By in Personal

How Young Couples Got a Good Financial Start

"Once upon a time, about, oh, seventy years ago..."

Yes, this is about past times, and for good reason. You've heard it said 'we learn from past mistakes' right? Well what about from past successes?

In the 1940s and 1950s (and, really, since time immemorial) newly married couples often lived with one set of parents or the other until they could build up a decent nest egg and go out on their own. But there was another way. They could move into an apartment and live in one of those, while they built up that nest egg.

How can that be? Rents for apartments run about the same money as mortgages for houses. Now are you ready to learn of a success in the past?

It was not always that way! Rents use to be a fraction of a mortgage payment. That's right. A fraction.

My family started out living with my grandmother (Grandfather had died two years before). Then they obtained an apartment in Delaware Township, Camden County, New Jersey. During this time, money was building in their bank account.

So what happened? You KNOW what happened, don't you? Apartment owners realized this. They wanted everybody's money! Greed.

Ah. Greed. A lesson of the past. GREED WORKS. Sigh.


Image Credit » Pixabay https://pixabay.com/photos/apartments-architecture-balconies-1845884/

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Comments

MegL wrote on April 24, 2019, 9:11 AM

Yes, rents used to be much lower than mortgages. I don't think it is down to apartment owners being greedy though but more a question of supply and demand. There are not enough new homes being built in the uk, so supply is low and the prices high. That means more people needing to rent, again, demand high, supply low. They need to build more houses.

VinceSummers wrote on April 24, 2019, 1:23 PM

Here, everyone wants to build and sell houses. We have, if anything, a glut. Houses don't sell. So it looks to be a matter of geography.

lookatdesktop wrote on April 24, 2019, 9:58 PM

My father paid a simple once a month 65 dollars on the house mortgage. Back in 1963, Dallas had many homes that were basically cookie cutter homes, Two bedroom, one bath and adjacent garage. About a quarter acre lots. Now the costs are so high people have to have 2 jobs each to keep up the rent or payments for a home. It is totally about greed.

VinceSummers wrote on April 25, 2019, 8:05 AM

You've hit on a great topic here. There are two aspects to this. The one you've just mentioned, and another.

Before WWII, most families in the U.S. included a working husband and a stay-at-home wife. "Keeping house" says the U.S. Census. So the family *had* to exist on a single income. And exist they did.

But for those few years during the war, the women became involved heavily in the "war effort".

After the war, they apparently did not wish to go back to the somewhat sedentary existence of a housewife. They went to work! Now there were two incomes.

No doubt the argument in favor of it was the family could live a better life. To some extent, that should have been true, though if you think about it, it was probably to give a reason so they could get out of the house.

Now that money was more available to two worker families, business men see a golden opportunity to express *their* greed.

"People have more money. They can afford to pay more. RAISE PRICES!" Now you have two people working but generally living no better than if there were only one worker in all families.

Last Edited: April 25, 2019, 8:11 AM

melody23 wrote on May 2, 2019, 3:37 PM

Our last rented flat we rented from a friend of the family and got it super cheap at £400 a month in an area where a flat like that should have been nearer the £600 mark, we now have a mortgage on a similarly sized flat, although in a different area for £264. We couldn't afford to keep renting and save for a deposit there is no doubt in my mind that had I not received a small inheritance which was just enough to cover the minimum 5% deposit (paid all the fees etc on a credit card) we would never have been homeowners - that's what's wrong with the way it works these days. with my income I could afford a mortgage no problem pass all the credit checks etc but the deposits are the issue, no one who rents can afford to save for one. More and more people are moving back in with their parents because they simply cant afford rents and/or they want to save for a deposit