I don’t mind renting, but knowing the landlord has autonomy over my life and can ask me to leave anytime haunts me. The constant feeling of impermanence and the stress of moving get to me.
Owning a house gives peace of mind. Reaching retirement without the burden of a rent on my shoulders or the risk of being evicted is my FIRE. As long as I own the roof over my head, everything else can be managed.
If you can pay it off quick But renting has to be at the right price. Many people take a lifetime paying off a house but the amount they have spent on repairs renting would have been a better option.
I will be forever grateful to you, you changed my whole life and I will continue to preach on your behalf for the whole world to hear that you saved me from huge financial debt with just a small Investment, thank you Jihan Wu you're such a life saver
As a beginner in this, it’s essential for you to have a mentor to keep you accountable. Jihan Wu is also my trade analyst, he has guided me to identify key market trends, pinpointed strategic entry points, and provided risk assessments, ensuring my trades decisions align with market dynamics for optimal returns.
I'm favoured, $90K every week! I can now give back to the locals in my community and also support God's work and the church. God bless America,, all thanks to Mr Jihan Wu😊🎉
I've rented most of my adult life. I don't think of rent as a housing cost, I think of it as a freedom cost. Freedom to move easily, from painting, plumbing, mowing, a-hole neighbors, all of it. If my rent gets too high, I move.
I'm a CPA with 40 years working in New York, New Jersey Connecricut area. Right now, my clients can buy that house for cash, but they won't do it. They prefer to rent it and let the landlord replace the roof. They have better places to invest thier 1.4M, rather than speculate in residential Reale estate. It can make sense to buy when prices are lower. GOOD VIDEO
I rented for 24 years and not being under a landlord's thumb is priceless. They can pull the rug out from under you, drastically raise the rent, evict you, limit your freedom with stupid rules. My house, my land, my rules. They can all go to hell.
Taxes are low where I am, no HOAs, eminent domain is unlikely either but I would make money because prices are way higher now and I hate the house anyway. Duplex with ahole neighbours and obnoxious dogs. Didn't have much choice at the time with low inventory and eviction after funding some old c¥^!'s retirement for 9 years.
My two cents: Rents go up. 20 years from now, that rent could be double what your mortgage payments are, and you’re not building wealth. When I bought my home for $180k many years ago, rent was a lot cheaper at about $600 a month. Rent surpassed my mortgage and utility/other costs within about 12 years. And now that my mortgage is paid off, I’m way ahead of where I would be throwing money into rent
I feel this way too, as someone who bought a house before prices went up drastically. But if I was in the market for a home right now I don't think I'd even buy one. So many things about home ownership are really boring to me and my husband, like lawn care or outdoor entertaining. We have absolutely no problem with outdated cabinetry, and would rather spend our money on travel and savings/investing. I could picture us renting forever instead of buying, if the decision were made today.
You have to run the numbers. Rent goes up but so does property taxes, utilities, insurance premiums and maintenance costs. Opportunity cost is also a factor.
people move every seven years on average. buying a home can be good long term but bad short term. if we assume that you stay in your home as long as you do. then buying normally does beat renting. the more frequently you buy a home, the more you pay in closing costs. in the beginning, renting beats buying because of closing costs. rent does increase faster than mortgage payments, so after some time there is a break even. then again, by buying a house, you miss out on putting that down payment and closing towards the stock market, which appreciates faster than housing does. a counter point to that is that when you buy a home, you do so with leverage if debt is in the picture. with 20% down, you can control $400k with $80k. $400k grows faster than $80k and all the appreciation on the house is yours. at the same time the effect of leveraging is offset by the interest you pay. the more leverage, the more debt. the more debt the more interest. so you have to run simulations to determine which wins. especially if investing in the stock market or something else is something that matters to you. another thing to consider is whether rent actually does increase as quickly as everyone says it does. if you moved often while renting then it most likely is the case that rent increases fast, but if you stay in the same place and prove to be valuable to your landlord that you are good at making your rent payments, hes not going to want to lose you and may even keep it down if you ask him to. otherwise he'd have to find another tenant because you found a cheaper place to rent
The thing about owning a home, which I unfortunately had to learn the hard way, is that not only is it a HUGE financial investment, but also a HUGE TIME INVESTMENT. There's no automated condo maintenance, no property management help line and nothing you can do except handle things yourself. YOU have to call someone if your sink doesn't work, YOU have to find someone to fix your faulty garage door, YOU have to find someone to fix your roof.
@@zachroberts1988 You're right, property maintenance is crucial for maintaining a good home, but those first few years as a mid 20-year old and a naive house owner, I definitely learned things the hard way.
We bought a $166k house in 2004. It is the biggest financial regret I have. Unless you are really good at fixing things yourself, just the maintenance is SO MUCH MONEY. At least where i live (NY state), property & school taxes are painful. Even if we owned our house outright, we’d pay $800/month JUST in taxes. It also ties you down to a location, which is one of the reasons employers WANT you to be a homeowner. (Yes, you can sell, but it is a much bigger deal than just walking away from renting a place.)
Thanks to your videos I have reduced my expenses and plan to pay off my mortgage in 2 years. Prague, the Czech Republic. Why we don’t learn these things in school🤷🏻♀️
Bought our adult kid a house in a very affluent suburban town in proximity to the “Silicon Valley” region in the San Francisco Bay Area a few years ago!! The house is now valued at $1,600,000.00 (Zillow October 2024). We purchased the house for $300,000.00!!! Living the dream.
I am a Boomer. And, You are refreshing. I learned some of the things you speak of in the sixties and seventies. “Do I need it, Or do I want it.” Words I’ve passed on to my children, grandchildren and great grandchildren. 👍👍☝️😎✌️ keep it up!
I’m a high school teacher. They want us to push kids to choose a career that they ‘love.’ No such unicorn exists. And I tell them that along with the advice you gave here. No one wants a job they hate but there’s a reason jobs come with a paycheck - you wouldn’t do it for free. I think the reason we see so much job dissatisfaction among our young adults these days is that schools are making them believe we can all do something we love. That isn’t even reasonable. Thank you for pointing out the financial reasons we need to choose better careers as well.
If I had a kid in school, I would strongly advise them to go to a trade school and learn to be an electrician or a plumber. There is never a shortage of those jobs, and they pay well. They take many years to master but even as an apprentice, they do pretty darn good and their skills are desired. They can work for a big or small company or go it alone when they become a master. I see too many kids go to college and come home to their parents and take on a job that didn't require any further education.
I think it comes down to deciding if you are a live to work vs work to live person. Live to work people will find that job they love while work to live will find the job they can tolerate that finances their interests outside of work and has a schedule they can live with
I learned from experience that your passions and interests should be side hustles at best. They can still help pay the bills and give a leg up on building wealth, but not having them be your main paycheck takes a lot of pressure off. Plus, you can do them if you feel like it or not, making your work less contrived and less prone to burnout. I always think of the hair metal bands of the 80s in how they were the epitone of "doing what you love" but yhey were more of canary in the coal mine. They would start out with one or two great albums and are just some guys having fun. But after they hit it big and get record deals their music most of the time got more bland and mass produced sounding over time. Not to mention all the tension and drug abuse involved with always being on the road pressured to perform.
I taught my kids, that you can find a job you love. OR you can use your job to make money to DO the things you love. I think the goal should be to teach kids how to appreciate things about a good job, so they don't hate it. Maybe it's got flexible hours? Maybe it's close to home and you don't have to commute? Maybe it's got some good benefits? Maybe your co-workers are nice? Maybe they offer training? Maybe they match your 401k contributions? Maybe you can make connections to start a business on your own? Maybe you're learning skills you can take elsewhere? There are things to like about every job--even if it's only paydays.
The problem is that builders are not building basic affordable homes anymore. They only build high end McMansions and state and local regulation and zoning laws make it hard to build regular affordable homes. If I was going to pay 1.4 million for a home, it would have to have a lot more than what you described.
I have enjoyed Mint Mobile for three years now. I can't believe the number of people I can't convince to switch. The Cellular Marketers really have a hold on the mindset of folks. Meh, if they want to spend in two months what I pay for an entire year, so be it. Thanks for the vids Nicole.
Regarding rent prices, many people ignore the cost of transportation. I rent centrally, which means I don’t need a car as everything is available within walking or bus distance. Regarding career choices - I wish someone had done a cost analysis with me when I was choosing majors. I realized later that many vocational schools offered very low tuition for jobs that paid more than what I was paid for my first job out of university, but there was such a stigma associated with them as “smart kids” went to university. How wrong I was about that!
