Asking RICH Renters Why They Don't Buy a House

[@CharlieChang]

What's your take on renting vs buying - what's better? Let me know in the comments section :) Have a great day and hope you achieve everything you set out to do! -Charlie

[@MrErichuizer]

We choose to invest the money it would cost us to buy a similar house, since our investments make more then our monthly rent. So we rent.

[@steveshow-tos5394]

I’m in So-Cal and I chose to buy. I moved around a fair amount for my job, but decided to buy my current house and then rent it out if I ever moved again. I didn’t move, so I still live in the house I bought. But I was lucky in three senses. First, I bought a small house in my home town in Oregon back in the day when I was 20 in 2001 and where prices were lower, which gave me a small bit of equity for the down payment on this house years later. Second, I live & work in the IE (inland empire, which is an hour from the beach & LA) where things are cheaper. Third, I’m into DIY stuff, so buying a less expensive historical fixer upper from 1888 was just right for me. In the six years since I bought this place, the market has doubled and I have the equity to move to a more expensive area now, if I want to (though I like it here, so I’m staying). In sum, starting small wherever you can and letting equity work for you can be a workable strategy.

[@habiburrehman-d9u]

brother i want to connect with jeff . He is not coming on my search-linkedin

[@ml-bk9rz]

@@MrErichuizer This seems like a pretty good idea as long as someone can establish a good relationship with their landlord.

[@yankinwaoz]

@@steveshow-tos5394 1888! Wow. Must be a Victorian. I think that is too old to be a Craftsman. Anyhow... they sure built them better back then.

[@willli2791]

“You don’t need to reinvent the wheel, everything has already been done. Copy it and do it better.” I love it!

[@yankinwaoz]

I listened to that and thought "Isn't that exactly what the phrase means?"

[@checreates]

Something people don’t talk about is buyers remorse, mixed with the unexpected payments you take on and may possibly not be able to afford. The cost of buying and being responsible for unforeseen fixes is not often shared in the excitement of reaching this “ultimate step” of adulthood and success.

[@tommyboy7427]

Yes. But no one or very few people who bought a home 10 years ago is regretting it if they still have it. As far as now, it's a bad time to buy for most IMO due to the high interest rates and high prices.

[@nolovej7784]

Buyers remorse for the win!!

[@freemarketspeople3514]

Buyers remorse is an emotion to be controlled.

[@TEWMUCH]

Good point. I think if ppl are encouraged to buy things when they are not ready, they will likely have remorse... but for those who did the due diligence and the decision to buy fit them well, they will likely be happy with their purchase.

[@user-kpkxgtj]

I've also noticed people generally understate the amount their house actually cost them. They will say "I bought my house for xx dollars 20 years ago and just finished paying for it". Which means the house didn't in fact cost them xx dollars, it cost them the total of their down-payment plus closing costs plus 20 years of monthly payments, all of which of course add up to much more than xx dollars, especially if they spread it out over 20 or 30 years. Is it really possible that so many people simply don't understand debt / loan math? 🤔

[@ATLJB86]

From the people I talk to, they don’t want to be stationary. They like moving from place to place, city to city, country to country. Nobody wants to sit in the same spot for 30 years. This was years ago when I was having these conversations so reasons are probably a lot different now. More circumstantial things. I just know the younger generation likes to move around.

[@CharlieChang]

I like that! That makes a lot of sense

[@Boristhebulletdodger86]

If you noticed. He listened more and didn’t divulge info from the question. “Don’t say 7 words when 4 are needed.” I struggled like you in my early 20’s too. Good luck.

[@HannahCoziCorner]

That's so true

[@FreedomPlaya]

Yes, what makes the most sense is buying Investment properties 😊

[@Bojaxxx]

I hear this a lot. I have bought and sold 4 houses so far (I'm 31) and I think people should stop associating buying with 15-30 years. I bought my first house for 30k sold it for 80+k in less than 6 months. Same time frame with my second. My point is you can buy a home and move every year still and if your smart actually make money at the same time. Just a my two cents.

[@jasonsiu1441]

the first guy who is 21 is so well spoken lol, I'm 20 myself Im nowhere near his speaking skills

[@CharlieChang]

Yeah he is such a G - young and a real entrepreneur

[@supreme_zeeyus]

You can tell he put in the time to get better at it, you can also improve 🙌🏾

[@KhmerH20]

he's definitely has the zen sort of vibe.

[@baldeagle4710]

i really cannot believe he's 21...he easily has the maturity of a 35 year old

[@yeetya3203]

Nah dude talks like an NPC. But respect to him

[@MisterKelisi]

I hope the first guy continues to prosper and become extremely wealthy! Thank you Kevin for your insights - very encouraging. God bless you.

[@netcoded]

he sounded like ai

[@Lourdes-A.]

Some people don’t want to buy a home because of all the responsibilities and the hidden costs that come with home ownership. Owning a home would also tie them down to one location which makes it harder to just pack up and move elsewhere.

[@TEWMUCH]

This is me. When I had the money to buy a home, I didn't want the responsibility and I wasn't necessarily committed to one. Now, I dont even have the money to buy one, and it's a terrible time to buy. And im still not sold on any particular location😂 but in short, everyone is not always in a position to buy one, whether that means, money-wise or mentality-wise or career-wise. Alot of times, we ignore the fact that there are lots more factors that go into buying a home,.and each individual needs to review their lives and goals to make sure, it is the appropriate time.

[@daveariz]

The first guy is well beyond his years, very mature! I hope he buys a home soon if he can afford it. Best investment I made in the Bay Area.

[@kendrickpark5701]

Thought this too. 💯

[@user-ze4cx5sn5c]

what makes it the best investment?

[@daveariz]

@@user-ze4cx5sn5c bought it in 2015…value more than doubled so our equity is phat.

