Rent vs. Buy: Which Makes More Sense In The Current Real Estate Market?

[@dylanmoris6211]

Asking a real estate agent whether you should buy a home right now is like to asking an alcoholic whether they think you should have a drink lol. Homes in my neighbourhood that cost around $450k in sales in 2019 are now going for $800 to $950k. Every seller in my neighbourhood is currently making a $350k profit. Simply unreal. In all honesty, deflation is what we require. The only other option is for many people to go bankrupt, which would also be bad for the economy. That is the only way to return to normal.

[@williamsbrown4026]

Home prices will come down eventually, but for now; its best to offset some of your real estate investments and get into the financial markets or gold. The new mortgage rates are crazy, add to that the recession and the fact that mortgage guidelines are getting more difficult. Home prices will need to fall by a minimum of 40% (more like 50%) before the market normalizes. If you are in cross roads or need sincere advise on the best moves to take now its best you seek an independent advisor who knows about the financial markets.

[@LionTowercoporation]

indeed the mkt & economy has gone berserk, price of great assets like real estate, dividend paying stocks, or gold never comes down easily, in my humble opinion, buy what you can afford today, and working with a financial advisor certainly helps

[@KelvinWallace]

@@LionTowercoporation I'd be glad to get the help of one, but just how can one spot a reputable one?

[@KelvinWallace]

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

[@ihmpall]

@RobertCooper03 Boomer do you also remember how much they costed when it was 18%?

[@WhatIsThis-zq4hk]

There is some bad advice here. She said monthly payment is all that matters. Uh... no. It's not. To choose rent vs buy, you need to compare the total unrecoverable costs. For owning, it will be mortgage interest, property taxes, maintenance, insurance, HOA fees, landscaping, etc. For renting it will mainly be the rent payment. You must also add opportunity cost of not investing that money in stocks and instead investing in your home equity.

[@WhiTExKnEEgroW]

Property taxes are typically tax deductible

[@Bulltrader1728]

If you rent a home, better believe you are still paying for the “unrecoverable cost” plus more…

[@WhatIsThis-zq4hk]

@@Bulltrader1728 Which is why renting an apartment is often more efficient because those costs are distributed over more people. If you compare the unrecoverable costs for an apartment vs a detached house, the math often favors renting even though american dogma makes everyone believe that renting is always worse than owning.

[@Bulltrader1728]

@@WhatIsThis-zq4hk agreed…

[@mhodge0890]

Exactly totally missed it. People need to go back Dave Ramsey method.

[@mikezerker6925]

My home has nearly doubled in value since I bought it in 2015 … I’ve been getting calls/texts/emails from realtors asking if I’m interested in selling it. The problem is that even if I sell, I won’t be able to afford another home with prices being so high.

[@chowsquid]

Hence everyone is locked in right now. Realtors will starve

[@karmasutra4774]

Yeah. I have that issue and and want to downsize .. but nothing is looking decent at a lower price point yet

[@DrTLEvans]

Same. 🤦🏽‍♀️

[@xftbllplyr2091]

Unless you are looking to sell in the near future, this is not good. Property taxes will continue to rise and still hurt you in the future.

[@ddavis8988]

Smart man

[@FrancesRyan-b2p]

Retirement for some people becomes their bondage in poverty because they failed to invest with the little they have on their active years of working, this is an error we need to start working on now, I’ll advise that while you still can work and earn also take some money aside and invest in your future after retirement so this classification won’t have to be yours

[@ArnulfoSzafran]

I started paying more attention to stock and learning more about online trades

[@AlmedaKandemir]

There’s no secret she hasn’t unlocked to me about trading my knowledge keeps growing everyday

[@JoeCloud-hy2uc]

To the newbies, you should also note that this data is worthless without an existing understanding of data analysis

[@JoeCloud-hy2uc]

The best journey I encountered on embarking on forex was getting to learn from the very best Shanita

[@SandraPatterson-di6xh]

Most time having knowledge or insight about a particular activity can as well be a pleasing exercise. I can boldly say that Stock and Forex trading is one of the profitable money exchange services that elevates investors and their financial status.

[@sentienthamster]

8:00 "You don't buy a house based on the price of the house, you buy it based on the monthly payment." Please do not listen to her, this is the dumbest thing you could ever do. This is one of the reasons why we are facing these fast paced price increases and how you end up in an upside-down mortgage. I don't even know how someone making that statement could ever make it into a serious story.

[@vmtl4659]

Thank you ! Not suprising all agents pushing the same crap

[@srrelaxationengineer6605]

same reaction when I heard this.

[@deemanDavid]

Pay based on monthly especially if you stay for 10 years as she said. In almost any period, more house makes more financial sense. Equity and tax breaks make a bigggggg impact on your wealth

[@vinnyrodrigues8339]

then she goes on and says that renting is throwing money out. Stay away from anyone who gives general advice like that. Each person has their own circumstances that needed to be taken into account.

[@Thatisapiceofshit]

I was scratching my head as well! She sounded like a car salesman.

[@Rochelletrem]

In spite of how everyone is frightened and calling the crash, there is already an excessive amount of demand waiting to absorb it, which is another reason it's less likely to happen that way. This forecast was not made in 2008, at least not by the general public, as I will explain below. The ownership rate peaked in 2004, according to the other comment. We reached a peak in the second quarter of 2020 and are currently at the median level. From 2008 to 2012, it fell by 3%, and in the second quarter of 2020, it dropped from 68 to 65.

[@berkrix4312]

Because they are used to bull markets, most people find it difficult to handle a decline, but if you know where to search and how to get around, you can make a sizable profit. It depends on how you plan to enter and leave.

[@jeffery_Automotive]

Given that we are not accustomed to such uncertain markets, the fact that the US stock market has been on its longest bull run ever makes the widespread anxiety and excitement comprehensible. There are opportunities if you know where to go, as you noted that it wasn't difficult for me to earn more than $780k in the previous 10 months. Since I was aware that I would need a reliable and strong plan to get through these tough times, I engaged a portfolio advisor.

[@EllenAbrex]

@@jeffery_Automotive 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.

[@jeffery_Automotive]

@@EllenAbrex It was run by Julie Anne Hoover, who I learned about and got in touch with thanks to a CNBC interview. Since then, it has served as the point of entry and departure for the games we have emphasized. A search on the internet can be done if tracking is necessary.

[@EllenAbrex]

@@jeffery_Automotive I just copied and pasted Julie’s whole name into my browser, and her website appeared right away. You've saved me several hours of arduous research, therefore I appreciate it.

[@Greggsberdard]

I don't see housing prices falling much until the supply is increased. In the USA we are short millions of housing units, and we aren't building nearly fast enough. People always need a place to live and we are constantly making new people. Any slight dip in prices unlocks a bunch of buyers who will gobble up that supply instantly. I want to buy inexpensive houses in 2024 and maybe invest in stocks. When's the best time to buy stocks? Some people say they make money, but others say it's risky. Any advice?

[@VictorBiggerstaff]

I think the retirement crisis will get even worse. A lot of people can’t save because of low paying jobs, inflation, and insane rental rates. And now that home ownership is out of reach for middle class Americans, they won’t have a house to retire with either.

[@crystalcassandra5597]

If you lack market knowledge, your best bet is to seek advice or support from a consultant or investing coach. Contacting a consultant may sound simple, but it's how I've managed to stay afloat in the market and increase my portfolio to roughly 65% since January. It is, in my opinion, the best way to get started in the industry right now.

[@HectorSnipes]

Where can I find this coach?

[@crystalcassandra5597]

'Rebecca Nassar Dunne' is the licensed advisor I use. Just search the name. You’d find necessary details to work with to set up an appointment.

[@lolitashaniel2342]

Thank you! I entered her full name into my browser, and her website came out on top. I filled her form and i hope she gets back to me soon.

[@leondonald]

For 2023, it’s hard to nail down specific predictions for the housing market is because it’s not yet clear how quickly or how much the Federal Reserve can bring down inflation and borrowing costs without tanking buyer demand for everything from homes to cars.

[@EllenAbrex]

I suggest you offset your real estate and get into stocks, A recession as bad it can be, provides good buying opportunities in the markets if you’re careful and it can also create volatility giving great short time buy and sell opportunities too. This is not financial advise but get buying, cash isn’t king at all in this time!

[@duane_29]

Given current recession pressures, it is unlikely that the stock will yield substantial returns in the near term. However, it may be a suitable investment opportunity. I will monitor market conditions and consider purchasing when there is an improvement in the relevant economic indicators, any idea which stocks this may be?

[@theresahv]

Thats true, I've been getting assisted by a FA for almost a year now, I started out with less than $200K and I'm just $19,000 short of half a million in profit.

[@DavidRiggs-dc7jk]

@@theresahv Thats quite Impressive! can you share more info?

[@theresahv]

@@DavidRiggs-dc7jk I have stayed away from all of the issues that the erratic market presents. Today, reading, research, patience, and seeking guidance when necessary are the greatest ways to break into the market. I merely copy ''Christine Jane Mclean'', a CFA, whose actions I witnessed on Bloomberg Business News because I am unable to handle my portfolio owing to the nature of my profession. Ever since, everything has been easy. I recommend researching her credentials further.

