The Bureaucratic Cat - (sigh) i bet you’re an anticapitalist socialist. “Everyone that is rich must have swindled a ton of people.” With that attitude, you are nothing and you will always be nothing.
Walked away from 5k when I was under contract with new construction on the Jersey shore. The contractor didn’t disclose the house was in a 100 year flood plain and a relative that was an engineer noticed it on the blueprints. Was so thankful I walked away because unfortunately hurricane Sandy wiped out all the houses in the area years later.
I rented the entire time I was getting out of debt. There was a lot of peace of mind about it because I saw it as security while I attacked the debt. If something broke, I wasn't on the hook for it.
@@cristianm6706 ehh it depends if you're married and both people make well over six figures you can get away with it and not have to worry about all the money that has to go into it. I don't think renting is perfect but if your single and make less then six figures it's a better option
man Splain depends. If you get a foreclosure at a 40% discount and a 2% loan, over the long term . NY isn’t going to empty. It’s a sheethole, but won’t empty
I love Dave's comment "desperation precedes stupidity" I agree completely because I did that myself more times than I care to count. He is absolutely right as always.
He probably doesn't live in the city just going by the cost of the condo. When talking to people outside of the tri state area, its easier to say NYC because people lump it all together.
Public transportation makes a simple 15 minute trip into an hour plus. Taxi also isn't the answer cause they're too costly for someone that makes under $300k in New York.
@@commonsense9076 People putting other cars on the road turns a 15-minute trip into an hour plus. That same 15-minute trip is probably faster by bike in any part of the city I've seen, and I live here.
@@gamelord12 This guy doesn't live in NYC, he clearly lives too far to bike or walk. With an economical car your trip would be more pleasant and cheaper than the other options.
Yep, $100k for some place to live where you just have to worry about covering the HOA dues and the taxes is not that stupid. I'm not sure what New York is like, but around here the rates of rent increases have been insane, you pretty much have to be rich in order to afford it.
So he’s $100k in SL debt with “a lot more school left” as he states, meaning that pile of manure is probably gonna get bigger, which he conveniently didn’t mention. Ya you shouldn’t be taking out a mortgage right now bro.
Dave told him not to go to closing and just lose out on the earnest money. But a while ago another person called Dave and told him that he was under contract with a house and suddenly felt like he didn’t wanna buy the house anymore. And Dave told him that it was morally wrong for a man to break a contract and he didn’t recommend he do that. 🙄
The real stupid part I heard was buying a $25k car. Sell the car, keep the condo. The reality is, you can always sell the condo if it turns out to have been a really bad decision. Two truths about New York: You don't need a car and real estate will always find a buyer. However, expect to be living with no furniture or anything nice or new for a few years.
@Julius Chinn Chicken Oh goodness no I left and I'm never going back. That said, for a favorable rate and at below market value, probably. The pandemic will get worse again before it gets better but the long-term outlook is improving. I don't anticipate any major crash that wouldn't see a rapid recovery.
Thats what I notice with most of the calls. I personally wanted to call and ask but I honestly don't know what I would ask that he would tell me different. I read his books and am currently tackling student debt. Had 32k and now I have 15k left to pay so im on a somewhat good path. Now its more just keep doing what I'm doing.
This why I always open up a Dave video when I have the the urge to get a new car that I don't need. The point about desperation hits home and having an open mind can help us not feel like we've been backed into a corner with no other way out.
Renting is not wasting money... You take on zero risk, you don't have to keep up with any repairs or maintenance and have the freedom to move when you want.
@@saulgoodman2018 he said he takes home around 3k a month. 70k salary is before taxes. 1300 is a little over one third of his take home pay of 3000/month. Again not great but pretty standard for today
This dude can not close on the house, get an apartment, sell the car and get a $5,000 car like Dave said. Now he's got $50K to throw at the $100K debt, knocking in down by half. He makes $72K and can pick up a side job making another $10k at least and hes done in a year!
To add to this, the other thing which is more expensive when owning a home is generally the utilities. Generally the home is larger than an apartment, so it costs more to heat and cool. Since it's larger, you generally are going to require more furnishings than a smaller apartment or condo. You might have a yard which requires maintenance and watering/cutting. So now you need to buy a lawn mower. General upkeep even when things aren't breaking is more expensive.
In NYC that's not an issue. If your credit is not bad, your mortgage could be way less than an apartment at half the size of the house. Garden upkeep is cheap if you do it yourself. Spend the afternoon working in the yard and you don't have to hit the gym. But he's talking about a condo. That probably means no garden. Except garden tools, which have a long life, I don't remember spending money on garden upkeep.
A lot of these people have never talked about these problems and its the first time they are putting it into words. So some are dumb others just ignorant
Lego DC probably, which is disrespectful. I sold my home and lived with my parents while my new home was being built and I paid my parents utilities, groceries, cut the grass, and fix things around their house.
