Do NOT Wait To Buy A House
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- Опубліковано 28 вер 2024
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Should you Buy Now or Wait until for a Housing Market Collapse? With the housing market picking up again, sellers staying put and interest rates bouncing all over the place, many first time home buyers are wondering when is the right time to buy a house? In this video, we discuss what you need to consider in the current housing market along with housing affordability to help you in deciding if you should buy a house in 2024.
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I think it's time to make it more appealing for potential buyers. Real estate can be quite the rollercoaster! the stress and uncertainty are getting to me. I think I'll cut rents to attract potential buyers and exit the market, but i'm at crossroads if to allocate the entire $680k liquidity value to my stock portfolio?
"Overall, buyers hold a lot of the cards right now, and sellers are having to give out more concessions to close a deal." All the best, buying on sale is actually one of the best ways to invest in stocks, and advisors are ideally suited for such task
this sounds considerable! think you know any advisors i can get on the phone with? i'm in dire need of proper portfolio allocation
Thank you for the lead. I searched her up, and I have sent her an email. I hope she gets back to me soon.
Buy now at super inflated prices with high interest rates. On top of that, high taxes/insurance rates. Yes buy now.
While you're at it. Take out a line of credit to renovate the house to increase the price of the house. Surely.
Haha. Isnt that the truth!! Better buy now before you can never buy a house ever ever again!!!! 😂😂😂😂
Do you actually think that is going away though? Because yes, don't buy if the market will improve for buyers. That being said, I don't think it's going to but no one knows the future.
@@angelmoncada382 say we're in a place where OP is from in CA. I can't even make the 10% down payment on a regular house with a healthy 6 figure income. I'd have to get 3 or 4 jobs like the one I have now. While turning the place into another Airbnb. You can't squeeze blood from a stone.
@@angelmoncada382 what goes up must come down. Wait till the job losses continue.
Lol why did he leave out the interest paid? The house might be worth 500k but you paid 700k in principle/interest for the house cause of rates.
People are overpaying and depleting lifesavings while experiencing skyrocketing tax and insurance premiums.
That’s the problem.
Along with actual economic conditions and current housing stats (mortgage delinquencies, price cuts, inventory) is why some people are waiting.
This is exactly why I am waiting.
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FOMO! Scarcity persuasion tactics! FEAR! Imagine yourself living on the streets! That's what will happen to you! Don't think, act on emotions!
No questions taken! Just do IT!
FOMO is such a farce, buying a home is a long process where you have to prove income, disclose assets, and have your spending habits scrutinized, this isn’t walking on a car lot and getting carried away by emotion into driving off in an expensive new car a couple hours later.
What a lot of people classify as FOMO is the reality that you need shelter, and whether you rent a room or a buy a mansion the purpose and need is inescapable unless you want to live at home. The expense is there, and with inventory being limited people buy now not just to meet their needs for shelter but now as an investment vehicle and so then people get into the mindset of trying to time the market to maximize return, well housing isn’t a stock or a REIT it’s shelter, and something personal beyond just a rate of return. People need to pay for shelter, and you want as much space as possible with the most features and then want the home to reflect their lifestyle and personal tastes. There is no such thing as an ocean view share of Apple stock, or a Spanish hacienda style municipal bond, when you’re putting the amount of money it takes to buy you’re placing your personal tastes and desire for certain amenities or location as part of the decision making process.
The fake shortage!!!!
My fam rented for almost my entire life because we moved a lot and honestly couldn’t afford to buy. My gf and I debated renting vs owning for a while. I liked renting because everything is paid for like if something were to break or a new roof, it’s not on us. I was as worried we couldn’t afford a home price plus things that need work or broke. After all the housing crazed and stuff, we decided to buy because we have 2 big dogs and it was to a point where renting is now just as much as mortgages. We found a place that is on our higher end price but still affordable that is in a great neighborhood. We got pretty lucky. And the high mortgage rates didn’t stop competition here. People are still nuts lol
Also this was just an excuse to put in a 4 minute promo add into a 13 minute video, now there’s some high interest!
If we hadn't needed to move every couple years I would have much rather have put all that rent money toward a house.. rented for 13 years.
Anyone who buys a house right now needs their head checked……
This guy must be a realtor.
or had to just put out some clickbate to get paid by aura.
Just Do IT!
@@jkmarshall3553hard pass!
He is a realtor.
Your obviously a non homeowner and don’t understand that real estate always goes up. Jeb actually gives out honest and sound information.
According to my calculations, I’d be spending close to or more than $1M on a 400k house over 30 years with the current condition. This includes taxes, interest, maintenance, insurance …etc. if I rented, I’d be spending about 600k over the same period with rent appreciation taken into account.