[@Riggsnic_co]

I suggest you offset your real estate and get into stocks, A recession as bad it can be, provides good buying opportunities in the markets if you’re careful and it can also create volatility giving great short time buy and sell opportunities too. This is not financial advise but get buying, cash isn’t king at all in this time!

[@hermanramos7092]

One strategy for protecting against a recession is to buy equities. Investors, especially during a recession, need to know where and how to put money in order to make money while avoiding inflation.

[@martingiavarini]

It has never been easier to understand how to build your money than it is right now, when you may study and experience a completely variegated market passively by employing a successful portfolio-advisor. The impacts of the U.S. dollar's gain or fall on investtments, in my opinion, are complex.

[@Oly_laura]

Working with a Financial Advisor to help guide you on your wealth-building journey if you're just starting out is a wonderful way to get started and thats how i was able to accrued good gains . They helps to manage investment overall risk profile , prevent permanent loss of capital consider maintaining a broad diversification of your investments that reflects your personal risk tolerance, time horizon, and the nature of your financial goal

[@hermanramos7092]

@@Oly_laura please who is the consultant that assist you with your investment and if you don't mind, how do I get in touch with them?

[@Oly_laura]

@@hermanramos7092 Big Credits to ''Catherine Morrison Evans'' she has a web presence, so you can simply search for, there are some others but it might be difficult to get them, but Catherine has been a good guide through the year.

[@willinton06]

“To buy or not to buy has never been an easy decision” literally wasn’t even a decision 40 years ago, everyone could afford to buy at least an ugly house

[@vertigosun9267]

Symptom of capitalism. The housing market shouldn’t be this way. Investors ruin demand and supply.

[@firefalcoln]

Interest rates 40 years ago were through the roof. Over 13%. The purchase cost was much lower. But so were the median wages back then. You really have to go back closer to 50 to 70 years ago to find a time when housing was pretty plentiful and affordable. And of course at that time there was a lot of racist zoning and credit policies which negatively effected women and people of color. So the good old days for purchasing homes was only really for white men, or married white women about 50-70 years ago. To be fair, it could be argued that it was a bit easier in the 80s to early 2000s than it has been over the last few months to get an affordable home. And 2010 to early 2022 wasn’t a bad time to buy a house for a lot of people if one had enough money for a down payment and picked the right house. A lot of people buy 3 bedroom 2 bath homes or a smaller home on tiny lots. Those are often terrible homes for an investment compare to a house hack duplex or triplex with a few 2/3 beds and 1 baths or a less updated 4 or 5 bed and 2 bath house single family house for 15% more than a nice 3 bed/2 bath or 3 bed/3 bath single family house. A lot of people also are too prideful and scared to pick a property to own and use for supplemental income by renting out some of the extra rooms or yard. It’s a great financial strategy to be a landlord for part of your first property. And it’s much simpler than a lot of people expect it to be if one takes the right steps. It’s also smart to add an ADU to a property or at least buy somewhere where that’s a future possibility. But that requires buying somewhere where there is space and expected demand to make the ADU worthwhile.

[@biner01]

​@@firefalcoln the data is already in. you can google the stats.

[@markg-jw2hx]

It still isn't. But, landlording has become so profitable that finance people on youtube and media tries to make renting seem normal and justify that it is "cheaper than mortgage". When you're paying mortgage, you're building equity but when you're renting you're just giving money away. It's the comparison between putting money in the bank and spending it at the bar.

[@nucleardog6675]

In 2008 everyone could have a house even unemployed.

[@mavricxx]

I remember buying my first home, it seemed impossible and very scary how expensive it is. My recommendation from my personal experience...DO NOT buy more than can currently afford even if you're scheduled to get a raise. Bteer to be below your means than to struggle later on and possibly lose your home. Also, don't confuse the down payment with the closing costs. They are 2 separate and totally different things. So you must save for the down payment & closing costs. Do your research to find out what the estimated closing costs will be and don't assume seller will cover closing costs. Next, also save for the inspections needed and DO NOT SKIMP on inspections! This is critical, if you find anything wrong, you can deal your way to lower the cost of the home. Another thing when financing, get a fixed interest rate. DO NOT get a variable rate even if seems like a great deal. Variable rates a one way ticket to losing your home. Those are my most important ones.

[@vincentgomez5435]

Thank you for this information I'm working hard and saving up to get a home it's very nerve-racking I live in Brooklyn very expensive out here I want to move somewhere in the south 🙏🙏🙏🙏

[@mikezerker6925]

Variable rates were one of the major issues that caused the crash in 2008

[@TristenHernandez]

This is the best advice

[@onejhead]

I’m a REALTOR in Atlanta and I absolutely agree with everything you said.

[@salutemimi81]

Thankyou I don't know what I'm doing To scared to ask for help Don't know who to ask or where to go for help I have nothing

[@chiquetashields9022]

We are renting right now but are currently under contract for a home. My father-in-law lives with us. Although he will be contributing to the mortgage, we did not factor his contribution into our budget for buying a home. You should definitely not depend on income from an elderly parent. They’re not going to live forever. My hope is that the first couple can put away a lot of savings while they are getting the financial contribution from the mother.

[@PardonMyPresence]

2 words: Life insurance

[@luisarturohernandezramirez5910]

That calculation literally counts someone else paying $1000 a month for you. They're lucky to have a mother that can pay that. And they as a family had the luck to do that. Literally almost no one has that same luck

[@KylePapili]

Yes, I agree that slide about comparing rent vs buy in their scenario was definitely not an apples to apples comparison.

[@specimendaze]

How about home repairs?

[@Pe6ek]

You are using the word literally incorrectly.

[@ericcartmansh]

i think in this case it works since if they are renting they wont have another room to "sublet" to their relative

[@PG-tc6os]

actually it is a bad move because your livelihood cant depend in somebody else rent.

[@Der8cho]

Owned my home outright for years now. No way would I pay these ridiculous house prices. I feel like a bystander during these tough economic times. Good luck, everyone.

[@TK-gd9td]

@Dot Com well a young man’s game is usually diff from an old man’s. The young exchange their time for money and old usually exchange their money for more time.

[@jameslocklear5298]

You can pay mortgage for corporations living in a rent or be a homeless. You are already part of the great reset You will own nothing and you will be happy by 2030.

[@geovannyl.2801]

@Dot Com you probably won’t even reach his age so, good luck to you my friend. 😊

[@SirenOffspring]

You would pay it if you had nowhere else to go😞

[@jeffmeredith9094]

​@Dot Com I'm 40 and mortgage free and have plenty of time

[@YaYousef5]

8:25 "Renting a house is really just throwing money out." - And when you get a mortgage with a 7% interest rate, all the money is going to a bank for the privilege of "owning" a home, wouldn't that be the same as throwing money out? 7% on a $300,000 home over 30 years = $418,527 in interest you're paying to a bank. You're paying more in interest than the value of the home. It doesn't matter if your home appreciates in value by 3-4% every year (which is the national average) because after inflation, paying interest on the mortgage, maintenance, property taxes, homeowners insurance and more, you're obviously losing a ton of value in the home.

[@BookofFuture]

Interest rates fluctuate. They could go down in the future and allow people to refinance. Millions of people have mortgage interest rates below 3-4%. Also home mortgages allow owners the margin their gains through equity.

[@melc900]

The comparison is between renting and owning. If you're renting, your rent will go up in line with the landlord's mortgage going up, in a lot of cases. So in the end your rent is still going to be affected by mortgage rates. And rents are often more expensive than mortgages for the same area. You're throwing money out because you're spending it on something you aren't putting equity into. If you pay 1000s on your rent you move out and you're left with nothing. If you pay the same amount on a mortgage you have the house at the end of it. Generally, you're losing more on rent than a mortgage, and that's partly in exchange for the conveniences of being able to move quickly without the legal faffery and not having to pay for repairs.

[@YaYousef5]

@@melc900 You're throwing money out when you pay interest on a mortgage to a bank because it doesn't build equity.

[@sobreinquisidor]

You can tax deduct the interest on your mortgage up to 700K

[@cyropox8235]

​@@sobreinquisidora vast majority of home owners take a standard deduction anyway. That law is only beneficial for contractors and landlords. A W2 employee who lives in the home that they own would very rarely get to take a deduction on their mortgage interest

[@Dreamluu]

The real question to ask is, “why do we allow the cost of living to fluctuate so much city to city to the point that locals must move to cheaper areas to find a home.” There will come a time where a large group of us will be priced out permanently. What will we do then?

[@CharlieZColt]

Move to Cleveland

[@johnj8069]

What do you mean allow? It's a free country and supply and demand dictate the cost. This is the same everywhere in the free world.

[@datnohi8612]

Sorry to say this but tent city, rv or car living 😢 or move in with relatives, 😔 I don't know about anyone else but I can hardly take my relatives 5 hours on holidays so I guess tent city here I come

[@FelixBibian]

i live in Long Beach CA and i kid you not the housing market is ASS. Council members keep building “affordable” housing that costs $2k just to rent, and nobody can afford it. So people either go homeless or move somewhere far and while doing so, the city is quickly being gentrified.

[@dwadedunkedkobe]

Tbf if you're priced out, that's your own damn fault. Finish up high school and get a degree, losers.

