Is The Housing Bubble Finally Bursting?
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- Опубліковано 10 кві 2024
- Real Estate is NOT the pathway to wealth that you think it is!
Join Adam O'Brien as he digs through the covered up pitfalls of real estate, and why the true prices and values of homes actually GO DOWN forever in the long run!
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[Credits]
Host: Adam O'Brien
Producer: Julian Figueroa
Editor: Beto Guerrero
Real Estate is a shitcoin
cool video, thanks
The idea used to be that a home was where you could escape everything. A place where you could get off work and relax. A familiar place that you didnt have to worry about all the things that bother us now. Of course back then you could buy a home and car, raise children and take vacations on a single salary, but the concept is what still drives people.
Imagine having to think about where your work is in relation to your rental every time you move, collecting your belongings making sure nothing important was lost... or being able to find a rental at all in time before you have to leave the last one.
(Julian)
the sad reality is that homes have been commoditized. it's a direct product of having a monetary system without scarcity - monetary scarcity gets transmuted into scarce assets and commodities.
in this paradigm - I don't want a house if it is going to cost me such a massive part of my economic productivity over the span of my entire life.
especially at this point, where you NEED to rely on other people's/banks money in order to have a roof in most cities. sovereignty is more important than a piece of paper that says i own the roof over my head.
Bitcoin >>>> Realstate
Based 👊🏼
lol. Never forget: the last one pumped, is the first to get dumped.
I’m Canadian and couldn’t agree more, great video!
Kind of Bs here , if you buy house below your means and live there you save money compared to renting. My house payment is zero and I have to pay insurance , tax and some people HOA.
If you rent , you pay the same because the landlord will need to cover those expenses plus you pay an interest on a mortgage. We bought a small decent house and we pay only ins. and tax plus maintenance that we would have to pay anyway if renting through the rents. Plus in California , rents are up 5 percent every year. Not our problem.
I can speculate how much we could make on Bitcoin, but where would we live ??
IF you buy your house all cash. The median house price in major cities in Canada is $900,000. Which mean almost anyone who doesn't come from wealth/inheiritance money will be paying a 7-9%+ interest rate on a mortgage.
but also, if you pay for that house in cash the opportunity cost in BTC is through the roof
This video is just too sensational. Rings all my red flags, like OF COURSE you would buy Bitcoin instead of a home knowing what you know now and from a financial point, but that doesn't mean that being homeless or dealing with all the nuances of renting (like moving from time to time, decorating, rent raises, etc) or whatever else you would do to have shelter instead beats having bitcoin.
If you have bitcoin, those problems probably go away. Because your wealth will be so well preserved that you can effectively pay a premium to afford a lifestyle (like not moving) to your landlord.
Model tenants that pay on time NEVER get the boot
Very cool pivot for this channel. Love the work
Thanks Mark! We're dropping new episodes of Futureproof every week - if there's ever a topic you'd be interested in having us cover, let us know!
OK, I can't be a Real Estate Investor anymore. So now I have no incoming cashflow and no paycheck. What should I do? Go get a W-2 job? Which one? How am I going to buy bitcoin without money coming in? I don't understand.
This is a fantastic point! Owning real estate is a JOB! If your job is real estate investing and managing properties, good for you. The majority of people have the misconception that owning property is an easy way to preserve/create wealth - but it is not
Dude opening statement was too harsh🥶
is what it is 😜
Couldn't agree more. Houses are incredibly needy liabilities. I've felt that way & been a renter since I sold my house in 2005. Don't plan to go back, ever.
Incredible ballsy! Good for you. This is a mindset that generates WEALTH (hopefully you’re allocating “would be property maintenance” into bitcoin)
@@adamobrien_ But of course. ;}
You can’t live in your bitcoins, but you can live in the house you buy. Rent is fine as long as you can save money to purchase property, it’s the single most valuable asset anyone in the middle class can afford. By the time you retire, yes you may have spent some on interest payments, but when you sell the profits is tax free and you’re not paying down someone else’s mortgage in rent payments.
The opportunity cost (and literal maintenance cost) of owning a house is not worth it when an asset like bitcoin exists.
You can sell your bitcoin to pay your rent.
You can buy a fraction of a bitcoin.
You can sell bitcoin any time, any place.
The same is not true of a house.
@@adamobrien_ you still need to buy the coins at some point, so unless you want to use bitcoins as a volatile bank, you still need to find money to pay 2000 in rent and 2000 in bitcoins before you even see any sort of return.
Buying a house means you take a loan, sure, but you don’t have to pay rent and each payment on the mortgage lowers the principal. Once you’re ready to go on pension, you sell it for profit.
Actually Two Cents channel made a good video on renting or buying a house, and if you can find a rental property that allows you to invest more in stocks etc. it may workout, but for the majority of people it’s not a good call.
Rent is always increasing, payments goes to pay off your landlords loans instead. Leaving you with nothing. Diversify your portfolio with a house, stocks and some coins is the best call.
You still need to pay for both rent and bitcoins, you cannot make a return on something you don’t have invested yet. While you pay off your landlord’s mortgage, you also have to pay into bitcoins and hope it increases over time to sell off, to pay rent etc.
There is a two cents video on this topic, and only if you find a cheap rental property and can invest the difference does it make sense. All other cases, paying back a house will always net more benefits long term.
I purchased a home for 120k now its worth 550k I rent it and I make over 1k in profit a month. YOU HAVE TO PURCHASE INVESTMENT PROPERTIES AT A HUGE DISCOUNT OR PUT A HUGE DOWN. If you can't do that, don't buy it.
