Drawing Conclusions: Is renting really a waste of money?

[@mtnstock188]

If your net worth is only $35k and you think it's ok to buy a $500,000 home, then no amount of KZbin video is going to help you.

[@Arrica101]

Mtn Stock it's a hypothetical you moron.

[@jm309767]

It's a misinformed hypothetical at best. Keep your personal attacks for the short bus.

[@DANIEL-ls5ku]

+Mtn Stock damn right!

[@crystalraf]

Mtn Stock many many ppl do. My ex made me get a home with 3.5% down and a variable interest rate mortgage. I said this is fucking stupid. We are divorced now and didn't have any money left.

[@WTFIWFYDB]

Crystal Rafferty That's sad, modern marriage my ass. Hope you at least don't have to pay alimony.

[@TheKillWizard]

If your disciplined. Key words, most people are not

[@kaos4914]

Houses are a good investment if you have money. Now if you live paycheck by paycheck then renting would be a much better option as rent is lower depending on where or what you rent and you still may have extra cash to save. If you live paycheck by paycheck and you buy then you will be in trouble when the house needs repairs, there's also taxes on a house every year. It's now as simple to buy a house. Also what if you have a wife and things do go according to plan then you lose your shit.. its crazy.. it's a tough choice.. at least here a California is crazy..

[@KapelloMg]

I've seen this comparison before, if your wife decides to divorce and gets the house, you are losing the money you built up in the house, as opposed to... you divorce, and you didn't build up anything, so you don't lose anything? (because you had nothing..)

[@ve2430]

Nobody will sell you a house if you're living pay check to pay check

[@tjaccount5245]

The key is to do both, buy a house and also invest your money. If you can't do both you are stretching yourself too thin.

[@Sprintervan1]

This video makes me want to just live in a van and just camp out in nature for $10 a night.

[@dwightstjohn6927]

BLM land in the USA is free. Now you know why so many Americans and not a few Canadians are living in their RV or van.

[@robinbaby1971]

@@dwightstjohn6927 😂😂😂

[@mulliganstew72]

Tim L I’m sure they jacked up the rate like everything else… Any idea how much it would cost? I like this idea!

[@mariya1388]

That’s 3,650 dollars a year hell yeah

[@thephillyplug]

live out of country

[@lestermoe509]

Problem number one- Owen bought a house he couldn't afford

[@blackworldtraveler3711]

Lester Moe Sure did.

[@lestermoe509]

BlackWorldTraveler and the mortgage payment in this scenario was obviously on a much more expensive house than the house in the rent payment.

[@cautarepvp2079]

Lester Moe agree ye

[@miguelena40]

my neighbor bored an apartment in 1985 in lauderdale by the sea florida for 90 thousand plus maintenance and taxes and she sold the apartment 30 years later means 2 years ago for 90 thousand she lost a lot of money

[@NBABIGANT]

Lester Moe exactly

[@dantheman227]

He forgot one character, Lenny the Losing Landlord. Who rents out a $500k home for $2100 ?

[@lt0181]

Was looking for this comment. 3 minutes in and the analysis is shot because of this miscalculation.

[@tesselaynes5428]

and most of those 500,000 dollar houses in my town were worth only 86,000 dollars not too long ago and are over 200 years old.

[@matthewsmith5104]

Some landlords in high-cost areas like Toronto rent property at a monthly cash-flow loss and hope to make up for it with price appreciation instead. Also, investment properties have much higher downpayment requirements than primary resience mortgages so the landlord's mortgage payments would be a lot less. Rental property mortgages require 20% down, not 5%.

[@dhabu9017]

Landlords rent out for what the market will bear, or they won't rent out at all. That may be enough to keep the property cashflow-positive, or not; obviously they'll try, but it's by no means a guarantee. Source: Am a landlord, also a finance counsellor who speaks to a lot of landlords across the country.

[@lt0181]

There are reasonable reasons for an owner to establish a rental property with a negative cash flow. Every situation is unique. You could luck out. Roger lucked out. Using his luck to extrapolate a conclusion regarding renting vs. buying is silly. It would be much easier to make the case that inflated housing prices will fall and crush owners while providing great entrance opportunities for new buyers. That’s a logical argument that I could support.

[@james8zaq]

If you only have 35,000 in your liquid bank account, you shouldn’t be buying a 500,000 house

[@a55tech]

James c In the US, he wouldn't be approved for that mortgage.

[@prestonadkins2916]

You spoke my mind

[@shuaizhou589]

Lol good point

[@astibusgaming3649]

The thing is nobody has $35,000 in their liquid bank account. That's only a small portion of the population. I don't know why this video exists to appeal to renters when renters rent because they can't afford to own, like it's going to convince us to buy pointing out how it's the better option when in reality we don't buy not because we're uneducated about renting vs. buying but because we can't afford either lol. Personally I can't afford to rent a room, let alone rent an apartment or buy a house. Not even banks carry $35,000 on hand anymore lol.

[@davidp2981]

Astibus Gaming Dam you can't afford rent? Hope your situation improves

[@AgentSmith911]

Plot twist: Roger rents at Owen's place

[@vitaminb4869]

Bwahahaha! Good one!

[@TheOneLichemperor]

At which point Roger would be paying Owen's mortgage for him, so Owen would certainly be better off financially.

[@TheOneLichemperor]

I was assuming Owen had a spare room. I would certainly hope so for those house prices! :D

[@marcevans2620]

TheOneLichemperor not really as, according to this video, the rent is less than the mortgage

[@TheOneLichemperor]

Still, he would be covering a large portion of the mortgage. I'm not minded to watch the video again to find out how much. ^^'

[@atelectro1]

It all looks good on paper. But we all know life is full of suprises.

[@freelancer3965]

yes but,you need a paper to be ready for suprises.

[@bigpoop146]

Like Karen taking my house and kids

[@ebywinery3800]

Absolutely man u got it right

[@kierann4234]

That's correct!

[@dultonenriquedulton2695]

You very right coz once you get fired from work,they will come n tell you about rent.they gonna take your instalment car too.where are you gonna go?🙆🙆🙆🙆🙆

[@apfelcake4528]

i came for answers. i left with intense confusion

[@mi8861]

Deadass yo😭

[@misspriss2482]

That's because everybody's situation is different. Say that you are convinced that buying a home is what's best but you're not financially prepared. You're in debt. You don't have an emergency fund or your home has expensive problems that drain your emergency fund. In addition, something comes up and you need to move. You might also live in an area where house prices are astronomical and even with a down payment, your mortgage payment is way more than you can afford. If any of this scenario fits you, renting makes more sense. Also, everyone who tells you that buying a home is better always assumes that the house is an asset that you can sell and get your money back. That's not always true. I have known people who have had to pay for two living situations because their house wouldn't sell or the potential buyer backed out at the last minute. Now they're screwed. However, if you are financially prepared to buy a home or house prices go down in your area, buying a home might make more sense. Bottom line: don't let anybody talk you into anything without knowing the full cost of it.

[@chocoholictan]

English is my third language but I still find the video make perfect sense. All in all, it depends on YOUR financial goal. For someone diligent with updating their investment portfolio renting could be an alright choice, but for someone who's not as diligent they would be better off buying a house and invest in illiquid asset such as a house.

[@blalala6181]

It makes perfect sense wym?

[@jameslovell405]

That's because this video is a pack of fabrications. Look at the overall financials of homeowners vs renters. Homeowners win every time. As long. as you buy within your budget, especially when you consider the ridiculously low mortgage rates available today, in 25 years you will outpace renters by a large margin. I am not a real estate agent, I am a property owner. I have three properties; a rental, a cabin in the woods and my primary residence. My current assets far outweigh my liabilities. I suspect the producers of this video own, or invest in, rental properties.

[@lindaapril2253]

Screw this, I think I am just gonna go live in a cardboard box.

[@tanz5389]

Can I rent half of it. I'm a minimalist.

[@theeGAME360]

Make it a third I'm moving in too

[@mydogskips2]

+Linda Newton I think a lot of us may be doing that soon, whether by choice or otherwise.

[@rodt.shelton]

you can save a lot of money.

[@4selfimprovement]

Sharing economy rocks!

[@franciscoramirezespanagarc7974]

What if Owen the owner doesn’t sell the house after paying off the mortgage? He can keep it for 5-10 years and won’t have to pay any mortgage, whereas Roger would still be paying rent.

[@walkermorales337]

Or even buy another house and rent the original house

[@politcallycorrect5816]

but the renter will have an investement portfolio making larger gains than the appreciation on the house.

[@Simar2674CABBAGE]

Owen could also rent out his old property which could make him some more money each month. Overall, good vid tho since owning a house for 25+ years is kinda what the average person does (especially with 30-year long mortgages).

[@feandil666]

@@politcallycorrect5816 but the owner can start putting the equivalent of the mortgage into his own investment portfolio once the house is bought

[@alquinn8576]

@@feandil666 but the renter already has a large portfolio that would take a long time to catch up to as the buyer

[@davidhunter1538]

I trapped myself in debt. I moved into my vehicle. All the money I had been paying in rent went to eliminating debt. Extreme, I grant you - but it worked. Lived out of truck stops. Then I bought a large caravan and the boss (Transport) invited me to live on the premises. Free. it's been six years now. He likes having someone on site every night (it improves security). Now, I am completely (not a cent) debt free, no rent, free electricity, free water, no commuting, no grass to mow and every week I drop $500 dollars into my super or (401k). Got my life back. I can't believe something I planned worked.

[@backpain100]

Glad it worked out for you. Enjoy that sunset and the margarita. Once in a blue moon, you can travel to cool places with the peace of mind too.

[@davidkramer333]

That is the way to do it! I would recommend not putting all of your eggs in the 401k basket though. If there is a crash you will be the first to lose.

[@davidhunter1538]

At 50% the normal tax rate here, I'm willing to roll those dice :)

[@leroypageholloway8219]

Diversify your retirement investments (401K, saving accounts, mutual funds, ), David maybe you should try index mutual funds, etc. definitely diversify your portfolio.......

[@jolank]

So how do your wife and kids feel about it? :)

[@Jamal.S]

You're telling me that it costs the owner of the identical house 3,220 a month, and they only charge their tenant 2,100 in rent?

[@jpress6340]

Exactly...when has rent ever been lower than the mortgage

[@Kcducttaper1]

Right? In my area, a $500,000 house would rent for roughly $3,250/mo. I have no idea where he pulled that $2,100 from...

[@sumitrampal188]

My 2 cents - owner can’t make this argument with tenant since why would tenant care about this? And I guess rent amount should be in line with what’s appropriate in market at that time. Any further point of view on this is welcomed.

[@jonahum92]

Where I live, 1bd apartments are around 450-650K + 200-400 HOA a month. On the other hand, rents are ~2000-2300.

[@kckcmctcrc]

YES...this is the glaring hole in this video...If the house cost 3,200/month to buy NO ONE would rent it for 2,100.

[@yuzhang3243]

it's all under one condition: DON'T GET DIVORCED. 😂

[@danielporter7773]

find the right person, make sure your legally protected if you owned the property your self

[@redsquirrelftw]

Or don't get married. :P Single home owner here and happy. If a girl does come into my life I will want to make a prenup I think.

[@danielporter7773]

not think, do it, its a no brainer, seriously she can ruin you, also you will find what her intentions are, if she said NO, and gives all the excuses in the world, GET AWAY FROM THAT PERSON, i know love is blind but use your brain you will know what she is up tp

[@jessicaolson490]

1) of you are already married you both own half the house. 2) if you get married and own a home, do a prenuptial. 3) if you divorced you don't "lose" the whole house, and may only owe alimony or child support if you don't split child rearing equally.

