Should You Buy a House? (First Time Home Buyers)

[@ThePlainBagel]

Happy Friday everyone! Here's the Blinkist link for a 1 week trial and 25 off the membership fee: www.blinkist.com/theplainbagel

[@datguy8662]

How do u come to this 3x rule, explain pls?

[@matthewmatthew638]

3x income and 30% rule *checks* yeah that will probably buy a half-decent parking space here

[@cameronhoglan]

Haha yeah. Are you in California? It's getting just as bad over here in Colorado.

[@SniperReady]

Exactly my thought, an intro 1br 500sq/ft condo at the edge of the GVA is $500,000. You’d have to make at least $120,000 to properly consider that cost. It’s just unrealistic for most people.

[@carmp3fan]

It’s a general rule of thumb. Most places aren’t stupidly expensive. Where I’m at I’d have a mansion if I based it off 3x my annual income and I’m single. I already have a 3000sqft 4br/3ba house and it’s only 1.25x my salary.

[@SniperReady]

@@carmp3fan Most places ARE stupidly expensive. That's the problem. If you based it on some arbitrary geography, everyone would just move to the phillipines. But that's not realistic. If I moved to the cheapest area of my country, I'd still be paying 3-4x my salary at $80,000 annual. Given that this is apparently an anomaly of a high salary (as others delight informing me repeatedly) it's completely unexpected that anyone but the very lucky few can afford a home at all.

[@TheChiefCoin]

In London the house price rise and fall by 15% every year. It's very risky buying in London.

[@firebfi5902]

I’m 16 and watching this video makes me feel like a middle-aged man

[@Itsmellsfishy]

Doesn’t get any better bud.

[@feuerfrei7070]

The earlier you think about your income and future the better.

[@Steven-wq8tx]

You’ve got a great head start into finances if you’re watching these videos at 16. I’m 10 years older than you and I’m just learning this now

[@pawsnotclaws2772]

Lol

[@TibGamingShow]

They should have an economic class in high school as in elective n teach stuff like this for y’all young bloods!

[@HowMoneyWorks]

If you’re watching this and are not subscribed, what are you doing? Just watching his videos makes you better with money. Get this guy to 100k!

[@sampradrajauprety]

Now we gotta get him to 1m!

[@Kona138]

That intro!!

[@androidboss559]

Who is he imitating? Which KZbin "Influencer?"

[@ahkamn]

@@androidboss559 I'm not sure about the intro, but the outro is a jab at Graham Steven, and I love it

[@Kona138]

@@androidboss559 it has to be Grant Cardone!!

[@joeysantoro4835]

@@androidboss559 look up "free real estate"

[@menumlor9365]

Literally every get rich quick guru out there.

[@lithostheory]

*whispers* “it’s free real estate”

[@josejaviergordillo8205]

I think the 30% rule is a good start, but I go with the monthly house payments shouldn't be more than 33% of your POST tax income. It's slightly more conservative

[@PradedaCech]

Loved the jab at Graham Stephen at the end. :D

[@alvachan88]

It's more kevin.

[@matthieu168]

Hi Richard, you take the time to put together great videos that are well documented, researched and made, so I wanted to take the time to thank you for that. Finance is not only my job but my passion, and watching your videos always teach me something, give me a new perspective on things or allow me to share this passion with people I love, usually because you explain the concepts way better than I would be able to or because you address the different topics with such a fresh look. Thank you, I'll keep watching and sharing your content, and I'll be supporting you through Patreon going forward. Have a good day :-)

[@ThePlainBagel]

Thank you for the very thoughtful and kind comment :) Glad you find the videos helpful!

[@matthieu168]

@@ThePlainBagel Just subscribed for your patreon, hope all together we'll help you going forward with your channel :)

[@---GOD---]

The management of money is your passion? Weird.

[@kencharles1136]

@@---GOD--- trolling is yours ? Weird

[@---GOD---]

@@kencharles1136 ok virgin

[@squishtomar1676]

Love that these videos are high quality and Canadian related.

