I think hedge funds buying up properties is just as impactful as retired seniors who have paid off their mortgage deciding to live in their homes until they die
Vast majority of SFR investment properties are housing bros and mom & pop investors. This video is literally about buying rental properties which takes homes off the market for young buyers. This guy is complaining about a problem he’s contributing to and encouraging others to contribute to.
Well, there is that. Except that 6 miles up road there are some new condos for sale with a distant view of the river, and they want $660k and up for a 2-bedroom townhouse sorta thingy with one little garage, two floors above it, and a little roof deck. Nice, but it's worth $200k more than our 1995 ranch on 2 acres back in the woods.
Boomers hold $17 trillion dollars of home equity. Not counting home equity, the median net worth of boomers is only ~$130K. Boomers can’t take credit for asset prices being manipulated higher for 40 yrs while mortgage rates continually have lowered. They didn’t buy their homes in the 70s & 80s for $100k planning for it to be worth $700k today. Yet here we are! No blaming boomers. Let’s be clear on how we all got here.
Can you blame them? The real issue is we aren’t supporting enough growth of new construction and we let hedge funds buy the available supply. Owning your home outright IS A PART OF THE RETIREMENT PLAN.
I'm one of those boomers who is holding onto my 4 bedroom home. I worked for many years to pay for this house and I'm not going to sell it so I can move to Florida and buy a condo that is going to get condemned in the next 20 years. I struggled and saved and built up a lot of sweat equity in my home. I suggest the younger generation do the same. Maybe start with a small fixer upper that they can afford.
That small fixer upper (which would require 10s or hundreds of thousands to fix up) is now starting at 100-200K if you want to live in a reasonably safe, economically viable area.
Thank you for sharing such an insightful video and breaking it down so clearly. Though the current economic climate is challenging, I'm thrilled to share that my initial $6,000 investment has grown into $28,000 every 21 days. It's been an incredible journey, and I'm truly grateful for the chance to celebrate this success with you.
It’s really heartbreaking to see how inflation and recession impact low-income families. The cost of living keeps rising, and many struggle just to meet basic needs, let alone save or invest. It’s a reminder of the importance of finding ways to create financial opportunities. You've helped me a lot Elizabeth Jacob! Imagine i invested $20,000 and received $80,500 after 14 days
You wouldn't unless you were forced to. Just like most people in your same boat. It would be wild to sell if you're locked in that low. And you'd realistically be in a better spot if you just rented it instead of sold it at a rate like that.
I think something that a lot of people don’t talk about is how many single people are buying family homes. In generations past it was families that bought houses. That in addition to slower home manufacturing since the GFC I think has skewed the market higher as well
Regarding your opening statement ....."There is some boomer sitting in the house that you should be owning"??!! I'm NOT a boomer but, I think that your opening statement is ridiculous and self-centered. Why are YOU or any of your audience entitled to the house that they paid for? Where does it say in the Constitution that a younger generation is entitled to someone's house due to their age???
It's a youtuber tactic to get comments/views. If you listen to what else he says, he basically points out it makes no sense for a boomer to sell as things are. BP needs more views/subs/comments/likes
The opening statement is meant to be rhetorical and backed up by the rest of the video. He is not saying that YOU are entitled to the boomer's house. What he is saying is that in times past the older generation would sell their larger home to you and downsize as they no longer needed the functionality of that home. Instead patterns are shifting.
I'm not sure how you can make the economics of SFR rentals work right now with the current interest rate and insurance/rising property tax environment. Unless you already own the property or can assume a low rate mortgage from a seller in a sweetheart deal your margins are super, super tight. Even with rents growing in the areas your speaking of at the assumed consistent rate of 2-5% annually, costs are also rising at that rate. And with a single unit your margins are just going to be super thin regardless. The second you lose the water heater your margin is gone for the entire year. Replace the roof? There's two to five years (depending on your market). In concept, I think you're right that SFR rentals will be in high demand if people can't afford to buy themselves or just don't want to own. But in practice buying those homes right now as investments for long-term rentals is not truly viable unless you are pulling some wild strings on the back end or getting junked properties and forcing appreciation through deep renovations on cheap, private money. Maybe it's a viable strategy in some lower COL suburban sprawl areas but I don't know...seems like a terrible time to being getting into SFR for rental purposes. But the lease-back scenario seems like it could be interesting to explore.