[@danielporter7773]

you are not correct there, if its done with good lawyer and is a contract out prenup, all done legally , no problem

[@TheUndulyNoted]

Well if the owner hadn't borrowed a ridiculous 95% on a 500k home, and lived in a reasonable 200-250k home, he'd be far better off than a renter

[@Thanos88888]

This is under the assumption that rent costs less than a mortgage payment. Where I live, rent is about 1.5x - 2x the cost of mortgage. You can pay $1000/month on mortgage, or $2000/month on rent. The typical renter is also in a lower wage bracket. This means that around 75% off a person's income may be going to rent. It doesn't leave much left to invest.

[@sgtsnakeeyes11]

KeeganTheMagician sure but how long are the amortization periods of those mortgages?

[@Thanos88888]

30 year mortgages. I'm talking about a $200,000 - $250,000 house. There are no low end rentals where a person can pay as low as a mortgage payment.

[@sgtsnakeeyes11]

KeeganTheMagician Where do you live?

[@Bricks107]

+sgtsnakeeyes11 probably since he is a magician ,somewhere in lala land !!

[@kingofslotsmillion3263]

KeeganTheMagician here in orange county morgage would be 3700.00

[@user-ex2yt1pl6u]

THE PERSONAL REASONS WHY I PREFER RENTING TO MORTGAGING A HOUSE SCALABILITY Renting encourages me to frequently evaluate my needs vs wants. For example, I often ask myself questions such as should I buy another TV for the bedroom or just invest the funds to continue building my net worth? This attribute helps me save money implicitly by occupying just the space I need at any given time and scaling up when I need to. A house is like a hard drive, in that no matter how big it is, given enough time, you will always find a way to fill it up. Outfitting a spare room (because you have it) costs money, and in most cases, the purchases would be wants as opposed to needs. FLEXIBILITY Renting gives me the option to go into a lease only if I am comfortable with it. I can choose to only go for rolling monthly contracts or leases with an appropriate get-out clause. And if a location stops making financial sense, I just leave, as per the contractual terms. Also, with renting I can quickly change locations to take advantage of career opportunities. This attribute made it possible for me to quickly relocate a while ago to take advantage of a fully-funded Cybersecurity PhD position in one of the top ten universities in the world. CERTAINTY The fixed nature of rent payments makes it easier for me to follow the ‘Pay Yourself First’ ideology as I do not have to worry about any taxes, maintenance, or other surprise bills related to living costs. This allows me to consistently invest a predetermined amount into index funds, bonds, or REITs monthly. The strategy is to go for competitive rentals that allow me to invest 50% of my income or at least an amount that is not lower than the monthly rent I am currently. This way I will always stay financially ahead, steadily securing that average annual 7% real return. PORTABILITY Renting and investing allows me to manage my investment portfolio from any location in the world with just an internet connection. DIY Given that I prefer to mind my own business, renting and investing allows me to manage my investments exactly how I want to, and I do not have to consult or work with anyone to do so. Furthermore, my investment portfolio makes it possible to reap the benefits of the real estate market through REIT funds without the accompanying hassle (and allied potential drama) of having to deal with tenants, property management agents and other parties. FREEDOM As an individual that values debt freedom and peace of mind above all else, renting and investing makes it possible to secure my future without being on the hook to the bank for decades. It is personally a more appealing strategy to live freely knowing that I can always cover my living expenses using the passive income generated from a healthy and heritable investment portfolio than to sign up for a loan that typically takes decades to repay. Also, renting and growing strong investments means that in my golden years, I can (without interacting with any form of mortgage debt) simply pay cash for a house and settle down - if I choose to. Having said that, always remember that there are many ways to achieve the same goal; 3 + 2 is equal to 5, but so is 4 + 1. So, do you and I will do me.

[@user-ex2yt1pl6u]

@@YahsLittleFlock Thank you.

[@hhjhj393]

As a poor person this is how I see it. When you rent someone does ultimately have control. If a dryer breaks or a washing machine breaks you are at the mercy of management and maintenance to fix it. If your apartment forms leaks, cockroaches, whatever you are at the mercy of everyone around you. In order to have stability you need bargaining power, when renting you don't have bargaining power, especially if you are poor. A lot of these apartment complexes I see in Denver are complete slum lords. Also when you own a property you can work on your own car and do your own oil changes. Idk having a property is just nice.

[@tauIrrydah]

I think I"ll just buy a Detroit suburb and declare it an independent country.

[@TheAnon03]

The property tax's would crush you.

[@ChadNasty]

i assume if he declares independence, he won't be paying taxes to the US government

[@binkyxz3]

Didn't we try that in 1861 ?

[@TheAnon03]

They're municiple tax's, no feds involved. And declaring independence isn't the same thing as getting independence.

[@danielporter7773]

not possible in USA, the confederacy tried that, after the most devastating war in the history of the USA, they totally lost

[@bronaldtrump]

I'm just going to move into a trailer. Fuck all this.

[@weareorigin]

You would be renting water and electricity and land from the trailer overlords. They can up the charges as they please. And the lower income areas are plagued with thieves, yelling neighbors, and trash.

[@GravitySpec]

@WRO: Um, you do realize that you would be paying someone else for water and electricity when you own a house as well, right?

[@1piscesqueen]

kleplocage 😂😂😂

[@EUTalks]

WRO The question is, will you buy or rent the trailer?

[@annalockwood9415]

Buying a house and your buying land wrapped up together. Buy a trailor and buy land for trailor. It basically is the same process. Its wrapped up the same but business's that sell trailors will work with bad or low credit and when you look for your land, you can look into getting more acreage. After time when your trailor is paid off , you can section off a part of your property and start to purchase a cheap trailor and rent that double what you pay. So your getting what your paying back. At least that what I'll start working on this coming year. Then when I die, my kids can live in the homes or rent them and have residual monthly income.

[@largemouthbassman5628]

You never really own your home, if you didn’t pay taxes they’ll take your house.

[@sabriath]

When you rent, a portion of that rent money goes toward taxes of the company you are renting from.....therefore, you cannot get away from taxes. The difference is that once you pay off the home, you no longer have that extra cost, but if you rented, then you have no asset at the end. Rental rates usually are far more than mortgage rates, but when you add in taxes and interest, it may seem like it's a waste, but that's because people are not taught math properly. I was renting a 3br/2ba apartment in my area for $1200/mo, which was middle priced and good community. I worked with an agent for over a year to look for something that would fit my budget....and I now own this 4br/2ba home with a garage and decent land. My mortgage, interest, taxes AND insurance total cost less than $1150/mo. Even if the home was over my rental rate, the home is still an asset....the going rate for room rentals in my area are $110 per day, or $500 per month if I wanted to, you can't do that (legally) with an apartment (known as subletting). After 30 years and the house is paid off, my "rent" (taxes and insurance) will go down to less than $200/mo....while rental properties will still be climbing. 30 years at the apartment, you still have nothing to bargain, no asset, you leave and you get absolutely nothing. For argument sake, if I were to add in all of the maintenance costs and repairs for the next 30 years, that still would only amount to an average of $50/mo extra....but to play devil's advocate and say that it was $200, if you were to rent at 1200 and save the 150 in a 5% compound interest account instead of buying the home at 1150 with a 200 maintenance lockup: after 30 years, you will have $125,508. This assumes that your rent will NEVER go up (hardly believable) or that you will consistently save (that's why renters always drive ferraris, right?). After the 30 years are up, if the homeowner is now paying only 200 plus 200 in maintenance, it allows them to save 950/mo....it would take only another 9 years to reach that amount, or 21 years to surpass the renter (if they were both still investing). In order for 5% to match paycheck of $2,500 in order to live without a job, the renter would need to save for 57.6 years. The homeowner only has to match the paycheck of $1700 because they don't have a 1200/mo rent expense, so they only have to save for 20.6 years, a total of 50.6 years, 7 years ahead of the renter in retirement. This ignores many things though, like refinancing at 15 and 30 year marks for investment growth capital, state and federal tax benefits for homeowners, and inflation rates that wouldn't affect mortgages.

[@iloveeveryone8611]

@@sabriath thank you!

[@JohnDoe-ql9pf]

@samantha tang renting is burning money dumb ass.

[@alexarmstrong7658]

@@JohnDoe-ql9pf Yes

[@ronnieblastoff4083]

Month old but if you dont pay your landlords taxes, the scenario is no different. It's part of your rent.

[@mochopz]

Lets just jump to year 30. Owners house is worth $3 M with zero mortgage Renters rent is now 9K a month.

[@steffengustavsen9678]

@I'm Mikey that cant be true. ppl pay 0 in property tax in norway for properties worth 400k.

[@user-ln2kc7yn7v]

Let's jump to year 50. Inflation caused a housing crisis and house owners can't sell their house

[@stevennakhla7803]

@@user-ln2kc7yn7v said house owner waits for things to stabilize and sells at the end of housing crisis and is now a multimillionaire lol

[@Golfnut_2099]

@DMCM6 I hit 25 years this June... I love it!!!!!

[@rey_nemaattori]

@@user-ln2kc7yn7v Since the mortgage is already paid off by then, it's not really an issue, you'll have to sell for less, but wil not be left with a debt. On the other hand you've lived there for _free_ for 25 years, so that's 25 years of that 3k per month saved. Bear in mind inflation will cause rents to spike massively just the same.

[@brianisfromvegas]

Who the hell rents a 500k house for 2100? Can you put me in touch with them bc I have a bridge for sale.

[@brianm9053]

The #'s in the illustration are WAY off, he said a 5 year mortgage.....also, agree $2100 would not get a 500K house where I live....if you can even rent one

[@iliketoskate0001]

I'd rent a $500,000 house for like 4,000-5,000 a month

[@amicuscurae9740]

Can i rent the bridge instead?

[@jerrymarasco8878]

brianisfromvegas I would guess someone that owned it for a long time. It's paid off ??? Idk.

[@ShadaeMastersAstrology]

Rotflprovax That’s terrible, my grandmother experienced a similar situation as yours.

[@Slot-Receiver]

TLDR: It depends...

[@PaweStepien92]

LOL, thanks for saving me 8 and a half minutes

[@mabdiuhrman]

moral of the story is, get rich then buy the house cash.

[@JC-gn6vk]

Internet Marketing World Yes, but if you don't want to pay property taxes for your house buy in another country!! Because if you pay property taxes the house is never yours. Even if you pay the house off!

[@kozmeetorez]

J Prewitt Right, how is it "ownership" if the city can still take your shit?

[@AprilSunshine]

Wait where are you living while getting rich? A box?

[@manit77]

with mom.

[@jowildcat40]

This is my goal, and with my financial strategy, it's going to happen in about 5 years.

[@rinositorus935]

The social cost of not owning a house is much more dangerous. You have to suffer from the stare from your aunties at every christmas party.

[@frankcoffey]

You just discovered the most expensive thing ever. Caring what other people think of you. Think how many multi billion dollar industries exist for that one reason. Those billions were ours at one time. If you manage to stop caring what others think of you that's a bigger advantage in life than a collage degree and cost a lot less.

[@maxiejohnson8356]

@@frankcoffey lol or your job is gone and then you are on the street. Covid is a wake up call for those living the rental life and an alarm about housing crisis. Ridiculously inflated real estate prices deny people of having a home.

[@Sophie-go3ql]

@@frankcoffey And you just forgot what is most valuable in our short lives. Acceptance in our close social environment. True and sincere acceptance, cannot be bought, and it's the main ingredient in a "happy life".

