Absolutely. And with the fear of not being able to retire comfortably, people might be tempted to make risky investments or neglect proper financial planning, which could spell trouble for their portfolios in the long run.
And let's not forget how the global economy plays into all of this. Economic instability, inflation, and market fluctuations can further complicate matters and add to people's financial worries.
It's crucial for individuals to diversify their portfolios, seek professional financial advice, and stay informed about market trends to navigate these challenges effectively.
Thanks for sharing your experience! I've been managing my portfolio myself, but it's not working out. Do you have any recommendations for a good investment advisor? I could really use some help.
The challenge is that whether you rent or own, there are unavoidable costs associated with maintaining a permanent residence-property taxes, insurance, and utilities like electricity, gas, and water. In places like California, where I currently live, the high cost of living has pushed many people to opt for alternatives. It’s not uncommon to see individuals living in tents to avoid property-related expenses, and the number of people I encounter who reside in their cars is truly surprising. It’s a sign of how extreme the situation has become.
The market continues to escalate daily. Home prices are exorbitant, and mortgage rates have surged beyond 7%. I often debate whether it's smarter to park my cash in the stock market and wait for a potential housing crash or bite the bullet and purchase a home now.
I understand your concerns. I'm 50 and planning to retire early, and the uncertainty of the financial future, especially around housing and investments, is concerning. I’m also considering my first stock market investment, but the volatility this year has been intimidating.
I consistently recommend Rebecca Lynne Buie as my top choice. She is well-known for her expertise in financial markets and has an impressive track record. I highly endorse her services.
One thing that people don't consider is when comparing renting vs buying is the assumption the individual rents the same value property as they would buy. This is normally not the case and can skew the comparison. The type of property someone purchases will tend to be dictated by the maximum amount they can borrow and the size of their deposit, even if this means buying a larger or more expensive property than they need. In renting however, I would suggest more often that not, people tend to rent cheaper properties than they would otherwise buy.
Also the down payment. Coming up with 20% is very tough. People don’t have this cash so they stuck renting. When put 3% down your monthly payment go way up and you loose money to ridiculous pmi
Yes but…..you are putting that money into something you can own and sell for $$. Renting may be cheaper but your money is being thrown away instead of invested.
I will never be a homeowner again ! I had 4 assessments in one year and of course the HOA Fee’s It was draining . And than had to repairs the owners ceiling because I had a leak coming from my bathroom . I had to make repairs that cost A lot. . ( unfortunately it wasn’t the common area so I had to pay) so I’m renting and I put in my savings as I was still paying HOA FEES and another 10 percent of my pay . I’m renting from a condo owner elsewhere and Thank goodness he hasn’t raised my rent for 3 years. So I feel like I’m winning. And to enjoy the freedom to travel more on top of it 🥰 also I’ve watched to for so many years and your AMAZING .🤗🙏🏻
Condos also have an extreme negative - the HOA can specially assess you at any time for any amount. Say the elevator breaks or the roof needs replacing - boom, they ask each owner to cough up thousands of dollars and you are obligated to pay. Your neighbors are your partners and you have to share all costs, and oftentimes you may not agree with the spending. I would avoid HOAs at all costs and wait until you can afford a single-family home (if possible!).
The difference after 5 years really starts kicking in on home ownership as rental rate increases really get so much larger than the mortgage. I always like to think of home ownership kind of like an annuity, you are paying a little more up front for the guarantee of a fixed rent for the rest of the time you stay in that property. This will extend to a large extent to a new property if you take all the proceeds from the first property to the second. Well done!!
In the UK most mortgages are only fixed for 2 or 5 years. Which means once the term is over, depending on interest rates, your mortgage can go up significantly, even more than current rent rates.
@@21cgIN There used to be a popular version of an adjustable mortgage that was fixed like the one you described then goes to an adjustable. Most adjustable loans in the US have a cap of 5 or 6 percent over the teaser rate. So if the teaser rate was 3 % the mortgage could not go over 8%. Furthermore the amount the adjusment could be made in a year was also a percent over the base rate. The base rate was a money rate that the best institutions could get. Many are tied to 11th district cost of funds for example and your rate could not go high then say 2% over that. Then to determine your new rate would be to compare the 11th distric COF to your teaser rate and adjust up. BUT one more thing. Most adjustables had a 1% cap adjustment too. So even if 11th d cof went up enough to have a 2% adjustment your mortgage would only go up 1%.
That was a pretty good financially focused analysis of renting versus owning. However, if someone asked me to perform this analysis, I would include a couple other factors in addition to those you mentioned: 1) In California we have what is called Prop 13 which caps in the annual property tax appreciation amount to 2%. If you hold a property in a high appreciation zip code (think premium coastal locations), you can dramatically save money over time by owning a home whose property tax basis is considerably below market. Renters are subject to the landlord's profit maximization objectives and the inflation of their maintenance. And you may be paying fees and overhead for stuff you don't want or use (common area amenities). 2) The other major factor in owning your own home is the freedom to do what you want with the property (renovation wise) and know you will more likely recoup those costs if/when you sell the property. If you rent, it would not be wise or likely allowed to perform renovations to someone else's property. Furthermore, for me specifically, I really enjoy having unique hobby related aspects at my homes that typically people don't have available: audio listening room, home theater, custom work out room, custom library, large garage with workshop, chicken coop, etc. These types of amenities cost a lot of money and good luck finding a rental at any price range that accommodates your specific decorating taste, hobbies and lifestyle.
HOA's are a killer and usually rise every year after Budget ratification. I would like to calculate the difference between the benefits of what HOA covers in a home ,versus, rental expenses such as water, garbage disposal, etc. Also Condo's can have surprise "special assessments" repairs that ding the owner 50K or more especially as a condo ages, more problems creep up. Again, thanks for all the good content !😺
I need to buy something to live in. Problem is, I dont know what. I feel like I’m in limbo. I DO know Im currently in a tiny apartment that is very expensive. Good video Shelby!
I was coming to say the same thing. I feel like a more fair assessment would be a SFH since you can control the numbers better. That HOA is probably easily $1200 in 5yr. It’s easy to say that with ownership you have known costs and rent will go up each year. But I don’t know anyone that owns a home and hasn’t gotten surprise HOA fees (if they have an HOA) or a large unexpected maintenance cost like having to replace an HVAC unit, a wild plumbing leak, there’s always something. As a renter you don’t have to worry as much about making sure you always have $50-100k on hand available for unplanned expenses, you just call and that’s someone else’s problem. (And that $35k you spend replacing your HVAC duct work because it aged out, does not translate to added value when selling. That’s just cash out.)
I bet you're the best real estate agent! I was an agent for a while. After owning a condo for close to 10 years, my mortgage is about half what my rent would be. The security of always having a cheap place to live if you need it is really under rated.
