Should We Buy a Condo At Our Age?

Should We Buy a Condo At Our Age?
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[@maryrenaud6732]

Our paid in full condo costs per month: $297 condo maintenance, $52 for ins, $48 (homesteaded) property taxes, $82 electric = $479 per month including cable, water, and building insurance. Way cheaper than rent...but no mortgage is the key!

[@karmasutra4774]

Where are you living?

[@CityCinderella]

Lol exactly - they’re prolly retired

[@cashmerefire7335]

Do those things keep going up or pretty fixed?

[@sami-9233]

I am single female, living in a apartment Dave:way to go!!!

[@user-td7xf3gz4l]

It was the debt payoff he was cheering haha

[@riverdaletales8457]

What’s wrong with living in an apartment?

[@blackworldtraveler3711]

@@riverdaletales8457 I don't see anything wrong. Many of the newer apartments where I live are looking pretty good,gated,better quality with soundproofing,security,and attached or unattached garages.

[@brennan_mclachlan]

@@riverdaletales8457 you’re missing the point, it’s not a bad thing, but it would be a weird thing to cheer. Obviously he was cheering for her debt though, but the OP’s comment is a joke.

[@coconutwater4531]

🤣 that took me out. Awkward timing. Even she was confused

[@azteca6695]

Get a 30yr mortgage. And give extra payments as you can. Because "sheet" happens. That's what we did. Paid off in 18yrs

[@too-da-loo]

I do the same with loans. I take the max length (within reason vs interest rate), then pay extra and pay it off in half the time. I like the flexibility.

[@limitone9564]

I am in the middle of deciding to get 15 or 30 loan, how about the difference of the interest rate on both loans even if you paid it off early ... what's the difference in savings on both loans?

[@ronaldcoleman312]

I’m the same, my next move is to buy a home. I’m going to put it on a 30 then make bi weekly payments and add extra to try to cut it down to 15-20 years of payments. Just because life happens and I have children

[@chrisstaub5880]

Dave accounts for the possibility of "sheet happens" in his recommendation already. That's why he also says that the mortgage payment should be less than 1/4 take-home pay. Also, suggesting getting a 30-year mortgage and paying it off like a 15 is missing the point. The idea is to get a 15-year and pay it off in more like 7-10 years.

[@ronaldcoleman312]

@@chrisstaub5880 that advice is fine for people with higher incomes. 20-25 percent of 60 thousand a year on a 15 year fixed isn’t doable for a lot of people especially depending on the area you live in. Factor in kids with that it’s a recipe for disaster

[@stevee8318]

The problem with Condo / HOAs isn't really the fees, which are a good or bad deal depending on the value you get in exchange (lawn care, snow removal, maintaining/repairing common structures, etc) it's the frequently ridiculous rules and that the associations are typically run by the people you'd least want to govern you - nosy, busy body, judgmental Karens.

[@waterheaterservices]

Exactly

[@toriyt2714]

Yes!

[@vince8520]

Totally agree. I rather deal with a landlord and neighbors as a renter than a condo owner. at least when you rent and people around you drive you nuts, you just pack up and leave

[@Cathy-xi8cb]

If you buy a condo w/o the understanding that your life is impacted by the HOA and your neighbors on the board...you are an idiot or immature. This is common knowledge.

[@Cathy-xi8cb]

@@blackworldtraveler3711 Get on the board, and find out what you don't know. It will change your decisions going forward, even if you stay. I spent an enlightening two years on mine. Education you can't get from a document or your lawyer. Still in my unit, and wiser for the time spent.

[@rachelalexander685]

We sold everything including our car and back packed & biked everywhere we went for a year! It’s rejuvenating! So glad I was able to let go of the material items to get rid of debt and live freely!

[@karmasutra4774]

What did you do after that year?

[@exmerion]

People sneer at HOA fees in condos until they actually add up how much money they end up spending in maintenance over the lifetime of the SFH mortgage. Also the price range you have access to you at 60k a year would have you weighing a brand new condo vs a 10+ year old house or even older depending on your area. Also depending on your area, you will pay much lower taxes on a condo. The biggest downside to a condo is trying to figure out if the property is properly managed.

[@theacademic10]

100% agree but completely depends on the area. Here in Australia there aren’t a lot of them even in the suburbs, so they still aren’t cheap. Houses have better capital gains generally. And with interest rates atm it’s hard to get positive cash flow with anything. So capital gains are important from an investment point of view. Doesn’t really matter if your just looking to avoid rent/mortgage tho.

[@brad9092]

“Correct me if I’m wrong, Dave.” These are wasted words. Believe it, Dave will correct you if you are wrong!

[@HorrorFreak68]

Correction. Dave won't necessarily correct you if you're wrong; however, he will correct you if he disagrees.

[@Mike_Thompson]

Anthony needs to read up on Roth IRA rules. You can pull your contributions and even your earnings if it's for a first-time home purchase without penalty.

