Buying vs Renting A Home - Dave Ramsey Rant

[@ice_ryda]

Everytime I spend money I can see and hear Dave Ramsey sighing in disappointment. 😩

[@solid-data]

😂😂😂

[@Qichar]

@@solid-data That's a little unfair and an kind of inaccurate. He has said repeatedly on his show that it's about ratios. If you make a lot of money, or have a lot of money already, then he doesn't care if you spend it or not. He just advises people to live within their means. Borrowing money to maintain a lifestyle you can't afford is stupid, and Dave knows this. Dave said he has a friend worth over 1 billion dollars, and bought a car worth more than 400K. Dave said it's fine because it's like regular folks like us buying a biscuit.

[@bettinaorevil5056]

I don't spend anymore. I cut off doing my nails, I stopped spending on hair items, going out to eat, etc...

[@callofduty60]

Ice Ryda who cares, gotta enjoy life while you have it. Saving every dime you have won’t allow you to enjoy your life a whole lot.

[@jcherrax]

Bruh me to 😂😂

[@Apothas541]

I bought a house after the rent in my 2 bedroom apartment went up to 1700 a month not including utilities. My mortgage on my 4 bedroom house with garage and a yard with taxes and insurance is 1100. That 600 a month I’ve saved has updated and repaired almost everything in my home.

[@leaundraeshepherd9170]

I have a similar situation.

[@unique1_4u]

Sounds like Dave wants more renters out there to potentially rent one of his properties..lol

[@danmchardy6424]

Out of interest, what is the term of your mortgage? Is it fixed or variable? How has your situation changed as interest rates have risen? Asking to get a better understanding, thank you ☺️

[@m.b5777]

Now with falling prices and recession your house will be worth a lot less and you will be upside down on your mortgage.

[@evan7329]

@@m.b5777 we have a fortune teller!! do me next

[@ChristopherAbelman]

Rather than relying on penny stocks, I wish to diversify my assets by investing in real estate and mutual funds and stocks of corporations with stable cash flows. I have a high interest mortgage and I’m wondering if to pay to off or purchase more real estate and flip. What should I do?

[@JosephineKenney]

Remember that investing in the market carries risks, and it’s important to do your own research and consult with a financial advisor before making any investment decisions.

[@PennyBergeron-os4ch]

Accurate asset allocation is crucial, and some individuals use hedging strategies or allocate part of their portfOlio to defensive assets for market downturns. Expert guidance is vital for achieving this. This approach has helped me stay finan-cially secure for over five years, yielding nearly $1 million in returns on invest-ments.

[@HildaBennet]

I've been looking to get one, but have been kind of relaxed about it. Could you recommend your manager? I'll be happy to use some help.

[@PennyBergeron-os4ch]

’Sonya Lee Mitchell’ is the licensed advisor I use. Just search the name. You’d find necessary details to work with to set up an appointment.

[@HildaBennet]

Thank you for the lead. I searched her up, and I have sent her an email. I hope she gets back to me soon.

[@opicnojam]

7:36 "I want you to own your house - I don't want it to own you."

[@danieltatum6560]

you prolly dont care but does any of you know a method to get back into an Instagram account..? I was dumb forgot my password. I would appreciate any assistance you can offer me

[@beej1254]

Dave, I THOUGHT I was ready to buy a house. I was pre-approved and had some money for a 5% down payment on an FHA. I talked with the lender about monthly payments and kept telling everyone I needed solid numbers and details about the loan. It was surprising how much run around I got. I’m so glad that I found you months ago and started actually taking your advice. If I hadn’t I’d literally be paying HALF of my monthly income on the house I wanted. As a single dad of two, I make a decent amount of money, but making that choice would have been extremely irresponsible at this point.

[@fornos123]

I bought my house and they told me my Mortgage was going to be $2,500 in Miami I didn’t like that number at all. So when I close the first year my Mortgage was $1,725 and the next year when they evaluated the taxes my Mortgage went up to $2,084 I can work with that

[@415getActive]

u would of started of with low mortgage at 1st? then go up?

[@GeloBetter]

If You Don’t Mind Me Asking Sir, What Kind Of Job Dp You Have?

[@chrisalexander6278]

Wow you're not 60 yet?

[@victorcretu7741]

If you can buy a home with a 5% downpayment, buy it tomorrow! If you don't, many will and the price will go up.

[@NicholasBall130]

Buying a home is already a very difficult thing to do, unless you pay cash or don’t get a loan from the government. If only my minimum monthly house payment, over the course of 30 years I’ll pay more than double what my home is worth. I purchased before things got crazy so I got a good interest rate. I couldn’t imagine trying to rent or buy right now.

[@StacieBMui]

I hope to own a home some day, not quite long I started investing. I'm very curious already and need help on how to enhance and increase my returns. Any good investment tips will be appreciated.

[@Wellerpage]

The enduring US stock market bull run evokes a mix of fear and excitement, presenting opportunities with insight, resulting in $780k gains in the past ten months, utilizing a portfolio advisor for a well-defined strategy.

[@cowell621]

My portfolio has been in the gutter for the entire year, so I started researching new ways to profit in the market, but everything I tried just seemed to miss the mark. Please let us know the name of your financial advisor.

[@Wellerpage]

Sharon Lee Peoples maintains an online presence that can be easily found through a simple search of her name on the internet.

[@crystalcassandra5597]

I looked her up, and I have sent her an email. I hope she gets back to me soon. Thank you

[@darkdragonite1419]

Been paying rent for 7 years... it’s never gone down. not once.

[@crusherven]

If it stays the same, that's down. Mine has.

[@mitube4u]

Right. Been doing it for 12 years and I'm finally at a place financially where I can afford a home and currently searching for a now.

[@charleswoods93]

Mortal Dao so by that logic your payments for owning a house are decreasing also? 🤔 stop it if you’re paying 1500 for rent and 800 to own, Dave knows how to do math. Stop blindly listening to stuff. Even factoring in the negatives of owning, you are on the process of OWNING! You can get served an eviction notice for anything and be out of thousands of dollars. Dave is amazing. Please do a little research before you believe anything

[@twilightroach4274]

I agree with Dave, if you are not ready don’t buy, wait until you are ready to buy then buy. When I bought my house 15 years ago my monthly payments were about 20% more than renting a similar property in my area. 15 years later I have paid 50% off of the mortgage price & (apart from corana19 adjustments) is now worth about a third more than what I paid for it & to rent a similar property in my area is now about 15% more than my mortgage payments & rising.

[@kylenichols8944]

Yeah if rent isn’t going up then effectively it’s decreasing by 2% per year. This is also assuming you’re getting your annual 2% raise to keep up. The difference with a mortgage is that A) you’re earning equity in the home, B) YOU see the appreciations in the value of your home, not your renters. Short term, rent is always more flexible and less risky, but long term ownership is always better. Always

[@bobbyb7672]

I've never seen rent go down...

[@shellyd1811]

Yep! NEVER! It only keeps going up! And you pay ALL that money out and own NOTHING.

[@markg999]

Because they dont. House paid for never have to worry about a rent payment or mortgage payment...its quite nice.