I watch all your videos. I love listening to your voice. Most of your topics are interesting to me, and i have learned a lot from you about real-estate tennis and golfing. I love how detailed you are with your research. I have mad respect for that and your editing. You taught me a lot about the power of thumbnails. I just thought I would let you know, I truly value your hard work put into your content. ❤
You forgot to factor in the maintenance cost being invested as well. 30k is super low for 5yrs on a million dollar property as well. Renters would come out ahead IF they really did invest the difference. Not to mention to yearly increases on property taxes, HOA fees, and insurance.
I’ve owned a single family home in LA for 3 years and didn’t have over $1,500 in Maintance! And the house wasn’t even in that good of shape, the money I spent was just wants not needs.
@@gjd424That’s amazing! I definitely spend more than $300/yr just having the furnace, ac unit, water heater, and fireplace serviced and filters changed.
That’s quite a premium neighborhood and an awesome apartment! Not actually a bad deal in that area! We bought in SF (3% interest in 2019) and spent a long time considering the rent vs. buy. Ultimately glad with our decision but it was awesome seeing your perspective!
When looking into tax deductions I think it’s important to call out that the mortgage interest and insurance deductions would need to exceed the standard deduction. So for a fair comparison it’s important to call out that for a household with no other deductions, the net benefit needs to subtract the standard deduction they would have taken if renting.
88% of people use standard deduction. ( when Trump doubled the standard deduction in his first term). Even if you itemize your tax benefit is only to your effective rate
one thing i'll also say though is that if you rent from a private landlord or a good company here in San Diego, sometimes they don't raise your rent every single year. Or, you can be automatically switched to month to month where the monthly rate is lower than what they would increase rent to for a new lease term. This can save you a lot of money. My rent is cheaper than any mortgage I could get here I have lived in my apartment almost two years. After our initial 1 year lease, they did not raise rent or try to push a renewal. It's typical here to be automatically switched to month to month if you don't renew, so we took advantage of that. We pay the same and we have flexibility to move whenever. This of course could change at any time, but it hasn't over the last year.
Great video, Shelby! One thing I would say as a homeowner is the housing cost stability allows people to save and invest more. So at the end of 5 years you are not inly looking at gains in equity but also gains in investment from not paying rises in rent.
I'm going to call BS on the maintenance cost. $30,000 is very low for a million dollar house. Using the 1% estimate on maintenance costs it's closer to $50,000 after 5 years minimum. Also property taxes and insurance raise every year. This wasn't factored in at all. It's interesting to see how changing incentives changes the type of content being produced. This video is a lot more home buying friendly than normal.
they don't go up EVERY year, I purchased my first live-in investment duplex in Nov 2022 in LA, my mortgage payment hasn't gone up, have yours gone up? o: I am kind of anticipating a bump on the mortgage payments but hopefully not any time soon lol
This is actually the most in-depth video I've seen in owning vs renting. Thanks for diving into this, no one has made a video with all the numbers like this.
Your capital gains tax calculations were incorrect, you only calculated the California state capital gains tax and did not include the additional Federal capital gains taxes.
Ah yes, the rent vs buy decision I’ve been trying to figure out for years. The rental income vs mortgage payment calculation never made sense to me. But this is much more logical and makes far more sense. Thank you for simplifying this!
Most people are unable to handle a fall since they are accustomed to bull markets, but if you know where to look and how to get around, you can profit handsomely. It depends on your entry and exit strategy.
People often overlook the value of financial advisors until they experience the downside of emotional decision-making. I recall a few summers ago, after a difficult divorce, when I needed help reviving my struggling business. I did some research and found a licensed advisor who worked diligently to grow my reserves, even amid inflation. As a result, my reserves grew from $315k to around $740k.
I tried looking into new strategies to profit in the current market because my portfolio has been in the dumps for the entire year, but everything I tried just seemed to miss the point. Please let us know who your asset manager is by name.
There are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’ Lisa Grace Myer” for about five years now, and her performance has been consistently impressive. She’s quite known in her field, look-her up.
I just googled her and I'm really impressed with her credentials; I reached out to her since I need all the assistance I can get. I just scheduled a caII.
I just bought my first house in LA and we're 6 months in and tens of thousands into renovation & repairs. I think we'll come out ahead after a few years but Some times I do wonder if renting would have been smarter. Most managed brokerage acounts can give you a 9 percent return a house is a money pit at first.
Real estate can be quite a rollercoaster, the stress and uncertainty are getting to me. I think I'll cut rents to attract potential buyers and exit the market, but i'm at crossroads if to allocate my entire $700k liquidity value to my stock portfolio or just stay 100% cash?
in my opinion, some financial situations can be handled on your own if you research enough, while others are best navigated in consultation with a financial advisor
Right, I and a few neighbors in Bel-Air area work with an advisor who prefers we DCA across other prospective sectors instead of a lump sum purchase. Following this, my portfolio has yielded over 120% since early last year to date. IMO, nothing beats expertise.
I've worked in real estate for 25 years and have neglected a major stock portfolio. This served me well when I was flipping and renting houses, however I need a different plan now.. Mind if I look up the professional guiding you please?
She goes by ''Katherine Nance Dietz'' a renowned figure in the financial industry with over two decades of experience. I'd suggest you research her further on the web.
I find this very informative, curiously inputted Katherine Nance Dietz on the web and at once spotted her consulting page, she seems highly professional from her resumé ...
Hey Shelby! I'm a homeowner in the West Hollywood area, and purchased my place back in April 2023. I've really enjoyed being a homeowner so far and can't tell you how nice it is to own in this day and age, knowing that my rent won't go up and my home is appreciating in value as well. I do have to pay a little over $400 for my HOA fees and have had to replace my window frames from their original so those expenses can be costly and add up quickly but overall, it seems like a better option compared to renting for myself. I rented before owning in LA too from 2022-2023 for $2,100 and that same apartment is now being rented for over $2,500!
Good breakdown- that’s a lot of numbers even for someone who look at numbers and spreadsheet. If you were to go anymore numbers breakdown, you would loss most of the audience. Great job. The numbers are pretty accurate for someone who underwriter a lot of real eatate deals.
Thank you for breaking it down….I can't recommend Shellane Maxwell enough! With her expert guidance, I successfully flipped my first property and made a profit of $180,000. She provided invaluable insights on market trends and investment strategies that truly made a difference. Thanks to her, I feel confident in my real estate investments and excited about my financial future!
In the current economic climate, a home is not the best investment. I've already sold my Boca Grande area home, but I want to invest roughly $200,000 in stocks since I've heard that even in challenging times, investors may turn a profit. Any excellent ideas for stocks?
