DO NOT BUY A HOUSE UNTIL YOU WATCH THIS | Rent vs Buy Home
Вставка
- Опубліковано 30 чер 2020
- ► Want To Earn An Extra $1,000+ A Month? Click Here: sidehustlesuccesscourse.teach...
👇 SUBSCRIBE TO BETTERMENT BOSS NOW 👇
/ @bettermentboss
POPULAR VIDEOS:
► 7 Habits Rich People Have That You Don't: • 7 Habits Rich People H...
► 5 Ways The Rich Build Wealth That The Poor Don't: • 5 Ways The Rich Build ...
► 10 Money Mistakes You Must Avoid At All Costs:
• 10 Money Mistakes You ...
Music Credit: Bensound - Dreams
Hey, I'm Betterment Boss. On this channel I show you how I make money online and how you can start earning income on the internet fast today. If you're looking for work from home jobs, make sure to hit that subscribe button.
DISCLAIMERS: I am not a financial adviser. These videos are for educational purposes only. Investing of any kind involves risk. While it is possible to minimize risk, your investments are solely your responsibility. It is imperative that you conduct your own research. I am merely sharing my opinion with no guarantee of gains or losses on investments.
This channel is monetized via UA-cam ads as well as some affiliate links. If a purchase is made after clicking the link, I will receive a small commission at no extra charge to the buyer. Thank you all for watching!
Buying always win when you think long term. Or just buy rental properties such as a duplex and live for free. Problem solved.
Betterment Boss because people don’t invest the money they save from renting. Remember like the video says, you don’t pay for repairs, taxes and other things because that’s the landlord’s job. But instead of saving or investing that money majority of renters spend it on random things which is still money lost. However, If you buy a rental property which means the rents should cover the mortgage and expense plus put some money in your pocket. Buying always wins
Let's be very clear: if you live in the house, its absolutely NOT an investment... It is only an investment if its generating money.
Another alternative would be to stay home and inherit a paid for house from his parents. Home ownership is the only way to get a locked in monthly payment. Renting will have astronomical increases at the end of the lease period. There are numerous state regulated programs to assist with home buying that wasn't mentioned. The younger you purchase the rewards will be greater as you age.
It is very nice that you present arguments for both sides of the spectrum so we can choose for ourselves where we land on the scales!!
after i got my own house , my tention is gone, now i can save more money😃
I have lived in a wonderful and moderately expensive apt complex in a suburb of Baltimore for 21 years where rent has increased about 2% every year. MY total costs for maintenance over that time has been under $50.Also,...my MARRIED sister who lives and owns a home in Plano IL will pay over $8000 a year just in property taxes even when she pays off her mortgage. I amassed a fortune and recently retired at 59.....and she lives paycheck to paycheck and has next to nothing in retirement. I know every situation is different,.....this is just my TRUE story. And Btw,....I was broke and bankrupt after a divorce 25 years ago. She has been ''happily'' ? married for 20 years.
WINNERS WIN
Refer her to Dave Ramsey. They’re house-poor, but can recover.
This story leaves so much out lmao. You could be making 500k a year and her and the husband could be making 50k together. Ofcourse they are going to be poor
Excellent video! Amazing as always
Nice video. Here in the UK, rents can be 2x or 3x a mortgage payment. This is the principal reason why the UK Government has been promoting home ownership.
If you want the best of both worlds in renting and home ownership, buy a co op or condo.
There is always down-payment assistance and closing costs can usually be wave or have the seller pay.
You don't want to be renting in your 60 - 80's, buy by your 40's. Do a 15 year fixed rate.
That’s my plan!
Betterment Boss 15-year means you’re paying it off quickly by default. You pay less interest over the term of the loan. By planning ahead, one can avoid being house-poor by buying a house that costs around 25% of after-tax pay on a 15-year fixed.
@Arikm7 I think now is the perfect time to buy a home for you. Because you're old enough that saving for retirement isn't much of a priority (still a priority but less so) and you can live out your days in your own home.
Unless you don't have enough saved for retirement that is. That's another story 😕
Good advice boss !
Home ownership needs to stop being called the American dream, or a big investment. Because it’s just not. It’s a place to live. And that’s it.
It will always be a dream to you
Especially when you can’t afford it. Most people buy a home and don’t update the house because they don’t have the money. And most people are a payment away from foreclosure. No money saved and no updates in the home. It’s just a plane to live that’s all. I have friends who rent and invest more money that made them rich. Home ownership is not the only way to build wealth.
lynnett gerald no it is not the only way. But the nice thing is that it is stable way to live your life. Rents go up, interest does not.
Depending where you live, renting is NOT always cheaper. Also, you not always need any money down to buy a house, and still be a good financial decision. PMI is NOT that big of a deal; and there’s ways to eliminate it (refinancing once there’s enough equity). In conclusion, renting may be better in some areas, but in the north east of the U.S. si NOT. Period.
Houses in my city are $800,000 to over a Million. Renting and investing is the only thing that makes sense for me.
@@bettermentboss Toronto.
