Buying a Home at 7% Interest Is A Mistake

[@MrDeltaMaster]

I’m waiting for interest rates to get to 10% for the challenge

[@JavyVidana]

Is this real chat??

[@Miranda3730]

😂😂 daum! good one!

[@dylanbly3468]

If 10% rates mean that house prices drop a decent amount it, I might prefer it as well

[@InvestWithFFI]

@@dylanbly3468 lately it does not seem that increased interest rates lead to a drop in price, so be careful with that. I think that used to be the consensus, but I would argue that is no longer a forgone conclusion.

[@misterogers]

@@dylanbly3468 I can see this potentially happening if the fed goes overboard with cuts supercharging inflation needing even higher rates. Odd are very low, and it would kill the economy and house prices.

[@gingerkilkus]

Back in the day, when I purchased my first home to live-in; that was Miami in the early 1990s, first mortgages with rates of 8 to 9% and 9% to 10% were typical. People will have to accept the possibility that we won't ever return to 3%. If sellers must sell, home prices will have to decline, and lower evaluations will follow. Pretty sure I'm not alone in my chain of thoughts.

[@fadhshf]

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.

[@hasede-lg9hj]

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.

[@lowcostfresh2266]

Impressive can you share more info?

[@hasede-lg9hj]

There are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with Rebecca Lynne Buie for about 3 years now, and her performance has been consistently impressive. She’s quite known in her field, look-her up.

[@hasede-lg9hj]

Rebecca Lynne Buie, a highly respected figure in her field. I suggest delving deeper into her credentials, as she possesses extensive experience and serves as a valuable resource for individuals seeking guidance in navigating the financial market.

[@yourbuddyguy9965]

Two years ago, I heard opinions that I was buying at the worst time, that prices were about to crash and interest rates were too high. The house has now appreciated >7% and there’s no way I could get the 5.6% rate that I did if I were buying today. Nobody knows for sure what the future will hold - the time to buy is when you can responsibly afford to.

[@monicarenee7949]

I came here to say the same. I bought in 2022 at 4.99% and was told I’d end up underwater on the mortgage. My house has since appreciated 15% (very desirable area) and I’m glad I caught the rate I did because they aren’t coming down any time soon. I bought here because I needed to be in a better area for my kids, but it ended up also being a good financial decision.

[@stevee2639]

Refinanced from 3% to 7% just to make myself grind harder 💪💪💪

[@JordanPrieto]

😂🤣

[@ajvalencia1264]

I hope you’re not actually this dumb

[@Grace.h-t8o]

More than 80% of newly-built single-family homes sold in 2019/2022 belonged to an HOA. during the 2004 housing boom-home prices were significantly inflated, leaving people unable to sell later because they owed more on the house than it was worth. I know several people who bought during that time, thinking it was a good investment, but it wasn’t until the COVID housing boom that prices finally returned to those original levels.

[@BrendaHorne-y7k]

To balance out your real estate holdings, I suggest investing in equities. If you're cautious, even the worst recessions can present fantastic buying opportunities. Additionally, volatility can produce fantastic short-term purchase and sell opportunities. This is not financial advise, but you should buy immediately away because money isn't king right now!

[@Michaelparker12]

I’m quite lucky exposed to personal finance at an early age, started job 19, purchased first home 28. Going forward, got laid-off at 36 amid covid-outbreak, and at once hired an advisor to help stay afloat. As of today, my portfolio has yielded over 300%, just about 10% shy of $1m. Stay motivated friends

[@Thompson-e7h]

bravo! I've worked in real estate for over 25 years and have neglected a major stock portfolio, but I need a different plan now... mind if I look up the professional guiding you please?

[@Michaelparker12]

Stacy Lynn Staples is the licensed advisor I use. Just google the name and you'd find necessary deets. To be honest, I almost didn't buy the idea of letting someone handle growing my finance, but so glad I did.

[@Agatha.wayne0]

thanks for the lead. I just searched Stacy by her full name and easily spotted her profile, no sweat. I have sent her an email, hoping she gets back to me soon

[@San_Juan_Grand_Prix]

I’m lucky because I just closed on a home at 6.99% instead of 7 lol

[@user-zk6fc3dw9e]

You got 'em! 😂

[@Tunechi65]

Just closed 2 weeks ago. 5.75% rate. Found a very small bank that undercuts eveyone. At closing, nobody could believe i was able to find such cheap rate. They say you can't time the market but i somehow was able to

[@thejakelegion]

I'm closing at 6.875 and I'm thrilled lolol

[@Dee0426]

@@Tunechi65i got a 5.5 in early sept

[@ashdobbs]

@@Tunechi65 my rate is 2.75% I timed it perfectly-not you

[@leri3365]

I bougut at 7.5 last November with no competition on an amazing 400k home in Orlando. Just financed to 5.75% just a few months ago and it feels nice. Now I put that extra 250-350 as an additional payment each month to lower the time drastically

[@SamuelClemente7718]

👍

[@thebestthingthatneverhappe6729]

how many years will it cut off from your mortgage?

