Let's talk being 'House Poor'.

[@southernfriedkiwi7726]

Location is everything. My wife and I bought a 4 bedroom home outside of Atlanta eight years ago. It cost us $180,000 and our mortgage was $585 a month. At the time, rents in our neighborhood were $1,600 a month. We just paid off our home(in eight years) and rents are now $2,300 a month. Housing security is extremely important. As a renter, you have none.

[@cyberpunkalphamale]

the internet has ruined this phrase. "House rich, cash poor". Meaning all your money is in the house and you have none left over.

[@chelseashurmantine8153]

Faaacts lol. Hate when that happens.

[@chelseashurmantine8153]

Though, I guess the language change is to hint at people that houses make one poor. Oh well.

[@ek6007]

I thought that's the tiny house movement.

[@DavidCruickshank]

@@ek6007 Nah, the tiny home movement is supposed to be the opposite. By buying/building a much smaller home, your expenses are way lower allowing you to have money financial freedom.

[@BREEZYM6015]

Not in my case. I bought a townhome though.

[@Missfoxtooyou]

I bought a small condo, it’s 460 sq ft. Currently, my mortgage is way less than the rent in my city. It’s not a house, I have to be. Mindful of my space and what I bring into it. But as a single woman, it suits me well. I do wish I could afford an actual house but reality is having a single income and I do not want roommates, this is the best solution for me.

[@Erintii]

I am also a single woman. When I lived in Toronto, a condo was the only option. Now I have an apartment and never considered a house . House is for large families.

[@gabepehrson3845]

But what is great is that you got your foot in the door!! The part that frustrates me about this video is she’s going off the basis of people being uneducated by their realtors, which does happen, but there is so much that goes into the process of qualifying people to buy homes now. And also that the people are going to buy their dream homes. In reality, as a realtor, most of the people I work with when they’re first buying a home are buying something small, most likely in an area they don’t love, and not their favorite style. BUT, they’re making this sacrifice for now, so that they can build equity, and start developing this appreciating asset now instead of dumping their money towards rent. I think your situation sounds perfect for you, and now you have some skin in the game and can use it to push your further in the future. If you ever decide to buy a new place too, you could even rent out that old one and I’m sure it would do great being a condo. Anyways, just my thoughts, have a great day 🙌😁

[@roysantiago9131]

Are you kidding me? Buying any property, even a studio, is a huuuge accomplishment!! Congrats! You’re building equity and your mortgage is much lower than what you would pay in rent. Keep it up!

[@PTPAUL-ry7jc]

Congratulations 🎉 Happy that you were able to find something that works for you and your pockets in your city!

[@recabitejehonadab2654]

Smart.

[@GreenPenguin82]

Agree with so much of this. My husband keeps trying to tell me we can afford a bigger house because our house has appreciated so much and then I bring him back down to earth and remind him we still have to pay off this one and due to mortgage rates being what they are and our mortgage being on the smaller side because of how much we paid when we did buy, all we can afford is a house the same size as what we own.

[@smileychess]

Exactly. I got lucky at 2.5% interest. So even though it's appreciated, there's nowhere to go right now.

[@EmpressCosplay]

Actual question: Do you actually need a bigger house or is it keeping up with the Joneses?

[@GreenPenguin82]

@@EmpressCosplay no, we don't actually need a bigger house. Would a bigger kitchen with a better layout be better? Sure but everything here functions just fine. A finished basement would be really useful but again, not a huge need. I just wish we lived on a quieter street but on the plus side, it's easy getting places.

[@taraskinner3847]

So true! My husband and I were fortunate to build a new home and sell our previous home before interest rates shot up. We missed the lowest of the low interest rates due to the timing of being able to sign with our builder, but the timing was still really good and a fraction of what rates are now. The base price for our builder’s floor plan also went up a lot after that too. If we wanted to do that now, it would be very different and not beneficial. Selling this house would be great, but buying a new one would not be great. I am perfectly happy in this home and definitely want to keep our living expenses reasonable!

[@jasperflontes4289]

All this boils down to finances. My advice to everyone is this : if you want to grow big this year especially in your finances. Be willing to make investments. Saving is great but investing puts you on a pedestal where you wouldnt have to worry about savings as you do now. Thanks to larysa Caba, my portolio is doing really great and im proud of the decisions i made last year.

[@seizethesubsea]

I bought a house with my ex when I was 24. Guess who's name was not on the deed but spent all their savings on renovations, mortgage, utilities, and insurance? It was me 🤪 Now I'm 27 and I rent. I've saved so much more than when I was with him. Make sure if you buy a house with someone, your name is on ALL the paperwork. Because it turns out love is not enough to have someone respect you during a breakup.

[@Rej-gc5zi]

Were you not married? Wouldn't that entitle you to half of the investment

[@jmsl_910]

@@Rej-gc5zishe said ex, not ex-spouse

[@Rej-gc5zi]

@ Right it's not always the same but I wanted to clarify.

[@seizethesubsea]

@@Rej-gc5zi we were engaged, but never got married. So i didn’t get any rights to the house unfortunately. It kind of worked out because i didn’t have to have a court battle for all of my things or my cat

[@Rej-gc5zi]

@seizethesubsea Ah, hard lesson to learn to never go in on big purchases or payments with someone you haven't married. Thanks for responding, hope the best for you moving forward.

[@Clarita98]

Currently house hunting here! The amount of offers we made that were higher than the requested price that we didn't get BECAUSE WE ASKED FOR AN INSPECTION is astounding! All of them we lost them against perople who didn't required an inspection before buying "because they wanted to make sure their offer was accepted" WHY WOULD YOU PAY A COUPLE OF HUNDREDS OF THOUSANDS OF DOLLARS ON A HOUSE BEFORE KNOWING IT'S CONDITION?" Anyway,be patient and ask for an inspection before making such a big purchase! If there are issues in the house that we cannot see I want to know it before buying a money pit!

[@tigertie7701]

Amen😢

[@taraskinner3847]

I cannot imagine buying a house with no inspection! That is SO risky. We had a multi-phase inspection when building our current house and had another inspection when our builder’s “everything” warranty was close to its end. We had our last house inspected and our buyer had it inspected too. I just cannot imagine skipping it completely. Even if nothing significant turns up, it’s money well spent!

[@LeviForWaifu]

Anyone who is weirdly insistent that you don't need to wear a condom, yeah, you need to wear one.

[@ClevelandLeah]

THIS. ALWAYS get an inspection!

[@bergencountyrealestate]

I bought no inspection but always tell my buyers to propose an inspection for informational purposes only except for structural, environmental, and mechanical issues

[@beanybean000]

the LA fires have shown me that the "investment" of a house can be gone in an instant :(

[@pablodelsegundo9502]

Especially when insurance tells you to f off, they aren't paying out. The entirety of Florida will be there soon.

[@Abby_Liu]

I think some financial channels have already made videos on how the fires have affected insurance. Patrick Boyle did one I think. I would imagine home insurance has gone to the pits in LA at the moment.

[@tamwilfred]

A house is only an investment if you use it to generate revenue; otherwise, it’s just like any other utility you use. I live near the Eaton fire, and I’ve seen the destruction it left behind. In Los Angeles, the most expensive part of real estate isn’t the house itself but the land it sits on. Even though people have lost their homes, they can still sell the land if they decide to leave. As for me, I plan to leave California in the future. The growing list of problems here is making it more and more unbearable to live in this state.

[@mariajoaoribeiro493]

@@beanybean000 it is gone for renters as well… the homeowners will have their money back from insurance… so I don’t understand 😅

[@kirstypoppy]

​@@tamwilfredhi in curious to know as someone who lives in the UK what is la like now?

[@lisaw1695]

When you have 3 kids in a 2 bed apartment with no yard, a neighbor who sits on his porch chain smoking so you can't open windows ever, and a couple above you who is always either screaming at each other or having loud intercourse you might not be so happy with renting. And renting in my town costs the same or more than a monthly mortgage. Thank God I bought my house when I did, I'd rather be house poor than go back to that.

[@kisaperez3057]

Our neighbors smoked pot and watched sports at night (while screaming at their TV, of course). That is after the couple before them set their apartment on fire and we had to all hang out in the rain with a baby in one hand a cat in the other while the fire was put out, and then look for a place to stay for a few days while the place was checked and approved to come back. Renting was so much fun, I totally don't miss it

[@Krystal_Kitty7]

Exactly, once you have kids everything changes

[@RikaEStudios]

A house works for you but it doesn’t work for others.