The truth is that if you make the right picks, you could make killer riches very quickly, although such profit usually needs expertise, as in hedge funds or financial managers. I personally prefer the latter.
I agree. Based on personal experience working with an investment advlsor, I currently have $985k in a well-diversified portfollo that has experienced exponential growth. It's not only about having money to invest in st0cks, but you also need to be knowledgeable.
How can I participate in this? I sincerely aspire to establish a secure financlal future and am eager to participate. Who is the driving force behind your success?
There are several independent advisors you could research. However, I have been working with “Annette Marie Holt” for almost four years, and we get along great. If she appeals to your judgement, you could continue with her. I support her.
I just googled her and I'm really impressed with her credentials; I reached out to her since I need all the assistance I can get. I just scheduled a caII.
And anything you don’t fix because it doesn’t personally bother you that much, you’ll pay for when you sell and they hit you with a large credit request.
Owning is always cheaper than renting. I rent out lots of properties, the cost of maintenance, insurance, taxes, & insurance is factored in already to the rent. You aren’t saving what you think you are. If you rent you are just paying off someone else’s mortgage. If you want to argue that you move around a lot fine, rent, but understand what you are giving up by moving a lot: The equity you would have built up is wasted.
LOVE the breakdown of the math, because monthly mortgage/rent payments are not always the same for an exact price point of homes due to so many factors! 🫶🏻 always love your home tours!
I think investors should always put their cash to work, especially In 2025, we'll start to see more market diversification. I'm hoping to invest about $350k of my savings in stocks against next year. Hope to make millions in 2025
Since risk is at an all-time high right now, perhaps you should be a little more patient and return when it has decreased. Alternatively, you can consult a trained financial expert for strategy.
Yes true, I have been in touch with a brokerage Advisor. With an initial starting reserve of $80k, my advisor chooses the entry and exit commands for my portfolio, which has grown to approximately $550k.
My CFA Julianne Iwersen Niemann a renowned figure in her line of work. I recommend researching her credentials further... She has many years of experience and is a valuable resource for anyone looking to navigate the financial market..
Thank you for your videos.. . Crypto education is what the world needs the most right now. I don’t think that buy and hold is a valid investment strategy anymore. Not too diluted and to a degree, follow Sophia’s trading ideas and signal tips for your portfolio growth and aggressiveness. She is a woman who has not only taught me what the cryptocurrency trading world looks like but a secret to uplift my finance. Buying crypto and waiting for the price to shoot up is not the best way to invest in the market but buying and trading is. Sophia Haney’s trade signaIs does the heavy lifting, generating competitive returns for crypto traders and investors in the form of money and peace of mind. Time in the market vs. timing the market. If you keep that mentality as an investor, you will stay calm during the storm! Within some months I was making a lot more money and have continued on that same path...
I can’t reveal too much here, but I’m learning from a really great person named ‘Sophia E Haney’. She’s been in the industry for over two decades and knows a thing or two. I highly recommend checking her out online.
I agree that there are strategies that could be put in place for solid gains regardless of economy or market condition, but such executions are usually carried out by investment experts or advisors with experience…
Very nice job covering the basics. I am sharing this not to brag but to show what’s possible. I’m retired and I have 2 separate portfolios. One is a long term growth dividend portfolio of stocks where i sell covered calls strategically and my 2nd portfolio is the Crypto trading strategy where its all about income. This year I am on pace to make $120K in realized options profits and around $869K in crypto profit... What is great is that my long-term portfolio is still up significantly as well. As such, it’s possible to generate excellent income but still have a total return perspective. ...Amidst this, the insights of a knowledgeable guide like that of Expert Shellane Maxwell can be crucial. Her expertise in navigating the nuances of trading has been the key for Me understanding and making the most of these emerging financial trends.
How would you recommend i enter the crypto market? I am also looking at studying some traders and copying their strategy rather than investing myself and losing money emotionally. What's your take on this approach? and How can i reach her, if you don't mind me asking?
My read on the gains exclusion was you dont actually need to live/own a property for 5 years, but so long as you lived there for a total of 2 years you can sell it and apply for the exclusion.
Great video. It's hard to pull the trigger on a home right now with these rates. I'm waiting out rates right now to refi, and that day can't come soon enough. Sometimes I wish I hadn't purchased my house six months ago and just stayed a renter until mid 2025.
When buying, see build date….if long long ago, it might need all new wiring which can be 4K for a cottage to 15K for a big Victorian. I’m doing mine in Spring. Also research instead…buying a quite old sailboat 37’ ($16K) and research marina fees for electricity, water, slip size….then sell it in a few years and switch to a house.
Hi Shelby! Very interesting comparison in-depth! I’m a home owner as well. Our household income tripped in last 5 years, and we have been paying twice as much on a principal every month. We are planing to pay off our mortgage next year at 8 years owing it. Our mortgage was originally 30 year, then refinanced it to 20 year loan. So, we have been saving on interest quite bit. I know that this is not precisely planted out but just vaguely hoped for, and it s impossible to keep wages increase or decrease in consideration and calculate it. But, it seems that owing home is working out for us than renting it.
Great video! I came here to say that prop taxes, insurance and HOA fees increase also. I have owned for 11 years and my prop taxes have gone up every single year. Lol it’s just like a rent increase!
Actually if you change name on ownership triggers a new rax assessment 😮 Adding a Adu will increase your property’s taxes..on a million dollar property your yearly property taxes is around 12k a year 😊
Great video Shelby. I see the discussion below you generated is excellent too. I never thought about investing the savings made. Good one. It would also be nice to have included a lot more of the intangibles too Flexibility vs Commitment as a tenant. As a landlord myself I believe in service. I have just finished replacing the roof on my rental to keep the house watertight which I identified the need. I guess that's why I always have long term tenants and never had a problem. 😃
really well done video. great info and nicely edited! It's definitely depressing to be a millennial in SoCal (I live in San Diego) right now about to turn 30 and wanting to buy a house but not wanting to be house poor. Ugh lol
Ms. Church always has invaluable information. Specific Real Estate investment pro's & cons should have fantastic videos that'll strengthen asset building in 2025. I Hope to go from Novus to intermediate learner next year.
Wow I’ve been following you for a while and based on your intelligence, personality and communication skills I’m sure you’re an excellent realtor. I’ve paused my real estate investing for California (where I live) but I’ll definitely reach out if I know someone looking to purchase in the Palm Springs area. Your videos on your Airbnb and detailed breakdowns were so good.
Also LA is one of the few Cities with Rent control, so if you luck into a RC unit the nax your rent can in creas is 4% and only if Market rate allows, there's a lot of variables to add to this.
Great video! I'm in the multifamily space in Southern CA - and I wholeheartedly believe that renting where you live is the best thing you can do for yourself. I would stick to only buying rental properties and then once you have made yourself a consistent stream of income from the rentals, you can go ahead and buy a primary. Would are your thoughts on this?