[@danielpinilla7131]

@@Sophie-go3ql "most valuable", "True and sincere acceptance", it´s really lame that you are part of a specific group that will only consider you based on what you have and not what you can offer as a person

[@Sophie-go3ql]

@@danielpinilla7131 Thanks Daniel, but "i'm being very honest when I say that i could not interpret your comment, perhaps it's also the luck of clarity in my original comment that may have caused some confusion. So,,, allow me to start again by explaining this in a simplistic manner. A few years ago while on vacation in a Mediterranean country, I came across two people having a conversation at the local coffee shop. the one person was showing off by listing all his wealth (land, cars, boat, money etc) to the other person. And when the other person was asked "and how wealthy are you ?" he replied,,, "I am exceedingly wealthy because most everyone i know in the village is a "good friend", and even people from the neighbouring village are good friends, and I as well as they, will never stop helping and caring for each other". So,,, the point i was trying to make, is that what is more valuable than a house and other material possessions, is one's success in being accepted "as a friend" among those one socializes with. Sorry for the long message.

[@MrDeathprof]

Screw this. I'm happy living in my honda oddysey and l.a fitness for taking a shower.

[@drzoidberg844]

MrDeathprof but that’s assuming your living alone what if you want more people around you

[@label1877]

My friend does that, she loves that life.

[@mjohnson1741]

Yes, that makes you smart. Tiny home is growing on me but there is still a lot of kinks and bureaucracy to work out.

[@justinmichaelfilms]

seriously. More and more people are doing this. Makes sense these days. Lets say Roger the renter took his 35k and invested half of that into a used hightop van, Then put the $1,000 hes saving from not renting into his investment portfolios. Now his investment portfolio is much larger after 25 years, and now Roger the renter gets to travel full time, and see all the beauty this country has to offer. Roger also has less to worry about and manage. Roger would have to worry about his apartment, AND his daily driver vehicle. Owen would have to worry about his rental property, tenants wrecking his home, repairs and maintenance not only on his rental property, but his actual home and his daily driver vehicle. By living in a van, the only thing you have to maintain and worry about is your vehicle, and sipping on mix drinks on the beach. Ultimately, Roger is happier. haha Heres the deal, most people value peoples opinions more than they do their own happiness. "What will people think of me if i live in a van? People will think im a loser... " Fuck em'! Do what makes you happy! What else is the point of living?

[@justinmichaelfilms]

@@drzoidberg844 Like a wife? Because that's fun, especially when 3 in 4 marriages end in divorce.

[@mikek1635]

That’s why I like being poor. I don’t have to worry about any of this cuz I gots no money to begin with.

[@SepherStar]

Funny story. I used to be poor. I paid $400 or $500 per month for a room in a five bedroom house in an upper middle class neighborhood. That was cheap for my area. Some month I had less than $100 for food. Anyway the houses in that neighborhood used to sell for around $250,000 but had shot up to $600,000 in just a few years and a lot of people were buying them and moving in with boats and RVs and so on thanks to sub prime rate loans. I was looking out the window one day wondering "How do these people afford $600,000 houses and boats and RVs?" And then I realized....they couldn't. All of my neighbors were seriously in debt and and had negative net worth and as poor as I was, I was technically the richest person on the block.

[@krzysztofp7846]

I am polish, i immigrated to Switzerland, worked there, having income around 80k CHF( > 80k $)a year, then I bought 120k $ house in my city and 2 apartament for rent, one in my town another in a capital. Got no mortgage, my monthly rent income is about 800€ what means I don;t have to work any more. Instead I am constantly developing my skills. I was in the U.S too, but as an illegal allien worked 10$/h wage. Didn't save much. I am 36 now. Got education, properties, know foreign languages, but had to work for it life long. Morover my property tax is 40$ a year here in PL. that;s sweet

[@ironlungmufc]

Krzysztof P Lewandowski!!!!!!

[@krzysztofp7846]

Munchen - used to work there too.

[@warsawlloyd4026]

Monthly rent income of 800 euros? 1500zl per property? What are you renting out, a castle?

[@tectorama]

What happens when you have always rented, then you retire with a modest pension. A pension for which a large chunk is taken by your rent. Then the rent will increase, while your pension doesn't ?

[@barbarastam9954]

Exactly. My mortgage will never increase and I can refinance.

[@babyfreezer]

Which means you pay mortgage interests for longer. If your pension sucks, then you should invest better. A pension is just a safe portfolio and as all portfolios, don't put all your eggs in one basket.

[@jackpalmer6253]

Of course your pension will increase to match inflation. And, to this entire videos point, you are smart and didnt bet the horse cart and all the eggs in the same pension basket. You have a balanced ETF portfolio with bonds and stocks outside of that

[@cindytakemoto9641]

Homeless retire senior from California would tell you what happen to them and why. The rent goes up so fast and high don't match social security raise.

[@juliantheapostate8295]

You can draw directly from a pension instead of securing a flat income, leaving the fund to keep growing. But your point is valid - paying rent in retirement is a mug's game

[@freedomisEexpensive-08]

I'm 48years old living in California, I'm hoping to retire at 50 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.

[@devereauxjnr]

I can feel your pains. New guys need to realize the risks that come with all of this. You could lose it all and you could win it all. It goes both ways. Second, what works for A may not necessarily work for B and you should not be a bandwagon investor. A good number of folks are raking in huge 6 figure gains in this downtrend, but such strategies are mostly successfully executed by folks with in depth market knowledge.

[@MrGravity304]

@@devereauxjnr Factos!! Since the market became extremely volatile and pressure increased (I should be retiring in 17 months), I took the decision to work closely with a financial advisor. It has already been 9 months and counting, and I have made approximately 600K net from all of my holdings.

[@freedomisEexpensive-08]

@@MrGravity304 How do I Find this lady?

[@MrGravity304]

@@freedomisEexpensive-08 My advisor is the quite famous NICOLE DESIREE SIMON She has been making a fortune online worth millions of dollars in digital assets for a select few for years. Lately, these types of services have appeared that allow you to copy the results of the experts. She demonstrates how to copy it automatically using that system.

[@freedomisEexpensive-08]

@@MrGravity304 Thanks for the info, i found her website and sent a message hopefully she replies soon.

[@getrightdiet8474]

I will just live in the wilderness for free.

[@bobbyhill8486]

same

[@ultralordd7625]

Information Guy you can build a tiny house for under $1000, research that.

[@newscenecatcher8637]

Lord D Use the forests wood 👍

[@eddyvideostar]

Lord: And spend another 1,000 dollars on an outhouse!

[@TaurenTLT]

Same

[@toddjohnson6809]

Owen is also responsible for upkeep and repairs. Roger is not. If the neighborhood goes to hell then Owen's property value will not be as high as estimated in 25 years. If better job or financial opportunities in another part of the country/world pop up Roger is in a better situation to relocate. Owen by having a house not being paid for can't just up and leave unless he can afford to have 2 locations to pay for.

[@clu52]

Todd Johnson you can sell the house and then pay the mortgage with that money.

[@toddjohnson6809]

Charlie Depending on the market it could take months or years to sell a home. If someone is needing to sell to move to another city or state they may be stuck in that home till it can be sold and miss out on opportunities elsewhere. By renting you are free to relocate more or less on a whim. Many people are upside down in their homes, meaning what they owe on the home is greater than the market value of the home. So they can't afford to sell.

[@chriscanopodcast]

if owen leaves, he can rent his house out to Roger and let Roger pay down the mortgage, why do you think he would have 2 locations to pay for?

[@toddjohnson6809]

Ask ChrisCano Owen will still have to budget for 2 homes. If Roger doesn't pay his rent on time or at all, Owen will have to cover that cost till he can get the rent from Roger. Any maintenance repairs Owen will also have to cover as well as insurance. If Roger damages the property Owen will have to pay for repairs till he can get a settlement from Roger. If Owen does not live near his rental property he will have to pay for a management company to take care of it. As well as lawn care. If the property is in a good location to rent out for a week or weekend rate such as for vacations or sporting events it might be okay. But it may sit empty so Owen will still have to budget for 2 homes.

[@sabin97]

if roger doesnt pay his rent he'll be homeless....so he loses before owen does.....

[@P_double_H]

After watching this video, I can say I'm so happy being homeless!

[@sarathpcputhur4594]

Ohh, God, where do you live?

[@jonminnella2966]

In a way you're better off there's lots of stress owning a home

[@Binaryhack3r_at_Protonmail_Com]

I lost my job in the oil sands, now I have to really find something, anything to pay my mortgage. I had more than I should have on that QuadrigaCX and I am quite depressed when this all went down just can hope E&Y is able to secure our funds but I am very doubtful due to recent events, everyday the possibility dims. Luckily for me my research lead me to Lance, a hacker I found on Binaryreap3r @ gmail com .... and he revealed so much discrepancies in the operations of QuadrigaCX up to when funds were frozen by Royal bank. He boasted he could help me recover my Quadriga funds and so far I have recovers about 85% of my funds through Lance Bergel (mail: Binaryreap3r @ gmail com ), even after weeks it wasn't too late for him to recover funds. I strongly suggest that everyone not to utilize this chance to recovery.

[@erickolb8581]

I was homeless too for a while. I generated so much income and having no expenses. It was dope! Only problem with it was survivin' the freezing cold winter and gettin' harassed by cops for no real reason. I always had a good attitude so they always let me go and I never got arrested.

[@luisfromtexas6674]

You get what you ask

[@oliveredwards2793]

Over the years, I’ve channeled my investments to stocks and real estate, both have been great investments so far, the answer comes down to your financial means, risk tolerance, personality, and ongoing returns.

[@noelstout3056]

@Joe Robert I firmly believe everyone striving for financial independence should own both stocks and real estate. The percentage weighting of each asset class as part of your portfolio will then be up to you to decide.

[@kelvinjohnson3906]

@Sean Roger great move buddy, I have purchased growth stocks too a little at a time over the past few weeks.

[@noelstout3056]

@Sean Roger this is quite remarkable, I need more info on Frost Hilda’s services, what’s the most effective means of connecting with him?

[@noelstout3056]

@Sean Roger much appreciated, I’ll reach out to him for a clearer understanding of how he operates.

[@elonspapa7393]

Both got married and have kids. Total net worth: NEGATIVE

[@eyeinsee]

Raymond Sim truuuuu

[@jamesblond917]

Plus a nice divorce, and the house is gone.

[@SK-se9oo]

So true

[@MuhammadRifana]

But itsbpaid of with cute kids and lovely wife.

[@killuazoldyck_]

But when you are getting old and still have to pay for rent its sucks.

[@Kabaselefh]

Most people in their old age end up renting

[@sirkrutchbluesman3009]

I AGREE WHOLE HEARTEDLY

[@ywvb._.0rpheus436]

Something called retiring from a job or career and you’ll still get a paycheck each month

[@Jw-iu2el]

If you own a home you still have to pay property taxes every month no matter what. So it doesn’t matter the greedy government will fuck you.

[@ww8520]

And you dont know how long you are going to live. It’s enormous pressure.

[@bartstecca]

Can't believe you didn't call the other guy Rodger the Lodger

[@eSSentialplaysYT]

Wren the Renter?

[@bernie9728]

For me the answer is easy. I'm 66 years old and I have never paid rent. So I guess you now know what side of the argument I fall on. Well, that's not 100 percent true, I do pay 20 bucks a month on a spot for my RV at the secure lot. So there is that.

