Buying a home? 7 mistakes to avoid

Buying a home? 7 mistakes to avoid when buying a home is explained in detail. A buy Vs rent calculator is explained as well to help with buying decision.
00:00 Intro
00:26 Is renting throwing away money?
04:16 Is your primary residential home an investment?
05:18 Home expenses less than 30% of the take home income
05:51 At least 20% downpayment
06:19 Peer/Family pressure
06:51 Buying a home for short term
07:13 Buying a home to save on taxes
08:01 Buy Vs Rent Calculator
Buy Vs Rent Calculator (Copy to your account to use it - File - Make a Copy):
docs.google.com/spreadsheets/...
Instructions to copy the file:
If you are using mobile, click the three dots in the top right corner, then export & Share and then make a copy. That will copy the file to your account so that you can edit. If you are in a desktop computer, go to File - Make a Copy to copy the file.
Web Version: vijaymohans.com/buying-home/
Tamil version: • Home - Buy Vs Rent Cal...
LinkedIn: / vijay-mohan-sn
Twitter: / invstmntinsght
Web: vijaymohans.com/
#VijayMohan #InvestmentInsightsEnglish #InvestmentInsights #BuyVsRent #HomeBuying
DISCLAIMER:
The content of this video is my own opinions and is for information purposes only. It is not intended as a substitute for professional financial advice. It is only intended to provide education about investments.

[@mageshp5998]

Much needed video for the folks especially living in the US, Thanks for making it!

[@shankaranarayanan5392]

Thanks a lot sir! Exactly a video which i was waiting for. Excel calculator is extremely useful.

[@give-or-take]

Thanks gurunaadhare. We love your videos. Very good information. Sharing with my friends

[@vasudevansivalingam8494]

Wow… What an explanation! Thanks Vijay. Got granular level insights. Much appreciated…❤

[@chandrashekarkyatham]

Thank you. Much needed information

[@kaviumar]

Excellent sir!! Explained clearly thank you so much 🙏

[@praveesong]

Excellent way you explain and making it simple so everyone could understand

[@ishmayelraj]

Great content Sir, Thank you

[@divyasachan358]

I was waiting for this video. We just bought house this august.

[@ashokshanmugam9124]

Excellent Sir! Awesome

[@vishvanath4u]

Great break down. Good stuff at this current economic condition.. Would you be able to comment on the following - is it still a good idea to buy a lot and build later?

[@srikanthvaishali9443]

Great explanation. Thank you Vijay Sir

[@TheKrisamy]

நல்லவேளை, ஒரே peer pressure ஆ இருந்தது. ஒவ்வொருத்தரும் 2 வீடு வாங்கிட்டு, எப்ப பாத்தாலும் அதே பேசி பேசி கடுப்பேத்திட்டாங்க. Rental home என்னமோ பெரிய பாவம் போல. Thanks Vijay for giving a metrics that speaks for itself ❤

[@anansd01]

@3.57 I could hear tamil version in my mind 😀! Thank Sir for informative videos.

[@ksrengaram]

Thank you for your valuable insights into buying home, could you please share your opinion about the pros/cons of cashout refi as part of refinancing, when does its really helpful or recommended ways of reducing the mortgage that brings more advantage

[@sunilkumar2007]

Where were you sir. You are like a distant uncle everyone wishes to have to guide them in the world of personal finance. And I like your direct to the point approach. Thank you!!!

[@manojsinha7264]

Very nice Anna 🙏

[@ugowthaman]

Nice video. Keep it in English for USA related videos and Tamil for general videos. ❤️

[@Indian-sh2xz]

My recommendation would be to create a budget with all your expenses. Have 10% of your income for savings and then 10% for investments. With all your expenses now you calculate how much you can spend on the mortgage. Also as a safety net have 6 months of expenses in Emergency funds

[@sriram1744]

Isn’t the interest on the mortgage tax deductible?

[@sowmyam1359]

Love your content! We've been little hand wavy about buying a house during these times (writing this on Jan 26th 2023) -- But we're also in need of a bigger space as soon as possible. Is this a good time to buy in the US? Should we ride out the so called recession? Please provide your thoughts.

[@InvestmentInsightsEnglish]

No one can predict the market. Housing market is definitely better now than it was year back. If you are in need, just buy it. I would not wait for a good time to buy a home. Just make sure that you can manage the mortgage payment comfortably.

[@guruprasadseeryadavenugopa351]

Thanks for those intense calculations. This is insightful. However, request you to consider the physical, mental and monetary stress of moving out and in every year. This is not a big factor in India, but surely is for people in US. You may also factor in the uncertainty of finding a decent place near kids schools etc considering Apartment properties change lot of things in every new contract.

[@venkatajagadeesh7726]

Very useful information Sir, How about the interest rate is 3 %

[@jeyanthhvr1843]

Sir, It takes a lot of hard work, research and dedication to come up with these videos which are to the point and also conveys the information in a short prescribed time. I have seen a lot of investment videos from various content creators/investors, However you clearly stand apart from others as you breakdown a problem/story into simpler points which everyone can easily relate and drive towards the logical and data driven solution/suggestions . To be honest, no one has explained bitcoin mining like the way you did. At least from the ~10 videos I saw :) I would recommend anyone who is new to investing to watch your videos(Tamil & English) first. I hope this small token of appreciation will be a significant motivator to your future videos/endeavors. Keep up the wonderful work!

