I hate when people say “the value of my home has doubled so I’m doing good” this also means if you sell your home, the next home you buy will be double the cost it would have previously been so even matching Interest rates still results in a loss for your finances
Unless you move to an area where home prices haven’t appreciated nearly as much. It would typically be a lot harder to find a decent job in those areas, so it probably only works for people who work remotely.
@kevingrant4491 preach!! My friends parents thought similarly with getting him a apartment for college. Then subletting rooms to pay off that mortgage. But there is issues with noise complaints, damage, and things just breaking. While i thinj finance wise it worked great. I know friendships and the family relationships got complex.
As a licensed plumber I can testify to a fact that new home are built too fast, too cheap and every single corner that could be cut was in fact cut!!! I go to new homes that are 2,3 or 4 years old and their plumbing needs thousands of dollars worth of repairs
I rented a flat where the previous owner rerouted the plumbing from one room to the opposite end of the flat - the resulting spaghetti piping was absolute madness. Some people spend good money to devalue their home even if the building contractor did a decent job 🤷
@@mairacha3190 the worst I’ve seen was a 14 month old house whose foundation was settling so much that it broke sewer pipes under the house! His builder told him his house had one year warranty and he was approximately two months past it. I have the homeowner a quote for $50K to dig up tunnels under his house and install new sewer pipes. He declined and said he would sue the builder. This was two years ago. I drive by his house daily since it’s on my way to work and no repairs were done and the house has been sitting vacant for over a year and it’s not on sale
@@mairacha3190 The worst I’ve seen in my years in plumbing happened about two years ago. I was called to a 14 month old house because they had whole home sewer stoppage. To make a long story short………….house foundation was settling so much that PVC sewer pipe under the house broke apart. I told the homeowner the only way that could be repaired is if tunnels are dug under the house and new pipes were installed. He said that house was under warranty and that builder would fix it. I got a call two days later from the homeowner who told me that builder has 1 year warranty on the house and he was approximately 2 months out of warranty and therefore the house was no longer builder’s responsibility. Last thing I know is that homeowner took builder to the court. I drive by that house several times a week and I haven’t seen any repairs being done. Approximately year and a half ago the people moved out and house has been sitting vacant since then.
I’m in Ohio and the housing market here over the last 7-8 years is unlike anything I’ve ever seen. Homes that were bought for $130K in 2015 are now being sold for $590k. I’m talking about tiny, disgusting, poorly built 950 square foot shit boxes in quiet mediocre neighbourhoods. Then you’ve got Better, average sized homes in nicer neighbourhoods that were $300K+ 10 years ago selling for $750k+ now. Wild times.
Home prices will come down eventually, but for now; get your money (as much as you can) out of the housing market and get into the financial markets or gold. The new mortgage rates are crazy, add to that the recession and the fact that mortgage guidelines are getting more difficult.
Home prices will need to fall by a minimum of 40% (more like 50%) before the market normalizes.If you are in cross roads or need sincere advise on the best moves to take now its best you seek an independent advisor who knows about the financial markets.
Sophie Lynn Carrabus is the licensed advisor I use and i'm just putting this out here because you asked. You can Just search the name. You’d find necessary details to work with to set up an appointment.
Thanks for sharing, I just looked her up on the web and I would say she really has an impressive background in investing. I will write her an e-mail shortly.
My grandfather bought a house in Brooklyn NY for 60k in 1980 it’s not a luxury place by any means . It’s currently valued at like 1.8 mil . It’s insane
Mortgage rates are currently at an all time high since 2000(23 years) and based on statistics on inflation, we might see that number skyrocket further, a 30-year fixed rate was only 5% this time last year, so do I just keep waiting for a housing crash before buying or redirect my focus to the equity market
The stock market is no different, to maintain profit you need to have some in-depth knowledge on the market. I mostly just buy and hold stocks, but my portfolio has been mostly in the red for quite awhile now. Unfortunately to be able to make good gains, you’ll need to be consistent and restructure your portfolio frequently.
In my opinion, it was much easier investing back in the 80s but it’s a lot trickier now, those making consistent profit in these times are professionals reason I’ve been using an advisor for the past 5 years to consistently build my portfolio in preparations for retirement.
Annette Christine Conte is the licensed advisor I use and i'm just putting this out here because you asked. You can Just search the name. You’d find necessary details to work with to set up an appointment.
My dad’s a construction guy who did a huge renovation on his home. It was too much work so he had to hire some guys, but if he could, he would do it all himself. I don’t know how many times he had to stop these guys and correct whatever they were doing or catch them using the wrong materials. He broke out old textbooks and did the pluming himself to protect from any future headache. The quality of construction has gone into the trash and the only way to know about it is to be a professional in the field. Gone are the days where you can rely on people who sell themselves as “the best”.
As a trades guy I automatically assume their garbage if they tout themselves up any more than "I'll get the job done" My work rents from another company and witnessed that other company hire a new fire system contractor that low bid their tender and then fleeced the company selling them multiple $20,000 valves that "needed to be replaced" when they could have been repaired for maybe $1500
@@amazinglats6020 naaah the new people wanna learn "business" aka get a job and outsource it to a 3rd world country for 1/4 the pay and collect the difference.
I was VERY selective. Ended up buying a 1500 sq ft duplex for 209k. I pay 1680/month and rent out one side for 1300/month. This place is not flashy but I'm doing great financially
I wish that were possible around me. But the typical mortgage payment for a duplex around me is about 5K a month, while typical rent is 3K for it. And I'm not even including any other costs to. So it was always a "rent is better" for me. Sigh.
you're literally part of the problem, you're doing great financially because you're abusing people who can't afford down payments - because of people like you
Always, always, ALWAYS buy below your means! What you can qualify for and what you can afford are VASTLY different!! It applies to cars as it applies to houses.
I feel its a better option to move to a different state that has cheaper houses but relatively safe area, than to buy a cheaper home in your current higher cost of living area but more crime
@@mibox8302not everyone’s job is transferable to rural and small towns. And not everyone is safe or welcomed to live in rural and small towns. The solution is regulating corporations buying homes and land for residential use.
Ever read the three little piggies?..why would an old wood house be better then a reebar strengthened new build..I have been direct.y hit by one hurricane..I mean it went right down my street..I lost two tiles..two...now look at the empty spaces that used to contain wooden houses
Everyone should watch the guy who does home inspections and shows how corrupt and scammy they are. the have been leglally trying to shut him down and take away his licence, you see them building milliondollar homes but putting 25% of the need insulation, broke floors and roof tiles, leaking bathroom while the builders lie and deflect. dangerous gas leaks. people NEED to be proactive. if you buy make sure the inspecter does a real inspectinog, alot of them now are tight with these builders. inspect everything yourself as well. new doesnt mean better or even good.
Hire your own inspector! Just like any other employee they're going to say what their employer wants them to say. If you pay the inspector he'll tell you what's actually wrong with the house.
I’m in Ohio and the housing market here over the last 7-8 years is unlike anything I’ve ever seen. Homes that were bought for $130K in 2015 are now being sold for $590k. I’m talking about tiny, disgusting, poorly built 950 square foot shit boxes in quiet mediocre neighborhoods. Then you’ve got Better, average sized homes in nicer neighborhoods that were $300K+ 10 years ago selling for $750k+ now. Wild times.
Home prices will come down eventually, but for now; get your money (as much as you can) out of the housing market and get into the financial markets or gold. The new mortgage rates are crazy, add to that the recession and the fact that mortgage guidelines are getting more difficult. Home prices will need to fall by a minimum of 40% (more like 50%) before the market normalizes.If you are in cross roads or need sincere advise on the best moves to take now its best you seek an independent advisor who knows about the financial markets.
Personally, I can connect to that. When I began working with a fiduciary financial counsellor, my advantages were certain. I got into the market early 2019 and the constant downtrends and losses discouraged me so I sold off, got back in Dec 2021 this time with guidance, Long story short, its been 2years now and I’ve gained over a million dollars following guidance from my investment adviser.
There are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’ Carol Vivian Constable” for about five years now, and her performance has been consistently impressive. She’s quite known in her field, look-her up.
It’s not “here” it’s everywhere. We dropped interest rates to 2.5% which sucked up supply then let 10+ million migrants enter the country who are now competing for housing.
The other side is also a problem, my rent was going up $500/mo every year. Went from paying $1400/mo to $3100/mo over the last few years and there was no sign of slowing
@ There might be in massachusetts or california or new york but not in the rest of the country. most of the states are super anti government/collectivism in any form really and constantly work to remove all regulations whether beneficial or not
But crazy rent increases aren't happening in every market. My rent has only gone up a total of $75 per month in the last 7 years in spite of people relocating here in droves because of our great economy.
When I bought my fixer-upper in 2020 I knew what I was getting into. No floors, no working toilets, one working sink, popcorn ceilings, sagging foundation. Realtor said it would be nothing but problems, BUT she also said if I was that confident in my handyman skills, that the 40% under comps asking price and 2.6% interest rate would were a once in a lifetime opportunity. So, did the 90% work myself to fix it up (minus foundation repair) and I'm so glad I did. I even overspent on some things due to ignorance but It's now worth more than double what I borrowed for it in a nice part of DFW. My monthly payment is well under $2k and less than 20% of my net income. People said I was nuts but I think I made out like a bandit.
@ it was about 3 weeks to make the house livable. I hired out the foundation and structural repairs prior to taking residence. I put in floors and fixed one of the bathrooms enough to be functional. After that, let’s just say it was my personal hobby for 2 years. I needed help with some things like an accent wall and my bathroom remodel. But there were probably simpler, less attractive solutions that could have been solo efforts. Everything has trade offs but for me it was all well worth it.
Another issue with homebuyers, especially first timers, is that they don’t know how to do or fix anything. I am 41 years old and I have made a point to learn how to repair and maintain a home. I can now do any electrical, plumbing, structural, exterior, interior repairs, and renovations. Now you don’t have to be a skill as me to be able to figure a lot of things out when it comes to owning a home. Can take a $2000 plumbing, broken pipe job and turn it into a 100 or $200 repair by simply, educating yourself and being willing to try
I’m an electrician turned into an electrical engineer, I am sometimes excited to see what things I can fix and improve in my home. I mean it’s a pain in the ass if after I get off a stressful shift something goes out, however I don’t mind doing a lil home reno on the weekend. Get a good podcast and go to town
As a 24 year old I’m so glad looking back on it my dad forced me to help him fix his house as a kid, or I’d get things like my games taken away. I’m one of the few people I know who can do a lot of at least minor repairs. Even the people in the 30s I know, don’t know a lot of simple stuff around a house to do or even where to start
That’s great. I will say that some things in modern houses have become so complicated that they are more difficult to fix than regular things, like underfloor heating. Similar to modern cars, which can I go be fixed by a garage sometimes.
I'd love to be able to do that. Unfortunately both husband and I work 50 hours+ a week and we have three small children. We've tried to get into fixing certain things but then are attempts actually cost us even more in the long run :-( The dream is still there but we've got a real slump right now.
Same. We could have got another $200k in finance but didn’t want to max us out. We wiped out most of our savings but only 3 weeks in and we can start putting that money off the debt instead. The good thing is it’s not in the best area but an area that has a lot of things happening over the years so no doubt the value will rise significantly and as we went larger than what we need it means we can downsize in the later years
Also pay it twice a month instead, every bank is legally obligated to have it available. Just by simply increasing the frequency you shave 7-8 years worth of interest off. It’ll stretch the extra money you’re already putting in
4:20 hint for when your AC goes out in the summer. Put window units in the windows for the summer ( I know some pampered poodles cant deal with the imagery) BUT we saved almost 6k doing just this. AC companies are struggling in the winters (here in Florida) get 4 to 5 quotes during the winter. We got a %30 savings with a winter repair.
How do you suppose the repair is verified in the wínter if the ambient temp is cold? The air vent temperature will not see a change. After about 10 mínutes, the evap will freeze over with ice.
I live in North Alabama and 10 years ago I got a 1700sqft house for $100k at a 3% interest rate and pay $762 a month…I owe $30k left on it and it is now worth 235k.
Wow you did way better than me ! 9 years ago I bought my 650 Sq foot home for 95 k with 4.12% interest and now I pay about 600 a month ( taxes went up and I had PMI removed.) I owe about 58 k now. Ps it's worth anywhere from 200-225 k I have seen the comps sell for.( exact same layout/size)
Part of the problem is no one knows how to do any maintenance on their own anymore. Many $10+k fixes can be done yourself for a few hundred dollars if you have the know-how or can use youtube. I bought a 100 year old house back in 2017 for *cheap*. Since then, I've never paid more than $5k on a repair, and that $5k was my insurance deductible for replacing my sewer line all the way back to the main. Most things that i have issue with i fix myself, even if that means watching 2 or 3 UA-cam videos about it and muddling through.
Home ownership is a dream of mine. I am 38 so I have been working/investing for 22 years. Finally saved $500k -> $400k down payment and $100k backup fund. I only make $65k/ year so I needed a mortgage under $1000/month. My home has over an acre of land, climate controlled 850sft workshop, and fully built out home gym in my garage. I have 1/4 acre garden with a chicken coup. I have endless desert behind me to take the ATV out shooting anytime I want. The home is only 10 years old and passed inspection with flying colors. I have the appliances I want, the flooring, blinds, cabinets i want. The home is painted the colors I want. The landscaping I customized to exactly what I want. I'm living a dream right now. ... but I waited until I had the money to do it. A home is not an investment, it's a lifestyle. If it's not a lifestyle you want or can afford, don't do it...because it's definitely not an investment.
@Statikal Behavioral health industry. I make $60k a year. I taught myself how to say trade options a few years ago, which makes me another $10-12k a year. Compound interest is no joke. My grandfather left me $30k when he passed when I was 16. Over 22 years, I turned that into $240k after taxes just invested in various mutual and ETF funds. Up until now I lived very frugal. I always have roommates, drive old cars, never eat out, and only buy what I need.
Yes. She was living her best "luxury" life? Please. What a joke. Such an incredible waste of money just to feed her ego and to try and impress people? So empty...
@@opensourceanglers8291God forbid people actually enjoy life. Oh no. How evil they are. We should all just suffer and bow down to shit show that is life we have created for ourselves.
@opensourceanglers8291 yall read into things way too much. That wasn't what was said so why inject your own interpretation in for no reason? How is that helpful to anyone? Talking about feeding an ego 🙄
I'm sure most people "feel" rich when they're earning a good salary and not having a rent payment. And considering that's exactly what the guy who made this video also recommended you look pretty silly trying to draw conclusion off of that. Yall are not Buffett and you're definitely not Sherlock Holmes
Just had a new AC condenser done for $4200 for a 1000sqft home. (3ton I believe). Now the EPA changed the refrigerant or something this year which just increased the prices substantially.
Actually, that’s a quote I got for my air-conditioning should it ever need to be replaced. If you’re in the east coast you often have to have two ACs, one for the top floor and one for the bottom. I do not live in a mansion.