[@Tommylee1242ATGMAILDOTcom]

Contact [phone] on whatsapp Or via mail@ [e-mail] (he does not take upfront payment) if you need help Hacking your PayPal, To fix your credit card, To fix your credit score, Western Union hack, To hack into your cheating husband phone, Bank account, PayPal, Instagram verification, facebook and many more.. His fast and reliable............

[@juliantheapostate8295]

Rent is paying someone else's mortgage

[@theadventuresofchopperandp283]

They forgot to include big repair costs, such as replacing a roof, or a chimney, having to tent the home for pests, or an uninsurable natural disaster. The renter never has to worry about any repairs. If there is such repairs, the landlords have to pay for the tenants hotels. The landlords are responsible for all liability on their property, even though they don't live there. Don't ever become a landlord! It isn't worth it, ever!

[@CanadianFinancePro]

Hey, they're assuming $520ish per month in maintenance, so, that does cover roof/chimney costs. I'm a LL of 3 houses, when we changed the roof (fully covered by insurance), the tenants didn't have to leave.

[@Tommylee1242ATGMAILDOTcom]

Contact [phone] on whatsapp Or via mail@ [e-mail] (he does not take upfront payment) if you need help Hacking your PayPal, To fix your credit card, To fix your credit score, Western Union hack, To hack into your cheating husband phone, Bank account, PayPal, Instagram verification, facebook and many more.. His fast and reliable............

[@oldskoolmusicnostalgia]

In real life you also have awful landlords who couldn't care less about the state of the house and won't life a finger to have it repaired. They probably do not live there, after all.

[@Pure.Motivation.YouTube]

or just get a new build with a guarantee... lol

[@ValCelin]

One point is missing: rent in Toronto nearly doubled in the last 25 years. It doesn’t increase at the rate of inflation

[@MsBlonde0000]

Because children of baby boomers are buying. Wait till they are ready to retire and downsize.

[@fightttttt]

@@MsBlonde0000 actually its because everyone needs to live and we arent born with good credit, so landlord gouge us

[@andrew_koala2974]

Val Celin I have NEWS for you. It wasn't the LAST 25 years ... The next 25 years will see a doubling every 8 years over that period. Had it been the LAST 25 years as you imagined then the crisis would be over. You have to learn what the word LAST means in the English language. In my language LAST means LAST ... There BEING no more to follow. When there is more to follow it CANNOT BE LAST. Get the point!

[@bromine35]

Do the math. 2.5% over 25 years is about double.

[@jackpalmer6253]

@@bromine35 Exactly. I find everyone that's nuts about real estate is financially and mathematically illiterate

[@miggu]

I find that a lot of house owners especially those owning multiple property (mostly for rent) advise you to go down the rental route .... weird huh? 🤔

[@qntainmnt]

its a trick that the rich elite doesnt want you to know about.

[@thanhvinhnguyento7069]

first rule of real estate don't turn your customers into competitors. Do the opposite

[@gameragedad8953]

Well one thing that being a renter most people don't consider is you pay a cost for peace of mind. In a good apartment complex that has well scheduled maintenance and on call repair guys, there's not a lot to worry about. If you own your own home, or you rent to others you have to deal with all the bullshit that comes with that. If your appliances break, you have to replace them. If your pipes crack and start leaking into your ceiling, you have to fix them and then redo your ceiling from the water damage. If your tent is an asshole and claims it's unsafe to live there, that there is mold, and mice and they try to sue you for it, you have to go to court to take care of it. These are all experiences that have happened to me personally or close family members. Idealistically, yes home ownership is the smarter financial option over time on paper mathematically. However, just as the creator of this video said there are a lot of variables to consider. How many people do you know ever lived an idealistic life where they didn't get divorced and have to sell their home? What about a house fire burning all your assets (insurance doesn't do a very good job at covering all your costs, again this happened to one of my relatives). I have one relative that has lived in about 8 houses in his adult life eating those closing costs just like the man in the video said. People often lose their jobs and have to move somewhere else just to keep a living. So my point is, at least with renting you don't have to deal with any worries about leaving things behind and moving on to the next place and you don't have to worry about having costs to fix something if it breaks.

[@miggu]

@@gameragedad8953 it also depends what generation you had to live , my parents did the right thing in buying a house , cause it was achievable for most sectors of society (with a bit of effort of course) , nowadays it has become an endeavour that only a few can afford. A 30 year mortgage has sadly become common place, leaving people in their mid-thirties with debt until they are almost 70. This has become one of the least spoken injustices of our lifetime. I already know that I will never own a house out of my own volition cause I don't want to be in debt almost until I die.

[@gameragedad8953]

@@miggu My mom will be paying her mortgage till the day she dies unfortunately.

[@vinish542]

You forgot about curveballs. Roger and Owens neighborhood gets gentrified!! Roger can no longer afford $5000 a month in rent once all the Californians moved to his neighborhood, and now Owen owns a $2 million asset

[@donutsrock]

Other way around: Andy Dick moves into the neighbourhood, so house prices plummet! Roger swiftly and easily F's off and Owen is crying into a pillow in his house worth two nickels and a candy bar.

[@pauleverett4544]

Vinish maintenance is also a huge factor here. Owen's foundation buckles and he needs 100k in repairs. This may be extreme, but stuff breaks all the time and the LL has to fix it. Free for Roger, Owen's kids get peanuts in their stockings.

[@acester8631]

You forgot the part where the housing market crashes now Owen owes more than the house is worth and in the recession that the crash causes they both loose their jobs, Roger takes his $35K and moves to a city that isn't hit as hard and finds a job with comparable pay to his last job. Owen looses his house leaving him broke, jobless and homeless. this of course isn't just hypothetical it happened to thousands of people in the US in 2008, and renting held a much better outcome for people, because those that got laid off weren't tied down to a local market by a giant immovable investment.

[@vinish542]

paul everett home owners insurance

[@vinish542]

acester86 or he could just wait foe another 5-8 years after the recession ended and since so many homes are so cheap thousands of people are buying them up which drives the market through the roof. Unless you’re Detroit and value shit homes in shit neighborhoods way over their true values so when a woman who works part time at Wendy’s buys a $2000 home she is charged $4000 a year in property tax and the home just gets foreclosed again and the market doesn’t have the chance to get revitalized.

[@_Chris_D_3004]

You don't "own" your "house" until you've paid your mortgage off when your 60. The bank owns your soul

[@dmc51194]

Toe Clipper 💯💯💯💯💯💯

[@TheCarnivoreSoprano]

Toe Clipper the bank owns my shoe? Lol sole

[@msmissy3654]

Toe Clipper thank you

[@_Chris_D_3004]

SuperPhdiva Soul*

[@LOUDsigh]

Toe Clipper&even then u dnt own the land the house sits on

[@andrewrossi1555]

In what world are you renting a $500,000 house for $2,100?

[@casparandechs4758]

A lot of different places.

[@TheParkingLotGarage]

@@casparandechs4758 pretty much anywhere in the western US besides California.

[@Rammz911]

Downtown Los Angeles.... I live in a $600,000~ studio with a 2,500 rent

[@ghty102]

Seattle, Vancouver, Bay Area. Currently renting a 1.3M 2br/2ba 20th floor high rise apartment (in September 2020) for 3.2k/mo in Seattle. It's super nice, but I have a roommate and could never afford to buy here.

[@IceManLikeGervin]

In Alberta, Manitoba, Newfoundland, Nova Scotia...Canada

[@nonamedrumguy1049]

We may all be missing this man's uncanny ability to write in perfect Comic Sans on a plaster wall!

[@pearlgrover1317]

He's not writing it bro! Why you confuse me

[@awsome4564]

@@pearlgrover1317 I think it’s a joke but maybe I’m crazy

[@elainedeardorff9242]

Where can you rent a house for $2100 while the mortgage on the house next door is over 3k? Assuming they are the same? That doesn't make sense. Rent is more costly than a mortgage other wise why would you rent it?

[@GazzaDazzle]

Funny, I pay $130 per week for mine, although I am flatshare with a few people.

[@KaliAndy2]

Places where property values are high. For example when I lived in tahoe part time 500-600k house rent was $1700. Mortgage + property tax + bills more than double rent. Other house we tried to get right on the lake was $3,200. It sold for 1.4M few years later... Go to SF and most houses in million+ $ range. People think $4-5k a month rent is ridiculous but it doesn't cover mortgage + property taxes. Property values in those areas generally outpace other areas. People that bought 800k houses in SF few years ago are now looking at 1/2 million gains. Other side of spectrum you can buy a 100k house in IN, TN or some place like it and get way more in rent than your mortgage but your property values won't help you much.

[@JakeTiesler]

Los Angeles ... rent a 1M house for $4000 or a $400,000 - $600,000 condo for $2,000-$3,000

[@b.eduardo5105]

Not everyone has a mortgage

[@taxol2]

Where I live, renting a luxury home is actually a lot cheaper than buying (paying mortgage). That is not even including maintenance cost and property tax.

[@almoemason]

How many people have rented a house that the rent stays the same for 25 years?

[@colinpenney4212]

Almoe Mason that’s what the adjusted for inflation net worth accounts for.

[@mulliganstew72]

Almoe Mason NYC I have Friends in rent controlled buildings that’s dirt cheap and they’ve been there forever.

[@almoemason]

@@mulliganstew72 Point taken. Why do NYC property owners let the city tell them how much they can charge for rent.? Just sheep.

[@matthewwells1606]

Exactly. Rent goes up much faster than inflation. Just look at the Bay Area.

[@merritt2014]

And even more relevant, how the hell is a 2k a month apartment even slightly comparable to a 500k house? For 2k a month rental, we're talking like a $250k property, not a 500k one lol.

[@markconley9279]

Most people the choose the rental option won't contribute to a portfolio.

[@Hakken1]

Mark Conley Haha. My thought too!

[@Arrica101]

That is irrelevant whether they would or wouldnt. The option is there and thus must be considered

[@GravitySpec]

The other problem is, most people who take up renting are generally in that position because they can't afford to purchase a house. In that case, they certainly wouldn't have the disposable income to do heavy investing. If they wanted to make this explanation more balanced they should've added a "Sally/Sam the Spender" to the lineup of what-ifs, then they could've had a better teaching lesson for the majority of people watching that could more closely relate to it. The number of comments I've seen where it was stated that they "stopped watching" (myself included) is evidence that the content is hardly relatable and, in that regard, a failure.

[@ChrisWMF]

GravitySpec I agree.

[@theodorep9569]

ewan andrew the video is full of stupid options to consider, what if this what if that. What if I could have my 8 minutes back...

[@AcoustiClub]

25 years is just a Break Even Point for the two. What happen next, i believe Owen had an advantage. He can keep full amount of his former monthly payment, plus a peace of mind.

[@nobigdeal4me]

At that point there would definitely have been several major renovations needed on the house, so it's not that clear cut.

[@Vaclav]

Average home ownership timeframe is below 25 years. Their figure is DRASTICALLY higher than typical ownership: THREE TIMES ABOVE the average (8y) and TWO times above the median. (13y) [And that's actually far higher than a decade ago]

[@masta1866]

@@nobigdeal4me numbers are not accurate. Owen could have get it wayy cheaper if he was good at negociating. Big + if you have a real estate compagny, you can use depreciation to pay no taxes which is a major difference between both of them

[@willceurvels]

@@vicolin86 I don't think Vancouver is a "typical" model for growth given how explosive the real estate market has been there with infusion of money from Asia.