[@jsm2687]

Buying a house is easy. Paying for it is the hard part.

[@treesnmoguls]

There's another saying: Buying a house is like going to jail; easy to get in, very difficult to get out, LOL!

[@God1293]

😂

[@ericsgotlegs]

Some people dont have a family to share the payments and renting out space to strangers is not ideal in my case. The cost of owning a car plays a big part in where you decide to live as well.

[@asecmimosas4536]

I'm so curious how he went from 5k, which is enough for a downpayment on a 20k dollar home (doesn't exist), losing that 5k, getting a lower paying job, and his wife being demoted, to paying a ~57k dollar downpayment on a house. I don't know if he bought bitcoin or what but there's a step that I missed in the video.

[@eriakinbode7533]

You don't need to put down 20% on a home. The minimum down payment is about 3.5%. So on a $285k home that's about $10k. Seeing as his mother is also contributing to the monthly costs, she probably helped out with this as well.

[@MeekMeek1212]

Right! I am confused!

[@jeffmeredith9094]

​@@eriakinbode7533 first time home buyers need less.... I put down 2350.oo on my house

[@treesnmoguls]

Seems like they are financially "thin" such that a job loss could create a financial mess or forclosure...

[@gigan1972]

They are paying mortgage insurance. So they probably took advantage of one of ohios first time buyers programs

[@NormanGhali]

We might be more concerned about paying off our mortgage if it were larger (or if our jobs weren't as secure), but right now, investing offers a better return. Bloomberg and other finance media have been documenting stories of people making over $250k in a couple months.

[@AddilynTuffin]

Invest if you actually want to be wealthy. However, you should get guidance from a financial advisor if you want to create a successful long-term plan….

[@judynewsom1902]

You're wasting valuable time when you're trying to clear your mortgage. I'm not the only one who realizes this,I started investing sometime in 2018 and by late 2019, I pulled a profit of over $850K, I was basically just following the guidelines set by the financial advisor I use

[@albacus2400BC]

Please who is the FA that assist you with your investment and if you don't mind, how do I get in touch with them?

[@judynewsom1902]

My advisor is *Sharon Louise Count * She is easily searchable on the web and has extensive knowledge of the financial markets.

[@AgueroBankz]

I appreciate your tip so much! Finding your FA was simple because I simply Googled her name. Her resume makes it quite evident that she is extremely intelligent and experienced, and I'm thrilled to get the opportunity to speak with her.

[@TS-pc1vx]

Purchased December 2019 at 2.8%. I was 25 at the time. Truly my best decision.

[@AZ-ev3vp]

Same 2020 December 2.85%

[@wja6176]

Do you need a medal? 😂

[@justliss1827]

I purchased in 2021. My rate is 2.875%. Cost of house was reasonable.

[@dcg590]

@@wja6176you obviously don’t have a pot to p$ss in.

[@dcg590]

Refinanced May 2021 15 year 1.8%!

[@andrew.alonzo]

I'm 58 years old living in California, I'm hoping to retire at 60 if things keep going well for me. Bought my third house last month and I can't be more proud that am i now. I'm glad I made great decision about my finances that changed me forever but now I can't seem to make any other smart investment.

[@Believer292]

The first step to successful investing is figuring out your goals and risk tolerance either on your own or with the help of a financial professional but is very advisable you make use of a professional like I did. If you get the facts about saving and investing and follow through with an intelligent plan, you should be able to gain financial security over the years and enjoy the benefits of managing your money.

[@hunter-bourke21]

@@Believer292 True, the idea of a portfolio-coach used to sound generic, but a new study by investopedia actually found that demand for portfolio-coaches sky-rocketed by over 41.8% since the pandemic and based on firsthand encounters, I can say for certain their skillsets are topnotch, I have raised over $900k from an initially stagnant reserve of $250K all within 14months.

[@james.atkins88]

@@hunter-bourke21I have been thinking about how to grow my reserve by atleast 40% or more within months. I will be grateful if you can give tips or anything on how to make good market picks and how I can get my portfolio diversified and balanced in order to meet up my target.

[@hunter-bourke21]

@@james.atkins88You might have heard this before but it’s imperative that I mention it. Starting out with a with a professional that knows the ropes of the choppy but profitable market is the best way to achieve getting a well structured portfolio. That's why I have been working with “Julia Ann Finnicum” and that doesn't make me daft because in financial dealings one have to be prudent. Most traders enter exit with a quick 10% profit which is not bad in a general opinion but why not aim bigger.

[@rebecca_burns14]

@@hunter-bourke21Thank you for saving me hours of back and forth investigation into the markets. I simply copied and pasted Julia's full name into my browser, and her website came up.

[@mumj9]

Flipping houses should be illegal. Or atleast anything over 1 house per 4-5 years. This is a factor in why housing is unaffordable.

[@joewolfmedia]

It's about making more money by investing and then profiting on that purchase

[@___beyondhorizon4664]

Recent years, China restricted the number of homes the rich can buy, then they bought it under the kid's name. The middle class could not afford any real estate.

[@melc900]

In some cases, house flipping takes a house that would otherwise not be usable and makes it livable, thus helping increase housing stock supply which in turn reduces demand and therefore prices, but it depends on the state of the house originally.

[@mjrodriguez2025]

It should be fine for someone with extra wealth to invest in real estate. But corporations and foreign entities (not foreigners) should be restricted from doing so.

[@PJVist]

I agreed!

[@meiguopiwang]

This video needs to take into account more factors for comparing buying vs. selling. Opportunity costs, home insurance, average yearly repairs and maintenance for owning a home, additional utilities, etc. Don’t take their simple calculation seriously. It’s very flawed. I’m sure the $700 per month they’re “saving” will be gone with a big repair. What about if the grandmother can’t pay rent any longer? Need to be able to afford a house in a worst case scenario otherwise you’ll be house poor and create unneeded stress.

[@papa_dawg]

I want to give a bit of personal perspective in renting vs buying: I had to buy in 2021 as the $750 duplex we were renting became unsafe. The duplex were ~750 sqft. Because of the low rent, we were very fortunate to save quite a bit of money. The buying was quite expensive at first: inspection fee, down payment, closing cost, moving cost (moving 45 min away, I hate having stuffs so we only needed 2 truck trips). To be honest, buying became a lot cheaper in the long run as we were looking at renting options and most would cost >$900/month for less than 500 sqft and still safety would be an ongoing issue. To give more details about the cost of owning a home: we mostly spent on furnishing for having guests purpose and buying plants to improve our yard, which is unnecessary. Our HOA fortunately has been cheap, $750 annually. The only necessary expenses for the house in the last 2 year were having new dish washer ~$800, new stove ~$1100, new dryer tube ~ $10, and new toilet pump ~$15. If putting my necessary cost versus the $700/month saving in the video, the buying can give the person >$14k if they choose to save it. The home immediate improvement, I know of, that are expensive are hvac ~5k-12k and roof ~$9k-15k. The Hvac last 10-20 years which make the annual cost to be roughly ~$500-$600. The roof last 25-50 years which make the annual cost to be ~$300-$400. The cost of an hvac and roof can be transferred if you are in a buying market: meaning the seller needs to cater as there are not as not many home buyers, you can ask the home seller to fix the hvac and roof before you move in or cover your closing cost to compensate. Personally I think owning a home means a person needs to be more financially responsible and keeps a minimum of $10k in emergency fund. Owning a home has been economically cheaper to me but I totally understand that it comes with stress of responsibilities. PS: the additional utilities that I have are HOA ~$62/month, ADT $65/month, and water ~$50/month minus trash and pet fees; I did have to pay electricity, heat, and internet when I was renting. I don't have cable.

[@meiguopiwang]

@@papa_dawg It highly dependent on each person’s situation and where they live. Sounds like it made sense for you. I live in Taiwan, and I would have to double my rent to pay for a mortgage not including anything else in an environment where speculation has Steven up apartment prices well beyond what anyone can afford. The Taiwanese market is different compared to the US market though. Either way, most younger people can’t buy apartments here and rely on parents to put down the 20% required to buy a house. Doesn’t make sense for me to buy at this point.

[@nicoeggink7956]

If you save $700 a month, you could set that money aside for one or two years to create a buffer for repairs. And with any luck, your mortgage payments won’t go up, but rent usually does.

[@always_be_eri]

100% agree with you! If someone else’s income makes buying a house affordable for you, you can’t afford the house and you’re an unfortunate event away from trouble. I hope everything works out for them though.

[@Jansheff2010]

exactly, I didn't learn a thing

[@gingerkilkus]

Great video! For 2023, it’s hard to nail down specific predictions for the housing market is because it’s not yet clear how quickly or how much the Federal Reserve can bring down inflation and borrowing costs without tanking buyer demand for everything from homes to cars.

[@fadhshf]

I suggest you offset your real estate and get into stocks, A recession as bad it can be, provides good buying opportunities in the markets if you’re careful and it can also create volatility giving great short time buy and sell opportunities too. This is not financial advise but get buying, cash isn’t king at all in this time!

[@lowcostfresh2266]

You are right! I’ve already diversified my 250K portfolio across various market with the aid of an investment coach, I have been able to generate a little bit above $530k in net profit across high dividend yield stocks, ETF and bonds.