I think that's a great point to consider. I live in a small enough city that pretty much everything is a 15 min drive or less. But I do have coworkers who live more than 1 hr from work and I often think they must be spending quite a lot on that commute. I would hate it.
Oh gosh. The $1.4M house I used as an example would be well over $3M in the downtown core of Toronto and would probably rent for about $9000. We’re screwed.
For the universities, "it depends". Some degrees are still well worth doing even with the incredibly high fees you get in north America (Law, Medicine, Dentistry, certain engineering courses). It's more the Liberal Arts courses that, whilst interesting, saddle you with debt and don't aid your earning potential
@@peterwstaceyBut that’s the point - investing in a university degree that will pay many dividends later is different than studying “anything” and expecting a high paying job just because you have a degree. Also, many professional programs require many years of study incurring thousands of dollars in debt, like medicine. What I meant is, I could have had a decently-paying job with only 1 year of vocational training rather than 3 years of university. I also wish the adults at the time had focused more on how much life costs and choosing a well-paying job based on that rather than finding something you are passionate about. Passions don’t pay bills. They also stop being passions when you need to do it to survive.
Thanks Nicole! You are right that with buying a house we pay the opportunity cost of not investing. However! As someone who hasn’t had a permanent home for nearly ten years and moved a lot due to landlords either asking us to leave or us moving for jobs, I can easily say that the opportunity cost I pay is worth it. I now work from home so I know I don’t have to move. Bought a home half a year ago and honestly we feel so happy and content. My plan is to pay off the mortgage early to be debt-free and start investing once I’ve done that, we will have plenty of time then still. We also plan to semi retire early because our cost of living will be very low due to paid off house. But for someone who doesn’t mind moving around, I totally agree that renting and investing is a wonderful strategy and I’d choose it myself if I hadn’t been so sick of moving around.
I'm on a fixed income & I find myself eating out & donating to local charities. My goal this month is to only eat out 2 times. Wish me luck because I'm going to need it!
This video is on point. In short, don't do what society says is in your best interest. Evaluate what's right for you and your situation and proceed accordingly
We got lucky because we bought our house under its estimated value (109 100,000) and saved $25k. This was 1998. And we got a good interest rate and we paid it off early. BUT the trade off is that we are in the country so before we retired we had a 20 mile and a 30 mile commute. And I would always try to get groceries on my way home from work. 10 miles to the nearest larger grocery store. If I didn't buy it, we would just do without it. And in a way that was good too because we didn't shop for "entertainment" because at the end of the day, you just want to get home.
@@KACn5582 I had this experience too and now that I’m retired the better/ specialized medical care is 1-1/2 to 3 hours away depending on traffic. Something that was not a problem even ten years ago when it was a 45 minute drive. Traffic and parking is so bad locally that you hide until the weather keeps everyone else at home.
A part 3 would be great. I knew these but then again I’m 64 and I’d better know these. However, I’m glad you’re putting this out there for others to hear because I hear a lot of nonsense coming out of people’s keyboards. HGTV made everyone think they could flip a house or become a landlord and make bank. The reality is not so simple. As you said, a home purchase is an emotional one not necessarily a wise financial one. I own my home outright but maintaining it as I age means needing a cushion for anything that pops up. I can no longer do the heavy jobs or precarious ones like cleaning gutters … no do I have the desire to do things that once excited me, like painting and scraping. Every time I discover I need to fix something it’s money and time I could’ve spent on more attractive experiences, for instance a concert or trip… it just might be better to have a larger investment portfolio and bank account.
I'm 67 and I agree completely with you. I own my home also but that does include all the required maintenance expenses. Most I still do myself. Some I can't. Like putting on a new roof and replacing the heating and air conditioning system system, which I did 2 years ago. Still need to have a few very old windows replaced, which I may attempt to do myself, maybe not, and paint the house in the near future. I'm doing all this now as I do plan on retiring in the not too distant future and hopefully everything I'm doing now will last until I'm no longer here and I know I won't be able to afford to make the necessary home improvements after I retire. So, I continue to work to be able to afford all these things so I won't have to worry about them later after I retire.
I think you made the right move in buying your home. If now at an older age you feel the maintenance is either to hard to do or expensive to afford. You could now decide to sell it and use the capital to rent somewhere.
I was fortunate that I stumbled into a career that was well paying, that I had an aptitude for, and as the icing on the cake turned out to be something I enjoyed doing. And I agree that the two questions you should ask when considering any career are "what can I expect for income?" and "is this something I can do as a career". You don't have to love it, but if it's something you dislike I think you should search for better options.
A home is not an investment. It offers a family and community stability and pride of ownership. A landlord is free to evict at any time with a month or two of notice.
I think a landlord would sell the property before he'd keep letting you rent it at a price that doesn't cover his own expenses in taxes, maintenance and insurance... in that respect it's definitely a saving on costs. They'll tell you that you could have put the money in a stock market investment, but that's not really a fair comparison, you can't insure the investment, but you do have an insurance on the house, and the odds that the house keeps up against inflation are better than if you would have left the money in a savings account or in long term accounts, so if it's not an investment, definitely a sane way to reduce your expenses in the long run.
I'm in finance and have been frugal my whole life. I grew up in poverty and will not go back. On the house thing, it's not always a good idea but in my case, rental vacancy is less than 1% so it's far cheaper to own than to rent. Rent is twice what a mortgage would be for the same place. As a disabled person, I work now but I'll have to retire early and I'm so grateful I have a paid off house. The stress of ever increasing rent on a fixed income isn't appealing. You are absolutely correct about bleed spending. It adds up so while your coffee may be something you can fit in your budget, the mindset that well it's only a few bucks can really sink ya. Especially if you put it on a credit card and don't fully pay it off. Then it's not just five bucks. Of course I'm here for a third version of this. I've been saying these things for years but no one listens.
Thanks Nicole. The carrying costs of homeownership is high and continually increasing. Also, true investments generate cash flow as in the case of a rental property but not your primary home.
A tip for travelers: the last time i bought a Macbook i bought it in Vancouver instead of Québec and I paid 4.5% less in provincial sales tax. On $2200 it's worth it.
9:14 "Just remember that real life starts the minute you clock out." Yep, and I've had nothing but good reviews from employers. My one place of 8 years (left in 2021) had all of my coworkers loving my work ethic, but they all knew the place was draining me from the nonsense.
@@Rockerlady was on that line cook life. Loved the thrilled of busy work, but it's a lot of nonsense. Worked a lot, saved a decent amount (wish I invested sooner)
I am amazed that the tax write off thing needed to be explained but there you go. Thus a part three is really needed. Home ownership is not just about the house, but also the land. It may not amount to much in the city but in a lot of places the house comes with the space to do many things. An apartment, maybe potted plants.
If I may add another kicker to the self-employed aspect (in Canada, anyway). If you WFH or WFA (A for apartment 😉), your best strategy is to carve out a dedicated space where you consistently do your work. THEN, you can "write off" that portion of the space and related usages as well. For simplicity, you have 500 sq/ft condo and say use 50 sq/ft as your work space (10%). Now you can technically write off 10% of the annual costs of heat/cooling, electricity, rent/mortgage, maintenance and even insurance. I've freelanced since 2008 and as each situation is unique, I'd always advise consulting a local tax advisor/accountant to discern the best strategies for your unique situation. For me that advice is the best $170 CAD/yr I spend (which BTW, you can write off the following year too! 😜) Not to be too cheeky about it, but the film "The Accountant" starring Ben Affleck has a great scene that hilariously demonstrates some aspects of the strategies that can be employed: ua-cam.com/video/CLrWCc-75j4/v-deo.html Like I said, always consult a professional. You don't have time to read the tax codes and want to worry about the CRA in Canada or IRS in the U.S., they do. 😁
@@colleenmarin8907look at the graphs available on line…in the currency of your choice. Also look at big time frame (years) not just daily, weekly changes…
Tax write-offs for business expenses always seem to confuse people - You explained it so simply and directly Hopefully this leads to less confusion on that topic!
100% spot on girl 👍 On every item you spoke about. A house is a lifestyle choice. I paid 100% cash for any principle residence house I lived in. I like having a garage to work on my vehicle and motorcycles is why I eventually got a house with a garage (new house that I had built). I saved more dollars when renting which was part of my goals and chosen path to being able to stop working sooner than 98% of people. Know where every dollar that comes in and goes out is going is a huge benefit. Write-offs never make it free.