[@InvestmentInsightsEnglish]

Thank you for your kind words. 🙏🏽

[@vallalarasupandiyan3869]

In Simple Terms, the Home Loan tenure should be less than 7 Years, because only 1/4th of EMI goes for Interest vs 3/4th of Principle over all. Approximated for 7% rate of interest

[@girisudhans1366]

Can we invest a lumpsum amount while starting a SiP ?

[@murkri8723]

Thank you Sir. Wish you had shown what happens after every 5 years until the mortgage is fully paid off.

[@InvestmentInsightsEnglish]

The calculator link is in the description. You can see it for yourself.

[@senthildesikan7902]

given the current inflation & rental rates across US, how would it be possible for a family of 4 (2 adults, 2 kids) to have the home expenses around 1500, a typical 2 bed room in mid west cost around 1300 to 1500 in rent alone, and then utility adds up, though if someone makes 5000 as net pay..

[@TheKrisamy]

Its not just rentals have raised but the mortgage rates have shooted up as well. Actually rental prices are heading lower now and so inventory of new homes is more and lesser buyers in market.

[@SatheshSivashanmugam]

Good stuff. But I would like to add that diversification is as important as finding the right investment with high returns. Don't put all ur eggs in one basket.

[@vichupayyan]

is it advisable to buy a 2nd home and let the current one on rent and move? we need to move as we feel the current home is in a community where it is more of rentals and we see people move in and out frequently and lot of nuisance to deal with. practically it will be too tight to afford this interest rate but if we don't decide now then it will be never kind of situation.

[@InvestmentInsightsEnglish]

It is totally a personal choice. But if you would like to see whether it is profitable purely from financial perspective, use the calculator from this episode: Is rental home investment profitable?: kzbin.info/www/bejne/n3fHiamloMaGeaM

[@aruntam1]

Please give calculations for India also

[@prashanthp027]

Just out of curiosity - $2000 renting with 3% increase. So shouldn't it be $2060 in the 1st year? How did we arrive at $2005?

[@InvestmentInsightsEnglish]

Each column is monthly value. 2005 is for the first month. 12th month shows 2061.

[@prashanthp027]

@@InvestmentInsightsEnglish Thank you so much that makes sense ..

[@gowrishankarsivalingappa2242]

Pl have a discussion about home equity insights sir. Good or bad! For an investment perspective

[@yuvarajmohanperumal9472]

Instead of putting 20% as down payment, why can’t we put only 5% and invest the remaining in a index fund. Won’t that be profitable in long term?

[@InvestmentInsightsEnglish]

But we will pay more on mortgage insurance. Not a good idea in my opinion.

[@RajagopalSankaranarayanan]

Great video sir.. I felt Tamil was much better though

[@InvestmentInsightsEnglish]

Bar is set too high on Tamil. 🤣

[@RajagopalSankaranarayanan]

@@InvestmentInsightsEnglish very true

[@smaniang]

Boss neenga tamil pesinathaan boss nalla irukku. english video ongalukku set aagala but adhe nakkal and naiyandi light ah irukku but eduppa iilla.

[@InvestmentInsightsEnglish]

Tamil channeley enaku appadi thaan irukkuthu... 😂

[@and8263]

I guess the agenda of this channel is financial awareness, which is being conveyed in an effective manner. There are other exclusive channels that do Nakkal , naiyandi contents

[@cintai100]

wait 283000 - 203000 = $80000, but you mentioned as $59000??!!!

[@InvestmentInsightsEnglish]

It is the present value of that difference. www.calculator.net/present-value-calculator.html

[@todavid27]

Sir tamil version is much better and can understand better...

[@InvestmentInsightsEnglish]

Good to know. Thanks.

[@vaasudev5941]

Sir நீங்களுமா . தமிழிலும் நல்லாத்தான் இருக்கு.ஆங்கிலம் புரியவில்லை

[@srramesh1]

Tamil please

[@ArunaYohaan]

Is this video meant for அமெரிக்கா வாழ் இந்தியர்கள்? Why cant this video be made for people in India ?

[@InvestmentInsightsEnglish]

Calculator is same for India as well. Use the appropriate value that fits your situation.

[@vishnudevarajan3850]

என்ன தல திடீரென்று english - ல பேசுற 🤔🤔.

[@krishnamoorthyv6034]

This is English channel Bro. Another tamil channel Ia there

[@vishnudevarajan3850]

@@krishnamoorthyv6034 Thank You Bro 👍👍.

[@WORLDGEOPRO]

282 - 3 = 58 ? 😂

[@minimalist0703]

Mr. Vijay, majority of people, aka the common man, cannot afford a house for 350000 dollars. It’s a totally unrealistic figure to consider for ur analysis!! Instead, a figure of 100000 would have made sense. That way, paying mortgage for 20 years is better than renting it out.

[@InvestmentInsightsEnglish]

It is a calculator. Use the values that fit your situation.

[@JoeC5050]

where do u get home for 100K in USA these days?. 350-500K is the normal price.

[@sridevisridhar5732]

In cummings, Georgia home cost almost close to 700 and more than 1 million for 5 bedroom

[@JoeC5050]

@@sridevisridhar5732 YES. Same in CA also. Decent homes are 1.2M+

[@dheemz]

Bay Area is 2 million for decent house , please grow up 100,000 you will get good peanuts 🥜

[@vigneshsekar34]

Hi Sir , i need a financial advise, how I can contact you. Are you doing financial advise please confirm:) Thank you.

[@InvestmentInsightsEnglish]

Sorry. I don't. But you can send me an email with your question to [e-mail]. I will respond when I get a chance.