[@harrychufan]

Still kinda a waste of that precious roth space. Roth’s are awesome when 95% of your acct value is gains, not so much when it’s like 20%.

[@lionelhuts875]

@@harrychufan But she's going to waste the annual contribution anyway. Doesn't seem like she has enough income to do both the Roth and save for the down payment.

[@blackworldtraveler3711]

Maybe he looks at it as strictly retirement savings growing,reinvesting,compounding,etc. tax free through the years like myself and have other savings/investment accounts.

[@alextogo8367]

Getting an investment portfolio makes more sense.

[@Cathy-xi8cb]

Occurred to me that the advisor thinks she isn't going to successfully save enough for a home, and then she would have access to it as an emergency fund, as a home down payment, as well as a retirement vehicle. This woman isn't necessarily going to be a homeowner in the future. If she hasn't in the past, doing it as she gets older is iffy. At best. She could lose her job, become disabled, etc. This would give her some options without the tax issue if she removes the money before 59.5.

[@ynnadssom]

I wouldn't use a Roth like the caller suggests, but Anthony is incorrect: you can withdrawn principal (not interest) from a Roth at any time without penalty.

[@kaliffoo]

But the point of putting it into the Roth would be to earn interest. If you are not going to touch the interest then you can just leave it in the savings account.

[@nathananthony7517]

You can also take out and additional 10% of the earnings for a down payment, if you're a first time home buyer. I think using the Roth for a home down payment can be sound advice, if you are still saving 15% in other retirement vehicles like a 401k.

[@Seethi_C]

@@kaliffoo The interest you gained will still grow in the fund after withdrawing the contributions, you don’t lose it

[@Lady4Life]

Good conversation. Thank you both.

[@user-il9gt2hc5n]

The reason he said put the money in a Roth IRA is because the IRS allows up to 10k exclusion of gains for first purchase of a home! That’s a great idea, the guy giving advice is a clown. You could put 15k in a Roth IRA over a few years, have 10k of gains in the market, and then have 25k for the down payment TAX FREE! This just goes to show they don’t really know what they’re talking about lol. The guy said “put it in a mutual fund in a taxable brokerage account” that’s the dumbest thing I’ve ever heard

[@SingingBeeize]

Thanks for clarifying “take home pay”.

[@TheDjcarter1966]

Yeah take home pay SHOULD be after health insurance and 401k up t employer match because you should be doing both!

[@suttsd]

@@TheDjcarter1966 Dave just said take home pay is what is left after taxes. Excluding 401k and such. Yea you should be doing those but they really aren't mandatory.

[@babyhuggz]

That was a great call! Stability and the ability to save quickly and know where to put the money is very important

[@collinrosendall8369]

I’m

[@Envision95]

He can help out with this age bracket the way Dave looked at him 😂

[@BetYouHateMeNow]

lol exactly

[@_mrsarcastic_3517]

🤣🤣🤣 i was looking for this comment...

[@MT-yx5cu]

Was he offended?

[@Divalive82]

I read this before I got to that part of the video. 🤣🤣🤣

[@twizasichilima7392]

Haha that was shade right there

[@emydan]

She is not including condo association fee which is not fixed.

[@onekoolfella]

I was thinking the same thing. Some places in the U.S. those fees are almost if not more than rent.

[@colleen6050]

and HOA is not tax deductible. A big waste of money.

[@blackworldtraveler3711]

@@colleen6050 Not a waste here. I can afford where I live and have zero debt so not concerned at all about tax deduction. I want the nice landscaping,streets,heated pools,tennis courts,club houses,security,gates,4k cameras,etc. among other things like salary,insurance,etc.. There's a constant waiting list to live here and other place. I will be in Europe for the next three months and not worried about my places in the U.S..

[@drof2th]

Everyone is missing ta key point! Just like rent will go up in time, HOA’s will go up too!

[@jeffmorse5599]

so won't the cost of paying people to do the work if you don't want to do it yourself or have the ability to do it yourself like most lifetime renters. HOA's go up because those same costs go up. Condos are not bad for many people. Perfect for older people and single women.

[@michaelh5055]

Stay away from a HOA at all costs.. They are an absolute nightmare and defeat the freedom of owning a home. They do not increase or maintain the value of a home. When you try to sell, as soon as you say HOA. Most people say thank you for your time, but no thanks. My real estate agent friend says a home in a HOA usually takes 2-3 times longer to sell. The sellers get frustrated and sell for much less than asking price. She says she prefers to not take on a HOA home. Lots of time wasted trying to sell it

[@MP-nj1qy]

@@jeffmorse5599 Great perspective

[@raallen1468]

@@jeffmorse5599 Condos MAY be okay for older people/single women IF they can afford ever-increa$ing "HOA/COA Fee$" Always look 10-20 yrs down the road.....

