How Much Home You Can ACTUALLY Afford (By Salary)

[@GrahamStephan]

For further updates, follow my newsletter: grahamstephan.substack.com/ Here is a link containing the source material for each piece of research cited. I do my best to make my videos as accurate as I can, and the additional resources should help anyone who wants to look into them further - enjoy! docs.google.com/spreadsheets/d/1mEF2sY3P-4PzzlrjqxMK3ZMe_XFtVkv7A-1lJWdMdNM/edit

[@christiandouglas7771]

Love the video! I’d like to see how much a person can afford when buying multi unit property when the other unit can count towards income.

[@SkitzoMFwittashovel777]

More videos like this!!!

[@davidbishop1449]

Thanks for this information. Since you have been in the real estate business, do you think you could do a video comparing prices of building a new building versus buying a standing structure? I know building is not really your cup of tea so no big deal if it's a no. Thanks for being awesome anyway. 😁

[@vandliszt]

I make only $30k a year... you think you can help me? Kinda stuck in job opportunities and options. Advice please?

[@irenatrulove]

We're looking to move from LA to Bakersfield. According to Redfin comps in area are 500 but property we are looking at is 850 should we go ahead to buy now?

[@AllDay3004]

Never in my life did I think I'd make damn near 100K a year and still feel broke

[@ThereAreTwoGenders]

Give someone that makes 30k, 100k a year and they will feel rich. Live as if you make 50k and you will have extra money

[@talea9593]

100k is the new 50k

[@micperez819]

@@ThereAreTwoGendersSpoken like someone that has never made 100k and doesn’t understand how taxes work

[@ThereAreTwoGenders]

@@micperez819 I make over 100k, after taxes I’m anywhere from 85-96k. Taxes are inevitable, what’s your point?

[@jasminer5286]

Haha this is so true. My husband and I combined make over 100K now, so we are more comfortable. But our buying power is much lower than my parents when they were making 70K combined in like 2013.

[@tunykun]

Doing any of these calculations in California with my 90k salary makes me want to cry. The cheapest houses around me are like 450k. A 450k house near where I live is always going to be a small house in a bad neighborhood where you have to put up with "fireworks" going off outside or people re-enacting Tokyo Drift at least once a week.

[@italiancapo7]

Exactly. It’s ridiculous which is why everyone is leaving California. It really is unaffordable.

[@daveg9541]

Holy cow u really just put into perspective how bad California is for me.

[@wadebarnett2542]

If you're thinking of leaving the state, consider relocating in one of the states that don't have state income tax. Research well.

[@bbdo1111]

Stay in Cali please

[@djangomarine6658]

​@@wadebarnett2542 It's a trade off. I live in Texas and our property taxes are ridiculous. The state needs their money and it has to come from somewhere.

[@alexsteven.m6414]

I predict a housing crash due to people buying homes over asking price, lacking equity if prices decline further. Foreclosure becomes likely if they can't afford the house, and selling won't yield profits. With anticipated layoffs and rising living costs, many individuals may face this situation.

[@NorthCarolinaForward]

I suggest you offset your real estate and get into stocks, A recession as bad it can be, provides good buying opportunities in the markets if you’re careful and it can also create volatility giving great short time buy and sell opportunities too

[@Tanner-c2m]

This is precisely why I like having a portfolio coach guide my day-to-day market decisions: with their extensive knowledge of going long and short at the same time, using risk for its asymmetrical upside and laying it off as a hedge against the inevitable downward turns, their skillset makes it nearly impossible for them to underperform. I've been utilizing a portfolio coach for more than two years, and I've made over $800,000.

[@belobelonce35]

Interesting, Mind if I ask you recommend this particular professional you use their service? honestly right now i have quite a lot of marketing problems.

[@Tanner-c2m]

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

[@lolitashaniel2342]

Thank you so much! This is exactly what I needed right now. I wrote her an email and am waiting for her reply. Hopefully, she responds soon. I plan to start the year on a strong financial note.

[@NicholasBall130]

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

[@cowell621]

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

[@StacieBMui]

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

[@StocksWolf752]

How do I reach out to one? my assets have been struggling since 2022 and I’ve been holding on by the skin of my teeth.

[@StacieBMui]

Rebecca Nassar Dunne maintains an online presence that can be easily found through a simple search of her name on the internet.

[@VictorBiggerstaff]

Thanks for sharing. I curiously searched for her full name and her website popped up immediately. I looked through her credentials and did my due diligence before contacting her.

[@CedricBrookser]

Thanks for sharing FET and AMS89H. 💯

[@sudarshanmaharana29]

It will soon all over the news

[@manthanpusnake6696]

this is a life changing project

[@subalchar3517]

AMS89H IS HUGEEEE!!!! 😎

[@Yuvisingh-i9d]

this is a life changing project

[@SumitraNarre]

Why everyone is talking about AMS89H?

[@bigbangbobby]

I love when people with a bunch of investment properties tell us how awesome renting is . While they buy up all the starter homes as investments and keep prices high . 😂😂😩

[@JarodM]

@@SneezingScallion They do it because they need someone to pay their mortgage.

[@JosefZeethuven]

Right now its just not worth it to buy a home. the mortgage prices are up.

[@rachel4339]

That was my thought 😂 I guess Graham has some vacancies he needs to fill!

[@triplea657aaa]

Not to mention corporations owning 25% of all single-family homes....

[@useyourblues]

It's equally eye-rolling to hear Real Estate Agents telling us NOW is the time to buy a house... because they get paid to get us to buy a house. In today's Real Estate transaction culture, NOBODY is actually incentivized to represent the Buyer's interests. Noone gets paid unless the buyer buys, and the higher the price, the more they get paid. I don't trust a "Buyer's Agent" any more than I trust gas station sushi.

[@Crypticdogma]

It's not just about calling myself a homeowner. It's about the freedom to do with it what I want.

[@GoodVibessoo]

Wait till you have to pull permits for your 50 sq ft gazebo!

[@Crypticdogma]

@GoodVibessoo I understand the red tape. But it's more about if I want to paint my living room, and as a renter I couldn't build a gazebo anyway. At least as a homeowner I have the option.

[@spacetoast7783]

It's one of those things where the grass is always greener on the other side.

[@rlafleur2011]

Don't buy in a HOA neighborhood then

[@davidporter9553]

When you are RENTING, the payment isn't just the payment. Rent is jumping from 1200 to 1800. Mortgage payment remains the same if your rates are set.