@@latsnojokelee6434 OMFG, US$22k for 2ACs!?!? I dont live in the US but i feel that is a rip off!!! Where i am living, US$5K is good enough for REPLACING 5 Samsung AC units (1pk each) 😄
It also doesn't help the options to buy are so bad. We just got off a few decades of house flipping being all the rage. People buy a house, put a few layers of paint and other bad cosmetic changes to increase it's price and resell the house. We have a flood of houses that were not built to code, did not get a permit for that expansion etc. So people go out to buy a house and get stuck with the mess left behind after several flippers bought and resold the same house. Buying new isn't much better as construction companies seem to be cutting corners and using sub standard materials left and right. You need to be an absolute expert, hiring people you trust to get something that doesn't require massive effort to fix.
And at like 27 they buy a 400,000 dollar plastic dream home instead of a reasonable “starter home” further away from town or maybe a bit small. I get it you’re making 100k a year good for you. Even back in the 60’s, houses were not this oversized and stuffed with new tech that also raises the price up a whole bunch. My dad’s first house might be apparaised at around 260-270k today on penn avenue around Minneapolis. That’s doable for most couples who are motivated. You don’t dive headfirst into a step below a McMansion lol
No matter what home you buy things break, I'm a contractor and everything that could break in my home broke in the first year, despite everything looking fine, the average person is screwed, I fixed it all myself so I didn't have to pay anyone which saved me from financial ruin, most people don't have that luxury
For years, I regretted buying my father's house because he got sick and couldn't work. I was stuck with a 30-year, $100,000 mortgage, and my salary is $22,000 a year. I started saving aggressively, and now I have enough to pay the mortgage in full. I'm not going to do it, but it's a good feeling to know you can. You have no idea how relieved I am.
We bought a fixer upper in 2018. Got it at a great price in the Bay area and we were informed of all the maintenance requirements from our inspector. Love this home and no regrets whatsoever. The enemy you know is better than the one you don't. At least we were able to budget for the repairs and upgrades ahead of time.
@@stephanies9689 I am not but that's like saying 'don't drink then' when someone complains about the price of water when this is artificially inflated by speculation and intentional lack in supply. A house is kind of a nessecity.
@basmca1 Buying a house is not a necessity, particularly not during a giant housing bubble. Rent under whatever conditions have you shelling out a reasonable percentage of your monthly income and wait. The mid 2000s looked like this too, the bubble popped then and it will pop again, be patient and use your head.
This same phenomenon happened back in 2007-2009. People were buying homes like crazy and then realized that they had to cut grass, tighten their own door knobs, deal with their own garage door springs, and when that water main to the house bursts, it was on them. And what? Lawn mower blades get dull after awhile? I was "house poor" for 17.5 years. But it is all paid up now. There are certain things I would do differently, but in the grand model, it would be done very similarly.
I’m thinking about selling my house because every time I turn around there’s something else that needs to be fixed and the trades are just gouging people. A raccoon managed to get under the house into the crawlspace and I had to pay $800 for the guy to crawl under the deck and get down there and screw in some plywood. I called a handyman, but he didnt show up. And you know you’re getting gouging, but you can’t have raccoons in your crawlspace, tearing up stuff.
@@latsnojokelee6434 There is the option of doing it yourself. It seems $800 to screw on some plywood is a very lucrative thing to do. But, in a world where there is an ever increasing number of people who do not want to take initiative, that's the price to pay. I made $200 installing blinds on 4 windows one time. It's not something I do, but I was asked and figured what the hell and tried. The screw holes were already there and I was done in about 40 minutes. I made the same changing the lower unit oil in someone's boat. Other people's boats are not something I want to get into, and I told the customer how easy it was and it could be done with nothing more than a drain bucket and a flat head screw driver. But he wanted someone else to do it. So, I charged accordingly. He was somehow happy with it. He had about 4 gallons of gas that was probably 6 months old and didn't know what to do with it. So, I stuffed a funnel down the filler neck of my car and dumped it in. He was too afraid to use it. I replaced a thermocouple in a water heater for about $100 which took me about 1 hour including the time to buy the $15 part. I bought a car for $250 2 days ago. It has a massive oil leak. I believe that the parts to fix it are going to be about $25. I have yet to verify this, as my garage is packed with another project at the moment. But if it turns out to be a big job, I haul it to the scrapper and get $300. Probably $100 for the catalytic converter. It has probably $30 in gas in it. Fixed, I expect $2,000. Fixing furnaces and air conditioners can be really cheap, depending on the problem. Sometimes it's "no parts required" and a flame rod is less than $20. So, why do I charge so much? Because I am burned out and people will not leave me alone and I am sick of people calling for help when all they need is some plywood screwed in to stop raccoons. Or, I tell them I don't have time.
I can’t imagine buying a house now at 30 just to force myself to be “house poor” for nearly 20 years and then turn 50 and think to myself “yeah. I made it” that is insane.
@@Maya-sd4jl A few things that come to mind right now are: 1.) have a bigger down payment and skip the FHA mortgage. This is not hard to do even today with a cheap apartment / renting of a bedroom, and a lot of working hours. 2.) Waited until I was a bit more economically viable in the workplace. 3.) Prioritized getting air conditioning installed so it would be easier to get a roommate for extra $$$$. 4.) Skipped college. Put that money towards the mortgage / down payment.
It strikes me - from here in southern Europe - that many North Americans are somewhat overhoused, i.e. too many square feet, complicated and expensive HVAC systems, front and back gardens. Trying to have it all, quite early in life, when they can't really afford it. It's normal that people feel financially stretched when they're living like this.
Very astute observation and very true! And most Americans just don't realize that it is inherently expensive for a single person to live in a single family house with a front and back yard and a big SUV in the driveway. Overhoused indeed.
@@frmcf you are so spot on. When I moved into my house I wanted everything all at once but my parents kept telling me it takes years to get a house how you want it. Definitely a reality you need to snap into when you are a first time home owner
No one builds "starter homes" anymore, it's all big houses in sprawling subdivisions. I think plenty of us would be happy with a smaller house but our options are a poorly built townhome subdivision with an HOA of retired busybodies, or a 1950s American Small Home if you can find one. And nothing is very affordable right now regardless of square footage.
Yeah but the lifestyle is completely different. The priorities as a society are completely different. We have no shortage of land here in the US.. there's a lot of variables your failing to take into account. I'm British- American, from Grimsby to Texas- its insane how different they are. It's not possible to compare.
19:33 If you rent you aren't responsible for the repairs....but the other way to say that is that the landlord is responsible. And if the landlord does NOT want to repair it they wont. But YOU have to live there.
You *do* have the right to issue them breach notices, and you *do* have the right to force a rent reduction or even break lease without typical obligations if the notices are ignored.
@@cynder2694it costs thousands to move tho. Deposits, utility switching costs, moving/truck rental. It’s not as easy as “just leave”. -someone who’s never lived in the same apartment for more than 2 years
@@alexquinn4792this is a bit disingenuous. A deposit isn’t a “cost” as you get the previous one back. I don’t know what you’re paying to switch utilities, but it’s not like a shutoff fee or anything. And you don’t have to pay a moving company if you’re willing to put some work in yourself. Those “thousands” could be hundreds or less pretty easily. And if you decide to spend thousands that’s fine. If you own a place and decide to move, the costs (closing costs, legal fees, safety repairs) are not optional.
@@faiora your deposit isnt guaranteed, and rarely will a landlord just give you the full thing back, so not only are you not getting your money back, you need to deposit a months rent upfront at the new place. About $150 for the truck, $200 for movers, $x for moving boxes, pet deposit, etc. sure you can move EVERYTHING, but people dont always have the resources or time or manpower to do so. My argument is that the “just move” isnt that easy like it’s no big deal.
Almost bought a condo/house last summer and I’m SO happy we ended up backing out after the inspection. Being a homeowner is no joke and renting has definitely made me realize how much more actually goes into purchasing and owning a home.
@ it just sucks that your home can get ruined from a neighbor’s negligence, I feel like they can be a good option but there are definitely a bunch of downsides to consider. I think the association fees for the place I was looking at were around $200 a month and there was no front yard, barely a backyard and no front door, only a door that led into the garage. I definitely got sucked into the whole “owning is better than renting” thing but very glad I’m renting now. My rent is about $400 more than the mortgage would have been but that doesn’t include repairs, the association fees, insurance, taxes etc
@@kelseywoopi heard somebody say that when you rent, your rent I’d the maximum you pay. But when you own, your mortgage is just the minimum. Happy to keep renting
I bet that $1800 rent is looking real nice right about now. This is precisely why I decided to keep renting. Water included, routine/free maintenance and replacement appliances. Dog park. No property taxes. I don't have to mow or water grass or keep the exterior "pretty". And as long as i write that check on the 1st, I continue living my best life. I'm also nowhere near emotionally prepared to pay for blown AC, exploded pipes or flooding. Sure, there's no equity in renting, but there's no responsibility either. Don't let regretful home owners convince you that you need to own a home to have value.
@ still got that homeowner mindset? Even after watching people say it’s their biggest regret? My dad’s crawl space flooded. $35k. You think he just had that money sitting ready? or you think on top of all his other home owner bills he now has to pay an extra $1k a month to cover the cost? Don’t fool yourself, please
💯 right here with you. ❤ Plus I don't stress about the 6-figure DEBT in my name. Would rather save and wait to buy something worth less than cash I have in the bank. srsly. whatever those numbers end up being.
I've lived in my current home for about 5 years, it is my second. Put 20K of renos in it to start, new kitchen, updated bathrooms and replaced all the carpets in the house with updated flooring. In the time I've own it, every appliance in the house broke except for the fridge, so now they're all replaced. And then the roof leaked, so that was 14K to replace. Home ownership has a lot of benefits if you buy well under what your qualified for. but I would recommend keeping 10k in savings at all times for the big maintenance jobs. They're infrequent, but they hurt if you're not prepared.
Mine too.They act like the same things break every week.Fix it one time and you're done, unlike renting where you have to pay for repairs month after month because that is what they are charging you for.And nothing is broken,at least not in your apartment.
Yeah that sounds absurd. It's important to research and get estimates/shop around. I would rather run fans and take ice baths than get scammed 22 grand
Well it depends on how many systems they had in the house, if they went with higher-end equipment (like Bosch), as well as the cost of permits and other fees that the installing company has to build in. I agree it seems pretty steep but I’d believe it especially if they’re in a higher cost of living area too
I bought a century home two years ago. Inspector didn't find anything but I had $47,000 in emergency structural repairs needed... One more year and I'll be back to having savings. It's worth it psychologically but not worth the opportunity cost to buy a house without a lot of cash on hand.
The one issue with renting is retirement age, unless you invested aggressively you wont be able to pay rent costs 30 - 40 years in the future, plus moving every 1 to 5 years seems like a non issue in your 20's through 30's but imagine moving every 2 years in your 60's or 70's and what if your health takes a bad turn you will be happy you own a paid off home when you are 70. Another issue is if you got a 2-4 % loan just stick with it because that rate is not coming back for a long time. As far as maintenance costs go , either learn to fix it yourself or commit to putting 10K away every year for what ifs and if nothing expensive breaks for a couple years invest half of that fund.
THIS ^^^^^ Exactly why I wanted to but even if it’s a bit of a struggle right now. Seeing my parents going through hardship in their later life but feeling safe that they own their home and it’s only bills and food we has to worry about was far less stressful than adding rent into the mix
This is why I wanted to buy. I could no longer deal with landlords jacking rents or asking us to move every handful of years. Housing prices never seem to stop going up. If I don't buy in and pay off the mortgage my family will be seriously screwed when I'm older.
“Moving every 2 years” Do Americans just not have any tenant rights? Renting the same place for a long time should be a way to guarantee a low rent in retirement in a properly regulated market. This would be because rent increases are capped, and landlords can not easily evict tenants or force them to move.
@@matKilla9801 Tenant rights whats that this is America, there are rent caps but the rent will be raised every year to the maximum rate possible. A few places have rent control but that is rare, so once the rent is unaffordable you move or take on 1 or more roommates.
A bit of advice for all of my renters out there, do not sign leases in the spring and summer months. Make sure your leases are between October and March. This is when rent is at its lowest and if they will be raising your rent on your next lease it will bea lower increase. I have always set my leases to end in January and either my rent has not changed at all or it’s only went up about $30-$50.
The reason why buying a house is almost always the right choice is only because almost everyone is very bad with money and future planning. If you buy a house its a very easy concept, and given enough time they almost always go up. (Not saying you will double in only a couple years as some people have had in the wild ride we have had recently, but over 20+ years realestate always trends upwards.) Since owning a house means you are making significant monthly payments towards an appreciating asset, you are being FORCED to save. Then when you reach retirement age you can sell your home, downsize and have money to retire on. Now, if you plan well, properly put money away into various investment mechanisms, dont rack up extreme debt, you can ABSOLUTELY do as well as or probably better than you would buying a house. But people do NOT do this. The numbers are something like fewer than 15% of adults have more than $100k saved up for retirement, approximately 65% of households own their own home, and the average home equity is about 300k. (Just casually grabbing the numbers from various banking institutes so just broad strokes averages here.) So yea, can you get by without buying a home? Of course, but 85% of adults who convince themselves they will do better without owning a home are lying to themselves.
What people who think about never buying a home do not realize is you will always have to pay rent, even when you retire and no longer work. At least with a home, hopefully you are able to pay it off before then. You will still have property taxes and utilities, but it's cheaper than monthly rent (which can keep increasing even when your retirement or social security does not).
Move to a city that offers property tax exemptions for the elderly and you don’t even have to pay property taxes! My 87-year-old mother-in-law bought her modest home in 1973 for only $ 45,000. It's now worth $410,000 and she receives a full property tax exemption. So only has to pay for utilities and any maintenance that pops up. Therefore, she can live fine off of social security and a small pension. If she and her deceased husband had always tented instead of buying their home, she would now be struggling to pay high rents here.
I mean she went from not paying rent, food, or other basic necessities to paying a mortgage. If she was renting instead of living at home, she probably would not have had as much sticker shock from the house
So glad I bought my house in 2016. My mortgage payment per month is just $982 and I'm way ahead on paying it off. I couldn't imagine buying right now with the interest rates and inflated values for homes. I would never encourage anyone to purchase if you can't afford it. I also specifically selected under what I was approved for, I could purchase anything up to 200k, I specifically told the bank and my relator that I would not buy a home for over 150k. In Iowa, in the Midwest, that was still a lot of house you can buy for 150k at least in 2016 it was
I bought my first house in 2020 for $130k at $800 a month... 4 years later I'm now paying $940 a month, but still better than the alternatives out there. And the value has more than doubled since fixing up some things, but I wouldn't sell it because there would be nowhere to go.
Single woman homeowner here, I'm very lucky to be in a reasonable cost of living area with a starter home with no major repairs in 7 years of living here. Its a classic rowhome that was built to last in the early 20th century. I might never leave.
I thankfully don't regret buying my home. It's an older fixer upper, and I have experience working on homes. However, the thing that helped us the most was the insane amount of research and planning I did before we got a mortgage.
