TikTok and The Growing Rage and Divide Over Housing in America
By: Jennifer Beeston
Tags: Real Estate Investments, Social Media, Housing, Mortgage, Real Estate News

TikTok and The Growing Rage and Divide Over Housing in America

Just some of the comments. And yes I have been known to “clap back”

Recently, I posted a video on Tiktok about a way to build wealth through buying multiple properties and it received over 250,000 views and hundreds of comments. Keep in mind it is a 60 second video so it is a very broad overview and does not delve into details. It is tiktok…

This is the basic concept that enraged people. There are many ways to build wealth, but I have seen clients utilize this method to slowly grow their real estate portfolio. The basic concept is you buy house #1 live there for at least two years and when you are ready for a bigger home you buy house #2 while keeping house #1 and renting it out. You do this over time as you work your way up from “Starter home” to “Dream home”, or in many cases “Starter home” to “Retirement home”. Each house you would live in for a minimum of two years while you save up a down payment for the next home. In many cases you may live in a house for 5 years or more until you move to the next one. It depends on your unique and personal situation. The benefit of living in each home is that when you get a mortgage it will be considered an owner-occupied mortgage which has a lower rate and requires less down. When you turn the property into an investment you get to keep that nice owner-occupied rate which helps the property to cash flow in the future. There is nothing too profound about this concept as the basic principle is to hold the property for as long as possible rather then selling it buy the next one. It is a mindset that has been around for hundreds of years. Below is the video

https://vm.tiktok.com/ZMR5NMRyP/

Pretty basic, tame video right? Little did I know I was stepping on a powder keg. Based on the comments, you would have thought I told people to “eat the poor.” If you are in real estate, I urge you to go to my tiktok @jenniferbeeston to see the comments as it is a great view into the growing divide and rage we have in housing of the haves and have nots. Half the comments were positive from people who were utilizing that method and having success or wanted to utilize that method. The other half well… here is a sampling of the comments I received

“Terrible moral choice. Hoard first time homebuyers’ properties. I hope all your tenants stop paying rent”

“Bad idea.This method creates mass shortages, particularly locking out first time home buyers.”

“ The housing market is rigged! I can’t believe you don’t know this! Many families and disabled cannot buy a home!! Like the majority!!!”

The level of hate and rage was palatable. At first, I was really angry thinking I am giving you the path, showing you the way, this is all something anyone can do. I was also upset as for years I have been doing extensive, long videos on YouTube about mortgage education to help people understand what they are getting into and make the right choice for them. I know people can do this, I have helped them do it. Yes, in extreme cases it can take them years to get ready to buy but it can be done. Anything is possible if you plan. Why are there so many “haters”? Why is this video so toxic to many people? But then I took a step back and reflected.

There is an us vs theme narrative being sold in the United States media right now and that is where this needs to start the change. Instead of countless article after article about how housing is unaffordable and why people will never get a house, we need to focus on all the programs available to help people get a house and efforts to make housing more affordable. If every time you open a paper or click on Apple news you hear horror stories about the Real Estate market of course you will feel like it is impossible.

I am here to say it is not impossible. One of my fondest client memories is I helped a woman who was 72 buy her first house. She received only social security and had very little to put down and we were able to get her a house. She was so happy and said to me “Jennifer I never thought I would own a house. This is my dream come true.” She really meant it. The purchase of the house was transformative for her. For all those years prior, she had never tried because she thought it was unattainable. In reality she 100% could have gotten a mortgage years earlier but because of her perception of what was attainable she never tried. She had only tried with me because a friend had told her it was possible and encouraged her to reach out. He had shared his tale of success. And that I think is the key to changing this narrative.

I think we need more and more people sharing tales of what is possible and focusing on the positive rather then the repetitive and click bait narrative of Us VS Them housing market. Yes, it drives clicks and makes news providers money, but it is creating a growing chasm which is not good for our society. People need to know that they can and not constantly be told it is impossible and sadly that is what the majority of articles are. Is it fair and accurate in certain parts of the country that housing is unaffordable? Yes, it is but that is not true for the bulk of the country. As a mortgage lender in 46 states, I see it all and I am here to tell you that yes, you can still buy a home for $100,000 in the United States. Instead of always focusing on San Francisco and New York our news coverage should focus on the entire country and what is true for that. It should focus on tales of success.

I have taken this experience as a sign that I need to start sharing tales of success.

What do you think? Do you think there is a divide in housing that is growing wider by the day? Do you think tales of success will help? What will help the divide? Weigh in

Jennifer Beeston NMLS 247743