[@ESW206]

He looked 30

[@ESW206]

Damn what store Janice work at

[@brandcoachangel]

Asking people why they rent in SoCal is similar to asking people why they rent in NYC, these are two of the most expensive places to live in the world. I’d be curious to see what answers would be for people who live in other less expensive cities.

[@AENG1991]

I was thinking the same.

[@amirhamza122]

I’m from Northern Jersey, renting was nearly impossible for the middle class unless you have government assistance. I moved to Pennsylvania with my then girlfriend (now wife) and at first a one bedroom was 1400 in a new place. Last month, rent went up to 2000 and none of the jobs paid enough to be able to afford that. Now, we live on the gulf coast since I inherited a house. The wages don’t match still, but at least we own the property. It’s a bittersweet situation, because owning property has its setbacks as well.

[@JuniorShepherd]

This really comes down to a conversation of people that are single/couple, vs those that have families. For families, owning a home will likely make more sense, so that you can avoid the burden of having to move your loved ones every year or two plus the added challenge of findings great and safe neighborhoods, schools etc. For single individuals, renting is a no-brainer and the way to go to maximize the use of your earned income.

[@scientist200]

Yes

[@TopFlightSecurity415]

exactly !!

[@MiamiT_781]

Totally agree, especially young professionals who are still navigating their careers and may have location changes to accommodate

[@SemekiIzuio]

Yes one is setting down roots and a foundation the other is practicality in moving around anywhere and everywhere

[@sam56094]

How do you maximum your profit by renting? . If you keep leasing a car as apose to maybe owning 1-2 cars . Do you spend more owning or leasing. If you think long term a house safes you 10x more dude.

[@kevinmle]

It was a pleasure meeting and speaking to you and Joey!

[@hodgepodge888]

Renting vs buying really depends on where you live. If you live in SoCal for the long term, buying is better. Unless you live in a rent controlled apartment and you're happy with it. Cost of rent is going to go up. Rent price went up over 50% in the past 10 years in SoCal. Even in areas that used to be considered "ghetto" is now super expensive to rent in. A lot of people make the mistake of increasing their lifestyle just because they earn a high income. The income might not last because something can happen at any moment. Better to maintain a modest lifestyle and focus on increasing your overall net worth. You can slowly increase your lifestyle as your net worth grows. Don't make the mistake of thinking you can spend lavishly just because your income is high. High income does not equal wealth if you spend it all every month. High net worth = wealth.

[@Cucumberflavoredmustard]

Sometimes renting is better, like if you are planning to stay in an area only a couple of years and your profession moves you around a lot. It's also an alternative if you absolutely hate/don't have time for managing a household in terms of repairs, taxes, and whatever else is entailed. The first guy has a good reason too, just seeing which way the wind blows before he commits.

[@Seboistian]

This video made me realize how thankful I am to own my home because those Rents are insnae

[@leetcodeking4859]

Same here. I have a 4 bed 4 bath. And pay $800 dollars a month mortgage here in California. But I bought 5-6 years ago.

[@CharlieChang]

Especially if you have a fixed rate mortgage!!

[@bradtrades]

I suspect for a lot of these people it is wishful thinking on their time horizon to buy a house. Timing is everything, and I hope we see low interest rates again when it is time for them to buy. Makes me grateful for my 2.75% mortgage.

[@hardy2175]

Mortgage rates are not fixed over the long term, so how does it matter what prevailing rates are.

[@GameFuMaster]

@@hardy2175 usa have fixed rate 30 year mortgages... if you haven't paid off your mortgage in 30 years, you've got some serious problems

[@FirstHandLLC]

@@hardy2175What the hell are you talking about? Most people get a fixed 30 year mortgage in the US, then refinance to another fixed mortgage if the rates drop!

[@yankinwaoz]

@@hardy2175 Huh? Perhaps you aren't from the U.S.? Here, getting a fixed rate 30 year term is pretty common. I have a fixed 2.99% 30 year mortgage on my house.

[@falka6751]

Yeah but how long is your 2.75% mortgage gonna last? 1 year? In Australia interest rates were 2-3% during covid and people could get that for 2 years. Then what happens... it goes back up to 6.5% and people can't afford to pay of their mortgage. So nice advice there mate :)

[@channirichardi3369]

I rented for 12 grand a month in Soho when I got divorced last year. I wasn’t stable in New York and didn’t know where I was going to end up, so I rented. Depending on your situation and lifestyle, sometimes renting is best.

[@GavinWongSG]

Yeah plus in Manhattan renting is usually cheaper so why bother. Even appreciation has been pretty poor compared to other areas.

[@Johgfn123]

12k a Month???

[@Ryan-wx1bi]

Girl divorced a tech mogul paying that type of rent

[@davidrivas6412]

It's insane how expensive the housing market is in California and even these high earners still refuse or postpone in buying a home in California. With their income they can buy a nice mansion in another state.

[@Malibukenn]

They can buy a house in California with the amount of rent they pay. They just don’t want to grow up.

[@Malibukenn]

Or their careers are fickle.

[@legendaryauragod81]

bro one of them is 21 he doesnt have to "grow up" hes not refusing to he is keeping his career paths open to maximize how much he can make @@Malibukenn

[@zombieboy937]

The thing is, other states don't have the same economic prospects as California. Even with the money they spend on rent, they are probably saving more money than they are spending.

[@breea07]

@@Malibukenn not true. I live in California and for a 750 square foot condo, the same as my current apartment, the mortgage would be double what I pay in rent. Interest rates are insane.

[@YogaBlissDance]

Ramit Sethi whom I trust explains that there are LOTS OF hidden costs to home ownership that no one counts. And literally investing usually works out better than money from home.