[@TomD226]

@@lowcostfresh2266 Do you mind sharing info on the adviser who assisted you?

[@lowcostfresh2266]

@@TomD226 I receive guidance from coach Laurel Dell Sroufe, who possesses extensive financial market experience. While others may prefer different approaches, her strategy has proven successful for me, as evidenced by my results. Specifically, she offers valuable insight on entry and exit points for the securities that I concentrate on.

[@hasede-lg9hj]

@@TomD226 Found her, I wrote her an email and scheduled a call, hopefully she responds, I plan to start 2023 on a woodnote financially.

[@yassine5673]

The culture of leaving your parent's house when you're 18 needs to stop. Let your kids stay home until they're financially stable, that's on average at the age of 24. That way, you as a parent can have them pay part of the rent/utilities and eventually cosign a house for them so they can start paying towards a home they'll eventually own. The sheer amount of broke young adults throwing their money away on rent simply because they want to be "independent" is mind boggling. There's no shame in living with your parents, don't listen to whoever tells you otherwise.

[@owalker7307]

E X A C T L Y C O R R E C T S A Y I T L O U D E R F O R T H E P E O P L E I N T H E B A C K

[@paxundpeace9970]

It shouldn't be as stiff as you describe even opportunities open up sometimes you need to take them. You have to leave a city for a job, college or university. Try to share a home in those early places.

[@blk1735]

I totally agree! But one of the problems is that young people don't WANT to live with their parents. My daughters couldn't wait to move out. Nothing sinister was going on in our home, they just wanted their "freedom."

[@MrHammer2088]

Pay part of the rent and utilities!? They don't even wanna do that - the resentment of living with their parents have them feeling like if they contribute then it will take away from their savings towards moving out quicker

[@vishnusarda2319]

I'm from India and it's shocking for me to know that you guys leave your parents home just because you can show you are independent.

[@1984watchr]

I think the problem you are faced with is skyrocketing rent prices. Most people don't have the down payment for the house and the market is competitive. Sadly, if you go rent a one bedroom, they will bump it up to what a two bedroom would have cost the next time you renew your lease, so unless you are saving for a house down payment, you get stuck in a rental inflation spiral. My house costs are exorbitant now, especially since after spending all of my savings to buy, I then had to replace the HVAC, however I would choose this (a four bedroom, three bathroom, 2600 sq foot house with an inground pool in the back and a barn over the same price monthly for a two bedroom apartment in a much less desirable area.

[@sravan564]

True..i rented a 3-bed room for $2120 and for the month to month renewal they’re asking $20,200 and im in the plans to move to my new home in after a month and for a 3 month term they’re asking $7700 per month. How could they even impose that incomparable renewal offers is what so confusing

[@BilalA-o2m]

I'm glad I bought my house in October 2020, Locked in 2.75% rate! My wife had a big role into this decision! Best thing I've done in years.

[@United-States-of-Africa]

Of course she gets half when yall part ways

[@ibojofamily8472]

​@@United-States-of-Africa y'all sound bitter atp

[@khansaif55421]

Same here Brother I bought my house in 2018 with 2.89% and My wife played the big role as well.

[@laraantipova389]

@@United-States-of-Africa or you could say he gets 1/2 of her house no idea why some men assume everything belongs to them 100%. I hope no woman is subjected to your nonsense

[@United-States-of-Africa]

@Lara Antipova lmao guy said it's his house and wife played a role. So it's his asset.

[@Kurplode]

8:01-8:06 “you don’t buy a house based on the price of the house, you buy it based on the monthly payment”. That’s such terrible advice and a good way to get people to throw all of their equity away in interest payments.

[@huaqingzhu5928]

Same strategy that dealers use to fool car buyers. These greedy people try to brainwash others all the time

[@Thatisapiceofshit]

That's what a car salesman would say!

[@laela2000]

This is the second time I’ve seen this comment. I’m really curious why is that bad advice?

[@Kurplode]

@@laela2000 because if you focus on the payment, you won’t realize how much money is thrown away in interest. If my budget was $1500 a month and someone let me buy a $1,000,000 house over 60 years at 6% just to get the monthly payment to $1500, I would be paying nearly $3,000,000 at the end of those terms and not realize it because I was focused on just getting a $1500 monthly payment. It’s what causes people to be house poor.

[@Kurplode]

@@laela2000 also, use an amortization calculator to see how much interest you’re paying over the terms you agreed to. If you did a 30 year conventional loan (the most common), go to bank rate and put in how much you borrowed, the number of years the loan is for, and the interest rate and see how much after the 30 years you paid for that house. If you can, put however much you can extra each month on it to save on interest. Even an extra 100 a month saves thousands upon thousands in interest.

[@nearby222]

When it's easier for people outside the country to buy houses than people inside the country you might have messed up.

[@skyak4493]

When people come from around the world to buy, you should take the clue that you have it SOOOOO much easier than most of the planet! Stop complaining and get to work like the immigrants do!

[@inthevault9603]

It shouldn’t be allowed and big corporations too.

[@thunderb00m]

Yeah, this is bad. I dont know why its being highlighted as good. They are using wealth they generated outside the US and putting it into the US real estate market which just inflates the market for everyone. I am a capitalist but everyone would be so much more productive if they had a good home and good healthcare and having such high prices is just inefficient.

[@Wanderer25]

​@@inthevault9603 It's free market capitalism. Maybe the locals should stop electing politicians who don't operate in their best interests.

[@Tential1]

It's not easier for people outside.... It's easier for the extremely rich, which I mean, wow.... The sky is blue. Also lol, this only works for America. If you use this logic with any other country you sound stupid as f. Imagine a person in Poland saying that. Also, anyone can afford a home in America. You just don't want to live in those states.

[@melowely]

Buy when it makes sense for you. If you are at a point in your life where you need a home, plan to stay there for awhile (or can if you have to), can comfortably make the payments, have job stability, and have a cushion in the bank, then buy. Don’t try to time the market. If it’s a question of, do I really want to be responsible for repairs, am I ready for that, do I want to commit to staying in place, do I like more flexibility, etc, then renting might make more sense for you. Nothing inherently wrong with renting. There’s a lot of nuance.

[@justina_Earley]

I’m closing in on my retirement and I’d like to move from Minnesota to a warmer climate, but the prices on homes are stupidly ridiculous and Mortgage prices has been skyrocketing on a roll(currently over 7%) do I just invest my spare cash into stock and wait for a housing crash or should I go ahead to buy a home anyways.

[@Linda_Addams]

Indeed, the recent market downturn serves as evidence that a vast majority of individuals lacked a sufficient understanding of the underlying financial dynamics at play.

[@Andrewgarrels]

@@Linda_Addams Such market uncertainties are the reason why I don't base my market judgments and decisions on hearsay and rumors, I got the best of myself in 2020 and it made me hold a worthless position in the market, I had to revamp my entire portfolio with the help of an advisor, before i started to see significant results in my portfolio, i have been using the same advisor and i have climbed $850k in 2 years, either a bull or bear market, both make good profits, it all depends on where you are looking

[@taylorcoggan2054]

@@Andrewgarrels True, we’re only just an information away from amassing wealth, I know alot of folks that made fortunes from the Dotcom crash as well as the 08’ crash and I’ve been looking into similar opportunities in this present market, could this coach that guides you help?

[@Andrewgarrels]

@@taylorcoggan2054 Do your due diligence and opt for one that has tactics to help your portfolio continue consistent and steady growth. "LISA ELLEN SHAW" is accountable for the success of my portfolio, and I believe she has the qualifications and expertise to accomplish your objectives.

[@aubreymcgovern9467]

@@Andrewgarrels I just Googled her name and her website came up right away. It looks interesting so far. I'm going to book a call with her and let you know how it goes. Thanks

[@yannip2083]

This is not just happening in the U.S. but it is also happening globally. I know many Americans have moved across the border to Mexico, South America and some even moved to Thailand, Vietnam, Cambodia, etc. for much lower cost of living, including cheaper rent.

[@BossRoss045]

Most people don't take into consideration the True Cost of Ownership. Maintenance Cost must be apart of your monthly budget.

[@noelvinpaulino1290]

There is no debate wether having a home is better than renting ,buying a home is better,what’s yours is yours ,but is always a good idea to look for an adequate time to buy a home ,for instance now it’s not the time with interest rates at these levels ,renting is a better alternative until you can make that per purchase of you own home

[@10-OSwords]

I've heard if you can rent for significantly less than a mortgage & invest the difference with a good yield it's a better option because you don't pay any maintenance & you can use the investment toward retirement or getting a home later...but rents are crazy now as well so I don't even know if that works anymore.

[@rack9458]

How many renters have millions in savings?

[@mizkarib]

Was doing that till I had health issues which resulted in surgery, now currently paying medical bills. 😮‍💨

[@mhodge0890]

A good amount actually

[@rack9458]

@@mhodge0890 how many?

[@YaYousef5]

This is what I do. I refuse to get into debt to get a home, especially when interest rates are 7%. I rent and have been investing via mutual funds for the last 10 years.