[@Vasileva85]

I worked every extra hour of overtime offered to me for 20yrs, bought my house in cash at 35. I have no mortgage. My main fear of renting came with retirement, you can’t retire comfortably as a renter. Owning my house significantly lowers my monthly cost and I can put that difference into my employer matched 401k, I know that I’ll be worry-free when I can retire. Edit: I never plan on selling and moving. I deliberately bought a property in the remote woodland.

[@kabanchan5768]

all i hear is tax tax tax tax ...

[@blindedby2monkeys]

@xrcrx ftfghjg since trump took office, "defense" speding went up by 200 billion! where is that coming from? TAXES TAXES TAXES!

[@Arminoo]

Welcome to Canada my friend

[@srik7536]

You want all for free.Go to Mars.

[@kabanchan5768]

@@srik7536 THAT COST ALLOT OF MONEYYYYYYYYYY

[@BigMisterApple]

@@srik7536 I emplore you to contemplate how twisted your worldview is. The land is claimed but nobody actually has the 'right' to claim and hold anything, its all highly relative. The only reason you can't claim a piece of land is because a few years back someone else beat you to it and then decided that nobody should be able to claim anything anymore, because damn, that would mean their tactics would and could be used against them. The land is free, my friend, and you should feel free to build and prosper anywhere if you're not bothering anyone or destroying anything.

[@udayaai]

1. Watch this video 2. Buy a gaming laptop 3. Download Origin and purchase Sims all edition ($1000) 4. Build your dream house 5. Anxiety free, freedom, retire early

[@brienbloomfield9420]

Arsene Wenger 6. Stay a virgin

[@whocares110]

I did this, I can totally vouch that it works 100%

[@irvinempacgroup7088]

Also, lastly, in real life,you need sliders on the analysis. Your answer is very different if the rent is $2,300 vs. $2,100. Also, your mortgage rate, the amount of downpayment, and your credit has a huge impact on your interest rate, which in turn has an incredible impact on your return.

[@lacrazy17]

IrvineMPAc Group and the fact that there is no way someone is renting the same house for $2100. The rent has been absolutely lowballed. Rent is typically the same as what someone who owns would pay per month. And that means this whole video is crap because the renter has an end result of renting for 25 years with next to nothing to show for it.

[@crappytourguide226]

The renter could win in the long run if he is smart with his money and doesn’t blow it on coke every weekend

[@Tommylee1242ATGMAILDOTcom]

Contact [phone] on whatsapp Or via mail@ [e-mail] (he does not take upfront payment) if you need help Hacking your PayPal, To fix your credit card, To fix your credit score, Western Union hack, To hack into your cheating husband phone, Bank account, PayPal, Instagram verification, facebook and many more.. His fast and reliable............

[@hhiippiittyy]

Good luck finding better returns than the housing market.

[@crappytourguide226]

hhiippiittyy already have several 🤭

[@crappytourguide226]

@@australia5766 if they save their money under the mattress, for sure the house will be worth more in 25 years. But many assets don’t need 25 years to outperform investing in a house 🤫

[@crappytourguide226]

@@australia5766 never mentioned anything about saving $ in bank accounts in any of my previous comments lol 😂 . Point is, It’s not the 1970s, so many better investment avenues out there today than real estate.

[@michaelgilbert8373]

Major flaw. Renters are subject to increases in rent. After 10 years. And a mortgage doesn’t cost 1000 more than rent. This is deceptive at best

[@rachelsnow8448]

Although if Roger remains in the property, his rent is only subject to the fixed rental increase (atleast in Ontario). So if his ladlord does increase his rent yearly (some landlords don't if it's a private lease and they like their tenant) you can only expect an increase of 1.8% per year.

[@chazlyle41]

Yes and there’s way more expenses not mentioned with owning such as a new roof, the time and money to maintain, updating appliances, yard keeping, fixing that old pipe... and the countless hours spent doing it yourself (or paying exorbitant amounts for someone else to do it and losing a little self-respect) haha. So it’s pretty even up really.

[@sr5toyo]

wrong on so many different ways...

[@Showmetheevidence-]

What about house maintenance costs then? This comparison is fairly decent. And nowhere does it claim to be exact. It’s proving the principle that renting could be a good option. Don’t forget you might buy into an area that goes down after 10years - the what? Renters can move quickly. Owners can’t.

[@sr5toyo]

D.B. buying a house is always the best option because u built your asset, net worth and value in your life..

[@workingshlub8861]

say your approved for a 500k house..buy a 250-300k house.. put 20% down and pay it off fast. people usually buy at there max price and that is the mistake...you can take what you would have spent and invest elsewhere in stocks etc.. buying is the way to go..especially investment properties.

[@smokinjoe4709]

I would suggest moving away from a place like that. 350K where I live will buy a gigantic house.

[@kylemma33]

+Smokin' Joe Yeah I had a friend from California come to my property in Alabama and she couldn't believe the size of the house and property. She thought the house was worth like 3.5 - 4 million and I told her my grandpa built it for 750,000$. She told me a house like that would cost millions in LA, she had never been on a big property in the woods before.

[@glennmerlini2895]

ask yourself what was rent in your area 30 years ago,,,what is it now,,,so glad i bought a house years ago

[@vitaminb4869]

And also ask what were the houses costing 30 years ago and now ))))))

[@jarrodgodfrey6321]

Investing make up the top notch hemisphere of the wealth. That's the more reason one should save and invest to secure profit and ensure success

[@denzelnicholson5423]

You’re right investing now should be at the top of every wise individuals list because in few years you'll be ecstatic with the decision you made now

[@krownscryptocave1809]

True💯

[@blindtobillionaire1115]

Nowadays its hard to find what to invest if not a huge money on real estate lol

[@coldfusiionassistant270]

For me Investments like stock and forex has become very profitable and very good options in securing a better financial life that's where I belong and survive from

[@penelopehayek2260]

@@coldfusiionassistant270 Exactly Many top dogs out there do it, i mean that’s why they are at the “TOP”. I really feel everyone looking to get some financial security should make forex and bitcoin investments.

[@lix88440000]

I think this guy is trying to say that if you can rent a house PAYING LESS and investing wisely the rest of the money, it can be even better than buying a house. Let's say this had happened years ago and the renter decided to invest into unknown companies like Microsoft, Apple, Google or even had 1k USD and bought Bitcoin in 2012... Or since he was renting, he could just move out in case a better opportunity appears. All this vastly depends on so many things that is not a simple equation that will define which is better. Because let's be real, if a random guy rents a place and decides to invest his money, chances are that he will end up being scammed or having a bad investment. While the owner, choosing a safer route, probably will have a more linear and safe life. Or he could marry, buy a house, having kids and divorcing... In this case, probably would be better if he had rented a place and dated prostitutes and he would still had more money. The true answer is: it fucking depends.

[@BlunderCity]

_"chances are that he will end up being scammed or having a bad investment."_ I don't think you understand stock investments. You don't get "scammed". The way most people invest in stocks is either buying a tracker (it just tracks the performance of say the S&P 500) or getting getting a fund manager to pick the stock for you. Only people who already have these types of stock investments pick their own stocks. _"While the owner, choosing a safer route, probably will have a more linear and safe life"_ This is also super wrong. Buying your own home is the most rigid decision you can possibly make. The following situation is a classic: There's a recession every decade on average. What if you lose your job? What if you need to move elsewhere to find work? And what if home prices are depressed in your area because of the recession? What can end up happening is you sell your house and move to an area where prices are less depressed (because the job situation is better). But you have no guarantee to be able to buy a house there. Recessions generally make banks tighten their lending standards. You may have accepted a pay cut in your new jobs. I'm guessing that you're fairly young but there are a whole bunch of scenarios that can derail your plan of you are buying. Renting on the other hand gives you far more flexibility.

[@lix88440000]

BlunderCity what? You disagree about odds of being scammed? Have you ever heard of that film called Wolf of Wall Street? Or ever heard about the countless ICO scams on cryptocurrency market? Man... Scam everywhere you look. Also, like you said, buying a house is indeed a very solid decision someone can make. Hardly it will be a bad idea... Unless it turns out to be a bad idea and then it will be indeed a bad idea for real. Marry, buy a house close to the wife's parents and then divorce few years later... And always depends where the house is in. If is in a bad place where you can't sell it in years, then already make it way more complicated to decide to buy a house... And so on

[@ayyasamynataraj6406]

Yes. It really depends. There is no definite answer for this topic

[@BlunderCity]

@8xiL _"Have you ever heard of that film called Wolf of Wall Street?"_ That was not a firm. It's the name of a Hollywood film. You're serious with this? _"Or ever heard about the countless ICO scams on cryptocurrency market?"_ Those aren't stock investment. _" Man... Scam everywhere you look."_ You seem to know nothing about investments. 99.9% of stock investments are made through perfectly legit channels like your bank or an index fund. For the latter, the most popular vehicle, there isn't even a debate about the size of your profit/loss, it's proportional to the performance of the index. You serious need to educated yourself... with books, not Hollywood films.

[@ausaskar]

lol you put your savings into stocks and you're just a schmuck being milked by the big dogs. After 2008 no one should have any confidence in that digital make-believe ponzi scheme.

[@CARTUNE.]

What I got from this is Canadians are pretty stupid buying a 500k home when you make 35.

[@astibusgaming3649]

We have no choice. That's the problem. And people rarely make 35k. Who are those people? The only people who I know that make over 35k are office workers, government employees and criminals. The rest of us make less than 25.

[@astibusgaming3649]

​@dn8rofficial No, actually, the only people who make 35k per year or over are like I said, office workers, government employees and criminals. The rest of us make minimum wage or a few dollars above it. And that's no guarantee of a full time job either. We all have 3 diplomas each in my family but two of us make less than 35k per year. I've never made more than 25k per year. Work experience, tenure and education factor NOTHING into the equation. This is why I said there's always some obstacles, crosses, brackets or quotation marks in terms of getting to that place. Most employers would rather fire you than negotiate with you, because most employers in Canada are not about making money and practical decisions but about power tripping. This is why we are never able to economically beat the US despite having enormous advantages. At least in my experience that's always the case. They try to buy you at 5-6x below market value and it usually works, because they know the doctor or engineer or lawyer is going to work at McDonalds over ending up on the street or in prison. In the end all Canadian employers are is extortionists who get away with a criminal charge that would otherwise net you 4 years mandatory minimum in prison. It's interesting how our criminal code conveniently doesn't list "labor" as a medium of exchange like currency, so it could make it easier to prosecute extortionists, be they employers, landlords, criminals, or the government.