[@zwicker5585]

that can happen when you buy too? lol Its called living in a society. Other people are annoying sometimes. Also, I don't know a single area in the world where renting is cheaper than the costs of the home. Thats how they make money. They pay the mortgage and insurance and upkeep and then charge you enough to profit on a monthly basis

[@zwicker5585]

@@kisaperez3057 not sure what renting has to do with accidental fires. Buying or renting, people can light their home on fire

[@MH-tq5rp]

Renting is fine when you're young but once you have your own family it's nice to buy a home so your kids have somewhere stable to live and you don't fear getting kicked out because the landlord's family member wants to move in or they want to increase your rent over the legal amount so they kick you out and rent to another tenant for more money.

[@invisibleloveone]

True, but with renting, you can move at any time, and the market determines the price of rent, not the owners. It is not as easy to quickly sell a home. I work in the rental industry, and you'd be surprised how it is not as profitable as you may think in the post Covid era. Not all owners are getting a ROI

[@zwicker5585]

renting is almost never fine. Yeah if you are planning to live somewhere short term you might not want to invest into a home. But it will always be cheaper to own

[@zwicker5585]

@@invisibleloveone The market doesnt determine the price imo. Where I live, investors own most rental places and they don't budge on price when the market is less beneficial. They hold empty places and thus prices never drop they only rise. Plus, all landlords get an ROI in the long term, its just that they're greedy and want to take other peoples paycheques for their financial gain on a monthly basis instead of making less over the long term. If landlords were looking at the long term, even with no profit month to month, after a 30 year mortgage you'll likely make 300-500% profit which is far greater than any other investment, especially one that you don't have to pay for in the first place give you spent 20% down and the renters paid the mortgage and other costs for you. Most homes have doubled in price in just 10 years. That alone makes landlords some of the most profitable investors around lol This posturing as if landlords are hurting is total bs

[@IBx27]

If only the stable living space wasn’t dependent on a stable employment situation (something that changes every 21 months)

[@ShY_6593]

Agreed. Renting my home out is part of my retirement plan. It'll be paid off in 4.5 years and after that, all the money I used to put towards mortgage is going into savings.

[@joblaaa]

I hate how we have to decide between being house poor and dealing with predatory landlords

[@sLim88CPC]

We don't really. Need to be bit flexible on whereabout you want to live though, plus buy what you actually need, not MAYBE need in the future. You can always move in 5-10 years time, but getting out of money pit of way too big and expensive house is much harder.

[@joblaaa]

@ Personally, I can say I do more than enough to spend reasonably and save. Unfortunately it’s not always as simple as just saving or being frugal. The reality is that many older starter homes in the US need investment, that costs money. Otherwise you rent and deal with greedy landlords. It’s also not a great situation to be in with late stage capitalism being the way that it is.

[@gabepehrson3845]

@@joblaaamy advice would be stop looking for “starter homes”. And start looking for places that offer buyer incentives and are not prime areas. One of my buddies bought last year in January, he doesn’t even make crazy money. Builder was offering 4.99% interest rate for buyers, bought for around 460k and now that home has appreciated almost 70k in just a year. Pretty insane. Obviously it sucks you can’t get into a traditional home like most people would want to, but just getting your foot in the door is what’s important. You can have so much potential equity

[@antonioiniguez1615]

Landlords arent predatory

[@Mister_Know_Name]

I despise the idea of predatory landlords. I didn't increase rent on my property for 4 years and was left with repair bills and updates during that time. If I increased my rent I would've broke even. Yes, broke EVEN. Own a property and see for yourself. You'll become the "predatory" landlord.

[@Anka_Senka]

From an European point of view here, buying a house does feel like an investment. Most people buy it and rent it at ridiculous prices, specially in big cities. While they go renting for themselves. On the other hand, rent prices have gone so high due to a lack of regulation that most people throw away 70% of their wage on renting. And then, there's also the mental health issue. Being in your late 30s, 40s or even 50s and seeing yourself sharing a flat or a house with housemates, because you're not able to live alone, even renting, let alone buying, is depressing.

[@pehchi]

In my area, renting is still cheaper than a mortgage but with yearly rent increases, that will only be the case for two more years. I'm mainly just sick of having neighbors literally against my walls, not having a yard, and I'm ready for something permanent that I can paint and upgrade and decorate that improves the value of my property (not my landlords).

[@drew8235]

That's the problem for some people. Sometimes the only real option is to buy, even if it's something small. Apartment living can be really hard. 😢

[@sheneedsme]

Good luck achieving you personal American Dream.

[@mggardiner4066]

Yeah when you are spending over $16000 a year for one room with 1-2 housemates and no guarantee you can stay in the place and no rental increase cap, sometimes even the cost of tax and repairs/refurbishing feels worth it for the freedom and security

[@AlexHider]

We bought a house in 2020, and despite having serious consideration, like several expensive repairs looming, we would not be able to afford that same house today - no way, no how.

[@AnarialM]

I bought a house last year (with significant family help) and while I am not house poor, my finances are certainly not as easy breezy beautiful as they were. For me the decision, and how happy I am with it, is based far more in the non-financial benefits have having my own house.

[@aethos0]

Probably because you bought a house you can’t afford. Having your family significantly help you doesn’t mean you can afford it 😂

[@potato1084]

@@aethos0In London you have no choice. You’re either house poor, rent poor or living with family which is what we’re doing. The other option is social housing but I grew up in it my whole life and I’d rather not raise my child there. Even a 1 bedroom flat would be expensive despite the fact I have had the deposit ready and invested for years. We can’t move because of the job opportunities and family here.

[@andrewjpalla]

I’ve been watching some of your videos for a while Cara. I love that you’re one of those in the finance space that isn’t very technical. You’re very good at taking a conversational tone when talking about finance. You and TFD are some of my favourites in the space!

[@mariajoaoribeiro493]

I think that what people forget to take into account is the ever price increase of rent, where mortgage is fixed (considering a fixed rate) and has an insurance attached to it, which means that in case of unemployment or sickness you can actually rely on a place to live. On the other hand, if you’re forever renting, you’re exposed to homelessness when you reach retirement or are faced with some life hardship. I’ve know lots to people who worked their whole life and because the market became so expensive rent wise they ended up on the streets as their savings dried up!! It’s true that once you own a house you have a few extra costs, and it will demand a bit more time in the first two-three years, but after that stabilizes you can actually have a very comfortable life and savings with your finances properly organized. Best decision I’ve ever made was to become a homeowner and the initial struggle was well worth it 🙌🏽

[@rathelmmc3194]

It depends on the time period. Right now for most of the country renting is cheaper than owning. If owning becomes breakeven or cheaper than its possible that owning is financially better. The long running average for homeownership to break even with renting has been around 7 years. Most markets people buy and sell sooner than that. Also, a good chunk of homeowners do things like HELOCs and cash out refinances which removes any security blanket that homeownership does provide.

[@canuckmuck5729]

I don't have a mortgage so I could be wrong, but don't they come up for renewal every ~5yrs and so that fixed rate may increase at that time?

[@mariajoaoribeiro493]

@@canuckmuck5729indeed at fixed rate there is a renewal, but it’s generally 10 years.

[@mariajoaoribeiro493]

Might be that… I’m also in a different market reality (Europe), so the rules and security available might be different

[@user-os1mx1ol6r]

@@canuckmuck5729 That's the Canadian mortgage model. In the US you can get a 30 year fixed and there is no penalty for refinancing, so the smart money is to buy the most you can afford when rates are high (it pushes down house prices) and then refinance your monthly costs down like a ratchet every time there is a rate cut.

[@Gaigemaid]

Renting wouldn't be so bad if landlords were less predatory and cared more. I have been in several situations where there is an easy fix but the landlord waits or does nothing even if you have a hole in your ceiling from water damage. Then they charge you $500 more in rent each year to the point where buying a home is cheaper then renting.

[@zwicker5585]

yup. My gf waited 4 months to get her window fixed. It was stuck open in the middle of the winter and the landlord couldn't care the least bit while snow piled up in the window every day. Also yeah buying a home is always cheaper, there are no landlords doing it for for the long term investment. meaning in the short term they are making a profit so its never cheaper

[@sLim88CPC]

@@zwicker5585 in 20-30 years of payments you will either have nothing (when renting) or having an asset. Depreciated/appreciated in value aside, it's there and it's 100% yours. This won't change.