As homeowner I've done OK out of property appreciation but there are downsides. New roofs aren't cheap and maintenance is on going. Most of which I do myself but still cost time and money in materials and tools. New homeowners will find themselves spending lot of money on tools and materials initially.
I think you forgot to calculate that as value of property rises so does the property tax it's not a fixed amount and the same goes for with HOA fees and insurance. Don't forget LA has rent control in something like 75% of units, meaning your rent can only increase a max of 4%, if market value allows.
I live in Nashville and own/live in a Condo. My mortgage payment with association fee, taxes and Insurance is way less than rent. I also invest the difference in the stock market. The biggest difference is that I bought back when the market was way lower in Nashville and the interest rates were way better. For me, my purchase was the best choice back then and still is today as the rent prices have skyrocketed here. In today's real estate market/interest rate climate- not sure buying would be the best choice.
It’s just so many factors when owning especially maintenance of the property. Personally, the worst is that front-loaded interest for the next 15 years. Take this house for example: $4,895 is PURE INTEREST. It’s straight up money to the bank and never to be seen again. 😢😢
I think this is a really awesome breakdown. However, most people that I know that rent don’t have the money for a down payment on a home, so the person wouldn’t have money to put into the stock market.
Great video ! Renting is always better for short term - ( a Few years ). Buying is always better !!! ( in the long term ) video suggestion - Affects on credit score - Renting vs buying. Paying off a Million dollar loan and what it brings to the table credit score wise & Buying power wise.
Also, you forgot to calculate the state tax on long term capital gains. You only did federal. In CA that raises to about 25-30% of gains. . Renting is NEVER the better option if you can afford to buy.
Also something you might have overlooked on the renting equation. If you invest that $200k downpayment in stocks you can then access margin for your stocks to get in even better return. I feel like if your factoring in the fact that when you buy you are leveraging your downpayment with debt to do the same for stocks also
You mentioned there is no down-payment for renting, but I would be curious if it would make a difference to compare there numbers while including a security deposit +first and last months rent as a "down payment" because with a $5500 per month rent that all adds up
To me, owning only makes sense if you are planning to stay in the home for at least 10 years, if you don’t mind handling routine maintenance, and if you want to customize your home in ways most rentals won’t allow. I love owning, but I know many people who would be much better off renting because they neglect maintenance issues and aren’t really into customizing their home. To me, the fees involved make selling after only 5 years a waste. Housing markets definitely don’t always increase as dramatically as your example-and they truly do go down at times. I’ve had the experience of owing more on a home than it can sell for due to market changes-which is terrible and can leave you feeling trapped and resentful.
Nice breakdown! Couldn't help but notice the blinking green light on your neck from your mic, very distracting. Maybe put a piece of tape over it to cover it up.
🤑🤑🤑🤑🤑 in metro Atlanta, GA 2000 sq ft house on half acre of land is $250000 & less. In the city, a million still get you 3000 sq ft house. Condos are at least 2000 sq ft with good amenities ( pool, common area, package center, gym, parking)
Love the video Shelby! Could you do a video comparing Multifamily properties 2-4 units to Single Family homes I’m in Chicago I would love a breakdown of what would be a better buy!
I would love it if you could address people that may or may not claiming the standard deduction and those who would then be itemizing. Some people don't itemize and then can't deduct some of the housing costs.
As a financial analyst who models out business cases for a living, this was excellent. As you alluded, I think the long and short is if > 5 years you own and shorter you rent. Long term ownership is going to win. Only quibble I have is home appreciation should trend towards inflation in the long term. Aging homes shouldn’t naturally appreciate in value. The reason it hasn’t is bc supply has not kept up with demand. With an aging population of boomers and a lower birth rate, supply will becoming the dominating economic force and you could see real estate prices stagnate in the longer run. Though I feel the next 5-10 years have a lot of room to run up in price bc of pent up demand.
Most creators don’t actually take the time to go this deep with the comparisons. Well researched and presented. Good luck in your new career!
Americans are facing a tough time with their finances, especially concerning housing affordability and retirement savings.
I'm getting worried about the rising housing prices. It seems like it's becoming harder to afford a home these days.
Absolutely. And with the fear of not being able to retire comfortably, people might be tempted to make risky investments or neglect proper financial planning, which could spell trouble for their portfolios in the long run.
And let's not forget how the global economy plays into all of this. Economic instability, inflation, and market fluctuations can further complicate matters and add to people's financial worries.
It's crucial for individuals to diversify their portfolios, seek professional financial advice, and stay informed about market trends to navigate these challenges effectively.
Thanks for sharing your experience! I've been managing my portfolio myself, but it's not working out. Do you have any recommendations for a good investment advisor? I could really use some help.
The challenge is that whether you rent or own, there are unavoidable costs associated with maintaining a permanent residence-property taxes, insurance, and utilities like electricity, gas, and water. In places like California, where I currently live, the high cost of living has pushed many people to opt for alternatives. It’s not uncommon to see individuals living in tents to avoid property-related expenses, and the number of people I encounter who reside in their cars is truly surprising. It’s a sign of how extreme the situation has become.
The market continues to escalate daily. Home prices are exorbitant, and mortgage rates have surged beyond 7%. I often debate whether it's smarter to park my cash in the stock market and wait for a potential housing crash or bite the bullet and purchase a home now.
I understand your concerns. I'm 50 and planning to retire early, and the uncertainty of the financial future, especially around housing and investments, is concerning. I’m also considering my first stock market investment, but the volatility this year has been intimidating.
How can I find a trusted financial planner like yours?
I consistently recommend Rebecca Lynne Buie as my top choice. She is well-known for her expertise in financial markets and has an impressive track record. I highly endorse her services.
Thank you for the recommendation. I reached out to her, and I’m looking forward to her response.
One thing that people don't consider is when comparing renting vs buying is the assumption the individual rents the same value property as they would buy. This is normally not the case and can skew the comparison. The type of property someone purchases will tend to be dictated by the maximum amount they can borrow and the size of their deposit, even if this means buying a larger or more expensive property than they need. In renting however, I would suggest more often that not, people tend to rent cheaper properties than they would otherwise buy.
Also the down payment. Coming up with 20% is very tough. People don’t have this cash so they stuck renting. When put 3% down your monthly payment go way up and you loose money to ridiculous pmi
Outstanding presentation. Most young professionals who want to buy or rent need this advice.
Some people who buy houses don’t think about maintaining the house. So sometimes buying a house cost more.
yes, UA-cam and home depot on a weekend necessary if you don't want to empty your wallet to contractors.
“Most of the time” these homes are 50 years old
Yes but…..you are putting that money into something you can own and sell for $$. Renting may be cheaper but your money is being thrown away instead of invested.
