My neighbor bought at $900,000. They eventually needed to move for work so they put the house up for sale at $1,500,000.00. A few months later to 1.3 million. Then weeks later $950,000. 4 days ago they switched it to for rent at $3,985 a month. Like dude, no matter what it’s too much! 900k is too much and the rent is too much.
Is Abysmal on both ends. Plus now as a rental that house will be incurring damage. But that’s how you end up owning two homes. You just can’t sale the first one so you rent it out.
I mean, your neighbor could ‘man up’ and just take a fucking loss.
It would be better to get the 800k and invest it, then have it locked up in a home that’s not appreciating or can’t be rented.
but hey, it’s 2026, nobody can ever take a loss on property values… the line must always go up and we’ll be stubborn idiots rather than take a minor loss…
almost like people are emotional and stupid when it comes to money… instead of pragmatic and smart. But I’m sure your neighbor has convinced themselves they are super genius by not dropping the price to one that would actually sell…
I’ve never been in that position. I wouldn’t give up trying. But then I would have never put myself in that situation in the first place.
The economists of it are clear. Every financial person would tell you sell the home, and invest the money.
But people are not rational or smart, they are emotional. Psych studies tell us we percieve the loss for $10 as far more painful than the gain of $100. So if you gamble, and win $100, but then lose $20 afterwards, you will focus on the loss and often try to over compensate and make stupider bets, and then come out with -$200. Gambling is stupid like that, but people are addicted to it because of the emotional roller coaster it creates.
Truer Words have only been spoken by whoever wrote the book from which AI stole the idea that you just pasted here for me but that I have heard or read previously somewhere…
-
Amos Tversky: Known for his work on cognitive biases and the framing effect.
-
Daniel Kahneman: Known for his work on behavioral economics and the concept of loss aversion.
-
Richard Thaler: Known for his work on behavioral economics and the concept of nudges.
-
Herbert Simon: Known for his work on behavioral economics and the concept of bounded rationality.
Oh man, that’s interesting.
yeah there is tons of good work on this. tons of podcasts on it too.
being emotionally detached from your money is usually the best way to be good with your money.
-
hey, I did that too!
just give it five or so years. and tons of overtime. and a partner who works in tech who bought pre-covid and then sold at covid prices so you could buy a bigger house together also at covid prices. and then buy at the top of your budget because you keep getting outbid
those home made meals and coffee were definitely the biggest factor!
IF you take that advice literally you’ll never be able to buy a house because you head the words but you didn’t understand the message
The message is to not waste money of frugal things you don’t actually NEED. Every dollar counts a pennies a day can add up to a lot over some years.
It’s to tell you to track your spending and see how much you waste on things you don’t need and to analyze how you can save more
Also, don’t just save it, invest it somehow if you can. This what banks are for. Go there, talk to a financial expert.
Houses are stupid expensive, that’s true… but it’s also true that you probably waste money. If you waste money, even if house prices drop, you still won’t be able to afford one
that’s only viable for people who make 50+k a year and spend like irresponsible assholes in a reasonable cost of living area.
if you’re closer to the poverty line, frugality ain’t gonna save you unless you live with your parents.
regardless, this rhetoric is just victim blaming. people should be able to enjoy a meal out a few times a week and some beer AND own a house even if they work as a janitor.
like, give me a fucking break.
I should also be able to walk through the worst parts of Compton as an out-of-town white man by myself with a 10k necklace on and not be worried I’ll get robbed and shot
But also I need to take responsibility for my own actions and not make bad choices
Is it victim blaming to call me stupid when I get robbed? Probably
Was it stupid of me to walk through the worst parts of Compton by myself as an out-of-town white man with a 10k necklace on? Also yes
You can wish in one hand for a perfect world where you can work an easy job taking orders at McDonalds and make enough money to buy a 5 bedroom house in a good neighborhood with a decent yard and have enough left over to raise 3 kids and take a vacation ever year while treating yourself to daily high-quality coffee and fancy snacks…
or
You can climb down from the fantasy world in the sky and join the rest of us here in reality and realize that if you want to move out of your moms house you’re going to need money and the only way to have lots of money is to figure out how to save as much money as you can
it doesn’t matter if you like it; that’s how it is
Is that what banks are for? Savings account interest rates at historic lows of .4%, which doesn’t even outpace inflation. We’re essentially paying them to spend our money.