I’m finally at a job where I might be able to afford a house one day and I can’t wait to buy a cheap fixer upper. I have amassed a mountain of tools and over 20 years experience in home building and renovations. It’s sad because I could easily fix issues like the first girl for literally the cost of materials
12:53 as a civil structural engineer it drops my jaw to see americans build their houses OUT OF PLYWOOD!!! In my country it is mandatory to build with reinforced concrete and we have regulations and rules for the design and load bearing. Once your architectural floor plan and overall design is set you need to hand it to a civil engineer and they have to calculate the static project whilst the electrical engineer plans the electrical project. Once the architectural - static - electrical projects are done and signed by the engineers you have to submit it to the municipality where the government's set of engineers cross check your project and hand it back to you with a rejection if you make any calculation mistakes. If everything is OK you get the building approval. In US I see lots of hurricanes and houses are made out of plywood... and reinforced concrete cost ratio in my country is done by USD ( so the cost of materials are pretty same as US - only worker wages might differ) so paying for plywood is crazy... One strong wind or small earthquake or a fire and your life and savings are at huge risk!
This also blew my mind when I moved to the US, but there is good reason a lot of homes are wood construction and that's earthquakes. A lot of US homes are on fault lines and concrete/brick would take a lot of damage.
@@mrdiggie3321 In my country (like japan) we get 6-7-8 richter scale earthquakes and we are on active tectonic plate lines ... when I'm at the technical office and start a static project what I do is straight up checking the earthquake regulations for my design & including the earthquake load... The regulations in my country (TS, think of EUROCODE) for reinforced concrete structures are heavily earthquake focused. Once you follow the regulations and include your earthquake load your 10 story building is earthquake safe. I studied also japan's regulations aswell. Both countries use multi story apartment buildings in their urban plannings instead of 1-2 story (easy to calculate) buildings like US. Hurricane + earthquakes = reinforced concrete. Yes the "plywood" is not heavy therefore cant absorb the earthquake - seismic energy but its CRAP... constant upkeep, mold, bugs, hurricane damage, fire damage, earthquake damage... not worth it...
@@bettysmith4527Where on earth do people get this idea that concrete cracks over time? Did Plywood Builders tell you? Because if it does, how do they justify not building skyscrapers out of wood? 🤷
How you gonna learn to fix your house if you’re working 40-60 hrs/wk and live alone?? Or married with kids working full time ?? Please don’t be fooled by the DIY content you see online… those are very wealthy people. Most people don’t have the time or resources to learn a new skill on the go and potentially make things worse.
@ there’s lots of people that can learn something simple like patching a hole in the wall, painting a room,changing a door handle, replacing a faucet etc. I work 40 plus hours, 3 kids and other activities. I rarely pay someone to fix simple things around the house.It doesn’t take long. No one says you have to be a full blown handyman. Learning the basics can help big time.
@@theinvisiblewoman5709I agree that the DIY craze on UA-cam has gotten outrageous but it is possible to learn simple things. I learned how to unclog my sink when it backed up. I also learned how to replace a part inside my toilet when it starters dripping into the bowl.
We bought a place that had been dodgy reno'd to make it look modern. They tiled over existing tiles on a 2 story balcony and painted over wood rot. I only discovered the damage by chance and it cost 20K to replace. Could have collapsed at any time, disgusting.
Insurance professional here. Homeowner’s insurance is NOT for maintenance. It’s for indemnifying you against losses related to covered perils (which vary based on the policy but include things like weather, fire, water damage etc). Anyone who thinks they can or should file claims on expensive maintenance related items (like replacing broken AC) will get declined, and they’ll think their insurance is a scam when they simply didn’t understand the coverage and intent of the policy. Read your policies.
I work in the mobile home industry. A regular roof should last 10-20 years. Yesterday I did some painting in a 5 year old mobile home that was getting a new roof because it was already leaking. I believe it was a Clayton but they are all the same. They are built like ikea furniture and sold to the most desperate people
Bought a simple well built older brick house 26 years ago in my early 20’s. Now worth 3.5 times its purchase price and nearly paid off. Its paid for its own major repairs and upgrades with its own equity over the years. Dont be afraid of a mortgage,but live within your means and for god sakes dont waste money on ridiculous car loans,and chasing trends. Retired at 47,live simple.
@ True,alot has changed. Nobody has the patience to save for a down payment or an emergency fund anymore. Doom spending,and door dashing every meal will keep the masses poor. Sacrifice sucks,but not everything is as fast as amazon delivery.
What kind of money do you spend on insurance and property taxes . Other monthly expenses like utilities. Always wondered how much it would cost to live in a payed off home
Lack of stable relationship is a big issue for home owners for sure. Even some of the smallest single bedroom homes are a bit much to take care of by yourself if you work full time. Especially if you live in a HOA that demands you keep up on all the yard work and such. And if you can't do it yourself your spending more money to have it taken care of. Be it mowing the lawn, cleaning the gutters or what ever has to be done.
5:13 What you qualify for (aka the loan amount a bank wants to sell you), and what you can comfortably afford - are ALWAYS, not sometimes, two different things.
Thats very different in other countries...in Germany for example. You need to lay open everything you earn, your costs, and everything you owe. Then they make a calculation, where generous amount get deducted. Than they make a "security-deduction"....The remaining amount is what you can pay. The calculate up...what is the maximum amount you can pay of. Then they check the value of the property you want to buy...compare with the selling price. If the selling price is higher...no financing. If its equal or lower, they deduct 30% of that price....that is the maximum you get financed. Is it more than what was calculated as pay-off ability...no financing. They are actually quite severe here in Germany. The result: many people cannot buy a house in the first place, but those who do usually make it.
Yes! I was thinking abt how most credit cards from these same major banks bet on ppl not being able to pay off their balances. The credit limit is designed in hopes that ppl spend too much and then pay more in interest later. I can't help but imagine the banks are applying similar tactics to mortgages.
@kirstin6167 most people don't make money on a home . Including cost to fix, property tax ,interest on a 30 year loan u will pay more on interest than the laon amount . 😂😂
I'm married.150k Qualified me for $660k on my own. My wife makes 100k. Even with that I was scared crapless of going over $450 on a mortgage but we kept getting blown out on offers every single time so after 9 months we had no choice but to go up to $535k. It's a beautiful home. My wife and kids are happy. We have been here a few years. The house has gone up considerately and we still have money for vacations and 2 car notes and the such. I'm glad I was afraid of taking what they qualified me for. I do believe we would've been screwed but I do still have that "what if" always on the back of my head. Owning a home is an amazing blessing that comes with stress. Be very careful. This guy's comment on 30% of net is super important
I'm just thankful that I bought my home in early 2021 for $112k at 3% interest rate. If I were a buyer now, I wouldn't be able to afford the same house given its current value and ridiculous interest rates.
I live in florida and got in right on time before all this stuff happened. We pay 1100 a month with everything, our home value went up over 100k in a year and we live in a nice subdivision with great neighbors that all take care of their property's. I see new neighbors moving in and can't believe the cost of the homes with interest. I think, how in the world are they affording this, and worry about our kids futures.
I bought my house 3 years ago. But I waited and found the right property for me as I’m a full time mechanic. It has great space for me to work and I built a shop on the property this past month! . The last 3 years I worked on the rv driveway and earned a lot of money. It’s a blessing if you do your homework and buy something that suits your needs and will be advantageous to your situation!!
When buying a house as a single person, you have to buy a house much less than what the bank says you can afford. Don’t even look at a house in that range. And don’t bring credit card balances into homeownership.
Even as a couple, always buy a house significantly cheaper than what the bank says you can afford. The banks will jack up the total mortgage offering if there is a dual income. Basically, you’d want to buy low enough so that even just 1 person is able to pay for the base mortgage cost, and then the second person can double up the payment to pay it off early. That way, even if someone loses their job, you still won’t struggle.
Its messed up either path you take - friends that have houses have maintance issues or taxes/insurance as you said. Friends that are still in apartments (and I live in an area where they are building thousands of new homes and new apartments) wont let you rent for longer than a year, and the rent goes up by at least $300 every single year. Its just a crapshoot regardless.
As a home owner I’ve diversified into other sectors that have been less chaotic. Getting into trading has been rather rewarding to me and I've learned that getting a good return is very much attainable if you know your way around it. I've watched my net worth grow exponentially these past months.
Luck is way off the picture. Jonas Herman, a licensed fiduciary is the brain behind my success. I've gotten into a plethora of assets with $32k spread across stocks (options and futures) for the short term and Roth IRA, index funds, cryptocurrency and ETFs, for the long term. Now with over 291k in roi, I sit back and just reinvest at intervals while I handle my other businesses.
While it may sound enticing, it is important to understand that stocks, like a fine wine or a Monet, has no standardized value. You look all good on the outside, while you wait till almost death to enjoy your wealth which presents an enormous economic(uncertainty) risk.
Because so many people overpaid for homes even while loan rates were low, I believe there will be a housing catastrophe because these people are in debt. If housing costs continue to drop and, for whatever reason, they can no longer afford the property and it goes into foreclosure, they have no equity since, even if they try to sell, they will not make any money. I believe that many individuals will experience this, especially given the impending mass layoffs and rapidly rising living expenses.
At this point, its only reasonable for investors to diversify into other sectors, the stock market, to balance out their real estate holdings. Even the worst recessions offer valuable buying opportunities in the markets if you're cautious. Volatility can also result in excellent short-term buy and sell opportunities. Please keep in mind that this is not personalized financial advice. However, it's worth noting that holding cash may not be the best strategy in the current market.
You're correct! With the help of an expert, I was able to diversify my 450K portfolio across markets and produce slightly more than $830K in net profit from high dividend yield equities, ETFs, and bonds.
The area I live in ended up on one of those best places to live lists and all of a sudden, we had people moving from all over the country, buying the older houses and shut down factories, renovating them and charging insane prices for them. A few years later, most of those places haven’t sold and we're finally seeing rent and home costs go down. Most of the houses I watched stayed on the market for years, out of nowhere, house prices went down en masse and these homes were now getting bought left and right
The first woman describes living rich and blowing all her money because she had no bills. That's the issue. Purchasing and paying for a house is not easy regardless. Don't blow your nest egg or emergency fund to buy a house, because now you don't have that to fall back on. A house is BOTH an investment and a liability. You need to know your own numbers, and stop living on the razors edge. Me and my partner are not married, we INTENTIONALLY applied in only one name. Our loan approval was based on a single income, we got approved for $250k. We bought for $100k. Is it a small house? Yes. Is it an old house? Yes. Are we going to pay it off in 10 rather than 40 years? Yes. Are we going to avoid paying $200k on a $100k house? Yes.
Buying a house is likely the most important purchase you will make in your life. Before buying, invest in an architect, plumber, and electrician, as well as a thorough inspection of the house, to avoid unwanted surprises. When you retire, you will receive less than 50% of what you earn now. You will likely have an illness and extra expenses. Will you still be paying rent at 70 years old?
5:08 I’m so glad that this was mentioned. I bought my house in 2021, when I was 30yo. The bank pre-approved me for an amount that to me was way too much. The difference between what I was pre-approved for and what I was expecting was $300K. I told my realtor the amount I was pre-approved for but that I wanted something less expensive. She did talk to me about looking at bigger, nicer, newer houses but I said no. I knew what was realistic for me. I ended up with a 1930s craftsman that needed work, but it was the least expensive house in the nicest neighborhood. A few years later, and I am able to deal with things like my AC needing repairs and the water tank needing replaced without it wrecking my finances. Just because you’re pre-approved to go up to a certain amount doesn’t mean that you can actually afford that amount when life happens. For clarity: I was pre-approved for 450K but my budget was 150-180K. I ended up with a house listed for 150K and put about 30K of updates into it over time (new kitchen, floors, etc). I’m still updating the house room by room, but I don’t regret buying.
When I bought my house I came in with a monthly payment I was comfortable with. The houses that I saw matched that payment. Did I want more yes, but vacations are important to me.
Excellent point. I'm in the process of buying a house that is less than 350k of what I'm approved for. I still want to enjoy my life. I'm not grinding all week to put 90 percent of my money in my house. Why? To impress 5 members of my extended family that I see a few times a year? Makes no sense
sounds like me. I have my reasons. I have to pay lawn services and landscapers if I have a mortgage, but I never have to think about it if I rent as long as I don't rent a house. 😂
Here’s what pisses me off about buying a house - realtors who insist on showing you houses that are at the high end of your qualification or even above it so you can “see what could be”, all because they are greedy.
I just bought a house for the first time (haven't even closed on it yet) and I'm so anxious about being able to afford all the extra expenses BUT it passed the inspection with flying colors and I bought within my means. I plan to work my ass off to pay down the principal and save for maintenance. I feel like I'm prepared to take this on, but it's just scary not knowing what might happen. I have a pretty low income so I bought a smaller house with less bells and whistles but repairs cost the same for me as they do for higher earners. Just hurts me more. Hoping it all works out
You could probably turn one of the rooms into a unit and rent it out, that’s what this UA-camr named Elijah Ray is doing 🤷♀️ looks like it’s going well
As someone who bought a house that makes half of 100k, in the beginning you should save a sizable amount for repairs and do as many repairs as you can by yourself and be patient with yourself. I bought an old house though so circumstances may be different
This happened to me. I tried so hard to make all of the right decisions. I saved up for a large down payment, made sure the mortgage was safely below 30% of my income, found the best inspector in the area, and I STILL got screwed. Within six months, we had $70k in unexpected repairs - pipes broke, furnace blew, water heater needed replaced, roof leaked, etc etc.. The inspection missed tons of things that would have kept me from purchasing had I known. In one year, I went from having six figures in the bank to now being 40k in debt.. and every time I start gaining ground, something else breaks. Things are looking bleak.
I realized later how lucky I got in 2020 with my house compared to some of my friends who bought later. I did manage to find my ‘dream home’ for half of what I qualified for because it’s over 100 years old and needs a ton of work. I budgeted to ‘pay’ double my mortgage and fix it up as I went living in it to make it how I want but that’s something I enjoy doing. After moving every 6 months or so for 15 years and even now traveling many days a month for work - I just want to be able to come home to my own couch and garden to drink tea and put some work into something to make it better. If you don’t like doing upkeep for your free time and like to travel- rent!
100% my thought. She's bragging about being rich when essentially someone else is paying your rent. No crap you could afford to do and buy things all of your income was disposable. It does sound like she didn't get a home inspection. A lot of people see it as unnecessary and a waste of money. Then in some places you do have to skip it in order to get the house. The seller will go to someone else willing to skip the inspection. That's a red flag right there. Then she also bought a townhome by the sounds of it. I am not a fan of the idea of those. To me The allure I can see is that they can be a bit more luxurious looking for cheaper and a HOA takes care of a lot of the maintenance. To me it just doesn't seem like you actually own the thing and you have to hope your neighbors aren't from hell.