You’re brilliant and also a comedian who could do successful standup. Your videos resonate with my values and life practices so closely and it is highly satisfying to be reminded that others get it. For so long i always felt like the outsider in how I go about my life and I think the more conservative cookie cutter world has been forced to catch up. Thanks for your inspiration .
If you purchase a home and live in it for many years, you will come out ahead. You can’t look at it at just a point in time. You are taking into consideration that rent will be going up each year so you won’t be saving $3000 a month in the future. The difference between the house payment and rent will get lower and lower and it will flip at some point so the house payment will be less than rent.
@@colleenmarin8907 no, I try to live self sufficiently. I have a big garden and solar panels on the roof. I get by on £500 a month. I'm in seventh heaven 😁
@@seanoconnor8843 I hear ya...I am in the USA and I bought my home outright, I can live very nicely on $500 a month...but my business recently took a downturn and I don't always make that. (I also have a small cat sanctuary, so THAT gets money BEFORE me!) BUT the peace of mind is amazing!
Nicole I have two good examples of money management gone bad. I heard about this married 38 year old that bought a 1.2 million dollar home in Toronto. His parents gave him the down payment and now with higher interest rates he is $ 2,000 short every month working 2 jobs now. Another couple was on Dr. Phil as he talked about inflation to the worried audience that is on a financial razor's edge. The couple spends $ 30.00 .$ 40.00 a night to heat the home with a diesel heater. She is working 3 jobs and with him they make 100 K and have a 5 year old boy. I told them we have not heated our home at night for 40 years. Get thick blankets like the Walton's did in the depression of the 1930's . Open a window as we do at night to off gas the home for better immune health. THINK , BE CREATIVE !!
Hey Nicole, the more I watch your videos the more I like you. You're smart and funny and have seemingly endless good ideas. I know that more comments is better for your channel, so I'm going to make three comments to address each of your ideas here separately. Also I'm a little long-winded, so there's that. I've commented before on other videos of yours, and here again I'm just giving my opinions and experiences as a retired engineer turned investor. Not your target audience necessarily, but I do find your insights very interesting. I've seen before where someone laid out the math of renting vs. buying and it's good math. One caveat is that a person has to have serious mental discipline to take advantage of it. If you rent, and put the remaining income to work for you, you're going to come out way ahead in the long run. But you have to be disciplined to do without that money in the short term. Having some automatically taken out of each check before you 'see' it can help. I rented for many years and spent basically all the rest of my income month-to-month. I've never been innately smart or disciplined about money. I bought the house I live in now 14 years ago, choosing one I could afford, and I've built equity and have very much enjoyed the autonomy. Now that I'm retired, and facing a nonzero risk of living a lot longer, I need more money for future me and I'm investing pretty aggressively in real estate. I cashed out as much as I could and put it into real estate dealings that have moderate risk and high potential returns. So in the end my house turned out to be a decent investment for someone without much fiscal discipline. The house payment forced me to build equity in this house, and now it's providing seed money for better investments. I don't know if this will be helpful to anyone, except maybe someone who has equity that could be working for them. Yes, the house will probably keep appreciating, so it's an investment in that sense, but that doesn't do you any good until you sell it. It still appreciates whether it's paid off or not. Real estate is my choice to increase my net worth, there are other options that might work for someone else in their long term financial big picture. Something to think about. I've come to disagree with the conventional 'wisdom' that says paying off your house and leaving it at that should be a life goal. Some people call that 'dead equity.'
Great thoughts. I was lucky enough to buy a house a long time ago. And I was honestly house poor at the time. But now rent is three times my mortgage and I'm so happy that I suffered through. I also bought the smallest most basic house i could find. I agree that's no longer realistic for middle class people.
I bought my house 18 years ago with the plan to upgrade after 5 years to a nicer home. In that time the housing market crashed, I had a job loss, rented out the house for a total of 5 years, went back to school, started a new career and had three out of state moves. I've lived here a total of 13 years and refinanced in 2021. Rents and home prices skyrocketed in my area and many of my coworkers pay $600-700 more a month for a one bedroom apartment than I pay for a 3 bed 2 bath house. I feel fortunate that I have a house now with a lot of equity while I see so many paying a ridiculous amount for an average apartment. The downside is I'm stuck here with a low interest rate and a housing market where I can't afford to upgrade.
Most people, especially woman want houses bigger than their needs, or means. Big nests cost more. Not having a huge mortgage means you can pay it off quicker. Being debt free is real freedom!
true, actually the type of housing that keeps its value best are two bedroom appartments and three bedroom houses with a modest garden. It's the type of house that everybody is on the look out for, the big villa becomes less popular when there's a crisis going on.
Once again, Nicole a great YT presentation, love you Nicole, as in I love apple pie. Yes, version 3 a must. Not many girls around like you, and not many guys that are willing to listen to you… maybe wrong on the last one. Your YT casts are of great value, thanks Nicole.
We rented a stupidly large 3600 sq ft. home for 5 years starting back in 2011, and we paid a LOT less than the mortgage payment would have been. Because it was still just a 3 bedroom, we only paid a few hundred over market rents for a smaller 3 bedroom home. Had we tried to purchase, it would have cost us at least twice what our rent was. We had no shame admitting we were renters, but friends kept assuming we bought that thing and wondered where our money came from because there was no way the rent could be affordable! We couldn't afford a house half that size when we finally moved out into our purchased home.
I'm a realtor and I definitely didn't clutch my pearls. I advise my clients on this regularly. Oh, and 20% down is far from standard. VA & FHA loans are often 0%, most others depnd on your lender. 5-15% is standard.
Always great thoughts from Nicole and I'm sending the channel to people that can benefit from it. 1.4M house: I wouldn't touch it if all I could put down was 20% I'd say minimum would be 50% loan to value. Like you I was in a great 3 bed but moved up to det 4 bed but put down 60%, for me mortgage has to be a lot lower than rent for same property otherwise no point. I'm with you down the line, love the 'bleed spending' concept, if we can name it then step 1 in controlling it!
Across North America, home pricing is dislocated (it's not aligned with "reality"). Home pricing has responded to various economic disturbances such as a building disruption from CV days, low low interest rates, Private Equity dumping colossal amounts of capital into rental homes, and that's a colossal wave of liquidity that has swept across the financial landscape raising housing prices. That's what our host simplifies as "speculation". Add to that the numerous home owners who have "counted their chickens" prematurely and cashed out equity and whose property taxes and insurance have risen dramatically - they desperately need to see their high property value as real - they can't sell since the new mortgage will be at impossibly high rates. Then there is their tax authority (which has an impossibly high budget) and has raised property assessments by 30 to 50% so that the tax revenue can meet their bloated budget. Finally, the banking system has these mortgages on the books (from new buyers and old owners who've refinanced) who can't realize lowering property values - they become insolvent. Not to mention the fact that commercial properties on their books (office buildings) are crashing like never before. Nobody want's to see falling property prices. Nobody but wishful house hunters (probably the most valid group of home buyers). Finally there are the enormous swaths of rental homes (as our host has noted, whose rental income come nowhere close to a cash-flow situation) - they show a negative cashflow and cap-rate. Those "investors" include individuals, Air BnB people, and the big gorillas: Hedge Funds and Private Equity. They are going to sell, eventually, once the pain reaches a point. They are white-knuckling their properties hoping the lowering of rates will buoy their property values but that's not likely. There is a housing property crash roiling across North America and it's underway in Southern US states and gaining speed.
Property taxes, as you stated, are necessary to support the city's "bloated" budget. They may put a cap of a 2% increase on property taxes, but, they reassess your property value to DOUBLE what it was in previous years which effectively DOUBLES your yearly property tax amount. Their explanation: "Your neighborhood has been under-valued and needed to be updated". Oh you can appeal the assessment, which I did, vigorously!! The assessor came to my home, took pictures, we talked, they left. The final outcome? They gave me a 10% discount on my property taxes, for ONE YEAR!!! Bunch of BS. Plain and simple.
I started to invest when I was about 16 years old, but my parent were not rich so it went really slow. When I became about 26 I invested all I could spare, always in single stocks. Now many years later I can see that I have missed at lot of opportunities with my strategy, but anyway I have a good portfolio today mostly uranium, silver, gold, copper, steel miners, oil and gas and coal, pharma and technology. I cannot live of my dividends yet but they add a significant sum to my yearly income from my work. One thing which makes a big difference is how much you spend on cars. I have an old beater, which I maintain very well and this saves me a lot of money which I can invest instead.