[@prometheuspredator7971]

Also, property tax and home owners insurance will increase. Also, take in account putting in new plumbing in your home and replacing your heating and air unit, and paying someone to mow and upkeep your yard and making necessary home repairs. Just alot of things to consider when you own a home. Plus, another thing you have to deal with is troublesome neighbors. So, you have to think seriously about what is in your best interest to either rent an apartment or a condominium, or buy a home. You have to think about the quality of your life and what is easier for you with less worries. Alot of people think that renting an apartment is fruitless, but take in account what you would have to pay for when owning a home or condominium. There are downfalls if you either rent or own.

[@steve03260]

Well, thank you for those numbers about age! I am 56 never smoked drank or did drugs so 90s is sounding pretty good ... time to knock out some pushup and sit ups

[@vibes1680]

Love to see people taking care of themselves :)

[@MT-yx5cu]

Dave should took take note of his own advice.

[@barbieblue3336]

Oh, I thought "take home" was after deducting rice & beans, beans & rice?

[@jacobshaw2991]

If I die, I want my financial situation to be a blessing for my heirs. Leaving them debt, in addition to my death, could be destructive.

[@oldtwinsna8347]

@3:39 Anthony about to flame the caller for trying to buy a home and start off his, "why are you in a rush to buy a home?" when Dave steps in and stomps him out before he sounds more foolish.

[@nbkknlq]

I agree to a point. Why are you buying a home only for you to leave it to who? yes your rent will go up but you don’t pay maintenance cost on a building. You are a single individual unless you’re leaving this home to family members why are you buying a home?

[@ericak1949]

HOA and taxes go up every year so while base mortgage payment may be the same, lots of other things to consider.

[@blackworldtraveler3711]

Depends on what she wants in a condo. Where I live I pay about $295/mo. for all amenities. Other condos have few to no amenities past maintenance as low as $60/mo.if you don't want the heated pools,extra security,club houses,tennis courts,elaborate landscaping,etc... Up to the individual.

[@billjones4986]

Don’t buy a condo in California,to raise the dues homeowners have No say,the board members can just raise the dues,they don’t even live in the condos they own!26 percent owner occupied,went up 20 percent two years in a row!we feel stuck!

[@armyguy4124]

Dave's head movement post " age bracket " comment 😆 😆 😆

[@ivychurch2306]

What about those HOA fees every month required to purchase a condo!!!!

[@ayron419]

Yeah that can truly get expensive. Some are even over half of the monthly mortgage payment in cost.

[@chriss7552]

Love this show

[@CaptainProx]

The only thing doing a 15 year fixed is going to do is make your payments more strict and give you less flexibility Instead of paying $1000 a month on a 15, you could pay $500 plus an extra $500 if you wish and pay it off just as fast

[@bbutler7158]

If she's putting out max towards retirement (or catch up) that's alot to come out of a pay check. That will be my situation as I go into a higher paying job and will need to set aside much towards retirement. I have about 15 more years.

[@COOLDUDERBALD]

Buying property is to much of a mess and way to expensive these days.

[@MisterMikeTexas]

The unfortunate thing in Texas and other like states is property taxes replace rent! And they have been skyrocketing! I have close relatives who are contemplating moving to a more rural Texas county south of DFW to save on those.

[@famousamos1]

True but Texas has no state income tax.

[@MisterMikeTexas]

@@famousamos1 That's a good thing for us, but a lot of home owners are being taxed out of their property, and Governor Abbott doesn't seem to be helping in this area. Greedy cities, counties, and school districts, and tax assessors eager to please em!

[@natashanolly9489]

100%... my mortgage goes up every year due to taxes. Property taxes are awful and they never go away.

[@famousamos1]

@@natashanolly9489 that’s expected that property tax and home insurance goes up over time. As you expect your home value to go up over time. But if you have no mortgage the payments for property tax and home insurance is still at least 50-75% less than renting.

[@DeanRamser]

Excellent video. Thank you. We are retired educators visiting Poland and Estonia after helping a new school open in Lviv. We are seriously thinking of selling our Portland condo and moving to Europe. Is renting is a better option than owning a home for seniors? We always wanted to own, but now it seems that putting the cash in CDs is wiser than purchasing a home. Plus the healthcare is better here, like in France, than in the US. Your thoughts? Dean & Cindy

[@riceandbeans2019]

Love dave, only problem now is that when i meet non ramsey ppl and they tell me something they did that goes against the baby steps like going on vacation with 106k in Student loan debt i Lowkey cringe.

[@LVH100]

@@saulgoodman2018 you’re absolutely right. The only thing you can do is eat rice & beans and beans and rice. 😂

[@LVH100]

@@saulgoodman2018 be intentional buddy

[@ayela562]

@@saulgoodman2018 if you’re working the baby steps it does . And here we are having this discussion on a Dave Ramsey video sooo...