If you want to be mathematically technical... it is when you factor in value. Yes, you are responsible for maintenance costs. But you own so it means the property actually has value. Now you should budget for more than the mortgage due to repairs, that much is true
I’m confused....I’ve been binge watching Dave for a while now, and I recently watched one about a guy in a very similar situation, in terms of wanting to back out of a contract to buy a house. In that situation Dave questioned the ethics of backing out. He was quite firm about it being almost a dishonest thing to do. And yet he’s here telling this guy to back out.
Heard a similar call as you describe, but with a woman caller. I thought it was interesting/cool that he framed it as "well, you made a promise..." and seemed to therefore not even consider her walking away from the deal because of that.
A lot of people in similar financial situations know deep down that mistakes were made and they need to hear it straight, the way Dave gives it. I'm happy for this guy because he's finally getting educated. Its okay if you're ignorant about something, but what matters most is what you do after that ignorance is confronted.
Any apartment in NYC, even studios cost more than 1300. Starting price is around 1500. The deal was good. The car was a bad idea since the city has good public transportation. Everywhere you turn your head, there's a bus stop or subway.
1st off if you live in the NYC metro area (which I do, grew up the Bronx live in the burbs now). Rent is so ridiculous is this area I am not sure what all his expenses will be mortgage and maintenance I am going to guess $1600-$1700 based on his $1300 mortgage then utilities cable and electric another $300. To rent a one bedroom subpar apartment is $1700 plus utilities, a studio is $1500. I say keep the condo and get a roommate it it is a one bedroom convert the living room to a bedroom. He can rent that room for $1000-$1200 a month.
He should close! I lived in NY my entire life you aren't renting anything for less than 2k a month or tour getting 3 roomates. The $1300 @ month mortgage is nothing
Right?! And its yours. All the "rent" money would be having a purpose and a home. He can pay minimum on house, pay down student loans, then come back to the house afterwards and pay it off in under a decade. I hope he closed.
As an in home solar sales rep, I’ve gotten to sit with hundreds of homeowners and I’m thoroughly convinced it is not a walk in the park. They are not automatically rich because they own. In fact majority of them are looking for the cheapest option available because money is so tight. And this is in the Bay Area. House poor is real.
💯 Agree. FYI it’s not rent vs mortg. Condos have monthly maint/HOA fee (can incr yearly). Highly advisable to have lawyer experienced in condo contracts if buying prebuilt from speculator. Both house and condo have maint/ins costs and taxes. Agent/legal (maybe land transfer) fees s/b factored for buying/selling and location for future value/equity.
I strongly disagree that they won’t sue - not closing on when you’ve already exchanged contracts is a legal nightmare, the seller is entitled to sue you not just for the full amount but also any out of pocket expenses. I would close on the deal and then try and sell it later
Why would you even think about buying a condo while you are a student? You are totally screwing the sellers if you back out, just so you know, and they can sue you and force you to close! 1300 a month is nothing, especially if that includes the condo fee..
You don't know what you're talking about, so don't speak on it. He can back out before closing for whatever reason he choses, he just loses the earnest money because it's beyond the atty and inspection review period. You can't force someone to buy anything off of you. It's not closed until it closes. that's why they call it a CLOSING!
@@darthsiddious7469 I'm outside the US, but it's no different here. As long as those final signatures ain't on paper & the deal ain't completely done ... you can always back out. HOWEVER ... once the 'first document' (the agreement to buy) is signed you're on the hook for at least a severence fine if you somehow still decide to back out (after all, you've already legally agreed to buy it from them and are generally just waiting for the notary and stuff to get all the other legalities sorted out). You still CAN back out, for whatever reason, but usually it's 5-10% of the full sale value of the home that you're on the hook for to do so. And euuugh @Betty Smith You ain't screwing the sellers in any way, shape or form. Or at least, not necessarily. If anything, you're doing them a favor, giving them free money. The property remains yours and you put it back on the market AND you put 5-10% in your pocket. It CAN be a problem if you're using the €€€ of that sale to fund another project of course. Then you'd have to engage in a loan to bridge the time until an actual sale or something. So it can go both ways, depending on the situation.
Watching this while i was about to go to the bank and borrow a loan for motorcycle. I changed my mind about that loan but not the motorcycle. Im just going to save up for it instead
I see this a lot with interest rates hitting lows. People who are marginal buying houses. They drive up the prices and in a couple of years when interest rates go back up and the buying mania subsides they're stuck with a property thats worth much less than they paid.
I wish these people would get their thoughts in order before they call in. Then they could spit out their story and ask their question quickly and stop wasting our time.......and not sound stupid in the meantime!
“Owning a home in a given year is more expensive than renting” so why does he have everybody (renters and owners) start with a $1000 emergency fund in step 1? I just couldn’t do that for the reasons he states: water heater, furnace, things like this are more than $1000.
If you listen carefully, on every call, you will hear a tid bit of wisdom that you can use for any situation and that is why I listen to the Dave Ramsey show.
Ironically when I moved to Tampa I was looking at buying a condo as a 23 year old in the Air force. I called my parents and they told me, no, bad idea, just rent so i did.
