5 Times Renting Is Actually Better Than Owning

[@vanessabogaert2104]

Back in 2007 everyone-and I mean everyone- nagged me about buying a house! They kept telling me prices were going up and up and if I didn’t buy right away, I’d priced out of home ownership. Luckily I didn’t listen, and used my savings to buy my office building that my business was located in(commercial property was much more reasonably priced at the time). Less than 6 months later the home market crashed! I finally bought a house in 2012, with my house half the price it was in 2008. Buy a house when it’s right for you, not because other people are scaring you into it!!

[@allhailjesuschrist5753]

go girl!

[@Eddison33]

A friendly reminder for some non-American viewers: buying real estate is not always a good idea when you live in a politically unstable region with a constant threat of military invasion.

[@PLee-vu6mp]

hope you are not in the thick of it. take care man.

[@lowwastehighmelanin]

Yeah. :(

[@snachicat]

Sorry bro :(

[@Eddison33]

@@PLee-vu6mp Thanks for the kind words. My family's in Kyiv, and it's almost safe there now. But the sheer number of my compatriots who weren't lucky...

[@isaac10231]

@@Eddison33 You still ok?

[@emimac182]

We decided to sign another year lease at our apartment. We work 10 mins away, Our kids have a pool we’re 15 mins from the beach and the landlord takes care of the repairs! It was a no brainer and exactly what we need to be carefree and present in our childrens lives. Thank you for recognizing that everyone’s needs are different and homeownership is not only a privilege but sometimes a burden.

[@eckankar7756]

I hope this continues for you. I'm retired and SO grateful I've got a paid off home. My taxes and insurance is $107. a month. Home maintenance is minimal and I saved up for them in sinking funds over the years so I'm ready when they occur. What you do in your 20s, 30s and 40s will determine how you will live in your 50s, 60s and 70s. Be the little pig that built the house of bricks, not straw. The wolf always shows up at your door one day.

[@emimac182]

@@eckankar7756 more like the tortoise and the hare. I’m in no rush because I know I will arrive. Thanks for your concern.

[@eckankar7756]

@@emimac182 The tortoise wins the race, as long as he's heading in the right direction.

[@vernonkellogg543]

A lot of up front costs do you think when trying to buy a home by yourself for 320K?

[@proper.role.model.819]

For some reason people seem to think they've MADE IT BIG by owning a home and all. It's not the American Dream like most think it is. This is why people get in over their heads because it takes a lot to own a home.

[@DonaldMark-ne7se]

Back in the day, when I purchased my first home to live-in; that was Miami in the early 1990s, first mortgages with rates of 8 to 9% and 9% to 10% were typical. People will have to accept the possibility that we won't ever return to 3%. If sellers must sell, home prices will have to decline, and lower evaluations will follow. Pretty sure I'm not alone in my chain of thoughts.

[@Jamessmith-12]

If anything, it'll get worse. Very soon, affordable housing will no longer be affordable. So anything anyone want to do, I will advise they do it now because the prices today will look like dips tomorrow. Until the Fed clamps down even further, I think we're going to see hysteria due to rampant inflation. You can't halfway rip the band-aid off.

[@kevinmarten]

consider moving your money from the housing market to financial markets or gold due to high mortgage rates and tough guidelines. Home prices may need to drop significantly before things stabilize. Seeking advice from a financial advisor who understands the market could be helpful in making the right decisions.

[@JacquelinePerrira]

I will be happy getting assistance and glad to get the help of one, but just how can one spot a reputable one?

[@kevinmarten]

Carol Vivian Constable is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment..

[@JacquelinePerrira]

She appears to be well-educated and well-read. I ran a Google search for her name and came across her website; thank you for sharing.

[@reddffox]

Bought my house in 2016. Two years ago I spent $7,000 on a new roof (which was CHEAP because my dad is a saint and offered to do the labor for free). Last year I spent $7,000 on foundation repair. This year, I'm looking at at $4,000+ to get a mini split A/C installed in one room that's not connected to the central A/C (TBD how much the electrical job will cost to get a power supply where it needs to be), and replacing carpet with laminate in the three bedrooms (hundreds of dollars each, *if* I can DIY it). I love my house, and I love that it's enabled me to have some things I dreamed of, like a backyard and a dog. But it is SO much more work and major expense than the one bedroom apartment I rented before. And when it comes to upkeep and repair, you're on your own to research, understand the issue, seek contractors that you can hopefully trust, etc. Homeownership ain't a walk in the park. Definitely not something to enter into lightly or because of societal pressure.

[@smokey5lbc1]

This! This right here is what has me wanting to take a “break.” I was quoted 3x as much to replace my roof. I’m not in the same mindset or life position that I was in when I bought my house several years ago either. Unfortunately, the rental market everywhere seems to be insane. Damned if you do; damned if you don’t.

[@Emmere]

The argument that renting is “throwing away money” has always been a terrible one. How can paying for a necessity to avoid homelessness be a waste? I thought about buying, but decided to hold off because this market is insane and my expenses would triple if I were to buy a home. Instead I’m using that money to invest. Maintenance cost for homeowners continues to increase due to inflation, utilities continue to increase, and property taxes for many people I know has increased 30% percent. Homeownership is expensive and cost are definitely not fixed. People forget one of the best investments you can make is in yourself. Instead of stressing over a house in this crazy market, I invest in skills that will continue to boost my salary. I have the flexibility to move towards jobs that pay more as a renter vs a homeowner.

[@randym8833]

As a lanlord I appreciate your post. Lord knows I need someone to pay my taxes, repairs, maintenance and my home equity for my properties. I will make sure to spread your thought and well typed post.

[@wombat4583]

It depends. There are some who pay similar amounts for a house but then have an asset at the end of it which builds wealth and can be sold if needed whereas rent is solely to have a space to live. 'Just necessities' should be the baseline for society so while it is needed it's not in anyway exceptional to say you have a place to sleep and hopefully cook. Edit: I used to be perfectly content living in an apartment but I'm at a stage in my life where having a house is more desirable (not that I can think about it with my current income). Not having to fight over laundry spaces, not having your comfort be dictated by what noise and activities those around, above, and below you make, have a personal space to do whatever I want without seeking permission, not constantly trying to connect to management because they are already running around for everyone else.

[@turtlescanfly7]

If renting is throwing your money away then so is paying for water, electricity etc because your not building equity and won’t ever own it. The same logic would say that everyone needs to dig a well and get solar so they can own their water and electricity. It’s ridiculous. Paying for a necessity is never throwing money away

[@PeukinsPoint]

Exactly how I'm thinking.

[@MrTearyOne]

@@wombat4583 "but then have an asset at the end of it which builds wealth and can be sold if needed" If you sell your house to 'cash out' on the value, then where are you going to live? You see that's the fundamental problem of treating a house like one treats stocks: a place to live is a necessity and you can't just 'get rid of it' without finding some sort of immediate replacement.

[@jazzgirlie]

the biggest issue i've had consistently as a renter is that none of my property managers/landlords have ever shown any consideration, accommodation or respect for me as a human being. Rental properties are for profit only, and therefore the owners cut costs to ensure higher margins. But in my experience the costs they cut, are basic amenities. If a pipe breaks in my house, I can do any number of things to fix it. When pipes busted at 2/5 apartments I've lived in in the past 6 years, we've had horrible "solutions" that often involve huge costs to me, the renter... It's not attainable for everyone who wants to own property to do so, because of a whole host of fucked up policies, but in my experience there was literally no upside to renting. If I had been treated with kindness and respect as a renter, who knows how long I would've waited to buy property.

[@glowinglimes]

I decided to buy a house after the boiler in my apartment went out and it took a week to get it replaced. Then after it got replaced, it went from being 50 degrees to 80 degrees. I’m over someone else controlling the temperature of my living space

[@rba4377]

yes! I rent a unit with major mould issue (obvs not disclosed previously) and i spend so much time and MONEY wiping, dehumidifying, maintaining.. the landlord doesnt wanna get a mould specialist and tradie to deal with poorly sealed windows (he is a Doctor with other rental properties) and he just put up rent up for this old building which is the cheapest we can get before we go for such a low price that comes w even worse problems that can affect our health (during a pandemic). I dont want kindness.. i want the bare minimum Im paying for with my money and responsability. I would rather spend time fixing issues in my own place.

[@pri2x0x]

do you not have a landlord tenant board to take complaints and get compensation for?

[@fury_uri]

This. The freedom to make your own repairs and do it right. Control and freedom over your living space is hard to beat at times. I'm currently in an apartment though, and I like not having to worry about a handful of things that may soon need to be repaired. If/when I buy a house again, the yard work will be minimal. I enjoy it, but it just takes up too much time (relatively speaking) for this period of my life.

