#Home

[@newworldmoney8926]

Great conversation to help reset your emotional conditioning to wanting to buy immediately.

[@thomasmiller9502]

Excellent. Very thought provoking. Also, glad to see that the dogs are getting credit in the "bump". And the final scene is really cute.

[@ScottAlanMillerVlog]

Thanks :)

[@PriboyCanada]

I came to watch video about Nicaragua and actually got something better. Lots of wisdom. You're right, Scott. How could one stand against the pressure of owing the house though ... when family tells you this is how they want it :)

[@Stitch-smart]

Well apparently the diamond market is what pushed the diamond for engagement rings - ads. Same goes for the soap industry - for people showering every day - mostly to just sell more soap.

[@ScottAlanMillerVlog]

Yup, all false markets that get people to spend outrageously inflated amounts on things of intrinsically little to no value. It's speculation and the potential of implosion is high.

[@kevinadams9468]

Having your own hone is usually a good thing. BUT: for the people saying buying is always preferable top renting, you brought up the unseen costs already. For me, the caveat of owning a home is actually OWNING it, not paying a mortgage and pretending you actually own it. I purchased all of my homes in the inner city, distressed or vacant, and rehabbed and re-sold them mostly by myself. I have always owned my home, sometimes several at one time. The idea that you should own your own home is an American pipe dream. It is the same with cars. Americans, especially young Americans, think that if you don't have a new car and your condo or home after graduating with a worthless degree and 200,00 in student loan debt, somehow you are failing! It is all marketing to intentionally increase debt and entrap Americans in a consumer apocalypse.

[@ScottAlanMillerVlog]

Having a home is great, it's the process of buying one that might bring problems.

[@earlkitsch1155]

In Canada owning a home long term provides equity, renting provides no equity also it is cheaper owning then renting at this time.

[@ScottAlanMillerVlog]

That's what people say. But home equity isn't the value that the words sound like. Where is renting more expensive? People say this a lot, but rarely can show me examples of it. Remember that you must include all repairs, taxes, down payment, insurance, HOA and time value of money when comparing. And those are just hard costs. I have an entire additional video on this uploading now. Renting is essentially never the same cost as buying. www.moneysense.ca/columns/qualified-advice/renting-vs-home-ownership-can-you-be-financially-secure-without-buying/

[@ScottAlanMillerVlog]

Likewise, renting allows for investment equity that in nearly all cases outperforms home equity. In the investment world "home equity" is a negative, not a positive. The push for Americans and Canadians to view home equity as a special thing is the very social marketing that the governments use to tax the poor that I talk about in the videos... and basically all financial analysts talk about. There are basically two groups of people: those that make money selling real estate who claim buying a home is a good financial decision, and people who are just trying to make a sound decision who say "it can be good, but most of the time, it is not."

[@johnsg8]

When the average household income in the US is 100k, buying a 500k house is a normal thing. TBH, two college educated people in the NY metro area are probably making more like 150+. The purchasing decision also gets pushed because the cost to rent and own are almost identical, the only difference is down payment. Now this only make sense if you live in an area for longer term, >3 years or so. So are you suggesting that people in the US should be in more multigenerational homes?

[@ScottAlanMillerVlog]

A $500K house on a $100K income isn't normal at all. That's a crippling debt load, even if interest rates are super low. Housing cost shouldn't really exceed 35% of income, and ideally you want it lower a little (but it should generally remain your largest budget item.) The cost to own and rent are rarely identical, it can happen, but renting is normally more affordable. But to hide this, people often compare mortgage and rent, which are different items. I've owned many homes, and own some now, and owning requires either lots of DIY which still involves materials and tools; or it requires hiring people to maintain it. It also requires taxes. It might involve fees (HOA and such.) When people compare owning to renting, they typically only compare the "half" of the owning cost, while comparing the entire renting cost. For some reason, Americans are desperate to paint ownership as being cheaper than it is. No one is ever willing to compare actual costs, everyone is afraid of admitting that renting, like most of the world, makes more sense. And yes, I would say for individuals, it is best that people move to more multi-generational housing. The idea that every 18 year old should be paying for their own place to live, while their previous space in their parents' home goes fallow or becomes the "craft room" to fill the space is financially crazy. Almost nowhere in the world are teenagers expected to be able to live on their own, and few places make it harder at the same time. A teenager with a job can easily get their own place in Nicaragua, but essentially never do whereas a teenager in the US can hardly conceive of doing that, but often make the attempt. As a society, it benefits Americans to have everyone overpay for homes and take out crippling loans and live in debt. It makes OTHER people work longer and pay all their earnings into big business and government. America's process today benefits society the most, but making the housing system a voluntary "tax" paid by the foolish. While the rich and those that study and think, can use multigenerational housing and renting to move up the income ladder faster. That's what is nice about the American system... it doesn't force anyone into the trap, it just let's people voluntarily do it to the benefit of those that can resist the social pressure to harm themselves.

[@DSOm42]

The new American Dream is to leave!