[@oco987]

I am really happy for this guy and his family. Such a wonderful thing to see

[@albear972]

If you can, buying is 100% the way to go. We are ultra-cheap. we live well beneath our means. Heck, we still have our totally functioning 2002 and 2004 cars. We bought the house in 2009 and due to being super-cheap the 30 year mortgage was paid off in 9.5 years in L.A. Rent at the old apartment was $1,600 a month in 2009, now looking again, in the same building it goes for $2,900 a month! House has doubled in price and property tax is the major housing cost. Anyone can buy a house if they live within their means.

[@Gumbier_Than]

I don't have any home repair skills, I have a destructive special needs child, I need to be in the city to maintain status at the special school, I need more space as that child is in the 99 percentile for growth.

[@janityy]

I'm crippled and I don't have 15,000 for a roof when needed etc etc and s0me people paying 12,000 a year on property taxes . why would someone buy a 400,000 dollar home get a 30 year mortgage the up paying 1 .million please come on

[@albear972]

@@janityy Sorry for your situation. Well. Thank doG we don't live in states with supposed no sales taxes as our property bill is only half what you mentioned.

[@instinctively_awesome8283]

The financial system has been artificially pumped for over a decade to ensure big pockets were lined; and now those same hands will make a fortune in the largest transfer of wealth in human history by shorting it on the way down. Inflation does have a roll, but that's to keep everyone panicked, and focused on their bills and expenses, rather than focus on the capital crimes of politicians and corporations,I'm still at a crossroads deciding if to liquidate my $338k stock portfolio, what’s the best way to take advantage of this bear market??

[@Robertgriffinne]

Find stocks with yields that exceed the market and stocks that, at the very least, follow the long-term market trend. However, you should get guidance from a financial advisor if you want to create a successful long-term plan...

[@Alejandracamacho357]

We must consider safer investments with promising returns in order to plan for the future. If you approach investing with a five-year perspective and simply DCA whenever you receive a check. Under the direction of my investment advisor, "DEBORAH JEAN DYKSTRA", whose expertise in portfolio diversification is unsurpassed and client-focused, my portfolio has gained almost $643k since January 2022.

[@instinctively_awesome8283]

@@Alejandracamacho357 Hello, please i'm in dire need of an F/A, how do i find the lady you just mentioned?

[@tradekings5433]

@@Alejandracamacho357 thanks for sharing, i found her on the web

[@ScottsFinancialThoughts]

Depending how old you are I would stay invested. 338k is not going to cut it for retirement. Look to see how much you will need monthly when you retire. Multiple it by the rule of 200. That’s what you will need. You can also count SSI and any other benefits to your number.

[@hermanrogers1325]

Buying has always made good sense if you buy according to your income and unemployment insurance that’s what I did on a 20 year mortgage loan from 99 to 19 best thing I could have even done here in 23 I am debt free for the past 4 years

[@pteranodon6612]

In Los Angeles, renting is much cheaper than owning. There are studio apartments renting for about $2K a month. To buy something similar, you would be paying at least $3.5K a month.

[@noahpassmore6452]

Correct, but 10 years later your mortage is 3.5 an your rent is 4k

[@paxundpeace9970]

That's now because of higher rates. With lower rates the gap would close. Still a difference remains.

[@austinduke8876]

It only makes sense if you think rent prices won't increase YoY. That's a bold bet but one you're free to make.

[@inthevault9603]

I own and every time I think of selling that’s one thing I consider… rising rents.

[@DAWN001]

House is both a consumption and a hedge against inflation. As long as it’s not bought at the highest point of a bubble, and not above the recommended loan to income ratio, it’s a good purchase to provide stability for one’s family.

[@KP-hi1om]

That is a man that cares about his family. I wish him and his family well.

[@denx2225]

He should have married a black woman

[@InvestingwithBishop]

@@denx2225 why such a rude comment? Smh man

[@denx2225]

@@InvestingwithBishop I don't trust white women

[@apoch4092]

Knew someone would have overlooked that a brother was getting recognized for taking care of his family period, regardless of what race his spouse was. Considering the reputation of the black man, that's a major plus on national TV especially from East Cleveland.

[@Shadow-7773]

@@denx2225 So you had to be the "Excerebrose' on this thread?

[@Helloreality101]

Good job pulling that off for your family! It can be hard bro, I just closed on our house in August 2022, thankfully just before interest rates went way up. It isn't easy but it's SO MUCH BETTER than renting!!

[@CircumstancesNeverMatter]

Hell yes it’s sooooo much better than renting! I don’t even care about no stinking repairs as long as I don’t have to worry about no damn landlord getting on my nerves! 😂

[@vishnusarda2319]

The beautiful thing about this video is that family it's like dream come true for them for having their own home.

[@jeovannylopeztoribio4299]

Imagine being 70 or 80 and having to worry about rent.

[@saagisharon8595]

Why do you think the US has the lowest life expectancy among western countries? It's almost as if it's been designed that the masses don't live long enough to worry about rent when they're too elderly

[@michellemarie1197]

Exactly who wants to be 70 or 80 years old and struggling to rent?

[@vicepresidentmikepence889]

Imagine being 70 or 80 and having to pay property taxes and insurance

[@GameFuMaster]

@@vicepresidentmikepence889 still going to be much cheaper than rent. Even if we lowball it to $300 a week, that's still 15,600 a year. Don't know what combination of property tax and insurance is going to be equal or more than that, unless you live in a really rich house.

[@thebastardgift]

Elderly people paying rent on a fixed income or unable to work married with rent increases is a cocktail to homelessness. If they own their property they have that wonderful blessing called equity. ♥♥♥

[@thatonekid71]

Imagine people back then, maybe 40 years ago could afford a home working at a single job at market now they have to work 3 jobs just to afford rent.

[@fallenkeith5885]

My rent is up 70% in the last 3 years and even with property taxes+mortgage, it would literally be cheaper just to buy. I doubt my rent will ever drop either

[@hirokeo]

Moving is always an option, that's one of the perks of renting.... easier to move.

[@treesnmoguls]

Don't forget maintenance costs! A rule of thumb is 1% of value per year...

[@tonilott8862]

Renting is only going up and I would rather pay my own mortgage than someone else’s.

[@treesnmoguls]

@@tonilott8862 Great, but make sure you are planning to stay put at least 10 years. Remember that until the property has appreciated ~10%, you LOSE MONEY if you need to sell (you would have to pay at the closing table)!

[@hirokeo]

@@tonilott8862 You could rent and invest and make more money overall but I understand that some people can't fathom paying for someone else mortgages but they are okay with paying for everything else in life that will benefit other people....

[@bilalalsaify2984]

Renting is better only if you don’t have the down payment! Renting is burning cash, buying your home is building wealth Buying a house, right size, right town, in the right neighborhood always better all day long! I bought my house in October 2020 - in suburb here in CT with great school system. locked 3.0% mortgage rate Best thing I’ve done in 20 yrs

[@managingmonasmoula9811]

Purchased my home in November 2015. I’m so glad I purchased then vs. now. Best investment I ever made.

[@XueLin-pe9fg]

Beautiful choice! Congratulations.

[@marlenaaj]

Business and profit-wise, does this mean that investing into Real-Estate at this time is a good idea? Secondly, would it be more profitable to go into real-estates or stocks at this time. I have been thinking about putting my money to better use because of how things have been lately and these 2 seem like good options. Also, a less time-intensive option would really be nice.

[@thesportsguruu]

Why not both? With the present economy, you should never forget to diversify. Do not put all your eggs in one basket. As a personal example I made my first 6 digits(in profit) from stocks earlier this year (got the aid of a professional as I also have time restraints). I also experiment with a couple of other things. Hard to imagine that I had initially refused to try out new possibilities. Good luck.

[@the_jean_mum]

Sounds like you’re starting out in your path to financial wealth. If so, the usual recommendation is to save 3-6 months of cash, pay off all high credit card debt, invest in your company’s 401k if they’re offering a match. If you have more money left over, only then start investing in index funds. It’s easy and less upfront costs and risk. If you want to diversify after, then get into real estate.

[@Mrcarlson_E]

...Very sound and realistic. I too have been into both for sometime now and though I won't say I have lost a fortune, I have squandered quite a lot... You mentioned using pros, if its not a problem. do you mind telling who you used or recommending a good one? I could definitely use the help of one right now... I look forward to you replying...

[@thehunter9853]

stocks are your best bet atm, its cheaper to get in and more predictable imo

[@thesportsguruu]

@@Mrcarlson_E I'm not really sure I'm permitted to go into details here, but mine is Adam Abraham Keith, and you could look him up yourself.

[@lyianx]

They skipped over another key reason housing prices are so high right now. Big companies like Zillow buy up houses then sit on them to keep the inventory LOW, so the ones they DO put up for sale, remain highly priced. They manipulate the supply to keep demand up, so they can charge more. In reality, there are a LOT of empty homes out there, they just wont sell them all at once.

[@HeronPoint2021]

HUD actually created the problem, too, by underwriting hundreds of millions in home purchases for numbered companies controlled/owned by friends in politics in the credit crunch. With money at almost zero, these corps. could afford to sit on the houses and not even rent them out. inotherwords, HUD made the problem WORSE that they were supposed to be there to help with. !!!

[@Tential1]

Sounds like we're at the top. When you see stories like this of people getting a home, when rates are this high, after dropping 20k a year in salary things are gonna get worse.

