If you bought a home before 2020 and refinanced in 2020 or 2021, you already won. If you bought a home in 2022 to now, you're about to lose unless you can afford the high payment long enough until interest rates drop to refinance. Imagine paying less than $1,000 a month for a mortgage on a 3,000 square ft. Home before 2022 compared to $3,000 a month in rent after 2022 for the same home. One is smoking a cigar on his back porch. The other is just saying, "Ouch"...
This is how you should look at buying a home. What would your mortgage payment be? Versus, your rent payment. Buy a house at what a rent payment would be. Your mortgage payment should be at your rent payment or less. Then, if the rent rates go up, your mortgage stays the same. You now are living below the median of cost of living. This method for me has been a blessing. Because I am living well below the median of cost of living because of the strategy of buying my house at what I was paying for rent.
Good point. Once the mortgage is paid off , 2000 a year is easy. If you have a large amount of money in an interest earning money market account you could literally pay the property taxes off by having money in the account.
For a better quality of life in a better house? Or for for a better quality of life in cheaper house to have more extra money to spend or save or invest?
Lots of reasons. 1. if the home is older the quality of the house diminishes and becomes more costly to fix. 2. Now with interest rates being obscenely high re-financing will be a thing of the past. Only way to tap into your home's equity will be to sell or worse to take out a HELOC on the house.
Owned a home in Southern California. After three wildfires and one almost burning our house down our insurance rates skyrocketed and we moved. Neighborhoods change, job opportunities pop up elsewhere and some people like to live and experience different areas and not want to live in one place forever.
This depends heavily on the market you live in. Rent is definitely escalating as quickly or more quickly than home prices (because they were purchased for rentals at ridiculous prices by investors that have significant protection from the market corrections that are happening now).
@@alohastateofmind3565 Yeah the only real landlord system where it's like that is section 8 and that's so tightly regulated by the government and dangerous in general that I wouldn't touch that with a 10 foot pole.
Hey @markwygant - i just stumbled upon this video. Excellent point about break even. I'm currently looking for a house for my parents and I'm trying to see if renting is a better option for them. We are in the Dallas area. You said the break even point has been kicked out to 7-10 years. That means you won't see any benefits money-wise if you live in that place for less than that time. Can you please elaborate a little more on how you define the break even point? And what goes into calculating that number? Thanks a lot - your insight will actually be very helpful as I do my research!
in my experience. when you compare pound for pound the same property rent vs mortgage. Rent is usually 2-3 times more expensive with no equity built by the end. The only way rent is better is if you can find a place that is cheaper than what you'd pay for the mortgage, and can invest the difference in a manner that exceeds what the equity built in a house would be, a very unlikely scenario in my experience.
Take some classes or join a real estate investment club and get some info from their meetings before you put tenants in an apt. They’ll always give you a sob story, but you have to do your homework before you let anyone in there because it’s hard as hell to get them out. A credit check, references, employment check, 1st/maybe partial last/security, lease, check eviction processes. There’s a ton of stuff to know. and expect a lot of wear and tear. If you’re not handy, you’ll have to hire electricians, etc., people to clean and paint between tenants, that will eat up your profit. Maybe set up an LLC to protect yourself. Good luck. I’m too old for all that aggravation but I learned a lot of it the hard way.
if you can buy, buy. just make sure its not going to fall apart in a year. I was 24 when i bought a house, had 30k in student loans, no car. am now 26, no debt, paid off 2017 car, tens of thousands in the bank for my retirement. If i had rented an apartment i'd still be paying off my loans.
Wrong. If you stay in a home 7-10years you will lose your ass in interest and property taxes. The reality is buying a home is not an investment. You will always lose money on the sale of your home. It might not depreciate but theres zero dollars to be made and you will lose significantly more than renting year over year. You have to decide if that is worth it to you or not
If you bought a home before 2020 and refinanced in 2020 or 2021, you already won. If you bought a home in 2022 to now, you're about to lose unless you can afford the high payment long enough until interest rates drop to refinance.
Imagine paying less than $1,000 a month for a mortgage on a 3,000 square ft. Home before 2022 compared to $3,000 a month in rent after 2022 for the same home. One is smoking a cigar on his back porch. The other is just saying, "Ouch"...
This is how you should look at buying a home. What would your mortgage payment be? Versus, your rent payment. Buy a house at what a rent payment would be. Your mortgage payment should be at your rent payment or less. Then, if the rent rates go up, your mortgage stays the same. You now are living below the median of cost of living. This method for me has been a blessing. Because I am living well below the median of cost of living because of the strategy of buying my house at what I was paying for rent.