[@barbaraleszczynski2214]

I agree with everyone here......rent never, ever goes down, only increases. If you are determined to be totally disciplined and are willing to sacrifice those small luxuries...live frugally for a few years, buy a modest home, live rent free and in time you will reap and never regret the sacrifice you made thru those few years. Rent will kill you..you have nothing in the end.

[@djflash7503]

Mark G Don’t pay property taxes and see if the county comes for your home.

[@mikiko2872]

Rents went down circa 2008-2012. Been a renter since 2002! you need to shop around and sometimes need to move to get a better deal. The landlord knows when you are too lazy to move out to get a cheaper rent.

[@intelligentinvestor7615]

I love how Dave continually talks about subjects he's touched on. Its nice to be reminded of them, hear them again, and hear his updated opinion.

[@carpepesci]

I worked with a guy who lived in the same house for 20 years and rented it the entire time. He made a good living and his wife was a nurse who also made good money. When I asked why he rented, he told me that renting freed up money. He had already purchased and paid off a retirement property. Since the property was by a lake, they used it as a summer house while they were still working. He said he wouldn't have been able to do that if he had to pay 10K for a roof repair like his landlord did two months earlier.

[@alexandersummerville5003]

so for 20 years he didn't gain any equity, how smart

[@m.b5777]

@@alexandersummerville5003 but his other investments ballooned

[@Dailyfiver]

@@m.b5777 he could have ballooned his other investments and his house if he owned it lol.

[@madamshay749]

He lucked up by renting in a property where the landlord didnt sell the house causing he and his wife to have to move out and start over again in a new home. Thats my current situation and its very stressful.😢

[@miissMcLoviin]

Family has been pressuring to to buy a house and I know that I am not ready and this just proves my point. Even though I know they have the best intentions. I know what is right for me. Thanks Dave !!!

[@biancacarranza6484]

Elizabeth’s Journey2.0 ugh I feel you, plus they think it’s so easy like it was for them

[@Cahluvca]

I think most arent rushing into homeownership but I think the stats say otherwise

[@kevinkidneyy]

Don't listen to them because they're not going to pay for anything. Wait until your ready

[@CerronPritchett]

Yep do what you want cause at the end of the day they aren’t gonna pay any of your bills if they are to much for you.

[@kbanghart]

I bought a home, and then eventually lost it in the big meltdown years ago, and now own another home 👍

[@ghiaferrari7585]

I think both have their pros and cons. Renting has more flexibility with the job security nowadays. While owning gives you more privacy. Just buy what you can afford or even less.

[@jonhennemann4729]

But if you loose your job, there are a couple of people like Airline Pilots that literally might move anywhere in the country for a job. If you are an Accountant in LA are you really going to move to NY or find another Accounting job in LA.

[@saulgoodman7858]

i have privacy rentin.

[@Ewalk.213]

@@jonhennemann4729 if you lose your job how are you gonna pay rent?? This argument has holes in it. At least if I can't pay my mortgage my lender will work with me where as most landlords will have you out on the street immediately and find a new renter. Also, if needed, I could sell my house and bank the equity if it came down to it. Way more options by owning

[@adubber97]

How would owning give you more privacy? It’s not like your landlord lives with you when you rent 😂😂😂

[@KatieBellino]

@@adubber97 There are typically other tenants in a rental house/building. In one apartment I had, the old woman lived below me and totally made tenants feel watched/afraid to live in their own units.

[@ShreeNation]

Pray for me I'm just starting to save for my future home.

[@watchmanexpert]

You will be fine believe me .. I bought my house at 51 age .... and I regrets don’t buy it 20 years ago ... all my life paying rent for nothing

[@jimwerther]

@@watchmanexpert I bought in my 40s. But it is not accurate to say that the rent went for nothing.

[@caligal2010]

Smartest thing I ever did was save, save, save, save and I bought my first house with a 50k down payment at 26 years old. Thank you God and my parents for helping me do this :)

[@themichaelferrari]

That is smart. Congratulations! I wish when I'm 26 (4 years from now) I could buy a house just like you do. You inspire me and give me hope. Thanks!

[@JEBalynce]

caligal2010 you are blessed

[@richardsanchez9190]

Have you almost paid it off?

[@caligal2010]

@@richardsanchez9190 no not even close lol. But my house is worth is $280k and the loan is $165k, so I'm planning on selling it within the next year for a hefty profit

[@richardsanchez9190]

@@caligal2010 nice. Congrats. 165K that's cheap. What state did you buy and when?

[@4DMBOXMONEY]

Increase your income and decrease your spending to where buying or renting a home literally has no actual influence on your life.

[@derekdgarcia1]

Agreed!

[@dancer1]

Yo what?

[@Mist_R]

The more we adapt and adjust our budget the more they push it.

[@roxannesantos8918]

Im a teacher.....i would love for you to tell the govt to increase my income. ..yeah its not that simple

[@Mexicobeanpole]

Roxanne Santos Side hustle. EVERYONE should have at least one these days. Unfortunately, a fact of life.

[@deanalbertson2050]

I think renting vs buying is ultimately a lifestyle choice. If you If you plan to move a lot, or if you don't want to bother with things like mowing the grass, then renting is probably better. If you want to settle down for a long time, and you need more space, then buying a house is probably best.

[@priscillastephens3978]

This is the BEST response I've seen on here. I totally agree! It all comes down to it being a "lifestyle" decision. Like you stated, not everyone wants the hassle of the maintenance. I'm more of a pick-up-and-go person. I don't want to deal with mowing grass, snow blowing my driveway, etc. I don't care if I own it. It just doesn't fit my lifestlye.

[@kino7539]

Condos have building maintenance

[@nickdipaolofan5948]

So basically, owning is always better than renting, so long as you can afford it initially.

[@lovefunkrockmusic]

Nick DipaoloFan renting is equivalent to buying a 200 dollar car with cheap repair costs. It’s only temporary

[@Hyperpandas]

No, not really. Go look at a place that you might buy and calculate the following over the course of a year: 1. Interest costs, 2. taxes, 3. 1/2 to 1% total home value for maintenance, condo fees (if any), then divide by 12. If the figure is higher than what you'd pay in rent, then you should rent. If it's not, then check to see how much property value in your area is likely to grow over the next while. If a lot consider buying, if not see if you'd be better off renting and investing any extra money in stocks, etc.

[@christinab.2864]

I can’t think of a house mortgage that’s under a 1000 dollars a month

[@Hyperpandas]

@@christinab.2864 You have to separate out the equity from the mortgage to get the number you compare with rent.

[@christinab.2864]

@@Hyperpandas that’s sucks unless you used the bank loan for the house mortgage which sounds like what you’re saying

[@indiasimone6645]

Some people enjoy renting some enjoy buying a home. I prefer renting, I have plenty of space all amenities, huge balcony, fireplace, W/D. No debt. I like the idea of moving if I want to and not having to worry about repairs, maintenance. I also think owning a home is awesome if that fits you. Namaste 🙏🏿💙

[@jeremyncrm2012]

I agree but I also don’t know why people expect him to say anything different than buy a home. Guys a realtor!?

[@feliprea5504]

Hello India Simone, I hope you are having a great day. I read your comment and as far as "No debt" I believe you do, you just will never see a return on the rent you pay monthly. Your monthly rent is your debt. Like he mentioned you are paying the landlords debt and he is the only one getting the monetary benefit. You on the other hand unfortunately will never see those benefits.

