bigger money, Southern California where I still have family.
Just curious what your thoughts are on these ultra hot markets cooling off. Because from what I know, this was the hottest of them all, figuratively and literally. AKA it will be high 80s all week.
A
anon_0k9zlfz6lz9oy
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Austin is one of the top 3 worst markets in the country at the moment. I believe it along with san fran has experienced the top 2 biggest price declines peak to trough.
I dont follow austin close enough to make an inform opinion on it
I guess what I am asking is do you know anything about the home warranty program and the claim process ?
Sure, but if this was a real phenomenon there'd be a lot more proof other than "I see nice cars around town." I mean, I've seen nice cars around my whole life, in rich areas, middle class areas, and in what people would consider the third world, doesn't mean much.
When I was in Mexico I stayed in a hotel across from a Bentley dealership. Doesn't mean the average Mexican person is buying a Bentley.
Who is folks?
There are people in every generation in every time of history that are bad with money.
Your earlier posts said millennials are not saving. That's not accurate.
I am sure some people live above their means. That's not limited in scope or a new phenomenon.
There are A LOT of people who are doing well now in the same sense that it was accepted before COVID and that has nothing to do with a stimulus or student loan forgiveness which even if tallied up would max out at less than 15k.
Agree. Seems like a fools game waiting to implode. We have advised our children 22 (graduated) and 20 (still in school) to live well within your means. Save first, spend later. We were raised by depression era parents, and we personally experienced several real estate market crashes that impacted family members and us.
Ferrari’s stock reaching yet another 52-week high today doesn’t mean anything? Ford dealers charging $10K over MSRP for a Raptor doesn’t mean anything?
Millennials Anticipate Buying A New Home With Student Loan Forgiveness
A new research study finds 56.8% of millennial student loan borrowers own a home, compared to 48.6% of overall millennials.
www.rocketmortgage.com
Millennials Anticipate Buying A New Home With Student Loan Forgiveness
A new research study finds 56.8% of millennial student loan borrowers own a home, compared to 48.6% of overall millennials.
www.rocketmortgage.com
“How Student Loan Forgiveness Could Impact Home Buyers
Student loan forgiveness would free borrowers from the obligation of repaying all or part of their federal student loan debt. When millennial borrowers who said they believe in loan forgiveness were asked if they would anticipate buying a new home in the near future should their student loans be forgiven, an overwhelming 79.6% said yes.”
They’re charging those prices because the inventory is down and they can charge more for something that is that much in demand.
Demand was my point. People are willing to pay almost any price tag. Whether it’s housing, autos, or just about any goods for that matter, folks don’t seem to care about the price of anything these days especially in sectors with low supply.
They’re just a lot of people that make a lot of money like T2K. If you are in the pharmaceutical or medical device industry everyone is compensated very well. Certain industries pay better than other. Just like picking the right college major, it’s important to pick the right industry. Funny thing is there were so many millionaires at my last company but no one drove an expensive car.
Mo money, less problems! Pharma/biotech is the best industry for those wanting to make a ton of money but without having to put in Wall Street hours and burnout. The industry is just so profitable. Margins over here make other industries cry.
While in HS, I did a research project that stacked up all the local industries and ranked them by comp, work-life balance, etc. Then I mapped out all college majors on costs, career prospects, and a few other metrics. I created a 2x2 grid and plotted out the data to see what combo was best. That's why I choose ChemE and pharma/biotech! :)
FYI - the first paragraph 100% accurate, the second is 100% BS. LOL! But I actually did make the wise decision to get an MBA instead of PhD. Commercial pharma is the most lucrative part of the industry.
IMHO, that is a major problem in this country and why pharmaeceuticals and biotech innovations are so expensive. Also, we are only one of two countries that allow direct to consumer advertising for pharmaceuticals, which is stupid and a huge waste of money that could be spent in a much more productive way. I'm sure you will disagree, but I digress anyway.
Meh, I'm neutral on DTC. I focus on rare diseases, so DTC isn't a thing. However, when I was on brands for more common conditions, I will say this.....DTC is done for a very specific reason. It freaking works! Seriously, the pull-through of good DTC campaigns is significant.