Sure I knew a lot of it but I like to keep an open mind and hear other perspectives. So ya make a part 3. Also, while you're working, I believe you should also be an investor.
I have everything payed off. I love it no huge car payment,insurance. No mortgage just property taxes. Which need abolished by the way. I am able to repair my own vehicles and home maintenance im HVAC certified. It works for me. Lifes a lot simpler. Im thinking about jetting the power company. That would be the ultimate. 😂 I can wire some solar together. Im thinking about a system that can run an AC. When sun comes up AC comes on or heat pump. Put in a woodstove. Ill be fine. Everytime the banks crash the economy i learn i just do not need a lot of things. 😂
On write-offs, you are so right. I believe with your example, it's what the college kids are calling "boy math" and "girl math" now. Pretty much the thinking of "Oh, I could save a few bucks on income taxes by spending more for my business?" followed by "why am i losing money?"
I saw a great finance short the other day of this couple that bought a 60k F150 truck (naturally) so they can "write it off and reduce their taxes that keep going up." Sigh. This is why most small businesses fail in the first year lol
The "not buying coffee/avacado will make you rich" meme ....its ridiculous. However, i agree that there is some truth to it. The difference is trying to budget for saving AND actually living a life that make you content. 100%
Dear Nicole, really good analysis, however as a home owner I believe you could consider some ammendments when you compare rent with ownership cost. Whereas the rent is going 100% to other parties, a mortgage is divided between interest and amortisation, where the amortised part is not going away. Instead, it is being added to your personal wealth. So from my view the correct comparison ist the interest plus maintainance plus tax with the rent, and of course one should see not to massively overpay a house because the risk of wealth loss in case a sale is needed increases. Usually making a good m² comparison does the trick.
The mistake that people make with tax breaks is that they think the government will send you a cheque with the tax savings amount, they take it from source.
Same here in the Kansas City metro. I enjoy condo life because of my friends here and access to many great amenities such as the pool, gym, clubhouse, etc. My single homeowner friend berates me for ‘throwing away money on rent.’ Meanwhile her property taxes are more than my annual rent. Utilities, home repairs and maintenance and so on make my financial situation better than hers, at least in my eyes.
@@teachertraceeagreed, the copium all across this comments session is really bizarre - study after study shows that people per income bracket tend to spend the same amount on renting or owning housing over the course of a lifetime, home owners massively underestimate ongoing housing costs which renters are immune to. Obviously renting has its own set of problems but owning is not easy either
Thank you for talking about "write offs". It's easily one of the most misunderstood tax terms. We shouldn't even be calling it a write off. Just stick with calling it a "deduction".
Let’s not forget about the exploding costs of insuring the house that you own in some parts of the country. Indeed, I am told that in parts of the Mountain West (USA), it is extremely difficult to get ANY policy due to fire risk.
I'm renting a house while paying down debt to purchase my own. I've been informed the owner is going to be putting the house on the market and has given us 3 months to try to find something else. I have an 81-year-old parent, and 12 & 14 girls residing with me. The rental market is horrible. Overpriced. We were STRESSED OUT. Thankfully, we applied for 2 affordable apartments and should hear something this week. I would never rent from a private owner and while I know rent prices can increase, historically, where we have applied, they have not increased by much. I still plan to purchase a reasonable home. I don't ever want to go thru this again.
UK here. Earlier this year I got forced out of the place I was renting while I was unemployed abd broke. Had to leave most of my stuff behind - humiliating and infuriating. Never want to be in this position again. Am prob too old, wrongly qualified and (mildly) autistic ever to be able to afford to buy. Well done me.
I keep explainig this to everyone but nobody seems to get it. Having a high number of unsubscribed viewers is actually great. It means you're getting new people and your channel is growing. If it's always the same few people watching, chances are 100% are subscribed. That's not good because the channel isn't growing...
I was also wondering. But one time I heard something else than "subscribe": I think it was a small niche channel that made a video about a popular topic and his message was (as far as I remember) "If you're only on my channel for this video, a like and a comment are more useful than subscribing and never watching one of my other videos".
I have seen property values drop depending on the neighborhood. My grandparents had homes they rented out, nice brick homes in Jackson, MS. They paid around the equivalent of $160k in today's prices. The neighborhood is nothing but gangs now. Houses were sold for $65k. Even with rent that was collected, they didn't even break even, factoring in repairs. Personally, I'm okay renting the rest of my life. When the area gets filled with gangs and crime, on to the next location. I would feel stuck if I owned a home. I might want to get a 10 yr visa and get a $200/month condo in the Philippines at some point in my life.
Normally it might be true that renting is better than buying a home but at the moment renters are at the mercy of the landlords who are at the merci of inflation. Rents are out of control at the moment. Homes are extremely expensive. It seems like the only one who can breathe are the people who have a paid house or the one with a very low interest on their 30 years mortgage.
Pretty much self-evident. Also, with career, unemployment risk is serious and worth keeping in mind. Crows are generalists, Kirtland warblers are specialists.
Excellent practical advice. There are many reasons I choose to rent, but the primary one is that it lets me live in a much livelier area than I could if I owned. I saw so many of my friends retire to the suburbs in order to own, where price dictated their living situation rather than their interests (I would say their "passions," but haha I know how averse to that term Nicole is). They end up passing their lives in a suburban tract. And then, yes, the house they own gives them the resource to move into a senior living center when they get old, since they can sell it for a lot of money. But what is the point of living?
I’m barely surviving and things will get worse for everyone. It’s the plan. I rent a dump. It’s too small and I can’t get out since losing my job my credit has taken a dump so I’m trapped in hell. I hate this town.
3:12 my house in Saskatchewan is maybe worth $300,000 and I pay more than $100 a month for insurance. Just a normal house. No fireplace or anything. Does have a big detached garage.
I don’t mind renting, but knowing the landlord has autonomy over my life and can ask me to leave anytime haunts me. The constant feeling of impermanence and the stress of moving get to me.
Owning a house gives peace of mind. Reaching retirement without the burden of a rent on my shoulders or the risk of being evicted is my FIRE. As long as I own the roof over my head, everything else can be managed.
I'd feel the same way if I could pull this off. Well done.
If you can pay it off quick But renting has to be at the right price. Many people take a lifetime paying off a house but the amount they have spent on repairs renting would have been a better option.
@@turokforever007 renting at the right price is a mirage in my country now. Immigration has made renting a nightmare.
Hit 250k today. Appreciate you for all the knowledge and nuggets you had thrown my way over the last months. Started with 24k in August 2024..,.
I would really love to know how much work you did put in to get to this stage
I will be forever grateful to you, you changed my whole life and I will continue to preach on your behalf for the whole world to hear that you saved me from huge financial debt with just a small Investment, thank you Jihan Wu you're such a life saver
As a beginner in this, it’s essential for you to have a mentor to keep you accountable.
Jihan Wu is also my trade analyst, he has guided me to identify key market trends, pinpointed strategic entry points, and provided risk assessments, ensuring my trades decisions align with market dynamics for optimal returns.
I'm favoured, $90K every week! I can now give back to the locals in my community and also support God's work and the church. God bless America,, all thanks to Mr Jihan Wu😊🎉
Waking up every tenth of each month to £210 thousand it’s a blessing to I and my family… Big gratitude to this same Jihan Wu🙌
I've rented most of my adult life. I don't think of rent as a housing cost, I think of it as a freedom cost. Freedom to move easily, from painting, plumbing, mowing, a-hole neighbors, all of it. If my rent gets too high, I move.
I'm a CPA with 40 years working in New York, New Jersey Connecricut area. Right now, my clients can buy that house for cash, but they won't do it. They prefer to rent it and let the landlord replace the roof. They have better places to invest thier 1.4M, rather than speculate in residential Reale estate. It can make sense to buy when prices are lower. GOOD VIDEO
Dont be ridiculous, Nicole. Of course, we want a part 3. wtf?
Right? Do you even need to ask? 😆
Still waiting for part 11 of "5 Scams that Have Become so Normalized, We Don't Even Notice Them"
@@Herhighness211 Yup. Part 3!
I rented for 24 years and not being under a landlord's thumb is priceless. They can pull the rug out from under you, drastically raise the rent, evict you, limit your freedom with stupid rules. My house, my land, my rules. They can all go to hell.
@@danieldoucet9121 tmdwu
You still can get rug pulled in other ways. Property taxes, HOA, city codes, eminent domain and I'm sure there is more.