He chose to call after being under contract. That way he is more likely to be told to go ahead since he agreed to purchase. He knew that if he called before that, he would have been told to not do it.
He's OK, close on it and buckle down. I mean a condo is way cheaper to own then a single family house. I am a supporter of buying early, he can have a paid for house by 45 or 50. If you are mechanically inclined, because things break but most people don't have the patience to learn how the mechanics of house works. My ac has broken several times but I've learned how to repair it myself. I've put floors down, replaced the kitchen and bath, learned small electrical repairs. I think owning is a lot cheaper then renting.
Rent a room, sell the car and work, work, work. Whilst studying dont go crazy socializing, head down and get the best grades possible. If you can keep the apartment and get through studies you'll be ok. Once studies finish and you have a better paying job then work hard to pay off the student loan and then mortgage.
Anyone else find it slightly ironic that Dave complains about people not thinking about taxes/insurance when he's talking about people buying a house, but he frequently forgets to include taxes when he talks about people's salaries. When he says "you earn X" it's often the gross value and not the actual net amount that person will be bringing home.
This is the one place I disagree with Dave. Apartments aren't cheaper if the owners never fix anything.i never had a good landlord; My parents had a great landlord until his son in law took over. My parents rented for 28 years because of medical expenses that happened right before they made an offer on a house. Then bought the house they rented... they basicly paid 2 mortgages on the home. And this caused them to be unable to save for buying my uncle out of the farm.
@@cjmor6590 ever had a water heater break toilet come up in bathtub ever had broken window? My family owned condos & homes & even some mobile homes r you old enough to remember b4 condos???
Well a condo hoa you pay every month and it only covers exterior. Things “wall in” is your responsibility. The air conditioner, water heater, appliances isn’t covered by hoa. I know because I used to own one. Condos are good if you don’t like to do yard work.
I'd keep the condo if it is the same or cheaper than rent. I know everyone is not as lucky as I have been but I have lived in my 110 year old house for 13 years and have not had any major repairs/bills. It would definitely cost me more to rent than it did to buy. BTW-it will be paid off next year.
j heath don’t forget costs like inspection fees, maintenance & repairs, gas, parking fees, parking tickets, insurance. He could be saving a lot more money if he got an electric bike or use public transportation.
Jesus he's not kidding its going to take longer than 4 years for him to clear his student loans, it took me 2.5 years to clean up 27k and thats that I left myself with 200 extra per month because I couldn't handle being stuck at home doing nothing
It is there is more cost going towards something that you own but I still say that's the better way. Because it's yours it's equity building up it's just buying is better it's just better. You can get a roommate that gives you enough money that they pay rent to you as the owner and use that to pay the mortgage and or just stash the money that is paid to you away.
Dave is such a hypocrite. There's another video where he almost yells at the caller, for suggesting to just not close on the house sale. Dave screamed and ranted, stating "that other couple that put the house up for sale, will be expecting this money so they can finish moving themselves, so you're a bad person for breaking your promise.". Then he straight up tells this guy "dude, just break your promise, and YOLO!".
this is painful to listen to. This guy sounds lost. I have a feeling he's going to get off this call scratching his head asking "what should I do?" I don't even know what he's studying but if he's $100k deep with more left to go, I hope it's a super high-paying field of study. I doubt it though because he doesn't sound like he knows what's good for him.
Okay, I need to disagree with Dave here. The idea of whether it is better to pay on a house or rent is a multifaceted analysis. It is better to make house payments then to rent in the long term. Yes, there can be unexpected expenses you have to bear, but if you know the condition of the house you can budget accordingly. The key is to know your situation. The chief value of being a renter is that you are not tied to the property and can relocate almost at a whim whereas a house has to be sold which you may not be able to do quickly or easily. If you anticipate staying someplace for well over a decade, the house is the smarter move even if it is a simple comparison of house payment versus monthly rent. If, however, a change in life circumstance, such as your job, would require you to relocate across town or to another city in the near future, renting is the clear, better option. Each payment on your house builds equity, while renting gets you nothing each month but a place to live. If you plan to stay someplace for a long period of time and don’t anticipate the need to move anytime in the near future, it would be better for your monthly payment to go into something that will build equity as compared to money that goes to a landlord and you never see anything ever again. Also, being a renter doesn’t always work well. If you have a bad landlord, you may have to fight to get any repairs done, the landlord could choose to arbitrarily increase your rent when your lease renews unless prohibited by contract, or the landlord could simply sell the property to someone else who will not continue the arrangement, or the landlord could choose to remove you because he found someone who will pay more for the same spot. At least if you owned a home, these matters would be yours to take care of, and you would not have to rely on someone else who has an obligation but may refuse to honor it.
A great chess play once told me that if he could convince you that you only had two options then he had already won. Regardless of what the reality is he would win. Life is like chess....
0:39-“No debt”
4:25-“$100k in student loans”
That is the problem with this country right now. Student loans ARE debt!