[@shawnise]

My issue I have with my current apartment is the fact that they have in their lease "things that count (or don't count) as an emergency" which includes if your stove or refrigerator goes out that's not an emergency. (I have known people that lived here who's refrigerator went out and it took two weeks for maintenance to come and try to fix it. All their food spoiled that they just bought.) Currently my oven is out, theres no word on when it'll be fixed. Good thing I have a way to cook food other than that oven. The A/C isn't an emergency if it goes out either. I also have a patched up A/C that I don't know when it'll go out again. But this place is a little better than the last when the pipes in the apartment above me burst and started to flood my apartment and the complex said it's nothing they can do for the messed up molding carpet in their apartment (I wasn't even asking about my furniture, I wanted a mold free carpet) but it's nothing they can do. So yeah, I'm looking to buy a home where I can fix on my own time.

[@rba4377]

I think this depends on the market. I live in Australia where the housing market has only gone up since always and forever. Its common here for landlords to take almost a year to fix an issue, they can also boost up rent prices overnight for no reason, the philosophy here has always been get in as early as possible otherwise you have no chance and rent is also super high and landlords not reliable.

[@dutchkim]

I think renting, as much as home ownership, can be either smooth sailing, a rough ride or a mix of both. Legislation in Australia ensures urgent repairs concerning safety, security or comfort (e.g. hot water) must be completed within (in most cases) 7 days. Legislation also prevents landlords or real estates from changing rent prices overnight where a current lease is in place. Admittedly, protections around how much the increase can be have been eroded, however the timing and notice for an increase is part of the contract. There will always be unscrupulous people who refuse to behave responsibly but I have found most investors want to protect their investment, not neglect it. And finally, while rent has increased post-Covid and is indeed has sky-rocketed in some cities, this consequence is found almost everywhere around the world. The Australian housing market is the Ponzi scheme this great country has been built on so it's not surprising the messaging is built around FOMO for non-home owners. TLDR: I agree with TFD, there are times renting is better.

[@iloveprivacy8167]

No matter where you are, a good landlord is a rare treasure.

[@Kelseyveg]

This sounds like Canada too :(

[@elinat2414]

Exactly! Thank you! I live in Australia too and just bought my first place at age 26. I would rather pay my own mortgage than someone else’s. Renting was a nightmare. Our stove and blinds were barely operational and the landlord did nothing. At least if you own your own house, you can fix these things yourself and the work will be benefiting you (and not the landlord’s equity). I understand that for many ‘just buying a house’ isn’t really practical. But I think the only reason not to do it if you have the money is if you are planning on living overseas for a long time and/or are unsure about where you want to settle down.

[@rba4377]

@@dutchkim lolol legislation ensures nothing, is there but means nothing. I've rented several places w sanders and took several months for action even w damage on their property, same for severaaaaal family and friends. Not saying rent or buying is better, as I said it depends on market, but I do know that for the past 2 decades all my family members and friends that live in their property are better off that my partner and I even though we are more frugal I currently spend so much money on running a dehumidifier all day long, buying wipes and mould product and wiping it myself because landlord doesn't want to fix windows seal issue or get mould specialist even if it's damaging his own unit. And he just put rent price up for our old shabby unit and everything else renting wise is more expensive. Total bs

[@NullPointerException7]

Thank you for this video. My mom is a real estate agent and I had it drilled into my head that renting was throwing money away because you don't build equity in the property. Renting is a waste because a mortgage is cheaper than rent. Even if you need to move suddenly you can just rent out your house and have the tenant pay your mortgage for you. Etc etc. The equity thing and the tenant thing are still true, but like you said, the bar to homeownership is much higher than it has been. In 2010 she bought a house for 80k. That same house is like 150k now. A mortgage is no longer cheaper than renting because the housing market is so insane at the moment. People that make 6 figures are getting outbid by cash buyers and investors. It's disgusting.

[@ElementZephyr]

It completely depends on where you live and the culture around you. If I had a choice, I wouldn't want to live in a sunny California beach area only to deal with shitty neighbors and greedy af politicians. I really wouldn't care about the homeless at that point if everyone else are pos people. People are waking up more to the prospect of working from home or living in places where commutes aren't a killer. I think a lot of us were misled into wanting to move into areas that have become crapholes with terrible neighbors and politicians. I'm a little biased for Texas and Florida and biased against CA and NYC, but I see that basically people are being sold that those are dream places to live and when you get there people are just crap.

[@eckankar7756]

I bought my house when the interest rate was 13%. It motivated me to pay the mortgage off in half the time. I was a hairdresser and worked 60 hours a week to make the extra payments. I've not had a mortgage in 25 years and continued making those same payments into investments. It was tough at the time but an easy ride for decades now. Now that I no longer have the stamina to work, I'm so grateful for my paid off house and savings. What you do in your 20s, 30s and 40s will determine how you live in your 50s, 60s and 70s. Choose as if your life depended on it.

[@residentevil4life]

i rent and have been living in the same apartment for over 10 years and I honestly can't see myself ever leaving as the rents in nicer and newer buildings are completely out of range. My biggest gripe with renting is dealing with the building's god awful management company and fear that one day I will be forcibly evicted. I would have rather bought a home when they were mildly affordable now if I had the chance that continue dealing with these stresses

[@Pikminiman]

1:16 (1) You need the flexibility of renting 3:23 (2) It's not in your budget to cover the additional costs of owning 5:33 (3) You're still building good credit 6:50 (4) Current housing opportunities are not good investments 10:09 (5) You want to keep living in a high-cost-of-living city Thanks for talking about this.

[@saschamayer4050]

Thank you 😎👍

[@ColinAdventures]

Both renting and buying look like terrible options in my area. I chose to get out of real estate and bought a bus. It’s definitely not free, about half the price of renting though, and has its own set of problems but overall quality of life is way better than when I was renting an apartment. I’ll either wait for real estate to eventually make sense again or move somewhere where it does.

[@eckankar7756]

I hope you are still bringing the same income and saving the rent payments for investments, buying property down the road, retirement. I find many that take the van life also quit their jobs and make a fraction of what they did prior to living on wheels. Making enough to get by is not progressing. You just have to make more than enough to save and invest. The day will come you will need a nest egg to fall back on. Remember the story of the Grasshopper and the Ants.

[@movingforward2570]

Aye! See there are still other options available against rental. It depends on the person and your preference and not everything is about money. Plus there are people who prefer to live and work in their vehicles that don't bind them to a 1yr lease and increases.

[@sarahgullickson2872]

I LOVE THIS!! Thank you TFD. I live in my hometown of Bozeman, MT that has become a destination for tourism, tech companies, white flight, and everything else EVEN before the pandemic. In 2018 the average home price was around $400,000 and is now closer to $700,000. I could never imagine buying a home so close to half a million and now I can't stop asking myself "who the hell wants to buy a pos single family home that's run down for $700,000?!" It's wild. But it makes sense from the perspective of people moving in and seeing that housing type as super affordable compared to where they USED to live. A lot of our base economy jobs aren't being filled because of housing affordability, which leads me to wonder... how will our economy survive in the next decade or so if people who run our grocery stores, gas stations and the like just can't afford to live here? Our local hospital is building employee housing due to the fact that DOCTORS are finding affordability an issue. If it weren't for the fact that I rent from my cousin, we would definitely be living elsewhere. Long story short, TFD... an interesting premise for a video may be centering how supporting affordable housing affects local and global economies...???

[@abbyabroad]

WOW. I’m planning to move back next year from a job overseas, but just… wow. Renting it will be!

[@Alice_Walker]

That's such a great point

[@ariwl1]

My sister lives in Bozeman and can absolutely confirm the whackiness. This is something I think about a lot because something has to give at some point but there's no indication where or what. Where I live not even a decade ago I rented a nice modest one-bedroom apartment for about $750 a month. Now that same place guaranteed goes for at least twice that much. The average person's wages definitely have not kept that kind of pace. I remember feeling so frustrated at spending so much time working and saving and living with roommates to eventually hopefully just RENT my own place and I was so happy when I finally could. Then the market jumped and continued to jump and now the only reason I can still manage a 1BR on my own is straight up luck in finding a good spot before things skyrocketed.

[@sarahgullickson2872]

@@ariwl1 It's so true that being in the right place at the right time doesn't just apply to home ownership now, but to rentals as well. The hardest part of the puzzle is advocating for rent and housing regulations in a state that is run by business people and developers. All they can see is the max amount of money they can squeeze out of their residents before they're forced to relocate. Not a very good long term strategy in my opinion.

[@ariwl1]

@@sarahgullickson2872 For real. I live in a fairly progressive area and still our housing has just been getting more and more bonkers. And it doesn't help that we're pretty landlocked so there really aren't many places to build new housing.

[@gneissnicebaby]

Thank you! I worked in real estate a couple years before the pandemic and in property management years before that. Something I saw happen far too often during my short time in real estate was young people turning around and selling their first home in less than 5 years because they got a new job. Every time this happened, these people ended up paying money to sell their home, meaning they got literally nothing from their investment and absolutely lost A LOT of money. One seller had to write a check for nearly $10,000 so they could sell their home and move out of state to their new job. This scenario doesn't happen to everyone, but it's something to be aware of, especially if you are someone who isn't 100% set on staying where you are for at least 5 years. Remember, a house is a long term investment.

[@breyrey7612]

It's not the market's fault if you made the decision to accept a job where you end up losing a lot of money in the process.