[@JohnLee-ot5ed]

In theory using your down payment to invest in stock market will give you better return, but in reality buying a house in a nice neighborhood allows most Americans to retire with a decent net worth. Mortgage is forced saving for 10-20-30 years. Even the most deciplined investor ended up trying to time the market, cannot invest steadly for 30 years.

[@GavinWongSG]

@@JohnLee-ot5ed You don't have to time the market as a long term investor in the stock market. If renting is cheaper in your area- you can simply invest the difference between a mortgage and rent monthly in addition to the down payment. Not to mention this allows you to move.

[@aquila1993]

Exactly. The house I grew up in here in CA that my mom still owns comes with SO many hidden costs. Something breaks, sometimes the plumbing needs to be fixed, sometimes trees have to be trimmed.... it gets so expensive.

[@Matys1975]

As a home owner, I can attest that there are a lot of hidden costs. At the same time though, my house increased in value by 200k over the past 5 years. That way makes up for all the hidden costs I have endured and then some.

[@thedeadz0ne1]

​@3535msj I've heard this a lot, but my immediate thought is that you don't actually get that 200k until you sell your house... Then what? Unless you're downsizing or moving to a lower cost of living area, any new place is likely to be equal or more than what you sold for. Not saying it's impossible to come out on top, of course not, but many people treat that 200k "appreciation" as "cash value" and IMO it's not the case

[@mkrowenp]

Really refreshing to hear Kevin talk about leaving college after one semester, and his reasons why were very mature of him. It shows that college is not the right choice for everyone (For transparency, I have three degrees lol). I also really like the argument that in a great complex like where you're interviewing, there are many like-minded and motivated people to form a community with. I don't like to feel isolated, and would love to interact with people in the halls or lounge areas :D

[@glowone2256]

@bat3891 what have you done with your life

[@certifiedfinest5065]

@bat3891start up your e-commerce hustle too

[@danielxavier7291]

@bat3891 These people usually have an secret that was critical to their success that isn't accessible by anyone. He could have come from a rich family and got free credit from them, for example. For me, this thing of "leaving college after 6 months" and assuming the risk to do something new with zero guarantees and support is pure bullshit.

[@insertnamehere2479]

@@danielxavier7291 thank you it just felt like something was missing from the story

[@rosifico]

I hate the narrative that someone can quit college and succeed without some “secret” as much as the next person… but I also hate the idea that someone can’t ever succeed without assuming there was a secret. Both can be true. There are people who quit college, found some other calling, and are doing well. There are people who finished college, who are struggling. There are people who did either, and are currently experiencing either or both. It completely diminishes the fact that Kevin is an entrepreneur who is doing well. While we don’t know his full story, it’s not fair to assume “oh because he’s doing well, it must be because he has a rich family.” Admittedly, as a college dropout who does not have a rich family and is still doing decently… while I resent when people “who made it out” are put on a pedestal rather than the focus being the systems that fail everyone else, I also recognize not all success comes from generational wealth. Some people do just succeed, and hopefully we put parts of that success towards the people who helped us get there.

[@SGVFOOTBALL]

Would like to see this from rich people who live in homes vs apartments. Would be harder to find the right people though.

[@CharlieChang]

Yes that would definitely be interesting. usually seems like people who want more space (family, etc) will eventually move into a house. That's my plan as well some day

[@PelosiStockPortfolio]

You can ask me your questions

[@willjackson2135]

@@PelosiStockPortfolio 🤣🤣

[@lilblackfish2009]

theyer probable over 40 lol

[@certifiedfinest5065]

@@willjackson2135lol Pelosi

[@Priust189]

I don’t think renting is throwing away money because you are trading it for a place to live

[@paulcao3186]

Exactly my thoughts. I acknowledge the pros and cons of renting vs buying, but for me, it boils down to why would it be a 'waste of or throwing away money' when I'm able to put a roof over my head nightly - one of the necessities of life.

[@user-ze4cx5sn5c]

I concur. Such a thoughtless statement.

[@Khanfuzed1]

Seriously… especially when buying a similar place will suck 2-3x the money. I have a roommate in Miami now. My total cost of living in prime building with incredible amenities is under 1800$/mo… The mortgage alone on a similar condo/apartment would be over 7000$/mo. Plus, it is rare the amenities are updated/as modern as buildings that have to constantly compete to get new tenants. So, basically i take the difference and invest it. Win-Win scenario

[@hime7367]

I'm 40 and seeing these kids making it makes me envy and proud of them at the same time. I got sick at 23 when my future was so bright and thought that I would make it. Health stole everything from me. However, I'm blessed to be in the USA and especially in Ca where I got to enjoy a simple life getting SSDI each month that can also pay for my rent in SoCal.

[@AwokenEntertainment]

the average age to buy a home in our parents generation was 27, for this current generation the average age to buy a home is 49

[@ismaelmasso6662]

If ever 😐

[@fauxbro1983]

Average house was alsov950 sq feet

[@kalliemj]

I live in a house with my family. Our community is relatively small despite the fact that 3-5k houses can be built in the area. Most people have decided not to build so there are only about 30 houses built. We know every single neighbor and have community events, play pickle ball together, we always wave to one another when we go for walks, etc. it’s a really nice community. We all help each other however we can. There can definitely be community in a development. I talk to more neighbors here than any other apartment I’ve ever lived in

[@janicekhuang]

i was definitely caught by surprise by this interview while tanning at the pool LOL but very nice to meet you charlie :) see you around the community!

[@AccentBwoy]

U look great at the pool

[@panchorita5933]

🔥

[@Ryan-wx1bi]

Why don't you just live somewhere cheaper to save up for a down payment on a house? Probably could have afforded one a few years ago when interest rates were around 3%

[@janicekhuang]

@@Ryan-wx1bi i own a house in texas which provides well for my living in california, this part was unfortunately cut out in the video.