[@SilverEagleStacker]

You don't actually need credit to buy a house if you are debt free. It's called manual underwriting.

[@SilverEagleStacker]

How have the recent hurricanes 🌀 impacted your insurance? I was actually there during the hurricanes. That was bad timing on my part.

[@mmial9165]

That’s good because rates have not been below 6 for awhile now.

[@AmaraDavies]

I'm eager to start my investment journey, but I need guidance on where to begin and how to make informed decisions.

[@JaneClinton-eu6ss]

To make informed investment decisions, it's wise to consult financial experts like Della Martin, who can offer valuable insights and tailored advice

[@RobertBruna-c9s]

Through a strategic investment in a diversified portfolio of high-dividend stocks and ETFs, I successfully generated a substantial return of $115,000

[@AmiliaCarlos]

Della Martin is a trusted and experienced trader; partner with her to achieve your financial objectives.

[@MartinsDowell]

Are you familiar with her? Her remarkable success story has garnered widespread attention, and she's built a reputation for being extremely reliable and trustworthy.

[@armstrongdaniel5500]

I'm in full agreement. Her sincerity and transparency make her a highly respected and admired individual.

[@johannamiller527]

Oh Jeff from Michigan, you sweet summer child. "Just wait for the crash," indeed. I'm old enough to remember the last time the real estate market crashed, and I can tell you two really big, important things about what that was like: 1. It wasn't just the housing market that crashed - it was the whole economy. People were losing jobs left and right, their investments were tanking, their credit cards were getting cancelled. Even bank accounts didn't seem totally safe. It was a scary time. To think about saddling yourself with a bunch of mortgage debt was a scary prospect. 2. Nobody knew how much further home prices were going to fall. In a lot of places, even when the market hit bottom, prices still seemed high compared to where they'd been just a few years previously. Stories about people who were underwater on their mortgages and couldn't sell - and couldn't even refinance to take advantage of lower interest rates - were all over the news (and all over social media, such as it was at the time). Nobody wanted to be one of the next round of suckers to end up in that situation, and a lot of people were wary of buying for that reason. So yeah. Go ahead and wait for the crash. See how that works out for you.

[@DMAN590]

it would work well if you have significant deployable cash in that scenario, it would be great actually.

[@user-zk6fc3dw9e]

​@@DMAN590 Meanwhile most people can't come up with $500. There are very few people sitting on $100k+.

[@johannamiller527]

@@DMAN590 Indeed, "just have more money" is excellent advice in all kinds of scenarios. Seriously, though, that's exactly why my response to the 2008 crash was to sit tight and start saving aggressively (even more than I already was). Prices had risen a lot by the time I was finally ready to buy, but my bank balance had risen even more, so it was all good.

[@Dallas6501]

​@@DMAN590people with that much cash in hand don't watch this videos. They just invest in other things.

[@bethan.gruffydd]

@Javier, it's like this person who wrote you hasn't even actually watched your videos... I've always appreciated how clear you've been that buying in these conditions is NUTS and not for everyone. You're hardly "contributing to the downfall of society" LOL. Ridiculous hyperbole. Your channel is the only good/honest one I've found about U.S. real estate. Please keep up the good work! Love your channel.

[@blipblop92]

Plot twist: 60-yr average mortgage rate is 8% 😅😅 just buy if you need a house, refi later if the rate drops

[@TheMutchas]

Austin is one of those areas: 4k mortgage or 2k to rent the same house…

[@vasiliytereshchenko1994]

Yes , screw buying now

[@Dlomaceda]

Vegas too

[@yourfavnurseb9699]

My husband and I just paid off our car after one year of owning it and now we're using that same fire to save an emergency fund and house fund. We're not caring about the interest rate we just want to get something we can afford that fits the needs and goals of our family. Thanks for all of the encouraging, entertaining and informative vids, it looks like we should be buying within the next year. Sidenote: One day you're gonna be the dad that your kids and their friends from college come visit, that's wild man, like can you imagine?!? It's like you have to really be an adult then, dang makes me think about when my kids are in college, omg im not ready.

[@BitsOfInterest]

When in doubt, zoom out. Home prices rarely go down. Ask your parents or grandparents what interest rates were in the late 70's early 80's... 6% is around the long term average, so it won't go down much from here.

[@morgansofia]

fear a housing crash due to people buying homes above asking prices with little equity. If prices drop, affordability and potential foreclosures may arise, worsened by future layoffs and rising living costs. I want to invest more than $300k, but I'm not sure on how to mitigate risk.

[@LUCIASMITH-d1z]

Got it! Buying stocks during a recession when prices are down could be a good move. You might get them at a lower price and sell later when they go up. Just do your homework and be aware of the risks before diving in!

[@richardhudson1243]

That's awesome! Investing in stocks with a reliable trading system can lead to great outcomes. It's fantastic that you've been working with a financial advisor for a year now. Starting with less than $200K and being just $19,000 away from making half a million in profit is impressive! Keep up the good work!

[@winifred-k9e]

Mind if I ask you to recommend this particular coach you using their service?

[@richardhudson1243]

When ‘Melissa Terri Swayne 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.