[@billschlafly4107]

When I was a child back in the 70s and 80s I realized that "rich" people owned their homes. Twenty-six years ago I bought my first house. I was 23 and I was scared to death. Before we bought, our agent tried to convince us to spend more than our rent because we qualified. We got a new agent. Be careful out there. Learn the market. If properties are going faster than you can think then let it go. Emotions are not your friend when you are trying to make a strategic decision. Since then I've owned 7 and sold 6 homes. Most were winners...none were losers. Good luck.

[@nachannachle2706]

Great summary of the past practices that still apply today. :)

[@billschlafly4107]

For clarity, I live in the US of A.

[@nachannachle2706]

@@billschlafly4107 I live in Australia, and this is textually what happens day-in day-out. But we all know that Australia is the USA's little faithful sister, so...

[@bartsimpson1231]

The 30% rule is actually the standard used by banks here in South Africa when determining affordability.

[@Gorlokki]

Be careful of buying a house together with a girl/boyfriend, that can backfire HARD if the relationship doesn't work out

[@trop1cal5k1ttles]

who in their right mind buys a house with someone they aren't married to lol.

[@Ilovepineapple]

Sora Akemi marriage too can backfire.

[@onlyabudi]

@@Ilovepineapple no shit

[@Afritunez]

U need to lay the PIPE properly brah! common now!

[@TibGamingShow]

😂😂😂y’all niggas funny ! I don’t wanna married n I wanna buy a house with my girl tho ! Fuck it’s a hard choice !

[@PocketAces500]

Awesome to see Canadian content!

[@xzjulius]

I actually love your channel and I hope you keep going!

[@georgegoucher8569]

Loved the first 30 seconds of this video (in addition to the rest!) so many get rich quick of real estate videos floating around youtube, glad to see the sobering sanity of your advice! Keep up with the great videos, been watching since the original 12 episode series and plan to keep going!

[@mykola4]

Im in Australia and my first place was like 9.4 x my salery

[@Not.a.bird.Person]

Great video! In hindsight (although this was hard to see coming 2 years ago), the real estate bubble that is occuring right now should deserve at least a warning to everyone looking to buy for the next couple years. Realtors will try to get you to pay unfair prices for real estate, do not fall for it too easily. Consider your options, your options are always open when you keep your money. They lose more by losing your business than you lose by not purchasing the house they want to make you pay 100k$ over asking price. Your liquidity is worth more than the illiquid asset financed with debt the current owner can't afford and is trying to pass on to you. He should be cutting his loss, not trying to make a buck on you. Never forget YOU hold the power when you hold the money and more time without a house simply means a higher down payment and less interests to pay.

[@CG_Hali]

Great video and info. Before we bought, we also checked our budget for a stress test at 10% interest rates (I remember my parents dealing with that huge hike in the 80's on their first house), and we also made sure we could still handle things if one salary was to go away for a while. Emergency funds and putting away money in advance for all maintenance like snow plowing for the season before the season starts, etc.

[@elusivemonk9254]

In London it's about 15x the average wage... 3x rule won't work 😂

[@alxnumsayn]

This is actually one of my first times commenting on YT... This channel is awesome! Thanks for the awesome content. Very insightful!

[@smallmj2886]

Nearly two years after this video was made and the real estate market has gone completely insane in hear in Atlantic Canada. Makes me glad that I bought 20 years ago. Not because of the appreciation but because of the housing security. Available housing (to rent or buy) is suddenly scarce and prices are skyrocketing. I could make a pretty penny if I sold, but where would I live?

[@berryvanhalderen7574]

These roles are US based. In NL the rule is 4.5 to 5x your gross income. Also perhaps since an $70k income, is way above average income in the EU. Also because we build houses using stone, rather than cardboard and wood. A typical house is expected to last for 100 years, which means that the value lasts longer and is worth paying more for. Insurance rates are peanutes here. The 30% rule is closer. The rule is more than 30 to 50%, if you earn more, you can get closer to 50%. But in the NL, buying a house is always more financial attractive than renting. You can take insurance for all risks (roof, heating) and you will still be better off. People don't buy but rent when they known they will leave within 6 years or cannot find a place to buy.