[@ibanezplayer147]

Yeah he lost me when he said "rent is a fixed cost"... if your rent is 2000 today, it could be 5000 in 20 years. If your mortgage is 2000 then in 20 years it will still be 2000.

[@ryscith]

You're missing the entire point. You're only going to pay rent when renting. Maintenance and any other miscellaneous costs are covered when renting, but are out of pocket when owning. That's what it means when people say "Rent is the highest you'll pay and your mortgage is the lowest you'll pay". I don't think anyone thinks your rent is literally going to always be the same no matter what, it's just factoring in that ownership comes with the costs of maintenance.

[@davidporter9553]

@@ryscith Things don't break in your house EVERY month. And even with the miscellaneous cost, you are trading time for money. When you are owning, you are more likely to do preventive maintenance vs a landlord who would just wait until something is completely broken. Then you have to wait almost a week for them to come fix it.

[@TheAnnoyingBoss]

Plus you build your own equity as you pay the debt. If you rent youre building someone elses equity. On the flip side its easier to move as a renter. You dont have tocwait for the house to sell you can just not sign the next lease agreement.

[@kzfingerprint]

This!

[@Riggsnic_co]

The issue is that either the renter or the owner must in some way pay insurance and property taxes if they want a "permanent roof" with utilities like electricity, gas and water. Because of this, many people-at least in California, where I currently reside-are living in tents. No taxes, rent, mortgages, or insurance. The number of people who tell me they live in their car that I meet amazes me. Its crazy out here!

[@bob.weaver72]

If anything, it'll get worse. Very soon, affordable housing will no longer be affordable. So anything anyone want to do, I will advise they do it now because the prices today will look like dips tomorrow. Until the Fed clamps down even further, I think we're going to see hysteria due to rampant inflation. You can't halfway rip the band-aid off.

[@martingiavarini]

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

[@TheJackCain-84]

I will be happy getting assistance and glad to get the help of one, but just how can one spot a reputable one?

[@martingiavarini]

When ‘Carol Vivian Constable’ is trading, there's no nonsense and no excuses. She wins the trade and you win. Take the loss, I promise she'll take one with you.

[@TheJackCain-84]

She appears to be well-educated and well-read. I ran an online search on her name and came across her website; thank you for sharing.

[@kittenwithagun]

*cries in $40,000 a year salary in an area that doesn't rent a 1 bedroom for under $1,200 a month*

Get a better-paying job, move, or get married.

[@zmcdaniel24]

Easier said then done

[@PEPL515]

This guy straight up said “stop being broke by making more money or move.” Lol

[@zmcdaniel24]

@@PEPL515 I'm married too. Doesn't make it any easier.

[@ranaeam8300]

Wonderful advice lol

[@CuddlyJon]

My problem is that the inventory is horrendous. I've saved 140k, been preapproved, and people want 700k for a 1960s home with disgusting carpets, water damage and literally a HOLE in the roof of a illegal addition to the house. OH, and all the windows have steel bars to deter thieves, bars that are illegal now due to new laws stating it's a safety hazard during fires.

[@haroldfarquad6886]

The Boomers have all their wealth tied up in inflated housing prices, and they aren't going to let go of it until they die off, and they're living longer than any generation in memory. Couple that with the country being flooded with tens of millions of illegals that the system doesn't account for, and you have our current situation: impossibly high prices and low inventory. Millennials and Gen Z won't reach home ownership at the same levels until the Boomers' inventory comes on the market en masse, assuming Black Rock and company don't buy up every last bit and turn us all into permanently renting serfs, or the government makes inheritance taxes so steep that kids can't even afford to inherit their parents' estate.

[@janityy]

Really in PA ,Ohio and west virginia can get gorgeous homes for 40,000 u need to do ure research and move

[@Thenbafan45]

Yeah move!!

[@mikec5663]

Exactly. where I am in NYC, they want 500k for a pos bungalow style home that looks straight out the 1950s. Foh.

[@cdbeard1]

@@janityyno one wants to live in PA 😂

[@nicolasbenson009]

Distinguishing between money management and wealth accumulation is crucial, and the absence of investment education within educational systems could be a factor contributing to individuals' difficulties in sustaining their financial growth. The instances you shared hold relevance, and I, personally, found value in the market crisis, as I am inclined to embrace challenging periods while some may shy away. Interestingly, my advisor shares a similar outlook, albeit in a lighthearted manner.

[@MeatPez]

Thank you for sharing your insight

[@waynebrucemanbat5787]

You do realize our entire economy is pretty much based on the need for the vast majority of people to make dumb financial decisions right? This is the American way. It's great for businesses and typically pretty bad for the majority of the lower half of the middle class and below.

[@WheatGrinding]

The problem is kids don't have any basis. My high school literally had a class on money management. It was all in one ear and out the other for me then, even though I care about and actually enjoy learning about it now.

[@josephsouthwell4295]

“20% down” is not possible for 70% of America.

[@samuelhannabass6297]

Keep telling yourself that

[@ericortega1745]

​@@samuelhannabass6297. California? Impossible. Utah maybe

[@samuelhannabass6297]

@@ericortega1745 yea cali might actually be difficult. All I’m saying is there’s a difference between “it sucks” and “it’s impossible” so that 70% number in that comment is off

[@HansKJohnson]

It's doable, but the average American (IMO) is not good with their money and spends way above their means. It's not that hard if you're willing to live within your actual budget and actually save your money. The amount of people I see from HS who are working retail jobs and buying brand new expensive cars and jewerly is laughable.

[@collinwebster291]

Average home cost in 2023 was $490,000. 20% of that is $99,000. The AVERAGE American household has about $62,000 in savings across all accounts. So yea.. I'd say you're right.

[@BirdFinder100]

I don’t understand why the word gross is used at all when it comes to these types of purchases. That’s not your take home. It only makes sense to use your net.

[@angelaserrano78]

It's a way to get people into more debt. Using gross qualifies people for a higher priced home. Those same people don't realize that going for the max will make them broke because they'll be exhausting their net pay on a mortgage.

[@TizShak]

It's because your net pay can be more easily adjusted than your gross. You could always go to HR and adjust what's coming out for insurance and retirement, or how much tax you want withheld in order to sustain home owning.

[@LiveURlifee8D]

So what I learned was…I’m never moving out.

[@ezequielvillegas31]

Same

[@Jack-fr9bk]

Find a boyfriend or girlfriend you'll be fine

[@LiveURlifee8D]

@@Jack-fr9bk I have one…lol

[@Jack-fr9bk]

@@LiveURlifee8D Haha then work together and accomplish your goals. It's incredibly difficult but not impossible.