[@jeremyncrm2012]

@@feliprea5504 having somewhere to live is a return on your money. It may not build wealth like owning, but renting certainly has purpose and can be right for some situations.

[@indiasimone6645]

@@jeremyncrm2012 Hello Fenix, wow I was about to say the same thing💯.

[@indiasimone6645]

@@feliprea5504 Hello Felipe Rea, yes I'm having a great day, I hope you are as well, as Fenix mentioned and I absolutely agree, I am seeing the benefits of my rent by having a safe healthy place to live, I could care less how much money the owner of my apartment has, no matter the type of living arrangements, no place to live is free, I enjoy renting and not being cash poor and that works for me, just like owning works for others.

[@eurekahope5310]

The minute something goes wrong in the house a renter calls the landlord. The minute a homeowner has a problem he/she can't fix they open their checkbook. We bought a house in our early 20s and have spent more on maintaining and fixing than we would have in rent. We just made a purchase more than our mortgage to fix a problem in just one room. Eventually it will pay off but we have been reduced to tears many times when something unexpected went wrong or we just felt stuck in a home that needed so many improvements. Wait until you are truly ready to buy and be ready to pay twice your mortgage in maintenance and repair. If we had waited we would have chosen differently and be better prepared financially and emotionally for the challenges of home ownership. It has taken more than a decade for our home to move from more curse days to more blessing days. We will definitely not push our children into home ownership until they can accurately weigh the costs and benefits.

[@Exxon300]

Eureka Hope Thank you for your wisdom

[@crystalcormier9376]

Thank you so much Eureka. You just gave me confirmation dont rush into buying home. Take your time doesn't matter what age or season of life your in. God bless❤🙏

[@wow1022]

well, it depends on the age of the home, buy an old home then get ready for having to fix it.... also you have to have a questioning attitude while viewing the home... such as asking the age of the roof, the age of the air conditioner are big ones

[@Layman927]

Uh If you got a proper home inspector they should be able to identify any issues that would turn into problems that cost more than your mortgage payment. You get what you pay for.

[@chrispurdie4282]

Any landlord who has been stayed in business is just adding those expenses to your rent every month. Every repair dave talks about, the landlord took into account when pricing rent. And in addition to all of the ownership costs, the landlord needs to make a return on the property, thus rent will always be higher than ownership

[@PhillipAndrew-e4v]

Hit 200k today. Thank you for all the knowledge and nuggets you had thrown my way over the last months. Started with 14k in last month 2024

[@JoshFernando-x1c]

I'm 37 and have been looking for ways to be successful, please how??

[@PhillipAndrew-e4v]

Sincerely speaking. I will continue to trade and stick to Michelle Warner daily signals and guides as long as it works well for me.

[@JessicaLora-n4k]

Woah for real? I'm so excited. Michelle A. Warner strategy has normalised winning trades for me also. and it's a huge milestone for me looking back to how it all started

[@GustiFlora]

I'm new at this, please how can I reach her?

[@PhillipAndrew-e4v]

she's mostly on Telegrams, using the user name

[@ryanturner8577]

Renting is good for short term, as dave recommends. If I don't have the down payment, nor the income and savings to back it up, I won't buy. Rent cheap as possible near you, and set a plan to buy a house within your means, with a back up savings for any big issues that may arise with a house. It's a pretty simple concept.

[@Cleric775]

Not many people know that.

[@BriLoveMusic]

Only single people who live in the suburbs think that way. 😆 I wish it was that simple.. . . .

[@Bloodspiller777]

What's short term?

[@fahd3228]

Or just don't buy period . rent cheap stay debt free and free up your money + invest

[@christinab.2864]

Bloodspiller777 one answer when your in debt

[@KayleeCee]

I bought my house exactly 2 years ago. I hate to think how much I wasted on rent over the years prior to that, but I know that I wasn't ready. Not only do you need to have a considerable down payment, but you need to have some money put away for repairs. About 6 months after I bought mine the water heater needed to be replaced, and that's an extra expense that would have broken me 10 years ago.

[@xraceboyex]

How much you were wasting on rent, huh? How much you paying in taxes on top of your mortgage now that you own?

[@PardonMyPresence]

@@xraceboyex did you consider that landlords add the property taxes into your rent?

[@texastitan6567]

@@xraceboyex yea but your mortgage is going into equity. At the end of 30 years of renting you have nothing and the end of 30 years of mortgage and taxes you own a home worth hundreds of thousands

[@RuReady115]

Now you’re stuck in your investment

[@89whodatcha]

@@texastitan6567 yea but no one should be going to into renting for 30yrs. I’d say renting is just a short term option before making a purchase

[@dg_71994]

I understand... people don’t take account to expenses that come into buying a home. $10k to fix a roof, $10k to change the furnace. It’s a lot of money!!

[@phattonez]

Yeah, and the rent covers all of it. The landlord isn't running a charity.

[@paulgibbons2320]

Yeh we do. Then we see them treble value in a few short years. I would take that deal all day long.😂

[@windsongshf]

I had been chasing a 20% down for the past 12 years. Seems every time we sign another years lease with a rent raise, the prices of houses shoot up. This was in Southern California. We moved to Vancouver, Washington right before the pandemic. The cheaper rents let us save more. The price of a house that wasn't a fixer at the time in our new location was around 350K. Now they're 500K. I can never seem to get up to that 20% down Dave wants us to have. Other than that, we're debt free and have a 6 months savings.

[@HotelBravo556]

Yep. Dave is wrong on this one.

[@415getActive]

what the benefits of getting that 20% down?? no mortgage insurance? fixed rates??

[@momhouser]

Most home buyers underestimate the amount needed for upkeep. If you add in a reasonable amount per month (1-3% of the value of the house per year) for repairs and maintenance of a house plus the work involved in yard care, insurance and property taxes, you often find it's much closer the current renting market.

[@sincerity56]

I would have bought a home about 6 years but realized that would have the biggest mistake ever! I know rent can be high and and it goes no where but up. But you cannot just only think about the rent payment. Owning a home has so many additional expenses, insurance, roof leaks, refrigerator breaks, etc. And when that happens for me I call the property manager to fix it because that's part of my rent. It will be more of a benefit for me when I'm closer to retirement. Putting more than 20% down on a 15-year mortgage with a fixed rate and with mortgage payments no more than 1/4 of my income. Thanks Dave.

[@flaco050iiix7]

I remember 20 years back my dad got a house for 25k $300 a month now these prices are over 100k and $1500 a month

[@2inchfromtheground]

Mongol IIIX i remember 4 years ago when I put 20% down and got a mortgage for 1529/mo on a 15 fixed note. My neighbor did 3.5% down, 1500/mo on a 30 year note

[@Mayanbandz]

300K In MD

[@GSQUADxGEE]

My parents paid 68k back in 1996 the neighbors house just sold for 255k smh and then they ask me why I haven't bought a home yet as if 3/2's are still going for 70k

[@djflash7503]

Mongol IIIX what was the income 20 years ago compared to what it is today. You can’t compare.see what the average mortgage was 30 years or 40 years ago and your dad would’ve thought that was cheaper.