And if I had put the difference in the stock market, I’d end up with over $1M. So unless the $400k house sells over $2.4M after the 30 years, it’s not worth it. (The taxes are quite high in my area and only houses that need maintenance are available).
I'll never go back to renting lol. Idc what the interest rate is. It's bad, but it'll never be that bad. We're selling soon and buying a small farm! The interest rate isn't going to stop me from my dreams!
Your AURA ad is literally a third of the video. What the heck am I paying Premium for?
Absolutely right. I know someone who is renting there home for $1200 more then the mortgage.
They deserve a squatter.
No wait one or two more months.
what's going to happen in one or 2 months?
How can we afford this market thou it’s too expensive.
Awesome analysis! Thanks!
Appreciate the support.
U making a lot of sense
high rates + high prices = bad time to buy
my rent raised last year 10% ($100), this year 20% ($200) within two years my rent increase to $300, is this legal in PA. they said because new landlord. Please inform me. Thank you. (My lease for the last seven years was month to month contract this year they want me to sign one year lease with $200 increase or they will evacuate me.
Buy now cauae this is goung ti keep goung up also next mont the buyer need to pay closing coast 12 thousend dlls and down payment
Engaging topic!
"why not pay 3.2k for a mortgage that you can't afford? Instead of a 1.5k rent that you can't afford."
Bruh.
Seems like you might be the "glass is have empty" type.
@@JebSmithyou can't squeeze blood from a stone my guy. CA is a different market, but it also has so much homelessness that it looks like a 3rd world country in Africa.
Dude, don't think so much... Just BUY!
@@jkmarshall3553 so true. I can just marry the house and date the rate. Then refi after the rate drops right? 😂
I have 1.5k mortgage that I can afford.
This is a bit nonsensical. Low price and high interest vs high price low payment???? Not apples to apples. It should have been be high price low interest.
DO NOT BUY!!!
Who can afford a home? All the people I know can't afford it.
34% of the market is first time home buyers......on top of that there will be 4M plus sales in 2024
HURRY UP AND BUY NOW BEFORE PRICES DROP 😂😂😂
Wishfull thinking
But he never said hurry and buy, did he? He said if it’s the right time in your life, stability, etc.
So many people try to make up reasons to justify why they don’t own a home, when the reality is many people don’t have the stability, savings or simply aren’t disciplined. And that’s fine, but the video is factual.
I know someone who is currently paying over priced rent because he thought home prices would crash in 2020.
Thank you so much for this video, we have been trying to make sure we are making the right decision! We actually just locked in pricing on land and a new build, they are offering an incentive to buy the rate down , so it actually is making more affordable than buying an existing home that would be a fixer upper in the same price range. Our lender is also giving us the option to refinance for free if rates go down further
Congrats...... be skeptical of any lender telling you that you can refinance for free, That’s typically a sales tactic. That usually means they are giving you a higher interest rate to subsidize the fees that it would normally cost.
So they are confident it is not going lower..
It Is OVER!
First minute in and I am trying to figure out the web he will spin. $1700 difference is huge. That side of the house says to invest the difference, and they are correct. Discipline matters for that strategy. Also, be willing to move… also, there is no reason to rent for $3200, they they are going to rent and invest, then they are renting something closer to $2000 and keeping a smaller footprint.
Lots of crash Bros in this comment thread.
Hard to cope when you let your negative attitude set you back 20 years in life.
Oh how computers have hacked our lives.
lol if this is the case, you don't want to live there (here) anymore. bye felecia
Buying a home is not for everyone if you can afford it then go ahead but if it will drain your savings and require you not to miss a day of work and risking coming up short then dont buy. Dont let people fool you into thinking your mortgage wont go up, both rent and mortgage payment go up because of property taxes and insurance. And forget that real estate agent telling you to date the rate and marry the house, just put it in your head that you are getting married to both the rate and the house. Plus most of these 40 plus year old homes selling for over 200k will loose alot of value if you dont keep it well maintained, homes can last hundreds of years but if you dont stay on top of important infrastructure updates and maintenance then you could be dealing with a condemned home that isn't suitable or safe to live in and you have lost all your money.
😂 you can see the ignorance in the comments. People are waiting for a "crash". You think a 2008 or covid is a good thing. That messed up the market alot. People lost their homes and jobs like crazy. You should be hoping that never happens as you could lose everything too. Crazy how people's minds work. Prices aint gonna drop alot and maybe the interest will go down a little but also not by that much. Best thing to do is to buy if you can or when you are ready to!