Taxes are low where I am, no HOAs, eminent domain is unlikely either but I would make money because prices are way higher now and I hate the house anyway. Duplex with ahole neighbours and obnoxious dogs. Didn't have much choice at the time with low inventory and eviction after funding some old c¥^!'s retirement for 9 years.
Can I ask where in the world you're living?
@@jmsjms296 East Coast, Maritimes.
Moved into my house 1 year ago I like the space and silence but I have become the daily maintenance man it's never ending
My two cents: Rents go up. 20 years from now, that rent could be double what your mortgage payments are, and you’re not building wealth. When I bought my home for $180k many years ago, rent was a lot cheaper at about $600 a month. Rent surpassed my mortgage and utility/other costs within about 12 years. And now that my mortgage is paid off, I’m way ahead of where I would be throwing money into rent
I feel this way too, as someone who bought a house before prices went up drastically. But if I was in the market for a home right now I don't think I'd even buy one. So many things about home ownership are really boring to me and my husband, like lawn care or outdoor entertaining. We have absolutely no problem with outdated cabinetry, and would rather spend our money on travel and savings/investing. I could picture us renting forever instead of buying, if the decision were made today.
You have to run the numbers. Rent goes up but so does property taxes, utilities, insurance premiums and maintenance costs. Opportunity cost is also a factor.
@@AccordingtoNicoleExactly right.
In my area, rent is now 3x the amount of my mortgage. I purchased 20 years ago.
people move every seven years on average. buying a home can be good long term but bad short term. if we assume that you stay in your home as long as you do. then buying normally does beat renting. the more frequently you buy a home, the more you pay in closing costs. in the beginning, renting beats buying because of closing costs. rent does increase faster than mortgage payments, so after some time there is a break even. then again, by buying a house, you miss out on putting that down payment and closing towards the stock market, which appreciates faster than housing does. a counter point to that is that when you buy a home, you do so with leverage if debt is in the picture. with 20% down, you can control $400k with $80k. $400k grows faster than $80k and all the appreciation on the house is yours. at the same time the effect of leveraging is offset by the interest you pay. the more leverage, the more debt. the more debt the more interest. so you have to run simulations to determine which wins. especially if investing in the stock market or something else is something that matters to you. another thing to consider is whether rent actually does increase as quickly as everyone says it does. if you moved often while renting then it most likely is the case that rent increases fast, but if you stay in the same place and prove to be valuable to your landlord that you are good at making your rent payments, hes not going to want to lose you and may even keep it down if you ask him to. otherwise he'd have to find another tenant because you found a cheaper place to rent
The thing about owning a home, which I unfortunately had to learn the hard way, is that not only is it a HUGE financial investment, but also a HUGE TIME INVESTMENT. There's no automated condo maintenance, no property management help line and nothing you can do except handle things yourself. YOU have to call someone if your sink doesn't work, YOU have to find someone to fix your faulty garage door, YOU have to find someone to fix your roof.
Or, one can do simple repairs own their own. It is not hard to repair a sink or a garage door. Repairing a roof might require outside help.
Still worth it
Your money or your life.
If you arent rich or self sufficient, home ownership isnt for you... Maintaining your property is a crucial and necessary skill to have!
@@zachroberts1988 You're right, property maintenance is crucial for maintaining a good home, but those first few years as a mid 20-year old and a naive house owner, I definitely learned things the hard way.
We bought a $166k house in 2004. It is the biggest financial regret I have. Unless you are really good at fixing things yourself, just the maintenance is SO MUCH MONEY. At least where i live (NY state), property & school taxes are painful. Even if we owned our house outright, we’d pay $800/month JUST in taxes. It also ties you down to a location, which is one of the reasons employers WANT you to be a homeowner. (Yes, you can sell, but it is a much bigger deal than just walking away from renting a place.)
Thanks to your videos I have reduced my expenses and plan to pay off my mortgage in 2 years. Prague, the Czech Republic. Why we don’t learn these things in school🤷🏻♀️
Because financially-unfettered people are more difficult to control.
Bought our adult kid a house in a very affluent suburban town in proximity to the “Silicon Valley” region in the San Francisco Bay Area a few years ago!! The house is now valued at $1,600,000.00 (Zillow October 2024). We purchased the house for $300,000.00!!! Living the dream.
I am a Boomer. And, You are refreshing. I learned some of the things you speak of in the sixties and seventies. “Do I need it, Or do I want it.” Words I’ve passed on to my children, grandchildren and great grandchildren.
👍👍☝️😎✌️ keep it up!
An excellent mantra to keep repeating in a consumerist society.
Bleed spending is something I need to get under control. It does add up fast and to a lot during the month.
Take out cash and you have better control 🙌
@@Walking_w_Jesus
Thanks. That’s a good idea. I’ll give it a try ❤
"Bleed spending" is a good term.
I was so sure when you spoke about the write offs you would insert the seinfeld clip when kramer explains write offs to Jerry!! 😂
Absolutely excellent. This is the content my kids’ generation needs so very much. (They are 21-28)
NGL, you look good for someone with a 28yo kid.
I’m a high school teacher. They want us to push kids to choose a career that they ‘love.’ No such unicorn exists. And I tell them that along with the advice you gave here. No one wants a job they hate but there’s a reason jobs come with a paycheck - you wouldn’t do it for free. I think the reason we see so much job dissatisfaction among our young adults these days is that schools are making them believe we can all do something we love. That isn’t even reasonable. Thank you for pointing out the financial reasons we need to choose better careers as well.
If I had a kid in school, I would strongly advise them to go to a trade school and learn to be an electrician or a plumber. There is never a shortage of those jobs, and they pay well. They take many years to master but even as an apprentice, they do pretty darn good and their skills are desired. They can work for a big or small company or go it alone when they become a master. I see too many kids go to college and come home to their parents and take on a job that didn't require any further education.
I think it comes down to deciding if you are a live to work vs work to live person. Live to work people will find that job they love while work to live will find the job they can tolerate that finances their interests outside of work and has a schedule they can live with
I learned from experience that your passions and interests should be side hustles at best. They can still help pay the bills and give a leg up on building wealth, but not having them be your main paycheck takes a lot of pressure off. Plus, you can do them if you feel like it or not, making your work less contrived and less prone to burnout. I always think of the hair metal bands of the 80s in how they were the epitone of "doing what you love" but yhey were more of canary in the coal mine. They would start out with one or two great albums and are just some guys having fun. But after they hit it big and get record deals their music most of the time got more bland and mass produced sounding over time. Not to mention all the tension and drug abuse involved with always being on the road pressured to perform.
I taught my kids, that you can find a job you love. OR you can use your job to make money to DO the things you love. I think the goal should be to teach kids how to appreciate things about a good job, so they don't hate it. Maybe it's got flexible hours? Maybe it's close to home and you don't have to commute? Maybe it's got some good benefits? Maybe your co-workers are nice? Maybe they offer training? Maybe they match your 401k contributions? Maybe you can make connections to start a business on your own? Maybe you're learning skills you can take elsewhere? There are things to like about every job--even if it's only paydays.
The problem is that builders are not building basic affordable homes anymore. They only build high end McMansions and state and local regulation and zoning laws make it hard to build regular affordable homes. If I was going to pay 1.4 million for a home, it would have to have a lot more than what you described.
I have enjoyed Mint Mobile for three years now. I can't believe the number of people I can't convince to switch. The Cellular Marketers really have a hold on the mindset of folks. Meh, if they want to spend in two months what I pay for an entire year, so be it. Thanks for the vids Nicole.
Regarding rent prices, many people ignore the cost of transportation. I rent centrally, which means I don’t need a car as everything is available within walking or bus distance.
Regarding career choices - I wish someone had done a cost analysis with me when I was choosing majors. I realized later that many vocational schools offered very low tuition for jobs that paid more than what I was paid for my first job out of university, but there was such a stigma associated with them as “smart kids” went to university. How wrong I was about that!
I think that's a great point to consider. I live in a small enough city that pretty much everything is a 15 min drive or less. But I do have coworkers who live more than 1 hr from work and I often think they must be spending quite a lot on that commute. I would hate it.
Oh gosh. The $1.4M house I used as an example would be well over $3M in the downtown core of Toronto and would probably rent for about $9000. We’re screwed.