Over the years, we have given back a ton of margin, especially to the gov'ment. Rebates to Medicare programs are routinely 40-50%. Rebates to Medicaid and VA/DOD are 60-70%. Still, plenty more margin in the pocket. :)
If you want to point blame for high drug/treatment costs, look at the regulatory/approval process. It costs about $1B to get a new product approved. R&D and development costs directly results in higher prices. And of course, you only have 10-12 years to make your money back and then you lose your patent and generics/biosim hit the market. Coke has been selling Coke for 100 years now. However, every pharma company needs to remake their entire portfolios every decade or so.
High risk, high reward.
After looking at all the the obfuscation, lying and coverup for the vaccines, there is a reason the process takes as long as it does. It's a rigged game, and the rules need to be stricter, IMO. Cry me a river on patent term. Pharma and drug companies work the process and get extension patents and Orange book approvals for the most ridiculously incremental "improvements." I'm quite familiar with this area.
Also the revolving door between the FDA, CDC and other government agencies and big Pharma needs to stop.
On drug approval process--this one is hilarious- an approval based on "benefits" that were due to the placebo causing harm, while the therapy did nothing:
A new analysis of REDUCE-IT: benefits of omega-3s vs. harm from placebos
A secondary analysis of biomarker data from REDUCE-IT raises questions about the apparent benefits of EPA-derivative icosapent ethyl
peterattiamd.com
The industry would give up patents in a blink of an eye.....if the FDA stopped publishing chemical compound and manufacturing details. This would make us just like Coke. No patents, but trade secrets. A specific product would last in the marketplace as long as it's of valuable use.After looking at all the the obfuscation, lying and coverup for the vaccines, there is a reason the process takes as long as it does. It's a rigged game, and the rules need to be stricter, IMO. Cry me a river on patent term. Pharma and drug companies work the process and get extension patents and Orange book approvals for the most ridiculously incremental "improvements." I'm quite familiar with this area.
Also the revolving door between the FDA, CDC and other government agencies and big Pharma needs to stop.
On drug approval process--this one is hilarious- an approval based on "benefits" that were due to the placebo causing harm, while the therapy did nothing:
A new analysis of REDUCE-IT: benefits of omega-3s vs. harm from placebos
A secondary analysis of biomarker data from REDUCE-IT raises questions about the apparent benefits of EPA-derivative icosapent ethyl
Back to real estate. Inventor at the Monmouth County coastal towns is ridiculously low. See tiny shacks that went for $150K 25 years ago in Lake Como listed for $800K.
And that's proof millennials are buying?
Half of boomers have no retirement savings, how do you we know it's not them?
Nearly half of baby boomers have no retirement savings
More than two-fifths of baby boomers are nearing retirement with no retirement savings. That fact may surprise you if you are a typical white-collar worker, dwelling in a corporate culture of…
thehill.com
Millennials Anticipate Buying A New Home With Student Loan Forgiveness
A new research study finds 56.8% of millennial student loan borrowers own a home, compared to 48.6% of overall millennials.www.rocketmortgage.com“How Student Loan Forgiveness Could Impact Home Buyers
Student loan forgiveness would free borrowers from the obligation of repaying all or part of their federal student loan debt. When millennial borrowers who said they believe in loan forgiveness were asked if they would anticipate buying a new home in the near future should their student loans be forgiven, an overwhelming 79.6% said yes.”
Yeah...and unless they have 10k or less, they're not being forgiven, lol.
With all the crying over NJ prices in here, you're really going to argue 10k is going to make or break on buying a million dollar home? Even a 300k home, it's nothing.
Friend of mine that owns several local RE broker offices told me that in my town this time of year the historic avg is 140 homes on the market. Right now, there are 15 total in my town - absurdly low. Also said people will still pay almost anything. He’s done some recent listings where they pulled the comps and just randomly tacked on $100K+ just to test the market. In every case they got it plus more. He thinks the market is way overvalued but unless inventory levels increase there will be little to no price relief.
FWIW, I’m not trying to take aim at millennials. But they are driving family/house formation right now and show little sensitivity to price.And that's proof millennials are buying?
Half of boomers have no retirement savings, how do you we know it's not them?
Nearly half of baby boomers have no retirement savings
More than two-fifths of baby boomers are nearing retirement with no retirement savings. That fact may surprise you if you are a typical white-collar worker, dwelling in a corporate culture of…
As a fellow millennial, my wages have more than doubled since 2018, and I work in the financial services/insurance sector. You don’t have to work in tech/pharma to get well paying jobs with growth opportunities.
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