I will never be a homeowner again ! I had 4 assessments in one year and of course the HOA Fee’s It was draining . And than had to repairs the owners ceiling because I had a leak coming from my bathroom . I had to make repairs that cost A lot. . ( unfortunately it wasn’t the common area so I had to pay) so I’m renting and I put in my savings as I was still paying HOA FEES and another 10 percent of my pay . I’m renting from a condo owner elsewhere and Thank goodness he hasn’t raised my rent for 3 years. So I feel like I’m winning. And to enjoy the freedom to travel more on top of it 🥰 also I’ve watched to for so many years and your AMAZING .🤗🙏🏻
Love these videos Shelby!!
Thank you!!
Condos also have an extreme negative - the HOA can specially assess you at any time for any amount. Say the elevator breaks or the roof needs replacing - boom, they ask each owner to cough up thousands of dollars and you are obligated to pay. Your neighbors are your partners and you have to share all costs, and oftentimes you may not agree with the spending. I would avoid HOAs at all costs and wait until you can afford a single-family home (if possible!).
Agreed, it's better to own your own home. I know people who have had to pay for elevators in the building they don't even use!
That's difficult for a lot of people in LA if they're trying to own.
The difference after 5 years really starts kicking in on home ownership as rental rate increases really get so much larger than the mortgage. I always like to think of home ownership kind of like an annuity, you are paying a little more up front for the guarantee of a fixed rent for the rest of the time you stay in that property. This will extend to a large extent to a new property if you take all the proceeds from the first property to the second. Well done!!
this is a great way to look at it!
In the UK most mortgages are only fixed for 2 or 5 years. Which means once the term is over, depending on interest rates, your mortgage can go up significantly, even more than current rent rates.
@@21cgIN There used to be a popular version of an adjustable mortgage that was fixed like the one you described then goes to an adjustable. Most adjustable loans in the US have a cap of 5 or 6 percent over the teaser rate. So if the teaser rate was 3 % the mortgage could not go over 8%. Furthermore the amount the adjusment could be made in a year was also a percent over the base rate. The base rate was a money rate that the best institutions could get. Many are tied to 11th district cost of funds for example and your rate could not go high then say 2% over that. Then to determine your new rate would be to compare the 11th distric COF to your teaser rate and adjust up. BUT one more thing. Most adjustables had a 1% cap adjustment too. So even if 11th d cof went up enough to have a 2% adjustment your mortgage would only go up 1%.
Most creators don’t actually take the time to go this deep with the comparisons. Well researched and presented. Good luck in your new career
That was a pretty good financially focused analysis of renting versus owning. However, if someone asked me to perform this analysis, I would include a couple other factors in addition to those you mentioned:
1) In California we have what is called Prop 13 which caps in the annual property tax appreciation amount to 2%. If you hold a property in a high appreciation zip code (think premium coastal locations), you can dramatically save money over time by owning a home whose property tax basis is considerably below market. Renters are subject to the landlord's profit maximization objectives and the inflation of their maintenance. And you may be paying fees and overhead for stuff you don't want or use (common area amenities).
2) The other major factor in owning your own home is the freedom to do what you want with the property (renovation wise) and know you will more likely recoup those costs if/when you sell the property. If you rent, it would not be wise or likely allowed to perform renovations to someone else's property. Furthermore, for me specifically, I really enjoy having unique hobby related aspects at my homes that typically people don't have available: audio listening room, home theater, custom work out room, custom library, large garage with workshop, chicken coop, etc. These types of amenities cost a lot of money and good luck finding a rental at any price range that accommodates your specific decorating taste, hobbies and lifestyle.
Congratulations on being a realtor now!! I've been watching during all those videos when you were studying for the test
HOA's are a killer and usually rise every year after Budget ratification. I would like to calculate the difference between the benefits of what HOA covers in a home ,versus, rental expenses such as water, garbage disposal, etc. Also Condo's can have surprise "special assessments" repairs that ding the owner 50K or more especially as a condo ages, more problems creep up. Again, thanks for all the good content !😺
That’s so true. I forgot to factor in that the HOA could go up!!
I need to buy something to live in. Problem is, I dont know what. I feel like I’m in limbo. I DO know Im currently in a tiny apartment that is very expensive. Good video Shelby!
I was coming to say the same thing. I feel like a more fair assessment would be a SFH since you can control the numbers better. That HOA is probably easily $1200 in 5yr. It’s easy to say that with ownership you have known costs and rent will go up each year. But I don’t know anyone that owns a home and hasn’t gotten surprise HOA fees (if they have an HOA) or a large unexpected maintenance cost like having to replace an HVAC unit, a wild plumbing leak, there’s always something. As a renter you don’t have to worry as much about making sure you always have $50-100k on hand available for unplanned expenses, you just call and that’s someone else’s problem. (And that $35k you spend replacing your HVAC duct work because it aged out, does not translate to added value when selling. That’s just cash out.)
Yea, HOA's are ridiculous. My monthly HOA dues have gone from $335 to $600 in 9 years.
I bet you're the best real estate agent! I was an agent for a while. After owning a condo for close to 10 years, my mortgage is about half what my rent would be. The security of always having a cheap place to live if you need it is really under rated.
I watch all your videos. I love listening to your voice. Most of your topics are interesting to me, and i have learned a lot from you about real-estate tennis and golfing. I love how detailed you are with your research. I have mad respect for that and your editing. You taught me a lot about the power of thumbnails. I just thought I would let you know, I truly value your hard work put into your content. ❤
You forgot to factor in the maintenance cost being invested as well. 30k is super low for 5yrs on a million dollar property as well. Renters would come out ahead IF they really did invest the difference. Not to mention to yearly increases on property taxes, HOA fees, and insurance.
I think 30k is more accurate for a condo, it should be less maintenance than a house. But you could factor in more if you think it needs that!
I’ve owned a single family home in LA for 3 years and didn’t have over $1,500 in Maintance! And the house wasn’t even in that good of shape, the money I spent was just wants not needs.
30k seems like on the high end for a condo tbh
@@johnbaker5248 Just switch it around and account for the high hoa fee increase yearly.
@@gjd424That’s amazing! I definitely spend more than $300/yr just having the furnace, ac unit, water heater, and fireplace serviced and filters changed.
That’s quite a premium neighborhood and an awesome apartment! Not actually a bad deal in that area! We bought in SF (3% interest in 2019) and spent a long time considering the rent vs. buy. Ultimately glad with our decision but it was awesome seeing your perspective!
When looking into tax deductions I think it’s important to call out that the mortgage interest and insurance deductions would need to exceed the standard deduction. So for a fair comparison it’s important to call out that for a household with no other deductions, the net benefit needs to subtract the standard deduction they would have taken if renting.
