Do young homeowners have a sense of entitlement?

[DianneS]

I think that where you live in Canada makes a HUGE difference to how soon you pay off your mortgage. If you are young couple living in metro Vancouver your down-payment alone can be almost as much as the entire cost of a home in some parts of the country. So, yes, it can easily take until your mid fifties to pay off a mortgage. I'm in my mid-fifties so I have experienced the ups and down of interest rates. Things can get very ugly.

Every generation has wanted to have more than the generation that preceded it....mine included. I grew up in a house with a family of seven, one bathroom and three bedrooms (plus an extra we built in the basement). When my DH and I bought our first house, which we still live in, it was a 2100 sq ft., three bedroom plus den and family room, split-level house. Nowadays it's a starter home for many people.

Personally, I think the 'older generation' has been painting the younger generation with the same brush for hundreds of years. We all think the ones coming up expect more, spend more and work less hard than we did....it seems to be the human condition. I know many young people who manage their money extremely well, as well as some who have a sense of entitlement and don't. But I can say the same thing about my generation.

[CrazyQT]

I think tuition fees should be lowered so that those young people graduation don't owe hundreds of thousands of dollars right out of University.

It sickens me to think that my Daughter and Son In Law (who just graduated as an RN) will be paying back their student loans for years and years. Even with both of them working their way through school to pay for tuition and accommodations, they are still eyeball high in loans. Hubby and I are going to do what we can to help them out but it will still be years before they are school loan free and able to start saving for a home. It sickens me that an education costs so much money and the poor kids are not even guaranteed a job in their field. In my case, my daughter and SIL were very very fortunate to land jobs where they did their rotations so I am VERY thankful for that. It helps slightly but still disheartening to know how much debt they have racked up just to land a decent job. They own one car (given to them from a relative that upgraded.) They live in an apartment with average rent and don't have expensive things.

I don't think they are spending beyond their means. Would like like a new car, of course, who wouldn't but right now they are focused on paying back the student loans and adding to their saving so they can get out of the apartment and into something that will gain them equity.

[Midnightly]

It sickens me that an education costs so much money and the poor kids are not even guaranteed a job in their field. In my case, my daughter and SIL were very very fortunate to land jobs where they did their rotations so I am VERY thankful for that.

this definitely is part of the problem, they are fortunate to have also picked a career where there is jobs available (pretty much everywhere i look there seems to be a shortage of doctors and nurses) where as some careers the amount of jobs available to the amount educated for the job are really off balance (there doesn`t need to be 200 new teachers produced every year if there are only 10 teaching positions available kinda thing)

[Granger]

Thanks for the note about considering your interest rate increasing. We hope to sell and buy in the next few years, and this thread will ensure we have that discussion with our lender. Unfortunately, talking about money is often taboo for families. Glad there are forums like this to consider all points of view.

That being said, I think you will find most young people, like me, on this forum are quite frugal. I have no debt other than mortgage, but live on a strict budget. We are patient with our money. If we want something, we save and wait. I finally bought an Apple laptop. It took me four years to save for it.

It is easy to want to parent young finances. We want the best for the next generation. Those who are wise will listen and those who are not will learn the hard way. As many have said, the savers and the spenders are not new. I do however think that there is a greater sense of entitlement.

[anastasia1009]

I really think it depends more on the person, not how old they are.

We are in our early 30's and our morgage will be paid off in less then 4yrs.
We travel, eat out, have 2 cars, reno'd the house and buy new things.
But we don't go completely over board.

I agree it depends on the person not the age. We got a mortgage at age 37 at 41 paid off and now both of us are in school but hubby is getting his PhD so it is difference and he makes a good living and soon teaching for a university. He travels a lot with work now and I love going to concerts but we save and help others. We share with other family members and I shop & cook for his uncle some times.
My parents were mortgage free by 49 but that was in 1988 and my dad is in the same house. I think everyone is different.

[jennrav]

My dream of having a house are so strong right now. Loud neighbour. Ended up calling the super who got them to disconnect their bass speaker. Dreaming about owning a detached home on acres of land. Someday.

U should move to SK...lotsa jobs here and lotsa open space so u don't have to have noisy neighbors!!!!