Not when you live under the mentality that the government should just pay it for you.
@@ROCKETS2965 You mean the tax payers?
I mean...he can still get a home and pay his mortgage and student loan.
Exactly
He is so right! Every time I’ve made or almost made a really bad decision was out of a point of desperation and seeing no other way out.
So correct!
Yup same here
The only way to learn how not to be stupid anymore
"I have no debt"...."but I have $100k in student loan debt"
Julian lol that’s me!!
That’s how Americans look at student loan debt. It doesn’t really exist
One thing about Dave, he’s consistent.
@The Bureaucratic Cat Arrogant? Don't think so. And it's "past", not "passed".
The Bureaucratic Cat sounds like you’re projecting. Your insults are pretty telling
@@awanderer6990 he's grammar sucks, so he lost me at " I get triggered at people with money"
@The Bureaucratic Cat He doesn't know anything? Well where's YOUR ur $200 million in real estate then? Twirp.
The Bureaucratic Cat - (sigh) i bet you’re an anticapitalist socialist. “Everyone that is rich must have swindled a ton of people.” With that attitude, you are nothing and you will always be nothing.
Walked away from 5k when I was under contract with new construction on the Jersey shore.
The contractor didn’t disclose the house was in a 100 year flood plain and a relative that was an engineer noticed it on the blueprints. Was so thankful I walked away because unfortunately hurricane Sandy wiped out all the houses in the area years later.
Wow, dodged a bullet😲
Wow
Dave is so right "renting is wasting money" is the dumbest logic ever! it's like people forget what a big responsibility it is to own a house.
I rented the entire time I was getting out of debt. There was a lot of peace of mind about it because I saw it as security while I attacked the debt. If something broke, I wasn't on the hook for it.
He says that cause he own real estate, obviously he would want a consumer to rent on HIS PROPERTY!
@@cristianm6706 ehh it depends if you're married and both people make well over six figures you can get away with it and not have to worry about all the money that has to go into it. I don't think renting is perfect but if your single and make less then six figures it's a better option
@@cristianm6706because he owns real estate, he actually wants other people to as well. But he doesn’t want anyone in debt.
"Every time you tell yourself your trapped is right before you do something stupid. Desperation precedes stupidity." Amen
Brian from New York called in to flex on everyone buying a house whilst being a student
That is true!!!
100k in students loans doesn't sound flexing to me...
@Atty. Johnny Sins Personal Finance decent paying in downstate NY?
Law school is worth the money
@@angelachanelhuang1651Lawyers have the highest rate of substance abuse among any other profession. Why? They’re miserable.
Buying anything in NYC right now is stupid.
Which is why alot of people are moving out
@@unfairsanic5089 Hoping the bubble will burst soon.
man Splain depends. If you get a foreclosure at a 40% discount and a 2% loan, over the long term . NY isn’t going to empty. It’s a sheethole, but won’t empty
@teeduck It won't empty, but those with money leave and the broke ones stay behind. It's becoming more and more unpleasant to live here.
S Blijheid exactly, the rich good community members are leaving and the riff raff is filling the open space
I love Dave's comment "desperation precedes stupidity" I agree completely because I did that myself more times than I care to count. He is absolutely right as always.
The guy lives in NYC. A car is just a financial burden. Public transit, bicycle, walk...a car is unnecessary.
He probably doesn't live in the city just going by the cost of the condo. When talking to people outside of the tri state area, its easier to say NYC because people lump it all together.
Public transportation makes a simple 15 minute trip into an hour plus. Taxi also isn't the answer cause they're too costly for someone that makes under $300k in New York.
@@commonsense9076 People putting other cars on the road turns a 15-minute trip into an hour plus. That same 15-minute trip is probably faster by bike in any part of the city I've seen, and I live here.
@@gamelord12
This guy doesn't live in NYC, he clearly lives too far to bike or walk. With an economical car your trip would be more pleasant and cheaper than the other options.
The $100,000 in debt wasn't the stupid part?
Yep, $100k for some place to live where you just have to worry about covering the HOA dues and the taxes is not that stupid. I'm not sure what New York is like, but around here the rates of rent increases have been insane, you pretty much have to be rich in order to afford it.
Crypto currency is the future.
@@pinned5992 like change your life to what direction and in what way change it yeah bet you cant answer that
Crypto currency isn't bad at all but I just don't vibe with it.
Jesus Christ how did my comment get hijacked by a bunch of Crypto scammers? lol
So he’s $100k in SL debt with “a lot more school left” as he states, meaning that pile of manure is probably gonna get bigger, which he conveniently didn’t mention. Ya you shouldn’t be taking out a mortgage right now bro.
Dave told him not to go to closing and just lose out on the earnest money. But a while ago another person called Dave and told him that he was under contract with a house and suddenly felt like he didn’t wanna buy the house anymore. And Dave told him that it was morally wrong for a man to break a contract and he didn’t recommend he do that. 🙄
My advice rent out rooms to fellow college students.