I see alot of boomers selling in texas problem is no one can afford their million dollar mcmansions on acreage that have a 5k+ a month mortgage and 20k a year tax bills attached to them. Literally people making 125k a year STILL cant barely qualify for alot of these overbuilt homes
As of 1/24/25 I have 2 homes for sale, priced correctly. One in Fla on the coast and one in the N.Georgia mountains no offers on either. Im a boomer, its a combination of things, high interest rates, high resale prices, jobs not paying enough, etc etc
In Montreal, we built a lot of condos everywhere thinking the boomers will sell their bigger homes and move into the condos as they retire. That didn’t really happen, so the families with children live in the condos and the boomers stay in their homes. All in all it’s an affordability & supply issue, the younger families have been priced out of the single family housing market. Even though I believe in humble beginnings, i do think my younger friends who are getting married and just starting families have it harder, at least more than I did. I bought my duplex in 2016 that I’m still house hacking until I could buy a house I could afford. I do wish we could have a bigger and more private backyard so my kids could run around safely and have a treehouse. They might become teenagers by the time we could afford something decent…
I am wanting to upgrade to a larger home with room for the kids and in-laws. Currently 4br/3ba w/2700sf, just need a little more separation and would like a few acres. Just can’t really see myself losing that 2.45% interest rate..maybe we rent it out but I really don’t want to deal with bad tenants either. Looking in the $850-1mil range near Nashville and I’ve seen homes go up and then go off market a few months later when they don’t get their asking price. I’m sure something will happen here soon am betting that DJT pushes the Fed to lower rates again. That may good for some like myself with affordability or others waiting for lower rates to make their move but bad for other reasons.
The problem I see isn't boomers staying in their lifelong houses (fine), it's the ones who are going out and buying up newer construction houses and paying insane prices. Two houses next door to me in a new construction neighborhood went from ~$400K each, both bought by boomers (one a younger boomer couple, the other an 80+ year old couple). They're taking the money from selling houses they paid peanuts for and going out and buying up the stuff young families should be buying (but can't because the boomers are bidding up prices and can afford it). Instead of saving for retirement when the economy was good, they just relied on their house as a retirement plan.
My parents are not going anywhere even though CA is a sh*thole right now. They paid off their mortgage. My in-laws are not going anywhere, they bought their home in Laguna Beach for $500k and it's worth a few millions now. Hubby and I (Gen X) are not going anywhere, both our mortgages are 3%, as much as we want to downgrade for a small luxury condo, we can't. A 1 bedroom is more expensive than our 2,700 sq ft home with ocean view.
Interesting and timely video! I'm handling my dad's estate which includes a fairly large 2 generational home which my grandfather built in 1936. Neighbors say that it will be demolished to build 3 new homes but I'd love to see a new family live there. Still a ttcouple of months off but food for thought with the "Crash Bro" bottom feeders have overpopulated TH-cam.
@@Singlesix6 We don't want our parents home either, but keeping it in case a family member is ever in need of a home such as divorce, lost of job, for grandkids, etc. Never know what the future holds.
I think hedge funds buying up properties is just as impactful as retired seniors who have paid off their mortgage deciding to live in their homes until they die
Boomers almost always have multiple homes too
Yeah but they make up a small majority of home ownership, I think 5%. Vast majority are the over 60 crowd.
@@dakotathompson8062 Pure fantasy and nonsense. Maybe you hang out with the polo players and jet setters. I'm 74 and don't know any.
@@Singlesix6 I know multiple people in their 70s that own 2 or 3 homes.
Vast majority of SFR investment properties are housing bros and mom & pop investors. This video is literally about buying rental properties which takes homes off the market for young buyers. This guy is complaining about a problem he’s contributing to and encouraging others to contribute to.
Why would boomers sell their lifelong home with all those memories to then have to go pay $200,000 for a shitty one bedroom condo?
Well, there is that. Except that 6 miles up road there are some new condos for sale with a distant view of the river, and they want $660k and up for a 2-bedroom townhouse sorta thingy with one little garage, two floors above it, and a little roof deck. Nice, but it's worth $200k more than our 1995 ranch on 2 acres back in the woods.