[@janicekhuang]

@@Ryan-wx1bi also i did get my house for less than 3% :)

[@dcmuscicc]

Congrats on your 1m subscribers 🔥

[@Mazwun]

Absolutely relatable when the first dude said college felt like High School and he didn’t want to learn how to do what he wanted to do from people who don’t do what he wants to do. Spot on!

[@asnboy1084]

I got a house in OC with a good school district, a pool, palm trees. Let me tell you what they are paying for is way way cheaper than home ownership.

[@GiorniVenibato]

I met a middle aged middle class couple back in the 90s whom were always renting expensive houses to live in. I didn’t ask them why they didn’t just buy but fast forward 20 years later. The husband still worked in his old age because they never owned a home as a safety net!😢

[@MrThe1234guy]

Even the old couple who did by the house are still working LOL

[@DC-gp6hd]

​@@MrThe1234guy it depends on if they paid their house off or not. Are they working to live or living to work?

[@Danybella]

You kept in touch with them for 20 years. Wow.

[@mrbeverlyhills834]

Yeah..well guess what, most of those people refinanced and pulled money out/wasted it at some point too. So they still have a mortgage in their 70s haha.

[@salvadorvega9834]

@@mrbeverlyhills834then we have people like my parents who bought their house and pinched for years to pay it off quickly. They borrowed against the house to start a business and it took off. We now own several properties! I just purchased my first home at 24

[@rbkrishnasarma]

Homeownership is a good investment: there's also a big commitment. you have to ask yourself, am I going to be here for the long term, can I rent the place, there's also upkeep, projects and costs to maintain them. If a renter has an ac unit go out, the building takes care of it.

[@PierceJPeterson]

Dang, that phone actually has a pretty good mic. Great video, Charlie!

[@CharlieChang]

Yeah! Might be better than my normal mic lol

[@Milestonemonger]

We're retired military and defense contractors. We never bought a home anywhere because we were always traveling. Since retiring, we've been living in airbnbs all over the world. We choose where to live and for how long. The freedom that comes with not owning a house is absolutely incredible. Last month we were in Las Vegas for the F-1 race. This month, we're in Montana visiting family. Next month, we're off to Hawaii. If we owned a home, we'd have no choice but to live there.

[@richlor92]

Kevin spoke to my soul about leaving college after a semester and me wasting my time in college with debt.

[@hugoglenn9741]

I learned a lot in college in classes like economics and statistics that are useful for this video. But if you’re not performing or taking the right classes you’re wasting debt on College. Thank yourself for only 1 semester of loses. A friend of mine’s son took “History of Gandhi” at a private college. Now he cuts concrete and working hard has started his own business, nothing to do with Gandhi. His dad paid $300k for nothing

[@olilumgbalu5653]

Someone needs to do a video on the College Delusion. College was a good route of poverty for a select time period post WWII but by the 1990's it didn't make financial sense for a lot of people going to college and yet more and more people continue to go to college because their Boomer and early Gen X parents thinks since it worked out for them it will work out for their kids. Not to mention college was so much cheaper in the 60s and 70s than it became by the 1990s till today. And scholarships abounded previously where there are hardly any now.

[@Harpie.]

I would like to hear how the first person started their business with only $2k.

[@likes-yv3lj]

Hi I’m 8 and I make $25k/week. I started a tech company in 1st grade and sold it to google and now I get government contracts to clean remote beaches in the Atlantic Ocean. My rent is 15k/m

[@jml9550]

Don’t forget your medication.

[@jasminecontreras7341]

🤣

[@UltimateAwe]

Hilarious…definitely the vibe of this video

[@magnanorris3530]

First dude just 21 years old and set, it blows me away, his mindset is incredible.

[@Winamp_]

if you are renting it is essentially a tax deduction if you are self employed or running a business, this is money you kinda would've been forced to either invested or lost to taxes either way. I dont see any problem with renting in America in particular since all the houses are kind of fake paper anyways. In Europe where I am from it's different story, the houses here goes down in generations, there are real actual value to homes here. I guess the value in America is actually the land/plot to be honest?

[@Jessica-qp6fc]

I love the first guy’s communication skills.

[@handsomeblackmuscle9845]

I bought a 2018 Mercedes Sprinter Van and modified it to be a home on wheels. Best decision I ever made. I have no rent, I can get my job done from a laptop, I get to travel around and meet interesting people and explore new lands. It's awesome

[@bigk0101]

Great vid. I think it all depends on your stage in life. I rented luxury apartments with my wife and a roommate for years most we paid was 4400-4600 in marina del Rey. Was beautiful. But wife and I wanted our own so we bought in 2021. My wife and I now have a son and she stays home but I make around 180k bought a house for 500,000k north of LA in the desert mountains cause I work from home. Takes an hr to get to LA for a night out but we have the peace and quiet of the mountains and land. Our mortgage is 2600 a month if you add our property taxes monthly it’s 3400. Still cheaper than most of our old apartments in LA

[@bigk0101]

@@JM-gc8fn Palmdale

[@certifiedfinest5065]

@@bigk0101nice bro where in Palmdale?

[@BelleResells]

My childhood was in Palmdale i went to Quail Valley Elementary! Wonder what op occupation is

[@certifiedfinest5065]

@@BelleResells where do you live now??

[@itshadouken]

I rent where I live and rent what I own. We’re able to rent a house for $5000/mo that to own would cost $11,500/mo + debt. Then we rent our house for $4500/mo when our mortgage on that house is $2250/mo. This gives us $6,500/mo to invest and earn interest on rather than putting it all into another mortgage.

[@winconfig]

First person you talked with slapped me hard with solace and tranquility.

[@robshin8078]

Since houses are so expensive, I wonder if a better question would've been "Why rent instead of buying an apartment (or condo or co-op)? Perhaps something to consider for a future video? Thanks for the great content as usual.

