The Problem With Renting Long-Term

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[@brucewayne3892]

"I don't want to be stagnant". Bro you are 42, making 33k. You have been stagnant for decades

[@aojfewoj4]

the burn!!!

[@robloxvids2233]

This dude deserves a lot of credit for getting that bag and paying off all debt and getting a full E fund. A lot of people making 33k/year would get that check and buy a new Dodge Charger. Props.

[@Shortballa11]

Kinda weird giving credit to someone who had 40k in student loans at age 42 and only got bailed out through death. It’s more a thank God he benefited in some way

[@Jujubees225]

Why does a deserve credit? His mom passed away and she left money for him.

[@robloxvids2233]

@Jujubees225 Everyone's beating him up for being 42 with a low salary. Like I said, he could have went out and bought a new baller car, but instead did all the right things. If he can get his income up he'll start to change the course of his life.

[@SuperDanny1016]

What "bag" did he get?

[@robloxvids2233]

@@SuperDanny1016 Someone died and left him 100k.

[@FlansyLinny]

I pack boxes at amazon and make 21 an hour plus overtime at time and a half, he needs a new job. I made 60k last year putting books in boxes, I have no college education or anything.

[@fretlon]

I knew a guy back in the 90's that was single, no kids, and had the same attitude. He rented the same house for well over 30 years, then he came down with throat cancer. Due to complications he was out of work for almost a year and in the hospital for most of that. While he was trying not to die he had no income and therefore was not able to pay his rent. His landlord wasted no time evicting him and put all his stuff out at the roadside. Since he was still in the hospital there was nothing he could do (and was barely conscious enough to know) so everything he owned was either stolen from the roadside or destroyed by the weather. When he finally recovered enough to get out of the hospital he emerged homeless, completely broke, and still so frail he couldn't work. He died a couple of years later after spending those years migrating between the houses of acquaintances and homeless shelters. Having watched that disaster unfold I made the decision very early on I would own my own house. He literally bought that house for the landlord, by a large margin, and the landlord didn't think twice about booting him out of the house and dumping his entire life on the side of the road to be picked over by the vultures. I vowed my wife and I would never be in that situation.

[@michael88366]

You would never be in that situation if you rent for 30 years and invest the difference in the sp500. The alternative to a mortgage is not renting and just spending the rest.

[@clericstorm2009]

Nice thought, but it wouldn't have made a difference. In that case he wouldn't be able to pay his property tax, nor say his HOA fees. Would it have taken longer to lose the house? Maybe, but end result is the same. This is why insurance products exist for these types of catastrophic events in life.

[@superblump87]

The issue was he didn't have any savings, not that he was renting.

[@blackspiderman1887]

To be fair the same situation may have happened if he owned the home and did not pay the mortgage.

[@michael88366]

@@blackspiderman1887 or owned 100% of the home and didn't pay property taxes.

[@eggsinsideme]

Dude is 42 making $15/hr. Last thing he needs to focus on is buying a house.

[@enhancedutility266]

Right You got teenagers making that much or more

[@jimmymcgill6778]

I know He was so tome deaf on here. He cannot afford a house on his income.

[@Dan16673]

There needs to be some assesment as to why this guy cannot make more at that age. He might have a mental disability

[@enhancedutility266]

@@Dan16673 probably autistic cuz I remember reading some scientific literature how children born in 1980s and up there's been a spike of developmental issues

[@natersalad889]

You can literally make $ 15 hr being a walmart greeter..

[@jodylarson4697]

One aspect that Dave and Jade didn't mention is that owning has its own costs beyond the mortgage payment. You have property tax (which also goes up) and all kinds of maintenance costs. Refrigerator or other appliances go out? HVAC dies? Roof needs repair or replacement? You have to pay. A new HVAC can cost thousands. A roof, five figures. So those costs need to be considered when deciding to buy.

[@LuckyC1723]

You pay property tax in an apartment, just not directly. The property owner doesn’t just eat the cost of property tax. That’s included in the rent. When taxes go up, so does the rent at apartments. Also the interest on a mortgage can be a tax deduction. You can get that living at an apartment.

[@TexasMade903]

That's why you have insurance.

[@curiouscat3384]

I think that's why Dave is in favor of a condo for this man. Some HOA's cover a lot of those maintenance items.

[@stevennovakovich2525]

I’d rather rent and have none of that crap to worry about! Just call the leasing office, done.

[@crow-vz5lx]

I was thinking that too. His salary NOW will kill him if he buys a home now

[@radioheadfanlove]

I have never loved Jade more!!! (and I already thought she was so great!) When she told him his life still has meaning/there's a purpose even if not married w/ kiddos, etc...my eyes instantly filled with tears. You are amazing, sweet Jade! An intelligent and beautiful soul inside & out.

[@Ria24Ria]

That’s awful to think just because someone doesn’t have kids or is single that their life doesn’t have meaning.

[@igot5onit423]

Ya that's wild.. That gives you a little insight into how she thinks.. She's definitely little full of herself but I think she's a good edition

[@Ria24Ria]

@@igot5onit423 I feel like she is full of herself as well. The fact that she stated that, I was taken a back a bit.

[@radioheadfanlove]

Ohhh I am reading some responses here, and it's interesting because I didn't take it that way at all!! I personally appreciated what she said so much, because it felt VERY caring that to me she was actually lifting him up, in direct response to how he had said that he didn't feel like he needed to stop renting since he is single/no kids... I took what she said as a lovely and positive way to remind this man to try not to keep his goals 'small', and to remember that he has purpose and all sorts of possibilities for his life, etc. ❤

[@joesmith3590]

@@Ria24Ria it is the truth. To reproduce is the purpose of life. Check nature.

[@BubbleMania5678]

Renting long term is perfectly fine if you don't have a wife or kids. I think the important thing is if the guy enjoys his life. Home ownership should not really be seen as "building wealth" because you should ask yourself: "Who determines the value of my house, and why?" I don't care if a house is worth 2 million dollars. If it doesn't bring joy into one's life, it's not real wealth. It's fictitious Wall Street wealth.

[@patrickchilds5486]

Keep believing your BS excuses. No clue.

[@user-ww1wh3wz5d]

The thing is property tax on a 300k house in Texas is going to be almost as much as his rent is now.

[@blackworldtraveler3711]

No it isn't.

[@SSJRapter]

6k a year 500 a month.... Sure...

[@republicunited2183]

Burdenflation!

[@e1bo]

Insurance will also increase due to living in a hurricane-prone area. He needs to improve his income substantially.

[@missgui4400]

A 500k house property tax in TX will be $10k.