[@skipperino2677]

forreal. i rented a basement apartment with a roommate that cost $1700/mo with no utilities included. they required a $4000 security deposit and kept all of it for no reason. i called them to ask for the itemized receipt of the security deposit, as required by law, and they sent me a $150 check that didn't even have my name on it, so i couldn't cash it. i called them again and demanded an explanation, since all of that is illegal in my state, and they blocked my number. fun fact: that exact apartment now costs over $3000/month after two years because my state doesn't have rent increase laws! oh joy!

[@antonioiniguez1615]

Landlords aren't predatory. They offer a service. You agree to purchase that service.

[@zwicker5585]

@@antonioiniguez1615 first off. They don’t offer a service. They aren’t doing any labour, so no service is rendered. Secondly, yes landlording is inherently predatory since it relies on a class people who don’t own property, it’s preys on your need of housing. Someone is using your labour and lack of money to charge you abhorrently high prices for their assets, essentially keeping you from ever buying and exiting out of the obviously one sided relationship. Yes you agree to rent the place at a certain price. It doesn’t mean you have much power in that arrangement, and the owner of the property can hang that over you at any time.

[@TeamCryptidRobotics]

I recently bought a condo, but I made absolutely sure it was within budget and ended up paying less each month. Maintenance costs/time are the only thing thing that is rough. But I overall feel like I'm in a good spot financially

[@behavingbetterco]

No HOA?

[@TeamCryptidRobotics]

@behavingbetterco there is one since it's a condo. Dues are cheap and it's a small building, so I actually have some say it's what is going on.

[@behavingbetterco]

@ with the HOA, you don’t incur maintenance costs outside of the HOA fee, correct? I’m curious as to what “maintenance costs/time,” means for you. Looking at townhomes currently.

[@classicmomentos]

@@behavingbettercohoa only handles the shared condo spaces. Like lobby, sidewalks, etc. you still have to maintain and repair all the things inside your unit, like hvac or plumbing. so unfortunately it’s not like an apartment.

[@TeamCryptidRobotics]

@@behavingbetterco anything inside the walls is my problem. When I got it I had to fix doors, trim and my dishwasher has been a constant issue. HOA would fix the roof and stuff but not indoor stuff

[@zunedog31]

Video starts at 3:38

[@eveofall666]

I'm house poor currently. It sucks for all the reasons outlined but when I bought my house the per month cost was significantly less than renting anywhere nearby. Now my property is worth significantly more than it was when I bought it only 4 years ago and rent in my area has increased even faster. Do I have things that need to be fixed that I dont have the time or money to fix? Yes but I have a good amount of space and house poor is better than rent poor

[@kisaperez3057]

Couldn't agree more. Our one bedroom went from 750 to now 1300 in 5 years. As a growing family that was getting expensive for the tiny amount of space so we bought a small ranch style house. Now we have 3 rooms and a big yard for what i paid in rent on a tiny 1 bedroom apartment 5 years ago. It is also worth a third of it's purchase price more now. I don't mind being house poor because it saved us thousands over the 5 years. People need to consider that their rent is always rising while the mortgage is a set payment for the time you pay the house. You would get better jobs and raises and your mortgage is gonna still be the same. Overtime, a house is totally worth the buy

[@daneh31]

Being house poor sounds a whole lot better than being rent poor right about now .

[@davidc1878]

Well said. I would add the following advice to any young person who buys a home: embrace being house poor and try, try, try to increase your mortgage payments and pay off the mortgage early... it will give you a lot of financial freedom later. And if you ever find yourself in a time of low interest rates, do not, I SAY DO NOT, load up on more and more debt. Use the low interest rates to your advantage by increasing your monthly payments and pay off the debt as fast as you can. Your future self will be very thankful you did.

[@NotACat2237]

If you say,"thank God I rent and I don't have to pay for this." You must always be surprised when your rent goes up. People don't rent to you to not make money. If it cost them to fix things, it costs you to fix things and maybe even a little more for inflation. Their property taxes go up? You rent goes up. Their insurance goes up. Your rent goes up. I hate this argument of renting over owning. Both sides are paying for it in the end. So unless you are one of the lucky few with rent control, that argument holds no water.

[@slimecorn]

Yeah they kept jacking up our rent every year so we finally built a townhome with a good builder. Even with HOA, insurance, taxes and bills is still a couple hundred cheaper. Only issue is we have to make sure to save for maintenance but it’s easier since we have some left over.

[@halfforeignamericana5451]

Depends on where you live. My landlord didn’t want to listen about sealing issues in the basement and ended up with a toxic mold issue. His property lost 22% value that year, and my rent didn’t go up enough to really cover the costs. He ended up buying another property to solve his financial issues, which made his situation even worse lol. All I could tell him was we told you about these issues, we offered to buy the house from you, and since it’s your property, it’s your responsibility.

[@clarabp2613]

At the end of the day, you are paying someone's mortgage.

[@c0zybzzybee]

This is the reason my hubby and I decided to buy a house rn. We didn't want to get priced out of living in our fav area within walking distance to everything we need.

[@zeynepbadur2354]

I think the more important part is, not thinking , I pay x amount for rent, I can pay the same as a mortgage. The bank will approve you for more then you should be spending, if you want to be cautious.

[@defiantlypinki1107]

My sister and I make $190,000 combined annually and we still rent a 2 bedroom apartment. Neither of us want a house. We don’t have children, so we don’t need the extra space. We like the peace of mind of having someone else deal with maintenance repairs and it’s overall easier to maintain. Spending below our means makes us feel secure.

[@findthatwhimsy]

Besides the maintenance and insurance, taxes, etc for the house itself there’s also increase in utilities costs that people don’t seem to mention along with the maintenance itself. Maintenance is usually considered part of fixing up physical parts of the house, like replacing floors or appliances, or fixing the plumbing. But your electricity and water can increase. And also location of your house can have unintended costs. My friend is out in the suburbs and complains all the time that the nearest hospital sucks compared to when she lived in the city. This wasn’t something to think about when she was house shopping. But now she has to gamble with the subpar healthcare near by or drive like 2.5hours to the city for better care. But that is time and fuel cost plus she has take time off from work. Buying a house just has so much to think about and it’s really in the details that are less mentioned that surprise everyone. And, it’s really about what you want to compromise on too. I feel like people shame both sides, buyers and renters for their preferences they won’t compromise or do compromise on. Let people have preferences. Houses are in the millions where I am, so I rent, but I’m a 5 min walk from my dentist, a 5 min drive from my doctor and hospital, and I have multiple local grocery stores is down the street. I personally prefer this lifestyle now but I get it’s not for everyone but also understand, I don’t thrive in a suburb so don’t try and convince me I can afford a house out there.

[@DR-cu2fl]

Some of the things listed also apply to renting an apartment.

[@BREEZYM6015]

I'm single so buying a townhome made more sense than buying a traditional house. I weighed renting versus buying and decided to buy in 2023. What I like the most about my townhome is that I don't have anyone living above or below me and I don't have to constantly be going up and down stairs. I have a good paying job and an emergency fund so it's not like I went into home ownership unprepared.

[@hepwo91222]

thats exactly what I did in 2004, bought a townhouse, I bought my dream house 17 years later and retired when I was 42. I paid off my townhouse in only 7 years but when I sold it, it had doubled in value,, so I had no mortgage or rent for over a decade while my house appreciated in value.

[@zwicker5585]

most townhomes where I live are 3 stories which is the most amount of stairs you can do. Also yeah obviously renting isn't cheaper. Its never going to be cheaper unless you get a sweet deal or know someone. Usually people who rent arent doing it while losing money

[@xXCourtneyLee13Xx]

My husband and I are in our early 30s. We bought our house in 2016 when the market was good. The thing is, people want to buy their dream home as their first home. Your first home is usually not your forever home. Fortunately for us, our first home is our forever home. Was it our dream home? Absolutely not. We’ve spent the last 8 years slowly renovating a fixer upper. But we have everything we need. We’re currently building an addition to our house for his aging grandmother. Unfortunately, our septic system is outdated and can’t accommodate another person so we’ll be spending quite a bit of money to upgrade it. But once that’s done, we shouldn’t have to ever do it again. Homeownership is hard work and yeah it can be time consuming and money draining. But we still take vacations and have backyard parties and chickens and children. You just have to be smart with your money and not put everything on cards or take out loans. We had to dig ourselves out of that too. It’s hard work, but it’s doable.