[@aquariaaustin2077]

Your dad made a lousy deal. We bought our house in the 90s for around $93K. Our mortgage was less than $1000 per month, which was what a nicer apartment in our area cost, but none of them had nearly as many amenities within walking distance of our home. We had to refinance when my health went south, and now we pay less than $900 a month. MINIMAL rent in our city is $1200/month. And the house will be ours within a few years. We're still ahead of what renters in our city will ever have.

[@tatripp]

I just had to fix a roof and get a new hvac system in the same year. Dave is right.

[@ChrisMFlorida]

Yep.. I've done those.. 6k ac and 5k roof.. people forget about that.. lol

[@bassinoutdawg4515]

But that could also be because you didn’t look in the house deep enough before buying if you are smart about what you are buying it is a way better investment than renting an apartment

[@tatripp]

@@bassinoutdawg4515 That's definitely part of the problem. Since I've bought the house, at least I've learned a lot about what to expect next time I buy one.

[@Cmorrison626]

Yeah but you shouldn’t have to make either of those purchases again for another 20 years and they increase the value of your home should you decide to sell before then.

[@aquariaaustin2077]

Well, that's not true, either. It's easy to say you shouldn't have to buy a new roof within X years...until you get hit with a freaky, once-in-a-lifetime storm that damages your roof. Even newish roofs can sustain massive damage from storms like that. If you have good homeowners' insurance, that will get covered. That's why it's important not to cheap out on that homeowners' cost.

[@krunkformula]

Love this! Dave has the right idea. Long term BUY! Rent is great for temporary situations until you can get into a proper situation to buy.

[@Dom-xi8je]

Pretty clear most people who “own” homes should be renting and many of those renting should continue renting unless you meet all the metrics Dave has repeatedly told us. I remain a poor saddled with debt and I will rent until I work through the baby steps. Pretty simple stuff guys.

[@carrie893]

You can if your looking a few years ahead. I bought our house for $90k in 2014, my house payment with taxes and everything is $720 a month. Our rent at the time was $850 and now at the exact same apartment complex it is $1500. I'm am so freaking thankful that we bought our house because theres no way we would have any kind of future paying $1500 a month.

[@paulconner4614]

That is the upside, you lock in about 80% of your monthly cost. (excluding maintenance costs )

[@MarkDanger777]

The only thing that's hard is the down payment, well actually where I live a 1 bedroom cost 300k. So mortgage plus everything cost 2k, and my rent cost 1.2k

[@415getActive]

see what im saying does he not factor in the price of rent?? it's $1800 now in California

[@diyinvesting4U]

In that time the stock market have risen by 3x and that home only 2x

[@carrie893]

@@diyinvesting4U we bought our home for 90k, our neighbors all around us with same size houses are going for 400k. We have one of the nicer houses in the neighborhood, so we could easily sell for 400k or more.

[@videosandmore5277]

Paid cash 47k in 2013, now worth $135k. Never had a mortgage payment and never will. 🇺🇸

[@macnvettes]

Economics don't balance anywhere near as fast as Ramsey would like you to believe. I moved to Nashville into an apartment (2 br/2ba, 1275 sq.ft. townhouse, no garage) costing $1050/mo. Within 3 years, the price was $1700/mo. I bought a townhouse condo (2 br,2.5 ba, 1405 sq.ft. with attached garage) with zero down for $1150/mo. Including interest, taxes and HOA.

[@CasualGamerGirl77]

Sounds like temporary/first-time buyer incentives. Adjustable interest rate? Taxes of course will fluctuate and HOA is the devil. TH's are a dime a dozen around Nashville and return on investment as good as a trailer.

[@nicolebermudez4855]

Girlie Gamer what do you mean?

[@jae9843]

One of the happiest and proudest moments in my parents' lives was the day they moved into their new, fancy house that was on the fringe of what their income could support. One of the most devastating and humiliating moments for them was when they were forced to sell it less than 10 years later after one of them fell ill and couldn't work for a year, and they couldn't make the mortgage payments. I'd never seen my parents broken before until the day they had to move: the sadness on their faces is seared into my memory. If they'd just waited until they had a bigger down payment or gone with a more affordable house, I firmly believe they'd still own it. I'll never buy a house until I know I can genuinely afford it: the 1/4 net income rule is a good one.

[@JoseGarcia-xt6km]

Wow sorry to hear that😔 will keep your parents in our prayers

[@aquariaaustin2077]

That happened to us. I've had a long battle with multiple health conditions, including cancer, and couldn't work anymore. Know what we did? TALKED TO OUR MORTGAGE LENDER, and they helped us refinance with terms that kept us in our house. We were ahead on our mortgage, so the refinancing merely took us to the 30 year term that we originally signed up for. It was worth it not to lose our home when disaster struck us. If I'm able to work again, we'll go right back to paying ahead on the mortgage. Right now, I can't, so paying ahead is tough for us, as anyone can imagine, but it's what we're shooting for.

[@stevenmorris2293]

Sorry to hear that. The house payment must have been significantly greater than rent payment. here in San Diego buying is about the same as renting.

[@vladone428]

Capex is figured into your rental payment, but not your mortgage. As a prospective home owner, you need to factor in the cost of big ticket items into your cost of home ownership. For example, if the roof costs $5000 to replace and lasts 20 years, that's about $21 per month. Do the same for things like heating, air, fridge, water heater, etc. and then you can compare it to rent.

[@mikeb.2925]

Stayed in my apartment for 14 years. Rent went up every year until it doubled from it's initial cost. However, now buying a very cheap house my mortgage payment is going to be even higher than my rent ever was. To say nothing of maintenance cost, additional electric since it's a larger home and utilities like water that were included in my apartment rent. I'm fortunate that I can afford the additional cost but there's no way it's the most affordable option. Buying a house is not affordable housing. A 1 bedroom apartment is affordable housing. Renting a room from someone is affordable housing.

[@KatieBellino]

Where you make it up is at retirement when you own the home.

[@Deerych]

Thanks for the honest and authentic perspectives. People keep judging and shaming us for not wanting to buy a house right now. I tire of it. But the rental rates are always a mess too...IT'S JUST DEBT EITHER WAY!

[@Egilhelmson]

If renting is creating debt for you, Wolfgang Amadeus, you need to find someone to pay you to compose a Requiem Mass.

[@MikHutt]

Biggest problem when buying a house is how do you know your job will keep you there 15/30 years . You might lose your job and have to flip burgers . Renting will cost you bit extra but you always free to go for job hunting in different area or even other states when your city have no jobs

[@michaelh-co8zx]

U can sell your house and get a good amount of the money back

[@Klake-bk2dp]

@@michaelh-co8zxif* you can sell your house. You have to keep in mind if YOU can’t find a good job. There’s a good chance that someone else can’t either.

[@visittavee7773]

Save every penny that how everyone will move up .

[@ChrisInvests]

Only buy a home if you can AFFORD it (obviously) 🤷‍♂️👍

[@coldfire39]

Chris Invests so much insight. You should start a podcast!

[@LiftingGunsBibleTradition]

Wow so deep 🎓 You must have a PHD or something!