[@DogWearingABeanie]

​@@Jack-fr9bkgreat advice! Use one unachievable goal in my life to acquire my other unachievable goal in my life 😂 (jkjk)

[@jackplayz4926]

Did anyone else catch him say, “What’s up Graham, it’s guys here,” love the video, super insightful, keep it up!

[@matt23727]

Mini stroke

[@crystinanna7829]

He’s done this for years 😉

[@tracyk2404]

Lmao….hilarious 😂

[@squanchy474]

Owning your house is more than just being able to say you’re a home owner, it also means to some degree locking in your housing costs, other than taxes of course. That security also provides a large value …

[@saast123]

It's a potential leverage which just adds further cushion to emergencies. You can potentially survive two or more emergencies without going too far into debt if your a responsible owner/saver. That said, living below your means is necessary. If more people did that the overall pricing in the marker would stabilize in my opinion.

[@ZachSilveiras]

HOA and insurance increases, now it feels the same as renting.

[@lr6187]

Unfortunately jobs fluctuates now in many industries and not quite as stable. People lose/change jobs more frequently and that's when housing becomes a liability more than a security blanket.

[@Trziwocjwheicnaocejk]

@@moonaj89it’s because you live in the highest risk state, that’s your own problem lol

[@Double_T_G]

Did you listen to the video? Owning a home has so many variables. Is something gonna break? Will a water pipe burst? Will taxes or insurance go up? There's no such thing as locking in your housing costs.

[@tannerted]

I love these kinds of highly-practical videos from you, Graham.

[@evns7142]

Agreed. Very credible, super useful and easy to understand.

[@madmike18]

Agreed!

[@inlinesix6694]

Except the 30/30/3 rule and so forth are not practical at all for most

[@daniellerussomanno188]

I bought my first house during the pandemic. It seemingly fell into my lap, sellers accepted my offer before it was listed. That’s the only way I was able to get a 3 bedroom home for $186 at 2.8 (if I recall correctly). I’m never moving 😂

[@bacomon4260]

$186 for a house thats c razy bro, think you forgot a few zeros though

[@cowboyxboombap]

Yeah, you're stuck with that bad boy. Might be a decent option to rent out if life takes you somewhere else though.

[@Lambert-hr7sm]

My parents bought a townhouse for 65k in 2012. Those now sell for 330k. Parents decided to move back to Europe and sold it to me for 230k, 4.5APR. Needless to say this was the only way for me to ever by a home in CA and I’ll probably never sell. Just crazy how much home prices skyrocketed.

[@daniellerussomanno188]

@@cowboyxboombap I actually am very happy in my house so I'm ok with it! I dont want a larger house, just more space to have to clean in my opinion

[@daniellerussomanno188]

@@bacomon4260 Haha! you're right, I forgot to add the "k." i wish it was $186

[@softaco3088]

Just renovated my master bath myself for about 2k. I'm lucky my mortgage is only 25% of my monthly net and was able to do everything out of monthly checking. Also, lucky for KZbin for showing me how to remove/replace subfloor, basic plumbing, tiling and baseboard work. Would have been a 10k job if hired out.

[@povertyiscreated2265]

So basically it's impossible to buy a home as a single person. Median individual income is around $40,000/yr

[@nightfighter7452]

Get ya money up

[@jbnbdar3528]

@@nightfighter7452 it’s not that easy if it was people would

[@xCCflierx]

There are townhomes, condos, and lots of lands you can either buy or rent to put your own mobile home on in America for usually less than $120k upfront. Do your due diligence but I've seen that I could get a small plot of land, a mobile home, a septic tank, and some generators in that price range. I'd have a larger gas bill and would only need city water. Not something I plan to do where land is expensive like NJ

[@Coreyahno]

Get a STEM degree

[@NotKimiRaikkonen1]

​@@Coreyahnoor a trade.

[@foodserviceeducation]

These numbers are great for those who have advance degrees or multiply income. Being a single guy and parent makes it really difficult int today's market to afford 20% rent. 0.587% is what my current marketplace rent is costing me of my salary. I live in Florida. Rent is crazy. All these expenses are going up, but salaries aren't, making it incredibly difficult without a second job or passive income to get ahead these days. That's just the truth.

[@karbonkillershorts8551]

@@SneezingScallionhow much money do you make

[@asongfromunderthefloorboards]

I think you meant 58.7% of your (net, I assume) salary goes to rent. That's not uncommon. If you make $50k, 20% of your gross income is $10k per year, or $833 per month. There may still be places in the country that you can rent a studio apartment or a room in someone's house for less than that but not a much bigger place than that. People stretch that much higher. 58.7% of salary is not uncommon. Just try to decrease your expenses and find ways to increase your income. I knew I would never be able to even afford my own apartment, so I went back to school and it worked. I got my own place, without parents, roommates, boyfriends, etc. However, I still am not under 20% of gross, I'm paying 28% gross or about 37% net for an apartment. I still need to double my income to be able to buy a house (or find a partner willing to buy a house with me, who makes at least what I do) because Zillow says mortgages are $4-5000+ per month here and that's not happening.

[@anadieleinteresa2543]

You know prices skyrocketing is a reality. When my husband bought his house in 2020 was 200k in florida and he was paying 1.2k montly which was ok .right now because houses in same are went up his montly payment is 1.6k with is more than 50% his sallary sad but true :(

[@nightfighter7452]

Sell the kid

[@michaelschneider9305]

Quit being lazy and work a side hustle or a second job, you are the only one holding yourself back. I provide for a stay at home wife and two kids. Stop being the problem and start being the solution!

[@philsidock]

Over the past few months, I've met up with people my age who I've lost with over the years. The two top-of-mind issues for these 25 to 30-year-olds are skyrocketing inflation and the impossibility of owning a home. Being a Canadian, we have even more restrictions on getting mortgages, and with the ideal ratio that Graham outlined here, I understand why many people are struggling.

[@abdoyogun7661]

Yea Navy federal gave me a really high limit. I applied and was denied at first so I got a MYSTICFLIP , and I was approved for a capital one. The limit was so small lol but I took it and worked on it. Because if that it helped my credit and I believe that’s what made me finally get approved for navy fed with such a high limit. they're still working on increasing the capital one since it was so low. All in all I’m satisfied.