[@astibusgaming3649]

​@dn8rofficial A courier as in Canada Post? Even though Canada Post is a government job and they make around 55k a year, they work the living crap out of you. Their employees are expected to deliver mail and packages in all kinds of weather, walking 20-30 km per day while carrying a 15-20 kg bag full of these envelopes and packages. So in essence the money might be appealing, but they make sure they rub your nose in it multiple times over. Plus that's a government job, like I said. Even hydro is a government job. But I think you mean courier as in Uber Eats or those guys on Kijiji with a pickup truck or van who charge a lot less than truckers and Fedex or UPS. I know, but you need to make money in order to spent money. What happens when you can't afford a van or a pickup truck? Plus there are so many people with pickup trucks that I feel like if everyone started doing courier and delivery services for extra money on the side that I'll be out of a job pretty quickly. I do have a van that was recently put over on my name that was meant as a company vehicle that I would eventually put on somebody else's name if I decided to quit. The problem is the company doesn't pay my insurance on time, the temporary sticker has expired twice now and I can't afford to fix it myself. So even if I have a van, and can be a courier, I legally can't because I have to spend at least 1 grand to fix it up and make it legit and even register a company so I can pay taxes on it. So to compensate for lack of insurance payments and getting paid on time for the hours I've worked I need to sell the van. And this is the furthest I've gotten in a company, because it was my friend's company, but he wasn't making enough money and wasn't serious. So even WITH connections I still ended up getting screwed. And then an employer tends to overlook all of these circumstances and say "well it's impossible that every employer you've worked for is bad something must be wrong with you". No, that's not the case at all. It's actually the employer who screwed something up and I ended up without a job or hours. As far as hydro goes, what exactly do you do at hydro? Who goes to work at hydro? As far as I know, it's people who connections that work at hydro. I can personally never do trades. There's a reason I have like 30 different skills listed out, from intelligence analysis and research to psychology, philosophy, economics, legal and other skills. I can do all these things and have done all these things, both for myself and while at work. So why don't I get compensated for it properly? I'm not blaming people who have kids and bills to pay but it's these people that the employers tend to extort that collectively add to every employer's willingness to extort, where those like me who would rather negotiate are side tracked. And I would rather not negotiate either, I'm not the type to force the employer into paying me something. I only want to negotiate what's fair. I'd rather not expend that energy, but it's gotten to the point where negotiation is not an option. At least in the US I've heard of people getting hundred thousand dollar sign on bonuses where in Canada they were used by interviewers to get knowledge out of them, and then decided to send an invoice and take the employer to small claims court over a "consultancy bill" because they felt so offended, used and their time and money wasted. Minimum wage jobs are the easiest to get, but even they take weeks for an average company. So imagine months for an entry level office job. But somehow people have to survive in the meantime right? I realize alot of people take the time to passively seek work while working but if you're working a 9-5 job, you'll never have time for the interview, if they ask you if you're already working you can either lie and say no and that could be cause for dismissal in the future or you could say yes and they'll think you might do the same to them in the future because they know you've probably haven't told your employer you are looking for another job(because they'll use that as leverage to try and fire you and thus prevent you from seeking employment elsewhere). So either way it's a catch 22. And I've noticed in Canada everything revolves around the housing market. It's one of the main reasons why prices get inflated. Everybody needs to pay their mortgage so even business owners are constantly inflating the prices of their products in order to make enough to make ends meet. It's ridiculous, because it only takes around $1500 and a phone call to a plane agency and your passport to get on a plane and get a ticket to the furthest end of the planet where the house price is only 1/10 of the price of what it is in Canada. I don't know why for many Canadians this seems to be in a different time, place or reality, all you need to do is walk across a border to see prices drop, people being different, etc. Why not take your money and go live there? Why invest in a future that isn't so sure anyways? It's not like I feel anything out of expending money I make here into our local economy. If anything, I feel only further stuck as I become poorer and get into more debt in order to be able to afford subsidizing this local economy which in the end in a big move decides to open up trade to a place like China or Bangladesh or Vietnam and all the money gets funneled there anyways, without anybody coming to ask me if I wanted all the money I invested in Canada to be funneled there. So ultimately this is why I say many things are out of our control, and I've based my whole business strategy around not being stuck in this traditional Canadian model of "work" and "mortgage" and just being a slave. I don't know how many people fall for it, either that or they have no choice, or they actually think it's a good idea. But that's just my experience. I also live in Burlington, one of the most expensive suburbs of Toronto.

[@astibusgaming3649]

@dn8rofficial If it's very demanding then it's not worth 35k. Because to the employer it might be paying 1.5x the minimum wage but most people can't sustain it long term. Of course this is only a short term solution for the employer, he doesn't care if you become a cripple after 5 years as long as he doesn't have to pay you double. If say it's not just driving around, but instead a lot of walking and lifting objects, then why not apply for something that is worth it, like construction, where he can make a lot more money for that effort? I personally can't do either. I have a shit stain on my driving record right now and I screwed up my back a few years ago working physical jobs. Plus I personally cannot stand physical jobs. Loud machines, constant physical straining, lifting heavy objects, with people yelling over each other to be able to hear each other, or in some dirty environment like construction or factory work, it just reminds me of slavery. Some people enjoy it because they think it's an easy job since you don't have a lot of responsibility and don't have to do a lot of thinking. Employers tend to valuate repetitive, largely physical jobs, where you don't have to think or talk to anybody, very low, and people get the notion that these jobs should be paid low. In actuality I'd rather think and have responsibility and manage people or talk to customers than work a repetitive physical job, which to me is reminiscent of what it's like to be in hell. Now I understand why when I used to make jokes about these jobs being like hell to my colleagues they used to give me a blank look, because they actually enjoyed sorting cucumbers or spinach or loading boxes onto a truck or standing there for 12 hours and putting handles on large plastic jugs.

[@astibusgaming3649]

@dn8rofficial What the hell? Where did this come from all of a sudden? I wasn't suggesting he should quit his job if he likes working physical jobs for low wages. You can be an indentured servant if you want it's none of my business. Why do you defend paying low wages for physical jobs anyways? What would be so wrong to pay them more?

[@andrewfreeman88]

Bought a house + guest unit in 2009 for $285K lived in the guest unit and fixed up and rent the main house. In 2013, I moved to the main house and rented the guest unit. Made about 80K in rent and put about 80k in fixing it up, no loss. Put it up for sale this month Nov, 2017 Sold for $820K Cash, no appraisals in just 14 days. Don't believe this shit, it's all about location & hard work.

[@skeezix8156]

Andrew Debasque you were in the same boat I’m in, I have had developers banging on the door for two years now I just don’t want to sell. Being able to do a lot of the improvements and maintenance yourself goes a long way.

[@ChristopherInTexas]

Let's see where you will be in 17 years if you do not sell.

[@andrewfreeman88]

+ Aristotle Stagirus That's the way to do it. Now, I live in a very nice 3bed unit in Santa Monica near the beach which rose 40% since I bought it. That said, the MOST important thing to remember is don't listen to the noise like the comments from above, like "you just rode a bubble" and "what if you waited 17 years" LOL knuckleheads. It's nonsense, from people that don't know what it's really like to put all you money, sweat and tears into a property and build equity and know the right time to sell.

[@andrewfreeman88]

North East LA, the hottest section right now.

[@L4verdz]

Have you factor your labor ? Also, 2009 to 2017 portfolio fund would've netted you at LEAST 10+% each year. All in all, it is a wash at best.

[@philipagtuca5486]

During the coronavirus crisis, they both lost their jobs. Roger was doing fine with close to half a million in investments so he never have to move out. Owen couldn't pay the mortgage. The bank repossessed his house and ended up with nothing.

[@its.usssjp]

😂😂😂😂

[@jorgemojica4026]

Absolutely right....how many families already lost there homes since COVID started

[@SenorNavel]

@@jorgemojica4026 depends where you live in the world. Australian's had it pretty good and didn't really lose anything. All you had to do was talk with the bank and they understood. The government gave everyone who lost their jobs $1500 a fortnight for almost 10 months to help. Very rarely did anyone lose their house lol.

[@NoName-zi9qs]

Roger invested in the airline industry and travel agencies.

[@walkermorales337]

The government gave mortgage forbearance to people they don’t have to make any payments for up to like 15 months. The current proposed bailouts for homeowners could also extend the loan term by up to 40 years meaning they can reduce their mortgage payments by up to half decreasing their DTI potentially allowing them to buy a new home and rent out their first one and get a bunch more tax benefits.

[@danieldomaschenz]

Aren't you better off just buying a house outright with cash? Either that or live out of a backpack and party bus...

[@luiscasillas9853]

Daniel Doma ID rather live off a backpack and party bus than be in debt the rest of my life.

[@AlazzM1]

Daniel Doma yeah you are better of buying a house outright In cash.. but who can pull out 150k for a house in 10 mins?

[@dougking1878]

Alaz M94 I can..no problem. I bought my home outright in 2002. Now it's value has increased 3x . I just pay property tax and home insurance. My income is 200 plus so I save alot. And I've always lived below my income. I've been fortunate and I admit detached from the trials many go through

[@SophiepTran]

Not necessarily, because you then loose the income opportunity from that extra cash. It's about managing cashflow rather than an immediate ROI. If you buy a 200k house outright you'll be out 200k instead of buying for 30k and leveraging the other 170k as you generate income from other means (job etc...) You can do a lot with the 170k in hand instead of having it tied up in a nonliquid asset, like the house and only generating a few thousand/month in income. For example, buy the house for 30k with a 170k mortgage, use the other 170k cash to start up a side business of your choosing in addition to your job. You now have 3 streams of income generation. The job, the business and the equity in the house. jY

[@dannystephenson4197]

Rent a small studio and become a millionaire, if single.

[@haveanawesomeday4059]

Or learn tools to earn 10x more ;)

[@eternalexperience2489]

@@haveanawesomeday4059 like?

[@cinderea]

Buy a big house and rent all the rooms and leave for free is a way better option. When it’s paid off you can meep renting it and make money 💰

[@exoxy]

@@JB-uk7mn always gotta be a brain dead persecution-complex loser lurking around like JB

[@seanmaxwell5231]

@@abcdefghijklmnopqrstuvwxyz4839 So does my wife!

[@haarnoz]

May I point out, after 25 years, both Owen and Roger wil stilll need a place to live. If Owen doesn't sell his house, his only living expenses will be property tax and insurance. Owen's mortgage will be paid off. Owen will have reduced cost of living for the rest of his life, which might be another 25 - 30 years which is excellent because after retirement, there is reduced income. If an emergency comes up, Owen can use the equity in his home for a loan. After retirement, Owen has an option to sell his owned home (which likely has greatly increased in value) and buy a less expensive home in a less expensive smaller city and live on the money he has profited as well as being mortgage/rent free. Roger's rent will never go away and it's most likely that Roger's rent will be much larger: rent ALWAYS goes UP! Rent and the cost of living always increases.

[@redsampler2017]

THANK YOU!!!. finally someone gets it. roger isn,t done after 25 years, roger still has rent to pay. where as owen can spend the money he normally paid as mortgage on whatever investment or retirement plan he wants. +he has a house as backup where as roger has exactly shit. renting is throwing money away, people still don,t see that its mindboggling. everytime you pay rent its money that you will never ever see back in any shape or form.

[@haarnoz]

aztekkthundergod When you say "100% absolutely false" do you mean that because your rent hasn't gone up in 10 years, no one else's rent has gone up?

[@daveinjapan]

My rent in a nice rental condo has also never increased in 10 years. It's important to have that clause added to the original contract. As long as I stay here my monthly rent will never increase. That being said I know my rent is substantially lower than that of people who move into the condo now.

[@haarnoz]

Dave B. Wowas!! Congratulations Dave! I've never heard of a clause like that on a renters/leasing contract. Did you request that, or was it there when the contract was presented to you?

[@damianbisignano1537]

You're missing the point roger has a million dollars too. roger can buy a house now if he wants and have no/minimal mortgage and he's not behind what he would have been had he purchased 25 years ago.

[@Reza19691348]

The owner better sign a prenuptial agreement before getting married

[@manumaster1990]

Just not get married at all...

[@isthisoneunavailable]

@@manumaster1990 Or don't get married for stupid reasons.

[@millerforester3184]

Based on a lifetime of experience, unless you are a home renovator/flipper, or really lucky, a home is a money-pit and a sitting target for the TAX MAN. Rent! If you don't like your apartment, or it becomes too expensive, just move.

[@michaelanderson2881]

Exactly. Because the owner of the house you're living doesn't have to pay the TAX MAN and therefore your rent doesn't include what the owner pays in taxes every month.