[@ramdytravels_]

Even if it seems like a logical thing, people are stupid and naive enough to just jump into it just because everyone else has it. lol

[@joshn2342323]

People have slowly been trying to change the definition of what "afford" means lol. Been hearing lots of talk about how you only need 5% or 10% down now.

[@insideoutsideupsidedown2218]

Ramdy Salimbacod you can say the same thing about renting an apartment

[@oscararredondo9672]

I’m all for renting if it’s significantly lower that owning, this allows you to save for a bigger down payment and emergency fund.

[@kamiikhan534]

This video matured so well

[@lugeneparker]

Never buy adjustable rate mortgages. They should be outlawed

[@raheelakhtar7]

Lugene Parker i got an amazing 2.25% 7 year ARM! But I didn’t kid myself that the rate will stay flat at the end of 7 years. I will refi or pay off the property (haven’t made up my mind yet).

[@joshn2342323]

@@raheelakhtar7 pay it off because the the new rate you'll get will be some rip off rate. That's why they give you so low rate on the first part of the loan. It is is called a "teaser" rate for a reason.

[@mooman333]

@@joshn2342323 simply refi with another institution

[@icecreamladydriver1606]

@@raheelakhtar7 If you can pay it off then pay it off. It will be a great investment. We don't regret doing that at all.

[@MoMo-00]

What is adjustable rate mortgages?

[@mattjordan730]

I live in California and I’ve never seen it play out that way, the rent price never corrects. In 2008 a lot of people lost there homes and those people could no longer qualify to get new homes witch created a massive influx of renters, this is a multi decade issue that is still not being felt with. More millennials are loosing there homes than buying new homes.

[@jameswhitman3934]

This is because comiefornia has massive restrictions on new buildings, and renovations, as well as crazy high taxes that limit the free market's ability to correct for such an uptick in pricing. Unless your livelyhood depends on you staying there, move now and realize how it got so bad in the first place so California politics don't ruin the state you move to.

[@Ewalk.213]

Yea I've realized that I have to take some of Dave's advice with a grain of salt while living in California

[@laughoutmeow]

My dad bought 5-7 homes in bay area during the crash and has made him millions now.

[@Ewalk.213]

Based on Dave's principles I'll need to have around $250K annual household income to buy a decent home living in Los Angeles lol

[@jamessamy]

I am staying in a rental house and build up my financial basket. I don't want to swim myself with housing loan debt paying interest 20 30 years. Thank you Captain Dave for this eye opener 👍

[@jamessamy]

@@sunnyd4734 thank you for the insight. Definitely a good way of leading a better life staying rental.

[@DreamOn427]

It costs 1400/month for mortgage on 2.5 acres where we pretty much have freedom, or we pay 1100 for 1/2 acre with quarterly checks and no freedom where we are paying someone else's mortgage with nothing to show for ourselves. Rent keeps going up each year too... I think it really just depends on the location as well as the person's intention.

[@KatieBellino]

Exactly. The big thing is if your income can afford it. I know for me the couple of "small" added costs of home ownership are not enough to mess up my budget. The ability to have a paid-off home in the long run is more worth it. Some people think it will be completely cheaper though, which isn't true.

[@southerncali88]

I’d much rather be broke paying my own mortgage than being broke paying someone else mortgage.

[@marcus.H]

Interest is lost forever just like rent

[@mrs.demetrialewis2730]

In the end, the house will be yours

[@AM-br4ix]

@@mrs.demetrialewis2730not if you don’t pay your property taxes

[@rosserscott4376]

Still cheaper than rent where I live. ​@AM-br4ix

[@jaredthibodaux6796]

Rent keeps going up and up and up in this area. Had to move to the trailer park just to save more cash because this is getting insane. Over half of my pay was to rent/utilities every month. Thankfully I have been following Dave's advice for years and the car and truck are both paid for and the credit cards have been unused so long some of them are just being deactivated so I am not in a bind just not happy renting in this area. Very seriously looking at buying as I can get a two bedroom for less then the rent on a mobile home and the 15 year rate is within $100. $37,000 saved up not counting the 401k or retirement, car should not need replacing for another decade (2016 Camry) Not exactly sure what Dave considers ready but I think it is about time.

[@atlas7409]

Jared Thibodaux you’re definitely ready!!! get yourself into a good home, and establish that legacy

[@RitaOwens94456]

Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got to talking about investment and money. I started investing with $150k and in the first 2 months, my portfolio was reading $274,800. Crazy right!, I decided to reinvest my profit and get more interesting. For over a year we have been working together making consistent profit just bought my second home 2 weeks ago and care for my family.

[@BarbaraHarper-c1p]

Hi. I’ve been forced to find additional sources of income as I got retrenched. I barely have time to continue trading and watch my investments since I had my second child. Do you think I should take a break for a while from the market and focus on other things or return whenever I have free time or is it a continuous process? Thanks

[@RitaOwens94456]

@@BarbaraHarper-c1p However, if you do not have access to a professional like Clementina Abate Russo, quitting your job to focus on trading may not be the best approach. It is important to consider all options and seek guidance from reliable sources before making any major decisions. Consulting with an AI or using automated trading systems can also be helpful in managing investments while balancing other commitments

[@BarbaraHarper-c1p]

@@RitaOwens94456 Oh please I’d love that. Thanks!

[@RitaOwens94456]

@@BarbaraHarper-c1p Clementina Abate Russo is her name

[@RitaOwens94456]

Lookup with her name on the webpage.

[@dcross446]

Being able to work on your own home is a blessing. I'm a plumber and work for a mechanical company. I can replace every pipe, water heater, furnace and AC in a weekend, For under 4k. Not to mention any small repairs.

[@mannyjeanpierre4062]

I love when Papa Dave's southern accent comes out. That's when you know its real lol

[@fljetgator1833]

@M Detlef .. Incorrect. He is a Tennessean .. Get a grip. Don't be sad. Dave is Southern. Not a yankee. 😉

[@greenearthblueskies8556]

M Detlef 😂

[@HoweyJR_]

@@fljetgator1833 Yankees are betta💯

[@fljetgator1833]

@@HoweyJR_ .. 🤔 ah fugettaboutit

[@HoweyJR_]

@@fljetgator1833 lol just talkn ish bro

[@bar8665]

Huge part of being able to retire is having the mortgage paid off. If you get in a home at 30 years old and just do minimum payments for the 30 years it could really help set you up to retire at or around 60 and focus extra income on other investments all those years. Go talk to people who are in their mid 60s that still have a lot left on their mortgage and see what they have to say.

[@elmagnificodep]

I have a rental property. It costs me a mortgage of $715, but it currently rents out for $1,150 with nothing included. Starting in August the new rent will be $1,200 with nothing included. My property is 4 houses from the University campus. It will always be a hot commodity because people don’t want to drive to class, pay for a parking pass, etc. I also rent to adults because it is right next to the highway to get to work quick. I’ve been renting this house since 2011. Never had an issue renting it out. I’ve spent about $2,000 in repairs, but I’ve collected nearly $100,000 in rent and paid roughly $72,000 in mortgage including taxes and insurance. $100,000 - $74,000 = $26,000. Not too bad. I plan on selling it when my kid is about 16/17 and using all that equity for his college. That will be in about 10-11 years.