It’s not fair to blame boomers for being resourceful and smart
Boomers hold $17 trillion dollars of home equity. Not counting home equity, the median net worth of boomers is only ~$130K.
Boomers can’t take credit for asset prices being manipulated higher for 40 yrs while mortgage rates continually have lowered. They didn’t buy their homes in the 70s & 80s for $100k planning for it to be worth $700k today. Yet here we are!
No blaming boomers. Let’s be clear on how we all got here.
Can you blame them? The real issue is we aren’t supporting enough growth of new construction and we let hedge funds buy the available supply. Owning your home outright IS A PART OF THE RETIREMENT PLAN.
I'm one of those boomers who is holding onto my 4 bedroom home. I worked for many years to pay for this house and I'm not going to sell it so I can move to Florida and buy a condo that is going to get condemned in the next 20 years. I struggled and saved and built up a lot of sweat equity in my home. I suggest the younger generation do the same. Maybe start with a small fixer upper that they can afford.
That small fixer upper (which would require 10s or hundreds of thousands to fix up) is now starting at 100-200K if you want to live in a reasonably safe, economically viable area.
Thank you for sharing such an insightful video and breaking it down so clearly. Though the current economic climate is challenging, I'm thrilled to share that my initial $6,000 investment has grown into $28,000 every 21 days. It's been an incredible journey, and I'm truly grateful for the chance to celebrate this success with you.
It’s really heartbreaking to see how inflation and recession impact low-income families. The cost of living keeps rising, and many struggle just to meet basic needs, let alone save or invest. It’s a reminder of the importance of finding ways to create financial opportunities. You've helped me a lot Elizabeth Jacob! Imagine i invested $20,000 and received $80,500 after 14 days
Finding yourself a good broker is as same as finding a good wife, which you go less stress, you get just enough with so much little effort at things
Elizabeth demonstrates an excellent understanding of market trends, making well informed decisions that leads to consistent profit
I'm surprised that you just mentioned and recommend Elizabeth Jacob. I met her at a conference in 2018 and we have been working together ever since.
I'm locked into a 2.25% mortgage, why would I sell???? Not until mortgage rates drop! It's common sense!
You wouldn't unless you were forced to. Just like most people in your same boat. It would be wild to sell if you're locked in that low. And you'd realistically be in a better spot if you just rented it instead of sold it at a rate like that.
I think something that a lot of people don’t talk about is how many single people are buying family homes. In generations past it was families that bought houses. That in addition to slower home manufacturing since the GFC I think has skewed the market higher as well
Gen X. I was 46 before I could afford an actual house. They can carry me out in a box, I don't care how many extra bedrooms I have.
Regarding your opening statement ....."There is some boomer sitting in the house that you should be owning"??!! I'm NOT a boomer but, I think that your opening statement is ridiculous and self-centered. Why are YOU or any of your audience entitled to the house that they paid for? Where does it say in the Constitution that a younger generation is entitled to someone's house due to their age???
exactly
Agree. Why would they sell when they are building generational wealth for their kids? That would be dumb.
No, the opening statement is sad and greedy and entitlement at its finest. But sad first.
It's a youtuber tactic to get comments/views. If you listen to what else he says, he basically points out it makes no sense for a boomer to sell as things are. BP needs more views/subs/comments/likes
The opening statement is meant to be rhetorical and backed up by the rest of the video. He is not saying that YOU are entitled to the boomer's house. What he is saying is that in times past the older generation would sell their larger home to you and downsize as they no longer needed the functionality of that home. Instead patterns are shifting.
I'm not sure how you can make the economics of SFR rentals work right now with the current interest rate and insurance/rising property tax environment. Unless you already own the property or can assume a low rate mortgage from a seller in a sweetheart deal your margins are super, super tight. Even with rents growing in the areas your speaking of at the assumed consistent rate of 2-5% annually, costs are also rising at that rate. And with a single unit your margins are just going to be super thin regardless. The second you lose the water heater your margin is gone for the entire year. Replace the roof? There's two to five years (depending on your market).