The real stupid part I heard was buying a $25k car. Sell the car, keep the condo. The reality is, you can always sell the condo if it turns out to have been a really bad decision.
Two truths about New York: You don't need a car and real estate will always find a buyer. However, expect to be living with no furniture or anything nice or new for a few years.
I think his parents told him to leave their house when he bought the $25K car, definitely.
@Julius Chinn Chicken Not the type of property that results in a 1300/m mortgage.
@@legony1 definitely a kick the kid out event.
@Julius Chinn Chicken Oh goodness no I left and I'm never going back.
That said, for a favorable rate and at below market value, probably. The pandemic will get worse again before it gets better but the long-term outlook is improving. I don't anticipate any major crash that wouldn't see a rapid recovery.
@@yamamancha Yes, but he is a student. Will he stay in New York? Can he end up upside down in 2 years?
It seems like he knew the answer before he called. I guess he was hoping Dave would validate his bad decisions. Luckily Dave tells it like it is!
Or he wanted validation to step out of the deal.
Thats what I notice with most of the calls. I personally wanted to call and ask but I honestly don't know what I would ask that he would tell me different. I read his books and am currently tackling student debt.
Had 32k and now I have 15k left to pay so im on a somewhat good path. Now its more just keep doing what I'm doing.
This why I always open up a Dave video when I have the the urge to get a new car that I don't need. The point about desperation hits home and having an open mind can help us not feel like we've been backed into a corner with no other way out.
Renting while your working a plan to get a solid foundation up under you is not "wasted money" it's patience! TEACH US DAVE 🔥
Renting is not wasting money... You take on zero risk, you don't have to keep up with any repairs or maintenance and have the freedom to move when you want.
100k in debt, 25k in savings, condo is a third of his take home. Isn't a great situation but by American standards he's living pretty normal.
@Mr602 For the average American it is
@@Simon-oy7kf because most americans are suckered from society and american culture about how to live life, having a debt is not normal in any way
$100k in student loan debt, the condo is probably another $250k debt, as well as an auto loan. So probably $370k in debt.
@@saulgoodman2018 he said he takes home around 3k a month. 70k salary is before taxes. 1300 is a little over one third of his take home pay of 3000/month. Again not great but pretty standard for today
@Mr602 care to explain?
This guy is so lost. Wonder how he is gonna live the rest of his life.
The future of America you should check out high school and colleges filled with this
🤣
This dude can not close on the house, get an apartment, sell the car and get a $5,000 car like Dave said. Now he's got $50K to throw at the $100K debt, knocking in down by half. He makes $72K and can pick up a side job making another $10k at least and hes done in a year!
he's still a full time student
He works full time and student full time. Doesnt have time for side job.
@@TheLordBeast you would be surprised...
He had time to look for a house & complete paperwork he can use that time for a side hustle....working from home or driving etc... discipline is the 🔑
Thank you! I been telling people it’s wrong logic: everyones around me think it’s cheaper to own than to rent. Wth how?! basic math hello?!
Is a burrito considered beans and rice
If u make it at home. LoL
Yes, becuase of burritos I just paid off my car loan
Yes, if you buy from Taco Smell. If you make at home, it has real beef in it...
Yes
That tortilla is going to cost you... no way you'll get out debt now.
To add to this, the other thing which is more expensive when owning a home is generally the utilities. Generally the home is larger than an apartment, so it costs more to heat and cool. Since it's larger, you generally are going to require more furnishings than a smaller apartment or condo. You might have a yard which requires maintenance and watering/cutting. So now you need to buy a lawn mower. General upkeep even when things aren't breaking is more expensive.
In NYC that's not an issue. If your credit is not bad, your mortgage could be way less than an apartment at half the size of the house. Garden upkeep is cheap if you do it yourself. Spend the afternoon working in the yard and you don't have to hit the gym. But he's talking about a condo. That probably means no garden. Except garden tools, which have a long life, I don't remember spending money on garden upkeep.
@@sblijheid absolutely
@@sblijheid Like I said, generally speaking.
@@larrybud Okay.
I know we want our own house but we’re doing it when we are fully ready.
It is a sellers market right now and will be for 24 to 36 months at least..
I come to these videos for the comments we already know what Dave is gonna say😂😂 It’s like everybody here turns into financial experts😂😂😂
Sometimes these callers seem so clueless and out of it, when they say they have student loan debt I pray they aren't in pre-med.
Really. This guy sounds like he's half asleep. What is he getting his degree in?
They'd end up like one of my doctors who over prescribes and schedules needless visits.
A lot of these people have never talked about these problems and its the first time they are putting it into words. So some are dumb others just ignorant
I really needed to hear this! “Patience”
Making $70,000 a year but brings home only $3200 a month! Oh the joy of paying New York City and New York State taxes.
Yeah...You gotta love Democrat run cities.
Yikes! His take home is only 45%?!?!
He never said "a month ".
Could be 19k of retirement contributions as well...