[@abbyabroad]

I appreciate this! I’m about to move back to the US and would love to own a home… eventually! But I had an acquaintance stuck in a similar situation wherein they were paying for YEARS for one home after moving for a job. Just… wow.

[@BigBrother04]

​@@breyrey7612it never is the market. What's the market anyway? And the OP wasn't laying faults, just warning new buyers. Also at times people have no choice but to move, for multiple reasons. Heck people even migrate countries 😂

[@realnapster1522]

That’s why agent fees should be illegal. It shouldn’t cost anything to sell the home online in age of internet. US real estate industry needs disruption.

[@justingerald]

I also just don't want to deal with taking care of a house, so we're basically paying to have certain things taken care of, and, like you said, focus on other forms of investment. But we also want to stay in a dense, transit, walkable area, and we could only afford some place in the sticks or something. Which is fine for some but not us.

[@ZePopTart]

I frankly cannot wait until I’m the one dealing the repairs. That way, at least when it takes a month to fix something important, it was because it made financial sense for me, and not because my cheap ass landlord saved $20 by leaving me without a functional kitchen for two weeks.

[@MissVasques]

Thank you. Too many ppl bash on renting without seeing potential benefits too. Here in Sweden we are also somewhat protected as renters, like a standard 3 months notice of moving/leaving.

[@sophia_jane]

I've always had remarkably good luck finding reasonably priced apartments with good landlords, and I don't like the idea of being tied to and responsible for a piece of property at this point in my life, so a renter I shall remain

[@Rikku147]

Same. I especially don't want to buy a home in a state I know i dont want to live in for the rest of my life.

[@jampsonn1826]

I've heard nothing but shit from my family about how I'm wasting money renting and I should just buy a house. Why would I do that when I've never lived anywhere longer than 4 years as an adult? Why would I buy a home if I plan to move states again? I'm 28 and still not in the physical place I want to be in, so another move is in the future - maybe that will be the one where we buy a house, but we'll for sure be renting until then. Neither me nor my partner have the time or money to deal with housing and maintenance costs, so renting has always been our only option, yet people don't view that way and think we're just not "settling down" or whatever (also bc we're not married yet). I'm happy that home buying is an option for some and that people are happy to set up camp for 5+ years in one place, but as nomadic as we have been, it's never made sense for us. I can't wait to own a house someday, but I'm definitely not in a rush. ✌️

[@TheWillRogers]

i've got a credit score of 800 and all the pre-approvals were for 5.4%-6%. They wanted us to lock in since the rates are going to keep climbing. But at 5% we were still looking at total housing being 50% of our income so we just had to give up. Making over two times the average income here just isn't enough.

[@Kay-kg6ny]

Where are you located, if i may ask?

[@lowwastehighmelanin]

That's CRAZY

[@brendakrause5639]

Same for me. Rent up to half my income. I live alone on disability income.

[@ClaudiaRealegeno]

I feel ya, it’s similar here in Seattle.

[@jazzgirlie]

this is the truth in most urban areas in the US sadly ^^

[@LaurenAnne6]

I love your videos so much!! I'm 36 and very ignorant to all of the investing tips ya'll share. Until today, I hadn't started investing in retirement. I didn't realize how little I needed to be able to do so. I'd love to see some content directed toward folks closer to 40, who severely stumbled in early adulthood (I struggled with addiction and sever mental illness), with tips for us to maximize our retirement fund potential.

[@supernova622]

Congratulations on making it through

[@LaurenAnne6]

@@supernova622 Thank you so much!!

[@colaty8P]

i'd recommend the podcast bad with money by gaby dunn!

[@LaurenAnne6]

@@colaty8P Ooo, thank you for the tip! I'll for sure check that out.

[@vee9043]

You'll be fine. My mom didn't start saving until her 40s and she's almost 60 and retired during covid with multiple six figures in her IRA.

[@Ronsonpeters]

Honestly… now that the housing market has crashed twice in my lifetime….I feel like the strategy is to just save/invest for when the next crash happens.

[@MCSorry]

Point #5 is extremely important for me: I love near Montréal and expect to move there for studies or work eventually (and also because I hate the suburbs and prefers being able to walk/use public transports. When you look at the cost of public transit vs. car ownership, urban density, the economic and cultural life, it makes more sense to me to want to live it the city. Also taking into account that I don't plan on having a family (let alone have a romantic partner), I'm comfortable to either simply rent my whole life or buy a small condo appartment. (Now, with the housing costs rising in Canada now is not a good moment to buy - especially for a student - but it's on my mind for the future).

[@teodorar.6468]

I don't know how it is in the US but in Europe in most countries you can rent a much nicer place than what you can buy with the same set monthly budget. Especially considering the lack of unexpected maintenance costs as that is covered by your rent.

[@fury_uri]

Sounds like it's time to move to Europe!

[@FoxInTheBasement]

Are you comparing mortgage vs rent or are you comparing fees that dont contribute to principal to rent. The latter is what you should be comparing whe you say "you can rent a better place for the same budget".

[@teresamesa]

depends on the europe, in my hometown renting will cost you three times as much as a mortgage.

[@teresamesa]

@@Jazz-fg2dm it's true for me, that's why i said depends. i'm in braga - portugal. a new/renovated 30m2 one bedroom apartment will cost around 115k (mortgage on a variable rate 300€) and rent will be 600-800€.

[@teresamesa]

@@Jazz-fg2dm sim, 40 anos com os 10% de entrada. Vi na cgd. Se pagas mais é mais 10-20€. Não sejas desonesto.

[@justingerald]

A tree branch (of a giant tree) fell on my mom's garage growing up. Messed it all up. And then the next year the rest of the tree fell. I did not live in the woods, I lived in Brooklyn. (We had a bad neighbor who didn't cut his dying tree down so it became a whole legal kerfuffle.)

[@eckankar7756]

Lesson learned, have the city trim the tree before it falls on your house. It's easier to prevent a problem than to correct one. Do what you have to do to put the odds in your favor for a positive outcome. Neighbors had a similar situation, a huge dying tree next to their property. I had them call the city, the tree was removed before it fell. The property owner was mad to have to pay for the removal but I thought, cheaper than a lawsuit when the tree would have fallen on neighbor's homes.

[@chonchoco]

In Japan many companies financially support their employees on their rents (e.g., around additional 20,000 yen monthly on the salary), and this is seemingly another factor we japanese consider on renting vs. owning.

[@robocop581]

mortgage rate in Japan is only 1%. That's ultra cheap to buy

[@BigBrother04]

That's strange that they don't do the same with mortgage. I think south African government has such scheme for their employees but I think it includes mortgages

[@praecorloth]

Samsies. I bought my house as the economy was starting to recover from the 2008 crash. People be like, "When you gonna sell that starter home?" And I'm all like, "WTF is a starter home?" :D

[@eckankar7756]

in 2009 I stumbled on 1600 sq foot 3br/2ba condos that were almost completed but the builders went under due to the crash of 2008 so the condos were nearly completed. The condos need some dry wall, flooring and finish the kitchen which wasn't the much. They were being sold for $10K each!!! I bought 4 (I wish I bought more). I finished them and have been renting them out to very good tenants. That 40K in investment in 4 condos now worth over $1M. You never know when opportunity is going to knock, but when it does you just have to be ready for it.

[@lubnan08]

As a homeowner, I am always bleeding money. Constantly fixing things. And HOA fees keep rising. Property taxes are very high.

[@lowwastehighmelanin]

Oh HOA? Nah I can't deal with those. I still do not understand why they exist...

[@stacyjaye6350]

No sympathy for anyone in an HOA. You got it so you can be a cut above the rest of us. Better not step your toe over any lines, though. Please tell me why in God's name someone would join an HOA, giving up their precious freedom, to keep the riffraff out. Then you realize, the HOA is the riffraff 🤣

[@stacyjaye6350]

@@lowwastehighmelanin 💲🏧💰💵💸🤑

[@amyjasmer7943]

Unfortunately where some live thats all thats offered. UNLESS you want to buy an older home that is overpriced AND that also needs 25000 dollars or more worth of work done to make it livable.. I will say HOAs were invented to try and keep your property and others around it from depreciation. As I live in an HOA I am not a fan but like I said we didn't have much of a choice. 🤷‍♀️

[@FoxInTheBasement]

If i had bought a home instead of renting i never would have been able to quit my accounting job and go back to school for comp sci. The best decision i made of my life was finding the cheapest yet acceptable apartment i could find. My annual rent is definitely cheaper than the opportunity cost + maintenance +insurance + property taxes, let alone all the "interior design creep" that comes with being a homeowner.

[@robocop581]

That's for now. Wait till you're 65 and staring at 20 more years of renting. Most renters never calculate the lifetime costs versus a 25 year mortgage which ends in 25 years vs 50 years of renting

[@FoxInTheBasement]

@@robocop581 yeah but notice i said "my" life. Compare the dramatically higher earning potential as a software engineer versus the salary of most controllers in accounting. People in personal finance focus too hard on the savings, earnings in reality are more important. The flexibility opens oppurtunities that being a single income homeowner in this interest rste environment can't.