[@Jazna1]

When buying a condo, remember to buy less than what the bank says you can afford because your homeowner dues WILL go up with time and so will your taxes. You also need to remember that there is maintenance on your place to consider (updating appliances over the decades, etc.). I bought my condo 30 years ago, am now retired. My mortgage is paid off but my current homeowner dues are the same dollar amount as my original mortgage payment was 30 yearrs ago. Dues have TRIPLED over that 30 years. Even a paid-off condo is not going to be "free" but it is still way better than renting! I am an old lady and I never have to worry about losing my home because of increasing rent or the landlord selling. Good luck, caller!

[@damemethief]

Additionally, you have to find out if the bank will even finance the condo at all. I went through that rigamarole this past Spring when I closed on my condo. Everyone who intends to finance a condo purchase should familiarize themselves with Fannie Mae's "warrantable" rules before they even start searching.

[@lindsayclark4009]

Your HOA is more than your mortgage? You must live in an extremely expensive neighborhood.

[@SmarterFinance2]

Renting is good for people who don't have their whole life planned out. Particularly if you are looking to change careers or not sure if you are fully settled, it's good to rent for that flexibility

[@ryancraig4811]

Remember the 2008-2009 financial crisis when the lesson learned was that not everyone should own a home? This is that guy. I want the best for him, but without meaningful personal finance education, a better income, a focus on retirement savings, and a desire for these things, he shouldn’t worry about a house. Ironically, Dave probably rents to a lot of people just like him.

[@blackworldtraveler3711]

Couldn’t forget. Back then BOA and others were kicking people to the streets left and right. Was on the news a lot. My mortgage was with BOA and the reason I paid off my home in 2008 instead of going the remaining 21 years. Many happy renters though during that time.

[@joesmith3590]

That isn’t the lesson at all of 2008. The lesson of 08 was if you have no regulation banks will compete and give loans to unqualified buyers. The people weren’t the problem they never should have qualified.

[@ryancraig4811]

@@joesmith3590 it’s easier than ever for this guy to get a mortgage, and it doesn’t have to be originated from a bank. Regulation hasn’t fixed anything - it’s just transferred the risk to FHA and non-banks.

[@joesmith3590]

@@ryancraig4811 I can see why you are poor and rent with your attitude and the fact you lie and make things up lol.

[@jjordan6066]

Good point.

[@elizabethdumas4147]

I rented for 28 years and did fine. I did not buy a house because I wanted the flexibility to move quickly if I needed to. When life looked more stable, i bought a house at 55. There are a lot of extra expenses with a house, but my investments paid off very well and I have no problem keeping up. There are pros and cons to renting and owning. I love owning because when I want something done, I don't have to wait around for a landlord to do it. Home ownership is a wonderful feeling. Mortgage is paid off and I am shocked at what people are paying for rents now.

[@marcopolo3109]

Right, I am now on my early 30s and currently I own a two story house with 4 bedrooms, nice kitchen and two bedrooms. No repairs needed and the mortgage is paid off.

[@vickieclark5931]

Yeah with the rent increases in the past 2-3 years, it's been great having a mortgage over paying rent. At least my mortgage has stayed the same unlike dealing with a landlord that can double your rent at any time. Plus I'm working on getting it paid off which will save me lots of money every month on housing. I get that some people prefer renting for many obvious reasons. But over the years you do end up paying a lot more for rent plus not having equity cause it's money you never get back.

[@marcopolo3109]

@@vickieclark5931 What's your opinion for people who would like to sell their house and live the van life? What would be the pros or cons.

[@triad6425]

Renting fro a very long time is ONLY good if you are renting at or near the bottom of what you can afford.

[@charlesg7926]

It is a psychological principle that people will rationalize their past decisions, even if they weren’t smart. You renting for 28 years was a very stupid decision. Could’ve paid it off by then

[@SteveC484]

You're paying more eventually but you should also have more invested which in theory should grow faster than the house. The problem is the typical renter isn't investing the extra. The renter is going out for drinks or getting uber eats.

[@joesmith3590]

Most people don’t have the free cash flow to rent and invest. That is why you invest in a home. Investing in stock before home was never heard of or talked about before tik tok videos outside of retirement fund

[@Bigbilly-ms9bn]

Landlords typically want 30% or more of average income in the area they are in.... According to Dave's rules, that is already over what he says to put towards housing. Very narrow minded mindset you have.

[@k.alvarado6237]

Capitalism needs a bottom working class. Be grateful for people like this caller who is happy where he is in life. Everybody cannot sit at the top.

[@oslotismcboom6733]

All they do is operate in the system. They can't even stimulate the economy because the government has to subsidize them with food stamps and many other things

[@front331]

That's the idea of capitalism but you're supposed to move up and someone else take your position like a cycle except not going back to where you started. Capitalism is about opportunity and becoming rich. If you're stagnant, that's more like communism.

[@melc632]

Well said.

[@SlickRick4EVER]

@@front331- Speak for yourself…

[@K4R3N]

Well you're not supposed to park there indefinitely.

[@xo7454]

Ive been a home owner, flipped 4 real estates. Now im renting. I don't mind renting if it means i can have the freedom to chase a great job with excellent income. Ultimately i will buy, so im saving and will be ready when the market cools down a bit.

[@jessereinhardt6320]

I see positives for renting and buying. When something breaks and it is serious enough to affect your utility service or essential appliance use, it is very nice to just make a phone call to the maintenance person and have it taken care of usually within 24 hours and you do not even need to miss work.

[@xo7454]

@@jessereinhardt6320 if I miss work because I need to wait for the tradesman to fix something, that's $2k + loss income for me. When I rent, the landlord deals with it.

[@michaeltoney2277]

Owning a home is better than renting long term. 1. You secure the housing payments. Some places rents can go up 30,40,50 percent per year…. 2. A portion of your payments go to principal this amount would be returned to you if you sell the home. 3. A lot of times you can deduct interest paid in taxes on a mortgage. 4. The property is usually gaining equity.

[@blackworldtraveler3711]

It wasn’t in 2007-2009. Depends on where you live as well and how bad you are with debt and finances after high school.. Some places rent don’t go up anywhere near that. A person can save/invest more regardless. My net worth was already five times what I paid for first home and debt free.

[@joesmith3590]

@@blackworldtraveler3711 yes it was all those homes a double value now in 80% of locations. Lol so ignorant and fake lair

[@expertonmyself]

Regular, Annual rent increases are more like $20-$50, not 30, 40 or 50 percent.