[@amoreauMike-t6z]

I just looked her up on the internet and found her webpage with her credentials. I wrote her an outlining my financial objectives and planned a call with her.

[@JeffreyQProductions]

Javier, I've never seen your videos as anything other than extremely transparent and informative. Sincerely, a Jeff from Pennsylvania.

[@thomasream7532]

Mexican Caleb hammer.

[@AdroitTony]

Your video about finding our "why" really helped remove the mental barrier that I was waiting for the next housing crash. I couldn't live with my MIL in the City of Maricopa anymore because the commute was 1 hr and 40 mins one way to keep my kids at the same school in the area I was looking to buy. I could buy, so i just did it. Found a house that was in my desired area that was on the market for 100 days. Received a price cut, concessions, and seller credit for 6.1% interest all while moving at a calculated pace. Never felt rushed and just walked away when they didn't want to originally counter. I'll just have to wait until the next time the economy needs a stimulus with low interest rates to refinance. Just thinking about how TSMC, their supporting indusrty businesses, and other "made in America" manufacturing will maintain pressure on the housing market here in Phoenix unless something drastic happens.

[@maxpayne044]

People have been waiting 4 years for this "crash" to happen. Yet in some areas houses are actually increasing in prices. There is no crash, we all have been lied too. Renting sucks period, owning a house means you don't have to look for a new place yearly.

[@riyatomar4555]

That’s me. I won’t wait anymore

[@Nevil_Samnauth]

This video came at such perfect timing, ive had to explain to some friends that me buying a house now does not reflect a proper financial investment. My situation is I'm 31 years old, lived at my moms my whole life and saved up to finally buy a house with my soon to be wife. I dont want to take 100k and throw it at shitcoin "I'll make a better profit off of that". I cant live inside of a stock or coin. People forget that people buy houses to live in and not resell for profit. Like come tf on. Same people that live in basements too renting.

[@eliminatorxx713xx]

That great to hear. I bought my home early this year and let me tell you it’s life changing. From living home with my parents all my life to have your own place is cool and will challenge you but it well worth it. Regardless if you think of it as an investment or not, I would rather pay “to live in a home” that will eventually be mine than to burn money on fire because of rent ect. Good luck on your purchase or if you already bought, congrats.

[@Nevil_Samnauth]

@@eliminatorxx713xx thank you! Definitely looking forward to it with all the challenges but I'm excited to finally do things ourselves. Should close in january !

[@Fwilrtr]

Very important to invest the difference between renting and the cost of owning. After 15 years you could have enough to buy a home cash.

[@WillV_]

went from 7.875 late 2023 to 5.625 after refinancing last month. Home is valued a good amount more since we bought when there was very low demand due to rates

[@marcenelj]

Did you have to buy points to get this new rate?

[@marcenelj]

Did you have to buy points to get this rate?

[@WillV_]

@@marcenelj nope. If you are a prime borrower and find a good broker, you should be able to get under the average rate by a solid amount. Average at the time we did our refi was 6.1

[@marcenelj]

@WillV_ 30 or 15 years?

[@WillV_]

@@marcenelj 30 conventional

[@rutchjohnson]

In my opinion you should buy when you are ready. If rates increase well aren't you glad you bought when they were lower? If they stay the same then aren't you glad you bought when you did because things never changed. If rates decline then you can refinance.

[@LegDayLas]

They need to drop quite a bit for it to make sense to refinance, and you still already locked in prior payments at the higher rate. Not saying waiting for a market crash is the right option, just that the option to refinance isn't so clear. It can make sense, but usually doesn't.

[@ReynaldoVelasquez]

That’s what it is for me. School district. Stable place to live, no more lease renewals, wash my car how I want, bbq in the back yard. Decorate how I want. Then I’ll eventually rent it out

[@andrewbergh2727]

You just convinced me to live full-time in an RV

[@Jeffreyhenry-p5i]

✨🕊️Merry Christmas to you all. I am so happy and favored. My life has changed. I just bought my dream car yesterday. Still have my incoming weekly income of $24,000. Now I can help people around me and also supports God work at my church🙏🇺🇸

[@ShelleyMeloche]

YES!!! That's exactly her name (Georgette Wong) so many people have recommended highly about her and am just starting with her from Brisbane Australia...🇦🇺

[@BobbieSchmitt]

She's my family's personal Broker and also a personal Broker to many family's in the United states, she is licensed and a FINRA AGENT in the United States.

[@GleasonRodrick]

The very first time we tried, we invested $1000 and after a week, we received 4500. That really helped us a lot to pay up our bills.

[@myragrindheim3750]

Georgette Wong has really set the standard for others to follow, we love her in Canada🇨🇦as she has been really helpful and changed lots of life's

[@munipradeep]

This sounds so good and i would like to be a party to this, is there any way i can speak with her?

[@michaelwiebeck3]

People will have to accept reality that we won't ever return to 3%. If sellers must sell, home prices will have to decline, and lower evaluations will follow. I now look towards the stock market to fuel my millionaire goal. Sure I'm not alone in my chain of thoughts.