[@mohitnikumbh593]

That makes you cringe because you assume that they want to get out of debt as fast as you do. I know that's the fastest way to build wealth but not everyone understands it.

[@LVH100]

@@saulgoodman2018 of course not! Just make sure you pack rice & beans and beans & rice! 😂😂😂

[@jonala2918]

She can only afford a tiny condo in the cheapest part of the country if she is gonna be able to put together a high enough down payment so she can get the mortgage down to only 25% of her net income… and at her age?? Dave just glossed over this problem which is very real for many older Americans. Unless they intend on working until they are literally 83 years old

[@dw8027]

Dave - with most condos you need to put down between 20-25% deepening on community and reserves in the community. Condos generally aren't eligible for FHA loans with those 3.5% dp's which means conventional loans and on condos those aren't always less then 20%

[@euenfheiejrj]

Well that’s not true. I’m in the process of buying a condo with 10% down.

[@dw8027]

@@euenfheiejrj ‘with most condos’ was the term I used.

[@euenfheiejrj]

@@dw8027 I’ve never heard that and a lot of my friends have condos... maybe it depends on where you live?

[@dw8027]

@@euenfheiejrj A large percentage of the condos that I deal with require 20 to 25% down and the only loan you can get in there with is a conventional or non-traditional mortgage product. It really comes down to the community itself and their own bylaws, amount of investors to non-investors in the community and the reserves. Location and community do play a factor

[@euenfheiejrj]

@@dw8027 curious where do you live or where have you seen this? I’m in Chicago for reference. Maybe it’s in smaller cities?

[@rethinkcps2116]

Condo insurance, taxes, maintenance & upkeep *plus* HOA fees will go up. And...occasional 'special assessments.' Dave blows past those. The rising fixed costs of a condo are equal to or higher than SFH in many coastal areas...(Yes, I saw this call was from Ohio, not Miami...)

[@famousamos1]

Yup condo HOA are at least $150-250/m!

[@1981lashlarue]

You're going to have insurance either way (home owners, renters) along with property taxes. I still think you're coming out ahead though because you are saving time and money in moving, trash removal and not having to worry about replacing the roof and other things. Yes, there are condo dues but in the end, it at least balances out. Plus, insurance is cheaper with a condo than a home. I have a condo and I love it. You are a home owner but with the perks of renting.

[@eugenewang4650]

​@@famousamos1 except you never ever have to do homeowner's unpaid labour or hire people to mow lawns & landscape maintenance or any major external structural repairs. Owning a freestanding house comes with these costs which also go up over time. the HOA fees just break down these big incidental expenses into little chunks a month. Yes rent is cheaper in the short term but when youre 'paying' a mortgage, youre essentially saving money into a bank account in the form of brick and mortar rather than consuming it which is what youre doing when paying rent. For internal maintenance, buying a brand new condo that noone else has lived in before will minimise that expense and that is the time when HOA fees will be the lowest.

[@kevcapostatus]

Great video

[@christiewilliams1704]

Yes, this call was a good one. Coincidentially, I was talking to someone about this very subject and he said do a fix if I want a CONDO and we discussed HOMESTEADING (which I am aware of....then at age 62 eliminating taxes altogether)....which stabilize you even more. Well, the gentlemen I was talking to do not like the condo idea at ANY AGE. Matter of fact, I have thrown the subject around to a couple of men in discussion and they ALL roll their eyes about it. I think they are CONDO HATERS. Anyway good convo. I agree.

[@CaseyBurnsInvesting]

You can withdraw principle without a penalty.

[@relaxbydiamond]

You can, but the whole point would be to put it in there for growth, so seems counterproductive to put it in a roth ira to maximize growth and then only take out the principal

[@macummings7818]

@@relaxbydiamond right 👍

[@ashoksahu2642]

Hello, What is Single Family Detached Condo? What are the differences between traditional single family vs Single Family Detached Condo? It it good to purchase new Single Family Detached Condo or old traditional single family home?

[@vince8520]

Condo ownership cost will go up with inflation, just like rent. between the condo fees, insurance and everything else it is the same thing as a rent increase. So I don't understand why you would move from 800$ a month rent to a 1200-1300$ a month condo ownership expense. I totally disagree with Dave on this one

[@dw8027]

Because you get equity, most condo HOAs cover a lot of things like roofs etc. Other then a new AC not a tone of expenses things to worry about

[@joyaustin6581]

A condo to me seems like a glorified rental

[@narutolol3199]

@@joyaustin6581 you can't sell a rental, you can't use a rental as equity... how? this is a stupid comment lol

[@guykenniker9498]

I own my own home but the cost of taxes insurance and up keep no one thinks of. 70 love my place but getting to the point I need to pay for upkeep

[@MT-yx5cu]

Do you regret purchasing?