It's kind of like the 'start your own business' grift I see... These clowns don't know that you don't make a profit for the first 5 years and you have like a 70% chance of failure.
I have owned dozens of homes and my cut off used to built prior to 70s .lately I started stretching that to1980 . Many more problems in those homes. I would never buy homes built these days unless it for flip immediately.
It makes me laugh when half the people who bought are like “OH MAN I WAS POOR AS F*CK FOR 25 YEARS BUT I FINALLY GOT MY HOUSE PAID OFF” and they’re creeping up on 60 years old. That’s no way to live.
We did the same thing! Paid off our home 16 years early, sold it for more than twice what we purchased it for and now live in a luxury apt complex in SC. Happy is not the word!!
Not saying you, but New Yorkers have lowered North Carolinian culture and moral standards over time. I love upstate New York it’s beautiful but it’s the other parts of the state that people come down to nc and have created a different vibe. For sure.
I disagree. What’s above your means now will not be in a few years if you progress like an adult. A home is an investment stay away from buying new cars
As a German, I’m always so fascinated by American houses. All the houses are a mix of wooden frames and plywood. It’s certainly cheaper than here in Germany and allows for more creativity in building, but somehow, I find this construction method rather bad. And yes, I know that Americans tend to move frequently, but the energy costs (heating and air conditioning) are still relatively high. I believe that, in the long run, a more efficient construction method would be cheaper.
Energy cost is 11 per kw/h where I live. A few years ago it was 9 per kw/h. We have these things called nuclear power plants..... FWIW I do really like the German style shutters. Wish I had some.
Long run is never factored in the US. ITs always short term profit. So build as cheaply as possible and sell for as much as possible. Everyone knows a better constructed house would last longer, have less issues, etc. But this also takes longer, and costs much more. The home prices are already at the limit of what the typical american can afford. Any higher, then its no longer a feasible idea. And these companies certainly aren't going to make less profit.
You probably will not want to mention my situation on your show. I really enjoy listening to you especially when you mentioned you moved to NC from NJ. I also was raised in NJ. I rented a house in Medford before buying a house here in NC in 2007. (that's right, just months before the crash) We bought a house in Goldsboro with a 30 yr mortgage, then refinanced to a fifteen year. I paid it off a couple of years ago and because I live in NC, my taxes are $1,700 a year. I know that 17 years ago is another time and space from now, but I thought I direct this to you because you could still do this in NC.
I’ve lived in nc for the last 10 yrs. Husband bought our house back then. I drive an hour to work, which was common for my field at the time. The farther out houses are/were WAY cheaper. Now all the younger folks (wow I sound old) complain they will never be able to afford a house. They pay $$$ to rent in the city w a 15 min commute. They want a 3 bedroom house with a nice yard and a 15 minute commute. People don’t know how to sacrifice. Those that do reap the rewards
@@Lauren-yq3ds made me feel better about my 45 mins commute. Bought a home in rural area in VA with 2 acres of land and a large 3k sqft home brand new with 4 br and 3.5 ba.
People need to understand that literally everything requires maintenance. You buy a car expecting to do repairs and preventative maintenance. Houses are the same, appliances are the same, yards are the same, our societal infrastructure is the same, even relationships with others are the same. I budget for maintenance and repairs like it's a bill. Actually budget for scheduled maintenance and set aside a little each paycheck for an emergency fund to cover repairs. Got slammed with a new water heater, new AC and air handler, and new transfer case on the truck. No problem. It was covered and I'm building it back up for the next inevitable failure.
Long story short, 2 sump pumps, live near river, one started on fire, race against clock before basement floods. $500 gone in hours right there. Apartment people will never understand. A house is W O R K.
@@michaelgibbs309 yea that first girl sounded completely in over her head cause she thought buying a house was like buying a bag. Literally anything could go wrong and you have to plan for that, too bad you bought a bunch of ‘luxury goods’ at mommy and daddy’s instead of saving.
I lucked out and bought a fourplex with an FHA at $185k back in 2020 at an APR of 2.25% and brought up the rents to $650/each after I made a bunch of mostly cosmetic repairs and simple functional fixes that the previous owners couldn’t be bothered to fix. I’m cash flowing about $1k/month and the tenants are paying off my mortgage. Mortgages are great if you know what you’re doing but buying a home that you barely qualify for is gonna keep you poor for the bext 30 yrs, especially in this economy
The first woman is a perfect representation of the vast majority of young people. This is why I told all 3 of my children they would pay rent upon turning 18. I also had them pay for half of their first car. They were then responsible for the insurance, gas and repairs (parts only I did the work for them) and they had to my for their phone bill. They all chose to move out at 18. I was not going to provide a luxury life to my adult kids. I educated all of them about finances and the value of hard work.
Renting may be good if your younger but not when your older. We could have taken the proceeds from when we sold our home and used that to buy a very very nice home. We chose to get a home we could pay all cash for. Not having any debt whatsoever at our age is a financial necessity. The average price for a studio apartment in this part of Colorado is over a million. Consequently everything we need to do like plumbing, electrical repairs cost significantly more than in other areas but with no mortgage it's doable. Thankfully insurance is lower. Our combined house and auto is $1400 annually. Property taxes are higher but as valuations have more doubled since 2021 it's not such a bitter pill to swallow. Point being in most cases it's better to think long term. Be house poor when your younger and bringing in a weekly paycheck and be house 'rich' when your older and have very limited financial resources. 25% of the homeless in this country are elderly. Just something to consider.
What possible point is there to having equity in old age? you still have to remove the roof over your head to access the liquidity to live. And you still have to live somewhere, and that cost is not zero. More than likely, every time you move you reset that inflation adjusted cost baseline, so you're not saving anything. Primary residences as "investment" is an oxymoron. The only way to make that math make sense is to downsize, but downsizing isn't cut and dry. In most jurisdictions you can't purchase a small home for less, at best you're eating all the equity to buy a crap box, which negates the incentive to do the downsizing. Moving to a lower tax state often comes with other tradeoffs too, like terrible weather and politics. It's just not an apples to apples trade. To wit, if the downsize was soooo great, you would have made it your first home in the first place. most downsizers are just not making that argument in good faith/ there's also a non-zero opportunity cost to being house poor in young age. Your life is definitionally limited to going to work to pay for the house debt and maintenance. What a wretched and limiting experience.
This is SO true of our predatory, capitalistic society here in the US. My dad completely remodeled my childhood home and did all of the plumbing, construction, masonry, and electrical himself in over 20+ years of quality labor. It really amazes me now considering the challenges of home ownership now. People seem to view buying a home these days also as some kind of status symbol that separates them from “renters”. As you clearly point out, it’s not always the best decision.
There are plenty of nice homes under $250,000 if you move to a smaller, but still nice, city. With so many people working 100% online, they don’t have to live where their work is any more.
This video actually made me pretty relieved with my house purchase, I bought a condominium in an 1890 Victorian building that has been maintained by the association. NONE of these issues have come up, and the building is rock solid and well-insulated. Most things that need maintenance or that would be expensive to fix are covered by everyone who lives here and not just me. There IS a lot of shoddy flip-work in my unit in the form of 'updates' but they are mostly cosmetic and I plan to rip them out and replace them with better versions (doors, cabinets, etc). Also I paid less than 240.
So many people also forget to factor in closing costs. If closing costs are 10k and you only own the house for 5 years, that’s over $100 a month you should consider as part of the costs.
If you're gonna buy a house and have never seen the inside of a hardware store, you either need to buy way under your limit or start learning how to fix shit. My home is 100 years old and i was doing construction with my father at 13 and theres still things like adding piers to lift my home 5in thats expensive that ive had to do ecen after sub contracting out was about $50k that most other prices for that work was closer to 90k
I grew up in the 1960s/70s and single people did not buy houses. Married couples starting families with stable employment really stretched themselves financially to buy a house. Children still living with their parents and unsure of career plans did not buy houses. In the 1980s and 90s condos got introduced here and sold to young single people. Now most rentals are privately owned condos so rent gets jacked up to meet the mortgage payments.
Lots of single living nowadays with less families for sure
20 днів тому+9
my parents house is over 230 years old, of corse it needed things like a new roof, new plumbing and stuff at some point, but at least its not falling apart because its build out of massive field rocks and clay. I can't imagine living in a house built out of wood sticks and toilet paper.
I live in a very high cost area (Brooklyn, NY) a studio apartment no bedroom goes for almost half a million!! Yes! That much n and I can’t move because my mother is dependent on me moving with her to an area that requires driving her around is a big no for me because she refuses to learn how to! i wont loose my last bit of independence from her !
My dad made good money buying fixer uppers and renting some and reselling others but he did it very slowly. We also had a weekend cabin just outside of Miami in the Everglades that we would enjoy for years every weekend. He taught me to try never to borrow or charge unless it was an emergency. Also always buy under your means and be sure you have some savings as a cushion when something breaks or a tenant doesn’t pay, etc. As a kid we went to one of my dad’s employees home and it was huge and nicer than ours. I asked my dad later why our house wasn’t as nice. lol. He said because he would rather enjoy vacations and doing things as a family rather than be house poor. That was a new concept I never forgot as a kid. Too many people feel they have to buy too big a home and it must look like a model home with all the bells and whistles even when they can barely afford it, if at all.
I have never bought a home up to what I qualified for. I have always bought lower but comfortable. And it helped me survive the prior market collapse and Covid, etc. Also I try to stay debt free other than a small mortgage, if necessary.
Bouncing on your comment about “buying isn’t what it is cracked up to be and may be better to rent”: I worked in real estate and from experience, buying a home isn’t only about monthly payment but how to secure your older years. Rent is going up, house prices too. IF you can buy a house now and pay it off before retirement, do it. You may not be able to pay rent forever since you won’t be working and you may depend on social security. Buy to Airbnb is greed. Buy to not pay rent isn’t a good enough reason. Or use the equity for your medical bills. Whatever it is, buy a house with security in mind. You WILL be vulnerable in your older years.
Stock Market “Investing” is Out of Control in 2024...
ua-cam.com/video/VMrhJ4U120U/v-deo.html
If people would stop over consuming and live within their means, they wouldn't be struggling, and cars and houses would have insane prices.
Dr Horton homes are even worst than Clayton. Trust me.
😅😅😅
Well most people are not soft men like you
People need to buy a house to turn into a home and stop looking at a house as an investment
I hate when people say “the value of my home has doubled so I’m doing good” this also means if you sell your home, the next home you buy will be double the cost it would have previously been so even matching Interest rates still results in a loss for your finances
Unless you move to an area where home prices haven’t appreciated nearly as much. It would typically be a lot harder to find a decent job in those areas, so it probably only works for people who work remotely.
Change your train of thought. When your house doubles, you can take out the equity and buy another property. To either live in or rent out.
@@clutchfan3152good idea ......on paper. Renting to people brings problems....you gotta be built for that life.
@kevingrant4491 preach!!
My friends parents thought similarly with getting him a apartment for college. Then subletting rooms to pay off that mortgage.
But there is issues with noise complaints, damage, and things just breaking. While i thinj finance wise it worked great. I know friendships and the family relationships got complex.
@@kevingrant4491thats why you make the rent high and dont let just anyone in. Thats what they’ve been doing anyway
As a licensed plumber I can testify to a fact that new home are built too fast, too cheap and every single corner that could be cut was in fact cut!!! I go to new homes that are 2,3 or 4 years old and their plumbing needs thousands of dollars worth of repairs
I rented a flat where the previous owner rerouted the plumbing from one room to the opposite end of the flat - the resulting spaghetti piping was absolute madness. Some people spend good money to devalue their home even if the building contractor did a decent job 🤷
That's exactly my house. New house and the plumber is always at my house.
Cookie cutter homes
@@mairacha3190 the worst I’ve seen was a 14 month old house whose foundation was settling so much that it broke sewer pipes under the house! His builder told him his house had one year warranty and he was approximately two months past it. I have the homeowner a quote for $50K to dig up tunnels under his house and install new sewer pipes. He declined and said he would sue the builder. This was two years ago. I drive by his house daily since it’s on my way to work and no repairs were done and the house has been sitting vacant for over a year and it’s not on sale
@@mairacha3190 The worst I’ve seen in my years in plumbing happened about two years ago. I was called to a 14 month old house because they had whole home sewer stoppage. To make a long story short………….house foundation was settling so much that PVC sewer pipe under the house broke apart. I told the homeowner the only way that could be repaired is if tunnels are dug under the house and new pipes were installed. He said that house was under warranty and that builder would fix it. I got a call two days later from the homeowner who told me that builder has 1 year warranty on the house and he was approximately 2 months out of warranty and therefore the house was no longer builder’s responsibility. Last thing I know is that homeowner took builder to the court. I drive by that house several times a week and I haven’t seen any repairs being done. Approximately year and a half ago the people moved out and house has been sitting vacant since then.
I’m in Ohio and the housing market here over the last 7-8 years is unlike anything I’ve ever seen. Homes that were bought for $130K in 2015 are now being sold for $590k. I’m talking about tiny, disgusting, poorly built 950 square foot shit boxes in quiet mediocre neighbourhoods. Then you’ve got Better, average sized homes in nicer neighbourhoods that were $300K+ 10 years ago selling for $750k+ now. Wild times.
Home prices will come down eventually, but for now; get your money (as much as you can) out of the housing market and get into the financial markets or gold. The new mortgage rates are crazy, add to that the recession and the fact that mortgage guidelines are getting more difficult.
Home prices will need to fall by a minimum of 40% (more like 50%) before the market normalizes.If you are in cross roads or need sincere advise on the best moves to take now its best you seek an independent advisor who knows about the financial markets.
Sophie Lynn Carrabus is the licensed advisor I use and i'm just putting this out here because you asked. You can Just search the name. You’d find necessary details to work with to set up an appointment.
Thanks for sharing, I just looked her up on the web and I would say she really has an impressive background in investing. I will write her an e-mail shortly.
My grandfather bought a house in Brooklyn NY for 60k in 1980 it’s not a luxury place by any means . It’s currently valued at like 1.8 mil . It’s insane
Mortgage rates are currently at an all time high since 2000(23 years) and based on statistics on inflation, we might see that number skyrocket further, a 30-year fixed rate was only 5% this time last year, so do I just keep waiting for a housing crash before buying or redirect my focus to the equity market
The stock market is no different, to maintain profit you need to have some in-depth knowledge on the market. I mostly just buy and hold stocks, but my portfolio has been mostly in the red for quite awhile now. Unfortunately to be able to make good gains, you’ll need to be consistent and restructure your portfolio frequently.
In my opinion, it was much easier investing back in the 80s but it’s a lot trickier now, those making consistent profit in these times are professionals reason I’ve been using an advisor for the past 5 years to consistently build my portfolio in preparations for retirement.
My partner’s been considering going the same route, could you share more info please on the advisor that guides you
Annette Christine Conte is the licensed advisor I use and i'm just putting this out here because you asked. You can Just search the name. You’d find necessary details to work with to set up an appointment.
@@jeffDwyer1 Thank you for the lead. I searched her up, and I have sent her an email. I hope she gets back to me soon.