[@jedimindgames]

Either way I'm screwed. Can't afford rent on my own or afford a mortgage at these intrest rates and sale prices. Forced to moved back in with my parents when my lease expires in a few months. It's a bad situation all around for the economy.

[@hpikamengu3040]

Add property tax, home insurance, higher utility/water bills, possible HOA fees, up keeping the house, and also that escrow would be incorrect to add since it takes a long to start building escrow into the house so for some new homebuyer it shouldn’t be added…. I have known people who didn’t add these and ended up losing their house.

[@donnaallgaier-lamberti3933]

I suspect it is more about the "ability" to buy a home. Having the downpayment and being able to keep up with the maintenance usually determines the options. In my area rents run from $1,200-$2,400 per month. Unless the home needs a tremendous amount of work it probably a better option in the long run to buy because you are creating an asset. My condo rent runs $899.00 and my HOA fee is $295.00. I have a 2.5 % 15 year mortgage. The condo next door to me rents for $2,700 a month. A condo is the best place for my 77-year-old husband and I (age 72) at this age as he has mobility and cognitive issues and even working together we can no long manage lawn mowing, leaf removal, snow removal etc.

[@quanyenwashere]

This was my thinking when I bought my home 2 months ago. My rent was $1400 my mortgage is $200 more but at least I’m paying towards my own asset instead of someone else’s. My interest rate is through the roof but it still beats giving my money away to rent someone else’s home imo.

[@XueLin-pe9fg]

I hope you have a better life

[@yousseph777]

Questions i consider are: how secure is my/our income? - can the city/area provide other opportunities (particularly if there is a loss of income)? Overall, I feel my mobility is most important. New jobs/opportunities require quick decisions and mobility.

[@inthevault9603]

They seem like a wonderful couple and family. I wish them nothing but the best.

[@skyak4493]

It is great to see 3 generations living in a house they own and control, taking care of each other. And it's all within their means!

[@hollynorris957]

Don’t forget one big piece of the housing market problems nationwide, BLACKROCK and others like them. Investment firms buying up not only houses but whole neighborhoods often rentals! Interestingly in the news today was Blackrock in trouble themselves, let’s see what happens next. Will markets stabilize ?

[@RoIIingStoned]

BLACKROCK

[@treesnmoguls]

Hedgefunds have largely stopped buying (prices too high, maybe?).

[@BobCollins42]

I'm happy to see positive views of my hometown of Cleveland. However, getting advice on whether to buy or rent from real estate agents is suspect at best. One positive update to their standard patter is the recommendation on planning on 10 years in a home before a buyer is likely to come out ahead of a renter.

[@michellemarie1197]

Right now as someone who has been low income, it makes a lot more sense financially even if you don't put down 20% to avoid PMI to buy, even if its not your dream house. Renting is not worth it, the convenience isn't worth it and can be taken away and lease terms can change. Owning a home gives you equity and security, also renting anything can be subject to increases, while mortgages stay the same and you can pay it off, what happens when you are renting and you're on a fixed income??

[@sp123]

Most people saying not to buy mean as an asset to sell or rent out. If you need a place to live, buying is always cheaper long term

[@carolinecollins2441]

The principal + interest total stays the same if you have a fixed rate mortgage, but the property taxes and insurance rate usually go up (and those are often included in a mortgage payment). So, the idea that your mortgage payment never increases isn't accurate.

[@treesnmoguls]

@@carolinecollins2441 +1

[@ballison1716]

​@@carolinecollins2441 exactly yes it doesn't increase

[@jimmyjay689]

​@@charlesoyeyemi4951 but that should add value to the home

[@stray5454]

I'm happy for that little girl. I remember how excited my daughter was when we moved into our home.

[@Pete.across.the.street]

People have all these kids and wonder why they can't afford to buy a house. Buy a house 1st, then have kids. Or just don't have kids, there is no requirement to do so. Having children is a huge reason so many people are living in poverty and can not get out of poverty. That plus, living on an overpopulated planet, we have to overcome the stigma that having kids is always a good thing and that everyone needs to have kids. The market and inflation are also pretty bad.

[@Viccr72323]

Facts. We will continue to have housing issues if people keep multiplying like we are not overpopulated.

[@Pete.across.the.street]

@@Viccr72323 housing, poverty, and crime will only get worse will only get worse with the outlaw of abortion too. But nobody is willing to talk about it.

[@saagisharon8595]

@@Viccr72323 you have housing issues because of regulations and artificial shortages

[@Pete.across.the.street]

@@saagisharon8595 that's correct but it's only part of the problem. It's more complex than just those two talking points.

[@handleyobusiness]

@@Pete.across.the.street Abortion won’t solve the problem, reckless behavior is the problem. People wonder why the world is messed up when the dumb/stupid over-reproduce more than the wise/educated.

[@ProfessorX484]

Owning a home is just an illusion for these mortgagors. It's technically a rent to own contract for 15 to 30 years. I personally could not call something mine unless i absolutely have FULL ownership over it. The banks/lenders OWN the property until its paid off. Only very few people get to peacefully accept the fact of OWING.

[@special1740]

👍👍👍

[@armamentocivil7150]

She is correct about buying a house based on monthly payments. Lender will not lend you money if you can’t afford the monthly payment. Monthly payment will help determine the home price range you should be looking. Unfortunately that’s how it is. Also I hate that they focus on the interest rates. It is correct that monthly payments are in the all time lows, but home prices are in all time high lol

[@AtsircEcarg]

I don’t know anyone who wants to rent, they can’t afford to buy. I think we should eliminate corporate ownership over single family homes, townhomes and duplexes. We should limit how many single families homes one person or business can own, limit vacation home rentals. I also don’t love flippers but at least homes are still going back onto the market, the problem is when they are bought to be rentals .

[@lukebishop4057]

We should also limit international buyers as well. No offense to foreigners but locals should have first dibs.

[@joewolfmedia]

It's free market. That is why people come to America is to make money.

[@Shadow-7773]

AtsircEcarg' don't we have enough Libs making things worse for everyone as it is? Please look up the word "FREEDOM"

[@kevinhsu8184]

It’s kinda disappointing for CNBC not to do a real comparison cost of owning vs renting. This is a financial channel after all, they should do a much better job. A realistic comparison should include the reinvestment (either in stocks/ CDs etc) of the difference between renting vs buying. Cost of owning a home should also includes RE tax, insurance, maintenance fee, etc. I suspect after all the math is done, renting will come out on top most of the time. The real upside of owning one’s own home is mental security/ stability which can’t be calculated with cold hard cash.

[@raymondanderson792]

Everyone who rents and doesn’t buy If you go back 70 years has lost. I don’t care if your payment is $18000 a year to own, and $10000 to rent. At the end of 3 years that’s 30,000 in rent. And it’s 54000 in Mortgage and minus 54000 from equity gain. Cost 30000 to rent vs zero to own. Every house I’ve owned going back 10 years every single mortgage payment was reimbursed dollar for dollar in equity appreciation. I lived for free. As did millions of Americans. Rent is for idiots.

[@RomeReactions]

8:01 this lady says you should purchase a house based on monthly payment and not total cost, this is the most dangerous way to purchase anything. She must work for a bank or or something because this is how dealerships and banks get more money out of you, by adding more to the total price but then saying “oh but it’s only this much a month”. This month-to-month mentality is why people are so deep in debt and not building equity and wealth.

[@treesnmoguls]

A shortcoming of this video is that it pretty much excludes the maintenance costs of home ownership. A rule of thumb I hear is 1% of value per year, so on a $300,000 home, that's $3,000 per year or $250 per month (will vary widely per year/month). That's just "keeping the lights on" for things like roof and HVAC systems. Also, most folks don't hold their homes 10 years. In those cases, they are largely better off renting. "Life will be perfect once I own a home" LOL! (not really!!)"

[@trockstar303]

Viewer: I'm trying to decide between buying versus renting a house. CNBC: Stop whatever you're doing and start flipping houses in Cleveland yesterday.

[@randomized614]

You’re forgetting all that monthly mortgage payment goes toward owning that house (equity). Yes, rent may be cheaper but that’s money you’re never getting back.

[@blk1735]

And homes are usually larger than apartments.

[@skyak4493]

It bothers me they never discuss principle, or the fact that by fixing a families primary expense they cap their budget. I have owned homes for over 30 years. I never made more money than I put in, but that still left me with reliable savings to invest aggressively where I made millions. Owning your primary residence is not a great investment, but it IS the best cornerstone you can have to personal finance.

[@HectorDeJesus]

No. Check the amortization schedule and see how much is just going towards interest.

[@thebastardgift]

Owned. Equity. Rent. Air. Do the math.

[@randomized614]

@@HectorDeJesus thankfully I locked in my mortgage at 2.5% so I’m fine. I used to pay close to $6000 on a 2 bedroom apartment and I’m paying less now.

[@ArmandusRem]

This is literally what our family is going through. We need more space and live in Pittsburgh. Prices are shooting up due to general affordability here so much that we decided to add a 900sqft addition vs sell because purchase prices are far higher and don't have what we want. We were able to do the addition for $130/sq vs homea selling for 189-190/sq

[@arex9000]

My fiance and I are planning to do that too if we aren't able to get a larger house in the next five years.

[@HoneyBadger80886]

You are one smart cookie!