You could get a HYSA for 3%. Income is taxed, interest rates are variable. Not really many good options.
this is some bullshit.
my HYSA rate is 3.5% and rolling CDs bring it up closer to 4%. Oh no you have to pay taxes on it! wow, you pay taxes on pretty much every investment that isn’t a Roth IRA…
lots of other places to invest, like boring blue chip stocks that don’t have huge swings in value that you hold onto for years and they provide a return that is more or less within a 1% of the general market average.
the issue is everyone is a fucking asshole and want massive returns here and now and thinks they should pay zero tax on it, but that guy over there, he should pay taxes on his investments and returns, but not me! I’m special!
it’s hilarious i have friends who have like $500 invested and family with like 50,000,000 million, and they both say the same stupid entitled shit that you say here, because everyone seems to think they are entitled to like 10% tax free yoy growth on their investments… and THE LINE CAN’T EVER GO DOWN.
and we wonder why the country in is economically fucked… well because we actively choose to fuck ourselves over collectively year after with out absurd expectations and fast money bullshit instead of doing the boring hard unglamorous work that actually builds non-bubble wealth…
the smartest thing anyone can do is invest blindly. i check my 401K returns once a fucking year and no more and I don’t bother trying to manage it to try and min/max and ‘beat the market’ on it because it’s utterly stupid, and on average over 20 years of investment I have like quadrupled the saved income. and when I tell people that, the first thing they almost always tell me is I need to take out a loan against it and buy something stupid with it, like a way bigger house I don’t need. they also tell me I need to clean out my other investments and go on a trip to Africa, because YOLO.
Same people who whine to me how ‘poor’ they are and how they can’t ‘get ahead’… gee i wonder why…
oh they also are very upset they have to pay back their 60-150K in student loans they still owe on in their 30s/40s. they thought that money was supposed to be free!
That’s all sound advice (except talking to banks) but given the current nature of our economy it’s kind of moot for the majority of people.
Speaking of which, thanks for reminding me I have to move my state-obligated investment fund around to avoid the next “once-in-a-lifetime” financial crisis.
No way man. Having to budget and save is propaganda billionaires are using to oppress us.
or something. I gotta buy that latest gaming PC parts so I can up my FPS and comment harder on the internet about how horrible things are so I can fight back against the billionaires.
In the long run, yeah, it does save a lot of money to prepare your own meals and coffee, even now. But the people who yap like toast and coffee are the sole reason things are unaffordable truly suck and are completely detached from reality.
Right, it’s also the cost of tattoos.
And nose rings!
blue hair doesn’t grow on trees!
The productivity loss of not using those, would cost you more in the long-run.
The government benefits here consider 200€ on groceries a month (<7€ a day) to be the absolute minimum they can give to ensure living in dignity. Now, I personally can take some cuts here and there (especially since they consider daily portions of meat essential) to save a few bucks, but even if you somehow get all your food out of dumpsters, you cannot save more than those 7€ from this.
That’s not nothing, a lot of people would (and do) consider cutting back on food to save for other stuff. But it would take 50 years to save for a house, if real estate didn’t outpace inflation. Cutting back on food can help if you live well above your means, but if you are barely surviving, it won’t make you rich any time soon, just gives you money to spend on things to replace the enjoyment of an easy full belly.
You’re right that cutting food costs is hard for someone already spending near the minimum, but the post is about the difference from eating lunch and drinking coffee prepared and possibly delivered by others. In some cities, that’s probably about $20/workday, or $100/workweek, for about $5000/year. If we throw in dinner, the cost difference might be another $20/day, not limited to workdays.
Being able to cook good meals at home is a life skill worth mastering, and pays off in both personal finances and in long term health and enjoyment. People should still want to be able to do this, regardless of financial status.
Most people don’t want to audit themselves this way. It’s too embarrassing and humiliating to realize how stupid you are with your money and that your struggles are entirely of your own making… better to just never look at blame other people for ‘stealing’ your money.