My dad’s a construction guy who did a huge renovation on his home. It was too much work so he had to hire some guys, but if he could, he would do it all himself. I don’t know how many times he had to stop these guys and correct whatever they were doing or catch them using the wrong materials. He broke out old textbooks and did the pluming himself to protect from any future headache. The quality of construction has gone into the trash and the only way to know about it is to be a professional in the field. Gone are the days where you can rely on people who sell themselves as “the best”.
As a trades guy I automatically assume their garbage if they tout themselves up any more than "I'll get the job done"
My work rents from another company and witnessed that other company hire a new fire system contractor that low bid their tender and then fleeced the company selling them multiple $20,000 valves that "needed to be replaced" when they could have been repaired for maybe $1500
The quality in healthcare has changed as well.
And it’s going to keep getting worse if the pros retire with not enough new people coming in to learn from them.
@@amazinglats6020 naaah the new people wanna learn "business" aka get a job and outsource it to a 3rd world country for 1/4 the pay and collect the difference.
I will 100% disagree with you on that. You just perceive it to be worse when it in facts has improved significantly @@Jennifer-fj4wf
I was VERY selective. Ended up buying a 1500 sq ft duplex for 209k. I pay 1680/month and rent out one side for 1300/month. This place is not flashy but I'm doing great financially
I wish that were possible around me. But the typical mortgage payment for a duplex around me is about 5K a month, while typical rent is 3K for it. And I'm not even including any other costs to. So it was always a "rent is better" for me. Sigh.
you're literally part of the problem, you're doing great financially because you're abusing people who can't afford down payments - because of people like you
@@rebeltheharem7028gotta save up and do research into a new location man small towns have the best rent/wage ratio.
What year did you buy?
@@cutthechicken194 2 weeks ago haha
Always, always, ALWAYS buy below your means! What you can qualify for and what you can afford are VASTLY different!! It applies to cars as it applies to houses.
Below means high crime neighbors 😒 for alot of us
Never ever borrow money for a car. That's insanity.
I feel its a better option to move to a different state that has cheaper houses but relatively safe area, than to buy a cheaper home in your current higher cost of living area but more crime
@@mibox8302not everyone’s job is transferable to rural and small towns. And not everyone is safe or welcomed to live in rural and small towns.
The solution is regulating corporations buying homes and land for residential use.
@@pm2886 It worked out fine for us.. It depends.
My house is from 1920 and it’s a rock. Old wood beams with tight rings, real bricks, copper pipes. New construction is garbage.
Ever read the three little piggies?..why would an old wood house be better then a reebar strengthened new build..I have been direct.y hit by one hurricane..I mean it went right down my street..I lost two tiles..two...now look at the empty spaces that used to contain wooden houses
New houses are better copper pipes are worse the new rubber pipes are better as well as pbc
I have an old house as well
@@BK-pc3einew houses are built cheaply. An old house with updated electric and plumbing is the way to go IMO
People have lost craft mastery
My mortgage broker said the top of my budget with my income would be $410,000. I went out and bought one for $140,000.
What did you buy at 140K? A piece of land?
Clever boy/girl
@@Dreadreming no, I bought a small bungalow 20 minutes outside the city in the trees. It’s very clean and quiet.
I saw a brand new construction home in San Antonio for $160k this year. It sold in like a week. They exist lol.
@@Dreadremingpeople like you are the ultimate f****** assholes in society
Housing should have never become an investment vehicle.
Capitalism 😀👍🏼
@@michaelm4597 great in other things. Downright horrid in others.
@@michaelm4597 No, the Federal Reserve. Educate yourself before spouting off. What we have is the opposite of capitalism.
@@TheBenjamminwhen we have private equity firms buying up ~44% of houses instead of regular folks, that’s a capitalism problem.
And that’s why median homes are 400k+ for normal houses.
there's plenty of homes where I live for $250,000, but they need another $350,000 in repairs. What a deal!!!
Oh.fixer uppers
Many times the repairs cost way way way more than doing it right the first time
Yeah I would never do another project house. The time and money is insane.
$250K a mobile home in my county...
@@IrisP989mobile home domination !
Everyone should watch the guy who does home inspections and shows how corrupt and scammy they are. the have been leglally trying to shut him down and take away his licence, you see them building milliondollar homes but putting 25% of the need insulation, broke floors and roof tiles, leaking bathroom while the builders lie and deflect. dangerous gas leaks. people NEED to be proactive. if you buy make sure the inspecter does a real inspectinog, alot of them now are tight with these builders. inspect everything yourself as well. new doesnt mean better or even good.
Can you name the guy
@@swiirlee8670Cy Porter. CyFyHomeInspections
Cyfy@@swiirlee8670
Hire your own inspector! Just like any other employee they're going to say what their employer wants them to say. If you pay the inspector he'll tell you what's actually wrong with the house.
Who's the guy???
I’m in Ohio and the housing market here over the last 7-8 years is unlike anything I’ve ever seen. Homes that were bought for $130K in 2015 are now being sold for $590k. I’m talking about tiny, disgusting, poorly built 950 square foot shit boxes in quiet mediocre neighborhoods. Then you’ve got Better, average sized homes in nicer neighborhoods that were $300K+ 10 years ago selling for $750k+ now. Wild times.
Home prices will come down eventually, but for now; get your money (as much as you can) out of the housing market and get into the financial markets or gold. The new mortgage rates are crazy, add to that the recession and the fact that mortgage guidelines are getting more difficult. Home prices will need to fall by a minimum of 40% (more like 50%) before the market normalizes.If you are in cross roads or need sincere advise on the best moves to take now its best you seek an independent advisor who knows about the financial markets.
Personally, I can connect to that. When I began working with a fiduciary financial counsellor, my advantages were certain. I got into the market early 2019 and the constant downtrends and losses discouraged me so I sold off, got back in Dec 2021 this time with guidance, Long story short, its been 2years now and I’ve gained over a million dollars following guidance from my investment adviser.
There are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’ Carol Vivian Constable” for about five years now, and her performance has been consistently impressive. She’s quite known in her field, look-her up.
Same here in Idaho. It’s nuts.
It’s not “here” it’s everywhere. We dropped interest rates to 2.5% which sucked up supply then let 10+ million migrants enter the country who are now competing for housing.
The other side is also a problem, my rent was going up $500/mo every year. Went from paying $1400/mo to $3100/mo over the last few years and there was no sign of slowing
SAME $1,500 to $3,250 just jump jump jump .. it was a big corporation that owned the townhouses too. Was just sheer greed and priced us out.
Are there not laws to stop that? In Canada there is a max amount that landlords can increase the price by each year. It’s usually about 1-2%
@ There might be in massachusetts or california or new york but not in the rest of the country. most of the states are super anti government/collectivism in any form really and constantly work to remove all regulations whether beneficial or not
Where at?
But crazy rent increases aren't happening in every market. My rent has only gone up a total of $75 per month in the last 7 years in spite of people relocating here in droves because of our great economy.
When I bought my fixer-upper in 2020 I knew what I was getting into. No floors, no working toilets, one working sink, popcorn ceilings, sagging foundation. Realtor said it would be nothing but problems, BUT she also said if I was that confident in my handyman skills, that the 40% under comps asking price and 2.6% interest rate would were a once in a lifetime opportunity.
So, did the 90% work myself to fix it up (minus foundation repair) and I'm so glad I did. I even overspent on some things due to ignorance but It's now worth more than double what I borrowed for it in a nice part of DFW.
My monthly payment is well under $2k and less than 20% of my net income. People said I was nuts but I think I made out like a bandit.
How long did the repairs take? Also how often did you need help from others, if ever
@ it was about 3 weeks to make the house livable. I hired out the foundation and structural repairs prior to taking residence. I put in floors and fixed one of the bathrooms enough to be functional. After that, let’s just say it was my personal hobby for 2 years.
I needed help with some things like an accent wall and my bathroom remodel. But there were probably simpler, less attractive solutions that could have been solo efforts.
Everything has trade offs but for me it was all well worth it.
If you can do manual labor you win in 2024 😂
My issue everytime I find a run down home, a investor out bids me
Holy crap. You bought an abandoned house?
Another issue with homebuyers, especially first timers, is that they don’t know how to do or fix anything. I am 41 years old and I have made a point to learn how to repair and maintain a home. I can now do any electrical, plumbing, structural, exterior, interior repairs, and renovations. Now you don’t have to be a skill as me to be able to figure a lot of things out when it comes to owning a home. Can take a $2000 plumbing, broken pipe job and turn it into a 100 or $200 repair by simply, educating yourself and being willing to try
I’m an electrician turned into an electrical engineer, I am sometimes excited to see what things I can fix and improve in my home.
I mean it’s a pain in the ass if after I get off a stressful shift something goes out, however I don’t mind doing a lil home reno on the weekend. Get a good podcast and go to town
As a 24 year old I’m so glad looking back on it my dad forced me to help him fix his house as a kid, or I’d get things like my games taken away. I’m one of the few people I know who can do a lot of at least minor repairs. Even the people in the 30s I know, don’t know a lot of simple stuff around a house to do or even where to start
Yep… UA-cam has been a blessing for my husband 😉
That’s great. I will say that some things in modern houses have become so complicated that they are more difficult to fix than regular things, like underfloor heating. Similar to modern cars, which can I go be fixed by a garage sometimes.
I'd love to be able to do that. Unfortunately both husband and I work 50 hours+ a week and we have three small children. We've tried to get into fixing certain things but then are attempts actually cost us even more in the long run :-(
The dream is still there but we've got a real slump right now.
I’m so glad we bought a cheaper house than we were technically approved for, I’ve been putting an extra $1000 to principal every month
Good job, this would alone reduce ur loan term by half
Same. We could have got another $200k in finance but didn’t want to max us out. We wiped out most of our savings but only 3 weeks in and we can start putting that money off the debt instead. The good thing is it’s not in the best area but an area that has a lot of things happening over the years so no doubt the value will rise significantly and as we went larger than what we need it means we can downsize in the later years
Also pay it twice a month instead, every bank is legally obligated to have it available. Just by simply increasing the frequency you shave 7-8 years worth of interest off. It’ll stretch the extra money you’re already putting in
What’s your interest rate
depending on your interest rate it might be smarter to take that extra money and throw it in a high interest savings instead.
4:20 hint for when your AC goes out in the summer. Put window units in the windows for the summer ( I know some pampered poodles cant deal with the imagery) BUT we saved almost 6k doing just this. AC companies are struggling in the winters (here in Florida) get 4 to 5 quotes during the winter. We got a %30 savings with a winter repair.
🧠
How do you suppose the repair is verified in the wínter if the ambient temp is cold? The air vent temperature will not see a change. After about 10 mínutes, the evap will freeze over with ice.
I live in North Alabama and 10 years ago I got a 1700sqft house for $100k at a 3% interest rate and pay $762 a month…I owe $30k left on it and it is now worth 235k.
Nice!! Well played!!
Wow you did way better than me ! 9 years ago I bought my 650 Sq foot home for 95 k with 4.12% interest and now I pay about 600 a month ( taxes went up and I had PMI removed.) I owe about 58 k now. Ps it's worth anywhere from 200-225 k I have seen the comps sell for.( exact same layout/size)
I'm just slightly north of Birmingham and it has been hell trying to find one.
@@mattcollins6126 I’m desperately searching for a small affordable home. I’m not sure they exist anymore!!
But you live in a shit hole... 235k isn't nearly enough money to get me to stay in fucking Alabama lol.
Part of the problem is no one knows how to do any maintenance on their own anymore. Many $10+k fixes can be done yourself for a few hundred dollars if you have the know-how or can use youtube. I bought a 100 year old house back in 2017 for *cheap*. Since then, I've never paid more than $5k on a repair, and that $5k was my insurance deductible for replacing my sewer line all the way back to the main. Most things that i have issue with i fix myself, even if that means watching 2 or 3 UA-cam videos about it and muddling through.
No wonder the UK thinks our houses are made of cardboard.. it literally is😂😂😅
DR Horton specifically uses CARDBOARD sheathing, I'm not even kidding
new builds in the uk are the same
@@redlinerev6423 Nah-uh.
@@redlinerev6423oh boy there is no comparison (I’ve lived in both places)
@@MrAronymous you need to have the house inspected before you buy it because snaggs hahaha
Home ownership is a dream of mine. I am 38 so I have been working/investing for 22 years. Finally saved $500k -> $400k down payment and $100k backup fund. I only make $65k/ year so I needed a mortgage under $1000/month. My home has over an acre of land, climate controlled 850sft workshop, and fully built out home gym in my garage. I have 1/4 acre garden with a chicken coup. I have endless desert behind me to take the ATV out shooting anytime I want. The home is only 10 years old and passed inspection with flying colors. I have the appliances I want, the flooring, blinds, cabinets i want. The home is painted the colors I want. The landscaping I customized to exactly what I want. I'm living a dream right now.
... but I waited until I had the money to do it. A home is not an investment, it's a lifestyle. If it's not a lifestyle you want or can afford, don't do it...because it's definitely not an investment.
What is your profession?
@Statikal Behavioral health industry. I make $60k a year. I taught myself how to say trade options a few years ago, which makes me another $10-12k a year. Compound interest is no joke. My grandfather left me $30k when he passed when I was 16. Over 22 years, I turned that into $240k after taxes just invested in various mutual and ETF funds. Up until now I lived very frugal. I always have roommates, drive old cars, never eat out, and only buy what I need.
She "felt rich" while living w her parents. That's the real problem. She doesn't know how to handle her money or expenses
Exactly. She should’ve been saving more money.
Yes. She was living her best "luxury" life? Please. What a joke. Such an incredible waste of money just to feed her ego and to try and impress people? So empty...
@@opensourceanglers8291God forbid people actually enjoy life. Oh no. How evil they are. We should all just suffer and bow down to shit show that is life we have created for ourselves.
@opensourceanglers8291 yall read into things way too much. That wasn't what was said so why inject your own interpretation in for no reason? How is that helpful to anyone? Talking about feeding an ego 🙄
I'm sure most people "feel" rich when they're earning a good salary and not having a rent payment. And considering that's exactly what the guy who made this video also recommended you look pretty silly trying to draw conclusion off of that. Yall are not Buffett and you're definitely not Sherlock Holmes
Bro, if you are paying $22k to fix your AC, you are living in a multi million dollar mansion!
That's what I was thinking. Typical AC repairs are like 4 to 5k in my area for a 2k Sq foot house
That’s pretty good my range was between 7-13k for 1400 sqft
Just had a new AC condenser done for $4200 for a 1000sqft home. (3ton I believe). Now the EPA changed the refrigerant or something this year which just increased the prices substantially.
Actually, that’s a quote I got for my air-conditioning should it ever need to be replaced. If you’re in the east coast you often have to have two ACs, one for the top floor and one for the bottom. I do not live in a mansion.
@@latsnojokelee6434 OMFG, US$22k for 2ACs!?!?
I dont live in the US but i feel that is a rip off!!!
