Renting vs. Buying
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- Опубліковано 4 кві 2024
- Renting vs. Buying
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Homes, cars, clothing, furniture. . . whatever it is, people have strong opinions on renting vs. buying. It’s time to weigh the pros and cons and set the record straight-is renting ever a good idea?
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Thankfully, I live in southern Illinois where the cost of living is very low. My mortgage, property taxes and insurance combined is right at the 25% mark. And i bought my house during 2022, right before the interest rates started to climb. Housing has gone up here since then but it’s still an affordable place to live. I would never would of been to do that in Tennessee or Texas!
paid cash 234k 11 years ago. going on the market for 525k.
pure profit since no mortgage interest. prop taxes and minimal upkeep excepted.
will never live in ''someone else's house''
Thank you for the tips!
Sometimes renting a car is smarter than buying. I live in an area with good public transportation and work from home so I don't need a car. But I rent a car for several days every few months to run errands, go shopping, visit friends, etc...If I owned a car (even with no car payment) I'd have to pay for insurance, title/registration, garage parking, maintenance/repair. I can rent a car and avoid all those costs, plus I get my choice of well-maintained late model vehicles and just return it with a full tank of gas.
Hi Linda🌹🌹
How are you doing?
Our starter home we bought in 2017 for $150K, now is worth $300K.
good for you, except the vast majority of Americans do not live anywhere where a 300k home exists. the average home in all of America is 450k. you're not finding a 300k near any major metropolitan areas where the vast majority of jobs exist.
Bought a house for $980,000(in Southern California) in 2013, now worth $2.6 million. Great investment! We have leased a car but bought it after the 3 years were up
Who can really afford a $2.6 million home? How much income did y'all have to make a $980k purchase in 2013? What were the interest rates back then?
*incorrectly said 2003 earlier
Congratulations! That's so awesome!
@@Moontani 2013 not 2003.
@Moontani I know so many questions but yet no answers. People just want to flex
@@mhodge0890 I answered all of her questions. The buyers are coming from LA and San Francisco that want to move to a suburban costal town. They have the cash to buy such an expensive home. I’m not trying to “flex” , we worked very hard to get where we are financially with many years of post secondary education
Bought a condo for 350k now it is worth 280k
Sorry for your loss... literally
This was a very helpful video.
Hi Brenda🌹🌹
How are you doing?
Don't you think home prices will go down in the next couple of years? Temporarily at least, especially since they have raised threefold only in the last four years. There is no way that this ratio of income to home price will stay the same. What will happen is that more people will get into the building home industry, making them more affordable.
Bought a condo for 117k now it’s worth 217k 4 years
That's more than double the gains I got on my town house in 8 years! How???
I live in 900 square feet and that's plenty big enough for me
Haven't had any debt since I paid off my student loans 40 years ago
2:46 Right now renting is actually cheaper medium/long term and costs more if you're considering buying a house for less than $350k if you've got a high middle class income. You've got to make the spreadsheet for your self to account for your expenses, income, and house desires, but you can avoid paying an extra $30k in interest over several years by paying a cheaper rent because the interest in the payment will stay above what the rent is for a very long time even though you put a ton more in every month to pay the principle down. This is not in a city like she said.
@rachelcruze thanks for video! Just fyi on screen where you talk about 25% it’s a typo says “Mortgsgr id no more than 25%” someone rolled the keyboard meant to be ‘Mortgage is’ :)
I bought a house 4 years ago for 230 now it’s worth 370k$ down from 390 (20,009) it’s ok I could still sell it for $400k next year ;-)
Leasing a car is never a good idea. With good credit, you can finance a car at 5% or less, and the interest payment decreases as you make payments. When leasing, your interest payment is going to be twice as much as with buying, and the interest payment remains the same no matter how much your payments are. I once did the math on a $42,000 car with a $27,000 residual. After computing both options, I determined the lease option would cost me $2000 more assuming I were to make minimum payments.
Bought a condo for $165k 15 years ago. Now it's worth $120k
💀
Condos are just more expensive apartments
Wow
I don't like seeing/bumping into random people, so apartment living is ideal for me. Neighborhood nonsense is not for me.
Smart guy...non stop drama.
I thought I was buying a house but my wife's yoga instructor made it a rental...
"and mortgage 25% of takehome" is very tone deaf.
$1M homes + 7% interest + stagnating wages does not make 25% of takehome a possibility for the vast majority. She should ask Canadians what their % of takehome goes to housing.
1:23
Nothing against buying a house, but present the facts correctly and not through society's filtered lens. It is confusing enough for the average person since big numbers, and most people think cost $200k and sold for $300k - so $100k profit. Not so fast.
No, you don't own anything beyond your equity, and even that the lending institution can take it along with all the previous payments leaving the mortgage holder with nothing if they default anytime during the 15 or 30 year mortgage term - so it is not building 'real' wealth. You are renting the money from the bank (instead of paying rent, they call it mortgage whose interest can double the cost basis or price). Also 'homeowners' rent utilities from the municipality and the wealth being built is about 1% a year after inflation, property taxes, maintenance, repairs, higher insurance costs and other sunken costs (except the last few years, which is the exception, not the norm). Then there are huge commissions and stressful potentially long timelines to open and close the position (buy, refinance and sell the house). That is even before calculating in the opportunity costs, which is not on a bank statement but they are there.
Home ownership is not for everyone. Sometimes renting is a smarter decision. I've lived in the same apartment for 6 years and my landlord has never raised the rent. He handles all the maintenance, repairs, upgrades, taxes, insurance, etc...and I pay my rent in full, on time every month. It's a win-win for both of us.
@@lindadorman2869thats great 😯 everyone in the complex must love that landlord. Do you give anything else in return?
@@lindadorman2869 no, you pay for the maintenance, insurance, and taxes. It just isn't billed to you. Your landlord also profits. Let's say they owe the bank 500 a month for the unit but charges you 1200 a month, they are not only collecting all those fees, they are profiting. If it's not a profit they wouldn't be landlords.
Hey Rachel , really nice video ! I was wondering if I could help you with Best Quality Editing in your videos better than your Editor and also make a highly engaging Thumbnail which will help your videos to reach to a wider audience ? Pls let me know what do you think ?
She’s generational wealth. So it’s hard to listen to someone that has not went there before. I get trying to keep her Dads LLC going but…
I see beautiful Rachel, I click.
You can tell she's reading lol
😆😆😆 all the butthurt renters
Rachel keeps rich-flexing in her videos without realizing she's doing it and being super out of touch with the rest of us who can't afford homes like hers that are big enough to have rooms that stay empty for months. 1500 sq ft here and super cramped with all my wife's stuff right now.
And she never timestamps her videos🤬
Must be nice to have 1,500 sq ft
You need to brush the salt off you
If you're cramped with 1500 square feet, you have way too much stuff.
Thank you
Mortgsgr id no more than 25% of your take-home pay? :)