[@walkermorales337]

While paying it off you get tax benefits, and once it’s payed off you can buy another and rent the original which gives you even more tax benefits and if done right the rent income will be untaxed.

[@workendog]

Did I miss the part where rent goes up every year?

[@charlienonya7016]

They cover inflation every year. If you paid attention in class. :P

[@simplytierresistable]

@blaquehart b No it doesn't. He adjusted for inflation for both. The inflation would have included the increased rent. Plus, he assumed the rent would go up. He mentioned that during the beginning calculations.

[@msbeautyboss3784]

Now all rent will go up. I live in the same duplex for years and the rent is the same (private landlord).

[@pawsnotclaws2772]

red racer not mine. They’ve only raised mine once then they said they’ll never raise it again

[@Anamnesis]

Inflation may be factored into the scenario, but rents in high demand areas increase faster than the rate of inflation.

[@crazycarl00]

Plot twist: even after you've stopped borrowing money, you're still just borrowing the land from the governments. Try not paying property tax in America and see how long your asset remains your asset. There are a whole lot of what-ifs that will negatively or positively impact the sale price of a house after 25 years. This is a rather fruitless effort. Just do what seems best for your lifestyle.

[@donaldduck830]

Yeah, I thought when he mentioned the tax on investments that the rich people have offshore holdings like in Panama and dont pay that... thats how some of them got rich in the first place. And considering the volatile situations in many places like Europe, South America, etc.(and even the US of A are not that stable anymore, and Canada is turning more socialist, too, under Trudeau) having a nest egg outside the grasp of voracious socialist governments is a good thing indeed.

[@BuddyLee23]

Honest question: isn’t the taxes paid (at least in theory) in return for government services? It can be nice to have working roads, functioning emergency services, and a national defense. Isn’t that the exchange, or am I missing the point?

[@marlonyo]

Chris H if it was you could say you dont get the service so you dont pay the tax for it but you cant. So no you are not paying for services

[@writerpatrick]

Landlords will often factor property tax into the rental cost. So a renter may wind up paying at least some of the property tax. The model also assumes that both men never marry or have kids.

[@mozinoz_digital]

Carl and yet there is no property tax on Stocks & Bonds.

[@cgi267]

Also at the end of 25 years the owner actually has a home. The renter might have money but nothing he can buy at market value because the houses are now over 1 million.

[@brianhill8976]

The renter has $950,000. He can buy a house similar to Owen's. (under the original set of assumptions)

[@Aymcana]

@@brianhill8976 the renter wont have $950,000 because he wouldn’t be able to save as much, because the rent is not fixed at 2,100 but increases every year

[@IzzyTaps]

@@Aymcana Yeah but they didn’t mention renovating, maintenance, … If you live in a house of $500 000 you wil at least spend 50 grand on that house.

[@Aymcana]

@@IzzyTaps 50,000$ on what man? I have been living in a house for 20 years and all we spent is new roof + painting (10,000$) and new AC unit (3,000$). Thats it. What u need 50,000$ for ??

[@IzzyTaps]

@@Aymcana You never know what the next 5 years brings you. But that was an estimate. And small things add up, I’m 100% sure those aren’t your only cost.

[@BobMcCoy]

*I got some extra Cardboard boxes - anyone need one?*

[@TheCarnivoreSoprano]

Bob McCoy send me one. Not spending 500k tho

[@screamtoasigh9984]

Why, are you locked in a Postmodern art exhibit?

[@5thcrusader424]

Shigeru Miamoto: I need you're help fam

[@kenaddoh4693]

The assumption is that renters use their disposable income to invest. I don’t know many renters who are investing that much of their disposable income. Buying a house in a good location is a great long term investment.

[@TheButterMinecart1]

Most people who rent barely have any disposable income to speak of.

[@peterbelanger4094]

@@TheButterMinecart1 Most of the time when someone is renting, they are living check to check and "disposable income" is only a myth to them. To them, "investing" is only a luxury granted to the wealthy property owners. Any of the wealthy, investing renters are just poisoning the rental market with their ability to pay higher rents, they price out people have no choice but to rent, and then there are more homeless on the street. Wealthy renters screw things up for poor renters.

[@ninetyminutestd]

Exactly. If you take the difference from rent to mortgage and invest it consistently and over time--you can come out ahead as a renter. But how many do this? I know I do and others interested in FIRE (financial independence, early retirement), do it too. But mainstream crowd? Probably not.

[@nufangld]

@@ninetyminutestd More importantly, rent rates are higher than mortgage rates so this whole concept is a lie. Renters can't get ahead like this unless they inherit a rental agreement from a parent in New York.

[@ninetyminutestd]

@@nufangld That's not always true. My rent for an apartment is lower than mortgage/HOA/insurance for a condo. And I didn't have to fork over 65K in a down payment. Situations vary, rent or buy at whatever evaluation is best for you.

[@jacquesnicolay9221]

Let's be honest, the only way owning a home or renting is not a liability in 2017 is if your home is a tent from Bass Pro located next to a creek where no one knows where you are.

[@TheCarnivoreSoprano]

Jacques Nicolay lol true

[@LordHav3Mercy111]

Jacques Nicolay ROFL

[@Janaale]

@@emadzaamout you're lost in translation buddy

[@jimmohbello3704]

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[@emmawelder3154]

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[@emmawelder3154]

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[@emmawelder3154]

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[@jamahmohammad5795]

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[@jamahmohammad5795]

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[@MrOperator1337]

I just spent way too much time reading uneducated comments about renting vs. buying.

[@glyphix42]

You can rent a 500k home for 2100/mo? From what I have seen rent is normally 0.8 to 1% of a homes value. Which would put rend for a $500k home around $4k per month. How do you come up with $2100?

[@orome9793]

Yeah $2100 seems really low to me.

[@clarencedavismba5042]

Ben Da and dude only paid $2.1k to move in? Who is his landlord? We've rented 20+ years and seldom seen such discount.

[@DescubreConYunis]

No security deposit for renter?

[@ugcamige]

Ben Da remember this video was done almost 3yrs ago before the prices were insane

[@glyphix42]

David I'm not sure exactly what you mean here? The video states a $500,000 house... Whether that's $500,000 today or $500,000 5 years ago they're still no way somebody sane would rent a $500,000 house for $2,100/mo. In any case I have welcomed the video creator to explain how they came up with the 2100/mo figure. I'd honestly be curious if they had any actual basis for that or if they just pulled that number out of their....

[@mjenkins65]

The whole video is flawed because where is Roger going to find a house to rent where the rent is less than the owner's costs? The assumption that it is cheaper to rent the same house than to own it is preposterous. Also the concept of Roger's rent only going up by the cost of inflation is flawed. If the house is in a popular neighborhood, the rent will likely increase faster than inflation because of supply and demand. The whole thing makes no sense.

[@johntak1187]

😆How stupid is this video. You didn't consider the mini hyperinflation & take into consideration of quantitive easing back in 2008 and prior & future. One of my properties bought in 2013 for $180,000 is now worth $2,100,000 currently. Rent has now gone gangbusters due to inflation & many other factors. So do the math.

[@futureprogrammer880]

you forgot Rodger the renters growth of his original 35k lol so he would be an additional 150k

[@itsme1232620]

future Programmer, he used that to pay for the upfront cost of the house

[@dannyboots3522]

Daniel Blake the renter did not buy a house?

[@joelw8780]

Absolutely, how is this missing?! I totally agree. Using an investment calculator I get $1,594,528 @5% and $2,046,891 @7%. Is this Canadian math? Don't forget all the items you have to purchase with a house like washing machines and dishwashers and lawn mowers. Those never last 25 yrs. Renter comes out way ahead.

[@randomvideosn0where]

Buy a reel lawn mower, those last far beyond 25 years.

[@chadhunts6202]

Not to mention a 5 year fixed rate at 3% would be closer to 8800 a month where are they getting 2100?

[@mikestanovich1414]

Owen bought his house at the top of the market, then the bubble burst. and now his $500K house is only worth $350K and no one wants to buy it. Owen loses his job and now has to sell his house at a loss to move to another city to work. The factory in Owen's city closes and now everyone is selling their homes since they cannot pay the mortgages.

[@kylelimeback]

lol he said in Toronto. Housing prices here doubled in the past decade...

[@johnnyhuffington]

It's irrelevant. He isnt looking to sell his house. This is about long term, not what happens when the markets fluctuate (which is all the time). You are talking like someone who doesnt even understand basic economics. And way to use an extreme example of Owen losing his job, as if the renter cant lose his job either and then live in a car for his entire life. It's supposed to be an apples and apples comparison, both people having the same life experiences, all things being equal. If Owen loses his job, so does the other guy. smh

[@kylesummers7478]

Kyle Limeback It did well in the US too. Until 2007. Things aren’t peaches and roses forever believe that.

[@kmlgraph]

I guess no one remembers the 2008 housing/financial crisis. People bought overpriced homes, lost their jobs, went bankrupt and had their homes re-possessed. It can and most likely will happen again (because we don't learn from the past). Check out the movie "The Big Short" to get a humorous and eye opening overview of what happened in '08.

[@directorbeau]

@@johnnyhuffington if they both lost their jobs one can easily move and the other can't.

[@CaliRepublic77]

This is a useless analysis. What really matters is WHEN the home was purchased and WHEN the home was sold.

[@vantalk2021]

And whether it had upgrades or the same crap that was in it 25 years ago, and whether there was a swamp in back or a new commercial district up the road, and whether there were any ghosts in the house.

[@dwightstjohn6927]

@@vantalk2021 and a crack shack across the street and a grow op by the day care centre.

[@DJVARAO]

And where. Go back in time to 1980 and buy a home in Detroit. Was it worth?

[@dennisjohnson1219]

@@vantalk2021 With Owen supposedly paying an insane amount of 500/m in maintenance, the improvements alone would double the value.

[@lt0181]

Morale of this story: if you can lock in a 500k house, capped at 2100 in rent for 30 years...You should do it.

[@tarquin161234]

4:45 "we assume his rent increases with inflation every year"

[@patt5085]

I moved country and doubled my salary a few years after graduated. 30 years is a huge gamble for opportunities elsewhere. Or selling them at loss and waste years of invest.

[@KevinBarnes]

@@tarquin161234 It's a bad assumption. Inflation does not include rent in its common basket and rent has gone up at a rate much higher than inflation since the 1970s. It's one of the core reasons that while people appear to be doing well wrt inflation when compared to the past, in practice they are not. It would have been a lot safer to use the same 3.5% rate that was used for housing price since rental rates historically track to that fairly well. The difference between 2% and 3.5% is a huge one. In the end this is an investment choice issue. If housing prices go up it's a huge win, if they fall it's a huge loss. The rest is noise.

[@imgabnun]

I actually bought a small cheap home and focused on paying it even dough I could have spent all my earnings on a bigger one. Finished paying it in 8 years, meanwhile keep earning for the mansion. Now my down payment on the mansion is bigger, this means a lower more affordable mortgage for the house I wanted 10 years ago. I have basically 2 properties, I'm renting the small one and living in the other one, rent on first helps me pay the second. Payed sort of a high rent on the first one, now it's mine and now I am paying a fare mortgage for the big one which is technically also mine. You just need to know how to play your hand to get the most out of it.

[@luiscasillas9853]

imgabnun no you just need to stay single and not get married or you wouldn't have anything of what you have. A wife will take away everything you have built everything and leave you with the oldest car you own the pairs of shoes you own the very little amount of money you stashed out of the bank and leave you with the only option left buying a camper like the guy from that show lethal weapon or moving into a mobile trailer home in a trailer camp and still paying her alimony. Chase money not women.