[@chrisgoslow]

I appreciate your well-articulated summaries and the quirky sense of humor, not only here but on other of your videos I've seen. Many thanks for posting!

[@UmTheMuse]

Morningstar had a very interesting paper on whether buying is a good investment titled, "The Home as a Risky Asset" by David Blanchett PhD, CFA, CFP®. As you can guess from the title, they were pretty negative about the idea, especially for those who don't itemize deductions. They conclude that, once you account for expenses, your real rate of return is around 1%. One percent! Now, that doesn't necessarily mean that renting is inherently better for your wallet. I think the actual take-away is that you should never buy more house than you need, with the expectation of selling the property later for more. On the other hand, also remember that a home can be very hard to sell when you need to. That's both a strength (you're not tempted to cash in) and a weakness (sometimes you have no choice).

[@rezneba101]

Let me rain on your parade: you have to live somewhere. Those expenses are largely recuperated if you purchase your house instead of renting. It will cost more upfront, but in the end you will be left with good equity. I bought for 180000$ 15 years ago. The property is now worth double that and due to the pandemic and the rural exode, it is worth triple and a little more now. I remember doing the math and the living cost for 15 years was 35-40000$.... this was pre-pandemic. Now I'm in pure profit, all debt and upkeep combined. But let's go back to 40k for 15 years. That's about 230$/month of rent. So I lived in a 11 room house, no neighbors, land, for not even 8$ per day. Now let's go back to the fact that my property tripled and is now not only not costing me a dime to own, but it's actually making me money, especially now since mortgages are stupid low and that 180k after 15 years on a 25 year mortgage is now only 80k. Yes, that's all considering that I had the roof reshingled, completely new hvac and water heater. I guess the key is not buying iffy property in iffy locations. The only way that you should consider renting is if you totally reinvest the money you save in the present to offset the no gain in equity in the long term. That or if your life has you relocating all the time. My mortgage is below 800 per month and I assure you only the crummiest appartments available here are renting for about the same amount, so good luck balancing out my equity with stocks you can't buy in the first place. Btw, I did buy more house that I needed; the bank refused me without a co-signer. Long story short, I've leveraged my housing costs completely by purchasing a house. Sounds crazy but not owning would be crazier.

[@Jorg303]

I bought a prospect for a new apartment 2 and a half years ago here in Norway. In the time waiting to overtake, the value has risen by 33%. Im glad i did take the "risk".

[@rogofos]

In Russia real estate is cheaper and government dont really provide much of protection in rent. So here the choise is obvious.

[@robellyosief8820]

рома иванов how much is rent there compared to buying a house

[@rogofos]

@@robellyosief8820 almost the same, but really it depends on a city and on a bank. It can be wildly different even in different places of same city.

[@scrappychildhood6633]

Do Russia Have pumpkin Alcohol eggnog alcohol? I am trying healthy alcohol then build $ empire on health trend. avoid Law suite

[@catcat7835]

In Russia you can loose everything just in one day, simply becausw the government is corrupt, new laws written everyday, so choice is obvious (don't touch Russian real estate, even with a stick).

[@scrappychildhood6633]

@@catcat7835 What if your Millionar billionar

[@sommi888]

❤️💙💚💛 3x income rule will get you a VERY nice parking spot here in Sydney. ❤️💙💚💛

[@funkadelicflowerchild7403]

Finally a video about buying a house that doesn't have a person screaming at me

[@CharlesPanigeo]

Thanks Richard. I just got the keys to my new house today. I want to thank you for producing quality content and putting me on the right track with my finances.

[@StuffedBox]

I like that you said "imagine you are buying a house for $400,000", because that's all I can do when Houses in Toronto starts at $700,000. Unless I want to buy a bachelor condo

[@alexiszamora7458]

WHY DOES EVERYTHING COST MONEY?!!!