[@dannypakaz]

@@robocop581that’s why if you rent you NEED to invest. Otherwise, it’s a waste. If you invest AND rent, then renting beats owning.

[@robocop581]

@@dannypakaz What makes you think homeowners and landlords don't have stock portfolios?

[@consumerdebtchitchat]

My 675 sq foot 1 bdroom, no w/d apt was $700 in 2013. In 2020, when I moved out and got my condo, the rent was 1k. Now - 2 years later, it's renting at 1,600. and climbing. NOT a bargain.

[@AnnelisR]

It’s crazy to me that people say renting is throwing money away. If you have a roof over your head, that is NOT a waste.

[@BusterDarcy]

We were renting in wildly expensive toronto and moved to neighbouring city Hamilton to buy out first home. For the same as we paid per month just for our one bedroom apartment’s rent we got a three bedroom house with all the costs like insurance, property tax, etc, plus a new car’s monthly payment AND the car insurance. I’m not exaggerating, we got all that for the cost of our rent in toronto, and we still get to live in a cool city that’s also just an easy train ride away to toronto whenever we feel like heading in and don’t want to bother with the drive. In the context of our experience, and everyone’s will be different, buying turned out to be much, much better than renting.

[@carmelle4ever]

I imagine that if you bought in Toronto, you would have paid more than your rent was with all the extras. Buying and renting are always better/cheaper when you move out of the high priced area even when you’re a short distance away.

[@cleeks5549]

@@carmelle4ever Yeah but then you have to live in Hamilton igh. Lol I kid I kid. Still, I wouldn't say it's a super short distance away, Hamilton is about 2 hours by train plus when you get to station you need to get where you want to go in the city. That's well and good if you can work in Hamilton or remotely, but it sucks for anyone trying to commute in to town daily. A supposedly 30 minute drive can be hours. It's a really tough choice - commuter hell/nice house or rent in city/better-ish commute. Such a shame, I love Toronto but it's a nightmare

[@Rikku147]

Err your move seems to be the reason for the change. If I rent an apartment in middle of nowhere Florida versus in thje big city I'm in right now, I'd get more bang for my buck anyways.

[@BusterDarcy]

@@Rikku147 totally agree the move was key but also it’s not the middle of nowhere which was my point. People get fixated on being at the beating heart epicentre of the largest city they can find as if that’s the only place a valuable life can be lived and that’s what holds a lot of people back. Hamilton is not toronto but it’s still a cool city with a great vibe and lots to see and do and in many ways outshines toronto and we got a house there plus car for what we got a one bedroom apartment in toronto. There’s more to it than just math is all I’m saying.

[@BusterDarcy]

@@carmelle4ever yeah exactly, there was no way we could afford to buy in toronto, which says a lot about the state of housing there because we do pretty well for ourselves and have no kids, but my point is you don’t have to be limited by the big city, there can often be neighbouring cities with a lot going on that are easy enough to move to and give you a lot more bang for your buck.

[@dannysimonknows]

Thank you for making this video, this debate is far too one sided and needs a more balanced representation. I think it's important to keep in mind that there is a multibillion dollar industry that relies upon people buying to survive and the facts across all media are vastly skewed towards buying. For a lot of situations renting is by far the better option. It's not always the best option--but many times it is and I am thankful that you pointed that out. As our society changes the entire lifestyle concept of the single family home is likely to come into question. It's already started if you consider the ratio of single family homes being built compared to multi-family layouts. It appears that the single family home is slowly becoming a relict of the past. If we add in the recent developments with insurance, increasing property taxes, the rise of HOAs, and the lack of a stable job market--buying isn't looking so hot.

[@TheFnPrototype]

Say you magically boost your credit score from 639 to 760 in one year. The price of the home you wanted to buy could have gone up $100,000 in that year. Or interest rates in general could go up over that year, cannibalizing the benefits you were trying to gain by raising your credit score. The best scenario for buying is to get into something you’re willing to pay off. The true benefits of buying v renting are seen in the long term. And if you refinance down the road, you can decrease your monthly payment and potentially decrease the total amount you put out for your home.

[@eckankar7756]

This is a crazy market.. I own my house and rental properties. If I were to consider investing now I'd get ready for opportunity to come down the road. Work two jobs and bankroll every penny you can, be totally debt free, give every dollar you earn a job to do. I don't think there will be another housing crash but I do suspect the increasing crazy prices will level out. When they do, if you've saved up a nest egg for a down payment then you will be ready when it's time to strike, but you'll have to be ready for it in advance. Be ready to POUNCE on that one good deal when it becomes available.. You only need 1 good deal. In 2009 I stubbed on new condos that the builder when out of business before completing the work. They were 1600 sq ft, 3br/2ba in Phoenix. They still needed a bit of dry wall, paint, flooring and appliances which wasn't all that much left to do. They were being sold for $10K each!!! Because of the crash no one qualified for loans. I had $40K in savings that I could pull out that day, so I bought 4 condos cash. I finished them and rented them out. Beyond what I made in profit on paid off condos over 12 years the condos are now worth over $1M for that $40K investment. I was ready to pounce that day. It was a fluke, I new nothing about real estate investing, I tumbled on that listing by accident on craigslist, but it paid off. Alway keep your hook baited, you never know when a big fish is about to swim by.

[@mandisaw]

Missed noting 3 key factors - diversity, age, and health/social services. People who aren't white, are LGBT+, or even just aren't Christian, often prioritize living in a safe community where they won't be "othered". That can affect the affordability & availability of homes for sale, as well as the future investment potential. Aging-in-place is also a big consideration, although younger people may not recognize it. The physical & mental labor of home maintenance, car-dependency, etc become much less sustainable over time, so what was a good solution in your 30s, may not be in your 50s. And similar to the above, depending where you are buying, health/social services may be less readily available, or just further away, in some areas that have very affordable homes but are less-dense. This could probably be addressed by mixing more single-family homes with multiple-family dwellings, but that's another video :)

[@callmeswivelhips8229]

Thank you for making this video. I'm 32 years old right now, and I am still a renter. What's more, I am content with that. The next move I have planned for my life is to teach English abroad and to get a master's degree. Neither of these things involve buying a home, or even a car necessarily. Yet both are appropriately mature goals for someone my age.

[@thisisnancybot]

I love my house, but it’s true that the repair cost add up fast. My leaky house has required two fixes this year that has brought me up against that average annual cost. Really hope the second half of the year is a little less eventful.

[@eckankar7756]

My home has been paid off for 25 years. I haven't had major maintenance costs. I got a new roof in 2011, just bought a new HVAC but both of those I saved up for years in sinking funds to have the money available when the time came. I'm retired, my taxes and insurance is $107. a month. Beyond the savings, equity in my house and investments it's the peace of mind having the pressure off not paying a mortgage or rent. What we do in our 20s, 30s and 40s will determine how we live in our 50s, 60s and 70s.

[@eckankar7756]

@@Jazz-fg2dm You are delusional. My rental properties paid for themselves. I put down minimum investment and the tenants paid the mortgage for me. You're so wrong what will happen when I die, I have all my estate in a Living Trust for my children, grandchildren and great, great grandchildren yet to be born. Nothing will be lost, I created GENERATIONAL WEALTH for my family to sustain, uplift and support my family long after I'm gone. I have 22 fully funded ROTH accounts which I draw TAX FREE income from (when stocks are high) and dividend funds that supply monthly income , plus I get monthly income from my rental properties that have been paid off by my tenants decades ago. Plus I have a personal IRA I've fed for years. YOU think you can outsmart me?? I hired investment pros decades ago to set up my plan and I walked that plan EVERY DAY for years. YOU are so wrong, pumpkin. I diversified from studying wealth plans from others. It's not rocket science, I followed the plans others used to become wealthy. Repeat and rinse, do the process over and over. YOU couldn't be more wrong if you tried. Do you think you have insight? You are wrong, wrong, wrong.

[@alanathebespectacled]

This is where I’m at. Paying $1050 for an apartment and the rent can only go up a set amount per year unless the landlord requests a special assessment (Ontario). The condos in my area are selling for 200k over asking. I would like to have some of the luxuries of owning like being able to renovate/paint and not having shared laundry, but it just doesn’t make sense. I’ll just invest my savings instead and hopefully be able to buy in like 15 years or something… lol

[@eckankar7756]

Right now might not be the time, but you are right...prepare and save to have a big nest egg when that one big deal shows up and you will be ready to POUNCE on it.

[@alanathebespectacled]

Jazz 007 I meaaaan, I think it’s an individual and personal choice. This plan would still allow me to have a 25 year mortgage paid off at 65 when I retire. All depends on how the market is doing and if houses aren’t selling for waaaay over their appraised value (they have started to come down recently as there was a huge housing bubble in my area). Not against renting, but I don’t necessarily want to do it for my whole life.