And what’s dumber is your bank probably has tools in your credit/debt card account that does this shit for you automatically.
And the demo who whines the hardest about this is not the people who are legit poor, it’s the upper middle class who think starbucks and sweet green is a daily necessity they can’t live without, but yet somehow wonder why they can’t seem to ever save enough for major purchases like cars and homes… and often they further use this ‘despair’ to justify further indulge in wasteful spending. Further, they tend to justify this absurdity by citing like luxury high end properties as the cost of a home, rather than properties that cost like 1/4 of those that they could easily buy, but they don’t want to make the ‘sacrifice’ of having to not live in the most desirable/expensive areas of a HCOL area. Like, just because you can’t afford a 2 million dollar apartment today, doesn’t mean there aren’t 500K ones 20-30minutes away from where you currently live that you could easily afford with a little fiscal discipline.
Instead of… stop the wasteful spending, keep the savings, invest it, and all the sudden in a few years you have way more money than you did before and owning a home seems far more approachable.
Also, talking back to people whining about their money problems… fastest way to end that relationship or friendship. Folks will just HATE you and call you an evil oppressive privileged person… rather than admit that maybe they have a spending problem.
My weekly 2 person household necessities are something like $175 USD for home prepped meals, cleaning supplies, charging my car, and shower goods. If i cut back on stuff like conditioner and some vegetables or meats for processed stuff, i think i could save maybe $20 extra a week (until more price gouging/tarrifs/electricity increases due to data centers/whatever.)
The cheapest house on offer within 30 miles (48.2 km) of my job is $78,000 for 576 square feet (53.51215 square meters? Idk how europe measures floor area).
So if i struggle quite a bit, in 75 years, geriatric me and my geriatric wife can live in an extremely tiny house (assuming its still on offer and still costs 78,000, and if i invested that money the stock market didnt crash and and and and)
(Math: $78,000 / $20/week = 3,900 weeks. 3900/52 weeks in a year = 75 years. Im begging for a progressive world-policing power to invade us and force us to have free healthcare/tax the billionaires/slash the defense budget/tax those with multiple owned houses to subsidize housing)
What is your income?
Less than it needs to be and feeling less every day. Single income household (due to disability) and well below median in my area
start streaming about it and monetize it
Lol
How tf you don’t have a house if you didn’t get avocado toast?
I bet the lazy fucker likes to go on vacation with his kids from time to time. Imagine complaining not to be able to afford a house while basking at the beach every summer.
my brother just took his family on week beach vacation, it cost them about $8,000. How much avocado toast is that?
if you dont’ take beach vacations for 5 years, that’s about 40K, which is enough for a down payment on a house.
Why not both? It’s too much to ask?
This has me torn. On the one hand 8k a year just to have a vacation sounds a lot. On the other hand, should we really be accepting concessions on our lives when we know the main reason we need to do monetary concessions is because the fruits of our labor get siphoned from us?
Maybe I’m just too poor to comprehend that 8k vacations should be the norm. Or maybe 8k is too much.
you should buy stock and not go on vacation and then in 10 years you can go on all the vacations you want.
delayed gratification is a hell of a way to build wealth.
So you read my comment and thought it would be good advice to tell me to do the very thing that siphons money away from the workers?
I don’t want to build wealth, I want to live a fulfilling life and I want everyone else to live a fulfilling life. My fulfillment shouldn’t come at the expense of others.
yeah, dude keep refusing to help yourself and then wonder why in 10 years you’re still struggling…
newsflash, you can’t built a fulfilling life without wealth. and you can’t build other people’s lives for them.
and guess what, your very existence comes at the expense of ever blade of grass you’ve stepped on, every chicken you ate, and etc. that’s what life itself is. your little philosophy here basically concludes with ‘kill yourself’ but that too… will come at the expense of others.
but sure, sit around and don’t invest and daydream for the next decade and in 10 years you will still have nothing.
because you can’t afford both. you have to choose your priorities. you can choose to vacation, or save for a home.
but we live in an economy where a lot of people are choose to vacation and then sit around being bitter they can’t afford a home that they want when they spend all that money on something else.
oh, and further, they also don’t support new construction because they think new construction is bad and drives prices up and if they can’t have that new home nobody else should… which further restricts housing supply and drives up prices.
the point is humans are stupid and make bad choices, both short term, and long term, and they refuse to make better choices that would improve their lives because emotional gratification in the here and now is always more important to them.