3200 week
I wonder why his parents wanted him out of the house when he’s still in school. 🤔
Living with his parents rent-free is my guess... and then he bought a 25K car and has 25K in the bank. He’s not contributing to the household.
@@legony1 You’re probably right.
Lego DC probably, which is disrespectful. I sold my home and lived with my parents while my new home was being built and I paid my parents utilities, groceries, cut the grass, and fix things around their house.
Yeah, I think there's more to the story there than he's admitting...
DONT CLOSE ON THE DEAL. But Dave is right: Sell the car, don’t close on the deal, get an apartment and roommate, pay off tuition/student loans
The “costs the same as renting” people are my absolute favorite.
I mean to rent in NYC is extremely hard because of how much they charge for 1bedroom
If you want to be mathematically technical...
it is when you factor in value.
Yes, you are responsible for maintenance costs. But you own so it means the property actually has value.
Now you should budget for more than the mortgage due to repairs, that much is true
Alex Gosser you own nothing until the debt is paid.
MCRC : so you can’t sell the house until all the debt is paid?
That’s not right.
Also - I was using the broad definition of “own”.
@@Runco990 You can put a nail in the wall with rentals too. You just have to pay a $500 damage fee.
I’m confused....I’ve been binge watching Dave for a while now, and I recently watched one about a guy in a very similar situation, in terms of wanting to back out of a contract to buy a house. In that situation Dave questioned the ethics of backing out. He was quite firm about it being almost a dishonest thing to do. And yet he’s here telling this guy to back out.
Heard a similar call as you describe, but with a woman caller. I thought it was interesting/cool that he framed it as "well, you made a promise..." and seemed to therefore not even consider her walking away from the deal because of that.
A lot of people in similar financial situations know deep down that mistakes were made and they need to hear it straight, the way Dave gives it. I'm happy for this guy because he's finally getting educated. Its okay if you're ignorant about something, but what matters most is what you do after that ignorance is confronted.
When one doesn't listen to their inner voice one will always make destructive choices.
Any apartment in NYC, even studios cost more than 1300. Starting price is around 1500. The deal was good. The car was a bad idea since the city has good public transportation. Everywhere you turn your head, there's a bus stop or subway.
1st off if you live in the NYC metro area (which I do, grew up the Bronx live in the burbs now). Rent is so ridiculous is this area I am not sure what all his expenses will be mortgage and maintenance I am going to guess $1600-$1700 based on his $1300 mortgage then utilities cable and electric another $300. To rent a one bedroom subpar apartment is $1700 plus utilities, a studio is $1500. I say keep the condo and get a roommate it it is a one bedroom convert the living room to a bedroom. He can rent that room for $1000-$1200 a month.
Sounds like a good idea! He don't need a car though
that's what I thought
When he said “I will knock you out” I died
Clearly owning a home is less expensive than renting. That difference in the cost owning and renting is the profit margin for landlords.
Good point
Daves a smart guy but I dont think everything he says is backed with logic.
What?
My renting a house was 1700 vs renting a townhouse 800
@@justinc2633 Dave logics is about building from the bottom up.
I hear the shame in his voice, I feel bad.
The responsibilities of home ownership is why I rent. Thanks Dave
I think student loans are so traumatizing that people disassociate with it
If Dave says he's going to knock you out, he cares about you! 😂
Dave’s Kermit impression at 7:28 killed me
Once I'm older, I might want a show like his. I definitely want to do this kind of stuff.
never to young to start the younger you start the richer you end up.
💯
Start one for your gen ;-)
Trying to keep a level head and not get too rash or emotional is key! Slow and steady, follow your plan!
"I'm $100,000 in Student Loan Debt and Just Did Something Stupid!"
Oh no, he got a car....
No, he didn´t, the car is paid off.
He should close! I lived in NY my entire life you aren't renting anything for less than 2k a month or tour getting 3 roomates. The $1300 @ month mortgage is nothing
Right?! And its yours. All the "rent" money would be having a purpose and a home. He can pay minimum on house, pay down student loans, then come back to the house afterwards and pay it off in under a decade. I hope he closed.
He should buy this home and find a roommate to help for the mortgage payment
$1300/month mortgage and $1300 rent are not the same. I'd take $1300 in rent as owning is going to cost you a whole lot more.
As an in home solar sales rep, I’ve gotten to sit with hundreds of homeowners and I’m thoroughly convinced it is not a walk in the park. They are not automatically rich because they own. In fact majority of them are looking for the cheapest option available because money is so tight. And this is in the Bay Area. House poor is real.
💯 Agree. FYI it’s not rent vs mortg. Condos have monthly maint/HOA fee (can incr yearly). Highly advisable to have lawyer experienced in condo contracts if buying prebuilt from speculator. Both house and condo have maint/ins costs and taxes. Agent/legal (maybe land transfer) fees s/b factored for buying/selling and location for future value/equity.