[@alanathebespectacled]

Jazz 007 I think you need to focus on your own financial plan rather than mine, especially since it’s causing you so much distress 😂

[@eckankar7756]

@@alanathebespectacled I've bough property for years. Jazz totally overlooks that value of a mortgage over time. Buy a house 10 years ago and payments for an average home would be about $1000 or so. Today you can't rent a 1 bedroom for that, in 10 years when your mortgage is still $1000 you may not be able to rent a closet for that price. Plus, you build the equity in your home to take out a HELOC if needed, and have built collateral if you wanted to make a large purchase you have that for a back up. I own my home and rental properties, I find great value in paid off mortgages at any age. I'd rather be 65 paying off a mortgage than 65 scrambling to find a place to rent. I also invest in stocks. Start where you can, get into the habit of saving and preparing for your senior years, soon it's fun to do, the new hobby. I feed my body 3 meals a day so I feed my mind 3 times a day. I listen to motivational, positive and financial speakers. I do enjoy Dave Ramsey's shows, they've benefitted millions. They did the largest study of self made millionaires, studied over 25K millionaires, ALL of them included a paid off mortgage in their portfolio. I've not paid a mortgage in over 25 years, ALL of that income has gone into investments, college for my kids and grandkids, estate planning for my family. Once you get the financial ball rolling it takes on a life of it's own and feeds itself. I got a great deal on my first home, got a roommate who's rent made my mortgage payment and paid all my utilities, I lived for free. Work for money and learn how then to make money work for you.

[@eckankar7756]

Additionally, I'd like to recommend a channel on YT about real estate, Kristina Smallhorn. She does a life show every Sunday afternoon with guest real estate agents across the country answering questions. She's delightful, the show is fun to watch..She has so much insight and shares freely what she knows.

[@AFSmashMan]

A huge reason why I stay renting than buying is I like walking to the library everyday where there's a duck pond, and I like walking to a restaurant, ordering my food, and walking back home to eat the food rather than dealing with the hassle of driving my car and risk getting into an accident or otherwise get frustrated by simply finding a parking spot and getting out to go home. Sure, it may take a little more time, but it's a lot less stressful to walk than drive everywhere. That's why I feel it may be the right choice to stay renting, to have the simple experience of living in a city to chill and not be stressed out living so far away from everything. Even a mile away is too far, if we were to walk it.

[@Mallory-Malkovich]

If there was a TFD bingo card, "I live in New York City" would be the free square in the center.

[@gusleonard9397]

The weird obsession with owning a house is the same in here in the UK, London house prices are extortionate. Also if you mention the stock market people think it is gambling and have no idea about it.

[@angied1178]

Although I'm with you on the flexibility piece, I don't know if I agree on the financial piece. A landlord factors in all the costs (repairs, HOA, tax, and insurance)... When deciding how much rent should be. Oh and they need to make money on it too-- so in my opinion most of the time it's cheaper to buy.

[@rba4377]

Yes, rent in my building went up 50 to 60 dollars overnight

[@sammijo125]

It all depends. You really need to have a hefty maintenance budget. In my area, if the AC needs replacing that can cost you 6k, roof 6-12k, even a broken water heater can be a couple of thousand. A landlord can spread that cost over time or multiple properties.

[@TerraBuns]

I mean you also have to have a down payment too, which in a hcol area can be super difficult to put together. But yeah, otherwise I don’t disagree with how landlords calculate rent.

[@loriar1027]

​​@@sammijo125 unless you buy a very rundown fixer upper, the house you buy should come with a decent roof and a solid hvac system. At that point you either sign up for a home warranty service and/or start saving for eventual repairs. As long as you don't buy beyond your means, this is doable. Many other home repairs can be done by the homeowner for little outlay if you're willing to learn. Home ownership is a million times better than renting IMHO.

[@sammijo125]

@@loriar1027 It isn’t only about the initial purchase but the life of the house. On a modest salary, a mortgage of under $1000 is easy, but long term maintenance is challenging. I live in Florida and storms don’t care how old your roof is. I had one friend who owned her home for 20 years and had only minor maintenance issues pop up, then a storm tore a quarter of her roof off. She had to borrow money just to pay her insurance deductible. On the other hand a friend who makes six figures had no issues paying 15k for a new septic system. Everyone isn’t in the same financial footing so you really have to think about long term depending on your individual circumstances.

[@MelissaBaguzis]

Thank you! I am so tired of people telling me im doing it wrong when all of these reasons apply right now!! Living in NY/Long island

[@Alice_Walker]

Renting is much better for me because to buy somewhere I can afford would mean in excess of 12hrs commute time each week + having to buy a car + a massive decline in my quality of life. I am so sick of being told that rent is a "waste" of money.

[@d.d.d.a.a.a.n.n.n]

the point about living in a more expensive city, but having a lot of conveniences was my reasoning for loving to live in larger cities when people I knew would wax lyrical about the cheapness of living rurally. No thanks. Owning a car, paying insurance, upkeep, etc, driving an hour just to get to a grocery store, not to mention any other kind of store, not being able to walk or take transit to my friend's houses, not being able to just walk down the street to a coffee shop when I needed a break or a change of atmosphere, all those were things I was unwilling to trade for, and actually made living in an 'expensive' city more economical than living rurally. Not to mention, since then my health has deteriorated, and I truly do need accessible, close by grocery stores and other places in order to maintain my independence. I don't want to have to rely on someone's good will and availability to be able to go grocery shopping, or get to the doctor, or pick up prescriptions, or even just to go out for fun

[@Kivamusicchannel]

This! Home ownership is not for everyone and I am sick of having to explain to people that I have absolutely no interest in owning a home unless I ran into a large amount of money such as a lottery. I want to be able to move whenever I want, and whenever and it’s hard enough to that with an apartment. I also don’t want to take care of the properly besides basic housekeeping.

[@MadisonFalcoFoods]

Same

[@arh1234]

So with you. Love being able to submit a repair request and have it done when I get home. Renting gives me time freedom to really optimize my career. No waiting for contractors to show up!

[@hallopino]

I'm right with you. I'm only now buyig a home now that I have stable work, a better income and better knowledge and skills where needing to rely on fixing my home is more of a frustration that it is a boon.

[@jenniferk4336]

Preach! I live in a large metroplex and move with job changes to avoid commuting. I love living in a beautiful, landscaped area that requires no effort from me. Quick easy reliable maintenance. Plus canals, pool, gym, tennis court, package acceptance, etc. New neighbors, new friends, new networks. Why would I give this up for the stress and work of a home, stuck in one location?!

[@tuckermay2597]

rental rates across the board in every major city are up almost 25%+, while renting may be best for some people it's definitley NOT the "cheaper" option. Yes some of the holding/maintenance costs associated with owning are higher but if you depreciate them over a year it's typically cheaper than what rent currently is, at least in my city. If I were to rent the same condo I bought I would be paying AT LEAST $500+ more per month to rent

[@rdean150]

About halfway through so far. Still waiting for the point about avoiding the liability and risk of a major natural disaster wiping out a huge portion of my net worth in a matter of hours. Back in Houston, I lived through multiple floods that made it look like my apartment building was built in the middle of a lake. Fun statistics below: According to NOAA, in 2021 there were 20 climate disasters that each resulted in in losses of at least $1 BILLION. According to CoreLogic, over 14.5 million US homes were impacted by natural disasters in 2021. That's 1 out of 10 homes. Almost $57 billion in damages. The most damage was incurred by winter storms in the center of the country. The second biggest cause were hurricanes and the floods that accompany them. Next were tornados and severe hailstorms. The fourth most damaging was wildfires. Put those 4 extreme weather risk factors together, and you've covered pretty much the entire geographic area of the US. The northeast is probably the most protected, but the intense winter storm a few years ago, as well as Sandy and Ida just last year, illustrate that we're not particularly safe up here either.

[@dzuel09]

Excellent video. So many people think owning is the end all, be all and it just isn’t the case for everyone. Timing also plays a huge factor.

[@JessieBanana]

I also feel the small walkable city. I own a car, but I spend way less on gas and less on maintenance because I don’t have to drive everyday and when I do it’s often less than five miles in any direction. I love that I am surrounded by small business that I can and are enriching to me. If it was up to me I’d live in a European county or Japan. I am fine with a small home.

[@MissGinger1123]

Yes I rent in a walkable area in which I cannot afford a home as a single person, nor do I want to take on the responsibility of repairs and upkeep, and not sure I’ll stay here for at least 5 years, so many reasons to keep renting

[@erineccentric5810]

I understand not everyone can buy a home but I absolutely prefer home ownership to renting 100%. I hated living in apartments even without roommates, you can hear everything your neighbors do and they can hear you. I am also at the whim of the landlord/property manager to fix things. My last apartment kept having the pipes freeze because it was so cold the water mains were freezing. They had the audacity to tell me to run water all the time like they paid my water bill... I'm not paying more on my water bill because of your shit infrastructure. I've been in my home almost 8 years now and it's quiet, i can decorate however I want and have already made several improvements to my home. I can also own as many pets as I want and don't have to pay extra or be limited on the breed of dog I own. I am in such a better place financially and am building equity in my home vs just paying someone else's equity in their property. So far my only unexpected cost was replacing my ac/heating unit which I knew was on it's last legs. I could have kept it limping along another few years but decided to just put in a new one so I don't have to worry. I enjoy gardening and doing the yardwork. My only negative is shoveling snow but I'll take that a few times a year over noise. I just can't get right with renting. It is not for me.