Where i am living, US$5K is good enough for REPLACING 5 Samsung AC units (1pk each) 😄
It also doesn't help the options to buy are so bad. We just got off a few decades of house flipping being all the rage. People buy a house, put a few layers of paint and other bad cosmetic changes to increase it's price and resell the house. We have a flood of houses that were not built to code, did not get a permit for that expansion etc. So people go out to buy a house and get stuck with the mess left behind after several flippers bought and resold the same house.
Buying new isn't much better as construction companies seem to be cutting corners and using sub standard materials left and right. You need to be an absolute expert, hiring people you trust to get something that doesn't require massive effort to fix.
I have realized that most people who bought homes are not financially savy or doesn’t understand how to be efficient with money.
They buy a house and then immediately think they're better than everyone else just because they pay the bank instead of a landlord
And at like 27 they buy a 400,000 dollar plastic dream home instead of a reasonable “starter home” further away from town or maybe a bit small. I get it you’re making 100k a year good for you. Even back in the 60’s, houses were not this oversized and stuffed with new tech that also raises the price up a whole bunch. My dad’s first house might be apparaised at around 260-270k today on penn avenue around Minneapolis. That’s doable for most couples who are motivated. You don’t dive headfirst into a step below a McMansion lol
No matter what home you buy things break, I'm a contractor and everything that could break in my home broke in the first year, despite everything looking fine, the average person is screwed, I fixed it all myself so I didn't have to pay anyone which saved me from financial ruin, most people don't have that luxury
@@munb7756 100%, like the first girl……
Millionaires are people owning their home... FACT!
For years, I regretted buying my father's house because he got sick and couldn't work. I was stuck with a 30-year, $100,000 mortgage, and my salary is $22,000 a year. I started saving aggressively, and now I have enough to pay the mortgage in full. I'm not going to do it, but it's a good feeling to know you can. You have no idea how relieved I am.
Congratulations!
Congratulations! Have you considered investing? Right now investing is more appealing to me than buying a house.
I don’t even know if you can call 22k a “salary”. That’s clearly like, minimum wage hourly work, it s gotta be…
Good on you!
We bought a fixer upper in 2018. Got it at a great price in the Bay area and we were informed of all the maintenance requirements from our inspector. Love this home and no regrets whatsoever. The enemy you know is better than the one you don't. At least we were able to budget for the repairs and upgrades ahead of time.
Great job, you did a smart thing. But not viable today. Even fixer uppers cost 400k now.
@@basmca1Don't buy then
@@stephanies9689 I am not but that's like saying 'don't drink then' when someone complains about the price of water when this is artificially inflated by speculation and intentional lack in supply.
A house is kind of a nessecity.
@basmca1 Buying a house is not a necessity, particularly not during a giant housing bubble. Rent under whatever conditions have you shelling out a reasonable percentage of your monthly income and wait. The mid 2000s looked like this too, the bubble popped then and it will pop again, be patient and use your head.
Do you get it inspected before offering?
This same phenomenon happened back in 2007-2009. People were buying homes like crazy and then realized that they had to cut grass, tighten their own door knobs, deal with their own garage door springs, and when that water main to the house bursts, it was on them. And what? Lawn mower blades get dull after awhile?
I was "house poor" for 17.5 years. But it is all paid up now. There are certain things I would do differently, but in the grand model, it would be done very similarly.
I’m thinking about selling my house because every time I turn around there’s something else that needs to be fixed and the trades are just gouging people. A raccoon managed to get under the house into the crawlspace and I had to pay $800 for the guy to crawl under the deck and get down there and screw in some plywood. I called a handyman, but he didnt show up. And you know you’re getting gouging, but you can’t have raccoons in your crawlspace, tearing up stuff.
@@latsnojokelee6434 There is the option of doing it yourself. It seems $800 to screw on some plywood is a very lucrative thing to do. But, in a world where there is an ever increasing number of people who do not want to take initiative, that's the price to pay.
I made $200 installing blinds on 4 windows one time. It's not something I do, but I was asked and figured what the hell and tried. The screw holes were already there and I was done in about 40 minutes.
I made the same changing the lower unit oil in someone's boat. Other people's boats are not something I want to get into, and I told the customer how easy it was and it could be done with nothing more than a drain bucket and a flat head screw driver. But he wanted someone else to do it. So, I charged accordingly. He was somehow happy with it. He had about 4 gallons of gas that was probably 6 months old and didn't know what to do with it. So, I stuffed a funnel down the filler neck of my car and dumped it in. He was too afraid to use it.
I replaced a thermocouple in a water heater for about $100 which took me about 1 hour including the time to buy the $15 part.
I bought a car for $250 2 days ago. It has a massive oil leak. I believe that the parts to fix it are going to be about $25. I have yet to verify this, as my garage is packed with another project at the moment. But if it turns out to be a big job, I haul it to the scrapper and get $300. Probably $100 for the catalytic converter. It has probably $30 in gas in it. Fixed, I expect $2,000.
Fixing furnaces and air conditioners can be really cheap, depending on the problem. Sometimes it's "no parts required" and a flame rod is less than $20.
So, why do I charge so much? Because I am burned out and people will not leave me alone and I am sick of people calling for help when all they need is some plywood screwed in to stop raccoons. Or, I tell them I don't have time.
What would you have done differently
I can’t imagine buying a house now at 30 just to force myself to be “house poor” for nearly 20 years and then turn 50 and think to myself “yeah. I made it” that is insane.
@@Maya-sd4jl A few things that come to mind right now are:
1.) have a bigger down payment and skip the FHA mortgage. This is not hard to do even today with a cheap apartment / renting of a bedroom, and a lot of working hours.
2.) Waited until I was a bit more economically viable in the workplace.
3.) Prioritized getting air conditioning installed so it would be easier to get a roommate for extra $$$$.
4.) Skipped college. Put that money towards the mortgage / down payment.
It strikes me - from here in southern Europe - that many North Americans are somewhat overhoused, i.e. too many square feet, complicated and expensive HVAC systems, front and back gardens. Trying to have it all, quite early in life, when they can't really afford it. It's normal that people feel financially stretched when they're living like this.
Very astute observation and very true! And most Americans just don't realize that it is inherently expensive for a single person to live in a single family house with a front and back yard and a big SUV in the driveway. Overhoused indeed.
@@frmcf you are so spot on. When I moved into my house I wanted everything all at once but my parents kept telling me it takes years to get a house how you want it. Definitely a reality you need to snap into when you are a first time home owner
No one builds "starter homes" anymore, it's all big houses in sprawling subdivisions. I think plenty of us would be happy with a smaller house but our options are a poorly built townhome subdivision with an HOA of retired busybodies, or a 1950s American Small Home if you can find one. And nothing is very affordable right now regardless of square footage.
I wouldn't argue your point.
Yeah but the lifestyle is completely different. The priorities as a society are completely different. We have no shortage of land here in the US.. there's a lot of variables your failing to take into account. I'm British- American, from Grimsby to Texas- its insane how different they are. It's not possible to compare.
19:33 If you rent you aren't responsible for the repairs....but the other way to say that is that the landlord is responsible. And if the landlord does NOT want to repair it they wont. But YOU have to live there.
If that happens, you can just move though. That's always an option when renting. Also relevant when you get bad neighbors, need to change jobs, etc.
You *do* have the right to issue them breach notices, and you *do* have the right to force a rent reduction or even break lease without typical obligations if the notices are ignored.
@@cynder2694it costs thousands to move tho. Deposits, utility switching costs, moving/truck rental. It’s not as easy as “just leave”.
-someone who’s never lived in the same apartment for more than 2 years
@@alexquinn4792this is a bit disingenuous. A deposit isn’t a “cost” as you get the previous one back. I don’t know what you’re paying to switch utilities, but it’s not like a shutoff fee or anything. And you don’t have to pay a moving company if you’re willing to put some work in yourself. Those “thousands” could be hundreds or less pretty easily. And if you decide to spend thousands that’s fine.
If you own a place and decide to move, the costs (closing costs, legal fees, safety repairs) are not optional.
@@faiora your deposit isnt guaranteed, and rarely will a landlord just give you the full thing back, so not only are you not getting your money back, you need to deposit a months rent upfront at the new place. About $150 for the truck, $200 for movers, $x for moving boxes, pet deposit, etc. sure you can move EVERYTHING, but people dont always have the resources or time or manpower to do so. My argument is that the “just move” isnt that easy like it’s no big deal.
Almost bought a condo/house last summer and I’m SO happy we ended up backing out after the inspection. Being a homeowner is no joke and renting has definitely made me realize how much more actually goes into purchasing and owning a home.
Condos are the absolute worst.
@ it just sucks that your home can get ruined from a neighbor’s negligence, I feel like they can be a good option but there are definitely a bunch of downsides to consider. I think the association fees for the place I was looking at were around $200 a month and there was no front yard, barely a backyard and no front door, only a door that led into the garage. I definitely got sucked into the whole “owning is better than renting” thing but very glad I’m renting now. My rent is about $400 more than the mortgage would have been but that doesn’t include repairs, the association fees, insurance, taxes etc
Enjoy wasting 1500$ every month for nothing.
@@kelseywoopi heard somebody say that when you rent, your rent I’d the maximum you pay. But when you own, your mortgage is just the minimum. Happy to keep renting
@@TheSmokeWatcherI wouldn’t mind renting at least I have a roof over my head that’s all that matters 😂
They skimp on everything now. It's even in the construction. This needs to change.
It’s not
I bet that $1800 rent is looking real nice right about now. This is precisely why I decided to keep renting. Water included, routine/free maintenance and replacement appliances. Dog park. No property taxes. I don't have to mow or water grass or keep the exterior "pretty". And as long as i write that check on the 1st, I continue living my best life. I'm also nowhere near emotionally prepared to pay for blown AC, exploded pipes or flooding. Sure, there's no equity in renting, but there's no responsibility either. Don't let regretful home owners convince you that you need to own a home to have value.
You do pay property taxes, if taxes rise, so will your rent. Dont fool yourself please
@ still got that homeowner mindset? Even after watching people say it’s their biggest regret? My dad’s crawl space flooded. $35k. You think he just had that money sitting ready? or you think on top of all his other home owner bills he now has to pay an extra $1k a month to cover the cost? Don’t fool yourself, please
💯 right here with you. ❤ Plus I don't stress about the 6-figure DEBT in my name. Would rather save and wait to buy something worth less than cash I have in the bank. srsly. whatever those numbers end up being.
I've lived in my current home for about 5 years, it is my second. Put 20K of renos in it to start, new kitchen, updated bathrooms and replaced all the carpets in the house with updated flooring. In the time I've own it, every appliance in the house broke except for the fridge, so now they're all replaced. And then the roof leaked, so that was 14K to replace.
Home ownership has a lot of benefits if you buy well under what your qualified for. but I would recommend keeping 10k in savings at all times for the big maintenance jobs. They're infrequent, but they hurt if you're not prepared.
Great advice because I wish I saved 10k for repairs before buying a house.
A/C $22,000 is like $10,000 brake pads - a huge lie. I replaced my entire HVAC system for 1/4 that.
Mine too.They act like the same things break every week.Fix it one time and you're done, unlike renting where you have to pay for repairs month after month because that is what they are charging you for.And nothing is broken,at least not in your apartment.
Yeah that sounds absurd. It's important to research and get estimates/shop around. I would rather run fans and take ice baths than get scammed 22 grand
Well it depends on how many systems they had in the house, if they went with higher-end equipment (like Bosch), as well as the cost of permits and other fees that the installing company has to build in. I agree it seems pretty steep but I’d believe it especially if they’re in a higher cost of living area too
Depends on what the house is. My landlord's central A/C broke in the house and they were getting several quotes for $15k+. The house is 3900 sqft.
@@sasukesuite1 Yeah, it would cost anywhere from 10-18k
I bought a century home two years ago. Inspector didn't find anything but I had $47,000 in emergency structural repairs needed...
One more year and I'll be back to having savings.
It's worth it psychologically but not worth the opportunity cost to buy a house without a lot of cash on hand.
The one issue with renting is retirement age, unless you invested aggressively you wont be able to pay rent costs 30 - 40 years in the future, plus moving every 1 to 5 years seems like a non issue in your 20's through 30's but imagine moving every 2 years in your 60's or 70's and what if your health takes a bad turn you will be happy you own a paid off home when you are 70. Another issue is if you got a 2-4 % loan just stick with it because that rate is not coming back for a long time. As far as maintenance costs go , either learn to fix it yourself or commit to putting 10K away every year for what ifs and if nothing expensive breaks for a couple years invest half of that fund.
THIS ^^^^^
Exactly why I wanted to but even if it’s a bit of a struggle right now. Seeing my parents going through hardship in their later life but feeling safe that they own their home and it’s only bills and food we has to worry about was far less stressful than adding rent into the mix
This is why I wanted to buy. I could no longer deal with landlords jacking rents or asking us to move every handful of years. Housing prices never seem to stop going up. If I don't buy in and pay off the mortgage my family will be seriously screwed when I'm older.
“Moving every 2 years” Do Americans just not have any tenant rights?
Renting the same place for a long time should be a way to guarantee a low rent in retirement in a properly regulated market. This would be because rent increases are capped, and landlords can not easily evict tenants or force them to move.
@@matKilla9801 Tenant rights whats that this is America, there are rent caps but the rent will be raised every year to the maximum rate possible. A few places have rent control but that is rare, so once the rent is unaffordable you move or take on 1 or more roommates.
A bit of advice for all of my renters out there, do not sign leases in the spring and summer months. Make sure your leases are between October and March. This is when rent is at its lowest and if they will be raising your rent on your next lease it will bea lower increase. I have always set my leases to end in January and either my rent has not changed at all or it’s only went up about $30-$50.
The reason why buying a house is almost always the right choice is only because almost everyone is very bad with money and future planning. If you buy a house its a very easy concept, and given enough time they almost always go up. (Not saying you will double in only a couple years as some people have had in the wild ride we have had recently, but over 20+ years realestate always trends upwards.)
Since owning a house means you are making significant monthly payments towards an appreciating asset, you are being FORCED to save. Then when you reach retirement age you can sell your home, downsize and have money to retire on. Now, if you plan well, properly put money away into various investment mechanisms, dont rack up extreme debt, you can ABSOLUTELY do as well as or probably better than you would buying a house. But people do NOT do this.
The numbers are something like fewer than 15% of adults have more than $100k saved up for retirement, approximately 65% of households own their own home, and the average home equity is about 300k. (Just casually grabbing the numbers from various banking institutes so just broad strokes averages here.)
So yea, can you get by without buying a home? Of course, but 85% of adults who convince themselves they will do better without owning a home are lying to themselves.
Bingo.
What people who think about never buying a home do not realize is you will always have to pay rent, even when you retire and no longer work. At least with a home, hopefully you are able to pay it off before then. You will still have property taxes and utilities, but it's cheaper than monthly rent (which can keep increasing even when your retirement or social security does not).
Move to a city that offers property tax exemptions for the elderly and you don’t even have to pay property taxes!