[@jessereinhardt6320]

@@expertonmyself the high percentages are to instill feelings of "Fear Of MIssing Out" so people want to purchase a home based on emotions, not if they can actually afford it.

[@joesmith3590]

@@jessereinhardt6320 things aren’t FOMO because you can’t afford them man lol. USA has some of the cheapest houses anywhere in the world. Reality not feelings.

[@jameywallace5133]

Listen people, especially the childfree single people, live life at your speed. Grow but at your pace because you have nothing but time! Most importantly, peace!

[@3ddiEdotcom]

I get what Dave & Jade are saying. I'm almost 54 and never, ever thought I'd be able to afford a house. Plus, in my career path, I've had to relocate so many times (both inside and outside the US), it just never made sense for me to jump all the hoops of buying a house only to turn around and have to sell it within a year or two. I just never felt stable enough to do it. Thank God I never married or had kids, either. They'd be bouncing around everywhere with me. And yet, here I am, at yet another new(ish) job in a high-priced neighborhood where I'm already looking for a cheaper apartment. I'd love to save up for a condo, but now I'm trying to catch up on saving for retirement......if I ever can retire. Moral of the story: don't do stupid like I did.

[@linuxsurfer2002]

It's definitely trickier when you are moving around a lot - buying and selling houses every few years would cost a lot in closing costs/fees.

[@Jujubees225]

You don't have to sell it. You can rent it out whatever you have bought. Pay a property manager if youre not in the state anymore. You still come out ahead.

[@sophies6957]

Start with a written budget. My parents have done okay with low income for many years.

[@domingodelgado3944]

@@Jujubees225exactly what I’m going to do with my 1st home when I pay it off in the next 4 years.

[@bozardo101]

In your opinion, what would you have done differently? Would you have bought a house?

[@laneyluneva]

The payment portion might not go up but taxes and insurance do!

[@lindadorman2869]

When I moved in 6 years ago, my apartment was brand new with top of the line appliances, hardwood floors, in-unit W/D, dishwasher, central heat & air. The rent was below market value with no security deposit, just a one-time move-in fee. The building is impeccably maintained and we've never had any issues. My landlord has not raised the rent once since I moved in. I have rented many apartments in my 60+ years and had very few negative experiences. Renting is not always a bad decision, nor do you always end up paying more.

[@Azel247]

It really depends on where you are and your city/country's laws around rentals.

[@jimroscovius]

My kids have great apartments with reasonable rents. But then, we live in the Midwest where prices are reasonable. Can't pay me enough to live in one of those overpriced coastal cities.

[@KB-sg7tv]

Where do you live?? I live in northern CA and my rent gets raised every year, without fail, no matter where I’ve lived. Every apartment complex here raises rent yearly.

[@jimroscovius]

@@KB-sg7tv We all live in Sioux City, IA. My daughter got a fully refurbished apt - new floors, carpeting, washer/dryer, and appliances (fridge, stove, overhead microwave, and dishwasher) - for less than $900/mo. Her previous apt was $700/mo, but older and smaller. My son got a newer, more expensive apt, but there are two of them to split the rent. Gotta live in a cheaper area. We moved from an expensive down to here, and it's GREAT!!

[@chaselesser3191]

As Dave would say, that’s not the rule, that’s the exception. For every renter that hasn’t had rent increase in 6 yrs, we could point out 100’s or 1,000’s of people who have had rent increase.

[@austindavis3517]

This is the most helpfull Dave video in a while. This guy is broke, but Dave's explanation of buying over long term renting makes sense. More helpful content please.

[@ji-inroh495]

Not a big fan of condos. The HOA fees can get insane over time.

[@enhancedutility266]

Also that guy needs to increase his income by at least three times his age

[@vetgirl71]

This guy doesn’t have the mindset to increase his salary. He is content with his low paying job and likes the safety & doesn’t want the challenge of taking risks to increase his salary & livelihood. He is over 40 years old and haven’t even thought about growing into adulthood. Some people are like that, since they don’t surround themselves with people who seek purpose & fulfillment in their lives. Success doesn’t necessarily mean you are rich, but he should at least consider working on saving for his retirement and getting an IRA account or work for an employer that will match his retirement plan. He is still young enough to invest in his retirement for the future. Otherwise he will be back at square one in poverty struggling when he reaches retirement age and will need to work until he passes away to keep food on his table. Like some people on the comments stated homeownership is not for everyone. It’s not just about paying a stable mortgage, but also maintaining the property, paying taxes and extra insurance for the property, we are not even including utilities and repairs/ upgrades. Everyone can’t handle this level of responsibility & may lose their property as a result. 🙄🤷🏾‍♀️

[@BK12344]

I rent im 38yrs old my rent is 600 and I only pay cable, and the thought of buying a home is scary bc u are responsible for everything that goes wrong with a home, and what if ur not able to get things fixed when u dont have money, then how do you get the money for the down payment these days. so I see were this guy is coming from. it wld be nice to own but its a money thing.

[@Blessedandhighlyfavor]

Don’t buy now, save save and pay cash you will pass by the mortgage borrower they are the new mortgage student loan borrowers 😂 in today market. I’m renting my rent is still manageable

[@drewmantia]

What I’m paying for renting with included maintenance is WAY cheaper than owning and maintaining a house. I’m not establishing any equity, that’s the only downside.

[@austinduke8876]

Being exposed to rent increases and at risk of eviction are the other risks you're exposed too.

[@natesilvamusic]

Just start investing in some index funds and there's your equity building while you rent :)

[@cgRui34]

@@austinduke8876 Won't that be the same risks you have if you can't afford to pay property tax and HOA fees that also increase through time? At the same time, it's quite difficult to liquidate land as an asset if you need the money immediately. Sometimes you even have to sell at a loss or just break even depending on the market's buying power. Building equity on the land with each payment is the main thing you are losing out on. At the end of the day you still get a roof over your head that you can comfortably afford and potentially invest if you have savings for wealth-building.

[@blackworldtraveler3711]

@@austinduke8876 That’s with renting and owning a home and more about what you can and can’t afford. Many of you completely forgot the Great Recession and housing crash. BOA and other banks were kicking people with mortgages into the streets.

[@austinduke8876]

@@cgRui34 If you were to stop paying your HOA fees and your property taxes you will be foreclosed on and removed in time but if you can't afford those things then you also would have been unable to afford rent so in this specific way it's a wash on the eviction front. Renting is still exposing you to more risk on the front of eviction though because the landlord has a lot of control. The landlord can decide not to renew your lease for whatever reason and that's that. If you rent your exposed to this and it isn't a small risk. You don't have to worry about it when it's yours.