You buy now you would be house poor
California has lost there minds
Seriously? Almost 3 minutes of advertising .. This is the main reason Why I’m going to dislike this video ✌🏻
Must be a RE agent or broker lol
What is this guy smoking? You have to have some serious head trauma to purchase a house right now.
I've been hearing that for the last 10+ years and each year more and more have regrets thinking that something has to improve.
Foolish
Easy to say when buying a house now will basically take over 50% of my income 😂 im not gonna be house poor rather keep saving and live with my parents.
You are making the right decision and you are so very lucky to have this option,.
Exactly what I’m doing . Be smart
graduated last year in civil engineering, and I cannot buy a home either. Im staying with my parents saving until I can find a good deal.
Yes, but maybe your parents don't what you living with them.
@@Hcb-jo1gp they do, I pay rent and power, we are all helping each other. We are saving to buy a duplex
Caleb wrote a random comment he thought nobody cared about just to wake up to a 13 minute diss track
That’s why it’s always better to trust a seasoned professional, such as Jake rather than rely on random comments. I hope that he takes the video in a helpful spirit that it is intended.
There were certainly at least an implication by the commenter of “I got mine but now you can’t get yours”, but perhaps that was not intended.
I’ve been renting a room from a friend for $850/month for 2.5 years now. However, it’s time for me to move on now. I found a new construction 4 bed/2.5 bath home for 279K. I qualified for a USDA-RD Loan at 6.75%. I’m currently under contract and looking to close real soon. I wish I would’ve bought sooner, but I wasn’t financially ready like I am now. I’ve saved so much, my monthly mortgage payment and utilities will not be coming out of my biweekly paycheck whatsoever. I plan to refinance if interest rates ever go back down.
Congrats!!!!! Sounds like it's now the right time in your life. 💪🏼
Congratulations 🎉
He is not suggesting you rent for 10 years - He is suggestion you rent now for 2 or three years and then buy when Interests rates go down
Seller list with 2022 property tax hiding the 2023 property tax which is at least 1000k more than 2022 tax!!! Be careful buying. The property tax will be the assessed by the amount of purchase price 🤦♀️🤦♀️🤦♀️🤦♀️🤦♀️🤦♀️🤦♀️🤦♀️🤦♀️🤦♀️🤦♀️
Interesting pity for me is that buying a home in Utah is nearly impossible atm. Average house is priced between 500k-600k atm. In order to get a house with stable income must be over 125k. Which most average to about 24-30k a year. I know there are jobs that pay more but they are on higher end not the average/most jobs pay in Utah. I’m lucky to get payed little over 20/hr and could afford a home if priced below 250k. With a credit score of over 830. For me best to rent and put way 500-1k per month slowly further increase my downpayment.
I get it.....that's tough. Just stick to your plan and don't get caught up in the hype. Things will work out the way they're supposed to.
Great video Jeb, yes there are costs involved in buying and maintaining a home, there’s also costs involved in constantly moving to save on rent. One narrative a lot of UA-cam crash cheerleaders like to throw out to make the case against buying a home are surveys of new homeowners asking if they regret their purchase, as with any major purchase there is always a measure of regret because any time you make a large purchase you naturally wonder if you could have gotten a better deal.
It’s curious how these surveys only ask homeowners who bought in the last year or two, I wonder what the numbers would be if they polled homeowners who bought 5 or 10 years out if they regret buying a home. My parents (who when they bought their house in East LA in the early 1980’s worked in a factory) struggled mightily to make the payment for many years, but my mom’s pay over time rose and my dad transitioned to a higher paying job in a hospital, and even after a couple of refis and pulling cash out had a monthly mortgage/insurance/tax payment of less than $600 up until they paid off the property a couple years ago. $600 in LA! When I rented my first apartment in LA in the early 1990’s my rent was more than my parents mortgage, I doubt you can even rent a room in most parts of California for $600 a month, but the crash cheerleaders and trolls will conveniently focus on the up front expenses and move in costs and never take into account the cost savings in the middle or back end of the mortgage term.
So you are convinced the whole American economy is going to grow at the rate California did from the 80s to make the your equation repeat? AI is promising but Taiwan needs to be uprooted and located inside US for that pipedream to become reality.
Right. Crash bros don’t talk about the regret from waiting for a crash.
@@IniyanSElango The example is specific to my family and in our city. The point is to buy with a long term plan and not a short term or buy and flip plan. My guess is rents will be significantly higher than they are now, at what rate. I don’t know but like Jen’s video stated there are no fixed rents.