88% of people use standard deduction. ( when Trump doubled the standard deduction in his first term). Even if you itemize your tax benefit is only to your effective rate
one thing i'll also say though is that if you rent from a private landlord or a good company here in San Diego, sometimes they don't raise your rent every single year. Or, you can be automatically switched to month to month where the monthly rate is lower than what they would increase rent to for a new lease term. This can save you a lot of money. My rent is cheaper than any mortgage I could get here
I have lived in my apartment almost two years. After our initial 1 year lease, they did not raise rent or try to push a renewal. It's typical here to be automatically switched to month to month if you don't renew, so we took advantage of that. We pay the same and we have flexibility to move whenever. This of course could change at any time, but it hasn't over the last year.
Grabbing the popcorn now! 🍿🍿. Girl you are slaying it in that black dress :)
That dress is cute professional and looks amazing on you. You are an amazing sister on all levels.
Great video, Shelby! One thing I would say as a homeowner is the housing cost stability allows people to save and invest more. So at the end of 5 years you are not inly looking at gains in equity but also gains in investment from not paying rises in rent.
I'm going to call BS on the maintenance cost. $30,000 is very low for a million dollar house. Using the 1% estimate on maintenance costs it's closer to $50,000 after 5 years minimum.
Also property taxes and insurance raise every year. This wasn't factored in at all.
It's interesting to see how changing incentives changes the type of content being produced. This video is a lot more home buying friendly than normal.
Why would things be breaking so much that you have to spend $50k on a new house?? I thought $30k was too much
they don't go up EVERY year, I purchased my first live-in investment duplex in Nov 2022 in LA, my mortgage payment hasn't gone up, have yours gone up? o: I am kind of anticipating a bump on the mortgage payments but hopefully not any time soon lol
@AdrianRomeroJr mine has gone up 3 times in 4 years. Insurance is going crazy. I'm surprised insurance isn't coming after you and raising rates
@@brucebanksshow Are you in California?
@jj-if6it you're right. I own entire buildings that don't have even 15k over 5 year periods in "maintenence".
Love this video.. this is such a clear comparison between buying and renting.
Good breakdown! It's true - renting usually only makes sense if you got that discipline to invest the amount you saved
This is actually the most in-depth video I've seen in owning vs renting. Thanks for diving into this, no one has made a video with all the numbers like this.
Your capital gains tax calculations were incorrect, you only calculated the California state capital gains tax and did not include the additional Federal capital gains taxes.
Great financial analysis done in a very digestible manner. Really impressed
Ah yes, the rent vs buy decision I’ve been trying to figure out for years. The rental income vs mortgage payment calculation never made sense to me. But this is much more logical and makes far more sense. Thank you for simplifying this!
Most people are unable to handle a fall since they are accustomed to bull markets, but if you know where to look and how to get around, you can profit handsomely. It depends on your entry and exit strategy.
People often overlook the value of financial advisors until they experience the downside of emotional decision-making. I recall a few summers ago, after a difficult divorce, when I needed help reviving my struggling business. I did some research and found a licensed advisor who worked diligently to grow my reserves, even amid inflation. As a result, my reserves grew from $315k to around $740k.
I tried looking into new strategies to profit in the current market because my portfolio has been in the dumps for the entire year, but everything I tried just seemed to miss the point. Please let us know who your asset manager is by name.
There are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’ Lisa Grace Myer” for about five years now, and her performance has been consistently impressive. She’s quite known in her field, look-her up.
I just googled her and I'm really impressed with her credentials; I reached out to her since I need all the assistance I can get. I just scheduled a caII.
I just bought my first house in LA and we're 6 months in and tens of thousands into renovation & repairs. I think we'll come out ahead after a few years but Some times I do wonder if renting would have been smarter. Most managed brokerage acounts can give you a 9 percent return a house is a money pit at first.
I've owned and rented. I prefer owning. It's more of an investment.
Owning is a liability lol only if you rent it out is it an asset. All about cash flow.
@@livingunashamed4869Properties with an ADU hybridize this and give some income while allowing you to live in it.
Shelby, Thank you for sharing and I love how you presented all the facts. It was an incredible video!
Real estate can be quite a rollercoaster, the stress and uncertainty are getting to me. I think I'll cut rents to attract potential buyers and exit the market, but i'm at crossroads if to allocate my entire $700k liquidity value to my stock portfolio or just stay 100% cash?
in my opinion, some financial situations can be handled on your own if you research enough, while others are best navigated in consultation with a financial advisor
Right, I and a few neighbors in Bel-Air area work with an advisor who prefers we DCA across other prospective sectors instead of a lump sum purchase. Following this, my portfolio has yielded over 120% since early last year to date. IMO, nothing beats expertise.
I've worked in real estate for 25 years and have neglected a major stock portfolio. This served me well when I was flipping and renting houses, however I need a different plan now.. Mind if I look up the professional guiding you please?
She goes by ''Katherine Nance Dietz'' a renowned figure in the financial industry with over two decades of experience. I'd suggest you research her further on the web.
I find this very informative, curiously inputted Katherine Nance Dietz on the web and at once spotted her consulting page, she seems highly professional from her resumé ...
This was an excellent video. Thank you for sharing your thorough analysis!
Hey Shelby! I'm a homeowner in the West Hollywood area, and purchased my place back in April 2023. I've really enjoyed being a homeowner so far and can't tell you how nice it is to own in this day and age, knowing that my rent won't go up and my home is appreciating in value as well. I do have to pay a little over $400 for my HOA fees and have had to replace my window frames from their original so those expenses can be costly and add up quickly but overall, it seems like a better option compared to renting for myself. I rented before owning in LA too from 2022-2023 for $2,100 and that same apartment is now being rented for over $2,500!
Good breakdown- that’s a lot of numbers even for someone who look at numbers and spreadsheet. If you were to go anymore numbers breakdown, you would loss most of the audience. Great job. The numbers are pretty accurate for someone who underwriter a lot of real eatate deals.
Leaving LA makes more sense at this point. Just not to Florida or Texas.
Thank you for breaking it down….I can't recommend Shellane Maxwell enough! With her expert guidance, I successfully flipped my first property and made a profit of $180,000. She provided invaluable insights on market trends and investment strategies that truly made a difference. Thanks to her, I feel confident in my real estate investments and excited about my financial future!
She mostly interacts on Telegrams, using her name
@shellanemaxwell she’s verified
Wow I’m so surprise to see you talk about her, With her guidance, I flipped a property and made a profit of $50,000 in just three months
Oh, do you happen to know her too? I'm proud to say I've also benefited from her platform
Archieving a weekly profit of 45k
In the current economic climate, a home is not the best investment. I've already sold my Boca Grande area home, but I want to invest roughly $200,000 in stocks since I've heard that even in challenging times, investors may turn a profit. Any excellent ideas for stocks?