[@kerrough]

The issue with your advice is rents are pretty much always increased at every lease renewal (usually every year), while you're locked in at whatever your mortgage is unless you have some kind of variable rate loan. There's also lots of areas in the US with little to no legal protection for how high these increases can be. So, sure, having a super predictable monthly expense is convenient, but not if you're having to move every year because you keep getting priced out of your rental. And that's not even touching on crappy landlords/property management companies refusing to fix things or doing subpar jobs if they actually do. Or addressing the rental crisis due to skyrocketing rents even in the worst/least desirable places. We're looking at having to move to another state entirely just to afford decent housing in a safe area with acceptable schools because even making $70k+ a year, we're still struggling to afford anything somewhere safe enough to live with our kids. I'm fine with living in the hood, but there's a big difference between the "working poor" hood and the "drive-by shootings at schools and drug dealers on every corner" hood. 1st one is fine, 2nd is unacceptable (and STILL freaking expensive around here if you need a 3br).

[@patrickklepper3641]

This video comes at a perfect time since I was just discussing this with some friends yesterday. I did a quick search on Zillow in my area and there were just over 400 homes sold in the last year over $900k. My thought and question is who in the hell can afford that?!?! I'd love to see a video on careers/jobs that earn $200k+ per year.

[@cmoullasnet]

The answer is people who bought when it was cheaper and now have tons of equity to roll into an upgrade. Either that or investors…

[@uromvictor]

Yes oh. That’s a real question

[@AnonymousGameWarden]

Get yo paper up homie

[@oldcracker3383]

a lot of people cant, most non millionaires own million-dollar homes.. it is the american dream to go over your eyeballs into debt and spend 100% of your salary while complaining to your government why you can't retire

[@B1SQ1T]

A lot of homes are being bought up by investment companies to then rent out or something aren’t they

[@joseluna5934]

Owning a house its 100% times harder than what u will think. Please be ready. Make it a blessing

[@nessforbes7400]

Paying rent for your whole life and never owning it is 1000% harder than you think on your family’s generational wealth. 🤡

[@carlotta4th]

I will happily mow a lawn I own, but I will forever begrudge paying to mow someone else's lawn. If you move a ton sure, renting is probably the most easy solution for your lifestyle. But anyone living somewhere for a long time would benefit from owning.

[@bobbybain2576]

A trend I noticed among people my age - since housing costs have skyrocketed in my area (from 200k average house to 1million), the only way young people can afford houses (using the salary rule) is by having double income + parents help.

[@dill5500]

No

[@samh5218]

Noticed that too.

[@Xaforn]

Yup my parents home has tripled in value since they bought it in 2008.

[@BusArch42]

We replaced our roof last year - 17k. Eight years prior had to replace entire HVAC (heating and AC two units) and it was 22k. A lot of people do not set aside enough for these large repairs and maintenance

[@beachinhonolulu5136]

Why didn’t you just get a home owners warranty?

[@nightfighter7452]

Condo ftw

[@OGtruthserum]

@@nightfighter7452 I would never buy a Condo.

[@AlmostFire1000]

This is immensely helpful, I’m currently trying to restructure my finances after a disastrous situation happened with my dog (large medical bills). I will be rewatching and taking notes.

[@vansnstuff6270]

What happened with your dog?

[@DistanTThunder2]

@@vansnstuff6270 Something bad I'm assuming.

[@David_Quinn_Photography]

that 28% rule was a tough pill to swallow. with that rule I can't even afford to rent and I make 3k a month.

[@la6136]

Most Americans are in this position. Average salary in America is around 3k a month. Housing has become completely unaffordable.

[@jamieism]

Yeah I was thinking the same thing. I’m making the most money I’ve ever made in my life and according to this I should only be paying a max of $600/mo…. assuming he means gross income, not take home, because the government is also taking 1/3 of that.

[@moxie8714]

Kinda tuned out there tbh. It's good practical advice, but it's not realistic for really anyone today. Sad to say but that's the truth.

[@OGtruthserum]

@@la6136 Wait so I make more than the average salary in America at 6K a month?

[@OGtruthserum]

@@moxie8714 Thank you for saying that. Cause my friend on 50K salary bought a 570K house.

[@Diana.Oachis]

Affordability is at an all-time low!!!

[@GrahamStephan]

:(

[@OGtruthserum]

You jest Diana

[@jacobfetzer715]

So is the value of the US Dollar. That's the problem.

[@UnlùtartìßmalariKavgalari]

I hope you are right about NEP5H4? Thanks for the highly educational video. Keep up the good work -

[@colinnicholson5727]

Hey Graham! I love your videos man! Is there any way you could do a breakdown like this over using the VA loan for military and DoD personnel who qualify and don’t need the 20% down payment? I’d really like to share it with my guys to help educate them so that was they don’t end up buying more hose than they can afford. As an idea, you could also spice up the idea by adding how to grow a portfolio by using additional FHA loans or conventional home loans to purchase duplex or quadplexes in addition to their place of living. That’s how I’ve found to be the most successful way for mil/DoD member to grow their wealth. Thanks again!

[@Qu1nt_travels]

Agreed, I was going to ask how this would work for a VA loan. I myself am 25 with 3rd years into my IT career and I plan to buy my home when I am 30. That way I can buy together if I am married at that time or, buy a better house as I hear that the more time Ive been in the game the more money I will earn. I have friends who have bought houses too my age using their VA loan but they deal with the current interest rates going on. Which looking at this video, its better to rent really.

[@sophiaromano4412]

I live in Toronto Canada when I tell you there is not a fully detached home in the GTA that’s less than 700k .. and this is a gut renovation.

[@JustaBlueJay]

It's like owning vs renting a car. Yes when you own a car you're responsible for all maintenance but in the long run it is well worth it and the ROI is of course a lot better for homes.

[@lukescapee1234]

As someone who just got married and trying to buy our first house this fall, thank you for this video!

[@djangomarine6658]

Do NOT go over budget, no matter what anyone says. Taxes go up every year, insurance goes up every year, and repair costs go up every year. Stretching will leave you house poor or foreclosed and back to renting. Congrats by the way.

[@xMontorix]

This video is right on que. Finally working toward getting my first home at the age of 28 by the end of the year. Thanks Graham!

[@justincadieux1535]

Good luck bro

[@xMontorix]

@@justincadieux1535 Thank you!

[@youknowthatoneguy123]

I'm the same age and the prospect of homeownership is fleeting more and more each year.

[@shahzebnasir4692]

Wait for the crash man! Interests rates are very high and so are house prices. They will come down!