My 87-year-old mother-in-law bought her modest home in 1973 for only $ 45,000. It's now worth $410,000 and she receives a full property tax exemption. So only has to pay for utilities and any maintenance that pops up.
Therefore, she can live fine off of social security and a small pension. If she and her deceased husband had always tented instead of buying their home, she would now be struggling to pay high rents here.
@@Luckoftheirish1 I'm thinking though. Should elderly have to move away from friends and family to be able to buy?
And when you are too old for a house, you can sell it and live of the money.
Just don't live in states with high property tax. I'm in Washington and property tax will push people out of their houses. That's not going to change.
@@kunya16 Central Ohio suburbs of Columbus is the same. Terrible property tax.
I mean she went from not paying rent, food, or other basic necessities to paying a mortgage. If she was renting instead of living at home, she probably would not have had as much sticker shock from the house
Right? Suddenly she was paying a mortgage, utilities, property tax, home owners insurance, landscaping/ yard maintenance, maybe HOA fees.
Yuppp welcome to adulthood honey lol
So glad I bought my house in 2016. My mortgage payment per month is just $982 and I'm way ahead on paying it off. I couldn't imagine buying right now with the interest rates and inflated values for homes. I would never encourage anyone to purchase if you can't afford it. I also specifically selected under what I was approved for, I could purchase anything up to 200k, I specifically told the bank and my relator that I would not buy a home for over 150k. In Iowa, in the Midwest, that was still a lot of house you can buy for 150k at least in 2016 it was
I bought my first house in 2020 for $130k at $800 a month... 4 years later I'm now paying $940 a month, but still better than the alternatives out there. And the value has more than doubled since fixing up some things, but I wouldn't sell it because there would be nowhere to go.
Single woman homeowner here, I'm very lucky to be in a reasonable cost of living area with a starter home with no major repairs in 7 years of living here. Its a classic rowhome that was built to last in the early 20th century. I might never leave.
Buying a home by yourself is literally insane unless you’re renting out rooms. 😂 in this market, this economy? Buying a home alone is a death sentence
Congrats!
I thankfully don't regret buying my home. It's an older fixer upper, and I have experience working on homes. However, the thing that helped us the most was the insane amount of research and planning I did before we got a mortgage.
I’m finally at a job where I might be able to afford a house one day and I can’t wait to buy a cheap fixer upper. I have amassed a mountain of tools and over 20 years experience in home building and renovations. It’s sad because I could easily fix issues like the first girl for literally the cost of materials
Fingers crossed you find the right house.
12:53 as a civil structural engineer it drops my jaw to see americans build their houses OUT OF PLYWOOD!!!
In my country it is mandatory to build with reinforced concrete and we have regulations and rules for the design and load bearing. Once your architectural floor plan and overall design is set you need to hand it to a civil engineer and they have to calculate the static project whilst the electrical engineer plans the electrical project. Once the architectural - static - electrical projects are done and signed by the engineers you have to submit it to the municipality where the government's set of engineers cross check your project and hand it back to you with a rejection if you make any calculation mistakes. If everything is OK you get the building approval. In US I see lots of hurricanes and houses are made out of plywood... and reinforced concrete cost ratio in my country is done by USD ( so the cost of materials are pretty same as US - only worker wages might differ) so paying for plywood is crazy... One strong wind or small earthquake or a fire and your life and savings are at huge risk!
This also blew my mind when I moved to the US, but there is good reason a lot of homes are wood construction and that's earthquakes. A lot of US homes are on fault lines and concrete/brick would take a lot of damage.
@@mrdiggie3321 In my country (like japan) we get 6-7-8 richter scale earthquakes and we are on active tectonic plate lines ... when I'm at the technical office and start a static project what I do is straight up checking the earthquake regulations for my design & including the earthquake load... The regulations in my country (TS, think of EUROCODE) for reinforced concrete structures are heavily earthquake focused. Once you follow the regulations and include your earthquake load your 10 story building is earthquake safe. I studied also japan's regulations aswell. Both countries use multi story apartment buildings in their urban plannings instead of 1-2 story (easy to calculate) buildings like US. Hurricane + earthquakes = reinforced concrete. Yes the "plywood" is not heavy therefore cant absorb the earthquake - seismic energy but its CRAP... constant upkeep, mold, bugs, hurricane damage, fire damage, earthquake damage... not worth it...
Concrete also CRACKS easily over time and breaks down... Wood is MUCH easier to replace and repair!
@@bettysmith4527 lmao are you serious or?... reinforced concrete doesnt crack and average building serving life starts with a minimum of 100 years
@@bettysmith4527Where on earth do people get this idea that concrete cracks over time?
Did Plywood Builders tell you?
Because if it does, how do they justify not building skyscrapers out of wood? 🤷
People need to learn how to fix a few things around the house. UA-cam can teach you a lot of things and you’re going to save tons of cash.
How you gonna learn to fix your house if you’re working 40-60 hrs/wk and live alone?? Or married with kids working full time ??
Please don’t be fooled by the DIY content you see online… those are very wealthy people. Most people don’t have the time or resources to learn a new skill on the go and potentially make things worse.
@ there’s lots of people that can learn something simple like patching a hole in the wall, painting a room,changing a door handle, replacing a faucet etc. I work 40 plus hours, 3 kids and other activities. I rarely pay someone to fix simple things around the house.It doesn’t take long. No one says you have to be a full blown handyman. Learning the basics can help big time.
True. My husband watched UA-cam and built our pergola outside from scratch..
@@IrisP989 👍🏻. I can’t count how much money I’ve saved by learning something on UA-cam.
@@theinvisiblewoman5709I agree that the DIY craze on UA-cam has gotten outrageous but it is possible to learn simple things. I learned how to unclog my sink when it backed up. I also learned how to replace a part inside my toilet when it starters dripping into the bowl.
We bought a place that had been dodgy reno'd to make it look modern. They tiled over existing tiles on a 2 story balcony and painted over wood rot. I only discovered the damage by chance and it cost 20K to replace. Could have collapsed at any time, disgusting.
Why didn't your building inspector pick that up?
Your inspector should've found those issues.
Insurance professional here. Homeowner’s insurance is NOT for maintenance. It’s for indemnifying you against losses related to covered perils (which vary based on the policy but include things like weather, fire, water damage etc). Anyone who thinks they can or should file claims on expensive maintenance related items (like replacing broken AC) will get declined, and they’ll think their insurance is a scam when they simply didn’t understand the coverage and intent of the policy. Read your policies.
just a FYI the girl at 18:43 actually bought a house (AND a brand new 2024 car) like not even a full month after she made that video lol
I work in the mobile home industry. A regular roof should last 10-20 years. Yesterday I did some painting in a 5 year old mobile home that was getting a new roof because it was already leaking. I believe it was a Clayton but they are all the same. They are built like ikea furniture and sold to the most desperate people
Bought a simple well built older brick house 26 years ago in my early 20’s. Now worth 3.5 times its purchase price and nearly paid off. Its paid for its own major repairs and upgrades with its own equity over the years. Dont be afraid of a mortgage,but live within your means and for god sakes dont waste money on ridiculous car loans,and chasing trends. Retired at 47,live simple.
Things were a lot different 26 years ago
@ True,alot has changed. Nobody has the patience to save for a down payment or an emergency fund anymore. Doom spending,and door dashing every meal will keep the masses poor. Sacrifice sucks,but not everything is as fast as amazon delivery.
I just got my house paid off, finally after 21 years it's paid for. I can't express the level of my relief.
My sincerest congratulations...you are one of the last that will be able to do so.
@@frozencanuck6764 Thanks, I feel like I bought during the best possible time because it's just got worse since then.
What kind of money do you spend on insurance and property taxes . Other monthly expenses like utilities. Always wondered how much it would cost to live in a payed off home
@@bushikciwa insurance is $1300 annually and my property taxes are $260 annually.
Utilities vary, but usually run less than 300 a month total.
Lack of stable relationship is a big issue for home owners for sure. Even some of the smallest single bedroom homes are a bit much to take care of by yourself if you work full time. Especially if you live in a HOA that demands you keep up on all the yard work and such. And if you can't do it yourself your spending more money to have it taken care of. Be it mowing the lawn, cleaning the gutters or what ever has to be done.
5:13 What you qualify for (aka the loan amount a bank wants to sell you), and what you can comfortably afford - are ALWAYS, not sometimes, two different things.
Right, I qualified for 250k home. Comfortably I only wanted to get something around 150k.
Thats very different in other countries...in Germany for example. You need to lay open everything you earn, your costs, and everything you owe. Then they make a calculation, where generous amount get deducted. Than they make a "security-deduction"....The remaining amount is what you can pay. The calculate up...what is the maximum amount you can pay of. Then they check the value of the property you want to buy...compare with the selling price. If the selling price is higher...no financing. If its equal or lower, they deduct 30% of that price....that is the maximum you get financed. Is it more than what was calculated as pay-off ability...no financing. They are actually quite severe here in Germany. The result: many people cannot buy a house in the first place, but those who do usually make it.
Yes! I was thinking abt how most credit cards from these same major banks bet on ppl not being able to pay off their balances. The credit limit is designed in hopes that ppl spend too much and then pay more in interest later. I can't help but imagine the banks are applying similar tactics to mortgages.
she did not buy a house. she bought a loan.
Yes, but if the home goes up in value, then homeowners also have an asset which turns into a profit. Rent = lighting money on fire.
Bro u are so fire with ur comment
@@kirstin6167 i tell you, you will be rich....!!!
@kirstin6167 most people don't make money on a home . Including cost to fix, property tax ,interest on a 30 year loan u will pay more on interest than the laon amount . 😂😂
@@cultleader3572paying money to loan.money, yeah, this concept seems legit, not
I'm married.150k Qualified me for $660k on my own. My wife makes 100k. Even with that I was scared crapless of going over $450 on a mortgage but we kept getting blown out on offers every single time so after 9 months we had no choice but to go up to $535k. It's a beautiful home. My wife and kids are happy. We have been here a few years. The house has gone up considerately and we still have money for vacations and 2 car notes and the such. I'm glad I was afraid of taking what they qualified me for. I do believe we would've been screwed but I do still have that "what if" always on the back of my head. Owning a home is an amazing blessing that comes with stress. Be very careful. This guy's comment on 30% of net is super important
I'm just thankful that I bought my home in early 2021 for $112k at 3% interest rate. If I were a buyer now, I wouldn't be able to afford the same house given its current value and ridiculous interest rates.
I live in florida and got in right on time before all this stuff happened. We pay 1100 a month with everything, our home value went up over 100k in a year and we live in a nice subdivision with great neighbors that all take care of their property's. I see new neighbors moving in and can't believe the cost of the homes with interest. I think, how in the world are they affording this, and worry about our kids futures.
I bought my house 3 years ago. But I waited and found the right property for me as I’m a full time mechanic. It has great space for me to work and I built a shop on the property this past month! . The last 3 years I worked on the rv driveway and earned a lot of money. It’s a blessing if you do your homework and buy something that suits your needs and will be advantageous to your situation!!
When buying a house as a single person, you have to buy a house much less than what the bank says you can afford. Don’t even look at a house in that range. And don’t bring credit card balances into homeownership.
Even as a couple, always buy a house significantly cheaper than what the bank says you can afford. The banks will jack up the total mortgage offering if there is a dual income.
Basically, you’d want to buy low enough so that even just 1 person is able to pay for the base mortgage cost, and then the second person can double up the payment to pay it off early. That way, even if someone loses their job, you still won’t struggle.
Its messed up either path you take - friends that have houses have maintance issues or taxes/insurance as you said. Friends that are still in apartments (and I live in an area where they are building thousands of new homes and new apartments) wont let you rent for longer than a year, and the rent goes up by at least $300 every single year. Its just a crapshoot regardless.
As a home owner I’ve diversified into other sectors that have been less chaotic. Getting into trading has been rather rewarding to me and I've learned that getting a good return is very much attainable if you know your way around it. I've watched my net worth grow exponentially these past months.
Luck is way off the picture. Jonas Herman, a licensed fiduciary is the brain behind my success. I've gotten into a plethora of assets with $32k spread across stocks (options and futures) for the short term and Roth IRA, index funds, cryptocurrency and ETFs, for the long term. Now with over 291k in roi, I sit back and just reinvest at intervals while I handle my other businesses.
While it may sound enticing, it is important to understand that stocks, like a fine wine or a Monet, has no standardized value. You look all good on the outside, while you wait till almost death to enjoy your wealth which presents an enormous economic(uncertainty) risk.
I'm green in the investing space. I work most of the week and barely have time to myself. I'd like to use mentorship. How can I get to him?
Hermanw jonas that’s his gmailokay
Advertising much?
Because so many people overpaid for homes even while loan rates were low, I believe there will be a housing catastrophe because these people are in debt. If housing costs continue to drop and, for whatever reason, they can no longer afford the property and it goes into foreclosure, they have no equity since, even if they try to sell, they will not make any money. I believe that many individuals will experience this, especially given the impending mass layoffs and rapidly rising living expenses.
At this point, its only reasonable for investors to diversify into other sectors, the stock market, to balance out their real estate holdings. Even the worst recessions offer valuable buying opportunities in the markets if you're cautious. Volatility can also result in excellent short-term buy and sell opportunities. Please keep in mind that this is not personalized financial advice. However, it's worth noting that holding cash may not be the best strategy in the current market.
You're correct! With the help of an expert, I was able to diversify my 450K portfolio across markets and produce slightly more than $830K in net profit from high dividend yield equities, ETFs, and bonds.
The area I live in ended up on one of those best places to live lists and all of a sudden, we had people moving from all over the country, buying the older houses and shut down factories, renovating them and charging insane prices for them. A few years later, most of those places haven’t sold and we're finally seeing rent and home costs go down. Most of the houses I watched stayed on the market for years, out of nowhere, house prices went down en masse and these homes were now getting bought left and right
The first woman describes living rich and blowing all her money because she had no bills. That's the issue. Purchasing and paying for a house is not easy regardless. Don't blow your nest egg or emergency fund to buy a house, because now you don't have that to fall back on. A house is BOTH an investment and a liability. You need to know your own numbers, and stop living on the razors edge.
Me and my partner are not married, we INTENTIONALLY applied in only one name. Our loan approval was based on a single income, we got approved for $250k. We bought for $100k. Is it a small house? Yes. Is it an old house? Yes. Are we going to pay it off in 10 rather than 40 years? Yes. Are we going to avoid paying $200k on a $100k house? Yes.
Buying a house is likely the most important purchase you will make in your life. Before buying, invest in an architect, plumber, and electrician, as well as a thorough inspection of the house, to avoid unwanted surprises. When you retire, you will receive less than 50% of what you earn now. You will likely have an illness and extra expenses. Will you still be paying rent at 70 years old?