[@sisteroftheagiel1]

elmagnificodep are you paying off the house (the place you are renting)? If not, how long will it take you to pay it off.

[@elmagnificodep]

sisteroftheagiel1 I’m paying a mortgage. I’ve owned the house for over 10 years. It would be paid off in 2039. I put extra money on my house. I just bought a used $30,000 truck less than a year ago. Thanks renters.

[@aleks9809]

U made 26000 and bought a 30000 truck? How did renters pay this? 🙈

[@elmagnificodep]

aleks Seriously? I have a job too. 🤦🏼‍♂️

[@ChrisInvests]

Dave's house buying principles are very conservative but you can't really go wrong with them 😀🤷‍♂️

[@canman5060]

It is better be conservative than saying a late big sorry later.

[@mkite715]

Chris Invests i wouldn’t say conservative I would say smart and common sense. Don’t buy a home until you’re debt free with a fully funded emergency fund and a good down payment. And a 15 yr fixed mortgage where the payment is no more than 25% of your monthly take home pay. Anyone here who disagrees bought a home with lots of debt, little saved and a 30 yr with way too much house they’re trying to justify it!

[@EmpireTextbooks]

Chris Invests buy a rental property with all cash? Yeah good luck even saving up for one in addition to paying the mortgage on your primary residence within your lifetime. Dave is conservative to an unreasonably high degree.

[@ferich2001]

It really only works in area that doesn't have a land shortage.

[@jamesl.a.n6394]

Lar M I trgjn.

[@dancq4237]

Hit the nail right on the head. Short term vs long term.

[@Striker50_]

Except for the fact that a lot of rental properties being built are freaking luxury rental properties at $3,000/ month

[@kellybrady7863]

big city?

[@momofmany9954]

@@kellybrady7863 no lol. My husband just took a new job and 2 bedroom 1 bath townhomes near his job in the suburbs of Michigan are going for 2500 a month. We have 4 kids and we WANT to rent..

[@micheleD498]

$1200 2/1/1 gated condo rental in Orlando. I'm working through my baby steps happily... Living less than your income is key

[@Brittanybavery]

Exactly! There are few very rentals under $2000 and we live 30 min from the biggest city near us

[@bettysmith7045]

I don't even live in a big city, and the closest big city is about 50 miles away, but the rents for a 2 bedroom apartment are still around 1800 and up!! Renting to me makes no sense if you are ready to own a home and have your career set, and you are making adequate income.

[@ljss6805]

I'm in SoCal and rent is essentially half of mortgage payments. No one can buy anymore.

[@kelliemcclure6471]

I dont think Dave Ramsey has been a renter in a long time...

[@Siferatu]

Has Dave ever lowered his rent when the market "corrects?" Never

[@jeanpierrerideout7560]

@@Siferatu well capitalism is unique in that a seller must find a buyer! I could offer to rent you my house for 60k a month. Are you obligated to accept?

[@Siferatu]

@@jeanpierrerideout7560 You'd be laughed off every listing unless you were offering something truly special like a wing of Windsor Palace. We're talking about rent floors and medians. We'll see if COVID-19 is finally the event to shake it up, but under normal operating procedure rents go up when housing stock gets scarce.

[@jeanpierrerideout7560]

@@Siferatu Why is housing stock scarce?

[@Siferatu]

@@jeanpierrerideout7560 Meant to write affordable housing stock. Starter homes, entry level, whatever you want to call it, those houses aren't out there on the market. Maybe the case is different in flyover country, YMMV. Developers aren't building Levittown. McMansion communities were all that went up until the mid 2000s. "Luxury" townhome communities are all that's being built right now. Prices for townhomes start at $300K. New housing is out. Homes that could be affordable are suffering from HGTV. The homeowner might do $30K in kitchen and bath renovations then add $60K onto the asking price. Flippers do the same with only $10K. Houses that go for real market rate are gone in hours. Flippers, wholesalers, and landlords tie them up in "close by Friday" cash transactions. By the time it's hit the MLS it's Pending.

[@higherthinking4143]

The key is to rent and move every time your lease is up and chase the deals. Move to a complex down the road, then move after that lease up, when you renew they hurt you.

[@HermannTheGreat]

Renting = no mowing, no appliance replacement or repair, no property taxes or home owners insurance, no large initial down-payment, no strings attached you can leave after 1 year, incredible mobility. Cons= much less privacy, less space, usually less quality than a home, neighbors, utility fees can be much higher than you'd expect for an apartment.

[@bobbyb7672]

I'm pretty sure all that is included in the rent. Matter fact, you paying for all of that plus a profit for the homeowner.

[@NUCLEARARMAMENT]

You can get a 4,500 sq. ft. house with a basement for $2,800 a month. I think I'll take that over buying. IDC about equity BTW.

[@avalentine7045]

I moved out my 2 bd room apartment for $1100 and bought a new comstruction 4 bd rm house for $1100 mortgage. After 4 yrs my home value went up by 85k. I dont think I would of been able to save 85k while still paying for rent payment.

[@awaisus]

How much total interest will you be paying on your house by end of your mortgage payment. Multiply your house payment into 30 years and see how much you are paying for your house.

[@avalentine7045]

@@awaisus multiply the rent payment over 30 years with no asset. Who will have a higher net worth?

[@Turnyourtruth42]

@@avalentine7045 add in maintenance, time spent fixing things, renovations, taxes, hoa, insurance...you still may he ahead but there are alot more variables to owning....

[@j.c.nightwalker5322]

Dave, in theory your advice makes sense but in reality I have never seen rents go down in major city’s. I live in Canada, Toronto Ontario to be exact and as long as people keep immigrating here (and they will) the rents and the cost of a house will never go down, it’s been this way for quite some time now. I know major metropolis’s in the states have the same issue.

[@KnockoutInvesting]

Don't buy a primary residence to live. Buy an investment property, have ur tenets pay off the mortgage then the house is an asset.

[@sweetfayce18]

The way I see it. Unless your house is paid in FULL, you're a Loan Owner. Banks forecloses , landlords evicts .

[@alextogo8367]

You can still make some money on a foreclosure though.

[@Jasmine-pi7fq]

Yes! Agreed! Good one here

[@EPICAP1]

Who else clicked because you saw rant and you like to hear Dave Ramsey rant?🙋‍♂️

[@anthonywaldrep5982]

I'm upset that he didn't yell bro 😂😂

[@RealLifeMoney]

Golden nuggets in Dave rants haha

[@AustinandJeanette]

Dave's rants are epic and I love them!

[@kbanghart]

Actually, I clicked on it to read comments, because the word rant in the title is kind of a turn off.

[@lydialukes522]

And it applies to us because we wanna own a house some day.

[@jus3278]

I worked for a top real estate broker for about 7 years, so this conversation has always fascinated me. I'm not ready for home ownership quite yet and Dave provided some good insight on why it's situational.

[@AymanSuleiman]

My rent just went up...owning a house sounds pretty good right now.

[@AStanton1966]

But you have no property taxes, no maintenance expenses, and no insurance to pay for.