[@Salomon_Andrade]

When I rented the same apartment for 7 years, 2006-2013, my rent increased 50%, from $500 at the start, and ended at $750. It was a 2 bed 1 bath apartment, only included water utility. The 7 years I paid on my house, 2013-2020, it went up 10%, starting at $800 and then ended payments were $880. My house is a 4 bedroom 3 bath. The water is approximately $80 a month I bought the house for 94.5k, it’s now worth 160k. All of the utilities, not including the water, are roughly the same cost between what I paid for renting and now what I pay for owning. Now that I have no mortgage payment, all I have to pay on the house is the $990 yearly insurance and $3,015 annual tax. So roughly $334 per month. If you are incapable of doing or learning basic repairs around the house yourself, yes the cost can increase. But any competent person knows that learning how to do any basic work will save them money. Just because you don’t have to pay for repairs around the apartments doesn’t mean you are saving, because your cost of rent ALWAYS cost more for the renter than the owner, because the owner is automatically charging you more, in anticipation of needing to pay for repairs. AND in most cases, any repairs done are by the owner themselves.

[@henrim9348]

Now imagine renting one of the rooms in your house to someone else. Put even more money in your pocket. I learned this from an owner I was renting at. He bought a house, setup a room in his garage (where he slept with his g/f) and rented 4 rooms to renters. He did it for 5 years. I did the same, when I bought my first home. I rented to grad students.

[@xanderpercy1533]

With regard to point three, it is the case for countless renters that their landlords happily abdicate their responsibility to provide for working *and safe* utilities and housing conditions despite it being law that they must provide for those things. And when they don’t provide for those things, what’s the cost of getting legal aid and/or taking them to court to force them to hold up their end of the bargain? What’s the cost to the renter of not having those things work for the duration of the time you’re fighting the landlord? The notion that it would be worse that I’d have to deal with lacking some utility for some amount of time because I’m responsible for the cost of repair rings hollow given that every landlord I’ve ever had would have fined me for doing anything to repair the broken things in the apartment while they ignore the problem (even if it’s a necessary utility!) and then at a minimum raise the rent for the following lease because they had to spend any additional money. If something’s going to be broken it’s better to be able to do anything about it/shoulder that cost somehow than it is to be under the thumb of someone doing their best to extract and keep every penny possible from you while not actually caring if the stuff gets fixed well or in a timely fashion.

[@mandisaw]

This is where location matters. I wish she had spoken about the very renter-friendly laws in NYC vs the rest of the country. From dedicated Housing Court, to a long history of Tenants' Associations, if you live in a place where the gov't actually supports tenants, then renting is a very different scenario. What you've described as far as landlords messing up basic utilities would be grounds for a rental strike in New York. Ultimately what can happen is that the tenant(s) withhold rent, and either they or the City pays for the repairs, and then the gov't sues the landlord for the cost, plus legal fees, and sometimes damages. And there's a ton of laws regarding eviction - all of this varies wildly across States/municipalities.

[@almag0410]

I live in a small town in Kansas and I’m ready to buy a home. Right now my rent is really cheap but I’m un happy with the place. Rental market is scarce for 3 bedrooms which is what I need! I think I’m ready to call the bank but something is holding me back from taking that leap.

[@EmilyWhite2013z]

It does really depend on where you live. In Indiana, especially the rural areas, it really is more economical to pay a mortgage than rent. Rent is often equally or MORE expensive than a mortgage. My boyfriend and I just bought a home, and his monthly payment is going significantly lower. I will also say that some landlords around this area also do a terrible job of fixing things, so there’s not a whole lot of benefits.

[@ms_cartographer]

I feel like renting is really only good if you are living somewhere you don't plan on staying in long term. If you want to settle down somewhere for a decade or more, then buying is nice to have that security. It's also nice to not have rent go up, or pets banned.

[@RidaB33]

Yeah I bought my house 2 years ago at 23 and I had all these amazing expectations for being a homeowner but honestly, it's kinda overrated. I miss all of the amenities and luxuries that came with my apartment. I miss not having to pay out of pocket every time something breaks or needs updating. I miss not having to worry about lawn care/trash, etc. And honestly at the time I thought I would be staying with my company for years to come and would wanna stay in the same city but I'm already feeling the urge to up and move but that's way harder to do now. There are some things I love for sure but there are a lot of drawbacks people don't talk about. Especially since the financial investment really only comes after you sell a house not while you're living in it.

[@JillFriedman]

People really do ignore how much the cost of a car impacts any savings living in a lower cost of living area is. When I moved from Brooklyn to Austin, I ended up in the same size apartment, but in a complex with way more amenities, and my rent was literally halved. ...but then I had to buy a car. And insure the car. And put gas in the car. And maintain the car. And now 12 years later, the Austin rental market is almost as painful as NYC's, gas is nearly $5/gal, and the per-ride cost of the MTA has gone up... $0.50. Don't know what the old apartment is costing these days, but one of my original roommates still lives there, so it can't be too bad. (We moved in back in 2005! What is time?)

[@abbyabroad]

I live and work abroad and am considering a move home next year. I would love to buy a place eventually but it’s overwhelming to consider anywhere in the United States! I think I’ll live somewhere I’m comfortable with for a year or two and do my due diligence before I pick a place to settle and buy long-term.

[@Maderlololohio]

The one and end all: when you are old and can no longer work not having to pay rent. Who will and who actually CAN keep working until 70, 80, 90?!!!

[@chadlukas]

Unpopular opinion: let's stop treating homes as "investments" and start treating it just a home- a dwelling place, a place to live in. The "investment" idea was propagated by the real estate industry to sell more homes thus causing houses to go up in price as times goes by. Real estate should only be considered an investment or an asset if it is commercially used. Renting apartments is a business, not an investment. We should only treat a house an investment if it's your second home/house or if you get an income from it and not relying on its equity.

[@mandypdx]

Agree!! I’m buying in this crazy market for a better quality of life (closing next week)- I’ve been working from my dining table for 2 years and want a dedicated office! (Better quality of life for my dog too)

[@lornarettig3215]

Amen, brother! It‘s a giant Ponzi scheme.

[@BinaryDigit]

Oh god this makes me feel so validated. It's what I've been feeling for ages and I'm in my 40s. It's not for me right now, and I don't know that it will be unless I live with someone else. Right now I love my small apartment that I rent, in a city that I enjoy, until I change my mind and move. Thank you for this perspective!

[@SJP43]

The renting market is inflated also. Rent is high everywhere. The cost of living has risen everywhere. It’s a crisis for all people renters or people looking to purchase a home.

[@ryanfranks1518]

Yeah, this is an awful argument. “Owning can be bad sometimes, so you should actually be grateful for paying exorbitant prices to just exist in a place for a month!”

[@thefinancialdiet]

It definitely is, and we don't want to downplay the very real effects of inflated rents!

[@2BOLD4U]

When you brought up people moving to the suburbs after a certain age, it reminded me of an article that I read on The Toast years ago: it was about how people were afraid of moving away from the city and then White Flight happened, and changed that perspective.

[@radicalfaithministries]

I know of someone who bought a house, invested time and money renovating it, and diligently paid the mortgage for 26 years. Sadly, illness struck, leading to the loss of their home. The devastating blow sent the homeowner into a deep depression, and within a year, they passed away. It's a heartbreaking reality that often goes unspoken; we're accustomed to hearing about "forever homes," but life's twists can sometimes shatter those dreams.

[@Kayla_P99]

HOAs are an adjacent issue that frankly I find to be unethical, especially those that have the power to foreclose on a home. At that point are you really the owner?

[@jimmymanser2222]

Consider reporting on other non traditional forms of shelter like house sharing, cooperatives and Cohousing.

[@eckankar7756]

I bought my first home ages ago when interest was 13%. It certainly motivated me to pay off the 30 year mortgage in 14 years. I continued making the 'mortgage' payments into investments and was able to retire comfortably early. . I'm elderly now, my property taxes and insurance is $107. a month. I bought this home for retirement in mind, no steps, single level, easy maintenance yard, close to hospitals, doctors, shopping, fire department, parks, freeway. I'm so happy I bought my home. I see so many my age that didn't bother to invest in their own well being. If you want insight in what is best to do with your financial life look at old people. Did what they do in their lives end up feeding them or eating them? I see the news with thousands of retirees that can't pay rent and moving into their cars. The day comes you can't work and all you have is what you've prepared for when that day comes. My financial decisions are based on the story I loved as a child, The Three Little Pigs. Early in life I decided to be the little pig that built her house of bricks. The day comes, for all of us, when the bad wolf comes to your door. Don't end up being the pig in the house of straw. The burden of regret weighs greatly when you realize you should have spent the time and effort to build your house of brick. The wolf will come one day, be ready.

[@anakreyszig303]

Now that my husband and I are both retired, it made financial sense to sell our Manhattan condo and rent a place in a lower COL area, mostly for the reasons set out in point #2 (we did not have a mortgage, but property taxes, common charges, homeowners' insurance, day-to-day maintenance, utilities, etc. add up). It makes sense to sell, and not only free up that money toward investment, but not have to spend all the other money each month/quarter/year and simply put it towards rent and/or invest it as well.