Rent is not cheaper than a mortgage. You're paying for the landlord's mortgage PLUS profit, so if you were to rent a similar house you would be paying MUCH more than if you had a mortgage. Buying is cheaper, the argument is instead buying locks you down under financial commitments to a harder degree than renting, but in exchange you have freedom to do what you want.
Not true! Rent is cheaper than a mortgage unless you put down 20% and your property taxes are low. Most people don’t rent in rural areas so renting in an urban city or surrounding suburbs will be cheaper in 70% of the cases. A 30 year mortgage on a 250k home will cost you 500k not including the maintenance cost. Mortgages are the biggest scam in America. Because after paying off the home for 30 years, your still paying property taxes that will continue to rise every year. The ONLY WAY owning a home is cheaper or makes better sense than renting is if you pay for the home in cash or you can afford to pay off the home in a 15 year mortgage paying less than 25% of your net income. That means, buying a home you can actually afford.
Landlords profit when they combine rental income with property appreciation. Not all local markets allow them to pass all property expenses onto the tenant.
It depends. If rents are over 1% of the value of the house, buying may be more beneficial. Home owners (I am one) also spend lots of money in renovations which are costs on top of regular maintenance.
Good explanation. Thanks for sharing. I will continue to rent until I feel stable enough to purchase my home.
Having this exact dilemma. My dad is deadset on me owning a house but I don't have the money to buy nor the interest right now. Didn't completely solve my issue this definitely helped me down the path to figuring out
@@bettermentboss thank you
Just to add one more point which is interest rates, and more importantly the price of money it does not mean that because the price of your house is gone up it has increased in value. The question is how much purchasing power does my money have. How much did 100,00 dollars buy in 1980 e.g , I am willing to beat that 300,00 or 400,00 dollars is buying more or less the same amount of buying power that 100,00 dollars did in the 1980’s. Evern if your house has made a profit it is not as much as most people think, the banks make lots of money with interest rates but not really the person living in the house and paying mortgage.
I bought my house at 20 I am 22 now. I didnt know so many people were against home ownership
Do not listen to them and stay away from them, they will corrupt you
Nice! I bought my first home at 23 and now I’m 25 looking to buy a condo
I bought my own condo beside the mall on spot at 27 because i hate dealing with landlords and im so happy right now
I bought my own condo beside the mall on spot at 27 because i hate dealing with landlords and im so happy right now
We are buying a home! I’m married and buying my first home at 20 years old we have a military VA loan up to 1.0 million dollars and 0 % DOWN bought a newly built house 🏡 for $185,200 we move in next week! We plan to live in it for 2 years and then rent out for 5-7 years and then sell for the equity. DO SOME TIME IN THE MILITARY my husbands contract was only 3 years.
Have two properties that I rent out and I want more properties. I love the passive income it provides. With that being said, I'm renting the home I live in right now, lol. I won't buy another home for myself and family until the full mortgage/closing fees are getting paid by someone else 💯
@@bettermentboss My assessment are rentals are that profitable. I just started and I have 2 turn key properties and they're making me $1250 a month. Once I get a couple quadplexs I can exponentially expound my earnings/wealth. I also work so I'm trying to pay some off the properties as well as using leverage/equity for other properties. It's very achievable. Just patience and due diligence will can you there. Not a get rich overnight scheme
@@rong8889 hi, thanks for.the insight. I own a mortgage payment until another 14 years. I am living with my family and 2 kids. Do i need to pay off my mortgage or
Continue paying my mortgage?. I wish to grow my real estate.investments.
you are clever and a tomorrow thinker, do not change, stay away from the wrong people
@@roopapriya7159 Hi Roopa Priya.. I want to give you an answer but I can't. There are a lot of factors/situations that come into play. You mentioned you have two kids.. are you planning to pay for their college, are they younger kids.. also, whats your age and your plans on retirement? Furthermore, if its a 30 year loan, you're more than half way done. If you started to aggressively pay off your mortgage in the next 8 to 10 years, you could then invest the extra cash into your dreams. I like stated, you have a lot of factors to consider, but good on you for being more than halfway through your mortgage! 👍
@@rong8889 thank you for responding. My kids are small and one about to get into middle school. I am 37 and in 15 year loan and just got passed one year. Sorry I should have given enough details for a qn. My bad. 200K loans and my principal is 182 now. Planning to so some lump sum (10k). in few months I could make another 30k.buy I don't want to put my cash there towards principal..that's why I want to get insight from you experts. Again.thank you very much for responding ..
Buying is the way to go!
AS AN INVESTMENT, NOT AS A RESIDENCE
Very good video
What this video does not mention, when renting is when investing your money outside rent on shares and other investments, they are not very STABLE, even government bonds may be stable but will never make you rich, investing in a house is very stable investment with many options, you do NOT have renting, renting is only for short term only.
A couple of things you left out. #1 Tax advantages of buying a home. #2 Real Estate will beat inflation almost at every turn. #3 Many times the cost of buying is equal or less than renting (overall). #4 If you buy a duplex and live in one side and rent the other...the tax benefits can be greater and you might be able to significantly lower your out of pocket expense. (Depreciation will gain you tons on tax benefits). #5 Most landlords do not fix your stuff at your whim.