For the universities, "it depends". Some degrees are still well worth doing even with the incredibly high fees you get in north America (Law, Medicine, Dentistry, certain engineering courses). It's more the Liberal Arts courses that, whilst interesting, saddle you with debt and don't aid your earning potential
💯!!! 🎉
@@peterwstaceyBut that’s the point - investing in a university degree that will pay many dividends later is different than studying “anything” and expecting a high paying job just because you have a degree. Also, many professional programs require many years of study incurring thousands of dollars in debt, like medicine. What I meant is, I could have had a decently-paying job with only 1 year of vocational training rather than 3 years of university. I also wish the adults at the time had focused more on how much life costs and choosing a well-paying job based on that rather than finding something you are passionate about. Passions don’t pay bills. They also stop being passions when you need to do it to survive.
Thanks Nicole! You are right that with buying a house we pay the opportunity cost of not investing. However! As someone who hasn’t had a permanent home for nearly ten years and moved a lot due to landlords either asking us to leave or us moving for jobs, I can easily say that the opportunity cost I pay is worth it. I now work from home so I know I don’t have to move. Bought a home half a year ago and honestly we feel so happy and content. My plan is to pay off the mortgage early to be debt-free and start investing once I’ve done that, we will have plenty of time then still. We also plan to semi retire early because our cost of living will be very low due to paid off house.
But for someone who doesn’t mind moving around, I totally agree that renting and investing is a wonderful strategy and I’d choose it myself if I hadn’t been so sick of moving around.
I'm on a fixed income & I find myself eating out & donating to local charities. My goal this month is to only eat out 2 times. Wish me luck because I'm going to need it!
If money is tight, eating out should be a rare treat.
@@paddymurphy-oconnor8255 True
As always, great content. Seoul, Korea in the house.
Thank you! The coffee 'explanation' is brilliant!
This video is on point. In short, don't do what society says is in your best interest. Evaluate what's right for you and your situation and proceed accordingly
Very well done young lady. Great vid.
Awesome explanation about how business expense tax write-offs work.
We got lucky because we bought our house under its estimated value (109
100,000) and saved $25k. This was 1998. And we got a good interest rate and we paid it off early. BUT the trade off is that we are in the country so before we retired we had a 20 mile and a 30 mile commute. And I would always try to get groceries on my way home from work. 10 miles to the nearest larger grocery store. If I didn't buy it, we would just do without it. And in a way that was good too because we didn't shop for "entertainment" because at the end of the day, you just want to get home.
@@KACn5582 I had this experience too and now that I’m retired the better/ specialized medical care is 1-1/2 to 3 hours away depending on traffic. Something that was not a problem even ten years ago when it was a 45 minute drive. Traffic and parking is so bad locally that you hide until the weather keeps everyone else at home.
A part 3 would be great.
I knew these but then again I’m 64 and I’d better know these.
However, I’m glad you’re putting this out there for others to hear because I hear a lot of nonsense coming out of people’s keyboards.
HGTV made everyone think they could flip a house or become a landlord and make bank. The reality is not so simple.
As you said, a home purchase is an emotional one not necessarily a wise financial one.
I own my home outright but maintaining it as I age means needing a cushion for anything that pops up. I can no longer do the heavy jobs or precarious ones like cleaning gutters … no do I have the desire to do things that once excited me, like painting and scraping. Every time I discover I need to fix something it’s money and time I could’ve spent on more attractive experiences, for instance a concert or trip… it just might be better to have a larger investment portfolio and bank account.
I'm 67 and I agree completely with you. I own my home also but that does include all the required maintenance expenses. Most I still do myself. Some I can't. Like putting on a new roof and replacing the heating and air conditioning system system, which I did 2 years ago. Still need to have a few very old windows replaced, which I may attempt to do myself, maybe not, and paint the house in the near future. I'm doing all this now as I do plan on retiring in the not too distant future and hopefully everything I'm doing now will last until I'm no longer here and I know I won't be able to afford to make the necessary home improvements after I retire. So, I continue to work to be able to afford all these things so I won't have to worry about them later after I retire.
I think you made the right move in buying your home. If now at an older age you feel the maintenance is either to hard to do or expensive to afford. You could now decide to sell it and use the capital to rent somewhere.
I was fortunate that I stumbled into a career that was well paying, that I had an aptitude for, and as the icing on the cake turned out to be something I enjoyed doing. And I agree that the two questions you should ask when considering any career are "what can I expect for income?" and "is this something I can do as a career". You don't have to love it, but if it's something you dislike I think you should search for better options.
A home is not an investment. It offers a family and community stability and pride of ownership. A landlord is free to evict at any time with a month or two of notice.
A home can indeed be an investment. Very stabile and usually appreciating.
not in commifornia its very hard to even evict squatters 😂
I think a landlord would sell the property before he'd keep letting you rent it at a price that doesn't cover his own expenses in taxes, maintenance and insurance... in that respect it's definitely a saving on costs. They'll tell you that you could have put the money in a stock market investment, but that's not really a fair comparison, you can't insure the investment, but you do have an insurance on the house, and the odds that the house keeps up against inflation are better than if you would have left the money in a savings account or in long term accounts, so if it's not an investment, definitely a sane way to reduce your expenses in the long run.
@@frankd2301Your carrying costs are also appreciating. True investments don’t require that kind of ongoing outlay of cash.
Jerry Seinfeld: "You don't even know what a write-off is!"
Kosmo Kramer: "No, no I don't. But they do. And they're the ones writing it off."
I'm in finance and have been frugal my whole life. I grew up in poverty and will not go back. On the house thing, it's not always a good idea but in my case, rental vacancy is less than 1% so it's far cheaper to own than to rent. Rent is twice what a mortgage would be for the same place. As a disabled person, I work now but I'll have to retire early and I'm so grateful I have a paid off house. The stress of ever increasing rent on a fixed income isn't appealing. You are absolutely correct about bleed spending. It adds up so while your coffee may be something you can fit in your budget, the mindset that well it's only a few bucks can really sink ya. Especially if you put it on a credit card and don't fully pay it off. Then it's not just five bucks. Of course I'm here for a third version of this. I've been saying these things for years but no one listens.
Thanks Nicole. The carrying costs of homeownership is high and continually increasing. Also, true investments generate cash flow as in the case of a rental property but not your primary home.
Yes! Please do part 3!
Please a part 3 I’m a new subscriber from Italy and I’m already hooked😊
A tip for travelers: the last time i bought a Macbook i bought it in Vancouver instead of Québec and I paid 4.5% less in provincial sales tax. On $2200 it's worth it.
What do you suggest for those people that have a passion for teaching and for those that are Social Workers? The world needs these people!
Get rich and teach for free
9:14 "Just remember that real life starts the minute you clock out."
Yep, and I've had nothing but good reviews from employers. My one place of 8 years (left in 2021) had all of my coworkers loving my work ethic, but they all knew the place was draining me from the nonsense.
What field?
@@Rockerlady was on that line cook life. Loved the thrilled of busy work, but it's a lot of nonsense. Worked a lot, saved a decent amount (wish I invested sooner)
I am amazed that the tax write off thing needed to be explained but there you go. Thus a part three is really needed. Home ownership is not just about the house, but also the land. It may not amount to much in the city but in a lot of places the house comes with the space to do many things. An apartment, maybe potted plants.
Small purchases add up fast.
I’m self employed so the write offs segment was informative and helpful.
If I may add another kicker to the self-employed aspect (in Canada, anyway). If you WFH or WFA (A for apartment 😉), your best strategy is to carve out a dedicated space where you consistently do your work. THEN, you can "write off" that portion of the space and related usages as well. For simplicity, you have 500 sq/ft condo and say use 50 sq/ft as your work space (10%). Now you can technically write off 10% of the annual costs of heat/cooling, electricity, rent/mortgage, maintenance and even insurance. I've freelanced since 2008 and as each situation is unique, I'd always advise consulting a local tax advisor/accountant to discern the best strategies for your unique situation. For me that advice is the best $170 CAD/yr I spend (which BTW, you can write off the following year too! 😜) Not to be too cheeky about it, but the film "The Accountant" starring Ben Affleck has a great scene that hilariously demonstrates some aspects of the strategies that can be employed: ua-cam.com/video/CLrWCc-75j4/v-deo.html
Like I said, always consult a professional. You don't have time to read the tax codes and want to worry about the CRA in Canada or IRS in the U.S., they do. 😁
Do part 3 🎉
This and “Modern Scams” are my favourite series’ of yours.
I wasted the two best decades of my life I'm 41 and now I'm just getting my life on track and I invest in gold and silver I love your videos
Do you buy when it's low and sell when it's high?
@colleenmarin8907 yes both are at an alltime high and doing very well
@@colleenmarin8907look at the graphs available on line…in the currency of your choice. Also look at big time frame (years) not just daily, weekly changes…
S and P index is better
Go Nicole, give them what they need and not what they want!