[@JohnSmith-4U]

Some random debt collector sent me a letter saying I owed them $25.00 from a cellular company I stop using years before. I mailed them a letter as a joke and asked to settle for $1.00 I never heard from them again

[@rachelabate2401]

Good laugh, thanks 😅

[@atomicgeisha]

Property taxes, insurance, and maintenance costs keep going up too!

[@Miggy2222]

You don’t need to own a house to be wealthy nor does homeownership mean you are/will be wealthy.

[@JustinCase780]

It's the opposite here...I have a better life without the headaches.

[@KatieBellino]

As Dave said, you are stabilizing the biggest line item in your budget. Nobody wants the unknown of paying rent at an inflated rate in comparison to what their pension/social security check was based upon.

[@JustinCase780]

@@KatieBellino Absolutely not true for many people.Nothing stable about unknown repairs, taxes-HOA fees, high interest rates, unknown neighbors, costs to move later, etc... He is not ALWAYS correct.

[@blackworldtraveler3711]

I was already working on wealth at 15 saving and investing. Home was a place to live and nice asset.

[@KatieBellino]

@@JustinCase780 Interest is stable and what you agree to at the beginning. Your monthly payment (including insurance and taxes) is still typically under a monthly rental price. Remember, you pay your landlord's fees. HOA is not a must. LOL, my neighbors are much closer if I'm in an apartment. A lot of permanent renters on here think repairs on homes are much more frequent than they typically are. Most people will have one major $10k emergency repair per decade. I don't think Dave is always correct, but he is here. If you intend to be nomadic and move a lot, that is a factor. However, there are moving costs from rental to rental too. At least with a home, I get back serious equity that rolls into the next residence.

[@crazeekids9744]

When my ex divorced me in 2010, he decided to be a perpetual renter because he didn’t want the “responsibility”. From then through now, he has paid over $150K in rent. I stayed with the kids in the house, continued to make payments no matter what, and sold in 2021 at the height of the market. After fees, I still profited 158K. Dave is right. This guy needs to be thinking about the long game.

[@blackworldtraveler3711]

Depends on your salary and where you live. Have to live somewhere and why I stayed in Oklahoma.. Can still think the long game renting by just doing the math and saving/investing. My last apartment rent was $260/mo. in the 90s and that same 1bed/1bath/laundry apartment is now around $900/mo. in 2023. Nice one bedrooms apartments starts at $600/mo. and 1-2bed/2bath luxury apartment with in unit laundry room and one car garage starts at around $1400/mo.. If it’s over $150k total rent in 13 years monthly rent would be less than three days take home pay in my case and not a big deal. Nothing would have change other than saving more money. Same lifestyle and still would have lived on less than half my income,bought my beach home and three rentals with cash,retired in 40s,401K millionaire,etc. as planned. Heck my beach home alone that I bought in 2008 for $240k is over $900k now.

[@erictrejo4439]

🤡🤡🤡😂😂😂😂😂

[@lolwtnick4362]

good on you. there are renters crying in Florida that it's unaffordable to live now. well blame all this free help people are getting. and corporations gobbling cheap properties

[@thehomeless_trucker]

By not being tied down, I can live anywhere and will statistically make 50% more than one who stays in the same place. The question is did he make 158k+ more than you in the last 13 years with income?

[@babylongonz1733]

Bad example.You’re comparing a free single guy with no kids to an ex husband you divorce fleeced and who knows what else. The $158k is pretty low for a 13 year run from 2010. You also had the interest,taxes,insurance,and household expenses with kids for those years. Seems both you and your ex husband didn’t do so well if you compared yourself to a actual married couple instead of the caller.

[@davidmilhouscarter8198]

6:57 I got my first apartment in 2008. It was a studio and the rent was $350 per month plus utilities. In 2010, I moved into my second apartment and the rent was $550 utilities included save electric. I lived there for eight and one half years and the rent increased $100. I bought my house in December 2018. After a refi in 2020 and a 3.5% interest rate, my PITI is $1,446 per month. I owe $231,383 and it’s worth ~$437,000.

[@AR-ln7ln]

Condos where I live have been the same $300k for the last 15-years. The only thing going up is the HOA, taxes, and maintenance. Rent went up only $200 on 1-bedroom in last 15 years. Depends where you live I guess and even the house and the condo building.

[@sneakyquick]

If you factor in home maintenance insurance furnishings etc renting is not always more and house prices are too high right now

[@andrewgeorgelang]

I like that answer of buying a condo. The way you two sold that, I the viewer felt relaxed too

[@front331]

He's 42, single, restaurant manager, doesn't have a career plan, doesn't think there's anything wrong with it. I wonder what could go wrong.

[@2012goodjoke]

That's the type of people who are in those jobs.

[@truthsayer9534]

My parents both grew up poor. Some people simply don’t understand how to make money, manage money or grow wealth. It’s a complete mystery to them. I was that person when I was young, but my mother and my sibling and I finished college debt-free, learned how to manage money and grow wealth. It changed our family tree. Having a net worth above a million dollars changes everything.

[@Minimalist-Lifestyle]

Yep. He mentioned that he wants a GM position, yet a new GM was about to come in to the company. I was wondering why he didn't go for that position.

[@Chaezaa]

@@Minimalist-Lifestyle The fact that the owner didn't ask the assistant GM if he wants the job tells me that they already had the new GM on hold.

[@JustinCase780]

Grateful for what I gave and could not be happier. The last thing that I want is the burden of house. I can move anytime I wish and flexibility is freedom.

[@baldeagleshirt]

Although what Dave is saying is true, There are two things that don’t quite come into play with Dave’s advice. 1st one is that he lives in Texas, a state that is notorious now for having property taxes skyrocket, I live in Austin and know people who have their homes paid off but cannot afford to live there because their property taxes have shot through the roof. 2nd is convenience. Buying a home long term may be the best method for asset growth, however it comes at the cost of convenience. I have rented and owned a home, right now I choose to rent because I don’t want to have to deal with home issues, which i dealt with so much at my last house (yard maintenance, furnace a/c issues, plumbing issues, pest control, replacing the deck, etc). So it really depends what his priorities are, asset growth and housing stability or convenience of being a tenant over his own landlord.

[@msme9790]

One thing I want to add is that your taxes can change and increase your payment! Nothing like rent increase but just throwing that out.

[@cavemanlook]

No matter if you own a house free and clear. You don't own it you are just the keeper till you move on.