[@Dantursi1]

U.S. stocks have historically been the best investment. Home prices will need to fall at least 40% before the market normalizes.

[@CindyValenti]

@@Dantursi1 I like both. But in my experience, most of the millionaires I know have gained their wealth through diversified investments and they all had a sort of financial advisor helping out with informed decisions.

[@Derekhoffman312]

Straight up! advisors are the ideal reps for investing jobs, and at first hand experience, I’ve maintained a balanced growth portfolio for 5 years now, resulting to a 7 figure account after 100s of thousands invested so far. nothing beats expertise.

[@Olsontim21]

I've worked in real estate for over 25 years and have neglected a major stock portfolio, however I need a different plan now.. mind if I look up the professional guiding you please?

[@Derekhoffman312]

I've stuck with the popular ''Annette Christine Conte'' for more than four years now, and her performance has been consistently impressive. To be honest, if it wasn't for the pandemic, I wouldn't have supplemented my stream of income, but so glad I did.

[@goodyangie1]

The pros of high interest rates is the negotiating edge that can give a buyer. At that point, people just have to be savvy about their finances and know exactly where they're at, what they can afford, etc. I think you've done a really good job balancing both. Like you said, maybe you might be biased but you've done a great job delivering a message that helps the average person make a more educated decision. If you go on to make content about why people shouldn't buy because of an uncertain market crash, that would make you no different than the rest of the RE content creators, which we already know... create the content just for clicks. Keep up the great work, I think whoever sent this email has probably not watched enough of your videos to make a fair conclusion.

[@AJourneyOfYourSoul]

I know people who have been renting for over 25 years now and all they talk about is how much money they save in maintenance, lol. Of course they have paid 25 years of rent increases and will continue to pay those increases. Instead of buying themselves a house, they bought a house for someone else. Owning a home to put inflation in your pocket and secure your future housing needs is absolutely vital. It doesn’t take that many years for inflation to outstrip your income and while you are moving to a cheaper (ie worse location) to afford rent, owners have secured their location and living in homes they could never afford today. That is the power of home ownership.

[@misterogers]

The interest rate is not high if you look at historical averages. It is the prices. Rates are average to slightly below average and prices are high compared to income. This varies wildly based on where you are buying. According to data from Trading Economics, the average 30-year mortgage rate in the United States over the last 30 years is around 7.72%, with the rate reaching a high of 18.63% in 1981 and a low of 2.65% in 2021. However, if you look at last 10 years, it is closer to 5. People don't remember how high rates were in the 1980's, but prices were low.

[@DMAN590]

Exactly, anyone suggesting rates are the issue, is either ignorant or in on the scam.

[@misterogers]

@@DMAN590 Or more likely they only consider the very recent past or are unaware of the more historical past. To be fair, if you look at only the past 5 years or even 10, they are somewhat right. However, it is foolish to look at such a short window of history. There is also a likely emotional angle since very recently rates were lower. It also probably a desire to oversimplify things. Assumable loans and buyer buydowns (for new constructions) still exist for lower rates, but the prices are not assumable.

[@DeathsInverse]

But how high rates used to be when prices are lower means nothing today when there's no significant price reduction in sight. The way things are now, the rate is a major factor.

[@DMAN590]

@@DeathsInverse and you expect prices to do anything other than skyrocket if rates go back down?

[@DMAN590]

@@misterogers I agree. Like I said, ignorance.

[@joelcleare]

Markets ‘crash’ then investors will snap them up which in turn will keep prices high.

[@wandak1889]

Exactly! What happened in 2008 will never happen again as fair as getting house for $40-50K. It’s over the investors are going to take over and purchase them at the 400K plus. If people are losing their jobs be grateful that you are renting or have a house you can afford. There is no more flipping real estate for the average American.

[@ClaudiuDenis-hp4pf]

It’s really heartbreaking to see how inflation and recession impact low-income families. The cost of living keeps rising, and many struggle just to meet basic needs, let alone save or invest. It’s a reminder of the importance of finding ways to create financial opportunities. You've helped me a lot sir Robert! Imagine i invested $50,000 and received $190,500 after 14 days

[@grizbaseball]

Absolutely! Profits are possible, especially now, but complex transactions should be handled by experienced market professionals.

[@FannyMontage-xu8id]

Some persons think inves'tin is all about buying stocks; I think going into the stock market without a good experience is a big risk, that's why I'm lucky to have seen someone like mr Robert L Cox.

[@amytuttle1621]

Finding yourself a good broker is as same as finding a good wife, which you go less stress, you get just enough with so much little effort at things

[@ufuksenol2005]

Cox demonstrates an excellent understanding of market trends, making well informed decisions that leads to consistent profit

[@PineHosting]

I'm surprised that you just mentioned and recommend Mr Robert Cox. I met him at a conference in 2018 and we have been working together ever since.

[@nathanielladouceur7022]

Something people don’t think about is the alternative. Rent prices will continue to climb and few years later you’ll realize you’re paying less for your mortgage than the average cost of rent

[@SamuelClemente7718]

Mmm Sometimes. ..... Maintenance cost triple for me

[@JoeyOlin]

buying a house don't forget you need to pay property tax for ever and maintenance cost. For renting you don't need to worry about this.