[@Mike-dd8bd]

Yeah I can understand why people won`t need a house. But I am sure there are plenty of condos for sale in socal area.

[@ToulouseFan]

Yeah with these interest rates and the prices there the mortgage is at least 10k for a nice house so the luxury apartment seems like a bargain actually

[@Asafo87]

Lack of supply. The only purchase option in the majority of metro areas is single-family homes. This is due to zoning laws prioritizing low-density residential lots.

[@aisherwasher6959]

When I hear people talk about buying a house, they generally mean any property that they can live in (including townhomes and condos)

[@sasukesuite1]

I make over $200k a year as a 26 year old in Northern VA and utilities and all included I pay $1300 for a room. Recently found a place for $750. Renting is donating to rich people and I choose to give rich people the least amount of money that I can.

[@TopFlightSecurity415]

now that is smart

[@certifiedfinest5065]

Is the $750 room comparable to the $1300?

[@sunchips18]

I’m from NOVA, and I’ve never seen places that cheap before. What are you doing to find places like this?

[@user-rk2ww2cm4v]

Janice, you're not too old for YT and you look great. Go for it... the worst thing you can get is a no, just keep trying!

[@janicekhuang]

thank you!

[@toothfungus5801]

@@janicekhuang hi you’re beautiful

[@davidc4408]

I moved to New York. I own $6 million in real estate . The reason not to buy where you live is so you can move easily and not have hassle of ownership. Repairs etc, ownership is good if holding long term or in bull market for quick sale. Short term can be risky with taxes and economy

[@Imran-Lalani]

From a pure net worth perspective you will come ahead in the long run if you rent. It frees up more cash flow to buy index funds in the stock market. Buying a house is the most overrated thing in USA.

[@Imran-Lalani]

There are many other costs associated with just a mortgage. I did mention that you have more buying power while renting. Stock market has returned over 10%.

[@scenario7gaming202]

Exactly. Tying up a significant amount of your cash in a personal home that will barely appreciate vs. even buying an S&P500 index fund (9% a year) isn't worth it

[@scenario7gaming202]

@jonny_laguna but not faster than an S&P 500 index fund. So don't buy a house

[@Imran-Lalani]

Are you saying don’t buy index funds? @scenerio?

[@thesuperiorman8342]

If you're going to pay over 3k a month on rent then you're better off mortgaging a house.

[@yankinwaoz]

That's sad. When I was in my 20's, I rented a room in a condo in order to save money. I was able to save over $1000 a month (back in the 1980's). When I was 30, I had saved enough to buy my first condo in Santa Barbara, which is one of the most expensive places in California. Most of my career, I've rarely made over $100k a year. It wasn't until recently that I started making over $150k. I'm now in my 50's, and own a nice 4bd/3ba house near the beach north of San Diego. My mortgage is less than $3k, and total housing (mortgage, taxes, insurance, HOA, sewer+water) comes to less than $4500 a month. The house is worth well over $1.9M. Earlier this year I installed a solar system under NEM 2.0 which has reduced my electric bill to zero, and subsized my gas bill to about $20 a month. Another thing that we love about owning our home is that we have our fur-babies without needing permission. We adopted 2 cats and a dog, all rescue animals, and have given them a lovely and safe home to live in. They are so much fun to have around. We didn't have to ask anyone. Or pay extra rent for them. When I retire in a few years, my mortage and solar loans will be done. Thanks to Prop 13, my taxes will be low and managable (about $1200 a month). I can retire on SS alone, which will be enough to cover all of my housing expenses, which will be about $1500 a month. And my last trick, when I am old and need money for full time advanced care, is that I plan to tap the equity of my home be either selling and moving into a care facility, or taking out a reverse mortgage. It should be more than enough to pay for it. I reckon I should had over $3M in equity by the time I'm 80. I'm so glad that I make the sacrifices I did when I was younger. Being an owner, they allowed me to take advantage of the low interest re-fi mortgage rates of 2020. They allowed me to leverage property appreciation to buy our current home. They allow me to take advantage of NEM 2.0 to get out of paying sky high prices for electricity. It allows me to rent out my extra guest room+bath to students for a little extra money, and having a pet sitter and house sitter when we travel. I allows me to retire without worrying about how I am going to pay for roof over my head. And I did all of this in expensive coastal SoCal, on a middle class wage.

[@Lightning-bv2vv]

Wow this is sad ur life is sad, why do u need someone to take care of you in a facility that is so sad and you have so much money bro go make some kids so they can take care of you when older smh.

[@yankinwaoz]

@@Lightning-bv2vv What if your kids don't want to wipe your ass when you old and feeble? What if you don't wish to burdon your children with this? The chances that you will need nursing care when you are old are pretty damn good. My mom has dementia and is going downhill. She is now at the point where we can no longer care for her. She has no idea who we are. She doesn't understand that she has shit her self and needs to be cleaned and changed. We all work full time jobs and can not babysit her 24-x7, which is what she now needs. But the care she needs is super expensive. Around $10k+ a month. She doesn't have that much money to pay for it. So we are having to sell her home, and everything she owns, so that she will eventually qualify for Medi-Cal. Then she will have to go into a care home. Planning on your kids taking care of you is terrible plan. Even if your kids wanted to, there are things that happen that even your kids can't handle. You need professional care, and that costs a lot. She is temporary in a care facility because she had an accident and broke her foot and hip. Medicare is paying for it. But as soon as she is mobile, she is going back home. I visited her on Sunday. The place is horrible. A warehouse of old invalid people, two to a room. It smells. I never want to end up in a place like that. I hope that I never get into that state. I hope that when I die, it will be quick and painless. But the odds are not in my favor. I have to have a plan for the worst case scenario. That is why we bought LTC policies in our 50's. That is why I plan to tap our home equity. I don't want to end up a in state run nursing home warehouse where they just wait for you to die. That is sad.