[@blakeharrison3972]

Living wages haven’t caught up with the skyrocket from the 2020 housing shortage. Also they keep building McMansions instead of smaller patio homes. I know it’s easier said than done but there is a solution, it would just take time honestly

[@heysaras]

It would take regulation, tax incentives and disincentives.

[@xXCourtneyLee13Xx]

The McMansions are ridiculous. My husband is an electrician and did an entire gated neighborhood last year. The cheapest house was 400k to buy. You could fit 3 of my house inside but the yard wasn’t even 1/8 an acre. Who needs 20 ft ceilings? Smaller more affordable homes would help with the housing crisis.

[@antonioiniguez1615]

@heysaras Regualtion is the cause of the problem. Free markets are the answer.

[@elizabethtangora4353]

4:26 I identify so hard with this. My toxic Zillow fantasy is restoring a decrepit historical house, so I routinely run a search for all the houses in a state, over 100 years old, and under $100k. At least I’m still sane enough to know that in reality that would be me, in the middle of nowhere, trapped in a money pit and getting scammed by contractor after contractor.

[@ThomasJarred-fl9uf]

Haha and across the street from a pawn shop or cash advance store, but yes a wonderful fantasy nonetheless.

[@djs2182]

Oh gosh that genuinely sounds like my nightmare even without the catastrophe part. Lol The world needs people like you though who enjoy restoration. I hope you find your dream home one day that isn’t too much of an undertaking!

[@atomic_skyy]

No stop I do the same 😂😭 Reality is I live at my parents' because I am ill and unemployed and I can't afford to move out. My childhood dream was to buy an old house in rural California (☠️) and rescue senior dogs. I am writing this as I'm taking a break from renovating my bedroom/ turning it into a small studio. I am enjoying the renovation SO much, I pretend it's my old sh!tty house, which makes it easier to accept my situation ☠️

[@Jennifer_Lewis_Beach_Living]

If I had the talent of an architect and engineer, as well as good carpentry skills, I would love to buy a “fixer upper” that can realistically be fixed/restored and turn it into my showplace. There are a number of “fixer uppers” in very nice neighborhoods because the residents were too old to maintain the home and/or the residents died without any heirs, so the property just sat abandoned.

[@elizabethtangora4353]

@ I watched a lot of videos from a guy who owned business repairing/renovating light fixtures, and he did exactly this; renovated an old mansion into his home and and a showroom for his business. Never been so jealous of hard work in my life.

[@robleyanne]

A mortgage payment is half the cost of a rent payment where I live, so I bought a small house. I got married and moved into my husband’s house and rent out mine. Works for me.

[@clarabp2613]

This is why I want to buy

[@InnuendoXP]

​@@clarabp2613 this hasn't been the case for years in most major cities in the western world. So probably only works in smaller towns or cities right now if you can support yourself out there.

[@MarkKoschwitz]

Okay - I did like this video, but my lord a lot of this can be countered by a tiny bit of financial education. I'd never tell someone if they should own or rent because that's up to them, but buying a modest house (you don't need to buy a house that's larger than the one you'd rent..?) and putting aside the extra money for emergencies can be the simple answer for most people. There was too much assumption that renting is always cheaper than buying here. Are rental prices not insane where y'all are living? I'm not seeing how people would save more money with rentals vs. buying where I live (as long as you can afford the initial costs)

[@NicoleHawthorne]

Yeah I totally agree. People seem to ignore the part the part about financial education. People are buying houses and not doing an ounce of research, using common sense, and buying below their means

[@slimecorn]

Yeah a lot of these points are a major stretch. Like most of them are easily countered by buying a smaller house and being financially responsible. (Though I do realized a lot of areas only build oversized houses.)

[@tamwilfred]

@@NicoleHawthorne That's America for you. Businesses and banks are good at selling you dreams that don't make sense financially.

[@amandabatista1610]

Exactly! Comparing the US to Brazil, I see how here it is EVEN BETTER to buy a house. In Brazil, houses are very sturdy, made of brick. Furthermore, when you need to rent a house or apartment, the real estate agency forces you to pay taxes on the house and condominium fees, in other words, here we desperately need to buy a house so as not to see half of our salary in rent (that is, if you earn REALLY WELL, because today the minimum wage in Brazil does not pay for decent rent).

[@Rekeaki]

In CA renting is cheaper than buying. We rented a home and then bought the home next door when our neighbor moved out. The homes were identical. Our rent was $4000 and the mortgage is $8500 per month. We also got an amazing price on the home we bought because the owner really wanted to sell to us (and never put it on the market even though they could get more). Our real estate agent confirmed that we got an incredible deal. So it could have been way worse if we had paid market rates.

[@veronicalynny]

I don't look at my house as an investment at all. I treat it like I'm the renter and landlord. As the landlord, I do what needs to be done to maintain it and make repairs but I don't spend anything extra on cosmetic upgrades. As the renter, I keep it clean and make it homey with personal items. I do appreciate that it is a place I know I can stay long term. I don't like the idea of moving due to rent increase, property sales, or anything else that would cause me to have to move before I make the decision to. Property tax has been the biggest issue due to the inflation in home prices. I currently pay $200/mo. more than when I bought it 4 years ago in property tax alone. Always keep that in mind when thinking about if you can afford a house.

[@davidc1878]

I would say you are treating it like an investment, but for your own future (and not in the sense of flipping it). You are smartly being frugal, while paying off the mortgage. When the mortgage is gone, you will likely see this as the best investment you ever made. Also, the point about property taxes, too.

[@clarem2772]

My father always told me a house is a place to live not an investment. I am a home owner and I love being able to do what I want with the house, that said my mortgage is $168.00 per month so no way could I have an apartment on a lake for that cost. Yes I do have property taxes, insurance and maintenance on top of that but if I add everything it's about $600.00 per month. I do most of the home repairs myself and only hire people for what I don't want to do or can't do.

[@avengermkii7872]

It's always funny when people complain about how expensive housing is but ignore the fact that we constantly seeking to make the most money possible out of every little thing we can get our hands on. The housing crisis isn't an external problem, it's an internal problem because people aren't willing to sacrifice their property value for the human right to shelter.

[@stephe1506]

There really is a massive disconnect between our own behaviours and the state of the world around us. Much like hating on Bezos and being aware of his horrible company policies but then ordering another 5 things on Amazon because cheap and fast. We can say we are "just trying to survive" and "but everyone else is doing it" while actively contributing to building that world that is killing us.. it feels well past the time where the much needed policy changes to outlaw and regulate are possible though because those powerful capitalist real estate moguls at the top are too used to their high lives on other peoples struggle snd they can buy politicians

[@courtneybermack]

I think the question of buying vs renting depends so much on the local market and the person's career and expectations. We bought a house at a great interest rate, also at a time when the prices of houses felt absolutely absurd. We had assistance from family, which I have heard is the way most people make that down payment. We live in an expensive area and have reasons to stay within our region. We are flexible and are still in one of the cheapest towns nearby. The mortgage cost the same as our rent at the time. The mortgage has not gone up. I am terrified to even look at what rent would be in my market. Yes, there are other house costs. But we were able to ensure that the base price of living in a reasonably sized space is consistent and we're not going to have to move in an emergency. Live somewhere where the houses are spendy but the rent is relatively lower, the market has less churn, renting makes more sense. If you have a mobile career or you don't have a commitment to stay near someone you love, renting makes sense even in a bad market. But it's not like renting doesn't have its own absurd costs. I rented for years. I was, shall we say, rent poor. I had to borrow to make first, last, security, and sometimes realtor's fee. Not to mention the movers or the social cost of calling in friends/family. For a few years, I had to move literally every year. Renters are incredibly vulnerable to unexpected rent increases, to bad landlords, to problems with the house they are not able or allowed to fix. I lived in a house where the landlord left the country and then got foreclosed on -- which we learned about by mail. I've had rent jacked by 20%. I always had to live with roommates because my *tech job* did not cover a single bedroom apartment. Lord save you if you have kids or pets. Now, much later, landlords are conspiring to raise rents, hedge funds are buying up properties, not maintaining them, and kicking people out to get a higher rent, and you can *still* get termites and whatever --- but you have to wait for the freaking landlord to get their booty in gear and get it fixed. Get rid of the poison ivy because one of you gets severe rashes? Ha. Never. Basement floods in your triple-decker, the sump pump is broken, the wiring is all shorted out, and your landlord isn't motivated to get it fixed? What do you do? Real examples. And this is one of the *best* areas for tenants! It is actually possible for the renter to win in a conflict with the landlord! We've had changes to our situation and are now house poor. But we'd be poorer if we had had to rent, our quality of life would have been much lower (you would not *believe* some of the laundry solutions tenants have to deal with), and my personal anxiety level would have been far worse. I *hate* moving so freaking much I can't even tell you. But everything depends on your own situation and markets. I look at Zillow and *marvel* at the house you can get in some places for half of what we paid. But I'm not gonna move to Ohio.