[@Gumbier_Than]

That's where I live.

[@KC-dr3cg]

Why would you need more space or do you mean that you want more space

[@jazzyj6640]

I moved to Pittsburgh in 2019, I would buy s home but I don’t like it so I want to move! That will be happening in the next year. 😊

[@angryhd2976]

All i know is after i bought my house the equity started going through the roof. i’ll never rent again. Renting is like putting money in a dumpster and then lighting it.

[@chrisaycock5965]

A lot of cities are at very crucial junctions not just in this era but within American history. Cities are growing by leaps and bounds running out of available space the issue is now that existing policies are headbutting against people who have lived there before and the lawmakers. We have to up zone and redefine the American city to accommodate for the change in living. California is a poster child of what America will look like if housing policy doesn't catch up with the needs of a changing world. A lot of housing costs are driven by the ease of being able to build and the lack of housing that gets built as a result of policies.

[@LunaMirage]

A lot of the middle class and lower middle class are fleeing California. It's gonna be interesting when the average cost a burrito here is $15-20. Not to mention how detrimental Proposition 13 has been with homeowners not wanting additional homes to be constructed so that their home value is high while paying low taxes on it.... ..>.>

[@chrisaycock5965]

@@LunaMirage Well yes and that just puts pressure on other cities which are starting to have the same issues as the places they're fleeing

[@itn-nq5tn]

America needs to solve their real estate and credit system so that everyone benefits from the American financial economic system.

[@604h22a]

You think corporations and the rich will allow that?

[@skyak4493]

The reason housing skyrocketed in 2022 was that the government dumped money on EVERYONE and held rates down. The problem is the current administrations solution!

[@cable30]

I can guess if the gov made times easier for everyone then corps and the rich would finds ways to not have stuff pass to keep stuff how it is. so the corps and investors will keep steam rolling to buy up places anytime so no one but them own a place and flip it to become rentals. if u own a house then stay or u gonna become a rener over nite and own nothing but what u got at time. i no fan of investors cause they caused some or many to become renters and now studios and apartments have gone up in price cause of supply and demand bs . corps and investors just wanna bank. if there are homeless they dont care, till they are forced to care anytime later.

[@inthevault9603]

FICO is a scam. The fact that it’s formula is secret should be illegal.

[@brotherakuma]

I think the new saying should be houses are cheap buying houses where you want to live is expensive lol

[@catemccool4100]

I bought my small house in 2016 due to high rents. It wsa a lot cheaper to carry a mortgage. Including taxes and insurance it is still more than 50% cheaper than renting. I was fortunate to get low interest rates too.

[@mibox8302]

I used to live in Cleveland actually Parma, OH and homes are so cheap, decent homes are at 100-130K its insanely cheap. The weather is terrible and little variety and its Ohio but very affordable

[@janinehudak7659]

My hometown. Not too far from Cleveland, when I was an older teen we would go there for more nightlife and shopping. I am someone that likes to live on the Coast but I wouldn't not recommend living there for family life.

[@NomadOverNormal]

8:20 “you don’t buy a house on the price of a house, you buy on the monthly payment” That Type of talk is why we have such a debt problem in America. What the actual hell lmaooo. Sounds like she’s a lender.

[@DG-fs1pq]

Foreign investment in the U.S. housing market is horrible. The U.S. needs to put U.S. citizens before money. This is sickening. Another note, it is NOT the rate that is the issue. The problem is the overpriced houses. The values shown are not real.

[@rack9458]

Do you have 2.5 million for my oceanside condo? I didn't think so!

[@saagisharon8595]

The US was founded on the concept of owning wealth, not catering to your low income citizens like you have some kind of identity to fight for

[@DG-fs1pq]

@@rack9458 what are you talking about? Seriously, is something lost in translation here?

[@rack9458]

@@DG-fs1pq You fail to grasp the fact that there are properties out of your price range and opening it up to foreign buyers is good for everyone. If you are going to restrict foreign buyers you better be willing to force all US citizens to sell their foreign properties. If not, you are just a hypocrite.

[@DDGainesJr]

@@rack9458 Not at all. This is a point in time, and until all Americans have purchased the homes they want, foreign buyers/investors should be banned from our markets.

[@PG-tc6os]

I came from a poor family in Nicaragua and I can tell you that It makes so much sense owning than renting. I bought my townhouse in Miami in 2017. Which it is 2/2 where I rent the extra bedroom and bathroom for $950 and it has been the greatest investment ever.

[@paxundpeace9970]

Great, advice always consider what you can afford and how to make additional income. I wish you well.

[@PG-tc6os]

@@paxundpeace9970 thank you so much 🙏 God bless you

[@shasmi93]

Yeah… that’s going to be under the water in about 30 years. And all you money and time wasted. Poor choice of city to buy considering climate change..

[@PG-tc6os]

@@shasmi93 so you think, you and I are going to be alive in 30 years, you are dumb as brick 😂😂😂

[@shasmi93]

@bobby shmurda's Hat considering I’ve studied thousands of hours of environmental science and biology. Economics and statistics. Yeah I do. Let me know when you’ve studied the science throughly and if you disagree, let me know. I love differing educated facts and science thrives on competing theories. But I’m going to assume you heard someone on AM radio screaming about climate change being some giant hoax and didn’t delve into the research. Turned into a parrot instead as a life choice? Am I getting warmer?? (Pun intended)

[@tjj1489]

At least at the end of a mortgage you actually owned your home. They’re just need to be more home getting built so the prices to go down.

[@djwoosie98]

This won't impact price like you think

[@Nibooth3sly]

Care to elaborate?

[@KesslerK90]

Which is huge for retirement. You can either sell and move to a LCOL area; making a profit. Or simply retire in place without worrying about mortgage payment.

[@eduardomendes5220]

All the builders have realized that the smaller the inventory, the better the profits. Now everyone is building half-million condos.

[@Kurplode]

You have to watch out because if you can only put $5,000 or $10,000 down on a $250,000-$300,000 house at even 3% and only make the minimum monthly payments, you just threw away all of the 30 year equity in interest payments over those 30 years and that’s not including repairs over those 30 years.

[@jez5855]

Buying a bouse is always the right choice. The only question is whether you're ready for it. One major "cons" for buying your house that they didnt mention is anything that breaks in your house is your problem. Not a big deal if its a wobbly door knob, but if its a broken fridge or washer you wanna make sure you have enough income and cash to afford such emergencies.

[@chowsquid]

Fridge? Washer? Try roof. Pipes.

[@treesnmoguls]

MOST people are not prepared to buy! Most people don't have reserves after they close and end up borrowing money for maintenance costs like plumbing repairs. Then they tell their friends they are smart because their house went up in value, but at the same time they are drowning in debt and at risk of foreclosure...

[@dlc2479]

It's not always the right choice at all, especially for those early in their careers who can benefit from mobility

[@Poesghost]

Wait, not everyone has a mother, much less a mother who's willing to pay $1000 per month to help offset the cost of buying a house and save money. What's the message here?

[@afaqahmad1816]

GO get a mother

[@The14thNight]

Lo 😂l. I laughed. Sorry

[@saagisharon8595]

the message is they (the top 1%) don't want us happy, they want us enslaved

[@teresazephrobsc7281]

I bought my current home in Feb of 2004 and paid it off in 2019. Smartest thing I did was work my butt off to get rid of that 30-year fixed-rate mortgage in 15 years. I will be there another 11 years and I am glad I made moves the way I did. FYI...back in 2003 when i bought it, I was living on about $23k a year. I went without new clothes and trips and take-out and have no regrets.

[@dicemaster1996]

Mf a starter Home is 350k right now. Your opinion doesn’t matter. I make 80k a year and even putting 50k down now still looking at 2500 to 3000 a month for a mortgage.

[@mangos2888]

I was making more than that in 2004 but was living in Oklahoma - and had no desire to be stuck in that state! 😂

[@Raegoul]

Just because your mortgage payment is the same as your rent (or even a little lower than) that doesn't mean you should buy. If you don't have a 6 month emergency fund, and you live paycheque to paycheque, you have no business buying a home. And don't get me started on those 5% downpayments.

[@garyt-of6yb]

I SAY BUY! INVEST IN YOUR FUTURE PAY THESE THINGS OFF AND YOU OWNLY HAVE BILLS NOT PAYMENTS! RENT YOUR PAYING OFF SOMEONE ELSES PAYMENTS! THIS IS THE HARDEST THING TO DO BUT LIFE WILL BE BETTER WHEN YOU TRY TO RETIRE!

[@NateClay]

Your property taxes are your rent, your HOA can control things about your property, plus you're generally more responsible for the property. Owning is not worth it unless you're able to buy it. Cause... financing is literally renting your house from the bank LOL

[@grobble8954]

The story should have mentioned that 30yr mortgages, which has now become the standard when talking about homes, is a poor consumer product. It is designed to benefit the lender via astronomical total interest costs over the loan life, while making people often house poor, as they see a monthly payment that seems good, while over the life of the loan they are paying 3x in total costs of the actual purchase price. If you can really afford it get a 15yr mortgage or at worst a 20yr mortgage, which you can find at many lenders.

[@vitamind_forme3850]

In my area, it is either buy a fixer upper for 200k or buy a 2 bed 1 bath house for 400,000 for under 1000sqft. 2019, that home was $150,000.