[xox2010]

I'm in my early 20's and won't be purchasing a house for quite some time. From my perspective, I think that some young people are entitled. The truth is, iphones, Macbooks and even cars aren't necessary purchases.
I paid my own way through college and paid cash for my car. I don't get to go on vacation twice a year, my phone is a couple years old now, my car is 5 years old etc but I am debt-free right now.
The one thing I want to bring up about student loans is that the government gives a lot of people grants and bursaries. I never qualified for anything because I worked during school and saved my money, instead of spending it on booze, expensive clothes and gadgets.
In general, students who take out loans end up paying less for their education because of that. The money is interest free too (for OSAP) for 6 months after graduation.The biggest problem is that students are in majors that are completely useless. Psychology, humanities, liberal arts are not going to land you a job. Harsh, I know, but it's the truth.

[SassyAshley]

I have to say I do not think it is really a generation thing as much as a person to person thing. I know many people have looked at me, I am in my late 20s and have referred to me as being spoiled or entitled but in fact these people know nothing about me. Do I drive a nice car yes, do I own a house yes (well kind of I bought a house with my mom so I co own it), do I have some gadgets and what not yes, do I have some nice clothes yes. But at the end of the day I work very hard for what I have. I currently work 50 to 60 hours and other than my house which I do have a mortgage on everything I own is paid for. I do not live in debt all of my bills are paid on time, I do not carry balances on my credit cards, they are paid for well before their due date. Could I live well before my means sure but I do not as I do not like being in debt.

I think at times looks can be deserving so unless you know for the fact how someone is living what you see is not always what you get.

I do agree with what many have said when it comes to where you live in a huge factor. I have no discovered for where I live it is one of the most expensive areas in our region (why is it so expensive no idea, we have nothing here we live in the boonies, but it is housing prices are high and so are taxes) but this is where I need to live for my job as well as my mom's. As well school is a huge factor, I did not finish my post secondary education, I will admit I dropped out, school was never my strong suit. I am very lucky I was able to get a great job without post secondary education and left school before I went into debt. My half sis is currently in University and the costs are just outrageous by the time she pays for everything. Her housing costs alone since she is lives in a University Town are shocking and to be honest disgusting, I pay less for my mortgage than she pays in rent and not a small amount her rent is over twice what my mortgage is. But for the course my sis is in this where she needs to be and she cannot afford a car right now she is needs to live close to school and pays to do so. So all of these factors do factor in to how you live your life.

[MrsSunshine]

I agree it depends on the person not the age. We got a mortgage at age 37 at 41 paid off and now both of us are in school but hubby is getting his PhD so it is difference and he makes a good living and soon teaching for a university. He travels a lot with work now and I love going to concerts but we save and help others. We share with other family members and I shop & cook for his uncle some times.
My parents were mortgage free by 49 but that was in 1988 and my dad is in the same house. I think everyone is different.

does this say you got a mortgage at 37 and 41.. or at 37 and paid it off at 41 only 5 years later?

[JennyFromTheRock]

This rant is about an ongoing argument that I’m having with my friend Frank, a human resources professional (we’re both in our late fifties). The heated debate started when we were discussing a CIBC poll finding that Canadians now expect to be mortgage free at age 57.

According to the poll, non-mortgage debt is a major reason why younger people expect to take longer in paying for their homes these days. My dad repaid his mortgage at age 48, despite having to support 6 sons and our stay-at-home mother.

When I commented that many of my nephews and nieces are new homeowners who seem to have a sense of consumer entitlement, acting like they have the right to overspend on new vehicles, the latest gadgets, fancy restaurant meals and luxury clothes, Frank went into attack mode lecturing me on my sanctimonious close-mindedness about today’s youth. Frank’s argument is that young people today are no worse off than my dad was during the early 1980s when he made his last mortgage payment. My worry is what’s going to happen to free-spending young homeowners when interest rates go up.

Am I being unfair in my assessment that youngsters today “want it all, and want it now” compared to older generations? My dad grew up during the Depression, when many Canadians didn’t have a choice about living within their means and delaying gratification until they had money.

Your thoughts about today’s young homeowners as consumers, and do you have any suggestions for them?