What was the interest rate when you bought it for 120k?
I think something like 50% of people buy with financing... 120k would be a dream price for any livable property!
@@getbasedtvwhy pay interest rate when I can just pay 600k for my house at 2002. Now my house is 2.2 millions.
@@lujack1801 Imagine if you would have spent 600k on bitcoin in 2012 😍😍
You would need a couple extra 0s at the end of your net worth
OMG I thought this guy was doing a parody on Bitcoin, but he was serious.
I assume most of your audience are kids and teens, or early 20s, one word to those people: Don’t Fall for this bitcoin trap. Real Estate is not real and bitcoin is? Lol man, what did I watch
H
read your message 3 years later again and let me know if you are still laughing :)
Real Estate is not real but a contract you only own the surface of the land and the house or condo on top. That is a form of fiat. Property taxes owed every year is really like paying a rent. So we do not own property in the USA. Not in true living we do not own property any of us except those who have Allodial Title free and clear. Texas is the only state that is left that has those titles. All of us should who buy land or homes should receive Allodial title. But, the powers that be , the bank owners own all the soil in u.s. You can get mineral rights but forget gaining allodial title. With that title you owe no property holding taxes and finally you are a king or queen instead of a u s citizen peasant today.
@@box2519True, but houses are a appreciating asset, sure you can name some localities where the prices may remain stagnant. But generally they are real assets that you own. I can’t fathom people assuming Real Estate to not be real and some crypto coin which started it’s existence literally 20 years ago and is on mercy of laws to stay afloat, technology changes rapidly. But land is there for hundreds of years, we have battles and all just for land.
NFT supposed to be on ETH, had a solid backing, solid backend foundation, still fell flat. Millions of dollars vanished, few became millionaires, majority just believed in the ponsi scheme and waited to be the next millionaires
@@box2519 BINGO
Im in canada🇨🇦
Hope you own bitcoin!
Please explain, if I can't use an asset I have, what is the value of having it?
Very little. This is what makes bitcoin worth ownership over housing.
Housing is good for 1 thing - dwelling. And is exposed to many things - mainly government.
Bitcoin can be used to trade your stored value for literally anything. And is exposed to very few things.
Bitcoin > “real”estate
andrei jikh light
Guys, you are killing it with the new videos 🎉
This is just the beginning 🚀
Thank you for support. We won’t let you down!
Bitcoin is virtual land and property is the only actual real asset that you can own
Saludoa Adam🌺 from Me,ico!
Julian told me about the Based Premiere !*
Congrats 🎉...from Julian's Maman'....Cheers *
👍🌞🥇🏆
I can’t wait to meet you one day! 🎉
05:18 Wow, what a lazy take on different down-payment requirements depending on how the home will be used. Of course it matters. Bottom line, the bank DOES NOT want to have that house on their balance sheet with an upside down valuation (vs amount owed) if the owner defaults. The bank is a bank, not a REIT. Does anybody remember what happened in 2008-10? The banks ended up with massive numbers of foreclosed homes on their balance sheets and the vast majority were waaaaaay under water.
So yah, duh. The bank will require more of a down payment if you intend to make the home a rental because guess why? It's more risky ... you might not have high enough occupancy, default on the loan, and give the bank your stupid house (with negative equity) for them to absorb into their financials.
Why do any of those risks disappear if you are living in the house?
@@adamobrien_ If you're an Investor and your primary home mortgage payment is $1000 and your Investment Property mortgage payment is $1000, and you only have $1500, which mortgage are you paying that month?
@@tjkrz I’m selling one the properties. Nothing good can come from being that levered up.
@@adamobrien_ You were asking why it's more risky for a bank to loan against a rental vs. a primary home. Because the investor will always pay his primary loan first, so he's not kicked out to the street. That's why the bank charges a premium for rentals.
You are making a lot of assumptions here. Some people pay off their loans WAY faster. And some like myself buy houses all cash. If I didn't go that route I wouldn't to be where I am today. Bitcoin is a ponzi scheme and requires you to actually sell to make your money. With real estate you can make money off of rent and appreciation. I wouldn't buy in Canada tho....that place is a rip off of a country. Move!
We agree on Canada!
Your house will cost you money in the long run. Your bitcoin will not
Have both if possible?
We know BTC will be worth millions in a decade or so, but most of us will marry and have kids. Time horizon changes as you get older.
Adam's message is hard. But he also has a number of kids too.
(Julian here) - I think the question to ask is most people WILL take out debt in order to get real estate, and if the plan is not to immediately flip your house, you end up paying WAY more than the initial price tag over the long term. Is that better than renting and having a fat stack of Bitcoin? Is it better to be a high-interest debt slave to the bank or pay your landlord's mortgage (who is likely barely breaking even)?
@@getbasedtv Yes, decisions that have yet to be made are different too. I also have tenants in my home and if I were to rent my rent would be much higher when compared to my mortgage - income from tenants. In general, people completely lack the understanding that your house goes DOWN in value, just more slowly than our horrible currencies. Best to hold something that doesn't do down in value and even goes up in value over the medium term (because we're still early)
I have 4 kids. Renting with a stronger bitcoin wallet gives them a better opportunity at financial independence
mud hut old fashioned ma and pop home like nuclear family homes aint worth 100k tops
Welcome to migrate into Asia guys.. our English is quite fine 😂
We have a bunch of friends that have moved there... And it's not just for the good food 😂