[@nathanielladouceur7022]

@ these things are built into rent prices. You’re paying for them - they’re just not itemized.

[@RichardCheny]

@@nathanielladouceur7022 most brain dead npc response I always see. Duh it’s factored into rent. You know what else is? Maintenance and repairs. It’s pretty nice not having to replace my fridge, my AC, and my roof.

[@nathanielladouceur7022]

@@RichardCheny not sure what point you’re trying to make here bud lol.

[@jasskaur128]

Javier, I have never felt that you push people to buy at any time (neither in 2021 nor now). Jeff probably only saw 1 of your videos and might not have watched that video in its completion. I have always found your videos helpful.

[@triaxe-mmb]

People need to think about more than the blip of the last 10-15yrs...even 7% rates are basically normal. People were paying double digit the rates in the late 70s and thru most of the 80s, and even into the 90s and early 2000s the rates stayed between 6-9% The okly reason we aaw thew low rates was because of the great recession and as rates finally started picking up from there, the pandemic hit. We will almost never hit those sub 3-4% rates again unless millions of people lose their jobs and the economy becomes a dumpster fire for most of us...

[@triaxe-mmb]

Also a sustained period of 6-7% rates (or any number that's close to historical normal so between 5-8.5%) will help stop the hyper inflated price appreciation that cheap borrowing allowed...all without people losing jobs... As that price growth slows, you get a chance for income to catch up with the cost of the asset...this more than anything else is why we the affordability is so bad...the asset has gone up much faster than income so the borrowing is painful and we are begging for lower interest rates...

[@jimmyjay689]

I heard the same thing when I bought at 6.25%...thankfully I did....gonna be my 2 yr anniversary in June😊

[@eliminatorxx713xx]

Congrats Jimmy 👍🏼

[@jeremiahmendez9696]

@jimmyjay689 did you guys refinance at anytime or no

[@highvibrational2007]

7-10% interest rates are not crappy! The prize of the goddamn homes are! The letter is really waiting for the crash to get a cheaper price, not interest rates....lol

[@romeocalmo]

no matter what your interest rate is, what we can guarantee is that in 10-15 years, there will be a strong chance you will be glad you bought a home.

[@donnynguyen5711]

Couldn’t agreed more.

[@rathelmmc3194]

I don't agree with this. I'm in the crash camp, but even if you're not in the crash camp there's a very real probability that we have at least a 1980s style decade for housing. Prices during that decade declined in real dollars. Sometimes you can just lose with real estate. It's not a magic asset class.

[@user-zk6fc3dw9e]

​@@rathelmmc3194 People buy with nominal dollars. Tell crash bros they will have a real decline but not nominl decline and they'll argue tooth and nail.

[@johntrevett2944]

What people don't seem to grasp in the "crash camp" is that all desirable houses will immediately be bought by companies like Blackrock who have unlimited access to cash. It doesn't really matter at this point. Interest rates go down, prices go up. If you don't get into a house soon, you will be priced out and be a renter paying someone else's mortgage. Buy a house 2.5x your gross income, take out a 30yr and pay it off in 10-20 years. That's most people's option.

[@rathelmmc3194]

@johntrevett2944 blackrock doesn’t have unlimited money and I’d argue that the reason there’s a crash is due to a liquidity crisis and those things effect companies like Blackrock the most.

[@tslonaker4609]

We just purchased our first home. Less then 25% of our take home pay, less then the rentals rates in our area, 4.99% interest rate. Listening to KZbinrs like yourself, I learned to do it the right way. Thank you.

[@TuryLanderos]

What do you think about new builds with the buy down rates of 4%-5%

[@Stevenyc69]

Just understand that they are fronting the money to get you to that rate. So while you are paying less you will be paying a lot for APR wise tho right the length of the loan to accommodate for that.

[@darksideofthemoon19]

I’ll correct ya a bit, for the good school district/ good area, rent is 5k and mortgages with 20% down is around 10k lol😅 if someone didn’t buy before PPP loans went out, you are SOL.

[@Aminaber]

I 100% agree, it a control / power need over your own shelter and future. I had a former client lease a house for a couple years. The landlord increased the price $500 a month after COVID was just ending. The area school zone didn’t have hardly any inventory and the landlord knew he could increase the price and get it. So my client decided to move out . I loved your chat on this!!

[@InvestingWithAdamK]

I’m sorry to see someone email you that way. What someone saying that type of comment doesn’t realize is their advice to people not to buy can be just as damaging to someone as telling them to buy. They don’t seem to understand that. Nobody knows where markets go. We all have our opinion, but markets are markets and nobody can predict the future. They may talk someone out of buying for prices and rates to drift higher over next 10 years and the person they are “saving” never owns a home. That has consequences as well, but the person giving that advice doesn’t see that

[@michaele8896]

Simple fix, pass laws that require homes to be owner occupied. Get rid of speculative investors, short term rentals, etc.