[@urbumminmeowt]

Same age and I just signed on a new development. Over what he reccomends but somewhere I'm still comfortable and exciting to just start owning

[@Gldn90]

I guess I’ll still be living with my parents at age 45

[@makerphin]

In Canada they do the 30-35% rule but include any existing debt during pre-approval So all your debts + mortgage included, should be under 35% of household income

[@Bloods2006]

In a way you were right about mortgage rates being the reason that 60k isn’t enough to afford a home in America. But it’s actually the fact that the FED artificially lowered rates which made house prices explode and then they raised rates and the price has lowered minimally. If the government left their hands off the mortgage rates then they housing market in 2023 would be much different. If rates were still suppressed we’d still be seeing unsustainable growth in price.

[@Brandokie]

Just the video I was looking for! Another good topic I’m looking for is the differences or pros and cons of owning a condo, house, or townhouse. Thank you so much for the knowledge and information you put into these videos

[@oscarcaballero9014]

One word hoa

[@TMKJG24]

​@@oscarcaballero9014that part

[@johnsonsmithson45]

Depends where you live and what your market has to offer

[@arcanernz]

If it’s a small complex with less that 10 units and no major upkeep the HOA shouldn’t be that bad if you’re on good terms with your neighbors.

[@punkbassandcovers]

Very important Graham mentioned this - just because someone is approved for a specific mortgage amount it shouldn't be a green light to get a loan for that much. Lenders wiill and can get you approved into a home that will make you house poor.

[@DC-gp6hd]

exactly... we gave our realtor our pre-approval cert, which was significantly higher than the range of homes we were searching for. The realtor was trying to pressure/convince us that we could afford... We ended up switching agents, because we felt like she was looking out for her interest ($$$) vs ours. We stayed on our low side of our target price range.

[@amkugel9230]

Exactly!

[@NoNo-ng9sl]

​@@DC-gp6hdTypical agent. Incredible how they gas their job up.

[@montasserhamza9049]

Nobody can say it any better! If you are somebody who is thinking or looking to purchase a home I highly suggest you pay close attention to this video and take notes. I guarantee you after you get done watching this video that you will not fail, you will end up taking the proper steps and make the right choices and succeed!

[@HeyWorldMeetJimmy1]

So what you’re saying is, I can’t buy any home

[@OGtruthserum]

Well not with that attitude mister!

[@Backendralph]

I love watching Graham videos knowing I am not going to buy a home no time soon 😂😂

[@Brathsolus]

Facts

[@singer0004]

Same here, just dreaming right now

[@natebrigadier]

@@singer0004keep the dream alive! I started my new build on a house a few months ago! Had to put 3k down for them to start and the rest of the 20k when it’s built in a year or so. I never thought it would be possible but at 26 I feel confident it was the right choice! You can do it, put your mind to it ❤

[@TMKJG24]

😂😂😂😂

[@stephenbabine3325]

You mean anytime soon 😎😉

[@andrewrenna6724]

Welp this is the confirmation. I’ll never own a home. And if I do, I’ll die before the mortgage is paid off.

[@esqu1re]

You dont have to pay off the mortgage. Dont let that deter you. Almost nobody pays off their mortgage before moving.

[@goodToons007]

Provided you have low morgage rate why would u ever give the bank their money back, screw the bank

[@jbnbdar3528]

@@esqu1re and that’s the problem people need to pay off their mortgages to find financial freedom

[@esqu1re]

@@jbnbdar3528 In the traditional sense, you are right. For most people, thats right. But, you can have debt and be financially free. Most wealthy people only utilize debt in order to avoid taxes. Theres a book that discusses that: "buy, borrow, die"

[@HawkingRegime13]

I definitely took a leap of faith and bought a home worth more than I could afford. Fortunately, I do have roommates, but I did take a chance because I think purchasing a home in my area is worth it for the long haul. I'm also assuming I am going to increase my income over the next few years, so it's certainly about your risk tolerance with investing.

[@iaskaterwhos12]

assuming your income will increase going into one of the bigger recessions we will ever see is risky Indeed. wishing you the best

[@HawkingRegime13]

@@iaskaterwhos12Will likely rent out the place in a year and downsize with the next purchase.

[@Brandonbhp]

@@iaskaterwhos12 assuming they are at the same place of employement. they are not going to randomly decrease their wage so its not a crazy assumptions. usually places have a yearly review or set "raise" of some sort even if its very minor. New employment is obviously a different scenario though.

[@infinitfootball9262]

@@HawkingRegime13how will you be able to rent it out and cover your mortgage payment? i’ve tried doing these calculations myself to see if i could live with roommates for a few years then move out and rent it to a family but the rent wouldn’t seem to cover much of the mortgage

[@LR-pw9dd]

@HawkingRegime13 OOF Good luck

[@TheKIDmotovlogs]

Pretty tough to do in my area. Any house even close to $250k is pretty much unlivable. You start getting towards livable spaces in the $350k range.

[@bradd.8278]

Y'all realize you don't have to live in City "A" right? There are plenty of places that still have good homes for 100-175k

[@Wetdoor]

250k in my area can get you a really nice suburban home. 😊

[@bradd.8278]

@@Wetdoor in my area we are looking at a 330k home and that is built, picked lot, hoa, gated the whole nine. When people say "livable" for 350k I either wonder if you're addicted to where you live, or you can't afford the lifestyle you want.

[@josielynn6369]

​@@bradd.8278 y'all know moving costs money, too, right? And is often limited by job prospects? Not everyone has the perfect flexibility to pick up an go anywhere.... I.e. what if you have kids and your parents provide free childcare? Or you want to avoid moving them all over so they can stay in a good school district? Areas should be livable on wages made in those areas or you will always have the problem of people not being able to afford homes.

[@bradd.8278]

@@josielynn6369 I just noted that a lot of people cannot afford the lifestyle they want to live. Why are you mad?

[@chuckleberryfin]

Don't forget to include the cost of PMI (private mortgage insurance) if you are purchasing a house with less than a 20% down payment. Note: some banks will allow you to drop PMI before reaching 20%, but this requires you to have your house appraised and show the value of the property has increased to a certain percentage.

[@Twisted86]

You can't afford 20% you shouldn't be buying a home, that's just a hard truth.

[@slimdude2011]

@@Twisted86 Everybody don't have deep pockets, who are fortunate to have a six-figure salary or were born with a silver spoon in their mouth. So, don't turn your nose up and look down on people who're less fortunate, and not financially blessed as others.

[@Twisted86]

@@slimdude2011 Doesn't change the fact if you can pony 20% down you cant afford it. Wealth has nothing to do with it, it's called living within your budget.