Why aren't they asking him what the mortgage is? A 100 k 15 yr fixed is a completely different story than a 200 k ARM
I strongly disagree that they won’t sue - not closing on when you’ve already exchanged contracts is a legal nightmare, the seller is entitled to sue you not just for the full amount but also any out of pocket expenses. I would close on the deal and then try and sell it later
"I will knock you out." WOOOO haha
Rent vs own talk was very eye opening
Why would you even think about buying a condo while you are a student? You are totally screwing the sellers if you back out, just so you know, and they can sue you and force you to close! 1300 a month is nothing, especially if that includes the condo fee..
That's what the earnest money was for, they are picking up 5K. They can try and force the closure, but it is almost certainly not worth it
You don't know what you're talking about, so don't speak on it. He can back out before closing for whatever reason he choses, he just loses the earnest money because it's beyond the atty and inspection review period. You can't force someone to buy anything off of you. It's not closed until it closes. that's why they call it a CLOSING!
@@darthsiddious7469 I'm outside the US, but it's no different here. As long as those final signatures ain't on paper & the deal ain't completely done ... you can always back out.
HOWEVER ... once the 'first document' (the agreement to buy) is signed you're on the hook for at least a severence fine if you somehow still decide to back out (after all, you've already legally agreed to buy it from them and are generally just waiting for the notary and stuff to get all the other legalities sorted out).
You still CAN back out, for whatever reason, but usually it's 5-10% of the full sale value of the home that you're on the hook for to do so.
And euuugh @Betty Smith
You ain't screwing the sellers in any way, shape or form. Or at least, not necessarily. If anything, you're doing them a favor, giving them free money. The property remains yours and you put it back on the market AND you put 5-10% in your pocket.
It CAN be a problem if you're using the €€€ of that sale to fund another project of course. Then you'd have to engage in a loan to bridge the time until an actual sale or something.
So it can go both ways, depending on the situation.
Watching this while i was about to go to the bank and borrow a loan for motorcycle. I changed my mind about that loan but not the motorcycle. Im just going to save up for it instead
Yes - don't make decisions when feeling trapped, confused or full of fear. Seek counseling as this young guy has done here.
Co-hosts laugh entirely too much. Takes away from the compassion that Dave genuinely shows.
I agree..
I agree
My exact thoughts. Like girl, why are you laughing? This guy is obviously feeling lost and is seeking genuine help and advice.
She's probably nervous.
I see this a lot with interest rates hitting lows. People who are marginal buying houses. They drive up the prices and in a couple of years when interest rates go back up and the buying mania subsides they're stuck with a property thats worth much less than they paid.
I wish the callers would comment so we can get updates.
He probably didnt include monthly HOA fees being a first time owner. I hope he did not to go to closing.
How do you know they won't sue him? Closing is later in the week man. They can sue for specific performance AND have him pay for liquidated damages
I believe that's the point of the $5,000 "earnest money". If he decides not to follow through on the closing, the seller keeps that money.
I wish these people would get their thoughts in order before they call in. Then they could spit out their story and ask their question quickly and stop wasting our time.......and not sound stupid in the meantime!
True!
“Owning a home in a given year is more expensive than renting” so why does he have everybody (renters and owners) start with a $1000 emergency fund in step 1? I just couldn’t do that for the reasons he states: water heater, furnace, things like this are more than $1000.
Great episode. Really effective way to describe renting vs buying
If you listen carefully, on every call, you will hear a tid bit of wisdom that you can use for any situation and that is why I listen to the Dave Ramsey show.
They never asked what he was going to school for..? He said he has 100k of student loan debt and STILL had a lot of schooling to go...
I'm also in the process of buying a property but I have ZERO debt so hope Dave would approve...
20 percent down, 15 yr mortgage, no more than 1/4 your take home pay.
So he lives with his parents, works full time and still has 100K in student debt. Student loans are a trap for the immature.
Ironically when I moved to Tampa I was looking at buying a condo as a 23 year old in the Air force. I called my parents and they told me, no, bad idea, just rent so i did.
He chose to call after being under contract. That way he is more likely to be told to go ahead
since he agreed to purchase. He knew that if he called before that, he would have been told to not do it.
8:02 Love when Ramsay says you are BROKE! hahaha perfect
Great segment
He's OK, close on it and buckle down. I mean a condo is way cheaper to own then a single family house. I am a supporter of buying early, he can have a paid for house by 45 or 50. If you are mechanically inclined, because things break but most people don't have the patience to learn how the mechanics of house works. My ac has broken several times but I've learned how to repair it myself. I've put floors down, replaced the kitchen and bath, learned small electrical repairs. I think owning is a lot cheaper then renting.
Rent a room, sell the car and work, work, work. Whilst studying dont go crazy socializing, head down and get the best grades possible. If you can keep the apartment and get through studies you'll be ok. Once studies finish and you have a better paying job then work hard to pay off the student loan and then mortgage.
Anyone else find it slightly ironic that Dave complains about people not thinking about taxes/insurance when he's talking about people buying a house, but he frequently forgets to include taxes when he talks about people's salaries. When he says "you earn X" it's often the gross value and not the actual net amount that person will be bringing home.