[@razin275]

MOOD

[@lelyollo4926]

We live in a society

[@TLM860]

You can fix that with some Monopoly money!

[@UmTheMuse]

Everything costs money because the market for souls dried up.

[@davidmmm8]

UmTheMuse - Aint this the truth!

[@sbrazcan6596]

I live in Toronto, you can't even find a shed for under 700k anymore. The average price for a family house is around 800k I think. This current housing market is insane and not really for the salaried middle class folk.

[@masterbjohnson2]

People in Australia go by the 9x rule, not uncommon for a standard house being upward of $1m

[@canorth]

I think the takeaway from the banks during the last financial crisis was “we should destabilize the renters market next time so our bailout checks are higher”. I own a home and it’s over 120% higher than when I purchased it three years ago. And that’s not counting all upgrades we made including adjusting two rooms to make them classify as bedrooms. Went from a two bedroom home to a four by just putting wider windows in in basement rooms. So I imagine the 120% is actually way lower.

[@14loosecannon]

Watched a few of these videos now (great content) and this is maybe the first one where I REALLY noticed the Canadian accent XD. Also the salary multiplier here in the UK is normally about 4.5x.

[@shannonparkhill5557]

obviously doesnt apply to Australia or New Zealand, where average price increases are 10% (not 3%!!) and by your rules no one can buy a house!

[@robertagren9360]

It has always been the goal to make everyone paying a monthly subscription to license their house.

[@alonys]

What most people don't understand is that as long as you have a mortgage to pay the real owner of the house is the bank and not you and they are not nice if you get into difficulties. If you are cool with having a bank over your head for the next 25 years then go ahead.

[@nachannachle2706]

Well Richard, it looks like you exorcised your own worries by going through the logical steps of the purchasing process...thanks for sharing your views! I bought my first home 3 years ago and it was a pretty straightforward experience: save, borrow, move in, renovate and save some more. I have drastically increased my home equity prospects by virtue of the local property market going -18% in the past year. Oh, and this is a house that will become an investment property in 2 years, with all the tax benefits that come associated with it. So, my biggest advice to people buying their "first home" is to consider it for what it is: a *FIRST* home. Many more real estate purchases/transactions will follow. ;p Edit: I forgot to mention I live in Australia, which has an even bigger RE bubble than Canada. :)

[@alphabet_soup123]

What about all the stamp duty you'll be paying if you're just upgrading/changing homes regularly? And agent selling fees? I live in Australia and honestly I think its weird that anyone would have the same plan that you have at the moment. It may have worked in the past, but there were conditions then that won't apply to the coming decades. I have friends that have bought crappy homes in crappy suburbs because it was all they could afford, and their capital gains have been minimal. Sure, some folks get lucky.. but many have lost out, like those in Perth, NT or Queensland. If we have a recession, I expect a lot of speculators are going to be going bankrupt.

[@nachannachle2706]

​@@alphabet_soup123 A lot of people sell/rent their homes themselves nowadays: no need for an agent. In fact, experienced buyers (i.e Non-FHB) prefer NOT to go through RE agents for their subsequent purchases. Re: stamp duty, so long as you have price appreciation on your property the moment you sell, you are not losing much moving from one purchase to another. Re: speculators, a lot of them are people who overuse their existing properties' equities to get more and more investment properties. This is done in combination with interest-only home loans and negative gearing to build their "wealth effect". I agree that this might SEEM unsustainable, as the demand for house purchases is being stalled by Unemployed Millennial Graduates. However, the rental market will never disappear: those who can't buy a house or who needs a temporary dwelling (tourists, backpackers, foreign students, low-income workers, etc) will always make the bulk of Real Estate transactions. Home ownership (where you live) has clearly morphed into Property ownership (where you build income/wealth). Given this new paradigm, my view is that holding A FEW (rental/BnB/commercial) properties that pay for themselves while living/renting in your preferred location (close to your workplace/close to shops/close to schools/ close to transport, etc) is the best bet for the future. Ps: I am in a very touristy location of Regional WA where there is a continuous inflow-outflow of workers from mines/hospitality/government services. My outlook certainly doesn't apply to everywhere in the State/country. Always DYOMR. :)