[@everybodystaycalm5090]

What about HOAs? We have been looking for a house for a house, and there is nothing that doesn't have an HOA. All the ones we have seen and called the HOA are expecting price increases, and the average payment right now is about $400

[@InvestWithFFI]

Avoid HOAs like the plague. My only exception would be if it’s under $100/month and you literally cannot find any property without one.

[@LegDayLas]

Their are homes that are HOA free, tell your realtor the next home they show you that has a HOA is the last home that they will ever show you and that should fix your problem. Go find someone who actually shows you homes that meet your interests.

[@mgmaybep5322]

California here. Rent is $5300. Mortgage for the same house would be $10k+ with 20% down. (Last time I checked at least). Not a mansion or McMansion either. 2500sf, good city, good schools.

[@giniaa2707]

You handled this very honestly, yet skillfully!

[@KarrinaTaylorBrown]

When I started selling homes, the interest rates were around 15%. We took out an adjustable rate mortgage, and our payment kept falling. That house appreciated from $99,000 to around $650,000. I hope that they don't drop interest rates. If they do that, then because we have very scant housing supply here in Northern Virginia, house prices will go up again!! Yes, house prices are too high. Lowering interest rates will increase the darn prices. At this time, the high housing prices are leading to more income inequality. Many young home buyers are using large ($150,000-$300,000 down payments from family). For the prior 40 years, young buyers were saving for their own down payments.

[@MargaretWest-m8u]

It's time to acknowledge that a return to 3% mortgage rates may be unrealistic. If homeowners are forced to sell, we will likely see a drop in home prices, leading to lower property valuations. I know I'm not the only one who shares this outlook.

[@ToreyLanez]

If you're in the market, now is the time to buy. Home prices are unlikely to decrease further, and if interest rates do decline in the future, refinancing is always an option.

[@Toni__Michelle]

In my opinion, home prices need to decrease by at least 40% before the market finds balance. For those unsure about buying property right now, seeking advice from an experienced financial advisor for optimal portfolio allocation is crucial. This approach has worked for me-I’ve managed to stay profitable over the past five years, accumulating nearly $1 million in investment returns.

[@FrankJaaay]

That's impressive! I'd be happy to share more details. I understand the hesitation, especially when it feels like many firms offer similar services. However, finding a trustworthy advisor has been key to my success.

[@Toni__Michelle]

I consistently recommend Rebecca Lynne Buie as my top choice. She is well-known for her expertise in financial markets and has an impressive track record. I highly endorse her services.

[@CarddtReddt]

Thank you for taking my advice. I'm glad you were able to research her background and feel confident moving forward. I hope your call goes well-her track record speaks for itself, and I'm optimistic you'll find her guidance valuable.

[@micah_1198]

Hey everyone, the “power” he is talking about is absolutely relatable in my position!!!!! Currently my landlords had told me they were going to raise the rent and I agreed to it. But then they decided instead they wanted to sell the house!!!! So with that being said I wanted to buy the house but they were money hungry and it just wasn’t right for myself and my family. Sooooooo me being able to use my VA loan I decided to go buy a house for stability!! Keep in mind my wife and I were looking for the past 6months because when I got back from my 9month deployment from Iraq I had a feeling my landlords were going to pull something like this. In my opinion if you are in a position to buy and you need to move like my situation then absolutely look into it!!!

[@tears2040]

New Construction interest rates builders have 3.9-4.9%, they also help with well over $10k in closing costs. On top of that even if you qualify for around 5.5% you can then buy down your rate even further for lower. There’s many options of purchasing a home instead of just the standard rate. Buying a home may not be for everyone , but in the long term my opinion is it’s an excellent thing to have for your Family.

[@danaconda12]

10:09 This is the part my wife and I struggle with. Sure we could afford to buy a small house that fits our current needs but want to grow our family in the next few years. I could quickly see us outgrowing the small house we can afford in 5-7 years or maybe even less. Who knows what the market will do in a short amount of time like that. Would hate to buy and then be underwater when I need to move and then still can't afford to buy a bigger house that fits our needs. Glad you were able to buy a house that will be your home for 15-20 years but that doesn't seem anywhere near feasible in my area.

[@quuqeemonster]

Really a good one. You explain so well the feelings of wanting a house.

[@enoc2432]

According to data from Freddie Mac, the average interest rate for homes in the year leading up to the 2008 crash was around 6.03%. Good luck with a crappy interest rate on a house thats not worth the loan its financed on.

[@DMAN590]

The only valid counter argument is that the FED may cause prices to continue to rise as there is no cap on how much $$$$ they create out of thin air. In other words "The beatings will continue until morale improves" lol Other than that yes, the OP comment is correct, but it's not the interest rates that is the main issue, its the prices.

[@Dillon_DeHart]

Chiming in to say I'm happy I bought my mid-400s house with Javy May 2023 at a 6% rate. We sat on the sidelines long enough and decided things were not getting 'better' anytime soon. Now we're locked in (with a mortgage we can afford!) and sitting pretty through all the turmoil.