[@MMMmyshawarma]

Is this Philly? Because that's what's happening in Philly.

[@paulstandaert5709]

I have owned my home for the last 20 years. I have done math in the rent vs buy thing for "fun" over and over. Unless you are renting a bedroom from someone for cheap or plan on not staying around very long, the buy option has always come out on top. Rent goes up and a mortgage effectively goes down over time. Renting, even if its cheaper, is like enjoying a fatter paycheck by not investing in 401(k) in the mean time. There were so many things that ownership has allowed me to do that rent would never allow. And the affordability isnt far off from 20 years ago. It wasnt easy back then and it isnt easy now. When I was 20 years old and looking at buying a house, all the old people were thinking that I was high as F for even thinking about it. I did it, and I am still here.

[@GarrusN7]

Are you factoring in property tax. For example, in Texas property taxes are quite high and can go UP year to year. Not all states are the same but that's something you have to consider in places like Texas.

[@paulstandaert5709]

@@GarrusN7 I did not forget about property tax. I wrote out a check to pay it just a couple of months ago and I do not forget it easily . As I recall, they were high in Texas... Houston area is the only place I actually looked and that was 2 decades ago now. And the taxes DO go up over time. Some years they went down, but the general trend is upwards. Texas has no state income tax, so it was basically a wash compared to where I live. Compare that average monthly increase to what my apartment of 20 years ago is today and I would rather just pay the property taxes. Starting out, it is more expensive to buy a home, but that phenomenon changes over time. Getting over that "get out of the apartment" threshold is a key phenomenon in determining how expensive it is to be poor. Everyone tried telling me that I could not do it. I did it anyway. I am still here. It wasn't easy back then and the economics haven't changed much for today. The new generation says it has changed, but it really hasn't.

[@NorthlandDWJ]

​@@paulstandaert5709But they could be other factors to the way you use that money you would use from cheap rent instead of buying. What if you use the excess rent money to invest in stocks or your own business instead? Theres a posibility doing that could make you more in a shorter amount of time than waiting for the house value to go up? Especually if you reinvest the money you make from business if you are successful. What do you think, theres other posibilites than buying a home for those who cant afford?

[@paulstandaert5709]

@@NorthlandDWJ Mathematically, this is a very sound idea, at least to a certain extent. If you rent for $1,000/mo and own for $1,300/mo (for simplicity's sake) you can take that $300/mo and invest it and get a 10% return instead of a 2.85% - 7% that would be your interest on a mortgage. Mathematically, this DOES work. It is also pre-income taxed money whereas you are paying the mortgage with taxed money. However, this would assume that the mortgage would be there forever, and for some, it is there forever. It also assumes that your rent is never going to go up and it WILL be there forever. I should look into what my apartment of 20 years ago ($625/mo) is going for today. Somewhere along the line, there is a changeover. After it is paid off, you can start investing that full amount up to the IRS's allowable maximum and start hitting it hard. If you lose your job, its kinda like, "oh well." Owning also opens up other opportunities. Vehicles, for example... I could regularly use what most people deem as "unreliable" vehicles because I had room to take care of them. I have a spent a small fraction on vehicles that most people do. It is expensive to be poor. I believe that there's a few factors at work with the housing costs right now. #1.) Big $$$$ people moving out of California. They can take their assets from there and out-bid just about anyone anywhere else. #2.) Inheritance. There's a lot of boomers dying now and leaving a lot of money behind. #3.) a labor shortage, being somewhat driven by #1 and #2. With that, its even tougher to get a crew together to construct a new home, so simple supply and demand logistics come into play. #4.) The new generation's desire to shun personal responsibility elsewhere. Why would investors bother to buy up all these properties if they weren't going to make money renting them? Why would anyone want to own a place where the sewer line might collapse and then you'll have to fix it? Why take the risk of having to shell out many $thousands$ for a new furnace when you can just rent? To combat this... it is easier said than done. Look at what broke people do and don't do that. Or do what they refuse to do. I see too many people poking away at their Iphone 15 instead of doing something actually productive with their lives while complaining that things are "too expensive". Hell, a guy at work was thinking about buying a house, but because the market is too "crazy" right now, he decides to keep renting. So, I get my phone out and start looking at misc properties, and I find one that looks suitable by the pictures. He glances at it, sees the carpeting, and says, "Yeah, that place is going to need some work" and totally dismisses it. Yeah, who cares if it is going to need some work? This is one of those opportunities to do what countless others won't do. Then once you know how to lay new carpet, you'll learn that it isn't that difficult and your buddies will be calling you over to re-carpet their house for some $$$$. And then, in 5 years, after he sees the prices not go down any, he is going to wish he bought today. Anyways, sorry for the long rant. I could go on all day on this subject. If you just do what the masses do, what advantage do you have?

[@NorthlandDWJ]

@@paulstandaert5709 Thanks for your insight. Gives me something to think about. Currently Im renting for 600 a month. But that because Im renting a room in a house.

[@iamjohnporter67]

I hate to admit this but I am stuck living in my parents home. I tried to find a home that I can live on my own but man its so expensive. Even trying to find a small home for myself cost like $110,000 before anyone says "Get a job" I am relying on SSI income and even that is not helping all that much.

[@blk1735]

SSI doesn't pay enough to own a home on your own.

[@iamjohnporter67]

@@blk1735 I know that and I've been struggling these past few years to find a good job and I keep getting ghosted or just turned down.

[@lenaprice6239]

@@iamjohnporter67 You shouldn't be receiving SSI if you are able bodied and can work.

[@iamjohnporter67]

@@lenaprice6239 Well what the hell am I suppose to do to get enough money? Hmm?

[@lenaprice6239]

@@iamjohnporter67 I cannot tell you what you should be doing, because I do not know your educational and/or professional background. But if you are able-bodied (and do not have a bona fide disability) and can work, you should NOT be receiving SSI.

[@SweetCammieEyes1]

Did renters insurance not cover the cost of the hotel, damages, and replacements?

[@mecharoo]

what a lovely couple, how inspiring. the dad looking after and providing for the family.

[@evansymon5376]

We bought our first house in 2022. I based the decision off of the rent for the 1 bed 1 bath apartment being 2-300$ less than my current mortgage on a 2 bed 2 bath house.

[@hadley407]

I hate that there are so many people doing house flipping making it harder for new families starting out looking for cheaper homes to buy have less inventory becuse everything is already redone and made super expensive so they take that sweat equity that the young families could be building

[@Intranetusa]

The calculation at 9:14 for owning a house doesn't include property taxes, home owner's insurance, annual maintenance costs, and other miscellaneous expenses (lawn mowing costs, snow shoveling costs, potential HOA fees, etc).

[@mr.vash42]

It's hard to tell for sure, but I assume it does include property taxes and home insurance. Those are often escrowed through the loan servicer, so I think those are in that escrow line item. None the less, you are correct that there are a lot of expenses missing.

[@spooksyschannel3038]

I wish it included utilities too. Many realtors never mention all the fees one may expect per month.

[@slippinslidewayz]

Don't move to Cleveland, its cold here and you wouldnt like it 😂. We sit almost exactly on the MCOL line. My wife and i live in a really nice area, 20mins from the center of downtown, and we purchased for $150k in 2020 at 3% over 15 years. The home is worth $220k now, but thats still way better than most bigger cities.

[@allenmobley8444]

It’s such a racket!!! I literally pay more than most mortgages for rent but I’m not “approved” for the average mortgage rate including insurance. It sucks however the current housing market is way too high.

[@joenunez938]

Because owning a home has expenses outside of the mortgage, and even with a fixed mortgage, you have increases in taxes and insurance. Lender take this into account.

[@ex0stasis72]

Unless you want to be stuck to the same house for the rest of your life, it makes more sense to save your money by renting and investing all the money that would have gone to the mortgage and maintenance. The fees for selling a house if you change your mind are massive. So unless you are doing so well that you can pay for that house in full by 5 or 10 years, which would imply that you could just buy a mortgage on a second house if you change your mind and rent your old house, unless all that, you're better off just renting and investing on the side. I live in Seattle, by the way.

[@asanta2023]

I’ve thought of renting..,but rents can go up as well..,

[@ex0stasis72]

@@asanta2023 So can your income or investments go up as well. I'm not saying your concern isn't valid, but as an argument, it's not a big gotcha for my point.

[@Julieglam3]

You are basically screwed either way in most cases. I have owned and I have rented. There are so many pros and cons on both scenarios. As long as I have a roof over my head I have never really cared. And I don't consider renting as "throwing money away". It's about survival in either case. Buying guarantees you nothing. You can buy and with one life changing disaster, you can lose it and everything unless you have a fat bank account. It also depends on where you choose to live and HOW you choose to live. As a semi-retired senior, I live comfortably in a rent controlled 55+ community. I don't have a huge bank account but I'm doing just fine. I wasn't devastated when we lost our house due to my husband's medical issues. We simply moved on from there and have rented ever since. We've had tough times and survived them. I think you can do either one, buy or rent. Its a personal preference, that's it.

[@ProfessorX484]

Facts.

[@julionoriega6734]

At 1:30, the city is mislabeled. That is Philadelphia not Pittsburgh.