[@GenExDividendInvestor]

A lot of my net worth came from buying houses I loved at great prices, living in them with my family for a few years, and then selling them for significant profit (more than my annual salary). I've done this multiple times now. I took those profits and put them in quality dividend stocks (and an emergency fund, as well as used for my $ down on my next house). I know a lot of people say your house isn't an asset, but then my response is that I guess I've made a ton of money with my non-assets. Some of those same people tend to say dividends are irrelevant.. The key is finding an awesome deal (you make your money when you buy a house, not just when you sell), and make sure you can easily afford the mortgage. No guarantees in life, but this strategy has worked for me. My 2c as some random internet person.

[@davids6271]

Thank you random internet person, good advice.

[@niloctrs9581]

Seems to work but clearly not for everybody, and not for those who said it’s not an asset

[@GenExDividendInvestor]

Dakota M I agree. We moved when we thought it made sense to move (like we had kids and wanted better schools, or job reasons, etc) and then reaped the profits. We didn’t move for profit reasons... my point is that your house can be a huge asset, not a liability.

[@REgamesplayer]

Isn't this strategy is essentially killed by taxes? I do understand that due to ever rising real estate costs, it is feasible to ever get higher return on your investment. However, after a while, housing market gets competitive and overvalued. This means you can't find those good deals. Furthermore, any profits you earn will be considerably reduced by taxes and all minor expenses involed in buying and selling real estate like that.

[@timburton2853]

I really like your channel it’s refreshing compared to other influencers that just promote real estate as a 100% risk free option

[@pablouribe1522]

The transition from flame bagel to plain bagel is epic.

[@yolopookie]

Why do all of these advises count pre-tax income if you're paying with past-tax for all the expenses? Makes no sense. Calculate with net pay, you don't see your gross pay EVER anyways.

[@nachannachle2706]

Well-said. :)

[@Contra010]

I agree, i've also wondered that as well

[@LuxATemporeNostro]

I don't know the specifics for Canada, but in some countries you can deduct taxes for interest payments on the loan for your house.

[@lanceareadbhar]

I think it's just to make the math easier. It would be a different formula post tax. It's also a very general rule to use as a starting point, not in making your final decision.

[@probablyro]

In holland you can get money back on your payments based on pre tax income

[@MylesDanielBaker]

You overlooked near-term changes to salary and their effect on affordability. For example, if your spouse is finishing school and will enter the job market in the next 6 months, your lifestyle and the house you can afford will likely change, sometimes drastically.

[@ColinSemple]

By far this was the best video I’ve ever seen on this topic. Everything was covered accurately and fairly. You did an amazing job on this one!

[@RomainDelmaire]

I'm waiting to get my finances in order as well as the down payment. But the more I wait, the higher prices go and the less likely it is that I'll ever own a house. Or at least, unlikely until I can move out of the city.

[@GrowthMindsetProductions]

*Real* *estate* *is* *my* *favorite* *way* *to* *invest* . Just keep in mind that if you plan on purchasing a property to rehab and rent out, have about 20% of the purchase price in reserves in case any surprises happen along the way. Cheers!

[@simonchau8675]

Do you mean on top of the downpayment or do you mean just have it laying around as a rainy day fund?

[@GrowthMindsetProductions]

@@simonchau8675 Great question. Essentially have the 20% funds laying around in case of any rainy day events. So if your mortgage and rehab project was 100K, aim to have an extra 20K in the bank so you can survive any waves. Does that help? I personally ran into hiccups in my rehabs, and if I didn't have extra funds laying around I would have been really motivated to get rid of the property or find extra cash to cover the hidden costs.

[@simonchau8675]

@@GrowthMindsetProductions yeah thanks it makes alot of sense. I've been trying to buy my first property but not too sure about how everything works. This piece of advice is definitely a great start.

