Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Ruthmarie, it is difficult to understand why our millenials are still throwing away money, and the tiny homes are intriguing to many of any age.

Jan 28, 2018 04:27 PM
Ruthmarie Hicks

Thank you Joan. It drives me NUTS!  Last year I had a young woman whose parents offered to pay the entire downpayment on a 1BR condo. She couldn't quite afford a 2BR and that killed the deal. She was worried about how she would manage if she got married and started a family! HUH???? You aren't even engaged, let alone married with children! She is still throwing away money on rent (far more than the outlay on a condo). 

Jan 28, 2018 05:16 PM
Silvia Dukes PA, Broker Associate, CRS, CIPS, SRES
Tropic Shores Realty - Ich spreche Deutsch! - Spring Hill, FL
Florida Waterfront and Country Club Living

Ruthmarie, you are right about starting out small and trading up in time. It's a proven method that works.

Jan 28, 2018 04:51 PM
Ruthmarie Hicks
Keller Williams NY Realty - 120 Bloomingdale Road #101, White Plains NY 10605 - White Plains, NY

Hi Silvia, 

Yes, this method has been a staple for building wealth and has withstood the test of time. The rents keep rising, and they just won't get the message...Some of them will never be able to own becuase of the amount of money wasted on rent...

Jan 28, 2018 05:20 PM
Tammy Lankford,
Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 - Eatonton, GA
Broker GA Lake Sinclair/Eatonton/Milledgeville

Small maybe, but for me tiny would be the death of me.  I need space, of course I have 4 pets.

Jan 28, 2018 08:50 PM
Ruthmarie Hicks

I hear you Tammy. I have two huskies and am facing a downsizing. Fortunately, both are senior dogs. The oldest one will be 14 in June. So they aren't that active. But it STILL is a blow to me to have to downsize. 

However, for younger people and people who really have no choice, it is better to own than to rent. It just is. 

Jan 28, 2018 09:51 PM
Erika Rae Albert, Austin Real Estate Expert
E*Rae Realty - Austin, TX
Exceeding Expectations in Every Transaction

I think many don't even realize that homeownership is an option.  Lots of people think you need 20% down, and don't even know about all the other options out there.

Jan 28, 2018 09:45 PM
Ruthmarie Hicks
Keller Williams NY Realty - 120 Bloomingdale Road #101, White Plains NY 10605 - White Plains, NY

Hi Erika, 

As I said in another comment, that doesn't seem to be the reason in a lot of cases. I live in NY and the cost of living for people around here (20 miles north of Manhattan) is really beyond crazy. What seems to be happening is that the younger ones have set their bar of "must-haves" way too high. They aren't going to get there while paying $3k/month for a 1BR box.  Purchasing a small co-op would cut that outlay in HALF.

But they need to be willing to take baby steps and build equity. I've seen cases where the parents or a relative was willing to give them the downpayment, but they refused because what they could buy wasn't "big enough". Really? Seriously? Someone is literally GIVING you that leg up and you won't take it? Meanwhile their rent is increasing by double digits a year...WOW! 


Jan 28, 2018 09:59 PM
Ruthmarie Hicks
Keller Williams NY Realty - 120 Bloomingdale Road #101, White Plains NY 10605 - White Plains, NY

Hi Edward, 

You missed the entire point of the post. The option of living in a larger space isn't there to begin with.

They are either living in a 750 sf box for about $2500/month ($30,000 a YEAR) or they buying the same thing and getting some control over their outlay. If they stay in their rental, they have forked out $150,000 in 5 years, and that's assuming that the rents don't rise. Worse, they are probably no further forward in affording their dream home because the rent is eating them alive. 

At least with ownership, you build a thing called EQUITY. You are paying down the loan with every monthly payment you make while (if you keep it REAL - and small) you are cutting your outlay by 1/3 to 1/2. In that same five year period, that can lead to the ability to buy something more spacious. 

So rent a small box and get nowhere or BUY a small box and get somewhere. Those are really the only options. 

Apr 08, 2019 11:23 AM
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