Is taxes included in your mortgage? What about insurance, water, trash and heating/gas? I rent currently $1015, but dont pay for none of that.
Exactly and their are hidden costs when selling to... 😊
Let me help y’all:
$2,000.00 a month for rent
$2,000.00 a year property tax
Yes the prices very but this is the bottom line
Good point. Once the mortgage is paid off , 2000 a year is easy. If you have a large amount of money in an interest earning money market account you could literally pay the property taxes off by having money in the account.
Rental or own house I would be happy with right partner anywhere on the planet
Renting is as high, specially in California
Still way cheaper than owning with current interest rates
Also the word is especially
@@exoticwhipsbroadspipesandbags but you can never sell and make anything out of renting. If you buy you can easily make 100k a year or two in.
California isn’t all of America
@@ZiggyZou what part of especially didn’t you get?
@@exoticwhipsbroadspipesandbags thank you, esl student here.
I never understood why someone would buy a home and wanna move/sell it EVER!?
For a better quality of life in a better house? Or for for a better quality of life in cheaper house to have more extra money to spend or save or invest?
better job offer ?
Lots of reasons. 1. if the home is older the quality of the house diminishes and becomes more costly to fix. 2. Now with interest rates being obscenely high re-financing will be a thing of the past. Only way to tap into your home's equity will be to sell or worse to take out a HELOC on the house.
Owned a home in Southern California. After three wildfires and one almost burning our house down our insurance rates skyrocketed and we moved. Neighborhoods change, job opportunities pop up elsewhere and some people like to live and experience different areas and not want to live in one place forever.
This depends heavily on the market you live in. Rent is definitely escalating as quickly or more quickly than home prices (because they were purchased for rentals at ridiculous prices by investors that have significant protection from the market corrections that are happening now).
even if you dont want to stay in a place for that long, you can always rent it out and the tenants could pay up your mortgage
Ever been a landlord? It's not always just collect the rent check.
@@alohastateofmind3565 Yeah the only real landlord system where it's like that is section 8 and that's so tightly regulated by the government and dangerous in general that I wouldn't touch that with a 10 foot pole.
Hey @markwygant - i just stumbled upon this video. Excellent point about break even. I'm currently looking for a house for my parents and I'm trying to see if renting is a better option for them. We are in the Dallas area. You said the break even point has been kicked out to 7-10 years. That means you won't see any benefits money-wise if you live in that place for less than that time. Can you please elaborate a little more on how you define the break even point? And what goes into calculating that number? Thanks a lot - your insight will actually be very helpful as I do my research!
in my experience. when you compare pound for pound the same property rent vs mortgage. Rent is usually 2-3 times more expensive with no equity built by the end.
The only way rent is better is if you can find a place that is cheaper than what you'd pay for the mortgage, and can invest the difference in a manner that exceeds what the equity built in a house would be, a very unlikely scenario in my experience.
1400 for 800 Square feet in western ma
Dude can you help pls bcuz I’m just renting a house and I have a plan to buy a flat/apartment put a tenant on it to produce a cash flow it’s that ok?
Take some classes or join a real estate investment club and get some info from their meetings before you put tenants in an apt. They’ll always give you a sob story, but you have to do your homework before you let anyone in there because it’s hard as hell to get them out. A credit check, references, employment check, 1st/maybe partial last/security, lease, check eviction processes. There’s a ton of stuff to know. and expect a lot of wear and tear. If you’re not handy, you’ll have to hire electricians, etc., people to clean and paint between tenants, that will eat up your profit. Maybe set up an LLC to protect yourself. Good luck. I’m too old for all that aggravation but I learned a lot of it the hard way.
Have you ever tried getting a loan on an apartment. Also do you get your money back when you move out of the apartment?
Fucc nar
Yeah but if your renting starts and $1,800 (hypothetical) then how much does it go up each year for WI? 🤔
also it 18 to soon to buy a house?
if you can buy, buy. just make sure its not going to fall apart in a year. I was 24 when i bought a house, had 30k in student loans, no car. am now 26, no debt, paid off 2017 car, tens of thousands in the bank for my retirement. If i had rented an apartment i'd still be paying off my loans.
Buy as soon as able
@@bobowon5450 so true but times have definitely changed sense 2017, congrates on being debt free and with a paid off home must be nice
Buy a house
He’s so handsome ☺️
Please watch the road 💀
*Promosm*
?
Wrong. If you stay in a home 7-10years you will lose your ass in interest and property taxes. The reality is buying a home is not an investment. You will always lose money on the sale of your home. It might not depreciate but theres zero dollars to be made and you will lose significantly more than renting year over year. You have to decide if that is worth it to you or not