Earning $100,000 used to mean something. Now you can barely afford to buy a home- Here’s the big problem

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For many people, when we were starting out in our careers, earning a six-figure salary was the ultimate goal. If you made $100,000 or more, you were considered relatively successful. The compensation would afford you the opportunity to fulfill the American dream—owning a home with a white picket fence in a lovely neighborhood with good schools for when you have children. Fast-forward to today and that has all changed.

According to the Wall Street Journal, there is a growing trend of $100k-earning professionals electing to rent instead of purchasing homes. Almost 20% of households earning $100k or more are bucking historical norms and renting apartments. A $100k income is still considered a comfortable living, dependent upon the city. To put things into perspective, the median U.S. household income, according to the Census Bureau, was $63,179 in 2018.

Here’s why this trend is an issue. The reasons for renting—compared to buying a home—are complex. Due to exceedingly high student-loan debt, burdensome personal expenses (such as insurance and health care costs), leased cars, credit card debt, smartphones, utility bills and other expenses have made it difficult for potential buyers to save enough for the down payment on a home.

Continue reading… “Earning $100,000 used to mean something. Now you can barely afford to buy a home- Here’s the big problem”

Soaring second home ownership hitting young people

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The number of British people who own a second home, buy-to-let or overseas property has doubled since 2001, says think tank the Resolution Foundation.

  • While the number of millennials who own a home continues to fall, one in 10 people now own an additional property.
  • Just 37% of people born in the 1980s managed to buy a home at the age of 29, compared with half of those born in the 1960s.
  • Wealth from owning a second home has risen since 2001 to almost £1 trillion.
  • Buy-to-let property is now the most common form of property wealth, having grown by 58% since 2006-08, the report found.

Continue reading… “Soaring second home ownership hitting young people”