[@chrisfarmer4397]

@@AStanton1966 as a landlord I will say that is factored into the rent, a good practice is mortgage, taxes, insurance... for one year, divided by 12 and multiplied by 13 becomes the Minimum rental rate. The 13th month covers improvements and increases in expenses or months not rented out. I've done this for 7 years and can always rent it out at market value

[@catherine6443]

Property taxes also go up.

[@rs2543]

A Stanton1966 yes he does... it’s all built into the rent.

[@Delimon007]

@@chrisfarmer4397 Okay let's say that's true and then something that cost several grand happens to the house etc. All of this stuff has already been averaged out to 5% of the houses worth per year, on average to include property taxes. Yes you will be making money, but we don't have to worry about that stuff especially if something happens to the home. That's not on us at that point but on you and that loss is quite devastating.

[@cas-g3]

I was trying to tell a co-worker this. She asked if I want to buy a house, I said of course I do! But I want to make sure that I save for it, I want to pay off my debt, I want to learn more about the business ect. She looked at me like I didn't know what I'm talking about, but I know what I want & I know about how long it will take me to get there. I know I'm not ready for that yet, but I know that I'm ready for budgeting for it RIGHT NOW!

[@barbaraleszczynski2214]

Casara Gonzalez I agree with you. I admire your determination and you will do well in your future with your thinking! Save first, spend less, be patient, spend later for what really matters! All the best to you!

[@djflash7503]

Casara Gonzalez Good for you Your so smart for thinking this way. You don’t wanna be stress because of a house you can’t afford. Believe me there is a bad part of home buying people just don’t wanna hear it.

[@infantrymanejb358]

Never seen rent go down in Alaska. Got a house at 21, In 8 years I've managed to be $300 under renters. Brand new house back in 2011, only 1000 sq feet. 156,950 at 3.5% 30 year fixed.

[@davidleonard4925]

Something I have found is a free and clear basic home is about the same yearly cost as renting an apartment. So a person can run the numbers and see if its true in their area. For example where I live. 2 bedroom apartment cost per year is the following Rent 9600 Heat 0 (its included ) Electric 700 Cable,internet and phone 2200 Total per year= $12500 $125000 home cost per year Property tax 3500 Insurance 500 Water and sewer 500 repairs 1800 ( most years much lower but some years much higher,roof,furnace ect ) Electric 1200 Heat 2500 Cable,internet and phone 2200 Total per year= $12200.

[@DancerUniversity]

Except when interest rates leap up. Buying in LA right now is definitely more expensive than renting.

[@gorgono1]

I am thinking of buying a van. It is basically 2 in 1 deal ... house and a car. Will save me a lot of money in the long run.

[@scotland369]

Its a great idea if you don't mind living like that! In a relationship though, it won't work

[@nightfury8440]

@@scotland369 If you find the right girl it will.

[@shestudios]

I am with you on this.

[@shestudios]

@@TheGreatGadfly Free, but still taking it out of my paycheck. 😂😂😂

[@shestudios]

@@nightfury8440 If he finds the RIGHT girl she will understand. Love a man who is a good steward.

[@shahrimoore]

100 percent agree. Homeownership isn’t cheap

[@patriciabrown8666]

SL Life Equity is always good vs apartment nothing and no investment RENT GOES UP!!!! 🙅🙅🙅🙅🙅🙅

[@JoeLopez]

SL Life yes! And home ownership is NOT for everyone

[@stephencullum8255]

A lot of people tie up most of their wealth into a home. Then in retirement are looking at reverse mortgages which are never a good idea to get by. Buy what you need and no more. Houses are illiquid assets and yes they can also depreciate if the circumstances are wrong. It is one asset and should not be your only asset. As financial experts tell us be diversify to protect yourself during declines of value in any one type of asset.

[@jimb3093]

I inherited a home which is nice. But before that I always rented. Moved around a lot. That was before the rents went up. The most I ever paid was $645 a month. For a nice two bedroom townhome! I enjoyed the maintenance free living. I would come home, get my mail, pull into my parking spot, walk in and didn’t have to worry about anything out there. Now I have a large home and 5 acres lol! It’s a lot for one person. Wish the rents were cheaper, I’d go back. Now I’m considering a condo with a reasonable hoa.

[@paulmoore7064]

The rental houses that I own were old fixer uppers, purchased between 1984 and 1990. I did most of my own repair work. My mortgage has held steady, but rents have increased. While building new units under today's building codes and zoning requirements is prohibitively expensive, maintaining what I already have is not.

[@paulstandaert2042]

Here's a way to look at it. I will use my situation for an example, but keep in mind that it took awhile to get to this point.... I won't use exact numbers, because those aren't important. Property taxes (after the state refund): $1,200 per year. ($100/mo) Insurance $1,100 per year ($91/mo) Interest ($185/mo) The rest of the $$$$ is principle, assuming a $1,200/mo total payment: ($824/mo) If I was renting the same place for the same amount, where is that $824/mo going? Right down the toilet. Which it also does in the early years of having a mortgage. But after awhile, that $824 is going to go away completely and go right into your bank account. While it goes into the mortgage, it is essentially going into a depreciation-proof savings account. Based on my experience, the key to success in this department is PATIENCE while knowing that furnaces and water heaters are not THAT difficult to fix or replace. And landlords have a predilection to not fix either.

[@AustinandJeanette]

Patience is important and people forget about that!!

[@dsp628]

"Which it also does in the early years of having a mortgage." This is the key here. I fell for the 20% down on a 30 year mortgage trap. Between insurance, tax, interest, and maintenance, only 25% of my monthly living expenses is becoming equity! I could instead rent a place 25% cheaper and have CASH left over for more liquid and higher return investments.

[@paulstandaert2042]

@@dsp628 Going with a 30 year mortgage only hits you in regards to interest rate. But even then, it isn't that bad. Paying the same $$$$ as the 15 year rate but at the 30% interest rate often puts it at an 18 year mortgage and gives you a bit more of a cushion.

[@nrqed]

I am trying to understand your numbers. Is the $185/month on interest a value calculated by finding the total interest you will have paid for the full duration of your mortgage and dividing by the total number of months? Or is it what you are paying this year (in the latter case, it is quite biased because the first few years of a mortgage the fraction that goes to the interest is very large)

[@paulstandaert2042]

@@nrqed the approximately $185/mo is not a figure derived from the average over the course of the loan. It is what I am currently at, using myself as an example. I did a couple of refinances over the years and paid extra principle here and there, so the amount of interest I will end up paying can be tough to calculate. Early in a 30 year mortgage, the interest is over 80% of the payment, not factoring in property tax and insurance. So, the principle amount goes down very stubbornly. It is very discouraging and may cause you to lose motivation. It is one of those things where doing what feels good isn't good for you. Sure, it would feel good to live in a cheap apartment so I would have to do a lot less work, but at that rate, a person will be stuck doing that forever. When a mortgage is done, a person will still need to fork over property taxes, (and insurance) but the combination of those two things aren't nearly what rent costs.

[@Dylanh1717]

Yeah…… but after 10 years of paying 1200 a month on mortgage and 10 years of paying 1400 rent what do you have? Equity in the house most likely and nothing with the rental.

[@katiamontal7474]

Been renting for 35 years don’t own the door knob/ had friends bought in 90s in Southern California they are all millionaires and I’m still broke they had down payments in 90s

[@patrickleone4494]

When you own house you have control of what it looks like, what amenities you like, etc. A human being is LIVING in the house, not a robot.