5:08 I’m so glad that this was mentioned. I bought my house in 2021, when I was 30yo. The bank pre-approved me for an amount that to me was way too much. The difference between what I was pre-approved for and what I was expecting was $300K. I told my realtor the amount I was pre-approved for but that I wanted something less expensive. She did talk to me about looking at bigger, nicer, newer houses but I said no. I knew what was realistic for me. I ended up with a 1930s craftsman that needed work, but it was the least expensive house in the nicest neighborhood. A few years later, and I am able to deal with things like my AC needing repairs and the water tank needing replaced without it wrecking my finances.
Just because you’re pre-approved to go up to a certain amount doesn’t mean that you can actually afford that amount when life happens.
For clarity: I was pre-approved for 450K but my budget was 150-180K. I ended up with a house listed for 150K and put about 30K of updates into it over time (new kitchen, floors, etc). I’m still updating the house room by room, but I don’t regret buying.
When I bought my house I came in with a monthly payment I was comfortable with. The houses that I saw matched that payment. Did I want more yes, but vacations are important to me.
Excellent point. I'm in the process of buying a house that is less than 350k of what I'm approved for. I still want to enjoy my life. I'm not grinding all week to put 90 percent of my money in my house. Why? To impress 5 members of my extended family that I see a few times a year? Makes no sense
Are you suited to a house? A friend of mine once said to me 'I never want to own a lawn mower'.
sounds like me. I have my reasons. I have to pay lawn services and landscapers if I have a mortgage, but I never have to think about it if I rent as long as I don't rent a house. 😂
Here’s what pisses me off about buying a house - realtors who insist on showing you houses that are at the high end of your qualification or even above it so you can “see what could be”, all because they are greedy.
You don't have to go where the realtor tells you, lol
Rent vs buying, single family homes vs condos, are all very dependent on region.
VERY. I feel like a lot of these videos assume we all are buying in a HCOL coastal city.
Prices aren’t rising, the dollar value is falling!
Renting also has drawbacks, rental property breaks too and some landlords don’t bother with the repairs.
I just bought a house for the first time (haven't even closed on it yet) and I'm so anxious about being able to afford all the extra expenses BUT it passed the inspection with flying colors and I bought within my means. I plan to work my ass off to pay down the principal and save for maintenance. I feel like I'm prepared to take this on, but it's just scary not knowing what might happen. I have a pretty low income so I bought a smaller house with less bells and whistles but repairs cost the same for me as they do for higher earners. Just hurts me more. Hoping it all works out
You could probably turn one of the rooms into a unit and rent it out, that’s what this UA-camr named Elijah Ray is doing 🤷♀️ looks like it’s going well
Good luck!!! Seems like you did everything the best way you could :)
@@Maya-sd4jl thank you!!!
As someone who bought a house that makes half of 100k, in the beginning you should save a sizable amount for repairs and do as many repairs as you can by yourself and be patient with yourself. I bought an old house though so circumstances may be different
I have a 135 year old house which is indestructible. Costs less to maintain than my 1960's house, and much less than a friend's 2014 house.
Mine was built in 1920 and it’s a dump lol
This happened to me. I tried so hard to make all of the right decisions. I saved up for a large down payment, made sure the mortgage was safely below 30% of my income, found the best inspector in the area, and I STILL got screwed. Within six months, we had $70k in unexpected repairs - pipes broke, furnace blew, water heater needed replaced, roof leaked, etc etc.. The inspection missed tons of things that would have kept me from purchasing had I known. In one year, I went from having six figures in the bank to now being 40k in debt.. and every time I start gaining ground, something else breaks. Things are looking bleak.
I realized later how lucky I got in 2020 with my house compared to some of my friends who bought later. I did manage to find my ‘dream home’ for half of what I qualified for because it’s over 100 years old and needs a ton of work. I budgeted to ‘pay’ double my mortgage and fix it up as I went living in it to make it how I want but that’s something I enjoy doing. After moving every 6 months or so for 15 years and even now traveling many days a month for work - I just want to be able to come home to my own couch and garden to drink tea and put some work into something to make it better. If you don’t like doing upkeep for your free time and like to travel- rent!
First lady should have had a proper home inspection done.
Or assume that when you buy a house you are gonna have big expenses when something goes wrong
100% my thought. She's bragging about being rich when essentially someone else is paying your rent. No crap you could afford to do and buy things all of your income was disposable.
It does sound like she didn't get a home inspection. A lot of people see it as unnecessary and a waste of money. Then in some places you do have to skip it in order to get the house. The seller will go to someone else willing to skip the inspection. That's a red flag right there. Then she also bought a townhome by the sounds of it. I am not a fan of the idea of those. To me The allure I can see is that they can be a bit more luxurious looking for cheaper and a HOA takes care of a lot of the maintenance. To me it just doesn't seem like you actually own the thing and you have to hope your neighbors aren't from hell.
It's really not worth it to buy a house these days. Too many sorrows.
Way too expensive and risk on top of it. I'd buy in another country though.
It's kind of like the 'start your own business' grift I see... These clowns don't know that you don't make a profit for the first 5 years and you have like a 70% chance of failure.
I have owned dozens of homes and my cut off used to built prior to 70s .lately I started stretching that to1980 . Many more problems in those homes. I would never buy homes built these days unless it for flip immediately.
It makes me laugh when half the people who bought are like “OH MAN I WAS POOR AS F*CK FOR 25 YEARS BUT I FINALLY GOT MY HOUSE PAID OFF” and they’re creeping up on 60 years old. That’s no way to live.
Just sold my fully paid off house in NY and am now living in a luxury apartment in NC. Could not be happier!
We did the same thing! Paid off our home 16 years early, sold it for more than twice what we purchased it for and now live in a luxury apt complex in SC. Happy is not the word!!
Are you renting?
@@straw1berry11 yeah, so wonderful!
Not saying you, but New Yorkers have lowered North Carolinian culture and moral standards over time. I love upstate New York it’s beautiful but it’s the other parts of the state that people come down to nc and have created a different vibe. For sure.
I disagree. What’s above your means now will not be in a few years if you progress like an adult. A home is an investment stay away from buying new cars
I bought a five bedroom two bath two car garage about 25 years ago. Path to happily ever after
As a German, I’m always so fascinated by American houses. All the houses are a mix of wooden frames and plywood.
It’s certainly cheaper than here in Germany and allows for more creativity in building, but somehow, I find this construction method rather bad.
And yes, I know that Americans tend to move frequently, but the energy costs (heating and air conditioning) are still relatively high.
I believe that, in the long run, a more efficient construction method would be cheaper.
Energy cost is 11 per kw/h where I live. A few years ago it was 9 per kw/h. We have these things called nuclear power plants.....
FWIW I do really like the German style shutters. Wish I had some.
Long run is never factored in the US. ITs always short term profit. So build as cheaply as possible and sell for as much as possible.
Everyone knows a better constructed house would last longer, have less issues, etc. But this also takes longer, and costs much more.
The home prices are already at the limit of what the typical american can afford. Any higher, then its no longer a feasible idea.
And these companies certainly aren't going to make less profit.
You probably will not want to mention my situation on your show. I really enjoy listening to you especially when you mentioned you moved to NC from NJ. I also was raised in NJ. I rented a house in Medford before buying a house here in NC in 2007. (that's right, just months before the crash) We bought a house in Goldsboro with a 30 yr mortgage, then refinanced to a fifteen year. I paid it off a couple of years ago and because I live in NC, my taxes are $1,700 a year. I know that 17 years ago is another time and space from now, but I thought I direct this to you because you could still do this in NC.
I’ve lived in nc for the last 10 yrs. Husband bought our house back then. I drive an hour to work, which was common for my field at the time. The farther out houses are/were WAY cheaper. Now all the younger folks (wow I sound old) complain they will never be able to afford a house. They pay $$$ to rent in the city w a 15 min commute. They want a 3 bedroom house with a nice yard and a 15 minute commute. People don’t know how to sacrifice. Those that do reap the rewards
@@Lauren-yq3dsYou got that right!
@@Lauren-yq3ds made me feel better about my 45 mins commute. Bought a home in rural area in VA with 2 acres of land and a large 3k sqft home brand new with 4 br and 3.5 ba.
People need to understand that literally everything requires maintenance. You buy a car expecting to do repairs and preventative maintenance. Houses are the same, appliances are the same, yards are the same, our societal infrastructure is the same, even relationships with others are the same.
I budget for maintenance and repairs like it's a bill. Actually budget for scheduled maintenance and set aside a little each paycheck for an emergency fund to cover repairs. Got slammed with a new water heater, new AC and air handler, and new transfer case on the truck. No problem. It was covered and I'm building it back up for the next inevitable failure.
Long story short, 2 sump pumps, live near river, one started on fire, race against clock before basement floods. $500 gone in hours right there. Apartment people will never understand. A house is W O R K.
@@michaelgibbs309 yea that first girl sounded completely in over her head cause she thought buying a house was like buying a bag. Literally anything could go wrong and you have to plan for that, too bad you bought a bunch of ‘luxury goods’ at mommy and daddy’s instead of saving.
I lucked out and bought a fourplex with an FHA at $185k back in 2020 at an APR of 2.25% and brought up the rents to $650/each after I made a bunch of mostly cosmetic repairs and simple functional fixes that the previous owners couldn’t be bothered to fix. I’m cash flowing about $1k/month and the tenants are paying off my mortgage. Mortgages are great if you know what you’re doing but buying a home that you barely qualify for is gonna keep you poor for the bext 30 yrs, especially in this economy
The first woman is a perfect representation of the vast majority of young people. This is why I told all 3 of my children they would pay rent upon turning 18. I also had them pay for half of their first car. They were then responsible for the insurance, gas and repairs (parts only I did the work for them) and they had to my for their phone bill. They all chose to move out at 18. I was not going to provide a luxury life to my adult kids. I educated all of them about finances and the value of hard work.
Renting may be good if your younger but not when your older. We could have taken the proceeds from when we sold our home and used that to buy a very very nice home. We chose to get a home we could pay all cash for.
Not having any debt whatsoever at our age is a financial necessity. The average price for a studio apartment in this part of Colorado is over a million. Consequently everything we need to do like plumbing, electrical repairs cost significantly more than in other areas but with no mortgage it's doable. Thankfully insurance is lower. Our combined house and auto is $1400 annually.
Property taxes are higher but as valuations have more doubled since 2021 it's not such a bitter pill to swallow.
Point being in most cases it's better to think long term. Be house poor when your younger and bringing in a weekly paycheck and be house 'rich' when your older and have very limited financial resources.
25% of the homeless in this country are elderly. Just something to consider.
What possible point is there to having equity in old age? you still have to remove the roof over your head to access the liquidity to live. And you still have to live somewhere, and that cost is not zero. More than likely, every time you move you reset that inflation adjusted cost baseline, so you're not saving anything. Primary residences as "investment" is an oxymoron. The only way to make that math make sense is to downsize, but downsizing isn't cut and dry. In most jurisdictions you can't purchase a small home for less, at best you're eating all the equity to buy a crap box, which negates the incentive to do the downsizing. Moving to a lower tax state often comes with other tradeoffs too, like terrible weather and politics. It's just not an apples to apples trade. To wit, if the downsize was soooo great, you would have made it your first home in the first place. most downsizers are just not making that argument in good faith/
there's also a non-zero opportunity cost to being house poor in young age. Your life is definitionally limited to going to work to pay for the house debt and maintenance. What a wretched and limiting experience.
This is SO true of our predatory, capitalistic society here in the US. My dad completely remodeled my childhood home and did all of the plumbing, construction, masonry, and electrical himself in over 20+ years of quality labor. It really amazes me now considering the challenges of home ownership now. People seem to view buying a home these days also as some kind of status symbol that separates them from “renters”. As you clearly point out, it’s not always the best decision.
There are plenty of nice homes under $250,000 if you move to a smaller, but still nice, city. With so many people working 100% online, they don’t have to live where their work is any more.
This video actually made me pretty relieved with my house purchase, I bought a condominium in an 1890 Victorian building that has been maintained by the association. NONE of these issues have come up, and the building is rock solid and well-insulated. Most things that need maintenance or that would be expensive to fix are covered by everyone who lives here and not just me. There IS a lot of shoddy flip-work in my unit in the form of 'updates' but they are mostly cosmetic and I plan to rip them out and replace them with better versions (doors, cabinets, etc). Also I paid less than 240.
So many people also forget to factor in closing costs. If closing costs are 10k and you only own the house for 5 years, that’s over $100 a month you should consider as part of the costs.
If you're gonna buy a house and have never seen the inside of a hardware store, you either need to buy way under your limit or start learning how to fix shit. My home is 100 years old and i was doing construction with my father at 13 and theres still things like adding piers to lift my home 5in thats expensive that ive had to do ecen after sub contracting out was about $50k that most other prices for that work was closer to 90k
I grew up in the 1960s/70s and single people did not buy houses. Married couples starting families with stable employment really stretched themselves financially to buy a house. Children still living with their parents and unsure of career plans did not buy houses. In the 1980s and 90s condos got introduced here and sold to young single people. Now most rentals are privately owned condos so rent gets jacked up to meet the mortgage payments.
Lots of single living nowadays with less families for sure
my parents house is over 230 years old, of corse it needed things like a new roof, new plumbing and stuff at some point, but at least its not falling apart because its build out of massive field rocks and clay. I can't imagine living in a house built out of wood sticks and toilet paper.
I’m from the UK and American homes look nice but really flimsy, do they not build houses out of brick as most seem to be built with timber?
I live in a very high cost area (Brooklyn, NY) a studio apartment no bedroom goes for almost half a million!! Yes! That much n and I can’t move because my mother is dependent on me moving with her to an area that requires driving her around is a big no for me because she refuses to learn how to! i wont loose my last bit of independence from her !
My dad made good money buying fixer uppers and renting some and reselling others but he did it very slowly. We also had a weekend cabin just outside of Miami in the Everglades that we would enjoy for years every weekend. He taught me to try never to borrow or charge unless it was an emergency. Also always buy under your means and be sure you have some savings as a cushion when something breaks or a tenant doesn’t pay, etc. As a kid we went to one of my dad’s employees home and it was huge and nicer than ours. I asked my dad later why our house wasn’t as nice. lol. He said because he would rather enjoy vacations and doing things as a family rather than be house poor. That was a new concept I never forgot as a kid. Too many people feel they have to buy too big a home and it must look like a model home with all the bells and whistles even when they can barely afford it, if at all.
I have never bought a home up to what I qualified for. I have always bought lower but comfortable. And it helped me survive the prior market collapse and Covid, etc. Also I try to stay debt free other than a small mortgage, if necessary.
Bouncing on your comment about “buying isn’t what it is cracked up to be and may be better to rent”: I worked in real estate and from experience, buying a home isn’t only about monthly payment but how to secure your older years. Rent is going up, house prices too. IF you can buy a house now and pay it off before retirement, do it. You may not be able to pay rent forever since you won’t be working and you may depend on social security. Buy to Airbnb is greed. Buy to not pay rent isn’t a good enough reason. Or use the equity for your medical bills. Whatever it is, buy a house with security in mind. You WILL be vulnerable in your older years.