johnny, I personally never own a house or any real estate. almost pulled the trigger 20 years ago but did the numbers. for me was not a good investment, but a good force saving when I sell. I wanted to be retired after working 25 years & 55. house has constant maintenance / insurance / interest. person must do their own DIY / maintenance on plumbing /etc otherwise it won't paid in 30 years on investment return.
@@masonloh1411 hey mason The purpose of the video was to debunk the popular notion that your home is a good investment. It’s not. As you figured out. But you still need a place to live. So either buy a small place to live, or rent a cheap place, and invest the difference. You seemed to have done the latter. :)
depending on location, my friend bought a house in Sunset Brooklyn in 2005 for $400k, it's now worth $1.8M. but I agree, if the location is not special, and it doesn't appreciate, it is a liability.
@@HelloWorld-hb7yt Yes, and it’s also quite a bit of luck. We bought in Northern Bk as well after the crash. Had no idea it would take off the way it did . But the average person home is far from that lucky
@@HelloWorld-hb7yt I had a coworker who sold his 2-3 family on the other side of the BQE around that time. He came in with a check for $385k or something and was showing us. And then around 2012 when we started to look at multi families there they were around $1.2 M or around lol. I was thinking I hope he didn’t look back at the prices in his old hood. Had he stayed a few years he would’ve tripled his money. Oh well. Hindsight
I like this take on houses, Anyone thinking houses are great investments are being very naive. Housing is so much of someone's budget and they dont take in account of renovations, labor ,leaking roof etc.
It IS an investment... A home is a forced savings, it forces people (who otherwise would not save). e.g. Hiring a personal chef or trainer is "bad" investment in your health vs. most people who do it themselves. You'll pay more to have a personal chef or trainer than if you do it yourself--but you're doing something that you normally would not do (be health conscious). At the end of 20 years, the person who hires the person has more of his/her health, much more so than the person who took care of it themselves (and ate like crap and never exercised).
@@BK-gh9us it’s forced savings for those who would otherwise blow their money on crap. I actually do agree with that. But it’s savings. Not a great investment ;)
I could not agree more, if I can add my two cents I would say that a house is fixed to an specific location. It cannot move with you and when it is time to sell you'll be paying 6% commission, a portion of closing costs and if you are retired can affect what you pay for Medicare. It's call IRMA.
Im most likely the "investor" you're referring to in the beginning of the video. Glad you made the distinction between owner occupied and rental property. However, there's something I still think you're missing here. I'll give you a prime example. During the crisis in 2020 the market absolutely tanked. I was in my 30s and wanted to know how some of my older coworker's were being affected by the market crash. I asked several of them if they were worried about their retirement and the older coworker's were completely devastated and in panic mode with no clue if they would be able to retire as planned. One mentioned she may have to move into her son's HOUSE as her rent increased too much that year. That's the moment i knew not to make that same mistake. Rents and home prices were shooting up while their retirement savings tanked. Bad combination. I also got some answers from the other end of the spectrum. The older folks who owned property were grinning ear to ear as they were looking at a healthy retirement and contemplating what to do with all their equity. One coworker mentioned retiring earlier by selling his long beach property and buying out of state. So, the answer was clear to me. The division between the haves and the have-nots always has been, and always will be exactly where the American dream begins: home ownership.
@@jayflaggs Yes home ownership is great! I’m just saying don’t put too much money into it. Don’t “invest” in your home. Invest in assets such as rental properties or stocks. Or a combination. Also, I know plenty of landlords shittting bricks during Covid when nobody could pay the rent or didn’t want to. 3 years of 1/2 rent is the equivalent of stocks tanking by 1/2.
Have you ever thought about how our modern civilisation operates? Humans stumbled on an abundance of cheap energy which fuelled the industrial revolution. We have everything we have now because of fossil fuels. And guess what? Fossil fuels are finite.
![Is A House An Asset Or A Liability? [Finally Explained]](/img/n.gif)
Great video, please keep them up, you have a great perspective! peace from Poland.