[@theelephant2887]

What's wrong with using a ROTH? You can take out the money that you put in with no penalty, and leave the interest you`ve gained n there to continue growing

[@nowthatsurban]

It can be dangerous because you can lose your principle.

[@blackworldtraveler3711]

In my case I had over one million in my Roth in my 40s and many of my coworkers with same salary had between $50k and $100k. Guess why?

[@theelephant2887]

@@blackworldtraveler3711 I would be very interested to know how your money gained so much given the limitation on yearly contribution.

[@matthewgardner2144]

It's Roth, not ROTH. For starters.

[@blackworldtraveler3711]

@@theelephant2887 Self directed Mega Roth 401k Contribution limit for 2021 is $58k. $5k-$8k/yr company match.

[@MactanNewtown]

What if there is like Rent to Own, making minimum of 5 percent downpayment( amounting 9,000 USD) , then do a monthly at 750 USD move in on the third month. The rest of the 80 percent, pay it cash or do inhouse financing or bank ? The property is in a 30 hectare one stop shop ( complete, organize and secure) with a beach . Will this be worth it?

[@emmanuelcardona94]

WAY TO GO!

[@wkdravenna]

What?

[@vicepresidentmikepence889]

Did he " way to go" her living in an apartment???

[@jeanlenor1858]

Excited for nothing.

[@nowthatsurban]

@@vicepresidentmikepence889 he was obviously cheering her on for getting rid of her debt. Must have been a timing issue.

[@blackworldtraveler3711]

@@nowthatsurban That was a heck of a delay.

[@heleneelong3679]

I like Anthony's personally. Great job.

[@jjfragglerock5020]

Townhome owner for 14yrs, my HoA has averaged $12 increase a yr. it’s definitely a big factor to consider.

[@andredavis2928]

That sounds like just inflation...taxes and insurance average increases too.

[@superblump87]

$12 dollar increases a year? Did you have to pick up a second job?

[@MT-yx5cu]

@@superblump87 was that sarcasm 🤭? One could argue $168 can be a lot on an extremely fixed income during retirement😄.

[@superblump87]

@@MT-yx5cu no sarcasm 🤭. Is the number $12 or $168?

[@MT-yx5cu]

@@superblump87 $12 × 14 yrs = $168

[@hollyb6885]

I want with a 30 year mortgage but paid double payments most months but didn’t when I had to replace a water heater, etc

[@wewhoareabouttodiesaluteyo9303]

That is what I would do. Go with a long term loan and then just pay it all in cash like within a year. lol

[@hollyb6885]

@@wewhoareabouttodiesaluteyo9303 It worked for me.

[@joeb1522]

Smart decision. A lot of people aren't disciplined to do that, so I think that's why Dave tells everyone to get a 15 year fixed.

[@hollyb6885]

@@joeb1522 Yeah. Most folks who call Dave aren’t very disciplined with money. I’ve always been disciplined and frugal. My husband was the same way thank God.

[@k-mart7475]

This is stupid. Whoever does this is stupid too.

[@moneybee]

Hope she can get that emergency fund funded!

[@link2299]

Stabilizes, until you need a new roof, even if it’s a condo, enjoy the 20k cash call. In her case, she literally doesn’t want a house, she said that. Just rent, way less stress.

[@ZaydenJayy]

It’s so ironic how when ever I’m thinking something I go to KZbin and Dave is answering my thoughts lol

[@sami-9233]

Algo rhythm

[@kashyapdamodar7338]

Dave will not tell you this, but that's not what you call "Ironic".

[@taps4615]

I wonder if the advisor said that based on her age and being able to pull it out without penalty but I think better off just putting into index funds and paying capital gains......

[@mph5896]

Agreed. Roth IRA, no. Invest in mutual funds, keep in the same fund over a year. Pay long term capital gains on any profit.

[@eckankar7756]

she needs a part time job to bring in more income.

[@famousamos1]

@@eckankar7756 that or find out how she can increase her income through her current employer.

[@famousamos1]

@@mph5896 I disagree with you on no Roth IRA and here’s why. For one she’s not going to be able to save enough in 1yr for down payment unless she turns off saving 15% in retirement. Plus if you invest in stock mutual funds for 1yr then you take greater risk that you might lose money in that time frame.

[@eckankar7756]

@@famousamos1 or both

[@mistiinseattle]

Condos are a huge mistake. Ask me how I know lol. You get hit with increasing HOA fees and massive assessments, plus you don't own the land and the whole thing can be bought out from under. I was fortunate to sell when the market went up. Never again.

[@N8RTH]

Unfortunately, with housing costs here in Colorado, a 30y loan is about the only way a regular person can get into a decent home.

[@Silidons91]

(laughs in southern californian)

[@Ano-yj1sc]

Yep.... I’m in CO Springs, and even if you got your 30 yr, good luck finding a home without extra cash on top of your dp due to the ridiculous inventory.