[@felipeoliveira2219]

I think the right topic and the issue here its more about when Dave asked "What are your career aspirations?" and he said "I haven't thought about it" also he said "I'm comfortable in my room"

[@moneyandminimalism]

There are pros and cons to renting and buying. Renting could be good to avoid risks associated with owning a house but you are missing out on any increases in house value

[@rockinroland0]

I moved to a foreign country and pay $250 a month for rent/utilities because US rent got so bad.

[@jhuf1408]

Buying is always better than renting in the long run, you pay taxes and insurance as a renter just like a home owner difference is in 15 or 30 years the owner has something to show for his money

[@TheHolisticBabe]

I didn’t think of it this way…of locking in my house expense by buying. Thank you

[@adam6072]

Property taxes change annually. Plus, you also have variable home maintenance costs.

[@ccssin9088]

What's right for some people isn't right for all people.

[@regtalkswealth]

This is so true I've been renting since I was eighteen and now I'm thirty and it's time to save and buy

[@mylifethaidiy7045]

I disagree with Dave! Condos are as big of a SCAM as TIMESHARES. My neighbors daughter owned a condo in Seattle years ago and the Association Fee was $400/month. No one would even buy the condo from her, because in the neighboring states rent was only $400 at the time.

[@Anonyme67]

I am moving out of my townhouse because home association is going up.

[@crashtestdummy1972]

Alot of new neighborhoods are having HOAs now, granted not as expensive as that but idk why HOAs are a norm now. I get their intended purpose but eh.

[@rcaviator4310]

Agreed!!! The problem with condos is that you only own the interior. If there is a problem with the exterior, you have to petition the HOA to fix it. Most condos are owned by investors who rent out the units, and don’t want to spend any money on maintenance. I looked a buying a condo years ago, and found out there was water damage to the interior. The roof hadn’t been replaced in 30 years. I contacted the HOA, and they knew about it and said they would replace it. Someday…. Very happy I walked away from that deal.

[@djpuplex]

I owned a condo and my parents owned condos worst decisions ever. Renters came in assessments came in property values went into the toilet.

[@djpuplex]

​@@crashtestdummy1972It's a industry that lobbies and municipalities like them as they assume many of the essential like trash removal, sewer road maintenance ect.

[@joeriveracomedy]

If that Chase Morbey commercial plays one more time I am chucking this phone

[@ghostofmanitou6864]

At his income level he could barely afford taxes, insurance and home maintenance on a house even if the house were given to him. I'm wondering if he would actually be money ahead keeping the cheap apartment and pounding what little extra income had into retirement accounts.

[@wickedbird1538]

😮😮My mom is 94. 50 years ago, She bought an abandoned little house in Fort Worth for very little. She never made a lot of money but she lived frugal. She has no debt, a nice car, and still has over half her 401k in the bank. It depends on what you buy and your lifestyle.

[@TexasMade903]

The Funk Baby!

[@roiijamez33]

Out of curiosity looked up rental rates at my last apt (1br - approx 600 sq ft) $1153 per month. When I lived there 20 years ago, rent was $460.

[@Fakken28]

There is literally no reason anyone should be making 15/hr. Anyone that can legally work can join a Union apprenticeship for a trade which starts you off above minimum wage. For example in Los Angeles unions at any given trade will start you above 20/hr as a 1st year and within 5 years you're making well over 45/hr. It's not easy work but it pays. I see women and men in the trades every single day so there's no excuse. The only way anyone can say the can't make more than 15/hr is if they're not willing to put in the work. Period.

[@bigbillmusic]

Whats wrong him wanting to live a simple life? Ofc it will be good to have more, but he doesn't have any deby, any kids and he likes his job. Whats wrong with that?

[@oslotismcboom6733]

He's going to retire broke and become homeless

[@rare2find0918]

Absolutely NOTHING. But Dave gives his advice from a perspective that after paying off debt ALL callers want to build wealth, get married and have kids. There is NOTHING wrong with that path, however that is NOT everyone's journey. Being debt free is an amazing place to be in, in and of itself, and if someone prefers to live moderately after achieving that more power to them!

[@oslotismcboom6733]

@@rare2find0918 Being debt free for the rest of your life would mean working for the rest of your life because in case you haven't noticed, wages are stagnant and inflation is not. He cannot save his way to a healthy retirement, and neither can you or anyone else. Unless you're making multiple six figures and you save the vast majority of it. On his wage if he wants to live dEbT fRee aNd sAve instead of investing to build wealth then he's looking at working for the next 263 years👍 (That's assuming he puts away 10% and only achieves $1 million which isn't even much of a retirement)

[@KatieBellino]

When he retires with minimal retirement funds to live on, where will he live?

[@bigbillmusic]

@@KatieBellino I think he will be fine if he is investing. He doesn't have a consumption lifestyle. And again he has no debt

[@markeasley6149]

For the American middle class ethos, you should aspire to purchase a house you can afford once you know where (what city & state) you want to live long term. Most people kind of figure out where they want to settle down by 30's or 40's but maybe even sooner. In the 20's you are likely relocating for jobs or family circumstances so renting gives more flexibility. Owning allows you to be your own bank after it is paid off. Most real estate appreciates (and may be significant over time, hence liking where you live is critical), but even if it doesn't appreciate, it still stores value. You can generate cash or tax benefits from your home with many techniques.

[@Tenjiecorner]

It comes up cheaper in the long haul if you just save say $500k in cash to buy a house later with no interest instead of buying it now with loan +interest. In other words, short term rental, long term ownership

[@Blessedandhighlyfavor]

I agree you got folks that have mortgages loan to their eyeballs and telling people who are renting to buy with huge mortgages loans instead of renting. My takes is if you’re renting out of debt save save save and save to buy a house cash. No debt you will pass by the ones that took mortgage 5-10 years ago

[@jaaxoon]

This guy should take his GM experience to a higher end restaurant. A restaurant I used to work for was paying their GM six figures. Stressful gig, though.

[@dougf9900]

In rough terms, your home will go up in value over 30 years by about as much interest expense on the mortgage. Maybe more. But your payment will stay roughly the same over that time (except for property tax and insurance). Essentially you live for free as a homeowner, because every dollar or principal you pay towards a mortgage you still have in the house.

[@davidcolon9195]

His focus appears to have been a day by day life plan. Good luck.

[@patrickchilds5486]

All the people I know that never bought a home regret it. I have told them for decades to buy. So many excuses.