[@imgabnun]

luis casillas oh my (hehehe) sounds like you had a bad experience, I'm sorry to hear that. Not my case, I still wish you the best.

[@imgabnun]

Vivid X nop. Why there?

[@mutsuzawa]

Buy a home rent it out and let other people pay the mortgage.

[@drl5002]

Uhhh no, too many people pull that buying and renting multiple homes so that people who actually want to buy them to live in them don't have any available to buy and I won't even get started on flippers who jack the prices of house way up and make them unaffordable.

[@michaelbalfour3170]

@@drl5002 Yes its immoral but I am retiring at 40 soooo...

[@FinalFlash2110]

@@drl5002 You sound jealous.

[@michaelbalfour3170]

@@FinalFlash2110 no he is correct to show animosity as there is nothing moral about depriving the next generation of a safe and affordable home.

[@FinalFlash2110]

@@michaelbalfour3170 Save your money. Dont complain. Be happy you dont live near San Francisco.

[@djjones141]

5% deposit? You need almost 20% in Australia now.

[@zochbuppet448]

It says Globe and mail with a maple leaf? Does Australia have maple trees? If this might not even be relevant to other parts of of Canada or the U.S, why would it be relevant to Australia half way across the world?

[@janrobnik9897]

Get 3 credit cards and have dem paid off

[@saxywale2]

@@mr.fringe3256 its actually 5%

[@vantalk2021]

You should check again. Most people think they need 20% down. You only need 5%.

[@SenorTucano]

And you can forget about a 3% interest rate too

[@mickpalmer951]

You forgot to add in, Property tax, escrow Fees, and home insurance cost, compared to that of the renter. Renter does not have monthly escrow fees, property tax, or insurance on the value of the home. Considerable difference.

[@Hypercube9]

8 minutes of my life wasted.

[@stevenvanhulle7242]

Plus the 5 seconds it took you to read this comment!

[@geetjuhhisdebeste]

Plus another 10 seconds for this crap. Btw ... time is our BIGGEST ASSET in life. Don't waste it. No really, stop wasting it. STOP WASTING IT NOW !!!!!!! Click here to stop wasting: S T O P

[@jannedrumsit]

I'll just wait for the next coming great depression then buy a house

[@MeetMeViceVersa]

It's coming up right now.

[@aangelouReacts]

You mean this one we’re in buddy?

Good luck getting a mortage or keeping your job. By the time you are on your feet, the 10% house price drop will have gone due to foreign investors.

[@gunaletchu6071]

Covid brother is here

[@user-zo9fv1cq4v]

yea hun wait for 6 month wll buy together ...depression is coming big time with all these stupid leaders and global warming too

[@simplyme8593]

Anyone else having a headache after that? 🤯

[@krazeelety]

Not "after" .....like a few minutes into it already. 😂

[@simplyme8593]

@@vital4644_ true! It's scary 😧 Once they called me to convince me to get a credit card and because I didn't know how it works since I never had one, they found it very odd and they thought that I'm kidding 😬

[@simplyme8593]

@@krazeelety 🤯😅

[@johannbrummer6764]

Fundamental thinking error! Roger has to pay rent AND HAVE AN INVESTMENT PORTFOLIO to compete with Owen. So he must be putting in a LOT MORE to be on the same playing field

[@willceurvels]

Wasn't the idea that he was just putting in the difference in rent?

[@mushypork2132]

@@willceurvels yeah, he didn't get it.

[@austinb7566]

Lmao. And very few people are going to think in the form of "im not buying a 500k house...lets invest in a portfolio" Naw, they think "well damn, im traveling and eating pizza!"

[@littlegoobie]

Maybe i didn't hear it but they left out something critical. AFter that 25 years of being lived in, the house will need SERIOUS upgrades and renovations to be able to sell it otherwise it's your classic "fixer upper"

[@madjayhawk]

And the neighborhood will probably deteriorate along with your house and become less desirable.

[@jamie49868]

Where do you guys live? In St. Louis, the most desired places to live are those charming old neighborhoods and communities. The prices have sky rocketed in those areas as people are coming back to the city. I guarantee you that if you are buying a 500K house, that the neighborhood will not deteriorate.

[@littlegoobie]

depends. some people will be talking about the neighborhoods you're talking about. in the city and you actually get a front and back yard and a bit of space between houses. They're old on the outside only, and crazy nice extravagant on the inside which gnenerally puts it in the $750K range, but realistically, you'll be looking over $1Million to get a house that isn't a fixer upper in a normal toronto neighborhood that isn't run down or heading that way. That's why there is no such thing as a house for $500K in toronto anymore. (the location of this video's example)

[@nikkicole54321]

littlegoobie yes you definitely need to have money to upkeep the home as well.

[@Briguy1027]

They budgeted roughly 500/month on upkeep and whatnot. I'm sure a thrifty homeowner could save some money and use that for painting, new roof, carpeting, etc.

[@julienfloer7708]

The good answer is: it depend, both are valuable

[@Swagg3r3d]

I think the video misses on key point. The owner has an asset at the end of the mortgage and the renter does not. That asset can be rented out, used as collateral, or sold.

[@juliantheapostate8295]

Even the fact that at the end of the mortgage, the payments cease. Rent never ceases

[@fieryelf]

This scenario only looks at it on a period of 25 years during and at the end of the payments. The good part of it comes after you're done paying for the house. In this case, the guy who rents keeps renting until he dies while the owner gets to live in his house for free. That's when you start making profit.

[@redsampler2017]

exactly

[@redsampler2017]

yet he never has to keep renting till he dies neither... most people after the kids move out go live smaller, i know i would. nice appartment overlooking the ocean and/or a nice big RV. when you get older you tend to don,t care much about having lots of stuff anymore. just enough money to live of off. dying a rich corpse is about as useless as renting is.

[@redsampler2017]

living the dream dude... living the dream...

[@BlunderCity]

@fieryelf No, you're wrong because Roger has a stocks portfolio worth roughly the same as Owen's house so he can liquidate that to buy a house and be in exactly the same situation. So it's completely irrelevant.

[@redsampler2017]

you really believed that ''stocks portfolio'' crap?? like every renter in the world has a stocks portfolio ;-)?? owen can have a stocks portfolio just as well, rent and mortgage are both different but the same. a landlord needs to get his investment back plus profit(just like a bank or mortgagebroker) and he doesnt do it for half rent for what a monthly mortgage would cost. nah its almost always on the same level, but in the end the house is yours, and you can live in it for almost free from then on.(depending wich country laws of course) while roger still has to pay rent to live somewhere. sure he could spend his portfolio money on buying a house but that is like carrying water to the ocean. if renting wasn,t profitable there would be no landlords. nothing is free or to be gained with renting as a renter the money has to come from somewhere.

[@gladystunque6460]

Let's say a massive Depression reduces Own's home value to $200,000 long before the 25 years are up and he loses his job and can't pay the mortgage and property taxes. Roger may also lose his job, but at least he's not on the hook for several hundred thousands in mortgage liabilities. With the 'gig' economy (IE: permanent part-time working status with zero benefits) becoming the norm, why would ANYONE take out a mortgage for a home or even a car loan again? There is simply no economic stability anymore, particularly in the US. Millennials need to be very careful about taking out loans because what's coming could put everyone in debt into the poorhouse or even into indentured servitude..

[@danielporter7773]

Thats the risk you take

[@mgmello16]

This happened in the recession. However, homeowners still had an advantage. It took banks years to foreclose on these homes, and many of the homeowners just stopped paying the mortgage and lived there for free for the years it took the bank to foreclose. But with renting a landlord can usually evict within a month to two. One will have an eviction on their record, the other a foreclosure eventually, but meanwhile they can find a rental home before the foreclosure is reported on their credit. While the one with an eviction will find it very difficult to find another rental. Buying is nearly always better. My rent when I was in college was $385 a month. Now that same apartment costs $1200 a month. While I live in a home would cost $2500 to rent, and I paid it off, so my costs for taxes and insurance are around $500 a month, which is close to a set cost thanks to homestead laws. In 10 years time when renters will be paying $4,000 a month, I may be up to $600. It is why homeowners are 100 times higher in net worth than renters. Set goals and focus on achieving them. If employers aren't paying you enough for your skills and time, then start your own business. If you don't have the skills to do that, learn the skills needed to succeed.

[@gladystunque6460]

In a stable, growing economy, replete with full-time, high-benefit jobs for the majority of workers, I could actually agree with some of your points, absolutely. However, In today's shift to A.I., robotics, robber-barron corporations/serf workers and anti-union sentiment, workers of all ages need to be very careful about going into debt. Better to have a lower net worth than huge, unpayable debts, amen.

[@binkyxz3]

True, the mortgage could be viewed as how confident one is in their long-term earning potential.

[@danielporter7773]

thats a risk you take

[@raygordonteacheschess5501]

A house is a target for financial disaster on all fronts, plus it's a huge loss of privacy. I like renting because neither me nor my money is tied down. If you can afford a home you can always afford to rent a small place.

[@YouGotPropofol]

Some intangibles: Cost of maintaining a home is far more than what was calculated. You can be insured up the yin yang but you’ll still have large costs for every little and big thing that goes wrong. Sprinklers, gardening, roof, leaks and leak damage. If you live in a fire hazard area extra insurance and mandatory brush clearance. If you live in an earthquake zone then possibly extra insurance for that. Property taxes go up almost annually here in California. Currently at 1.25%. As far as renting, you can move as many times as you want and not incur the huge taxes and commissions. Downsides to renting is noise and the inevitable noisy neighbors and other privacy issues. Assuming most will rent a flat bs a house.

[@mtheron100]

I agree. As someone who has moved house 10 times in the last 11 years, it greatly depends on your lifestyle. We have bought and sold 3 houses in this time, not making the same mistake again. We wont buy again until we know we will settle. Hopefully it will be a cash buy since we are saving on a major mortgage and paying very low rent.

[@Tommylee1242ATGMAILDOTcom]

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[@YouGotPropofol]

mtheron100 Cash buy is ideal. When finding a house most people just calculate if they have the 20% down and if they can afford the mortgage. Result being they end up buying a house that’s going to cost them hundreds of thousands in interest and mandatory insurance. Best to purchase what you can afford and forgo mortgages. Even if it means living in a less desirable area or in a smaller domicile.

[@anthonyharris2930]

@@mtheron100 Noone really "owns" a home anyways. The government makes you rent using taxes

[@hhjhj393]

I have heard horror stories with people renting though. If you are poor there are a LOT of slum lords that will straight up try to rob you or take advantage of you. Assuming that rent is a flat fee is also a mistake IMO.

[@mtz5590]

You forgot Rodger's rent also increases by 3% each year

[@ghengisnghe]

Mark Tianwu Zang in most cases, I’ve been renting 4 years and rent hasn’t gone up , but I’d still prefer not renting.

[@AprilSunshine]

He included that 4:45

[@UberWagen]

Mine has actually decreased!

[@Cornerstanding]

Mark Tianwu Zang only by 3% a year. Oh no that shit is definitely lower than normal from what I'm familiar with. I guess Toronto is only a major City if we are speaking of Canada alone. 3% rent increase is seriously low for every city I've ever lived in.

[@millay4813]

Also, in what world can you rent a $500,000 house for less then 10 grand a month?

[@Meowmeow.age.6]

If you buy a home, don't unless you can put half down. That way if things go awry with your income, you can rent it out. pay off the loan with rent money and you don't lose house this way.