[@jlozano180]

Exactly, same in the northeast

[@alexpeguero38]

Worse in NY

[@CityCinderella]

I’m not even a financial advisor and I thought the parking it in a Roth IRA was bad too! LOL

[@joseaguirre744]

“Age bracket”

[@HorrorFreak68]

You don't pay penalties if you withdraw the principle from a Roth.

[@user-ls8rl3mo8e]

This is why you guys should have your license to give out this type of advice. It is NOT TRUE that she would be paying penalties in a Roth. You can take 10k out of your Roth to put towards a down payment on your first house. Learn your facts before you open your mouth.

[@yellowpants1008]

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[@silasdietrich7464]

2:50 what penalities? First time home buyers don't pay a penalty for early withdraw if its for a house from a Roth, only IRA

[@DoctorSmartyPants]

Caller never said she was first time home buyer

[@leatherface9377]

Love the idea of a condo but lord having neighbors

[@johniii8147]

Why did I get a ball trimmer ad?

[@webfreakz]

Why not? It's a hint 😂

[@evalina98000]

Have mo den ½ dozen relatives wit 20+ years retirement after stopped working @ 70. Part of "...very high statistical likely hood of making it into your 90s..." data Uncle Dave gives. 👍🏽

[@wewhoareabouttodiesaluteyo9303]

"I have more then a half dozen relatives who had 20+ years of retirement after they stopped working in their 70s. They are the part of the "very high statistical likelihood of making it into the 90s" data that Uncle Dave mentions.

[@HorrorFreak68]

Your property taxes and homeowners insurance go up every year.

[@blackworldtraveler3711]

You need to speak for yourself on that.

[@Nintentional]

False, you do not pay penalties in a ROTH IRA if you withdraw the principle before retirement. A roth IRA is a good place to park your money so long as it’s not in something speculative.

[@Tr1Hard777]

I refuse to live under the supervision of a home owners association.

[@blackworldtraveler3711]

Your choice to live "under" a homeowners association whatever that means.

[@jlove4527]

Not great advice...a condo does not always appreciate. Depends on the building. Same money invested in the market may appreciate more than rent increases. Why do a 15 yrs mortgage. Do a 30 and pay extra each month / pay down faster. Also, payment requirement on a 30 yr is less than a 15. Gives some flexibility if things get tight. These guys are hacks. They should be asking - is the condo building good, will it appreciate in value, are HOA fees reasonable. Money in a condo needs to beat nominal return with same money invested. These guys are giving out advice without a calculator. Think it through.

[@Joy11009]

I wanted a house, it’s only me, I’m 41, still working to get out of debt next 2 years. I rent a apt. But as I get older I know as a single person, I can’t be renting apartment forever. I’d like to retire not worrying about rental. But with housing costs so expensive I wouldn’t be able to afford it cash, maybe a condo? Maybe a house if I save for 10years or so till I have $300k cash saving all my money I don’t want a mortgage for ever🙁 I don’t want to share walls with others lol. Then the remaining of my working life save my money for retirement?

[@tomtensecretlanguage9273]

Dave is such a silly boomer about the 15-year mortgage. Get a 30-year, pay it off AS FAST AS POSSIBLE, and have the loan recast yearly.

[@DoctorSmartyPants]

I think the only way a mortgage loan can be recast is by refinancing. But I agree she should go for the 30nyear lower payment plan and reduce her risk. And obviously pay it down as quickly as possible

[@tomtensecretlanguage9273]

@@DoctorSmartyPants Recast and refinancing are different. A mortgage loan can be recast based on the terms & conditions of the loan.

[@DoctorSmartyPants]

@@tomtensecretlanguage9273 ah OK thanks

[@karenklepsch5248]

A condo comes with condo fees along with house payments and property tax payments do the math, and hope you can keep up the payments when you decide to retire.

[@onekoolfella]

I was thinking the same thing. In some big cities, the condo maintenance fees are almost as much as paying rent.

[@oldtwinsna8347]

@@onekoolfella Follow proper due diligence. if you're in escrow, there's usually a penalty-free opt out clause where the HOA must provide all documents for your review, including financials. The more amenities, the more you're going to pay. Things like pools, interior air conditioned corridors, exercise rooms, etc. Newest one is to see if they have solar panels, big warning sign of massive future maintenance costs.

[@rethinkcps2116]

@@oldtwinsna8347 - and charging stations for electronic cars. GM shooting for entire fleet gone electric by 2025 model year, per CEO Mary Barra interviews in early 2021.

[@mediolanumhibernicus3353]

Dave definitely does not appreciate the reference to ‘age bracket’ at 2’50””

[@MT-yx5cu]

It's the truth. Why be ashamed of your age?