FWIW, I grew up in a family who never took vacations but we were able to own a home, though it was rural and my dad commuted 3-4 hours a day to his job. If I point this out to people today, they basically lose their shit and say they’d rather never own a home if it meant they had to stop going on vacations multiple times per year, let alone live so far away from their job to find affordable housing.
In the 80’s, a man could afford to raise a secret second family on his factory job while both of his wives stayed home raising 2.5 kids. Humanity has become waaaaay more productive since that time, yet dual income households can barely raise one child, if they are lucky. It’s not that people have become lazier or anything; we’re making more but recieving less for our labor. The people in charge have been siphoning more and more of the wealth we create while telling us the reason we can’t afford nice things is because of bad decisions we make. Places like Walmart claim prices go up because of inventory theft, yet they keep hitting record breaking profits because the wage theft they engage in brings in way more money than they lose from inventory theft. It sure seems like these fat cats are forcing us to pay for their immoral decisions at the cost of us being able to afford nice things.
Yeah, and you’d do the same thing if you were one of the fat cats.
People don’t go into corporate management to become altruists, they go into it to get rich and fuck the other guy over.
My point is that you make it seem like being unable to afford nice things is mostly a result of personal choices. In reality, the reason people struggle to afford nice things is because rich people are picking our pockets. The solution here is not to join the ranks of the fat cats, but instead to stop the absurd levels of thievery they are doing. This is not a personal problem that can be solved with personal responsibility, but a systemic problem that requires a systemic solution.
If you need an easily comparable situation, I think it is important for people to recycle and limit their waste production. No matter how conscientious I am, Elon Musk is going to overpollute our planet on the scale of a small country with the broad approval of our government. This is also a problem that requires a systemic solution because Elon Musk is only capable of creating so much pollution since he is supported by the systems our government runs on.
Usually because the house deposit required goes up a lot faster then the amount you saved.
housing market used to go down. back in ye olden days housing prices largely went up and down as part of the business cycle.
but it’s not allowed to do that anymore. now we inflate everything and pretend the economy is growing because stocks are going up.
To be fair though, I’m living in a village and mostly cook for my family myself. I’ve been to Warsaw the other day and visited a small roardside store and a cafeteria.
For the price of a sandwich I could make an entire meal. For the price of what I bought in a cafeteria (a croissant, a jar of jam, small pack of cookies) I could feed my 2+1 family for a few days.
A small cup of coffee costs as much as a homemade dinner in itself either.
I’m not saying you shouldn’t eat out. I’m saying these parasites are milking us dry.
the economics of all that are different depending on where you live.
some cities eating out not very expensive compared to the time and cost of preparing food at home.
other cities, it’s wildly cheaper to eat at home than eat out.
also depends on the food in question, the quality, and the market. Where I live $5 is a cup of coffee at the nice cafe, but there is no way that’s buying you a proper meal for dinner at home either, that is closer to $10, but that same meal at a restaurant will run you $50+ And meal box services are VERY popular due to the fact their volume purchasing lowers the per meal cost to around the same as making your own food.
further, some people just don’t have the energy or time to grocery shop and cook every day, or don’t think the opportunity cost is worth it. lots of folks who can’t afford to eat out, economically speaking, still do because well they don’t prioritize saving or budgeting.
In 1960 the minimum wage was $1.00/hour and the price of the average US home was $11,000.00
In 1960 the minimum wage was $1.00/hour and the price of the average US home was $11,000.00
That’s 11000 hours still…so, 40 years?
EDIT: Misscalculated a bit. 1+ year apparently.
I see you, @WorldsDumbestMan@lemmy.today. Keep trying. You can do it
There are ~2080 working hours in a year (52*40). So 5.5ish years
Check his username
I’m only just now getting over looking for shittymorph and you expect me to start checking usernames again‽
Hahaha oh man I miss novelty accounts like that one. One time i saw shittymorph give an actual reply and I was like omg and shared it with people, but apparently he goes back and deletes all his posts that don’t do the quote
I wish I was there to see shitymorph myself.