[@slimdude2011]

@@Twisted86 It has a lot to do with wealth because you can't buy anything without money. A potential home buyer doesn't need a downpayment on a house at all, and the 20% is not mandatory! A person has the option to have the house financed 100% of the asking price by the lender, with the inclusion of PMI, until the homeowner reaches 20% equity in the home, or 78% of the property's original price is paid, then the PMI can be removed. A house can be purchased with little or no money down, the same as for a vehicle. So therefore, a 20% downpayment is not a requirement, regardless of the buyer's financial status. A real estate agent's primary goal is to sell houses to their potential buyers, not scrutinize their client's financial status. That's for the lenders to analyze and decide. If the buyer has a very good to excellent credit score, stable income, a long work history and doesn't have any outstanding debts then most likely their loan will be approved. Actually, having a 20% downpayment is secondary because as I've said before, 100% of the amount can be financed. The most important thing when buying any luxury item is having the personal qualifications, and the abilities to afford it. Many homeowners had put down 20%, 30% or more on their house, and they still couldn't keep up with the mortgage payments and unfortunately, they've lost their homes, and the lender were forced to foreclosed on the property. So, it really doesn't matter how much money a potential buyer has for a downpayment. The problem is not getting a house or a car, the real challenge is if you can sustain and keep up with payments and pay it off. That's the most difficult part of buying a luxury item.

[@megafan0258]

​@@Twisted86 What about in the real world where rent is far more expensive than a mortgage for the same or less living space. On top of the fact that cheap rentals are usually a health hazard!

[@ransomemckissick8184]

Thanks for the intel, Bro! I am doing David Ramsey's debt snowball to pay off my consumer debt, before buying a house.

[@Dave12x-ts6hp]

What's always left out of home buying calculations is building of equity + potential home appreciation (either through overall value or inflation). If after 10 years of owning a home you sell you get the equity back at a minimum plus any appreciation. While renting maybe cheaper short term, buying in most cases pays off in the long term.

[@stevenf6456]

It's not left out. Rent vs buy calculators take this into account. Graham mentions "opportunity cost" in the video.

[@wilternbackstage]

The flaw in your vs. renting assumption is that the renter isn’t investing the difference in what they’re paying for rent vs home ownership costs. I’m renting a $900k home for $2800 a month and I invest over 20% of my pre and post tax income in the market where I have realized average return of 10% give or take. To buy this home would be $180k down and a $7k p/month. So while I would have equity after the 10 yr period, I will have paid much much more to get that equity. Point being, there are other ways to build wealth vs locking up your $ in a home and being ‘cash poor’ like so many homeowners I know. Now if you can comfortably afford to pay a $7k mortgage, throw down almost $200k to do so AND invest well then great, but that’s a small % of people

[@nickrex2365]

@@wilternbackstagelmfao no, the flaw is thinking this scenario even exists. Typically you’re gonna pay way more monthly to rent vs buy in the first place because the landlord has to make money lol. No house that costs 7k a month to buy is renting for 2.8k lol

[@jayj1268]

@@wilternbackstagePaying someone else’s mortgage. Congrats… you paid yourself.

[@CaBdosdos]

You don't build equity hardly at all in the first 10 years of the mortgage. It all goes into the interest. You'll pay property tax and home insurance. You'll also be eating the costs of any damages or repairs made.

[@loags22]

My wife and I are considering buying and there is literally nothing affordable that won't cost double what we would buy it for it making it liveable

[@CJ30123]

Dont listen to landlords advice when it comes to this topic. I used to see some logic in the rent forever mentality.....then covid happened. That exposed the biggest flaw which is zero control. Rents exploded. Home values exploded. A mortgage is basically rent control. Same price forever. While watching home value go up over time. Rent can skyrocket at any time while you are putting money toward nothing of value. Buy a house as soon as you can afford to.

[@starhill6792]

Apparently the most I can afford working full time is like $500 in rent. Tell me literally where anywhere in the country that’s a thing. (& if I lived there I would probably be paid less) This video basically told me I am never going to find a home or house I can buy.

[@Star-yw7kg]

What state are you in

[@Grushenke89]

Interesting. Most places I've rented, in the past, the landlords did nearly zilch to update the properties but they continue to remain inhabitable year after year per city inspectors.

[@Icedragon256]

I'd like to see you discuss the difference between cashflow and cost. 100% of your cashflow when renting is cost, but this is not the case for ownership. You're socking away principal as a form of forced savings, but you also need to consider opportunity cost of whatever equity you have in the home compared to what you could make with an index fund. This doesn't inherently make renting a worse decision, but educating your viewers on more of the factors that go into making this decision could be helpful.

[@huntstyle]

And factor in the additional costs associated with buying, like he talks about with maintenance and upkeep. I don't think very many consider this when doing the comparison. As well as the taxes, insurance, and interest which are costs you won't get anything back from. Another thing I never see people discussing is the fact that at the beginning, your payments are nearly all interest. So just about the ONLY profit you actually get if you sell that house in a few years would be appreciation (minus realtor commissions, closing costs, and all those other expenses you had over the course of "ownership"). To do a true comparison is nearly impossible, because there are too many unknowns. The way I see it, unless you know you're going to stay in that house long-term OR you can force equity with a fixer-upper, you're probably better off renting unless you can see the future and know there's gonna be insane appreciation like we've had the past few years (if there isn't a crash forthcoming).

[@tatyana8556]

schools need to teach kids things like this because it's so important and most of us who are in our early 20s are trying to figure out what all of this means. i really appreciated this video, very eye opening. thanks graham!

[@notanotheryoutubechannel777]

I think the government and corporations need to stop being greedy and screwing us the people over.

[@andersnielsen6044]

It is not the schools job - it is your parents who should have learned you these basic already before you were 15. :D

[@darthhodges]

Regarding insurance there is also a big difference between appraised market value and replacement value. You would think you would normally insure for market value but sometimes either the state you live in or your lender can require you to insure for the cost to completely rebuild the home and replace everything inside, replacement value. That can easily be THREE TIMES market value. Obviously the premiums on a replacement policy would be dramatically higher than on a market value policy.

[@kennethguerrero6802]

Woah! Graham has come a long way! I dont remember him ever talking about sensible numbers like this! Resubbing bro! Great video!

[@Pork_Rolllin]

Love being told, as a prospective home owner, from other homeowners, "just rent and be happy." I love paying other people's mortgages!

[@rebeccaobrien2642]

As a two time homeowner now renter... it's true. I'm not sure I ever want to buy another house, because your just-inspected AC will surely fail on the hottest day of the year, your fridge will die the next week, then a pipe will burst flooding a bathroom. At this point, I feel like owning a home is just renting from the bank and being responsible for all the upkeep. I pay my rent, handle minor repairs, and call the landlord when something expensive happens.