[@itsomni]

26 year old single guy looking to buy my first home. I was in that guy’s mindset for the past year or so, but I’ve gotten to the point that I’m tired of living with my parents and I refuse to rent. Instead of buying a home that’s 4-5x my yearly income, I’m looking at condos at roughly 2.5-3x. I can easily afford the payments and I’m going to be renting out a room to a friend anyways, so I’m going to be taking the extra and paying it off faster (avoiding extra interest). Let’s say instead I choose to rent for the next year. That’s 1k lost every month. I thought homes were overpriced last year, and guess what? In my area they’ve gone up another 10k on avg. If I buy, any losses are unrealized until I sell. Even if I overpay and the market crashes, I’m currently in a position where I could buy something else and rent the condo out until I break even and sell it, then put the remaining equity into the new home.

[@alphabetsoup848]

Keep your chin up i like your content it seems that you keep people informed even against your personal interest. What ive gotten from your info is that the market isnt right for me persay but if someone understands a home is a purchase and not an investment anf they are ready for that purchase then they should buy but wise about it. I think the landscape would be worse if you didnt keep folks informed. EDIT i will say though, you get power from a house but that power costs and that cost can overtake the power you gain. Sometimes just having that money grow in a liquidable asset might give freedom beyond purchasing a house. Sometimes its better to just find a good landlord that treats their property well vs buying an expensive home (but thats market dependent)

[@jeffreyuy1708]

Speaking of credit score really matters. What are your thoughts of manual underwriting? For people who don’t have credit at all. Will your interest rate be higher than someone with credit? And have you come across someone with no credit and still purchasing a home?

[@sarahuber8567]

Don’t listen… your videos and advice are spot on!!!

[@trucdo1564]

Hi my friend about to buy an brand new house $550k, she said the price was $650k so she will have $100k equity after buying it. It is on VA loan with 5% interest and no down money. Monthly payment includes property tax and home insurance Will be $3500. Her income around under 60k a year. Is it possible or she is not telling the truth? How the bank loans her that easy with one income of the family! It is hard after paying mortgage then nothing left to pay all of utilities or some emergency come up for maintenance or other things that don’t expect to come!

[@Policyparagon]

"Wait for the market to crash" My brother in christ, home prices are not coming down. The reality is there is not a good option, but buying is still the better of two bad options. If interest rates are high, rental increases will be high. With buying, you at least have the ability yo refinance at a later date.

[@angelspodcast1111]

I agree❤

[@Ultrajamz]

Instead of waiting for an unknown, I went with a new build with a 5% rate and argued the price down a pinch also.

[@janereinhardt4715]

Nobody has to pay any interest rate. My 1st house had an interest rate of 10 1/4%, so i paid it off really quick! My last 2 houses i have paid zero interest. It is up to you!

[@bos-lifetrucker9868]

Big up you are 1 of the realistic keep doing what you do bless up

[@chiquita5366]

Excelente video Javier and well explained 😊.

[@junkjanedoe]

Respect to you my brother. Loved how you handle comments like that. Kudos. ❤

[@JavyVidana]

I appreciate that

[@donaldlee6760]

If there is an imminent housing crash, the obvious choice is to wait and pay much less money, even if you had enough money to easily pay all cash. I can't see into the future so this advise does not help me.

[@wackman123]

Yeah 7% is high. But once it comes down it’ll be like 2020 again where the demand is so high you’re overpaying. I just paid $10k below asking price for a move in ready house. I’m super happy getting out of apartment living and will refinance when the time comes.

[@mattomara227]

Looking for a house in Northern Jersey. It’s a nightmare. 50 -100 other offers on any house that doesn’t need to be gutted. Most houses go 50-100k over asking. Property taxes are insane. If I didn’t work in NYC I would have left the state.

[@norbinhernandez4923]

I'm getting an 8 7% and I lacking of choices rent is ridiculous out here in long Island ny should I still buy ?

[@oscarrodriguez1068]

100% accurate. Homes are NOT short term investments. They are long term. I purchased in 2006. Right before bubble burst. Had 6.375% interest. 6-7% was normal back then. Stop focusing on the rates. Focus on “can I afford it”. What happens if a souse loses a job. Can we still afford it. Be aware of the phantom costs of home ownership. New roof, new AC, new sewer line…. It adds up big time.

[@kevingrant4491]

Buy a house at 7% just pay off mortgage early.......and refinance win rates drop. Waiting could take 10yrs.

[@marcelrodriguez2067]

At 7% the loan the bank gives you probably wouldnt be able to get you any house though depending on your income.

[@agourent]

There's definitely a lot of risk.. if home prices go down you won't be able to refinance and could get absolutely screwed with a high home price at a high interest rate.

[@PleaseEnlightenMe82]

It’s not simply the 7% rate, because historically rates have been double that before. The key is the price to income disparity. When interest rates were over 10% in the 80’s houses were 70k and households were making 40k. Now people are buying 600k houses with 150k household income. The math ain’t mathing

[@phillB]

When it comes to the purchase of a home interest rates are not nearly as important as purchasing price. If you don’t understand that, and why, you definitely should not be purchasing a home. BTW, you will certainly understand why this is true when it comes time to sell the home.