[@barbieblue3336]

2:50

[@DoctorSmartyPants]

Anthony's kind of dope, now watching this 3 years later. No wonder he's gone off the show

[@jesusjeronimo8432]

I thought you could take out your initial principle from a roth IRA penalty free? Correct me if I'm wrong

[@harrychufan]

U can and there are special provisions for primary home buying (I would never do either early though)

[@blackworldtraveler3711]

You can. I knew but avoided this. Glad I didn’t take money out because I’m very pleased now because of the automatic reinvesting tax free dividend/interest compounding and growth through the years.

[@xst9880]

are consumer good prices higher due to inflation or greed right now?

[@alvick353]

Yes

[@steve1952]

She could compromise for a 20 year loan instead of 15 for lower payments

[@famousamos1]

She could compromise for 20yr mortgage however she would be age 78 approximately when it’s paid off. For her to retire at age 70-71 as she said then she should stick with a 15yr so she can live in less during retirement for 15-20yrs.

[@chrisstaub5880]

You also get lower payments by buying a cheaper house. Part of the idea of recommending a 15-year mortgage is that if you need a longer term to comfortably afford the payments, the house is too expensive.

[@alejandrob9657]

The roth IRA play is smart..... let the gains on your after tax contributions grow tax free and still have the ability to pull out your contributions without paying penalties cause you already pay taxes on it. Smart move

[@jimfarmer7811]

A roth ira isn't allways the best bet. You have to take into consideration the opportunity costs of the tax savings of the regular IRA. It really comes down to income tax bracket.

[@818silencer818]

@@jimfarmer7811 You can't pull out of a traditional IRA penalty free like you could with a Roth

[@Ano-yj1sc]

I believe you can pull a small amount out of your Roth prior to your retirement age for the purchase of home you will be living in (not applicable to second homes).

[@jimfarmer7811]

@@Ano-yj1sc you are correct.

[@alejandrob9657]

@@jimfarmer7811 Yes, thats true. Didnt consider that shes in her 50s with no nest egg. From the perspective of being in your 20s with plans of investing already, Roth all the way. Roth IRA, Roth 401k. Id rather pay taxes upfront on 50-100k income in my 20s than pay unknown taxes on my millions when im in my 60s.

[@guykenniker9498]

What are the monthly cost on a condo

[@wreckingopossum]

varies based on neighborhood and how many amenities you want

[@chriswalter92]

I've come to realize that the key to amassing wealth lies in making sound investments. I purchased my first home at the age of 21 for $87,000 and sold it for $197,000. My second home, acquired for $170,000, was later sold for $320,000, and my third property, purchased at $300,000, fetched $589,000, with buyers covering all closing costs and expenses. Not reaching a million before retirement feels like an unfulfilled goal.-

[@tahirisaid2693]

I'm exploring different investment opportunities and would appreciate others' insights on this matter.~

[@chriswalter92]

I initially started my investment journey with the guidance of a financial advisor named *Jenny Pamogas Canaya.* Her transparent approach granted me full control of my investments, and her fees are reasonable, considering my return on investment. Nonetheless, it's crucial to conduct thorough research before engaging with any financial advisor.-|

[@davidgrant9132]

You can withdraw from Roth IRA for down payment tax free- if it’s first time home buyer.

[@DoctorSmartyPants]

Caller never stated she was a first time home buyer

[@VJWLPN1]

I wonder if we should pay off our home with money from the IRA and stocks. We are in our mid 60s?

[@vinish542]

bro, $1200 mortgage payments is not bad. I rent a one bedroom for 2100 a month and that’s considered cheap in my area.

[@DoctorSmartyPants]

This was three years ago.

[@user-nx7yf9gv1f]

Condo fees, insurance & property taxes always go up, no?

[@dbrewer53]

Right now is the worst time in history to buy a home. Prices are inflated Too much. Real estate bubble gonna pop . Wait til it pops

[@blackworldtraveler3711]

It's not happening everywhere in the U.S..

[@blackworldtraveler3711]

@Natural Healing Methods If you and others think every home in the U.S. is inflated or too inflated that is a good thing. Keep thinking that. Not saying anything else.

[@blackworldtraveler3711]

@Natural Healing Methods Good. What I like to hear. Keep thinking that.👍

[@DoctorSmartyPants]

Well, it's 2 years since this comment. No popping g of any housing bubble. Values still creeping up.

[@komranbehbehani6379]

I wanna buy a Tesla so bad but I know it not Dave approved gotta finish college first!! Should you buy a house first?

[@blackworldtraveler3711]

You don’t have to buy either.

[@djpuplex]

That buddy is trolling her.

[@sami-9233]

Why you think so?

[@MrEvilTag]

NO. Condos are an all around waste

[@maryrenaud6732]

Not true. In many areas, Condos are much more affordable than houses. Our all in cost is below $500 per month with no worries about landscape or exterior maintenance, cable, building insurance, etc. This allows a nice retirement with lower overhead than even RV life. Lower cost = lower property taxes. However, if you cannot abide by rules, and living with neighbors, it isn’t for you.