[@HermanWillems]

​​​@@rebeccaobrien2642but your rent can increase massivly each year. And a modern new build house in Europe is fully electric and so well insulated that it cost sometimes less than 0 euro on energy cost. While houses for rent have sometimes energy cost of up to hundreds and hundreds of euro's because its old and badly isolated and still heated with gas. A proper newbuild house is also build for low maintance. Dont need to paint anything... so the repairs are extremely low. So and rents in general are much higher than mortgages as well.

[@Lizestechreviews]

Summery. You have to have dual income.

[@jdsk8er98]

Two full time jobs so i can afford a 2400 month rent 👍🏻 cant wait to see how much they want to raise rent next year too

[@masone788]

summary. you have to spell to own a home

[@truexgod4741]

When he talks about 60k a year but you’re only making 40k 😂😂😂😂

[@sugasweet435]

Not even🥲

[@mattryangomez3618]

​@@sugasweet435not even 😥🔫

[@blizbiggy]

The calculation will change depending on how much you put down as well. My rule of thumb is you can afford a home double your yearly income, but to live comfortably, you want to stick to a number well under that. Do not forget about those property taxes because I've seen some that cost more per month than my current home mortgage.

[@bradleyj7801]

“What’s up Graham, it’s Guys here….” always appreciate the great guy advice

[@financeabcs]

Rent can go up over time depending on market conditions (supply and demand) whereas your mortgage payment will be the same over the years.

[@GrahamStephan]

True!

[@financeabcs]

@@GrahamStephan You we’re saying the opposite in the video…

[@susanclaire901]

Your taxes, which are usually part of your mortgage payment, can go up easily. Same with insurance.

[@financeabcs]

@@susanclaire901 But your p&i will stay the same, which is the biggest portion of your monthly payment. What do you think will happen to your rent next year upon your lease renewal if your landlord got hit with higher taxes and insurance?

[@youtubesucks8024]

My parents’ house is fully paid off but the running cost is $25,000 a year and only goes up every year. HOA, taxes, insurance, etc. never stop.

[@kme06d]

Insurance is the killer when owning a home. I live in Florida and my property insurance doubled this past year. It meant I had to pay $2k to cover my escrow shortage plus an additional $250/month into escrow or pay $400 more a month into escrow. I chose the 1st option. This is without claims or even being in a flood zone. Nobody wants to insure in Florida so it's driving up the rates. It's ridiculous. My mortgage cost itself is reasonable and my interest rate is low due to refinancing during the pandemic, but I have no control over these damn insurance costs.

[@brookecarrillo3432]

I feel you!!! I live in southeast Texas and it’s the same way! Nobody wants to insure us so the state had to step in and “help”. Insurance is about 3500 a year not including flood insurance and we own a very modest home! And don’t get me started on property insurance.

[@HillaryMoore]

We are in central Indiana. We had a tornado in the spring and another large storm in the summer in our area. Our insurance increased very little (I attribute it to our coverage being for replacement costs and materials have stayed high). We had no claims, thankfully, the damage was within a few miles each time. Friends of ours in the county north had their insurance increase, 30% or so, then a month or two later, they received a letter saying they were being dropped. They had never been late, had not had a claim in three years - it was storm damage for their one and only claim. This area was not affected by either of last year's storms. Their carrier is the same as ours. It was ridiculous. They were able to reach out to their local agent who did get them reinstated, and their premiums actually went down. Insurance is ridiculous.

[@zackthestguy]

Your insurance rates went up by $250 a MONTH? Unless that's a multimillion-dollar property, those rates are insane. Of course, you're in Florida, so your property taxes are incredibly low. Here in NY, my $500k home insurance is $1000 a YEAR (about $83/mo) but my property taxes are $1100 a MONTH.

[@kme06d]

@@zackthestguy yes, that's correct. It's not a multi-million dollar property, my home is worth about $350k right now. It's a condo/townhouse which also may factor in the cost as well. That additional $250 covered additional rising insurance costs, plus the reserves amount they wanted, plus a slight increase in property taxes. My property taxes are about $1500/yr, my insurance went from $1700/yr to $3500/yr in one year. I'm not even on the coast or in an evacuation zone and my home has never had hurricane damage. I got rid of escrow and I'm currently saving $333/mo for insurance and $150/mo for property taxes. Screw their reserves, I've got my own and don't need to oversave for their benefit.

[@zackthestguy]

@@kme06d I can't fathom $1500/YEAR for property tax rates. Having a sudden increase in monthly expense like that is rough, though, no matter what the source is. Suddenly having to pay an extra $300/mo for anything will throw a lot of household budgets off.

[@ihazdabomb101]

I really miss these types of videos! I’m a big numbers person and could watch a breakdown video like this all day. It’s less click bait and more straight to details. Honesty I stopped watching graham because of those click bait boring videos. I hope graham reads this

[@PureToneMusic]

Renting makes rich people richer, while harming the middle class to lower middle class. It's driving house prices through the rough and then instead of paying $1400/mo for your mortgage, you're paying $2000/mo for rent so another person can earn $250 after fees.

[@pinkfreud62]

I bought my little old bungalow end of ' 97 and i was making $8.40 an hour. It was $54K and i had high interest, but my mortage was still lower than what i was renting. Mortgage was $460 & my rent was $535. Mortgage over 20 yrs at it's highest was $520 and it went back down to $500 when i paid it off in 2017.

[@hammer49946]

When he attended the "how to be a KZbinr" class he really took the hand moment part seriously

[@raven80wolfx2]

Honestly looking at how much homes cost it makes sense why most people can't afford it. My parents could afford a house when I was born, but bought vehicles they couldn't afford. They made little more than minimum wage. Now I have to have 8000 dollars a month. Thanks Gram for showing me how screwed we all are. California sucks let me know how many jobs I can find making that much a month.

[@BusArch42]

California is not doable for most people. We left 25 years ago. My sister is kicking herself for not leaving

[@RetroTaylor94]

As someone whose dream home is a $95,000 single-wide, I see this as an absolute win!

[@SymVib]

I make a 6-figure salary and have rented a little 400sq ft house in a beautiful historical neighborhood in an underrated midwestern city for 15 years. My landlord has never raised my $525 rent since I moved in in 2008. I love the renting/small house lifestyle, my finances are very predictable and I never have to worry about repairs or maintenance. I can afford weekly cleaners. I still have friends who urge me to buy a home because “I’m throwing away my money”. Uhhh no thanks, I hit the jackpot here-I’m sure I’m paying less in rent than they pay in taxes, interest, etc etc….plus life is so stress-free! Glad to hear your sensical take on renting; the average person is conditioned to believe that buying = success.