[@paulmorales312]

Houses are over priced wait one year The houses can go back to normal half the price.

[@user-zk6fc3dw9e]

Crash bros have been saying that since 2019. Look how that turned out.

[@jaimemarcial4994]

Jeff wants his reality to be everyone’s reality .

[@eliminatorxx713xx]

“If I can’t buy, you can’t either” ~Angry Jeff 😡

[@joseCalderon1976]

The answer is simple = sometimes people CAN'T WAIT due to divorce, a job change that will get their income much higher, a death of a partner (maybe they want to downsize), someone retired that wants to get into a condo instead of keeping their big house, people that have a lot saved up and are tired of renting (and they have a fully funded emergency fund of 6 months or more), etc. That's just a few reasons that I can think of why would someone want to buy a house right now. Come on now, not everyone can just wait for years and years to get into a mortgage. You keep doing your thing my friend. Carry on. By the way, I've never felt that you are pushing anyone to do anything. All I see is some good advice. I've seen your videos for a long time now, so yeah.

[@Kellie-z6x]

You’re right Javier, everything can’t be looked at in absolutes

[@TropicalTodd]

I bought my house with my credit card for the low price of 24.98%

[@Tunechi65]

Just closed 2 weeks ago. 5.75% rate. Found a very small bank that undercuts eveyone. At closing, nobody could believe i was able to find such cheap rate. They say you can't time the market but i somehow was able to

[@civicsport702]

Jeff from Michigan still lives at home

[@user-zk6fc3dw9e]

​@@jayk3551 Heyyy, Maaa! What's for dinner!? We having chicken for dinner?

[@matthewm3912]

Home prices are not going to go down. That is now how things work, things will only historically get more and more expensive.

[@teasteepedinmagic]

I know its a mistake doing 7% but i cant wait longer because i planned having a house first before having kids and my clock is *ticking*

[@fyi0beast]

I'm waiting for my 12 leg parlay to hit before I buy a home. Should be any day now. Then I wont have to worry about the interest rate :)

[@CorneliusRushtie]

Just closed last week for 4.625% new build special. 20% down, 379k sale. 7% wasnt going to happen for me on my watch.

[@jeremiahmendez9696]

I got a 295k home with a 6.3% I’m waiting for it to get to anywhere in the 5% range but idk if it ever will

[@JChe-ft4zc]

Another way of looking at 7% is the buyer is paying the bank what the seller paid both agents every year on whatever the principle is. Kinda crazy, but it is what it is. As a buyer, you can definitely wait this craziness out for sure, but will you have money whenever the crash happens and will you find any financing, if you need it.

[@kevmart7579]

After the Federal Reserve meeting today saying they’re keeping interest rates high long, just imagine those ppl who have those locked in 7% mortgage rates

[@murse_life]

i just closed at 6.5%

[@Ben-yw8be]

We bought a house 430k @ 6.3%. Not regretting it. I don’t want to be in a bidding war either. So there are trade-offs in each situation. Plus we can always refinance.

[@Boguardis]

Not even 1 minute in and I can tell you right now that this person (the writer) is living in the fucking la la land. I've waited for 5-6 years for the fucking housing market to go down and it hasn't. I'm not waiting any longer. If interest rates drop great, if they don't, whatever I still have a house.

[@jonheredia8789]

I own rental properties but have never bought a house its easier for me as a single man with no attachments to rent and let my landlord take care of the property.

[@Melodicinvestor]

Good solid advice. Not sure who these people are that clearly don’t understand real estate.

[@thecurator2626]

We are sitting with 6.62 right now. Not what I hoped for but the equity because of the low price we’re paying . . .

[@jimihendrixfriends226]

You’re covered, the people that actually watch you know that you’ve been saying this for years. You always tell us not to buy something we can’t afford. 7% does stink however you don’t know what’s coming no one does. 7% for a house is gross but you’re paying 100% interest for rent. 😅

[@mark.kendrick]

Mortgage interest is a write off plus you’re locking in a home value while inflation continues to inflate the value of assets including your home. Also, as interest rates drop values over the long term will increase and demand could jump which would make it even harder to buy. Wishing this person the best but they need to graduate their financial acumen from “debt or interest = bad” to leverage is a tool. Wield it correctly and it will allow you to reach places financially you never would have been able to without it.

[@carribbeanvixen]

My husband is trying hard to convince me to sell our 3.15% (2050 mo mortgage) to go rent the same size home for 2300+ his defense let's take the money out now and pay off 60k in debt. We just had our first child and I cannot imagine renting again. Especially with no long term plan or other factor.

[@daevdel2993]

i agree with the guy who commented. stop encouraging people to be housepoor. you know deep inside of you that it is not the best time to buy.

[@ErnDogg209]

If a house was 100k then i dont mind the 7% but, homes are 500k minimum in california if you dont wanna live in the hood. Bay Area and Los Angeles is an entire different story. 1 million and you’ll still be in the hood.

[@tbird6781]

lol