[@Lightning-bv2vv]

@@yankinwaoz if you don't want to end up in there state take care of your self so you can be healthy, but in my culture we take care of our parents when we get married and live with them. But I guess ur method makes sense. But for me that would be very depressing.

[@Humboldt88]

Bravo! It's great to own a piece of land. Ppl have gotten lazier, they don't want to mow their own lawn, or rake up the leaves when the fall comes. We should invest in homecare workers, so those who don't have children, can have a dignified life their last years.

[@hugoglenn9741]

My situation is exactly like yours except for a few critical changes. I’m on the East coast. I don’t live near the beach, I’m on Saltwater(Dock) a block from the beach. I didn’t make over 150K much less 100K except for a couple years. I don’t work, I’ve been retired since my 40s. I’ m not house poor, I don’t have a mortgage and never had loan. I drove my cars into the ground and now own a new S class. I’m not in California so my taxes aren’t $1200/month they are $300/month year and my house if over 50 percent more valuable. I won’t have to get a reverse mortgage if I need elder care, I have assets other than being house poor. I don’t rent out parts of my house. I don’t have to weekly vacation rent my house. WHY do I say all of this. The big difference is I rented in the 80s/90s and saved not 30 percent of income but over 60 percent most months (over $1000 but not significant more) The most important part of the money was dedication to half ass investments in the stock market. I didn’t have a 200x return in a stock like my father (the buy order never executed for me) but I’m an average investor, up 40x. I was never fully invested and never ever bought real estate because I moved in the military and would have rented for cheaper shelter anyway. It’s called deferred pleasure and I will crush anyone on my current level of pleasure.

[@hyakushiki23]

Just remember, we have no idea how much debt these people are actually in. Also no idea how much money they get from family. What retirements plan they are doing

[@perfectbeat]

That's what I was thinking.

[@JokerCat9]

Most of these people are physically attractive, which makes it much easier to make money.

[@dabiz4272]

I like how Chang doesn't everyone the same exact question like a lot of other channels in this niche

[@JaggedMercenary]

Always own at least one home. ALWAYS. Trust me, bro. *leaves like a Gigachad without any explanation*

[@Laralove14927]

If I were rich, I would buy a house, rent it out, and then use that rent income to rent my own place

[@MrJspecefini]

This is the way to go. I know someone who does that. And he’s not rich by any means.

[@NessyontheGo]

Depends on the tenant. Hopefully they would be reliable and not screw up your property.

[@dominostimes2119]

@@MrJspecefini ..until the mortgage is paid off 🤷‍♂️

[@PassportCalifornia]

Smart. This girlknows. 🧠 you’re already a step ahead. Solid simple investment advice. 📊

[@FreedomPlaya]

You don’t need to be rich to do that. My most recent client, a single Canadian lady, is buying an affordable investment condo in Playa del Carmen, while she will continue to rent somewhere affordable and have her condo rent pay for her living expenses. Home ownership is still affordable for most people as soon as you open your mind beyond one’s own ‘back-yard.’

[@95netta]

@9:00 "What do you pay for rent." "5,600 a month." "Do you think thats a decent price?" "Yeah its close to the gym and it has a nice view." Damn that is such a crazy amount

[@Leo.Dunson]

what that first guy said about surrounding yourself around the right people, that was deep. No one ever talks about living around the right people, but just keeping the right company. This guys comment is stating that you should aspire to LIVE AROUND PEOPLE who want more or people that are just doing more.

[@AJourneyOfYourSoul]

Janice, you are not too old. Don’t sell yourself short. Put yourself out there, and with experience will come confidence.

[@m.o.s.h.1836]

Owning a house is much better than renting because you don't have control if your landlord will increase their rentals as much as they want esp. in highly urbanized areas.

[@pigskinrode0]

21 and making 6 figures . Damn I really made some bad decisions. Good for him 👍👏

[@baldeagle4710]

that dude is loaded. i think he didnt even go to college, just went straight to the workforce. you dont need an education to do e-commerce

[@livedreamsg]

6 figures is such a broad term. I make $100k to $999,999 can't be compared at all.

[@chipsun2504]

So this is who’s paying my mortgage. Keep hustling and thanks.

[@AJourneyOfYourSoul]

Way to go Kevin. Keep grinding brother and checking off those goals.

[@CollieNike3]

Dude, you must be in Irvine. I've lived in OC all but 5 years of my 40 year life--I own in Laguna Hills now--and I'm calling it, this is for sure Irvine.

[@CollieNike3]

And the 3rd guy has it right, in my opinion.

[@wickedbird1538]

😮😮Whenever I move to a new area, I have rented for about 6 months before buying a house. It allows me to learn the area.

[@thepain321]

$5k/month is more than half of my yearly income. Throwing that much down a hole on rent is insane. I struggle and fall behind in bills trying to pay $300.

[@saptab1344]

You prob don’t live in America then cost of living is different here

[@JustenHarden]

Man, Kevin is only 21?? Inspiring!

[@AP90x]

Stop glazing

[@hadiyaahsan2264]

love your videos charlie!

[@ddavis8988]

I will always own no matter what. Even if I move and buy another house, I'll rent out the old one. There's simply not any logical reason for me not to own, no matter what situation I'm in. Cause if the area I'm renting is too expensive to buy, then I'd just move. Everybody is not meant to live in LA, NY, Miami, etc. Go to the suburbs, move states.

[@phader2]

I rent $650 a month… one bed, one bath and all utilities paid.

[@cooltrucly]

Something about Kevin is so graceful. His demeanor and smile is reminiscent of a kind king in history. lol.