I love how the guy never responded past the moment he was expected a validating answer.. good laugh...
He could be sued and lose his earnest money. He could talk to them honestly ask them to let him out if he find another buyer. It's not that hard.
This is the one place I disagree with Dave. Apartments aren't cheaper if the owners never fix anything.i never had a good landlord; My parents had a great landlord until his son in law took over.
My parents rented for 28 years because of medical expenses that happened right before they made an offer on a house. Then bought the house they rented... they basicly paid 2 mortgages on the home. And this caused them to be unable to save for buying my uncle out of the farm.
Rent=my landlord had to fix leaking roof all new plumbing cut down the rotten tree aimed at house pump septic tank 🤔🤔🤔🙏
I don’t think you’d be doing all of that on a condo
@@cjmor6590 ever had a water heater break toilet come up in bathtub ever had broken window?
My family owned condos & homes & even some mobile homes r you old enough to remember b4 condos???
NancySue Smith condos have been around forever.
NancySue Smith where I live u pay hoa fees every month so the building takes care of those issues for u
Well a condo hoa you pay every month and it only covers exterior. Things “wall in” is your responsibility. The air conditioner, water heater, appliances isn’t covered by hoa. I know because I used to own one. Condos are good if you don’t like to do yard work.
Thx for SHARING🤔🙏
I'd keep the condo if it is the same or cheaper than rent. I know everyone is not as lucky as I have been but I have lived in my 110 year old house for 13 years and have not had any major repairs/bills. It would definitely cost me more to rent than it did to buy. BTW-it will be paid off next year.
I get NYC has better public transportation than where I live. But he said the cars paid for. Why get rid of it now.
j heath don’t forget costs like inspection fees, maintenance & repairs, gas, parking fees, parking tickets, insurance. He could be saving a lot more money if he got an electric bike or use public transportation.
Bet the Maint. fees are $500 a month on a Condo in NYC
how do you feel about house hacking? if you buy a house and rent out the other rooms to roomates? they'd cover some of those expenses
$3200 take home is $70k? How much are they taxed in NY?
Jesus he's not kidding its going to take longer than 4 years for him to clear his student loans, it took me 2.5 years to clean up 27k and thats that I left myself with 200 extra per month because I couldn't handle being stuck at home doing nothing
Dave the GOAT..
It is there is more cost going towards something that you own but I still say that's the better way. Because it's yours it's equity building up it's just buying is better it's just better. You can get a roommate that gives you enough money that they pay rent to you as the owner and use that to pay the mortgage and or just stash the money that is paid to you away.
I'm glad Cristy was there for this call
Why
Dave is such a hypocrite. There's another video where he almost yells at the caller, for suggesting to just not close on the house sale. Dave screamed and ranted, stating "that other couple that put the house up for sale, will be expecting this money so they can finish moving themselves, so you're a bad person for breaking your promise.".
Then he straight up tells this guy "dude, just break your promise, and YOLO!".
Harry K, I remember that call like it was 5 minutes ago. I can’t believe Dave just flipped flopped like that.
this is painful to listen to. This guy sounds lost. I have a feeling he's going to get off this call scratching his head asking "what should I do?" I don't even know what he's studying but if he's $100k deep with more left to go, I hope it's a super high-paying field of study. I doubt it though because he doesn't sound like he knows what's good for him.
We can take over those payments and get you out of that condo if that's what you need. We can help
Okay, I need to disagree with Dave here. The idea of whether it is better to pay on a house or rent is a multifaceted analysis. It is better to make house payments then to rent in the long term. Yes, there can be unexpected expenses you have to bear, but if you know the condition of the house you can budget accordingly. The key is to know your situation. The chief value of being a renter is that you are not tied to the property and can relocate almost at a whim whereas a house has to be sold which you may not be able to do quickly or easily. If you anticipate staying someplace for well over a decade, the house is the smarter move even if it is a simple comparison of house payment versus monthly rent. If, however, a change in life circumstance, such as your job, would require you to relocate across town or to another city in the near future, renting is the clear, better option. Each payment on your house builds equity, while renting gets you nothing each month but a place to live. If you plan to stay someplace for a long period of time and don’t anticipate the need to move anytime in the near future, it would be better for your monthly payment to go into something that will build equity as compared to money that goes to a landlord and you never see anything ever again.
Also, being a renter doesn’t always work well. If you have a bad landlord, you may have to fight to get any repairs done, the landlord could choose to arbitrarily increase your rent when your lease renews unless prohibited by contract, or the landlord could simply sell the property to someone else who will not continue the arrangement, or the landlord could choose to remove you because he found someone who will pay more for the same spot. At least if you owned a home, these matters would be yours to take care of, and you would not have to rely on someone else who has an obligation but may refuse to honor it.
A great chess play once told me that if he could convince you that you only had two options then he had already won. Regardless of what the reality is he would win. Life is like chess....
Me when I read the title and listen to the intro...Ooo Brian what did you do!