[@GrowthMindsetProductions]

@@simonchau8675 Hey you might be in luck, I have a couple of videos about how to get started in real estate. I think the 2 videos that might help are "top 10 real estate questions" and "10 easy steps to buy a house". I point to those videos when my friends ask as well since I had to spend many hours figuring it out myself and decided that a video would save me and people a lot of time from having to repeat the learning process. Let me know if you have any other questions that come to mind =)

[@simonchau8675]

@@GrowthMindsetProductions thank you. I'll check them out

[@craigbuckley7603]

Buying a house is like buying food you over pay for it because everyone needs it

[@stachowi]

wrong... they don't need to buy your house, there are always substitutes. Just like plastic replaced metal in products, people can just buy smaller homes or just rent. Around me, property taxes are so high that many people don't even consider buying a home in the area, so that hurts anyone trying to sell.

[@07JaK92]

I would love if you revisited this post-pandemic.

[@njclondon2009]

as a londoner, i laughed my ass off at 3x household income. damn, we need to learn a few lessons about canadian home ownership...

[@Fedi222]

Love your channel. Thanks you for all the work.

[@IvanDankinov]

Just a note for some people. The part for interest/principal is not true in Europe. Here in Bulgaria, for example, you can return all your principal after the first year, you need to pay only the standard bank fees for recalculating your Loan or closing it. :) p.s. Greetings from Bulgaria, love your channel.

[@ThePlainBagel]

Thanks for pointing out the exception!

[@BigHenFor]

It depends on your mortgage lender's terms and conditions. In the UK one has to be careful and read them as lenders differ in how they deal with principal repayment. All will allow you to repay the mortgage off early but charge you a hefty fee for that privilege to make up for the lost income, and that can vary. Some will allow overpayments - some monthly, but others will only allow overpayments once or twice a year. So, shop around. Especially as the costs of buying a house won't be fully recouped for at least 3 to 5 years after buying it.

[@Shuker8964]

3x income and 30% rule: toilet with sink and a bathtub that doubles as bed

[@ananthnarayanan7246]

Hi bro ! Just wanted to say i love all your videos and also I'm going to take the CFA level 1 exam in December 2020 and I'm thrilled about it! Can you upload another video on CFA🙏❤️! Kudos from India❤️.

[@khusseinkhomeini]

I also live in Ottawa and the prospect of entering the housing market is daunting. I'm looking to potentially buy a home for investment purposes although I don't need to at my current stage in life. I'm aware that that would effect my eligibility for the first time home buyers program but I'm scared if I don't get in now it will be even less affordable in the future... Hopefully you won't be financially relegated to Ottawa's suburbia (i.e., Orleans or Barrhaven). Unless that's your jam. Best of luck with this next big step. And there's always Gatineau if you're feeling thrifty haha...

[@JJs_playground]

I think Gatineau (especially plateau) is going to be the next hot area. As more immigrants come to Ottawa and realize the costs they'll start looking across the river. Also the city and s realestate developer are going to spend $250M to develop a new shopping and condo area called AGORA, which will resemble Lansdowne.

[@MarcusW123]

Why calculate using pre-tax numbers? I've always assumed the 30% rule means 30% of your net income.

[@andreasabels589]

Looking back, this seems highly unrealistic. Where I live, loans are calculated with 2% repayment/year and 1% interest (fixed for 10 years lol). This is ridiculous.

[@haidernaeemmalana8601]

That intro man. Instant sub

[@SweetpotatoSisters]

Loved the intro, haha- went back and watched it once more before the main content.

[@prebengjestang4636]

Norway its usually max 5x your household income. So if you earn 50 000 dollar, u can loan 250 000 to buy a house. Many banks require 15% pre capital or some kind of value insurance from another person (parents etc)

[@wilhd123]

The 3x rule doesn't seem like something that happens here. Pretty sure the 30x rule applies knowing people who earn 60k a year but owe the bank millions in mortgages.

[@ProfAzimov]

Where?

[@sashrill]

im just saving until the next housing collapse. fingers crossed it comes only after ive saved enough.