[@ThePathOfLeastResistanc]

Is this lady working for the world economics forum? “Own nothing and be happy.” People complaining about buying costing more than renting….that’s how it SHOULD BE! it’s yours!

[@esquivelb_]

Any home is better than renting, yes it might be more expensive but the benefit will always be better. Meaning not having to pay rent for your whole life and leaving your family with nothing to move forward with. Screw the cost i’ll take generational wealth any day.

[@lowwastehighmelanin]

Mmmm this is kinda not hitting for me given the crisis of affordable housing.

[@helenhass4652]

I cannot with the medieval dancing frenzy reference

[@MakaykayLAMB]

Bought my house in November 2022 and it’s already appreciated in value by 10k. So… I’m glad we stopped renting. Wouldn’t advise anyone to buy in this market tho.

[@kevin7151]

Your second point is one that many gloss over. When one factors in real estate taxes, HOA fees, insurance, maintenance, utilities and other expenses the all-in home ownership costs become significant. Transportation costs to/from work and the possibility of vehicle ownership (and their all-in costs) are additional costs to consider. In most instances, a renter will have a better grasp on their month expenses and can plan accordingly.

[@earthsteward9]

Ideally, lenders would consider commuting costs when determining if someone qualifies for a mortgage as in the current system, a person could be rejected buying a condo next door to their work but be approved for a detached house that is a 2 hour commute away by car

[@Fabdanc]

Not to mention that HOA rules can be fairly restrictive... and just makes me think of the line "when you have your own home, you can do whatever you want!" That is until the HOA says that you must have X amount of lawn, you can only plant Y types of plants, and you can only use Z colors for the exterior. Nothing like paying money to an HOA to tell you what not to do with your home/property.

[@kevin7151]

@@Fabdanc Couldnt agree more. I bought specifically where I did because we are not in a HOA. That said, I do live in a private village, which does enforce certain rules, albeit not too onerous.

[@kevin7151]

@@earthsteward9 Excellent point

[@TheRabxtreme]

I live in Bangkok and work not far from Bangkok downtown areas. Buying a house here is no way possible, unless you are willing to sacrifice your sleep, your time wasted in traffic (40min up to 2 hours if it rains), and the crazy gas price for the sake of owning a house in the suburbs (most new real estate will literally be in the middle of nowhere). The opportunity cost is totally not worth. #millennials

[@TheNewSchoolGamer]

I think it's really depends on your local housing market. Where I grew up, renting an equivalent property would have been significantly more than my mortgage when I lived there.

[@TheNewSchoolGamer]

@@Jazz-fg2dm I'll preface this by saying that everyones experiences are most definitely different so our mileage may vary. With that said, in my case: 1) I recently moved to a cheaper part of Canada and bought a couple properties (one is only a few years old and the other will be finished next year) and all of the costs are/will be less than if I were to rent due to the down payments I've made. 2) Most people my age rent where I grew up as the barrier to entry is very high (1-bedroom condos are around $600k to start) . Detached houses are usually $1-$2M depending on the neighbourhood for something entry level. 3) Yeah, renting does give you more flexibility in that regard for sure. Selling then buying and moving cross country was "interesting" for sure 4) For me, home ownership gives me peace of mind (I don't have to worry about landlords doing "reno-victions", while building equity in a appreciating assets. I've been a home owner since my early-20's and it's definitely made my life a whole lot easier

[@TheNewSchoolGamer]

@@Jazz-fg2dm Yeah, owning works out better here. If I were to rent, my monthly housing costs (including taxes, insurance, etc..) would be about double what I'm paying now. Where I live now the closing costs are very low, only the lawyer fee ($1k) and title insurance (a few hundred bucks) and in the case of the pre-construction property, the builder will cover the closing costs. I used the proceeds from the sale to buy the two properties and to invest in equities in my portfolio's so I'm not "all in" real estate, gotta have some diversification. I bought one property as my primary residence just for myself (not renting any parts of it) and I'll rent out the second property when it's completed. I prefer buying over renting as in all of my cases renting would could cost me more monthly, of course that may vary depending ones individual situation. I like the concept of being a landlord as I like having multiple streams of income. Yes renovations will need to be done eventually but since the properties are new/fairly new that's a long way off.

[@TheNewSchoolGamer]

@@Jazz-fg2dm Yeah, my the mortgage on my home is pretty small and ideally I should be able to pay it off in my 30's. I do a decent amount of liquid assets which will compound over time as I continue to invest. I also have a pension with my work in addition to the Canadian Pension Plan from the government so i'm not worried about retirement. I've put down more than enough on the investment property to have some decent cashflow. I can also sell it when it's built as it's already up almost 50% in value since I bought it but I'll see once it's ready.

[@TheNewSchoolGamer]

@@Jazz-fg2dm Those are some valid points you made about renting but home ownerships has allowed my to increase my net worth significantly and quickly the high amount of leverage it allows is a huge benefit. I guess my situation isn't that common as a millennial but I hope this clarification helps: -I bought my first condo when I was 24, it increased in value by 70% in 5 years. I sold and moved to a lower price area when I was 29 and bought a new townhouse (lower in value than the condo). Two years later in 2022 the townhouse increased in value by 68% I sold that and made my most recent move across the country where home prices are about 1/3rd of the price. So I'm currently 31. -I was able to buy the pre-construction condo last year by using profits from my equities trades. I've been investing since I was 12 by using my paper route money initially (I know, I started small lol) so I've gained a lot of experience over the years and have been able to build up my liquid assets over time. -In terms of my day job, I'm in sales management at a medical devices distributor

[@TheNewSchoolGamer]

@@rafaelw8115 1) Canadian real estate can be wild in certain markets. As interest rates have increased recently, prices have come down in some markets but are still significantly higher than two years ago. Of course, corrections happen and are currently happening. With that said, Canada has a housing supply problem and the government is planning on bringing in a significant amount of immigrants over the coming years and the supply problem will continue so prices might not fall as far as people think/want. 2) Residential real estate has made me a significant amount of profit over the years and my rental property will be positively cash flowing once it's built, so I can't really knock it. 3) I've bought and sold homes several times. I deleverage by moving to lower priced areas with each transaction so I can move up the property ladder while decreasing my debt simultaneously. That way I can use a decent portion of the profit to increase my liquid asset hold and "treat myself". Sure, what I do isn't for everyone but it works for me. FYI I'm in my early 30's and I intend to live off of my portfolios when I do decide to retire so I'm not too worried about having equity tied up in real estate.

[@MichaelaCleveland_]

Ok I SELL real estate in the Aspen Valley in Colorado and even I can’t stand when people say they’re “throwing their money away” on rent. Like how are we as a society so brainwashed?? Anyways, thanks for the great video!

[@jalogrono]

Like you Chelsea, in my early 30s, I purchased my first house in the 3rd quarter of 2020 when prices were down due to COVID/lockdowns. Prices in my area have risen +30% since then. Absolutely the best financial decision I have ever made. Homeowner problems are nothing compared to renter problems.

[@cynthiameyers7529]

The fact that our host owns her own home cements the idea in my mind that homeownership is still the best way to go. After all, if you can afford it and are staying put long term, why wouldn't you? Most people don't know how good it feels to own something until they finally do. On the other hand, if you can't afford it and the future looks uncertain...well, that's a different story.

[@domim4496]

I think in Australia the government needs to be way more on the side of the renters. The present politicians treat renters as second class citizens. Hope we have a change of government this Saturday! 🏠

[@04beni04]

It's funny ... I agree with all the points made, but it actually worked the other way for me. I can't afford to rent in the city where I live. :-S Instead, I found a tiny (seriously tiny, this little cabin is smaller than the 1-bedroom apartment I moved from!) fixer-upper in a decent neighbourhood. There's some argument that I can't afford this either, since I have to use equity for that fixer-up part so it's unlikely I'll pay it down by retirement, but Plan C is to live somewhere affordable with a miserable commute, and given current gas prices, not sure that wouldn't be just as expensive. Sometimes it seems like there's no good solution. :-(

[@christins.1481]

I'm a home owner. The plus about being a home owner is that you don't ever have to worry about being evicted. Then make sure you have insurance and you're covered. Our insurance is full coverage we pay $400 every 4 months. It is harder finding the right place at the right time, but if pass at a home that has a $600 mortgage for 15 years and you've been paying $700 for 12 years, you could have been paying on that house you passed up then wouldn't have worry about any more payments after three years.

[@TetraTerezi]

Im in kansas and we dont make enough to buy and maintain a home. So we rent. Our land lord has the cash to fix anything that breaks and i dont pay for much. My rent is 525 for a 2 bdrm 1 bath. Utilities seperate.

[@lpolarisl219]

I get all of what you said, and there is a reasonable argument to be made about the fact that when buying a home, you could end up spending more money on the long-term than if you were just renting. But that is a short-sighted point of view, the main difference comes when you die. Either your children inherit a home, having paid nothing so far, or they don't... As such, until you benefit the price of a house by renting instead of buying, there is no valid reason not to try to buy imho (unless you can't afford it, it would force you to live poorly, or you don't plan on having children or an heir of course).