[@georgiacsapo]

For me in the UK, getting a mortgage meant a more stable monthly expense in uncertain times. My house monthly payments are a third cheaper than many people just renting a room in a shared house! And over time, you can't be certain that the rent prices won't just keep going up and up.

[@combatcarl]

Where I fall on the "renting vs. buying" debate is live at home and save as much as possible as long as possible until buying a home becomes affordable. Renting is great, but it makes someone else richer, even if your folks charge you rent, most people (who dont have bad famial ties) i think would rather give money to their parents over some random dude or agency.

[@terezachyska6349]

Me and my boyfriend found out that rent for a three bedroom apartment in our city would be just as much as paying mortgage (Czech Republic). So buying one makes actually more sense once we have a family

[@Abby_Liu]

but what about the hidden costs??

[@InnuendoXP]

​@@Abby_Liubecomes negligible over time when rent rises with or above inflation while mortgage repayments do not.

[@marianafru]

Tbh I cannot fathom becoming old and retiring out of the workforce and having to deal with renting. Hence tightening my belt now that I'm in my late twenties and buying an apartment. My mom was fired from her job a few years ago and she managed to study for a new profession and take a year off because her house was fully paid for. I consider myself privileged not only for being able to pay and afford all of this, but it is STILL cheaper than renting where I live. It's a matter of saving for the down payment, which isn't easy but also not impossible. Renting is an expense you'll never see a return of that isn't immediate (a roof over your head for another month), a house you own is not only that but it can also be sold in an emergency, giving you a good amount of cash to use.

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[@Cucumberflavoredmustard]

I see it with my brother and his wife. He would be happy with a garage, bedroom, bathroom, and couch. SHE just HAD to have the gated community, the formal dining room, the outdoor patio living thing, big brick arch entryway, etc. Thier unscrupulous realtor is partly to blame. They got approved for an amount, and she took them around only looking at houses slightly above that number. She fell in love with one obviously, and they had to empty their savings to cover the difference between the appraisal and the purchase amount. Insanity.

[@russedwards777]

Important points you made that got short mention: 1. Difficulty in moving for career advancement. Your employer may treat you like you're not mobile; and don't need raises to stay. If you trade houses within 5-7 years you may be better off renting (due to transaction costs). 2. Some markets don't really appreciate. Detroit. 3. Affordability measures seen to be approaching the 2008 financial crisis / crash levels again. Realistic prices only come about when sellers capitulate after homes sit on market for months or years. Pay too much and you can become seriously underwater & your losses are *leveraged*.

[@Jennifer_Lewis_Beach_Living]

This times infinity. When the market crashed in 2008, the housing values sank like a shipwreck, and it took many years until the house regained its pre-2008 value. On the other hand, people lost about 50-60% of their stock value, but not only did they recover what they lost in less than 3 years, the stock value increased exponentially where it doubled, tripled or even increased to FOUR times its initial pre-2008 value.

[@lindyloohoo]

7:20 many people buy houses with problems. Inspectors are getting real crappy at their jobs. Make sure you know what youre getting into before purchasing or you could buy a lie of a dream home

[@Clarita98]

lol we are tryig to buy a house but our competitors win because they don't even inspect it!!

[@lindyloohoo]

@ god thats such bs :( im so sorry

[@rathelmmc3194]

Being house poor is basically what kicked off the 08 collapse.

[@djs2182]

Sort of. Many of the mortgages that contributed to the 08 housing crash were adjustable rate mortgages vs fixed mortgages. People didn’t realize they were house poor until their mortgage tripled unexpectedly and then they couldn’t sell to escape the debt due to lack of buyers

[@rathelmmc3194]

@ when you take an 80/20 loan and it’s interest only. You have zero equity and if your whole goal was for house prices to go up to afford the payment.

[@-natmac]

I love this framing I heard once: Picture your housing payment as an actual house. When you rent, your monthly payment is the roof, it's the absolute maximum you'd be paying. Anything needing addressing is the landlord / management company's responsibility to cover. When you own, your mortgage payment is the basement, it's the minimum you'll pay that month and could go way higher if unforeseen issues arise needing repair.

[@-natmac]

I should have waited to comment, you basically mentioned this lol.

[@heysaras]

Except the roof of rental price gets raised, each year. Rent. Goes. Up. It was a rare location I rented where the landlord didn’t raise rent 6% per year.

[@-natmac]

@heysaras Of course, but it’s not potentially varying month to month like the cost of ownership.

[@JM-bb8xi]

People underestimate smaller cities too. I left Seattle where I made $80-90k but couldnt afford a house, moved back to my home town of Pittsburgh with 30k pay cut. I was able to buy a house under $250k, comfortably, start applying more to my retirement funds, build a robust emergency fund, and now Ive got equity. Even with a 30k pay cut, I have more disposable income, and PIT flies me anywhere I want to go. I dont need to worry about rising rents. Get a house inspected. 1. Buy about 50k under what you can afford. 2. Use it to make any upgrades needed or customizations you want. 3. Bro out. Theres nothing in bigger cities I cant do here. Leaving a bigger, trendy city was the second best thing I ever did behind my marriage. I wholly disagree with renting being better. Its housing on subscription. And outside expensive metros its not worth it.

[@MrGrosMamouth]

Canadian here, a house in my area cost about 500,000 to 600,000 for a nice one with 3-4 bed. With a 5% down payment and current interest rate, you will pay about 2,000-2,500$. A 2 bed appartment is 2,200 average. If you want kids, it’s a no brainer.

[@herpsandderps8967]

What you're missing in your house vs. market calculation is leverage. Even at 7-8%, mortgages are some of the best loans you can possibly get. They're subsidized by the government, and you get tax breaks on the interest. Leverage multiplies your money significantly. People who bought in 2016-2021 are doing very nicely with their purchase. For example, I know someone who put 10% down on a $215,000 house in 2018 and then sold for $475,000 in 2021. Will that ever happen again? Maybe not, but the return was much better cash on cash than you could ever hope for in the stock market without taking absolutely insane bets. Even if the market had not gone as crazy, he would have been doing fine with an affordable mortgage. Costs of maintenance are definitely a curveball in the calculation. You could get lucky and never have to pay for anything while you own the house or you could be out tens of thousands for just a couple major repairs. Really depends.

[@AndyofCT]

I bought my townhouse in 2022 and chose one for half the price I was pre-approved for, without an HOA, and found a program through a local bank with no minimum down payment and no PMI (still cost ~$7000 from offer to closing). I also rent out the second bedroom to reduce my monthly expenses. All-in, I’m spending about $200 more per month than I had been when renting, but slightly less than if I’d stayed in that particular apartment. The mortgage, insurance, & taxes are ~16.5% of my monthly gross income, not including the rental income I receive (~24% of net pay after tax, all the insurances, Roth 401k, & FSA). I am completely financially comfortable and in addition to investing, have a lot of room for discretionary spending. If I bought any of the larger, more expensive properties I was approved for, I’d be house poor by now. So much of home buying is being strategic and realistic while keeping your preferred lifestyle in mind.

[@davidc1878]

Very, very smart approach to buying a house.