I think everyone now days wants more than they did years ago, not just the youth, but everyone because its a more advanceed society.

I am a young home owner, I also like nice clothes, new gadgets, fancy foods, and over priced new vehicles.... but I don't think its because I have a sense of self entitlement.... I think its because Its how I want to live. As for what happens when the interest goes up.... well, that will suck, but we will pay it and still enjoy our lifestyle because thats our choice. I don't think its fair for a third party to look in a judge some else's spending habits unless they have asked you to pay their bills. I'm not trying to be mean or even rude, but really its not up for discussion.

[K8's Fate]

This rant is about an ongoing argument that I’m having with my friend Frank, a human resources professional (we’re both in our late fifties). The heated debate started when we were discussing a CIBC poll finding that Canadians now expect to be mortgage free at age 57.

According to the poll, non-mortgage debt is a major reason why younger people expect to take longer in paying for their homes these days. My dad repaid his mortgage at age 48, despite having to support 6 sons and our stay-at-home mother.

When I commented that many of my nephews and nieces are new homeowners who seem to have a sense of consumer entitlement, acting like they have the right to overspend on new vehicles, the latest gadgets, fancy restaurant meals and luxury clothes, Frank went into attack mode lecturing me on my sanctimonious close-mindedness about today’s youth. Frank’s argument is that young people today are no worse off than my dad was during the early 1980s when he made his last mortgage payment. My worry is what’s going to happen to free-spending young homeowners when interest rates go up.

Am I being unfair in my assessment that youngsters today “want it all, and want it now” compared to older generations? My dad grew up during the Depression, when many Canadians didn’t have a choice about living within their means and delaying gratification until they had money.

Your thoughts about today’s young homeowners as consumers, and do you have any suggestions for them?

I don't think you can lump all young homeowners into one group.

I'm 34 and have paid off my home. My dbf owns a separate home and has only 10% of the homes value left to pay off. Also, neither of us have had help from our parents. Eventually we'll be selling both houses and looking to purchase a bigger home or build our own. We'll again have a small mortgage or be mortgage free when we combine our wealth.

I have lots of friends in similar situations. Onto their second or third homes after paying off their first home and upgrading.

Yes, there are irresponsible individuals. However, I think they exist in every generation.

[nwf1946]

As long as you can pay off the mortgage before you retire especially for those now under 40 I do not see a problem. I think you only have a problem if you cannot pay yours bills from month to month. If each year you are deeper in debt then the year before without changing your assets the you are in trouble. Keep in mine nice pensions are getting to be a rarity.

[DianneS]

As long as you can pay off the mortgage before you retire especially for those now under 40 I do not see a problem. I think you only have a problem if you cannot pay yours bills from month to month. If each year you are deeper in debt then the year before without changing your assets the you are in trouble. Keep in mine nice pensions are getting to be a rarity.

Interesting way to look at it. To be fair, people who are unable to buy a house will pay rent every month until the day they die. Not a pleasant picture, but reality for many people. For those who end up retiring with a paid for house, it is certainly a leg up on where they could have been.

[mcandlish]

I agree and disagree - being in my late 20's and having a fair understanding of my friends finances - and problems associated. I myself am not the norm, I'm a single mom with no debt, I pay everything in cash and am 1/2 way to my goal for a down payment. I buy my clothes used, don't take annuals trips to Mexico, and budget. I know I'm different that most of my peers who have massive amount of consumer debt and need brand new clothes for each season.

It's hard to generalize a generation when they are frugal people and spendy people in each age group. The thing I do know is that the cost of things compared to wages is a lot different for myself than what my parents where faced with, from talking in great lengths to my Mother and the situation they were in when they were my age.

[Midnightly]

Interesting way to look at it. To be fair, people who are unable to buy a house will pay rent every month until the day they die. Not a pleasant picture, but reality for many people. For those who end up retiring with a paid for house, it is certainly a leg up on where they could have been.

but on the flip side even if your mortgage is paid off it still costs money to own a house which you don't have with renting.. basics like upkeep, repairs, taxes, garbage/water, yardwork, snow removal can often cost a fair bit which are often covered in rent