[@vulpixelful]

European countries have more dense, walkable living space (that I love personally) and are more used to renting those homes, but they also have more of a safety net for people post-disability or post-retirement. In the US, a lot of people want to buy houses specifically because they want to control their housing costs in the old age, and possibly have something to sell to be able to afford their later retirement center. Some seniors just do cash out refis and die with debt. I wonder what the American Dream would look like if the US actually valued its workforce, the main driver of the GDP it gets to boast about.

[@Greentrees60]

I mean the US/Canadian version of this is also very problematic - most houses used for capital are not walkable, and so seniors who can't drive end up even lovelier than they would be anyway

[@borkbork4124]

You said it. My grandparents have lived in their house for over 30 years, but its steep driveway and many steps to the door make it impossible to travel. Now, one has passed, and the other has a walker and can no longer drive. Like I said, the driveway is too steep for them to use with their walker…

[@vulpixelful]

@@Greentrees60 There's assisting equipment like ramps, but yes, eventually they will have to move to a more senior-friendly center. And they often pay for that move by selling their house.

[@Greentrees60]

@@vulpixelful yes sorry I meant the neighbourhoods in which most houses are located aren't walkable, contributing to seniors isolation because there is more or less nowhere they can go without driving. But yes, selling the house to pay for an assisted living facility is the normal approach at end of life, and the costs if those are horrendous.

[@sharischmidt4712]

The current housing market is just insane in Canada. In February housing prices were going over$200.000 over asking, l think it's not a great idea to pay so much over what a house is worth. My husband and I built our home in 1997 spending$500.000 ,we sold for $2.3 M, the couple paid all cash!! I don't know how a couple in their mid thirties could do this?!

[@mayvel1537]

Def some illegal means lol!

[@saschamayer4050]

Cash? ... 😏 *cough*drugmoney*cough*

[@YourMajesty143]

I wonder if they're like those FIRE couples who don't have kids and will probably live in the house furniture-less for a few years, sleeping on airbeds and telling all their friends that they can't invite them yet until they're done "renovating" the place. It's probably that or they've got an inheritance. Btw Mid-thirties isn't that young to be a millionaire -- at least not if you're both making $250K+ a year in tech, plus stock options. Salary would hit the millions within 5 years. I know a couple (he's in cyber security and she's a doctor). They were making near $100K in their mid-twenties, which has grown close to $200K in their early 30s ... or so they brag lol. They're also pretty good at investing, saving, and not excessively spending. They don't do FIRE, but bc of her student loans, they're forced to be frugal until they're ready to buy a home. It's bc of him that I'm switching careers into tech, bc I need a bigger salary if I wanna retire early. No school/degree required, just a few courses & passing the entry exam.

[@saskia....]

@@YourMajesty143 Can you share what career you are switching into, and what courses you need to take? You did mention tech, but I was wondering if you could share any specifics. Thank you.

[@lornarettig3215]

I‘m sure they both worked very hard and made sacrifices and saved their money. ….. Only joking. Their families are clearly well off and gave them money.

[@Yonti_]

The title says it all, 5 times it’s better to rent than own. It’s not going to be true for everyone / where they live / and personal situation. 5 instances / situations it could be better for you.

[@myprettypsych]

Thank you for this. I bought my first condo in Boston at the age of 26. Then upgraded a few years later. I left the country 1.5 years ago and sold my place for a very nice profit and haven't looked back. I rent now and haven't bought anything because a) prices all over the world are ridiculous and b) we are due for a massive crash any minute. There is no way these prices are sustainable. Rent and sales in places like Florida, Puerto Rico, Costa Rica, etc. have quadrupled or more for no reason. It's obscene and not sustainable. So, though I would prefer to buy something I don't feel it is a good idea right now unless you are ok with throwing money away, in my humble opinion. And yes, I see the irony there of using that term to refer to buying.

[@ElementZephyr]

People like to live in warm, temperate regions. Coastal is a plus. There's an exodus out of NY and CA owing to bad political practices and constant nagging/harassment from certain political movements. And where do these people want to live? Florida, Puerto Rico, Costa Rica, etc. Small coastal and or island regions with limited space. No one wants to live in middle of nowhere West Virginia or Arkansas and so prices, rent and homeowning, are significantly cheaper.

[@MattKissingerPersonal]

Big fan! However what we are seeing in the market has nothing to do with 2008. The reason the inflation happened in 2008 was because banks had little regulations and anyone could get a loan that caused inflation and people couldn’t actually afford these homes so a foreclosure market happened that resulted in a crash. Today in this market if you can’t afford a house you won’t get Preapproved by a bank. The reason we see inflation is because everybody wants to get into the Equity game because for most Americans renting is a bad decision. Will the housing frenzy “pop” yes it will but all that means is homes won’t appreciate 17-30% year after year they will just appreciate the normal amount like 3-8%. Home values won’t actually drop a significant amount. In this market even though everything is “inflated” it is definitely the right time to buy because houses are going up but incomes are not and like you said companies are the ones buying up all the real estate. You need to buy a home now!

[@urbanflight820]

NYC owner here! And homeownership isn't for the faint of hearts (not here or anywhere else). Thank you, Chelsea, for this comprehensive and extremely valid take. "Renting is not throwing money away and buying is NOT always a good investment." PERIOD.

[@astrea79]

I bought my first home, a condo, at 33. It definitely was later and less home than I thought I would have as my first home, but it's what I could afford at the time for a reasonable commute to work. I don't regret it because housing in my area is always expensive. But four years later, im now a remote worker and would like more space. Next year we might rent a bigger home to live in and rent out our condo because the current market is so crazy to buy a bigger home and sell our condo. We'd like to wait till the market is more stable to buy/sell. It sounds crazy to not be living in the home we own, but it would allow us to save more for a bigger down payment and me more certain which neighborhood we want to live in long term.

[@lar7849]

My rent just went up 30% NY ….

[@dazedneptune]

This video made me feel a little better. But tbh I really want to own a home bc I’m afraid of landlords and how restrictive living in an apartment can be. I never want the threat of being homeless on someone else’s whims. I’d like to paint my walls whatever color I want. I don’t want to wait on anyone if something breaks in my home. I just want security and reasonable freedom to express myself. Renters are usually powerless in this regard.

[@violetlight1548]

Thanks for this video. I *need* to live in a walkable or transit friendly neighbourhood, since I don't drive due to a disability. That's even the main factor I take into account when applying for jobs. Can I get there in a reasonable amount of time on the bus? I currently live in a high rise apartment building, and while it has its downsides, it's literally blocks away from downtown, in a great neighbourhood, with my son's school right across the street from my building and I've been lucky enough to find jobs since I moved there that have been within walking distance. I'd love to eventually buy a house in the same neighbourhood -- a small, urban house with a nice, tiny lawn that can be converted into a wildflower garden with no lip from neighbours, no HOA to deal with. Maybe I could even put a Little Free Library out front! All I need is a job that will actually allow me to save some money for a change. It's telling that my CERB payments during the pandemic were *twice* what I was earning monthly. Realistically, however, the only way I'm going to ever own a home is if I win the lottery.

[@sbkpilot1]

All your reasons are valid but the top reason to own is stability. As experienced recently during the pandemic landlords were jacking up rents to absurd levels during lease renewal forcing many tentants to move, this represents a huge amount of instability and uncertainty in your living situation and moving can also be very expensive. You don't want to be subject to the whims of landlords or the housing market and want to lock in your housing costs to a more predictable situation. The costs you mention regarding upkeep can be more accurately forecasted and budgeted for so it's not a big deal.

[@CarlosRodriguez-dh7mm]

Also, be aware of the kind of lifestyle and family decisions that limit your rental/ purchase options. My fiance and I have 5 pets that we're unwilling to give up. 3 cats, 2 pitbull dogs. Some renters don't accept cats because they scratch and relieve themselves indoors. Other renters don't accept big dogs because their nails damage floors or other tenants are scared. And even places that might allow both can still have bans on certain breeds like pitbulls. We had zero viable renting options. We bought a home that we love. But we paid a high premium in the current market. It has plenty of space in home and in the yard for our pets, but if we were any less strict with our money, this investment would be a horrible idea. Be cognizant of the kinds of 2nd and 3rd order consequences certain lifestyle choices will have on your life and your options. Or you might pay a heavy price. That said, I still feel lucky and comfortable. You make the best with what you have, sometimes.

[@middle_pickup]

"Cool your heels and keep renting for a bit" while private equity buys up all America's homes and dooms you to forever renting.

[@LuciaCasucci]

Great video, even if I got pre approved with a good mortgage rate back in February, due to the market nonsense and speculation in my area, I decided to rent for another year and it is proving to be a good decision. Also I wish there was some regulation to avoid firms buy off all the houses on the market so that the regular folks have no other options than renting is since these firms (which also out bid me two months ago) can easily make all cash offers above asking prices and waving inspections

[@thefinancialdiet]

Congratulations on making the right choice for yourself and your needs!