[@crowboggs]

There are pros and cons to both paths for sure and circumstances play a huge part in the decision. What I don't like about renting (even with a good landlord/superintendent who promptly handles maintenance issues), is that you are ultimately throwing money away for shelter. Let's say you rent a one bedroom for 1400/month. That is $16,800 a year just for rent (unless some or all utilities are included, which is possible). Over 10 years, that's $168,000. In some locations in the US, that is the asking price for a two-bedroom condominium. Sure, there are lots of costs besides the mortgage: HOA, utilities, taxes, insurance (more than renter's for certain), maintenance, and the hidden costs, but are those costs of owning going to exceed $168,000 over ten years? Are you going to be able to sell that property for $168,000 (plus inflation and real estate broker fees)? If the answers to those questions are reasonably "no" and "yes" respectively and circumstances place you in a given area for an extended period of time, then buying might be a good option, because with enough time (and some luck) your outlay for shelter is going to be less than renting if you factor out the breakeven price of potentially selling. There are opportunity costs you do not forgo with renting, but every month that you pay rent, there is money that is never coming back as it isn't accruing toward any equity (other than for the owner of the building you live in).... and nothing says the S&P is going to continue to gain 10% yoy, as historical trends do not guarantee future outcomes and 10% is an average... and there are some companies in the S&P that I wouldn't invest in, like arms manufacturers, even though an S&P Index ETF or mutual fund would only have a fraction of those companies' shares in its holdings. But to each there own... renting works and may be the best option for some people, living in a home with multiple generations of your family works (that comes with positives that I wouldn't scoff at, though privacy might not be one of them)... just dislike to see wealth get concentrated to the few buyers against the many renters through housing as a whole. Excellent analysis, Ms. Cara, even when our outlooks diverge.

[@lizd.8655]

I bought my house in 2013 at a 3.25% rate. It will be paid off in 12 years and that doesn't include the new roof, water heater, and various plumbing issues throughout the years. I haven't even remodeled it to my taste! I can't imagine trying to buy a house now

[@4zn1nv4zn3]

The first time i was a homeowner, it was a condo in a city so its HOA payments were quite high but I took that into account. What I didn't account for and what wasn't disclosed to us were additional "emergency" HOA payments on top of the HOA payments that was being charged to the condominium to deal w/ repairs on the old building. I was practically paying almost double of what I expected my HOA fees were. It was stressful enough becoming a first time homebuyer but this giant unexpected increase to my expenses really caught me off guard. Couldn't really go out as often anymore. Lived there for 5 years until I sold it and moved in w/ my now-fiancee. Because I payed so much in HOA fees over those years, in the end, I didn't make too too much profit, the equity and HOA fees kind of cancelled themselves out. Not great, not bad. Pretty much learned the perks of having a condo in a city is mostly just for the lifestyle and not so much for the equity. Now, I live in suburbia w/ much more manageable and reasonable HOA fees that's way lower than my previous monthlies.

[@stefaniarossi4034]

Omg Cara, this video Is speaking to me! I bought my first house back in 2017 and last summer I made the unhappy decision to buy a wooden lodge by the seaside: It has always been my parent's biggest dream, but even if I am a manager in my company I'm now house poor. I had to spend thousands of euros in maintenance and much needed renovations, I've been so close to nervous breakdown and I'm still thinking if It has been the worst and most regrettable decision in my entire life.

[@vincebagadonis8016]

A thing around here in NJ is panic buying houses. Anytime a house goes on the market around here, it sells inside a week for 100k over the ask. People panic buy because they feel like they'll be left out, the problem is, rushing into a house, you soon discover you payed WAY too much, let alone all other other costs.

[@CamilleHumphrey-q3r]

This was such creepily good timing. Just had a blow out fight with my partner about how I don't want to buy a house because when the roof leaks I don't want it to be my problem.

[@Mekias]

I was coerced into buying my grandmother's place after she passed in 2006. I had to sell in 2015 at almost 20% less than I paid for it in 2006. Fortunately because my company forced the relocation, they paid the difference. Otherwise I would have been screwed. I also avoided any major maintenance expenses during those 9 years (which I've now realized is a rarity). As you said though, it did force me to save and ultimately put me in a better financial situation.

[@carabeaner78]

We live in Wisconsin. Bought our 2700 sq ft house in 2016 for $190K on 1/3 acre. It’s not assessed at $375K. We are the fifth owners. Refinanced in 2021 for 2.75%. Will be paid off before we turn 60. However our sewer pipe broke in 2023. Is a separate insurance rider so we paid over $10K just to dig up/replace. Since there was an inordinate amount of gravel they had to pull the porch stoop and part of the walkway to get to it. We didn’t wait long enough so the pavers and porch replacement sunk. Have to pay around $18K to get that redone and get the lawn regraded. We’ve also spent $2K on other plumbing repairs. Had minor roof repair and had to get the stone side of our house resealed cuz we got wasps between the wall. We have a huge deck that we have to stain every few years. A two-story stone fireplace that we had one redone with an insert. New windows. Furnace replacement. Woodpeckers on cedar siding. In 2023 we got a $30K HELOC for 5.25%. We have a 10-year special assessment for the street in front of our house and a few hundred dollar school tax we have to pay til 2051! Even with all of this we are happy to own. I like the fixed house payment and security of knowing I can’t get kicked out or have rent raised. Yes we miss out on major vacations but the fear of not having a permanent home is scary to me. The half-joke is “nothing about this house can’t not be custom” since it’s very unique. The other thing is it has a 7’ stone fountain that leaked last summer. No idea where the pipe is and not paying to fix that.

[@not.taylorwrenmarie]

Girl… These ads are literally insane. I’m getting one like every 30 seconds. Chill with the ad breaks.

[@arh1234]

4 in a 17 min video that already has a built-in ad is a bit extra.

[@lindyloohoo]

The youtubers dont pick where their ads go. KZbin does

[@not.taylorwrenmarie]

@@lindyloohoo oh fr? In the KZbin studio it allows you to pick spots for ad breaks though 🤔

[@lindyloohoo]

@ yeah if you go through it i believe. If you just upload it i dont think you can pick where to put them. Learned that from another youtuber

[@not.taylorwrenmarie]

@@lindyloohoo ohhh, that’s a bummer :-p I feel like KZbin shouldn’t be able to put a ridiculous amount of ads on a video if the creator chooses not to have as many ad breaks.

[@princessmarlena1359]

When my ex lived in New Mexico, he was “house poor”, and his lawyer tried to talk him into buying a nail salon, or even a laser tag arena and arcade. Turned out he was working at a laundry facility and later a pest control business (though I suspect there was more to his work than that). Now he’s somewhere in Alaska…

[@Ny.Lynette]

I’m a veteran, so home buying is significantly more attainable but I decided to keep renting instead so I can further build my nest egg. When I buy my home, I want to do it my way and that just requires patience & financial discipline. I refuse to be house poor lol.

[@nickhutcheson8580]

You gave the best comment so far. I feels similar. I wanna wait to buy a house to rent it out I have no desire to live in a fancy house j love living in am apartment. Maybe the military just lowered my standards for what to expect from housing lol

[@mattj5492]

I've heard that in many parts of Europe like Germany renting is very, very common. Where I am in the UK it is like America, vast majority want to buy a house. But due to space and generally an emphasis on smaller homes it can be pretty exorbitant to buy a properly large house where 4+ bedrooms are "American sized" but in the US there are so many massive houses, especially as you get away from city centers but they don't need all that space and with that comes lots of extra expenses with yards, cleaning the large houses, repairs across so many rooms, etc.

[@butterbeans182]

Agree. Even if I moved to a far away area with cheap land like Texas I would still focus on a smaller home and use the saved $$ on lush landscaping and interior details like crown moulding, parquetry, ceiling tracery, etc. I've always been baffled by people who build 7,000 square foot homes just to show off....plain white walls with no trim and gross furniture? What am I supposed to be impressed by?

[@tifinity]

If you find a house which a) has 4+ bedrooms and b) more than one of them is "American sized", that is a manor, it's going to be exorbitant because it's far larger than any properly sized home in the UK.

[@mattj5492]

@@tifinity certainly there is truth in that! You can find houses where a couple bedrooms are good size but then the 3rd or 4th bedroom is just a box room or nursery sized, a little annoying!

[@crumplehornedsnorcack]

(Caveats aside) I don't want to sound rude to anyone, but how dumb do you have to be to buy a house that you didn't budget for. It should be a well thought out math equation for 99% of first time homeowners.The real issue is the poor relationship millions have with money. EDIT: 99% of the things you mention in this video are problems that should have been thought of well before you bought a house. This is wild to me that people would spend 20-75k without knowing how you'll get furniture, or eat - or invest in your ESP etc.

[@aduckofsomesort]

It’s either going to rent or a mortgage, why be just as poor and not own anything? Well, for areas where rent and mortgages are about the same.