@@biglance thanks!
johnny, I personally never own a house or any real estate. almost pulled the trigger 20 years ago but did the numbers. for me was not a good investment, but a good force saving when I sell. I wanted to be retired after working 25 years & 55. house has constant maintenance / insurance / interest. person must do their own DIY / maintenance on plumbing /etc otherwise it won't paid in 30 years on investment return.
@@masonloh1411 hey mason
The purpose of the video was to debunk the popular notion that your home is a good investment. It’s not. As you figured out. But you still need a place to live. So either buy a small place to live, or rent a cheap place, and invest the difference. You seemed to have done the latter. :)
depending on location, my friend bought a house in Sunset Brooklyn in 2005 for $400k, it's now worth $1.8M. but I agree, if the location is not special, and it doesn't appreciate, it is a liability.
@@HelloWorld-hb7yt
Yes, and it’s also quite a bit of luck. We bought in Northern Bk as well after the crash. Had no idea it would take off the way it did .
But the average person home is far from that lucky
@@HelloWorld-hb7yt
I had a coworker who sold his 2-3 family on the other side of the BQE around that time. He came in with a check for $385k or something and was showing us.
And then around 2012 when we started to look at multi families there they were around $1.2 M or around lol. I was thinking I hope he didn’t look back at the prices in his old hood. Had he stayed a few years he would’ve tripled his money. Oh well. Hindsight
I like this take on houses, Anyone thinking houses are great investments are being very naive. Housing is so much of someone's budget and they dont take in account of renovations, labor ,leaking roof etc.
@@coheng31
We’re all just being brainwashed by our cultures. We don’t even question it after a while.
It IS an investment... A home is a forced savings, it forces people (who otherwise would not save).
e.g. Hiring a personal chef or trainer is "bad" investment in your health vs. most people who do it themselves. You'll pay more to have a personal chef or trainer than if you do it yourself--but you're doing something that you normally would not do (be health conscious).
At the end of 20 years, the person who hires the person has more of his/her health, much more so than the person who took care of it themselves (and ate like crap and never exercised).
@@BK-gh9us it’s forced savings for those who would otherwise blow their money on crap. I actually do agree with that. But it’s savings. Not a great investment ;)
I could not agree more, if I can add my two cents I would say that a house is fixed to an specific location. It cannot move with you and when it is time to sell you'll be paying 6% commission, a portion of closing costs and if you are retired can affect what you pay for Medicare. It's call IRMA.
@@1alfonsorico agreed! Thanks for the addition;)
Im most likely the "investor" you're referring to in the beginning of the video. Glad you made the distinction between owner occupied and rental property. However, there's something I still think you're missing here. I'll give you a prime example.
During the crisis in 2020 the market absolutely tanked. I was in my 30s and wanted to know how some of my older coworker's were being affected by the market crash. I asked several of them if they were worried about their retirement and the older coworker's were completely devastated and in panic mode with no clue if they would be able to retire as planned. One mentioned she may have to move into her son's HOUSE as her rent increased too much that year. That's the moment i knew not to make that same mistake. Rents and home prices were shooting up while their retirement savings tanked. Bad combination.
I also got some answers from the other end of the spectrum. The older folks who owned property were grinning ear to ear as they were looking at a healthy retirement and contemplating what to do with all their equity. One coworker mentioned retiring earlier by selling his long beach property and buying out of state.
So, the answer was clear to me. The division between the haves and the have-nots always has been, and always will be exactly where the American dream begins: home ownership.
@@jayflaggs
Yes home ownership is great! I’m just saying don’t put too much money into it. Don’t “invest” in your home. Invest in assets such as rental properties or stocks. Or a combination.
Also, I know plenty of landlords shittting bricks during Covid when nobody could pay the rent or didn’t want to. 3 years of 1/2 rent is the equivalent of stocks tanking by 1/2.
Have you ever thought about how our modern civilisation operates? Humans stumbled on an abundance of cheap energy which fuelled the industrial revolution. We have everything we have now because of fossil fuels. And guess what? Fossil fuels are finite.
@@Spacemonkeymojo so true!