[@davidbrooks8809]

I rent..I love it!!.. I invest the difference in the stock market

[@kool2btrue]

I live in California, even with my 6 figure salary I will never be able to afford anything given the 3x rule. Anywhere you find high-paying jobs housing costs are insanely inflated. Not even by buying a house and renting out rooms would I generate cash flow.

[@honkhonk8009]

Cali moment. I live in BC with similar prices.

[@sommi888]

🧡💛💚💙 In Sydney the average home costs $720,000 and the average median income is $83,000 🧡💛💚💙

[@portalomus]

Go as conservative as possible, there are so many hidden costs! Costs go up every year (taxes, utilities, and insurance), and there's always something to fix or buy for the home!

[@sebastianfranco8115]

Great video, thank you for sharing

[@julianomartins5949]

That intro was hilarious lol - well done!

[@LucianoSousa86]

Clever. I was looking for some maths like this for the Canadian market and it seems consensus everywhere. We can't compromise too much of our income on monthly debt. That's living a life we can't afford. Also, for a frugal person/family that don't go out too much, they can increase the 30% rule to 35% or a bit more, but they must be really good in control their finances

[@tiendoan1333]

Real Estate is a special asset classes that have great access to quality leverage. You can engage in a 20:1 debt to equity deal without having to deal with margins call or SEC regulation bullshit. Leverage in real estate is cheap, easy to access, and great to hold during recessions

[@mr_mw]

In Hong Kong, houses normally cost 55 times of the annual salary

[@MrMineHeads.]

Toronto markets are depressing so I feel you.

[@darlantro]

Thumbs up for that intro

[@niloctrs9581]

Funny seeing all those people posting different stuff on here, I think that this you present is more of an advise than education. You are limiting people or giving them to much confidence. Personally I would say buy some books and read about stuff before posting comments about stuff like that. The thing with me is I trust real estate the most and Wall Street the least( stocks, bonds,...) but this also comes from my ‘rich dad philosophy’ so if you have anything to say to me leave a comment ;)

[@robocop581]

I'm in the same boat but my retirement portfolio will be 65% rental income, 30% Dividend portfolio and 5% day trading stocks (to keep myself busy). I plan to purchase one rental property at 50% down during retirement every three years.

[@David-135]

Just preparing you for "owning nothing and be happy about it". Search the quote so you understand were this all going. How about discussing renting multiple houses and just collecting rent for job is such a really bad idea. Of course someone has to own property. If the Government owns it, well you know what that's called right?

[@justin6409]

Imagine trying to buy right now...

[@jpbredenkamp5091]

Honestly, you guys always make the BEST content. Thank you! I wish you guys posted videos daily 😂

[@NickPeitsch]

Buying a home is generally always a good idea if you decide to rent out a portion to tenants. This should cover a large portion of costs and might allow you to live for free!

[@drstrangelove9851]

Buying a house sucked the life out of me. I would've been better off living in a cheap apartment and investing all I had into the stock market.

[@jhutt8002]

Damn, house buying there souns expensive! I bought house two years ago here in finland. Downpayment was 5% for first time house buyer (10% otherwise), all the fees for deal counted in for 800 eur, we split between seller. There's no taxes for buyer. Seller doesn't need need to pay tax either, if they have lived in the house continuously for two years.

[@Jonathan2342]

A good rule to have in life, especially if you are young is to use debt only to purchase appreciable assets. If I could do it again, I’d borrow to buy blue chip stock investments that have a strong dividend record. Then you can get the benefit of the money in the market while writing off the interest against your taxes, something you can’t do with your primary residence in Canada. Buy a house only when you are ready to start a family.

[@Juan-og1yz]

This is my first time here and that intro caught me out of guard hahaha that was hilarious, well... and educational too XD

[@MusicMenacer]

great video, happy to be subscribed!

[@k-c]

6 months expenses + 20% deposit is the most rational way to go ahead with the purchase decision. However, the market can remain irrational longer than one can remain solvent.