[@sebhenao]

Hey! Looks like you got an great deal. May i ask if you have a family? (Wife, kids)

[@SymVib]

@@sebhenao no spouse or kids! 😊

[@capitalironic]

“Whats up graham its guys here” you thought we wouldn’t notice haha

[@dulblades1]

Very good overall but he misses one huge point - EQUITY! The problem with renting is u flush your money down the drain each month but with a mortgage you are becoming more of an owner every month. That equity will help you upgrade when u sell and then buy your next house

[@Hashtagcris]

Thanks for making me not feel as guilty not owning a home. I want one so bad.

[@RCJH2022]

12:34 I live in Colorado and just saw in Aspen Someone bought an $80,000,000 Home. ...They rent it out for 70k a month and 100k during ski season. 🤯

[@xdonnamonsterx]

Me crying only making 70k salary in California while to buy a 1br apartment in the bay area is $700k+ and homes are $1.5m+ in the Bay Area. To afford a 500k home outside of the bay like Modesto/Turlock/Manteca area even, I'd have to drive 2.5-3hr drive each way to work.

[@keepmusicevil89]

Time to move

[@Star-yw7kg]

Have you applied for the mayors lottery properties- like if you live in San Francisco mayor breed has a system to purchase a house or a condo for $100,000 to $200,000 or so, and if you both work in San Francisco live in San Francisco you get pushed up in priority to get access to buy. They also have it for renting (I’ve seen some rentals for as low as $900 for a 1BD apt)

[@DrKepperGaming]

So glad I was able to get a home in the midwest a little over a year ago so that my rate is 3.5%...My home is 5300sqft including the basement for $2900 including property tax, mortgage, and insurance. There's absolutely no way we'd be living where we are if we waited even a few months longer

[@economath8164]

Graham left out probably the biggest benefit of being a homeowner: the enormous tax benefit when one sells, provided one has lived in the home for two of the last five years. For single, the first $250k in sale profit is tax exempt; for married, the first $500k. The homeowner gets to write off the selling costs as an expense, and capital gains tax rate on any profit above the exclusion amount is likely to be lower than the marginal tax rate on one's wages.

[@downsh1ft167]

I live in Florida and it's pretty awful to buy or rent here currently. Houses that were $300,000 in 2019 are now $750,000+ now even with the crazy interest rates

[@dewaard3301]

20 years down the line though, my mortgage payment is still $2k a month, but rent went from $2k to $6k. Plus, I now almost own the property. Enjoy your rental.

[@dannymartial7997]

I hate when rules are based off GROSS income. It’s so dumb, because taxes are different everywhere. Make it NET, so it’s actually accurate.

[@Joshua-lj7rq]

A question I'd have is how strictly to definite "rent". Should the 20% just be the base rent, or should that also include any additional fees for parking, trash, water, sewer, etc?

[@Yousmelllikemyshoe]

Everything included

[@gamerbro52]

"Whats up Graham, its guys here"? XD

[@txl1472]

I was looking for this comment 😂

[@Chris_at_Home]

I live in Alaska and own a few small modern energy efficient places. No income tax, sales taxes only in some locations and it is low. Property taxes are 1.3% which is high but as a senior I get $258,000 off my tax assessment. It is expensive to live but incomes are good for skilled people.

[@elvinrivera5638]

I only make about 1,400 per month working 30 hours overnight for Walmart in Puerto Rico and pay 700 for my rented apartment in Manati, which was the cheapest one when I got it… Im also a university student so I don’t really have a lot of extra time and I’d I don’t even have enough time for sleeping…

[@patricpolac50]

I live in Fresno... run a respectable small biz... and to hear that in order to live a comfortable life, IN FRESNO, I should make about 200k a year is extremely disheartening 😓 blue states are the worst for low/middle class working people. I have clients that rent new luxury Apts for 260 a month living hood-rich lifestyles. When will this backwards mentality end?! 😤

[@keepmusicevil89]

Just left Fresno for that reason bro. Was working everyday of my life and it was still not enough. Good luck bro

[@jaggaadaku]

Thank you Graham. There was a lot of value in this video 😊

[@fhasalalam]

Interesting and valuable video, thank you!

[@abrammartinez9855]

Love these “every day consumer” videos

[@anythingbutmyname5803]

No interest rates are not your issue. You’re not being paid enough and mega corporations are buying up houses driving prices higher. The 3-4% interest rate increase is not keeping you from buying a house

[@NewChoices32]

Do homes that’s between 150k to 350k

[@alangonzalez5198]

I always thought it was silly to use the “30% of Gross Income” guideline. I go by Net Income on everything.

[@OveranalyzingEverything]

Right? Since it highly varies by state in terms of taxes taken off. If you earn 7k a month. You don't take all of that home. Maybe like 4500 to 5k. And a 2k/month home according to those gross income calcs is like 40% of income. Which is ridiculous

[@reptiledysfunction3519]

Furnishing a home ain't cheap. I bought a house way below my means because I enjoy vacations, going to concerts, etc. Also being able to save money every paycheck is a good feeling.

[@Tanyagggggggg]

I purchased a lake lot and planned to build, paying cash. We make $160,000 total per year and live in Wisconsin. When building we will double our current home value and triple our current taxes. Is this going too far knowing we make $160,000?? We are 40 & 48 and plan to retire at 65.

[@philochristos]

If you spend too much of your life renting, you'll never be able to retire. Rent always goes up, but houses can be paid off.

[@SwerveNSEclipse]

Hey Graham. I like your videos but I thinks it can be hard for younger people to find a livable house based on the rules you talked about. Take this as you will but I’m 24 and just bought my first house for $370,000. That’s $2500 with current interest rates. I only make $58,000/year which is $3000 after tax and retirement investment. It’s good to note I lived at home until I saved up enough to put 10% down. Now I’m aware spending $2500 month on my mortgage when I only make $3000. But here’s the catch. I’m renting the master bedroom to my my brother which has its own bathroom for $1000 a month which make my mortgage $1500. Now 50% of my income sounds much better. My house needs a little work which I’m totally capable of doing. Side notes I have ZERO debt aside from my house. I think it’s important to sometimes take the risk which in my case was buying a house a little out of my budget instead of paying someone else’s rent. I wanted to buy a duplex but there were $500,000 in my areas… PNW.