[@mandysimmons2769]

My cousin had this dinky little table in her kitchen. She said this is not what I rented and in a recent pic she showed me a bigger table in a similar style. She'd rented it for 2 years at $10 a WEEK ( $1144 total ) and Rent To Own Place had come out with the dingier and much smaller one...well This one is yours. This was an oak-ish country 1980's looking table that I could find at Goodwill right now ( with mauve and blue place mats on it ) with fewer scratches that a one -time pay of $20 would get. Ten on half price furniture day ( that they used to have not sure if they still do ). She paid a thousand dollars for what ten or twenty would have gotten her. Her dad left her 15 houses and a big lake house ( that a Hurricane took ) and over time she's lost them all. They are living in squalor again...not sure how the table's doing.

[@GGGeoff]

I don’t understand your math. You wrote that the table was rented at $10 a month for 24 months. That’s $240 not $1144.

[@mysticquetzal87]

you can rent a table???

[@Howdy762]

​@@GGGeoffhe obviously threw on an extra number by accident.

[@eggsinsideme]

My brain melted reading this.

[@mandysimmons2769]

@@GGGeoff Sorry I'm old and been going through some stuff. I meant ten dollars a week.

[@harrychu650]

Property taxes tend to go up over time.

[@amireallythatgrumpy6508]

Nowhere near as much as rent payments do. In any case, do you seriously believe landlords don't pass the property tax costs onto their tenants? Believing that would be delusional.

[@harrychu650]

@@amireallythatgrumpy6508 In a neighborhood with a "good" school district, you can expect property taxes to rise at an average of 3% to 4% a year.

[@amireallythatgrumpy6508]

@@harrychu650 And rent typically increases at 5-6% per year. Part of that is a result of the increase in property taxes. Your landlord makes you pay the property taxes on the property you live in.

[@harrychu650]

@@amireallythatgrumpy6508 The average rent increase during this "inflationary" period has been 2.46%. Not sure where you are getting 5% to 6% average increases in rents. I would refrain from using the FRED Data as they use "owner's equivalent" rents. Basically survey some home owners about how much they "think" they could rent their homes for. This survey is flawed IMO.

[@amireallythatgrumpy6508]

@@harrychu650 This "inflationary period" hasn't even been two years so has nothing to do with the average, especially when it was way higher than average before the "inflationary period" began. I would refrain from using any American data as any data analysis completed in America is inherent flawed due to the average American not even knowing what a number is. You Americans don't have a clue how to crunch your numbers and rely on the much more intelligent people outside your nation to do it for you.

[@johnmitchell2741]

If you like you job and the people you work with your Good, as long as you can live within your means Ive own 4 houses i ether just broke even or lost money selling them now ive been living in a rental in rural arkansas for 10 years and im happier then when i owned . Im 62

[@thesusanbainbridgeshow6044]

The same you forgot Mr. Ramsey. Was it when you buy a condominium? Or when you buy a house with an HOA (home owners association), though the mortgage does not increa homeowner's association does increase every year.

[@farouksellam7194]

$1100 in reality mr dave is for monthly interest only , for 2 br condo You gotta add hoa fee and principal Just stay in $600 room that you got bud

[@georgewagner7787]

I've been renting almost 40 years because I have a cheap apartment in New York city. But when my parents downsized I looked at my friend and said what are we going to do? So we put down 10 grand each and put tenants in the house upstate. It's almost paid off and then I'll have income

[@tristanrodenhauser5267]

He needs to make a plan to be markable for a GM and future Regional Manager role

[@vetgirl71]

That guy has no ambition or drive to be a general manager, he was just saying that to impress Dave. 🙄 He didn’t even have any idea how much the GM made. What if the position paid just 2K more? Would it be worth it to take on more responsibility for that low salary increase? He already claims that he is a supervisor and makes $15, that’s extremely low for a supervisor (if he is telling the truth) . He didn’t even do his homework to determine if the GM job is the right fit & payscale for to suit his work/life balance. So I doubt he wants to move up the ladder. He is 42 and stated that he doesn’t have any plan our goals for the future. He will burn through that $10,000 in no time. He isn’t equipped with managing money and improving his salary. This guy is content with his minimum wage job because it doesn’t challenge him to grow up. 🤷🏾‍♀️😒

[@Jfree441]

I see people say all the time that rent goes up and your fixed rate mortgage doesn't, and that is true, however, house insurance, and property taxes do and they are more expensive than the mortgage. My $900 a month payment (including taxes and insurance) is now $1700 a month, but my mortgage payment didn't increase. They will always find a way to make you pay more, fixed mortgage or rent. You will always pay "rent" in the way of insurance and property taxes even once the mortgage is gone so in my case a minimum of $650 a month for life. These days over a 10 year period, rent can be cheaper but there is no rent control in many places and that is a problem. The biggest advantage to being a homeowner is the value going up only if you intend on selling it at some point. If you plan on living there forever, then it's useless, all that does is increase property tax and insurance costs. Even if you own the house, you fail to pay property tax, you can lose your house. It's just a fully messed up system through and through.

[@republicunited2183]

My rent includes gas, water, trash, still cheaper than owning. I’m saving more cash until I’m ready to buy.

[@Chaezaa]

I'm always amazed by people who are running to Florida. The extreme weather (hurricanes and flooding) will get more intense in the coming years which will drive repairs and insurance to the sky.

[@Jfree441]

@@republicunited2183 Mine use to, but at my stage of life with a family, renting is not in the books for us. Including gas, water, trash, it would average about 2100 per month total payment for me. Just crazy.

[@Jfree441]

@@Chaezaa Hey, if you like a natural full reset on life twice a year, Florida is perfect.

[@MichaelAnderson-wk1no]

Insurance and property taxes are not more expensive than the mortgage... they are a small percentage of it.

[@Lon1001]

If you don't want a home then don't aspire to buy one. If you want to have the cash on had to be able to then keep saving it up. If it were me, and especially on the coast, I'd buy a nice sailboat and live in that, plus sail to the Caribbean once in awhile.

[@nickm1587]

An assistant restaurant gm only makes 48k?

[@elizabethadahl]

That’s higher than most I know

[@heidithaw1072]

It is a tough job especially if it is salaried. I thought they had improved the wages though,

[@tdgdbs1]

He said $32K for his position, a GM makes 48

[@zachpierce641]

I’m sure there’s a WIDE range depending on what type of restaurant it is.

[@stevegolacks8731]

I worked in many food service jobs while going to school. This restaurant manager is the typical restaurant manager. Kind of slow, underpaid, and probably works 70 hours a week to impress the district partners. Its an industry that is horrible for work life balance, and it preys on unintelligent people.

[@davidmilhouscarter8198]

This is a crazy call. Most people be like: “Renting is flushing your money down the toilet.” and “A mortgage payment is the same or less than monthly rent.”