He’s on tiktok now but he’s taking care of dogs or something like that.
deleted by creator
Homeoffice indeed saves so much money. I think even carbon emmissions are roughly reduced by 30% for workers with WFH. Imagine not relying on a car anymore. Over lifetime, buy/maintenance/fuel prices for a car roughly amount to the price of a house actually. Now you’d not want to buy a house at the end of your lifetime but it reaaaaally sums up.
What I find ironic mostly is the same folks who are bitter they will never own a home are also the same folks who fight housing development and are pro-rent control.
They basically choose policies that will fuck themselves over more in the future and make them owning a home ever more difficult than it already is.
But I mean, so did their parents.
And they are all eating avocado toast and also complaining about how expensive that is… but they are still going out and buying it.
We have housing development all over Utah. Not easy to afford those half million dollar starter homes. Also pro rent control is exactly the policy they need to prevent the mass purchase of homes by a single entity or person. If it’s not as profitable, then they won’t do it.
without those new homes, the existing starter homes would be 700K.
rent control restricts development, and gives preference to those who already live there over those who want to move, which locks people into their homes and further increases upward price pressures.
the problem is you see everything in terms of YOU YOU YOU. you can’t afford the new homes, so you think they are bad and make things worse. but those new homes are getting bought by people who would otherwise buy old homes and make those even more expensive than the new ones.
the issue that nobody is talking about is that the USA as a whole, is like 30 million housing units in the red, and it’s far worse in some areas than others. In cities where they have built enough to meet demand, prices have plateaued and sometimes started coming down. Because at the end of the day, it’s a local issue. it’s individual towns and cities that choose to permit new housing construction, they are the ultimate force in all of this and they have systematically suppressed new housing for 30+ years. The last time housing construction was on pace with housing demand was 1995. every year since then, housing construction has been less than demand, and thus housing prices have gone up 300% because there simple aren’t enough houses for people to buy, so the houses that are for sale, go to the rich people who can afford them.
anyway, yeah vote for rent control and screw everyone else, as long as you have yours right, surely you’ll be the one who gets the rent controlled unit and fuck everyone else who isn’t lucky enough to get one. that is the american way.
Bullshit.
yeah man, just keep saying bullshit. that will make houses become affordable for you.
or maybe go to your local zoning board meeting and vote for more housing development. nah, that that can’t work.
And absolutely zero that you said will make housing more affordable. From your point of view it sure the fuck sounds like you’re either a developer or an investor in housing. Or possibly a landlord since you’re screaming so much about rent controls ruining the possibility of more affordable housing.
Right, and you know this how? Because you ‘feel’ it? Do you also feel vaccine causes autism and they are a vast conspiracy being imposed on you?
I can tell you right now because there’s absolutely no rent controls in utah. That is not made housing any cheaper here in fact it’s gone up astronomically over just the last 5 to 6 years. And I can also tell you that building out additional housing is not helped the fact either. Because all their building is huge houses that really start at 450 to 650,000. I live in an area of town that traditionally was low income and not necessarily great. The area I live in is much nicer and I’ve lived there for quite a long time. But watching all of the new housing pop up and I literally had probably eight neighborhoods pop up of dozens and dozens of houses and the cheapest one out of those is $475,000. And I can tell you by looking at the housing market around me with all the existing homes and watching them sit because the housing market is so overpriced that even homes that literally 6 years ago for selling for 225 to 275,000 that are now selling for $480 to 650,000 or more. It’s not about the number of houses available it’s about the market in the glut. And you’re right I’m not in the position to purchase the house. I could if I wanted to. I make plenty of money but I really like where I live I don’t mind renting my landlord is awesome I’ve literally lived there for 12 years I get to do anything to the home that I want there’s not even a problem there and I pay less than what I pay trying to buy a house that’s smaller than where I live. I’ve looked at owning a home I’ve looked out purchasing a house I qualify I have the money available I have the income way above the median and Utah but I won’t pay for the shitty ass homes that they want so much fucking money for.
A house to watch the climate change from!
depending on where the house is climate change would increase it’s value.