California rent increased because of the increase in wages supported by its economy. With impending demographic cliff, super weak income potential for genz, millions of new rental units being built etc, rental deflation is inevitable.
@@IniyanSElango my man, now you’re just cheerleading, the impending demographic cliff is a fallacy. Population not just in California but around the country has grown. Just since 2022 US population has grown by over 3 million people and it’s still growing (mostly spurred by immigration, not a high birth rate), and while new rental units are being added to the market, that inventory was planned, permitted and financed when interest rates were 2 and 3%, since the run up in rates that construction has died down so the number of new units coming into the market will slow down so the moderation of rents while welcome isn’t going to sustained long term.
I understand you want a rent crash (don’t get me wrong, I don’t want rents to get any higher either it’s tough on young people and newlyweds out there right now), it will probably level out rent in most places but the other issue you haven’t addressed is the lack of new rental inventory on the low end of the market, almost all new new rentals in my area of Northern California are mid-level to high end units with rents starting at about $2000 for studios and 1 bedrooms, anyone making less than $50K can’t afford those new units and pay the kind of taxes we pay here and save money or invest, so they have to live at home, have roommates , or move to an outlying area which saves rent but costs in commute expenses. It’s very hard and the inventory to help those on the lower end of the income scale just doesn’t exist on either the rental or purchase side of the market here in California
buying now is dumb af, clealy a bubble is about to pop. LMAO. Do some research people.
Agree Jeb, signed on a new build this weekend! hopefully, rates will be better in December if not, I only on what I can afford until they do. Got a great deal on it too, homes like this one go for 200k more just away from me.
You will need a long-term horizon because if Caleb does some research, he'll discover that whenever the ratio of income to home prices gets pulled to its maximum, the correction always involves price decline. Isn't that crazy? It's never accomplished by incomes rising? For those who pull the trigger at the wrong time in the last bubble they spent 8 to 10 years with the value of their home being less than their mortgage balance. I know we're probably headed for something similar. All these predictions of buyers jumping back into the market when interest rates drop actually assume that all the potential buyers who are just sitting on the sidelines from 2020 despite the layoffs despite the car repossessions despite the credit card defaults, despite the student loan defaults are still in a position to qualify for a high mortgage. We know that's not true so we know the buyer pool is a lot smaller than it was back then. What happens when you get inventory, but you have a lot fewer buyers who can actually qualify for a mortgage?
Might be record high debt issues but there are still lots and lots of high earning people looking to buy. A correct sure. A crash not happening.
If u can’t get a house soon I going to buy a trailer this is to much
The one thing I respect about people talking about a housing crash is that they show data.
This guy is not showing real data. he just showing what could hypothetically happen. Fully assuming no stock market crash or higher unemployment, businesses going bankrupt. Factors that matters to a housing market.
He literally used historical data and then actually low balled it. Nothing was hypothetical it was actually all factual. Meanwhile crash bros have been talking about a crash for 4 years now. That's the hypothetical
God mercy over this
no yet to buy..re ession coming
BS
We bought three months ago in our great state of Florida.
We have equity already can you believe it ? I encourage you to buy now he is right new home have crazy discount and plus full appliances packages.
In 3 to 5 years just watch the equity and then pull it out buy more house rent it out rinse and repeat we three grandchildren so we want to make sure they real estate and lot of it.
I doubt you have equity in just 3 months. You're probably looking at Zillow or some gameshow online indicator.
Buuuuuuuuuuuuy nooooooooooow! please 🥺
Nobody knows. It's all conjecture.
The math has been proven over history.
I bought a 2 bed, 2 bath townhome in Las Vegas last fall after searching for a rental that I could afford. I'm paying less with a mortgage ($1,550) but I'm sure there will be those that will say that I made a mistake by buying. Only time will tell if I made a good decision.
If you can afford it, buy it, in long term, you are winning, timing is super important, i bought 4 properties during 2009 to 2013, but those chance you may see it once in 100 years, i think buy now if you can afford it, that works, i come to usa 30 years ago with 0 English and $20 in my packet, and i own 6 properties now, i can do it, everybody can do it.
So as per your data, home prices appreciation jumped by 13 years ( 40 %) in a matter of 2 years while wages crapped out. Remember Japan 1991, RIP folks without a home.
What happened in Japan 1991?
Japanese can buy a place in the country for less than 10K. What the hell are you talking about?
People lease cars because they can write it off
sure, some do but most want the lower payment. You can write a much larger amount by purchasing the car especially when it's over 6K pounds and then you can depreciate, etc.......
This guy never stops selling, he is a greasy salesman..