[@tifinity]

​@@aduckofsomesort you need to pick a home in a price range you can more or less afford, or go in knowing that you're going to be living that tight. It shouldn't be a suprise after you've bought it, part of buying a house or renting a new place is working out how your budget will look if you go there.

[@LoganGraceHope]

The worse part about renting is never knowing if the landlord is going to raise rent or decide to sell the property. That reason alone makes me hate renting more than owning.

[@2SHARP4UIQ150]

I paid off my house by amortization and saved 168k. Now I have the best house in my neighbor.

[@brittneymusic]

Bought our house in 2020 at that 3% rate. Did an FHA. Selling it now 2025. Had to fix something EVERY YEAR. Furnace, water heater, tore up floor, a tree had to come down, termites in the garage. It is a constant money hole and put us into debt.

[@hainguyenau2866]

We bought our house 7 years ago. At that time about 70% of our income went to the mortgage, not including monthly expenses. But we even tried to put extra payment as much as we could. Now as our income increased, the debt decreased and the house appreciated, we can sell this house and buy a smaller in cash house anywhere whenever we want. Both buying an renting are okay as long as you know what you're getting yourself into.

[@robertschill2686]

Back in the 1990s, I worked with a few people who bought houses at the top of the market, before a crash. When mortgage rates dropped, they were under water, they couldn’t even refinance without putting up another $30k to $50k to cover the drop in value. No one ever talks about this. Even the people who held on, and stayed under water for 20 years, pretend its a good investment when the finally turn a profit 30 years later. In our society, its a humiliating embarrassment.

[@Jennifer_Lewis_Beach_Living]

Thank you for bringing this up. It took a very long time for homes to regain their pre-2008 value when the stock market crashed in 2008. From trends we’re seeing today, we’re looking at another imminent real estate crash this year (2025), and there will be a number of people who will be under water with their mortgage again.

[@adamp6320]

The thing about buying a home - you get massive leverage with the mortgage - you can't do that with stocks (at least not conventionally)

[@Posilepton]

This is a massive oversight that she hasn't disclosed or doesn't understand. An index fund or the S&P500 becomes incredibly risky if you leverage it as much as a mortgage can a property. The interest rates would also be astronomical compared to a mortgage. An ETF or stocks is just not the same kind of asset at all compared to a property.

[@JakeHaugen]

I'll say as someone who is a is doing a house hack my stress is so much higher with owning a home. I love my home and I'm making money on it renting out the extra rooms, but man there are some days where I wish that I could just have kept my money, gotten a roommate, and rented a nice apartment.

[@jadecom6]

Good point but these yt and tiktok videos also feature people complaining about huge rent increases.

[@roxanneslate8661]

I live in the South East of England. I bought a 2 bed, new build house in 2017. The mortgage was £825 a month. Rents were £1,200. Now that I've overpaid a bit, and the mortgage interest rate went down -0.50%, the mortgage payment is £525.76 a month. Rents have gone up to £1,650 month. Like Cara said don't rush and make sure you've got cash for repairs and to enjoy life, but if you can afford to buy it's the best option long term.

[@HeatherHillier]

Hit 220k today. Appreciate you for all the knowledge and nuggets you had thrown my way over the last months. Started with 34k in November 2024..

[@EricLurie-n7]

I would really love to know how much work you did put in to get to this stage

[@HeatherHillier]

I will be forever grateful to you, you changed my whole life and I will continue to preach on your behalf for the whole world to hear that you saved me from huge financial debt with just a small Investment, thank you Jihan Wu you're such a life saver

[@AdamSilbert]

As a beginner in this, it’s essential for you to have a mentor to keep you accountable. Jihan Wu is also my trade analyst, he has guided me to identify key market trends, pinpointed strategic entry points, and provided risk assessments, ensuring my trades decisions align with market dynamics for optimal returns.

[@JosefMouris]

Jihan Wu Services has really set the standard for others to follow, we love him here in Canada 🇨🇦 as he has been really helpful and changed lots of life's

[@devpaul80]

His guidance allowed me to restructure my retirement plan, resulting in an estimated $700,000 more by the time I retire.

[@susanb.solstice4873]

For me, the best part about owning a home (along with the bank) is that no landlord can evict me, or raise my rent to unaffordable levels. As a senior citizen, that stability in housing is invaluable.

[@Greeneyedgeny7]

I bought my first home at 22 and it was hard at first, I dont regret it.

[@8Hxney_Bee8]

I have always been pro-renters, yes it has some hiccups, but over all I prefer. Now that I'm in my mid 20's and my friends are getting married and buying homes, we have very long conversations about this topic. I stand very firm on renting and explain to them why, but I've found its a mentality thing. They want to settle down, stay in the same area close to family. There is some merit to starting to build your foundation earlier in life. But we're all on a separate journey and one way doesn't fit for all of us. Its nice to hear a similar opinion when all around me everyone only talks about buying and totally dismisses renting.

[@J2024O]

I am 34 now. I had a very similar mind like you when I was in 20s. But, I really wished that someone actually told me I should've bought a house. this is insanely stressful to be a renter. Each beginning of the year, I am just not sure how much the landlord will increase the price (or kick me out). Endlessly scrolling other available rentable flats which shows 1.5x price of what I am paying now - I was lucky enough to make a contract in 5 years ago which is ending soon. The house that I am living now, the price went up 2x. I was able to afford to buy it back in days, but now it becomes too expensive to buy. If I want to keep my current rent price (and if my landlord kicks me out) I need to significantly downgrade the option - far areas, less secure area, smaller size room, etc. I am really sad that I didn't purchase my own in 20s. It doesn't need to be super THE dream home. Just a small house that at least I can secure myself could've enough to buy. 🥲Do remember that mortgage monthly payment is fixed for next 20-30 years. Rent will just go up every year.

[@rebekahsedwick3511]

I think it depends on the circumstance. I don't know why, but my generation (millennials) seem to feel pressure to skip the "starter home" or get out of it as soon as possible. 4-5 bedrooms in a new build neighborhood is the ultimate goal and financial security be damned. Meanwhile, my parents never left their "starter home", instead choosing to improve it and stay for security. I wish I saw more of that perseverance to eventually improve our circumstances.

[@leonieparkinson9883]

Unfortunately, many builders aren't building starter homes like they did in past generations. Most new builds start at 4-5 bedrooms plus yard and garage all starting at $300,000+. Even townhouses are starting at 300,000+ these days it's really unfortunate.

[@tamwilfred]

I lived in Japan for seven years and have traveled across places in Asian and Europe. People live and are happy with smaller spaces. I think people overseas tend to spend within their means as well compared to Americans. I would be happy to live in smaller house. That means I won't have to spend as much on taxes, heating, and maintenance.

[@aduckofsomesort]

All homes in my area that would be considered an actual starter home 80 years old or older, most of them not being for sale and most of the ones that are either super decrepit or priced just as much as a bigger home.

[@davidc1878]

Couldn't agree more. I bought a very modest house over 20 years ago. Today, the mortgage is gone and I am still living in it and I couldn't be happier. So glad I did not buy something more extravagant as I would probably still be paying it off.

[@tammiegriffin5569]

I bought a condo in full for $65k. It's 850 sq ft. First year I was here had to replace the water heater and the furnace/AC unit. It was a sticker shock, but because I bought something I could afford and didn't have to worry about a mortgage, it was doable.

[@SuperKevinmp]

This is a great vid. Factor in all these details, calculate your finances, and get a house that you can afford.

[@amyc8349]

Thank you Cara for videos like this. I am one of those people that dream all the time of buying a house or condo I can call my own. But thanks to videos like this it makes me feel a lot better about the fact that I have to rent. I don't think I'll ever stop dreaming of buying a home, but at least now I can feel comfortable in the fact that renting isn't a bad thing and I'm not missing out on as much as I thought I was.

[@kevinreichert3254]

Friend, “ I made so much money selling house”. Me, calculating taxes and interest payed over 5 years,” No, you didn’t”.

[@kasun_jayawardana]

USA is just weird.

[@arh1234]

Yes, but in what way do you mean?

[@jadecom6]

How so? In many countries, people are not able to even own homes.

[@DavidCruickshank]

Yeah, i will never get over the concept of a HOA 🤨

[@orangeowl333]

This is literally a world wide issue due to the elites seeing property and homes as an asset and buying everything. Look at Canadas housing market, chinas housing bubble, germanys shit market, and don’t even get me started on Britain.