In concept, I think you're right that SFR rentals will be in high demand if people can't afford to buy themselves or just don't want to own. But in practice buying those homes right now as investments for long-term rentals is not truly viable unless you are pulling some wild strings on the back end or getting junked properties and forcing appreciation through deep renovations on cheap, private money. Maybe it's a viable strategy in some lower COL suburban sprawl areas but I don't know...seems like a terrible time to being getting into SFR for rental purposes. But the lease-back scenario seems like it could be interesting to explore.
I see alot of boomers selling in texas problem is no one can afford their million dollar mcmansions on acreage that have a 5k+ a month mortgage and 20k a year tax bills attached to them. Literally people making 125k a year STILL cant barely qualify for alot of these overbuilt homes
As of 1/24/25 I have 2 homes for sale, priced correctly. One in Fla on the coast and one in the N.Georgia mountains no offers on either. Im a boomer, its a combination of things, high interest rates, high resale prices, jobs not paying enough, etc etc
In Montreal, we built a lot of condos everywhere thinking the boomers will sell their bigger homes and move into the condos as they retire. That didn’t really happen, so the families with children live in the condos and the boomers stay in their homes. All in all it’s an affordability & supply issue, the younger families have been priced out of the single family housing market. Even though I believe in humble beginnings, i do think my younger friends who are getting married and just starting families have it harder, at least more than I did. I bought my duplex in 2016 that I’m still house hacking until I could buy a house I could afford. I do wish we could have a bigger and more private backyard so my kids could run around safely and have a treehouse. They might become teenagers by the time we could afford something decent…
I am wanting to upgrade to a larger home with room for the kids and in-laws. Currently 4br/3ba w/2700sf, just need a little more separation and would like a few acres.
Just can’t really see myself losing that 2.45% interest rate..maybe we rent it out but I really don’t want to deal with bad tenants either.
Looking in the $850-1mil range near Nashville and I’ve seen homes go up and then go off market a few months later when they don’t get their asking price.
I’m sure something will happen here soon am betting that DJT pushes the Fed to lower rates again.
That may good for some like myself with affordability or others waiting for lower rates to make their move but bad for other reasons.
The problem I see isn't boomers staying in their lifelong houses (fine), it's the ones who are going out and buying up newer construction houses and paying insane prices. Two houses next door to me in a new construction neighborhood went from ~$400K each, both bought by boomers (one a younger boomer couple, the other an 80+ year old couple). They're taking the money from selling houses they paid peanuts for and going out and buying up the stuff young families should be buying (but can't because the boomers are bidding up prices and can afford it). Instead of saving for retirement when the economy was good, they just relied on their house as a retirement plan.
My parents are not going anywhere even though CA is a sh*thole right now. They paid off their mortgage. My in-laws are not going anywhere, they bought their home in Laguna Beach for $500k and it's worth a few millions now. Hubby and I (Gen X) are not going anywhere, both our mortgages are 3%, as much as we want to downgrade for a small luxury condo, we can't. A 1 bedroom is more expensive than our 2,700 sq ft home with ocean view.
Sale-Leaseback is almost equivalent to a reverse mortgage.
Interesting and timely video! I'm handling my dad's estate which includes a fairly large 2 generational home which my grandfather built in 1936. Neighbors say that it will be demolished to build 3 new homes but I'd love to see a new family live there. Still a ttcouple of months off but food for thought with the "Crash Bro" bottom feeders have overpopulated TH-cam.
Boomers are the gift that keeps giving.
To our children, yes. And the IRS and the state tax department, and expensive Medicare with IRMAA and a supplemental plan. Oh yeah, we give.
My dad is a boomer he is retired and does burr for fun.
You are right, will never sell bec. kids will inherit it.
Most kids have their own and don't want the old folks house. Ours don't.
@@Singlesix6 We don't want our parents home either, but keeping it in case a family member is ever in need of a home such as divorce, lost of job, for grandkids, etc. Never know what the future holds.
I liked being known as a Latchkey Kid better than as a Gen Xer.
Boomers tend to ruin everything.
Spare us the drama queen lies and fake hysterics.
@@Singlesix6 HAHAHAHA ... says the guy that imagines hysteria and replies with hyperbole.
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