This guy lacks common sense
I’ve been working since early 2006 and faced a significant setback when I lost my job. Despite this, I managed to grow my investment portfolio to about 700k Unfortunately, recent market fluctuations have caused my portfolio to lose nearly 48% of its value, which has left me feeling panicked about the future. With my retirement approaching, I am looking to mitigate risks and create a steady growth path for my portfolio. Additionally, I am planning to buy a new home, Given these circumstances, I would appreciate any advice.
Diversify your lnvestments to spread the-risk and stabilize your portfolio.
This may not be the ideal place for personalized portfolio advice. However, I suggest make an Appointment with financial advisory. to create a good profit plan tailored to your specific needs. Joan Alora Dulieu is a licensed advisor Now am on 90%% profit.
I have had about her too, she also have a website i will look up for Joan Alora for her SIGNALS .. i am facing almost similar case Thanks for this.
The went is set at $3200 not a penny more. Mortgage $4900 is the base plus anything that goes wrong! $1700 difference saved in the in stocks in 10 years will do well also.
I just bought my first home in california, and currently in escrow. Thank you God :D
If you can, BUY NOW.
It will always be the better option.
We did this year.
5% of $3200 is $160 not $400
Do you pay the mortgage ??
I can’t find a nice 3 bedroom house under $600,000!! Prices are crazy . Yes I’m in NY but this is insane!!!
The northeast is bananas right now..........low inventory and high demand.
Who is paying him?
Not a lie.
Am in California
Looking for a home but I file banckruptcy that is going to end my 2 years in January 2025 what can you recommend to do next
I would recommend about 60 days from the end of the bankruptcy in January starting the preapproval process to see what your options are and if there’s anything else you need to work on
@@JebSmithok thanks great video helps a lot
People are desperate to buy a home that’s why there’s so many people commenting praying for a drop in house prices. Most of them don’t realize all this demand is going to raise prices in a housing shortage in most of the areas everyone wants to live.
True there are a lot of people wanting the housing market to drop but on the other side of the fence we have Airbnb struggling for business, blackrock wanting out on rental properties, people who are going to sell their houses because during the pandemic they relocated since we could work at home, also lumber prices are going down. So this housing shortage should becoming to an end in 1 to 2 years from now.
@@Silverman96 good points but lumber is still really expensive and cost of labor is increasing dramatically. There is some struggle for sure but not in all cases. Home prices will still raise regardless as history has shown. IMO the earlier you can get into the market the better off you are. 👍🏼
@@McNelisG true housing will rise in 10 years or more but if you had to choose would you buy a house in 2007 or 2010.
@@Silverman96 true but timing the market isn’t realistic. 99% of people will not be able to time the market. Best to get in earlier like I mentioned and take the long term gains and in many cases short term gains too.
@@McNelisG most people are just looking for average prices. Most of the people that say it’s a good time to rent has ratios like the buy to rent ratio or income to buy ratio. These ratios make it possible to see what is overpriced and right now those ratios are saying we are overpriced in housing.
Buy now = financial suicide..
Buying will always be better than renting. Why? Because no one can kick you out or raise your rent.
True but would it be better to buy a house now or 2 years from now.
@@Silverman96it’s all depends on your financial situation, the area and type of house. It’s hard to answer that question everyone is different. I would say look at all these factors and then make your decisions. The housing market can be affordable depending where you want to buy and what is the cause.
@@sergetinc1344 what if I see higher unemployment and a stock market crash somewhere in October.
@@Silverman96well the stock market will not crash….yes it will go down but not to a point it will crash. Unemployment is in an all time low. Nothing will change in OCT. Look at 2020 to now…..go by the trends not what if. I’m not saying things won’t change, what I saying is from what I see and researched it won’t be like 2008.
@@sergetinc1344 so what about the yield curve, what about the businesses that are reporting low demand for there products. How do you know stocks aren’t going to crash this year? By the way it’s going to be a different way the housing crash will happen but it’s going to happen.
Buying at inflated prices and add to that high property taxes and insurance. And then do the 30 year amortization and you are paying $1.3 million for the $500k home, that the previous owner paid $200k for.
What the previous owner paid literally means nothing. Yesterday's price isn't today's price
Is he an agent? Home insurance and property taxes also rise. 10% rent increase every year is complete BS. My rent for the last 3 years during covid has not risen at all! This appreciation of RE is a one in a lifetime event and only applicable if you sell otherwise wait and watch the paper appreciation go back down to 30 year average levels. Comparing low housing prices and high interest with high home cost and low interest is completely idiotic. Fool expects you to believe that the market that has low home prices and high interest also has low interest for high home prices. False argument!