[@razorkid1525]

Take a look at the EU and come back 😂

[@EarthOrNothing]

I love the way you discuss finances outside of costs, but the root of why people desire these things in the first place. Keep up the amazing work!❤

[@thefinancialfreedomgirl]

Thank you 💜

[@Moonpie90]

When we brought our house 18 months ago we were told we could get a mortgage 30% higher than the house we wanted. Almost like we were being encouraged to buy somewhere more expensive. We didn't want to max out our monthly budget or spend every penny we had on the downpayment and fees. So glad we didn't even consider the upper end, our budget for other things (savings, incoming baby, spending money) would look a lot different. I honestly think we brought what we could afford and it was a little irresponsible of the banks to offer us the higher amount of debt

[@stormy7833]

5 mins in and she says spending 30% on your house/mortgage is house poor. most people pay around 30% of their income to rent and the housing crisis is in all developed countries. to assume one's rent is not 30% of their income, means they either earn too much for where they live or have a very cheap arrangement which is not the norm.

[@stormy7833]

lmao 2 mins later she says we will be pay check to pay check if we spend 30% on housing costs! stats show that majority of us are paycheck to paycheck anyway

[@aduckofsomesort]

My rent is about 30% and then all of the extra BS fees makes it to about 50% of my income. And there are no cheaper apartments I can move to!

[@eliskamartinkova2714]

In Paris, when I lived there last year, it used to be more like 50% just for student accommodation.

[@giorgiovitale]

Great to point on hidden costs. We are in the process of buying a house, main reason is that here (province of Milan, Italy) costs of everything keep going up and buying a house can give stability at least on how much you pay each month. To put in perspective: - avg decent net income is around 2k/month - rent for 100m2 for the area I’m interested in 4 years ago was 1k/month, now is 1.4k/month - interest rates now are around 2% (was 0% during covid, sucks to be late) - to buy a house, you can expect something between 280k to 350k (again, area we are looking for, milan is far more expensive) So in 20 years we might be free and meanwhile we’ll spend as much as rent. With 8% interest rate idk how one could even think about buying a house

[@Kourtnie_Marie]

I definitely underestimated the cost of homeownership myself. I became a homeowner when I married my husband and we moved in with one another. His mortgage was $200 less than my rent. However, after paying for increased utility costs on a house twice the size of my old apartment and home maintenance, it definitely exceeded the $200 difference. He wasn’t house poor when we got married, but it is still shocking to me how much home ownership actually costs.

[@drew8235]

I just bought my first home, though it is a townhouse and much smaller than what I want / need. Even though prices are insane right now, it's at least within my budget, so I'm not ruining my finances to own, at least... Just sucks because 4-5 years ago I could've gotten another room or two for the same price.

[@hepwo91222]

its fine, you build equity in your current home and then later on can buy your "dream home" with the equity and appreciation of your current house.

[@Rozcas]

I travel alot for work and play a game with Zillow , i look up A. Properties that cost the same as what i paid 10 years ago B. Houses the same size as the 2015 house. What I've learned is today's buyers are screwed unless they're in the market for a cardboard box or if lucky a very nice van by the river

[@audemeyrre2498]

Thank you ! I needed that. All my colleagues have their own home/appartement and are all "it's a financial investment". In my case i am still renting, and sometime I am like what am i even doing/what i am supposed to do/ i don't want to take a 25 years morgage ? When in the end i am not even sure I went to stay where i am right now.

[@LMCEK]

I've been "house poor" since my mid 20s when I bought my first home by myself. I now have a house worth $1.2 million and pay less than rent for my mortgage. I live in a high cost of living area. Have I made sacrifices? Definitely. Do I regret it. NEVER.

[@ThecodbroZ11]

As a realtor I see so many first time buyers overstretching themselves financially, so I'm not surprised, it's like that first clip, they want a house with a playroom, you don't need that

[@Krystal_Kitty7]

Living on your own is never easy whether it’s renting or owning a home, unless you’re extremely well off from the get go you are going to be house poor for a few years it’s just a matter of fact!! I’m 34 I’ve been renting with my now husband since I was 19, until we finally bought a house in 2017. For 8 years we would buy used or cheap furniture, pick up free furniture (still do if it’s a really nice piece) as well as accept hand me downs from our family. You’re not gonna have that luxurious home for YEARS because your priorities apart from paying the mortgage every month will be food and bills. Period. So if you’re buying a home get off Instagram stop wasting time dreaming of someone else’s life and focus on your own home and realize that you’re gonna have to shop on facebook marketplace and Craigslist for a while and don’t feel bad for yourself when you see an old piece of furniture on the curb that you want to pick up, just don’t pick up an old mattress or couch because yuck!!! Lastly, don’t compare your home to others because you’ll stay house poor and depressed forever.

[@ASMRGirlFromOz]

The mortgage repayments on my house are a lot cheaper than rent on any house or flat that I could rent in my city. I will never regret owning my own home. However I did not buy my dream home! I bought an extremely run down home that needed a huge amount of repairs which myself and family members mainly did ourselves. I had to scrub mould off of the walls it was in such bad repair. I also bought all used furniture. I now have a simple but clean liveable home. Yes there are always unexpected and hidden costs though. Be sure to get a building inspection before you buy any home

[@eb_nowhereland]

I saw people buy houses, while borrowing the down payment from friends and family. So, I'm not suprised by house poor. My mortgage is 50% of the rent who would have had to pay for exactly the same condo. Maintenance/insurance and taxes are a thing, but we allocate a percentage of our incomes for those costs (10%) Bought within our means, and basically made the calculations based on our incomes if one of us would get ill. Note, I live in the EU

[@spiralings]

I bought a house for the first time at 44 years old. and it IS about 5 times as expensive as renting, but 10 times a better life. Everything you said is true, do NOT stress yourself financially just to buy a house.

[@yololifefu6718]

One important thing not to forget is when owning a house, your monthly payment do go toward your house, while renting does not. To me, that makes owning a house better.

[@MarsM13]

I agree with lots of what you said, but I love slowly renovating my house sooooo much. I'm poor, so I can't renovate much at a time, but even very slowly remaking my home into Orkcore is very pleasing.

[@careshare-I-Love-God]

I have experienced renting a house . Now, I own properties and I can tell both have pros and cons. Buying a house indeed needs a lot of maintenance and harder to relocate but it gives you more security. Security in a sense that you know you have money if you sell it. You don't have this when you rent. Also, you don't have to worry if the rent is raised. You have to make sure of the location though so that there will be more equity in the end. After 15 years, a renter will have nothing for his money but owning a house will raise your net worth even upto a million$ per house especially if you bought it in a great location like Vancouver. Just consider it as a forced, fixed savings when you buy a house. At the end of the day, buying a house will make you way richer than having nothing. Start with a small one...

[@AnnelisR]

Great video, as always. I really liked how you brought up the portrayal of homeownership is like the portrayal of marriage and I'd actually love to see a video from you about marriage and its real benefits and detriments for women.

[@michellemarie1197]

I say its better than still wasting all your money on rent and having to worry about getting evicted and still struggling financially, literally the only hard/expensive thing about ownership is maintinence but when you rent legally the landlord doesnt have to fix shit so you can still get hit with having to do maintinence

[@aduckofsomesort]

There are things that landlords do legally have to fix. But whether they choose to actually follow the law or not is a different discussion.

[@naldo020]

Don’t pay the mortgage to the bank…that owns your home and see if they let you stay😂

[@stephendallas9709]

S&P pays dividends.... BUT if you invest in the S&P for 30 years, you still have to pay rent in future $$$. So it's not exactly apples and oranges...

[@believeintrex]

We’re renters and already “house poor” because of the affordability crisis. Owning a home would have kept us stable instead of having our rent nearly double since Covid.

[@orionh7201]

I'm currently looking for a house myself. My husband and I have done a LOT of work with running imaginary numbers to work out our budget.... and wowie it's a lot lower than most people around us (like parents) expected us to have. The prices in my current area are also not great (for renting AND mortgages) so I'm moving hours away, but also I wouldn't even be able to have this as an option if I didn't have an inheritance given to me that is exactly the amount we need for a down payment. As well, without the help of my parents and grandparents, I don't think I could have ever decided I could buy a house. I may have ended up moving in with my mom or grandma if I had to, like if I lost my job or if I got evicted. But not everyone is fortunate to have that, and most people end up unhoused instead because they dont have parents to help