[@mechavelli]

Buying a house is a big commitment and it is really about how you use your money. The first guy has other opportunities for his money and leverage it. The second person doesn't have anything else to do with her money so buying makes sense.

[@TheRealAudioDidact]

That first guy is THE BOMB! Love his attitude.

[@TK-gd9td]

home prices are defintely high but most these kids better off building equity in a 1-2 br in CA for 400-700k still would be cheaper monthly including all taxes and utilities than some of these rents. better to be rich in 5 years than to appear rich renting in a 'nicer' amenity apartment.

[@jml9550]

Yep, myself a landlord for 20+ years in the SF Bay Area. I always encourage my tenants to save and buy. Long term wise home ownership always beats renting.

[@jasminecontreras7341]

1-2 bedroom condo or house?

[@jml9550]

Condo or townhome. They are more relatively attainable as a starter, I am referring to the SF Bay Area here.

[@jasminecontreras7341]

@@jml9550 would you recommend buying a cheap condo in Southern California and attempting to pay it off early in maybe 5-10 years and then selling it or renting it out and getting a decently big house? I don't really know much about this, but just thought I'd ask since you're so experienced. I'm in my mid twenties and want to be more hopeful about my future living situation. A lot of videos here on KZbin are really negative when it comes to young people being able to afford a decent lifestyle. I'm sure it's mostly clickbait and KZbin creators just wanting us to be fearful and then click on their video.

[@michaltakac673]

For me it boils down to 3 topics: affordability, flexibility and security. I currently own, but I will probably rent soon ( and I did many times while owning in the past years ), as Im planning to move to other country. So for the flexibility, the advantage is clear, you can just pack your stuff and leave without any financial risk, legal burden etc. Affordability is a bit different, it really depends on your market, but there are certain places, mostly big cities where the price of real estate is so high you would not pay it in 50 or more years with the rent they ask for. If you add up the maintenance, acquisition costs and taxes, you are easily looking at 60 years of payments and I do not see myself in any of properties for so long. In that case, it's really easier to rent. Germany for example have very big acquisition costs where you easily spend 60k on legal fees to buy a 500k house, which is over 10% of the price. For the security, I guess the higher the cost of the property, the more keen Im on cash deals, which means the longer it makes sense to rent. If you buy and average house for 300 000, your monthly payment is somewhere between 800 to 1500 euros, based on your downpayment, interest rate etc. Those are sums that most people can assume to make, especially as a couple, so I would say its quite safe to buy on mortgage and assume you will be able to pay it back. On the other hand, a 2 500 000 euro house in France will cost you 13 000 euros in mortgage payments a month, which is way above the money most families make. So if your current situation changes for worse, chances are you are going to have hard time to pay that payments. Therefor, I would go for way higher downpayment, and that probably means you will rent longer till you get enough money for downpayment of 2 milions for example. Generally it really depends on your flexibility needs and the market you are looking at.

[@Milestonemonger]

Agree completely. 👍

[@anthonywilliams9415]

Extra props for using an One plus Open!!

[@CaesarBro]

I actually designed the OnePlus in 2008 but never patented the design. The bending screens were not in existence yet but I think the patent would have expired before I could sell it as a viable product. 😭

[@josequezada8326]

Congratulations on 1 million!!!

[@davidjohnson4045]

Andrew Yang’s book talks about the war on normal people and how we’re living in a gig economy. Jobs are temporary, people often have to have up and leave

[@jonathanpalma__]

Loved to see many points of view around the topic! I am currently 28yo. Just moved (renting) to a nice area in one of the largest cities in Latin America and I am aligned with what Kevin said.

[@talyahr3302]

I want to move abroad because that's the only way I realistically see myself being able to afford to buy a house. Hopefully I can come back the the US years down the road when it's better.

[@davonriley]

$5,600 a month is crazy for rent. At that point you might as well buy a house.

[@dojocho1894]

having owned multiple homes When you rent You dont have huge property taxes and upkeep with contractors is through the roof.... My friend just now has to replace his furnace 17K Price out new roofs......septic systems.......cracked foundations.......

[@TheRealUncensoredTravelGuide]

She’s not too old. 34 isn’t old plus she’s smart and people would have no problem listening to her. Maybe it’s just shy being on camera like 95% of people.

[@janicekhuang]

LOL thank you, and yes being shy is mostly it!

[@TheRealUncensoredTravelGuide]

@@janicekhuang My back is against the wall with a job I don't like--So I created my first faceless KZbin video. Something people can do in the morning and they don't need to see a voice, they just need to hear a voice for a morning routine. Half the time I use my phone to simply play audio, but yesterday I actually watched some videos. A lot of interviews you can drive in the car and listen to without watching people talk. When you're doing meditation in the morning, you don't need to see the person directing the breathing--you turn on your cell phone and move forward. I've been using Coursera to get licenses in AI and created my first Chat Bot for my Dad's company for proof of concept so I can get work for other companies. Soon my Corporate 100 job, peace out and I'll be working remotely forever and my 2500$ rent in Seattle will be pennies on the dollar. Apartments are certainly great, especially if you live in a brand new one. It makes you feel excellent and to like one's home is essential.

[@StayPuft209]

Did 3rd guy say he has a 12 year lease?! 5:53

[@rustyscrapper]

Its because they dont care. They dont want the responsibility. Its easier to rent then own, less work, less hassle, you just pay and live in it. In high end areas its far cheaper to rent then own too. You can rent a mansion for $10,000 a month that would cost $20,000 to mortgage.

[@MrJspecefini]

I live in Taipei, Taiwan now. For this who don’t know it’s the most expensive in terms of per square foot in the world. But rent there is dirt cheap. I pay $700 a month for a 3 bedroom flat. To buy that same property will cost 400k-500k. So it’s a no brainer for me to rent. On the other hand, owning to live in the USA is not as attractive after I plugged in the numbers. 300k loan at 7% interest for 30 years you end up paying 720k. Add hoa, property tax, closing costs, and general maintenance, that 300k initial loan will end up being damn near or over 1 mil by the end of 30 years. And you pay off interest first then the principal amount. So buying property in the US to rent out rather to live there is a no brainer. I invest into mutual funds and rental properties while I rent dirt cheap myself in a foreign country.