The truth is that if you make the right picks, you could make killer riches very quickly, although such profit usually needs expertise, as in hedge funds or financial managers. I personally prefer the latter.
I agree. Based on personal experience working with an investment advlsor, I currently have $985k in a well-diversified portfollo that has experienced exponential growth. It's not only about having money to invest in st0cks, but you also need to be knowledgeable.
How can I participate in this? I sincerely aspire to establish a secure financlal future and am eager to participate. Who is the driving force behind your success?
There are several independent advisors you could research. However, I have been working with “Annette Marie Holt” for almost four years, and we get along great. If she appeals to your judgement, you could continue with her. I support her.
I just googled her and I'm really impressed with her credentials; I reached out to her since I need all the assistance I can get. I just scheduled a caII.
When you rent, you’re at the whims of your landlord
You are free to move.
owning a house is like having a part time job that doesn't pay you anything. Hvac, pipes, plumbing, washer/dryer etc. all have a shelf-life
And anything you don’t fix because it doesn’t personally bother you that much, you’ll pay for when you sell and they hit you with a large credit request.
I am from Hungary and I still love these types of videos.
Owning is always cheaper than renting. I rent out lots of properties, the cost of maintenance, insurance, taxes, & insurance is factored in already to the rent. You aren’t saving what you think you are. If you rent you are just paying off someone else’s mortgage.
If you want to argue that you move around a lot fine, rent, but understand what you are giving up by moving a lot: The equity you would have built up is wasted.
Well researched and presented. Good luck .
Moving out of California makes the most sense, obviously
Yes it does unless you're in the top 10 percent like Shelby
LOVE the breakdown of the math, because monthly mortgage/rent payments are not always the same for an exact price point of homes due to so many factors! 🫶🏻 always love your home tours!
I think investors should always put their cash to work, especially In 2025, we'll start to see more market diversification. I'm hoping to invest about $350k of my savings in stocks against next year. Hope to make millions in 2025
Since risk is at an all-time high right now, perhaps you should be a little more patient and return when it has decreased. Alternatively, you can consult a trained financial expert for strategy.
Yes true, I have been in touch with a brokerage Advisor. With an initial starting reserve of $80k, my advisor chooses the entry and exit commands for my portfolio, which has grown to approximately $550k.
I’ve been looking to switch to an advisor for a while now. Any help pointing me to who your advisor is?
My CFA Julianne Iwersen Niemann a renowned figure in her line of work. I recommend researching her credentials further... She has many years of experience and is a valuable resource for anyone looking to navigate the financial market..
I searched for her full name online, found her page, and sent an email to schedule a meeting. Hopefully, she responds soon. Thank you
Great video. You have a knack for breaking things down in a logical and thoughtful way.
I appreciate that!
Thank you for your videos.. . Crypto education is what the world needs the most right now. I don’t think that buy and hold is a valid investment strategy anymore. Not too diluted and to a degree, follow Sophia’s trading ideas and signal tips for your portfolio growth and aggressiveness. She is a woman who has not only taught me what the cryptocurrency trading world looks like but a secret to uplift my finance. Buying crypto and waiting for the price to shoot up is not the best way to invest in the market but buying and trading is. Sophia Haney’s trade signaIs does the heavy lifting, generating competitive returns for crypto traders and investors in the form of money and peace of mind. Time in the market vs. timing the market. If you keep that mentality as an investor, you will stay calm during the storm! Within some months I was making a lot more money and have continued on that same path...
I can’t reveal too much here, but I’m learning from a really great person named ‘Sophia E Haney’. She’s been in the industry for over two decades and knows a thing or two. I highly recommend checking her out online.
Use her name to quickly conduct an internet search.
SHE’S MOSTLY ON TELEGRAMS APPS WITH HER NAME.
Sophiahaney she’s verified
I agree that there are strategies that could be put in place for solid gains regardless of economy or market condition, but such executions are usually carried out by investment experts or advisors with experience…
Love these videos Shelby
Very nice job covering the basics. I am sharing this not to brag but to show what’s possible. I’m retired and I have 2 separate portfolios. One is a long term growth dividend portfolio of stocks where i sell covered calls strategically and my 2nd portfolio is the Crypto trading strategy where its all about income. This year I am on pace to make $120K in realized options profits and around $869K in crypto profit... What is great is that my long-term portfolio is still up significantly as well. As such, it’s possible to generate excellent income but still have a total return perspective. ...Amidst this, the insights of a knowledgeable guide like that of Expert Shellane Maxwell can be crucial. Her expertise in navigating the nuances of trading has been the key for Me understanding and making the most of these emerging financial trends.
I heard her strategies are really good, How do I reach your Coach/mentor
How would you recommend i enter the crypto market? I am also looking at studying some traders and copying their strategy rather than investing myself and losing money emotionally. What's your take on this approach? and How can i reach her, if you don't mind me asking?
CAN”T SHARE MUCH HERE SHE’S MOSTLY ON TELEGRAMS WITH HER NAME
@Shellanemaxwell she's verified
This is helpful, thanks ....gotta message her right away
My read on the gains exclusion was you dont actually need to live/own a property for 5 years, but so long as you lived there for a total of 2 years you can sell it and apply for the exclusion.
Leaving LA is the only thing that makes sense.
always appreciate the "grown up stuff" on the channel
Great video. It's hard to pull the trigger on a home right now with these rates. I'm waiting out rates right now to refi, and that day can't come soon enough. Sometimes I wish I hadn't purchased my house six months ago and just stayed a renter until mid 2025.
When buying, see build date….if long long ago, it might need all new wiring which can be 4K for a cottage to 15K for a big Victorian. I’m doing mine in Spring. Also research instead…buying a quite old sailboat 37’ ($16K) and research marina fees for electricity, water, slip size….then sell it in a few years and switch to a house.
Very useful vlog. It will help immensely to buy and rent a house.
Hey Shelby,
Your Amazon link is broken - in description.
under - " What equipment i use "
Does not work.
Been broken for years
I’m glad you’re doing what you’re passionate about
Hi Shelby! Very interesting comparison in-depth! I’m a home owner as well. Our household income tripped in last 5 years, and we have been paying twice as much on a principal every month. We are planing to pay off our mortgage next year at 8 years owing it. Our mortgage was originally 30 year, then refinanced it to 20 year loan. So, we have been saving on interest quite bit. I know that this is not precisely planted out but just vaguely hoped for, and it s impossible to keep wages increase or decrease in consideration and calculate it. But, it seems that owing home is working out for us than renting it.