Renting is not cheaper. Your paying more
Perhaps if you are single and only need a 1 or 2 bedroom, but once you start a fam and need more space renting is not really cheaper than buying. 3 or 4 bedroom homes are expensive. Also if you are a pet owner renting is difficult and limiting.
1/ GET RID OF THE PET
@@THEBIGGESTSCUMBAG exactly or get a dog or cat that can survive in the winter.
For women and children better to rent a town house condo apartment for security and safety. A house a better for a bachelor or couple.
Rent is cheaper than a mortgage unless you put down more than 20% and you can afford a 15 year mortgage that is no more than 25% of your net take home pay and your property taxes are low. Most people don’t rent in rural areas so renting in an urban city or surrounding suburbs will be cheaper in 70% of the cases. A 30 year mortgage on a 250k home will cost you 500k not including the maintenance cost / home improvements over time, property tax hikes ect.. Mortgages are the biggest scam in America. Because after paying off the home for 30 years, your still paying property taxes that will continue to rise every year.
Why just buy a apartment with big deposit is monthly mortgage more cheaper than renting?
I did rent during two years. But finally I did buy a house. Because my landlord didn't want to work. He didn't do nothing to maintain my apartment. So I gave up. But some renters are really lucky. Rich people do not buy houses, they generally rent.
@@bettermentboss Ain't that the truth!
Здорово, что он посоветовался с родственниками. Хорошее дело советоваться при принятии денежных решений.
Renting is definitely better especially if you rent one of my paid off rentals.lol
*Buy as long as you can afford it , instead of money sitting in your bank . If you cannot afford there is nothing wrong with renting*
I’m in my 40’s. I used my 30’s to raise my kids. I’ve been back in the job market for two years. Is it too late to buy a home? Note-also married with three kids, living in California.
How about this idea. Hear me out. Mortgage a house then sell it after 5 years. Search it on the internet and it will say 6.8% a year of appreciation. 34% appreciation in a 5 years then sell it and Now rent for another 5 years to save money. If the interest is only 3% on the mortgage then you’ll gain 19% in 5 years and now you invest freely without harming your current situation. You can have all the extra money you want. Like warren buffet said “ the stock market is a device for transferring money from the impatient to the patient. Think about it.
I Prefer Rent Home Then Buy... 💎😜💎
Well you can't pay a mortgage when you make 13 dollars an hour🤷🏾♂️
Exauce Mayunga you just need to learn to budget and don’t take financial advice from broke people. I use the free version of EveryDollar.
Step 1 Save a $1,000 emergency fund that you replenish if you ever have to use it. You can sell stuff or take on an extra job, like i work full time and do food delivery on the side to pay for school.
Step 2 pay off debts using the debt snowball (google it)
Don’t get into any more debt for credit cards, buying stuff, travel, car or school. Your budget will help once you practice it. When you take debt off the table, you’ll find ways to live without it.
Step 3 save up 3-6 months of expenses
Then save for a down payment.
There are more steps and other ways to go this, but this is a great way to build financial muscle You got this!
P.S. be mindful of the type of girl you date and deal honorably with women. When you (eventually) marry you’re more likely to become a millionaire if you can get on the same page and be responsible with money.
@@eggsbeeped what village do you live in?😂😂 jk
There are always pros and cons to everything in life... My hubby used to own a home and he said it was very expensive... We decided to rent an apartment cause we don't want the financial stresses of homeownership
there are stresses with renting
I agree. It is so much easier to rent. Just budget for rent increases. No one wants to rent out a home at a loss, so the renter must always pay
Rent is longer cheaper tbh . But they’re are pros and cons to both
It's better to rent than to buy in today's housing market. Fast-rising home prices and higher mortgage rates have made it cheaper to rent a home than buy and own one. ... Renting and reinvesting the savings from renting, on average, will outperform owning and building home equity, in terms of wealth creation.
Yes just budget for rent increases until the end. This means for retirement, you need to figure out how much you need including inflation. A mortgage will go on for 15-30 years and hopefully end. The nice thing about a mortgage, is you don’t have to worry about housing in your retirement. Your property tax is less then your annual expected rent
you will be renting to the day you die
Hello I want to donate reply
@@bettermentboss I am a trader and stock market expert I made $1600 from your video I want to donate you 1000$
Stop thinking based on 20 year old background
Rent save up 20% downpayment and buy.
How do you save while paying rent?
FatRonaldo1 I’m currently doing it right now. I’m 100% debt free and I work a extra job 3 days a week. I just got off actually. I’m saving about $400-500 a month. It’s pretty low because of the corona virus but usually I save about $1000- 1500
Ludens fair enough, I’m living in London where rent is over £1000 a month on a one bedroom flat or else you need a 40k deposit haha
Damn I didn’t mean 29% looooooool
Ludens DEBT IS GOOD, IF LEVERAGED CORRECTLY
whats up with your voice influctions?
Rent! Us owners need the tenants lol
Test
Nice. Comment working fine. Haha