[@curiouscat3384]

In addition to stabilizing the housing line item in the budget, at 42 this man needs to think about retirement. The restaurant business at the GM level probably does not have a rich retirement plan or even job security. The closer I got to retirement age the more I wanted to OWN my property so I wouldn't have to worry about how high my monthly income will need to be to maintain my household. Not only should he buy a home but he should pay it off long before he turns 65 because he's on his own. He doesn't have enough to buy a house today but it is something he can work toward now that he's out of debt.

[@KatieBellino]

This is the part that people who talk about "preferring the freedom to move whenever" forget about. There are some seniors right now who are really struggling because their rents do not match their social security checks.

[@curiouscat3384]

@@KatieBellino Absolutely! I've watched a lot of "nomad" senior women who are living out of their cars barely making it on social security

[@KatieBellino]

@@curiouscat3384 Absolutely! Dave refers to it here too. People get caught in the "this is working for me now." They forget about what 20-30 years from now looks like.

[@cmiovino]

I think you have to do a real cost analysis of how much the house is going to cost you to run/upkeep. Meaning, taxes mainly, but also repair/upkeep costs. In my area, we have super low rent that's LESS than taxes alone on something we'd buy. Rent is $800, split between two people and a ~$300-350k house might costs you that much (!$9600) in taxes yearly, even after you paid it off or if you paid cash. THEN you still have repairs and upkeep to think about, home insurance, etc. Other costs you take on. However, I do realize that if your rent was relatively high or increasing (ours is locked in), then it might make sense to buy. Just know what you're getting into and analyze all the costs. People forget about taxes after you pay it off, plus repairs/upkeep.

[@PreeminentbrandsNet]

When i purchaed my house 6 years ago it was 96k was surprised to see how it went to 235k that quick.

[@brian93ist]

No payments go up lies he's wrong and landlords do lower rent

[@amireallythatgrumpy6508]

Rent typically goes up 5-10% per year. Mortgage payments typically do not change (unless you're on an arm), although other expenses do. There's also a BIG difference between lies and being wrong. Get out of here with your nonsense.

[@brian93ist]

@@amireallythatgrumpy6508 no mortgage payments go up HOA fees go up and property insurance property tax it's all included in the mortgage

[@amireallythatgrumpy6508]

@@brian93ist Nope. They're all separate payments. Not everyone lives in a HOA, in fact only a small minority do.

[@penguingobrrbrr353]

Did just bro said people that don't have a house shouldn't live in one ?. Like what do he expect people to do ? just short term ?. Long term 1-5years is fine as long as landlord aint increasing your rent every year and that is as long as the tenant is keeping the property nice and tight. Its better to get the same amount of money for 2-3 years than raising rent price if tenants are nice and keep it nice.

[@Treerootz1]

My mortgage went up $300/mo once my house got reassessed as worth way more than I paid for it. What the fuck is he talking about

[@amireallythatgrumpy6508]

Didn't happen. Not a credible story.

[@Treerootz1]

Property tax in included in the mortgage payment. Property tax changes, therefore the mortgage payment every month went up from $1600 to $1900.

[@amireallythatgrumpy6508]

@@Treerootz1 NOBODY includes property tax in the mortgage payment. They are two separate payments. Did not happen.

[@Jujubees225]

​@@amireallythatgrumpy6508Its included in a Escrow mortgage payment. You have a choice to open one once you purchased your property. Do you own a home?

[@KatieBellino]

@@amireallythatgrumpy6508Untrue. My property tax, insurance, and mortgage are one payment. It's called an escrow.

[@redfox_84]

He needs to make 2 or 3 times what he makes now. Probably could get a house in Corpus Christi but good luck paying for house upkeep and maintenance on what he makes.

[@SlickRick4EVER]

What do you propose, then - rather than making such an arrogant comment?

[@K4R3N]

Condo is fine like Dave said. Doesnt need a single family home.

[@redfox_84]

@@SlickRick4EVER 🤣😂 keep renting or get a better job

[@KatieBellino]

Twice his income is $66k. While that'd be great, I wouldn't say he needs to make that to be comfortable if he is able to rent for $700 in his region. I do feel like he really needs to make $45k before he considers buying though. However, it all depends on what he can save for a down payment or find for a mortgage on a small condo.

[@linuxsurfer2002]

I mostly agree with Dave/Jade on this one, but I will make 2 points: 1) Homes probably won't go up $100k *every* 10 years like Dave said in his example. Is it possible? Sure, it happened to many people who owned a home between 2019-2022. But I would not count on that being the norm. 2) The hosts missed out on discussing property taxes, homeowners insurance, repairs, and other costs that come with homeownership.

[@linuxsurfer2002]

Example - we paid $135k for our first home in 2008, and in 2018, it was worth an estimated $137k. Granted, this was mostly due to the Great Recession.

[@UncleSwell707]

True

[@donaldmorrison9940]

People here thinking that, in the long rerm, renting is cheaper than owning, really aren't thinking things through. The whole concept of the rental market is that landlords charge enough so that renters pay them everything it costs to run the house plus provide a profit.

[@kjvacp]

3:38 Dude lives in Texas. $669 rent gets him a 1 bedroom with nothing. We live in Kentucky. $580 mortgage for a 3bedroom 2bath on 2.7 acres.

[@coolbuddydude1]

Depends the area. You always need to do the math. There are other stable investments than a house.

[@adam6072]

If you can invest the difference between mortgage and rent, you could come out ahead by renting. Home ownership can be overrated.

[@mariposavioleta9007]

Ok Dave you said that mortgage doesn't go up. I'm here in Canada and that's not true here you renew every few years and the price does go up according to whatever the bank decides the new rate is. Is that not the case in the US? Do you not renew in the US and rate changes?

[@jimmymcgill6778]

What do you mean you renew? In the US, mortgage does not increase.

[@siva47931]

​@@jimmymcgill6778 In Canada, like the US, you can choose a 15 or 30 year amortization. However, rate is only fixed for 1/2/3/4/5 years depending on what you choose. Once the term is over you need to renew the mortgage for another 1-5 years at whatever the market rate is. People who got 3 year fixed rate in 2020 for less than 2% are facing huge increases this year.

[@redfox_84]

@@jimmymcgill6778 It does if your property taxes increase and are funded by escrow.

[@rog3rs528]

The only thing that increases in the US are property taxes and utility bills (unless you go solar). As for the actual home/mortgage, its locked in until you pay it off.

[@SpicyKimchi-]

If the rates can fluctuate in Canada every 1-5 years, do you see a lot of ppl selling prior to a significant rate increase?