Tax write-offs for business expenses always seem to confuse people - You explained it so simply and directly Hopefully this leads to less confusion on that topic!
100% spot on girl 👍 On every item you spoke about.
A house is a lifestyle choice. I paid 100% cash for any principle residence house I lived in.
I like having a garage to work on my vehicle and motorcycles is why I eventually got a house with a garage (new house that I had built).
I saved more dollars when renting which was part of my goals and chosen path to being able to stop working sooner than 98% of people.
Know where every dollar that comes in and goes out is going is a huge benefit.
Write-offs never make it free.
I like the last bit about taxes. Most people do not understand how that works.
You’re brilliant and also a comedian who could do successful standup. Your videos resonate with my values and life practices so closely and it is highly satisfying to be reminded that others get it. For so long i always felt like the outsider in how I go about my life and I think the more conservative cookie cutter world has been forced to catch up. Thanks for your inspiration .
love this Nicole keep going!
Well done, Nicole.
If you purchase a home and live in it for many years, you will come out ahead. You can’t look at it at just a point in time. You are taking into consideration that rent will be going up each year so you won’t be saving $3000 a month in the future. The difference between the house payment and rent will get lower and lower and it will flip at some point so the house payment will be less than rent.
Not to mention that the value of the house will generally go up over time.
I bought my house 29 years ago for £47k. It's worth £250k now. It meant I could retire at 52
Do you plan on selling for a profit and moving somewhere less expensive?
@@colleenmarin8907 no, I try to live self sufficiently. I have a big garden and solar panels on the roof. I get by on £500 a month. I'm in seventh heaven 😁
@@seanoconnor8843 I hear ya...I am in the USA and I bought my home outright, I can live very nicely on $500 a month...but my business recently took a downturn and I don't always make that. (I also have a small cat sanctuary, so THAT gets money BEFORE me!) BUT the peace of mind is amazing!
@@seanoconnor8843You live below the poverty line. How is that a good thing?
@@colleenmarin8907 Not having to pay monthly anymore I think was the point.
I love see your breakdown, of the numbers. Thank you again, Nicole. Jerry from Anaheim, California USA.❤
Keep the fowl taste of financial reality coming😊😊😊
Great advice for life. Especially the job advice. My career was never my passion, but an interest.
Bleed spending- ELITE!
Nicole I have two good examples of money management gone bad. I heard about this married 38 year old that bought a 1.2 million dollar home in Toronto. His parents gave him the down payment and now with higher interest rates he is $ 2,000 short every month working 2 jobs now. Another couple was on Dr. Phil as he talked about inflation to the worried audience that is on a financial razor's edge. The couple spends $ 30.00 .$ 40.00 a night to heat the home with a diesel heater. She is working 3 jobs and with him they make 100 K and have a 5 year old boy. I told them we have not heated our home at night for 40 years. Get thick blankets like the Walton's did in the depression of the 1930's . Open a window as we do at night to off gas the home for better immune health. THINK , BE CREATIVE !!
Hey Nicole, the more I watch your videos the more I like you. You're smart and funny and have seemingly endless good ideas. I know that more comments is better for your channel, so I'm going to make three comments to address each of your ideas here separately. Also I'm a little long-winded, so there's that. I've commented before on other videos of yours, and here again I'm just giving my opinions and experiences as a retired engineer turned investor. Not your target audience necessarily, but I do find your insights very interesting.
I've seen before where someone laid out the math of renting vs. buying and it's good math. One caveat is that a person has to have serious mental discipline to take advantage of it. If you rent, and put the remaining income to work for you, you're going to come out way ahead in the long run. But you have to be disciplined to do without that money in the short term. Having some automatically taken out of each check before you 'see' it can help.
I rented for many years and spent basically all the rest of my income month-to-month. I've never been innately smart or disciplined about money. I bought the house I live in now 14 years ago, choosing one I could afford, and I've built equity and have very much enjoyed the autonomy. Now that I'm retired, and facing a nonzero risk of living a lot longer, I need more money for future me and I'm investing pretty aggressively in real estate. I cashed out as much as I could and put it into real estate dealings that have moderate risk and high potential returns. So in the end my house turned out to be a decent investment for someone without much fiscal discipline. The house payment forced me to build equity in this house, and now it's providing seed money for better investments.
I don't know if this will be helpful to anyone, except maybe someone who has equity that could be working for them. Yes, the house will probably keep appreciating, so it's an investment in that sense, but that doesn't do you any good until you sell it. It still appreciates whether it's paid off or not. Real estate is my choice to increase my net worth, there are other options that might work for someone else in their long term financial big picture. Something to think about. I've come to disagree with the conventional 'wisdom' that says paying off your house and leaving it at that should be a life goal. Some people call that 'dead equity.'
Say it with me, NOTHING IS FREE!! have been a Mint Mobile customer for 4 years now. Can't beat the price!
Great thoughts. I was lucky enough to buy a house a long time ago. And I was honestly house poor at the time. But now rent is three times my mortgage and I'm so happy that I suffered through. I also bought the smallest most basic house i could find. I agree that's no longer realistic for middle class people.
I bought my house 18 years ago with the plan to upgrade after 5 years to a nicer home. In that time the housing market crashed, I had a job loss, rented out the house for a total of 5 years, went back to school, started a new career and had three out of state moves. I've lived here a total of 13 years and refinanced in 2021. Rents and home prices skyrocketed in my area and many of my coworkers pay $600-700 more a month for a one bedroom apartment than I pay for a 3 bed 2 bath house. I feel fortunate that I have a house now with a lot of equity while I see so many paying a ridiculous amount for an average apartment. The downside is I'm stuck here with a low interest rate and a housing market where I can't afford to upgrade.
Most people, especially woman want houses bigger than their needs, or means. Big nests cost more. Not having a huge mortgage means you can pay it off quicker. Being debt free is real freedom!
There are certain people who don't seem to be able to distinguish needs from wants. I've never understood it.
true, actually the type of housing that keeps its value best are two bedroom appartments and three bedroom houses with a modest garden. It's the type of house that everybody is on the look out for, the big villa becomes less popular when there's a crisis going on.
You could add "deserve" and "that's what you do because everybody else also does, right?" to the things to distinguish 😅
Once again, Nicole a great YT presentation, love you Nicole, as in I love apple pie. Yes, version 3 a must. Not many girls around like you, and not many guys that are willing to listen to you… maybe wrong on the last one. Your YT casts are of great value, thanks Nicole.
We rented a stupidly large 3600 sq ft. home for 5 years starting back in 2011, and we paid a LOT less than the mortgage payment would have been. Because it was still just a 3 bedroom, we only paid a few hundred over market rents for a smaller 3 bedroom home. Had we tried to purchase, it would have cost us at least twice what our rent was. We had no shame admitting we were renters, but friends kept assuming we bought that thing and wondered where our money came from because there was no way the rent could be affordable! We couldn't afford a house half that size when we finally moved out into our purchased home.
Great bit on the reality of tax write offs. Do a part 3.
You just earned my subscription.
I'm a realtor and I definitely didn't clutch my pearls. I advise my clients on this regularly. Oh, and 20% down is far from standard. VA & FHA loans are often 0%, most others depnd on your lender. 5-15% is standard.
Always great thoughts from Nicole and I'm sending the channel to people that can benefit from it. 1.4M house: I wouldn't touch it if all I could put down was 20% I'd say minimum would be 50% loan to value. Like you I was in a great 3 bed but moved up to det 4 bed but put down 60%, for me mortgage has to be a lot lower than rent for same property otherwise no point. I'm with you down the line, love the 'bleed spending' concept, if we can name it then step 1 in controlling it!
Across North America, home pricing is dislocated (it's not aligned with "reality"). Home pricing has responded to various economic disturbances such as a building disruption from CV days, low low interest rates, Private Equity dumping colossal amounts of capital into rental homes, and that's a colossal wave of liquidity that has swept across the financial landscape raising housing prices. That's what our host simplifies as "speculation".
Add to that the numerous home owners who have "counted their chickens" prematurely and cashed out equity and whose property taxes and insurance have risen dramatically - they desperately need to see their high property value as real - they can't sell since the new mortgage will be at impossibly high rates.
Then there is their tax authority (which has an impossibly high budget) and has raised property assessments by 30 to 50% so that the tax revenue can meet their bloated budget.