[@MrEvilTag]

@@maryrenaud6732 its a glorified apartment and hoas are a joke

[@DoctorSmartyPants]

Why does caller have to say she is female? Is this not obvious?

[@dababycar2899]

Can u plz not have ads like Dave is worth 500 mil u really needs ads???

[@CuriousYouth1]

Get KZbin premium to avoid ads. The Ramsey Show is a business that needs income, not a charity.

[@dababycar2899]

@@CuriousYouth1 bro I mean like this KZbin maybe makes 100k a year so like there is no point for Dave

[@wewhoareabouttodiesaluteyo9303]

There are ways around it. I am not going to specify or else youtube will find a way around it.

[@dababycar2899]

@@wewhoareabouttodiesaluteyo9303 well idk how plz help

[@ThatPrestige]

@@dababycar2899 Dave doesn’t earn from this KZbin he just creates a career for the editor

[@Seethi_C]

You can withdraw contributions from a Roth IRA, penalty and tax free

[@ladycork5133]

at 3:16 why would she pay penalties with a Roth retirement acct?

[@DoctorSmartyPants]

She wouldn't. Anthony is clueless and wrong

[@nicholascooper1193]

The Roth IRA seems like a smart move, given her age. Save and wait till 59 1/2 then take what you need out...

[@aickoyvesschumann3400]

Correct! I was about to make the same comment. Unfortunately, Dave's methods are based more on psychology than pure math. If you are head strong and in control, math beats the Ramsey approach. Many people are not and for them Dave's simple steps make more sense.

[@DoctorSmartyPants]

59 1/2 rule only applies to traditional retirement savings, not Roth

[@PlasticPellets]

TooCloseToTheBridgeOfYourNoseIsYourEyes

[@bobslenker27]

It’s a condo, not an apartment!!! 😆

[@stacyh1223]

I think she should keep renting.

[@dennisbuckner6259]

Take your commercials and go away

[@coconutsfor2963]

But you can move - and rent will be way cheaper

[@janetcross2797]

No no no

[@unconvention1]

Why did he say she doesn't want a big refund from taxes?

[@famousamos1]

Because a income tax refund is just a return of overpayment of income taxes basically your money that IRS has held for a year and pay you no interest on it.

[@unconvention1]

@@famousamos1 so how would you get them to take less taxes? Are there any penalties for doing so?

[@DoctorSmartyPants]

​@@unconvention1iIts not that you would pay less taxes. It's that you would have less withheld from your pay. This is adjusted by completing form w-4

[@jorgeanaya4393]

Lol where I'm from nobody gets thought this!..😒

[@MrJay197409]

You couldn't give me a condo at any age no idea why people buy them.

[@euenfheiejrj]

If you want to be in a downtown of a city, it’s mainly condos and the single family homes are super expensive.

[@MrJay197409]

@@euenfheiejrj condos are not cheap either condo a glorified apartment with association fees and that said association trying to tell you what to do. Price people pay here you can buy a house.

[@euenfheiejrj]

@@MrJay197409 I live in a major city and love it but it would cost a million dollars for a single family house in the city so a lot of people who want to stay in the city choose a condo. That’s why people choose condos. It’s a certain lifestyle and I can see why younger couples would enjoy it and older individuals who do not want the maintenance of a house. You may not want it but that’s why people buy them. I don’t understand people who have HOAs with a single family house in the suburbs. I would never do that.

[@Chelle-kd1po]

My husband is retired, & we moved back to our home state to care for our mothers. They live about an hour apart, with a major city at the halfway point. We bought a condo in the city so that we wouldn't have to deal with as much maintenance, because my husband helps both parents with yard work & so forth. Also, I have a few years left to work, so living in the city provides more options in that regard. Our HOA pays for the common area maintenance, pool (which we enjoy!), & all utilities except electricity. We're across the street from a walking trail along the river, we're close to doctors, & we can walk to concerts, events, shops, & restaurants. As we get older, we will not have to worry about our own yard work & maintenance that we see our parents struggle with. I feel safe staying there if my husband is the first to pass away, & vice-versa. Everyone has their reasons.

[@jdbucha]

Plan to retire overseas. You can live well in South America and Southeast Asia and retire at a younger age. Why are Americans so fixated on retiring in the US?

[@blackworldtraveler3711]

Because we are free to live where we want.

[@Isaactorres60]

Incredible how immigrants experience bad treatment here but when Americans want a cheaper life overseas then we gotta be accepting and understanding.

[@andresnunez576]

As of today you can takeout Roth IRA contributions tax free and penalty free. When it comes to interest you have made you can withdraw up to 10 thousand dollars from your Roth IRA towards buying a home for the first time no penalties but taxed.

[@vinish542]

homeboy just forgot home equity existed