[@protoretro1290]

Ah, the days where a home was just remotely accessible. Today. You better hope you are a millionaire or can live for 45000 years. Because the median house price, is now 45,000 times the median wage. And THEY JUST DON'T STOP RISING.

[@rahulshinde7464]

Nice Intro and a really great video! I think buying a house early in your life is not so great an idea as it (as you stated) increases risk and reduces mobility for new career opportunities to a degree. I think it is better to buy a house at the end of your career before retirement. I was influenced to do this by some personal experience from older relatives and Robert Kiyosaki's Rick Dad Poor Dad analysis. What is your take on it?

[@remlatzargonix1329]

No more than 30% of gross income?......then no one would buy a house in Vancouver! To be fair, no one who works for a living buys a house in Vancouver!

[@vijetarvindpatil7579]

James bagel Bond,Thank U so Much

[@robertpapageorge7623]

You and Graham could have a pretty cool podcast, two sides of the investing coin.

[@mic4902]

Oh, the past definitely predicts rhe future.

[@TheGuerrCZ]

LOL, in Prague (capital of the Czech Republic) small flat costs 250 000$ and average annual income in $ is 16 000. Quite sad :(

[@robellyosief8820]

HonzaJ wow I would’ve thought you lived in the silicone valley lol

[@fredericksharon6908]

Hahaha my annual income is peanuts.. and the houses in my place cost a bomb. I'm gonna be homeless when I retire..

[@PradedaCech]

Czechs spreading positive vibes even here, how typical..

[@thop722]

Thanks for the video. I’m looking into buying a place in metro Vancouver here too. I got exhausted time after time and ya your info helps a lot!

[@JJs_playground]

Damn, you must be filthy rich if you're looking in Vancouver.

[@zinebibanez8440]

I really digged the first 30 secs of the video but then it became so .......plain.......bagel!!!! Lol just kidding. Great video as always.

[@Coteincdr]

Your intros are awesome! Lol!

[@msgeorgejourney]

Great video !!

[@namewastaken360]

Haha, average house price in New Zealand is above $900k now! Almost 50% of first home buyers and debt to income ratios above 5 and that raises to 65% in Auckland. What could possibly go wrong?

[@jasonb111222]

Let's see, I did some number crunching and, using those rules, I'll be able to afford a house in....never.

[@graham1034]

Hahaha, the average house sale price here in Vancouver is $2.6m over the past month. So a couple needs to earn around $870k/year for that to be affordable (with $520k down). If that's too much 2br condos are only $1m. So the poors that are only bringing in $330k/year can still buy a place affordably. The destitute couple in the video example making a paltry $140k/year combined can almost afford a studio which are going for right around $500k currently. In all seriousness though, to me one big consideration is the rental amount vs the mortgage interest. If the rent is less than the interest then you might as well invest the difference instead of buying. This doesn't even consider maintenance, property taxes, or any other homeowner costs. You SHOULD (outside of bubble conditions) get a better return on your investments than housing.

[@mickyh93]

30% is petty awful practice for gross. Who decides how much they can afford based off a salary they don't get each month.

[@ThePlainBagel]

It’s probably based on gross because most people don’t know what their net annual salary is, but a good point nonetheless

[@TheUndulyNoted]

A house 3x my pre tax income is unaffordable 😂 I’d literally have to travel 150 miles to find a house for that, and I earn above average for both my city and my country (UK).

[@SomeDudeQC]

I could get a studio with a 75 commute. Sadly, the dog and girlfriend probably won't support my choice.

[@bkucenski]

Whatever the bank tells you you can afford, you'll be very comfortable at 50% of that and fine at 75%. At 100% you'll be squeezed if anything goes wrong. What you buy depends on your goals. If you can own for less than your current rent, you should buy. Rent goes up, mortgages don't and eventually go away. Buying a small property first with moderate repairs opens you up to renting it out later for a profit. And of course live where you can afford to live comfortably. Living where you can only afford a cardboard box is a very dumb life decision.