[@kirbybenard620]

Telling people the TRUTH is why I always listen !

[@JimmyHuynhdesign]

My rent per year is less than my coworkers property tax. Imagine all the costs it takes to just maintaining a home and see if that amount is more or less than you're paying for rent. My rent is so much less so I just decide to rent and invest the rest.

[@agreen182]

Repairs, utilities, taxes - almost always these will close the gap between rent and mortgage payments.

[@S5King7]

My grandparents who had 6th grade educations and were domestic workers in a small Kentucky town lived by Dave's principles. For them it was just common sense and not living beyond their means and saving for a rainy day or to pass inheritance down. Somehow, these folks that made way less than what minimum wage pays now, were able to save over 100k, no investment so none of that was interest, pure savings from work. I'm in awe of them and proud of their accomplishments but they missed out on a lot of living. Never took a vacation, never splurged on anything. Ultimately they went to nursing homes and all their money was used for medical expenses. You have to find balance. I wouldn't want to sacrifice like my grandparents and never get to enjoy the fruits of my labor.

[@justinw8512]

That generation was so much wiser than me. Should have paid attention

[@jakeman9759]

I live by an Air Force base. This military pays for service men and women to rent houses in the area. Right now they give them 1200 to 1500 a month for rent.. the base is also expanding and rent will go up. The rent will ALWAYS be 1200 or more.

[@nashbraymen9564]

I know this video is old but Im 20 years old and I just graduated with an Associates Degree in Automotive Technology. I have a full time job at a Ford dealership and run a lawn maintenance gig on the side. I have no student loan debt and have paid my credit card off fully every month and do not abuse it. My goal in a year is for me and my childhood friend to rent out a farmhouse property with a shop on the property so we can store our trucks and work on them if needed. But when I look up farmhouse renting on Google, there's a lot of forums full of landowners who preach setting stringent rules, overpriced rent, and often say they would rather burn the house down. How am I supposed to separate from my parents and live on my own if buying a house in my position is next to impossible and renting a house is more like asking to put a knee on your neck? I work really hard and like I said have no debt... does America just not want a future generation? This is ludicrous!

[@Pierced2da]

Meanwhile if you bought a house two years ago when he was saying this and sold it now you’d definitely have a huge return. This isn’t always the case but you will never get a return from renting.

[@kentaurus9610]

This is facts, my mom was renting an apartment up until I was 20 yrs old and when I first bought a house with my mom and brother I saw the immediate benefits, buying that home helped me and my brother save money and buy our second home a small townhouse and it’s been life changing especially how cheap our mortgage is. Renting to me is just not an option because it too expensive and it’s only going up not down! Buy a house and start building your own wealth.

[@rhearobinson-thomas536]

This is very relevant especially with the threat of the threat of a global recession. It's on all of our minds

[@jamescurrent8794]

My income at this time isn't enough to buy a house, so I rent. I'm working toward changing that soon, I hope.

[@kotare86]

Rent and invest (say in index funds). Buy later in life

[@TopFlightSecurity415]

I have more than enough to put a good down payment on a home but I dont make nearly enough to pay for insurance, repairs etc

[@bruceellenburg429]

The worst part of homebuying is that if it takes 30 years to pay off a mortgage the house basically costs twice as much as what's on the deed, so it's buying 2 , getting one. Despite this, i hope i never have to rent again

[@charliesierra8315]

Add another 50% of your mortgage payment in monthly maintenance and upkeep.

[@vmonroig21]

Here in south Florida you can mortgage A 3/2 1300sq ft for 1400 or rent a house that hasn’t been remodeled since the 90s for 2500 lol

[@melaniegarrett-bailey3335]

This is what I've noticed here as well

[@singletracksender9021]

South Florida rental market is atrocious. Half the ads are scams and the other half are overpriced undermanaged garbage. 1/1 is easily 1100 now before utilities and empty units literally get gobbled up before you can even get to the place to look at it. I’m so burnt out looking for apartments but I’ve noticed you can buy some oceanside condos for 85-115k... uncle Dave is crushing my dreams lol

[@Nothingineternity]

Central Florida is about the same

[@chezshirecat1872]

About the same in North Florida, the rent is stupid here, but got a good deal on my house

[@snackpup]

I wanna visit Florida! 🙋‍♂️

[@Hallowsaw]

So why cant you buy a home that is equivalent to the rent? 1000 a month rent is what a 150k ish give or take on the interest rate. You will own it and you can actually change and improve stuff then sell it for a bigger and better house

[@jisson57]

You can if you're debt free with an emergency fund and down payment saved up.

[@wekatz1]

I find renting to sometimes be better. Owning means you own all the headaches mortgage, home repairs, lawn maintenance. I live in a very nice apartment yes it's expensive but hey I have a pool , workout room basketball court and repairs are not mine. I walk through a well maintained beautiful landscaping courtyard. Yeah I pay for it all and all the maintenance workers keeping it looking nice. I could not afford all of this owning a home. Just my opinion. Plus I invest in real estate in another way

[@keywestalert6329]

But you have a choice wether to try to make your home look nice in your own home. In the apartment you are in you have to pay these folks to cut the shrubs how they want. You have more freedom sir.

[@tylerlamb9930]

@@keywestalert6329 Not if you're dealing HOA. They can charge you money if you don't keep your lawn nice. And unless you have land between you and your neighbors or you live in a ghetto neighborhood, good luck finding a neighborhood without an HOA.

[@JiisTube]

Yeah it's nice

[@AlexisRuiz-z9j]

In California the rent is so extremely high it's ridiculous

[@ivalle38]

I've been at a rental house going on 5 years now my lease is coming up again in August but every year it goes up $50 but now it's going up a $100. I been trying to buy a home because I know I can pay the monthly cost I done proven that. If I add up all the rental payments it's over 60k, so far in this battle of buying a house I see rent is being broke and putting yourself in debt.

[@patriciamuszynski1328]

I live in a college town and each year my rent goes up in my studio apt. Averaged rent in my area is $900+. Shoot if you own a home you can at least rent out a room to help make mortgage.

[@nangs2039]

I feel like I'm asking a simple question and getting yelled at for not knowing

[@michaelchafe1353]

Wish dave would talk more about things that could apply to California.. but all he'll say is well move out of California... lol

[@denisemeans2024]

What more is there to say?

[@canman5060]

The truth of the matter is there is a very deep division in the State of California.

[@Itsellasky]

I'm in Los Angeles ...Love dave, but LA is a different animal.

[@DietTimboSlice]

Because it's great advice.

[@italiancapo7]

Exactly...Agreed.

[@ebrisu]

Ramsey constantly talks about a unicorn scenario. 1/4 take home pay, 20% down payment, 15-year mortgage? That is unrealistic in 2024.

[@katashi222]

Good advice!!! When a person is ready to buy a house, they will know. The problem is that many people buy a house to brag to others. But they know that one missed pay and they are in trouble.

[@AuthorBougieQue]

Ppl that buys a house are fresh...they need to speak to me after 10 years and give me their true thoughts on buying a house, lol.

[@tashahall1855]

That's the culture we live in , all show