[@FreedomPlaya]

But international real estate instead :) Come to Mexico :)

[@jml9550]

Try Hong Kong. That’s a expensive place to buy and rent.

[@MrJspecefini]

@@jml9550 yea I know. Used to live there as well. Some people I know pay $4000 a month for a small 2 bedroom flat on Hong Kong side.

[@thomasmcroy1756]

The return on a house after annual expenses is usually less than 2 percent. Owning a home is sometimes a pain in the a$$ and time consuming. I miss renting often. Its not throwing your money away. Its a contract for a service.

[@fantomman3881]

The first guy surely has a KZbin Chanel with the way he talks very professional easy to learn off.

[@HurleyIsAStoner420]

I don’t think renting will make you meet more people I have a house and know all my neighbors and do have a community. I think either renting or owning can give you some community but most people I know that have a house actually know their neighbors because they’ve live along side each other for years while ppl that rent usually stay for a few months/years which isn’t bad of course

[@aic0809]

I completely agree with you. I never knew my neighbors until I bought my house almost 5 years ago. I really love feeling like I’m part of a community. I didn’t feel that way when I rented.

[@baldeagle4710]

i rented for years, never knew any of my neighbors. renting to meet people is a terrible idea as most people just stick to themselves

[@HurleyIsAStoner420]

@@baldeagle4710 so true ! I feel most people rent to just get away from everyone and be alone

[@HurleyIsAStoner420]

@@aic0809 yea I hear most people say that. I knew all my neighbors when I was a kid and lived with my mom also. All my neighbors owned their homes and were there for years

[@theeuropeanreporter]

Whats the name of the app that the girl mentions at 10:20, "Insans" ? Difficult to hear, and there's a white box on the screen with no info.. Thanks in advance :-)

[@grappler555]

Bought my first house at 26 in the midwest. Seems like if you live in the west coast and you didn’t have rich parents you’re gonna be grinding it out renting for a while.

[@damianvmendoza]

I bought my first house in Huntington Beach, CA for $65,000 - A simple older home 4bd 2 bath that needed a lot of upgrade work to make modern. Rented out 3 bedrooms to single guy friends for $125.00 per room. I preferred not having roommates but they allowed me to make the mortgage of $585.00. I encourage young people to purchase a home as soon as they can comfortably afford it. I bought too many homes over the years that put a big strain on finances and limited family vacations so I will not do that again.

[@Millennialmoney101]

$3400 for rent in Cali is not rich. That goes for almost every major US city. They’re most likely make a little over six figures to qualify. You should’ve toured the apartment complex with a leasing agent and asked for their qualifications

[@edgarn372]

Very informative vid. The renting vs buying question is something I finally have the privilege to ponder. Think I am ready to start visiting open houses in 2024.

[@dezlc6259]

I make about 150k a year and I REFUSE to pay $3k for rent. I drive a 19year old 350 Z and rent a room and am stacking my chips I live in California but I rent a room in the suburbs and work remote so my monthly nut is $3k a month. I’m saving so that went interest rates drop and prices come down, I’m able to put a higher down payment down for a cheaper monthly mortgage and that my friends is how you stabilize yourself. I’m curious to know how much credit card debt they have and if they have a savings. IT’S NOT ABOUT HOW MUCH YOU MAKE, IT’S ABOUT HOW MUCH YOU GET TO KEEP.

[@certifiedfinest5065]

Your $3k is before or after the room expense?

[@durandus676]

12:16 rental properties surprisingly with a good landlord have better protections for the residents than if you own your own home. There’s a slew of stupid ways other people can sell your house out from under you where lawsuits over it could cost you more than a new house.

[@abrahamburhanzai7163]

God damn JANICE!!!!!! Making me fall in love over here

[@soufwesthoustontx]

The second woman is not too old. She's only 33. There are successful KZbinrs way older than her lol. KZbin came out when her age range were teenagers. Millennials literally grew up with KZbin.

[@Everydayprojects365]

As of now renting and buying are about the same cost vs space and amenities wise.It’s almost always that way but buying will always be better if your planted and renting better when your mobile/unstable/indecisive.

[@Dallas3212]

Factsss!! I'm in the unstable phase but as soon as I get planted it's time to buy!

[@bowlingdj300]

Just found this channel, I'm an old guy but its never to late to brain storm, pretty cool, nice Job Charlie!

[@squirrel5001]

Great video! Humble and inspiring!

[@thisguyrools2807]

I’m making just 50k a year working at a country club. Have a college degree that doesn’t make me much. I honestly just want more money. Hanging around people who have money changed me. Before I was okay settling for an average life but times have changed and now I can’t even afford to own a house. At age 30 my parents bought their first home, by 40 they bought a second home and used the first as a rental to cover the mortgage on the new home. I also live in California 🙄

[@Daneiladams555]

These people are nuts for paying that kind of rent I pay 750 a month for my own cabin in California But this is rare

[@thegoldengatesound]

$200K-300K/here in San Francisco, same 1/1 apartment for over a decade and would never buy in the Bay. Over the decade I’ve purchased 2 brand new homes in Clovis (3 hours away in Central Valley) that I rent, for less than the cost of a home here in SF. Most people here in SF rent (+70%) yet many make decent $….it’s just too overpriced. LA’s also overpriced

[@newagain9964]

Also. I have to be concerned buying a place in BA if you will get a return in longterm future. For whatever socioeconomic reasons prices may drop(end of peak)