Finally, the banking system has these mortgages on the books (from new buyers and old owners who've refinanced) who can't realize lowering property values - they become insolvent. Not to mention the fact that commercial properties on their books (office buildings) are crashing like never before.
Nobody want's to see falling property prices. Nobody but wishful house hunters (probably the most valid group of home buyers).
Finally there are the enormous swaths of rental homes (as our host has noted, whose rental income come nowhere close to a cash-flow situation) - they show a negative cashflow and cap-rate. Those "investors" include individuals, Air BnB people, and the big gorillas: Hedge Funds and Private Equity. They are going to sell, eventually, once the pain reaches a point. They are white-knuckling their properties hoping the lowering of rates will buoy their property values but that's not likely.
There is a housing property crash roiling across North America and it's underway in Southern US states and gaining speed.
Property taxes, as you stated, are necessary to support the city's "bloated" budget. They may put a cap of a 2% increase on property taxes, but, they reassess your property value to DOUBLE what it was in previous years which effectively DOUBLES your yearly property tax amount. Their explanation: "Your neighborhood has been under-valued and needed to be updated". Oh you can appeal the assessment, which I did, vigorously!! The assessor came to my home, took pictures, we talked, they left. The final outcome? They gave me a 10% discount on my property taxes, for ONE YEAR!!! Bunch of BS. Plain and simple.
@@bigd3104 Bunch of BS. Plain and simple
I started to invest when I was about 16 years old, but my parent were not rich so it went really slow. When I became about 26 I invested all I could spare, always in single stocks. Now many years later I can see that I have missed at lot of opportunities with my strategy, but anyway I have a good portfolio today mostly uranium, silver, gold, copper, steel miners, oil and gas and coal, pharma and technology. I cannot live of my dividends yet but they add a significant sum to my yearly income from my work. One thing which makes a big difference is how much you spend on cars. I have an old beater, which I maintain very well and this saves me a lot of money which I can invest instead.
Sure I knew a lot of it but I like to keep an open mind and hear other perspectives. So ya make a part 3. Also, while you're working, I believe you should also be an investor.
I have everything payed off. I love it no huge car payment,insurance. No mortgage just property taxes. Which need abolished by the way. I am able to repair my own vehicles and home maintenance im HVAC certified. It works for me. Lifes a lot simpler. Im thinking about jetting the power company. That would be the ultimate. 😂 I can wire some solar together. Im thinking about a system that can run an AC. When sun comes up AC comes on or heat pump. Put in a woodstove. Ill be fine. Everytime the banks crash the economy i learn i just do not need a lot of things. 😂
On write-offs, you are so right. I believe with your example, it's what the college kids are calling "boy math" and "girl math" now. Pretty much the thinking of "Oh, I could save a few bucks on income taxes by spending more for my business?" followed by "why am i losing money?"
I saw a great finance short the other day of this couple that bought a 60k F150 truck (naturally) so they can "write it off and reduce their taxes that keep going up." Sigh. This is why most small businesses fail in the first year lol
The "not buying coffee/avacado will make you rich" meme ....its ridiculous.
However, i agree that there is some truth to it. The difference is trying to budget for saving AND actually living a life that make you content. 100%
We want a part 15 ❤
You mentioned "rattling cages" twice, but didn't cutaway to a clip of Homer rattling the trash commissioner's bird cage. That surprised me. ;)
Dear Nicole, really good analysis, however as a home owner I believe you could consider some ammendments when you compare rent with ownership cost. Whereas the rent is going 100% to other parties, a mortgage is divided between interest and amortisation, where the amortised part is not going away. Instead, it is being added to your personal wealth. So from my view the correct comparison ist the interest plus maintainance plus tax with the rent, and of course one should see not to massively overpay a house because the risk of wealth loss in case a sale is needed increases. Usually making a good m² comparison does the trick.
been thinking about your career choosing video this whole week 🤔
and yes, pls pt 3, whenever, thank you
The mistake that people make with tax breaks is that they think the government will send you a cheque with the tax savings amount, they take it from source.
My nice apartment rent in Las Vegas is $1375. Average condos/ townhomes here are upwards of 300k. I simply could not afford a mortgage
Same here in the Kansas City metro. I enjoy condo life because of my friends here and access to many great amenities such as the pool, gym, clubhouse, etc. My single homeowner friend berates me for ‘throwing away money on rent.’ Meanwhile her property taxes are more than my annual rent. Utilities, home repairs and maintenance and so on make my financial situation better than hers, at least in my eyes.
@@teachertraceeagreed, the copium all across this comments session is really bizarre - study after study shows that people per income bracket tend to spend the same amount on renting or owning housing over the course of a lifetime, home owners massively underestimate ongoing housing costs which renters are immune to. Obviously renting has its own set of problems but owning is not easy either
Inflation needs to be considered on the rental costs
Very informative, thank you !!!
Thank you for talking about "write offs". It's easily one of the most misunderstood tax terms. We shouldn't even be calling it a write off. Just stick with calling it a "deduction".
Let’s not forget about the exploding costs of insuring the house that you own in some parts of the country. Indeed, I am told that in parts of the Mountain West (USA), it is extremely difficult to get ANY policy due to fire risk.
It all depends on the local market. Plus of buying is that your payments do go down due to monetary debasement and its a forced saving vehicle.
I'm renting a house while paying down debt to purchase my own. I've been informed the owner is going to be putting the house on the market and has given us 3 months to try to find something else. I have an 81-year-old parent, and 12 & 14 girls residing with me. The rental market is horrible. Overpriced. We were STRESSED OUT. Thankfully, we applied for 2 affordable apartments and should hear something this week. I would never rent from a private owner and while I know rent prices can increase, historically, where we have applied, they have not increased by much. I still plan to purchase a reasonable home. I don't ever want to go thru this again.
UK here. Earlier this year I got forced out of the place I was renting while I was unemployed abd broke. Had to leave most of my stuff behind - humiliating and infuriating. Never want to be in this position again. Am prob too old, wrongly qualified and (mildly) autistic ever to be able to afford to buy. Well done me.
I keep explainig this to everyone but nobody seems to get it. Having a high number of unsubscribed viewers is actually great. It means you're getting new people and your channel is growing. If it's always the same few people watching, chances are 100% are subscribed. That's not good because the channel isn't growing...
I was also wondering. But one time I heard something else than "subscribe":
I think it was a small niche channel that made a video about a popular topic and his message was (as far as I remember) "If you're only on my channel for this video, a like and a comment are more useful than subscribing and never watching one of my other videos".
Glad that I don't like coffee. Or alcohol. Or smoking.
I have seen property values drop depending on the neighborhood. My grandparents had homes they rented out, nice brick homes in Jackson, MS. They paid around the equivalent of $160k in today's prices. The neighborhood is nothing but gangs now. Houses were sold for $65k. Even with rent that was collected, they didn't even break even, factoring in repairs.
Personally, I'm okay renting the rest of my life. When the area gets filled with gangs and crime, on to the next location. I would feel stuck if I owned a home. I might want to get a 10 yr visa and get a $200/month condo in the Philippines at some point in my life.
I'm a bad bleed spender....makes alot of sense 🤔
Normally it might be true that renting is better than buying a home but at the moment renters are at the mercy of the landlords who are at the merci of inflation. Rents are out of control at the moment. Homes are extremely expensive. It seems like the only one who can breathe are the people who have a paid house or the one with a very low interest on their 30 years mortgage.
Pretty much self-evident. Also, with career, unemployment risk is serious and worth keeping in mind. Crows are generalists, Kirtland warblers are specialists.
Excellent practical advice. There are many reasons I choose to rent, but the primary one is that it lets me live in a much livelier area than I could if I owned. I saw so many of my friends retire to the suburbs in order to own, where price dictated their living situation rather than their interests (I would say their "passions," but haha I know how averse to that term Nicole is). They end up passing their lives in a suburban tract. And then, yes, the house they own gives them the resource to move into a senior living center when they get old, since they can sell it for a lot of money. But what is the point of living?
Normalize rattling cages
🙌🏼
Normalize not saying "Normalize" all the time.
@@Deselector138 I'm in for the long haul
300,000 in cash to start to own a home?!! Thats ridiculous!!
I’m barely surviving and things will get worse for everyone. It’s the plan. I rent a dump. It’s too small and I can’t get out since losing my job my credit has taken a dump so I’m trapped in hell. I hate this town.
3:12 my house in Saskatchewan is maybe worth $300,000 and I pay more than $100 a month for insurance. Just a normal house. No fireplace or anything. Does have a big detached garage.