[@laurenchoate9583]

All these commenters need to understand how low the cost of living is in some areas of Texas compared to other states. He pays less than $700 for a one bedroom apartment with utilities included, I wish! Dave brought up great points about buying into an asset.

[@KatieBellino]

Yes, some people don't understand these regional differences. His income isn't great, but his rent allows that to be a reasonable income for him.

[@joesmith3590]

@@KatieBellino no what people don’t understand is that if rent is 700 a home is 200k and he CAN buy. Ma’am you are lying please stop lol. It is like you think he got a good deal and no just he love someplace cheap lol. Anyone can move to Detroit and rent for 600 and buy for 5k. You get what you pay for

[@KatieBellino]

@@joesmith3590 Not what I was saying at all in regards to renting vs buying. That doesn't change the fact that rents and salaries have regional differences.

[@joesmith3590]

@@KatieBellino yes ma’am they do vary. That is how pricing work and when rent is lower So is home prices. This is literally economics 101 if you don’t understand such basic things don’t give advice especially lies lol. For example in Amarillo Texas where rent is 600 you can buy manny any homes under 100k. Take a second job for 3 years and buy a home. This is terrible advice and logical understanding of economics.

[@KatieBellino]

@@joesmith3590 You clearly haven't read my other comments on this video and are misunderstanding. I very much understand that homes are also cheaper when rents are cheaper. Not what this particular response and thread was about. You can stop with your condescending attitude.

[@BlueprintCA]

I’m amazed they didn’t tell him to get a better job

[@AR-ln7ln]

He lives in a really low cost of living area. I wanted to think how to help him or what advice to give, but 1-bedroom is $2-2.5k where I live. I'll leave the advice giving to the show this time. I can't thing straight right now.

[@engrpiman]

my mortgage has gone up due to taxes. over 8 years still within $100 of the original amount and almost paid off

[@christinehopping]

Hey, Justin being single is freedom, but it is greater freedom to own your own landed property. I am single income debt free on a clerk salary living in California with a small house (no mortgage), car, and net worth > $1 million no family no government assistance. My only saving grace is having no debt. You are in that same position, so you're in the best opportunity to take advantage of being debt free. It has been a blessing coming home to plant fruit trees and vegetables in the backyard. It is not the same feeling of freedom when you are renting. When you are done paying off the mortgage, the ground you stand feels more solid and stable. Dave is right. Follow the baby steps don't overthink. It's financial PEACE not greed.

[@nmccw3245]

One sure thing about rent is it NEVER goes down.

[@rayb6852]

Your rent goes up every year don't sign a long term lease.

[@georgeslupski5987]

I agree with Dave on most things. But buying a home at 300k(30 yr mortgage) taxes, hoa and repairs your paying 2 million or more over 30 yrs possibly. I have no authority to say hes wrong and im not saying he is but I laugh at the people who bought at 300k and sold at 350k 4 yrs later and think they made 50k, no you probably lost 30k

[@Jujubees225]

They know they didn’t make $50k just selling it the seller has to pay abundance of fees. But youre going overboard estimating repairs is over $30k in 4 years and not all homes have HOA.

[@KatieBellino]

It depends on the region. They presumably would have been paying rent somewhere, which is equity the landlord gets and money they never would get back as a tenant. You're also forgetting that not everyone has an hoa or lives in a region with high taxes (you always pay taxes anyway as it affects rent prices). Your estimate of 2 million is a bit high. Also, for perspective my home bought in 2018 for $212k is $1145 a month (including taxes and insurance - no HOA). The home is fairly new and has had minimal maintenance costs. Rents start at $1200 in my area, so that lost money you talk about would be lost either way. At least with the home, I have a way to recoup some of that money back.

[@Jujubees225]

Property taxes, interest, pmi are also tax write offs. Guess what you’re landlord is doing? Writing off taxes while you’re paying down his principal.

[@georgeslupski5987]

​@@Jujubees225No but ALOT do have HOA his statement to the caller " your home will appreciate GREATLY" in 10 years has no data to back that up. I live in Fla when I seen homes lose 100k or more in value. Homes are a great investment if u buy low and sell high. But usually it's a break even deal

[@listerinr]

This guy needs friends. Poor fella.

[@barnabusdoyle4930]

I would advise this guy to save up cash and buy a McDonalds franchise. He already knows how to manage a restaurant and being and owner operator would be much better for him while doing the same job. Then look at expanding from there. Look at the franchises, talk to owners and see who wants to sell. Do research and make a purchase

[@eggsinsideme]

Good luck saving up the $1-2 million needed to open a McDonalds franchise.

[@25259250]

Why ? when I bought mine i was making $11 hr , it depends the value of what you buying

[@taylorsmith9629]

The value of $235 in 1983 is $715. One bedrooms can be $1200 today depending on where you live.

[@kylemccarthy02]

Restaurant manager making $15 an hour? How does that make any sense? Those are employee wages minimum

[@davidleonard4925]

33K per year is sort of a low income but rent is low and debts are paid off. So I would say to build wealth the best plan is pay your self first. So it may be a bit of a struggle but I would put $541 per month in to a Roth IRA first and live on the money that is left. With having a mortgage taxes insurance etc with owning I dont think he could have that $541 per month available to in to Roth.

[@chatanp]

You can almost see this guy going back into debt. The life insurance payout gave him the proverbial "get out of jail free card", so he never had to WORK to clean up the mess. No behavioral changes typically doesn't lead to making better choices

[@focusedfreebird]

Insurance and property taxes on home will go up.

[@michael88366]

Exactly, in Texas a homeowner pays their whole home value again in the first 30 years in property taxes and insurance.

[@KatieBellino]

The landlord pads rental prices with those costs. Once your home is paid off, the cost of taxes and insurance is well under the cost to rent. It's a much better situation for a senior citizen on a fixed income.

[@michael88366]

@@KatieBellino Its not if the price to rent ratio was high and the senior citizen took the money they saved by renting and invested it in the SP500. Once again, the alternative to buying is renting and investing what you would have spent on downpayment, interest and other expenses.

[@KatieBellino]

@@michael88366 Not necessarily. My mortgage, insurance, and taxes are less than the cost of the cheapest rental in my area. That means I couldn't invest that money either way. Yes, there is maintenance, but it is minimal.

[@DanielGarcia-zz9eg]

Go be a truck driver See America while getting paid Starting pay is 65k No rent to pay because you be sleeping on 18 wheels Do it for 2 yrs and in that time u can figure where u want to go in life