Great video! I came here to say that prop taxes, insurance and HOA fees increase also. I have owned for 11 years and my prop taxes have gone up every single year. Lol it’s just like a rent increase!
Property taxes in California can only go up a little bit each year, it’s kind of crazy
Actually if you change name on ownership triggers a new rax assessment 😮 Adding a Adu will increase your property’s taxes..on a million dollar property your yearly property taxes is around 12k a year 😊
Great video Shelby. I see the discussion below you generated is excellent too. I never thought about investing the savings made. Good one. It would also be nice to have included a lot more of the intangibles too Flexibility vs Commitment as a tenant. As a landlord myself I believe in service. I have just finished replacing the roof on my rental to keep the house watertight which I identified the need. I guess that's why I always have long term tenants and never had a problem. 😃
really well done video. great info and nicely edited! It's definitely depressing to be a millennial in SoCal (I live in San Diego) right now about to turn 30 and wanting to buy a house but not wanting to be house poor. Ugh lol
Ms. Church always has invaluable information. Specific Real Estate investment pro's & cons should have fantastic videos that'll strengthen asset building in 2025. I Hope to go from Novus to intermediate learner next year.
Wow I’ve been following you for a while and based on your intelligence, personality and communication skills I’m sure you’re an excellent realtor. I’ve paused my real estate investing for California (where I live) but I’ll definitely reach out if I know someone looking to purchase in the Palm Springs area. Your videos on your Airbnb and detailed breakdowns were so good.
I think location is very important when you make a decision buy versus rent.
Great video, Keep doing the house tours 💪🏽
Also LA is one of the few Cities with Rent control, so if you luck into a RC unit the nax your rent can in creas is 4% and only if Market rate allows, there's a lot of variables to add to this.
Great video! I'm in the multifamily space in Southern CA - and I wholeheartedly believe that renting where you live is the best thing you can do for yourself. I would stick to only buying rental properties and then once you have made yourself a consistent stream of income from the rentals, you can go ahead and buy a primary. Would are your thoughts on this?
Maintaining my starter home in LA is incredibly demanding. There's always something that needs fixing or taking care of.
10 percent is aggressive and return on home appreciation is very location dependent, some places it won't appreciate at all.
As homeowner I've done OK out of property appreciation but there are downsides. New roofs aren't cheap and maintenance is on going. Most of which I do myself but still cost time and money in materials and tools. New homeowners will find themselves spending lot of money on tools and materials initially.
Great info, very comprehensive! And helpful!
I think you forgot to calculate that as value of property rises so does the property tax it's not a fixed amount and the same goes for with HOA fees and insurance. Don't forget LA has rent control in something like 75% of units, meaning your rent can only increase a max of 4%, if market value allows.
Thanks for the advice ❤❤
I live in Nashville and own/live in a Condo. My mortgage payment with association fee, taxes and Insurance is way less than rent. I also invest the difference in the stock market. The biggest difference is that I bought back when the market was way lower in Nashville and the interest rates were way better. For me, my purchase was the best choice back then and still is today as the rent prices have skyrocketed here. In today's real estate market/interest rate climate- not sure buying would be the best choice.
It’s just so many factors when owning especially maintenance of the property. Personally, the worst is that front-loaded interest for the next 15 years. Take this house for example: $4,895 is PURE INTEREST. It’s straight up money to the bank and never to be seen again. 😢😢
I think this is a really awesome breakdown. However, most people that I know that rent don’t have the money for a down payment on a home, so the person wouldn’t have money to put into the stock market.
Great video ! Renting is always better for short term - ( a Few years ). Buying is always better !!! ( in the long term )
video suggestion - Affects on credit score - Renting vs buying.
Paying off a Million dollar loan and what it brings to the table credit score wise & Buying power wise.
Also, you forgot to calculate the state tax on long term capital gains. You only did federal. In CA that raises to about 25-30% of gains. . Renting is NEVER the better option if you can afford to buy.
Also something you might have overlooked on the renting equation. If you invest that $200k downpayment in stocks you can then access margin for your stocks to get in even better return. I feel like if your factoring in the fact that when you buy you are leveraging your downpayment with debt to do the same for stocks also
margin works the other way with losses using leverage- stocks don't go up forever and are not linear
thanks shelby do you do real restate in Honolulu, HI ? thinking abut buying or renting there
Love these vedios sheldy!!!
You mentioned there is no down-payment for renting, but I would be curious if it would make a difference to compare there numbers while including a security deposit +first and last months rent as a "down payment" because with a $5500 per month rent that all adds up
I did mention there’s no down payment for renting! And that you could put that money in the stock market instead
Excellent vlog 😊
To me, owning only makes sense if you are planning to stay in the home for at least 10 years, if you don’t mind handling routine maintenance, and if you want to customize your home in ways most rentals won’t allow. I love owning, but I know many people who would be much better off renting because they neglect maintenance issues and aren’t really into customizing their home. To me, the fees involved make selling after only 5 years a waste. Housing markets definitely don’t always increase as dramatically as your example-and they truly do go down at times. I’ve had the experience of owing more on a home than it can sell for due to market changes-which is terrible and can leave you feeling trapped and resentful.
An informative video. Thanks, Shelby.
Great video great details.
Nice breakdown! Couldn't help but notice the blinking green light on your neck from your mic, very distracting. Maybe put a piece of tape over it to cover it up.
That’s assuming it is appreciating at a steady rate. Sometimes there are dips and over the long term is usually when you see appreciating.
Nice review and i love it
🤑🤑🤑🤑🤑 in metro Atlanta, GA 2000 sq ft house on half acre of land is $250000 & less. In the city, a million still get you 3000 sq ft house. Condos are at least 2000 sq ft with good amenities ( pool, common area, package center, gym, parking)
Nice vlog video ❤❤❤
My dream is to live off dividends and having vacation homes that bring in income. My primary resident is a place to live if I own it or not
Love the video Shelby! Could you do a video comparing Multifamily properties 2-4 units to Single Family homes I’m in Chicago I would love a breakdown of what would be a better buy!
Great idea that would be an interesting video!
I would love it if you could address people that may or may not claiming the standard deduction and those who would then be itemizing. Some people don't itemize and then can't deduct some of the housing costs.
Hiiii i love your all videos❤
As a financial analyst who models out business cases for a living, this was excellent.
As you alluded, I think the long and short is if > 5 years you own and shorter you rent. Long term ownership is going to win.
Only quibble I have is home appreciation should trend towards inflation in the long term. Aging homes shouldn’t naturally appreciate in value. The reason it hasn’t is bc supply has not kept up with demand. With an aging population of boomers and a lower birth rate, supply will becoming the dominating economic force and you could see real estate prices stagnate in the longer run. Though I feel the next 5-10 years have a lot of room to run up in price bc of pent up demand.
Very informative video.