The True Cost of Buying a Home (It’s More Than You Think)

Your dream home can quickly become a nightmare if buying it makes you house poor. In this episode, you’ll learn how to know what you can actually afford, plus how to budget for the additional costs of buying a home.
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[@itsmatt2105]

Contractor here, I specialize in surgical rot repair. Be assured, a house is a TERRIBLE thing to dream about. Your house should facilitate and support your life, not the other way around but only 1 out of 1,000 people know and practice this.

[@Ink30]

Smartest comment on here 😊 I agree

[@davidbrayshaw3529]

Exactly. Obviously, we all need somewhere to live. Obviously, for most of us, that means going into debt. But how much debt, is on you. If you and your partner need to spend the next thirty years paying down a house loan, what are you sacrificing? The answer is nearly half your life. My wife and I worked for our house for nine years. For the past fifteen years, it's worked for us.

[@RJWaynerium]

999/1000 don't realize the pain and suffering when the words roof replacement and foundation repair/replacement are uttered, not to mention the empty void your cash reserves become

[@mikeparrott8304]

Great advice. I own outright a small 3 bedroom terraced house . Works for my family. Other people I know on my wage own massive homes with huge mortgages.

[@mikeparrott8304]

​@@RJWayneriumDefinitely my mums house cost 25k for a new roof. My Dad was smart he told her to keep 60k in reserves for the house

[@macneoh7418]

I'm so tired of these people calling in making 5X the national average and a paid off home trying to buy a million dollars house. Where are the callers making $60K with real problems?

[@floresnashvilledrummer]

How long have you been listening? Broke people making $60K and living beyond their means is his target audience and most repetitive callers!

[@Anonymous-xq3cd]

Seriously, its always the people that make 1 million dollars a year and has a problem whether to but a $5,000 used car or not.

[@talyahr3302]

Or $40k like me 🫠

[@mattnieschwitz4727]

I mean, just because they've gotten themselves to a successful point in life doesn't mean they don't need financial guidance.

[@hondofitty]

fk them, eat the rich@@mattnieschwitz4727

[@stephensullivan1011]

I cry when I watch these. Trying to get out of debt from my stupid student loans ASAP... Don't go into debt to go to college kids...

[@kTorres007]

You can do it!! I did it, took me a few years, remember time will pass anyway so keep chugging away at it ❤️🙏

[@wm5994]

I went into debt to go to college, and I paid it all off. It's doable.

[@maxwintac8915]

I went for a shitty poli sci and criminal justice degree. I regret it. I wish I would have used GI bill on something lucrative like getting a business degree and going to a trade school. Could own a home construction or electrician company making big dolars and making my own hours. I think college is really only worth it for certain stem degrees.

[@thewb3]

​@wm5994 excellent! How much did you pay off in total?

[@thewb3]

​@kTorres007 Great! How much student loans did you pay off?

[@catherinesanchez1185]

When I bought my house the bank told me I could afford X but my numbers showed me it would only the a couple emergencies to bury me . I didn’t listen and bought less house than they were willing to finance . This paid off in 2008 during the crash when I was out if work for 18 months . I still went into foreclosure towards the end but then found a job and was able to dig my way out before losing the house . If I had listened to to the mortgage lender , I would have lost the house

[@philh8829]

My $200,000 house in 2015 is now $500K in 2023. WTF. I look at new builds in my area, they are all 800K-1000K. Absolutely insane. I don't for a minute think they are worth 75% of that. What people don't often account for is taxes. My tax bill went from $4500 to $8250 / year. That's $313 per month increase in escrow payment. Add on maintenance, yes, you will need a roof and complete HVAC replacement every 15-20 years, a water heater every 10-15 years. Appliances every 8-10 years, Flooring / Paint every 20 years, Sump Pumps ever 10 years. Driveway sealant every 5 years, mailbox every 10 years. Budget at least $250/month toward a property maintenance fund. I highly suggest you prefund your maintenance account with $10-15K. Lawn Care / Tree Care / Pest control, budget $200/month Utilities, budget $200-300/month.

[@wm5994]

Maint expenses absolutely do not have to be that extreme unless the person has no hands-on skills whatsoever and pays someone else for repairs. I've been a homeowner for 23 years. I've got the same stove that came with the house and it works perfectly. My driveway is hard-packed (nothing to seal) - I patch it as needed. HVAC - total ripoff - window units are cheap and easy to replace. The roof can be patched as needed. I cut my own grass and care for my own trees. Painting isn't rocket science - yes you have to buy the paint. My water heater is 23 years old - never a problem - and when it dies I can easily replace it myself. Again, unless the person is practically useless your home maintenance expenses absolutely don't need to be that high.

[@thomasbrooksjr380]

Set a repair fund in investment in 5 years you should have enough for repairs 🤔

[@Drew458]

@@wm5994 I think it depends on the individual. Many people don't have the time/skills to do the work themselves, so they'll have to pay to have the work done. You can absolutely save money by DIY'ing things, but things do break and can be expensive quick (outside of paying taxes). It's recommended to save 1-4% of a house's value for maintenance/taxes, and a bigger house will have bigger maintenance bills regardless if you DIY or not.

[@KA-mq4wj]

Lawn care is insane $…Mulch, pine straw, grass mowing, seeding, flowers, tree trimming! It’s a big expense. I have a 3/4 acre. I love my yard but it’s a big expense.

[@ilcarabiniere797]

How are you spending $200/month on lawn care?

[@modernsoccer1860]

Don't rush, a friend bought a house and she literally uses all her pay check to pay monthly leaving her very thin on budget,about 3400 per month. I still live in my apartment of 900 per month, life is not a race. Trying to save as much as I can and live comfortably

[@roadrunner9622]

Yep. Some people talk like buying a house is always the right answer. It depends on the season of life you are in and how long you are going to stay there, among other factors.

[@sixteen.candles.4644]

Right

[@carolhale4331]

You were lucky to get rent like that. In my area, a one bedroom to rent cost 1600 a month.

[@Operation9595]

And you did exactly right .me myself I've been standing at the same rental for almost 9 years now and at first I saw everyone else purchasing homes and had a little bit of envy but my rent has only gone up a few dollars and so I even split the rent with other people so win win!!!!😂😂😂❤❤

[@DamianBadalamenti]

Property taxes and insurance is going to kill them

[@MAELOB]

No property tax for a 100% va disabled veteran in FL but still it is probably too much of a house

[@blackworldtraveler3711]

They asked for it having debt obligations like that. My place is on Marco Island. Being completely debt free property tax and insurance isn’t a big deal.

[@Muggins1046]

@@MAELOBdoes it confer to spouses? What if he dies and she’s stuck with the tax bill?

[@EmpressMermaid]

Living in Pensacola like this caller, I can tell you that Florida waterfront property has ASTRONOMICAL insurance costs. Not to mention the danger when (not if, but when) the next hurricane comes along. Or flood. I don't think this guy realizes what he's getting into.

[@demodiums7216]

Dave Ramsey fans think climate change is a hoax lol

[@EmpressMermaid]

@@demodiums7216 True. I like about 80% of what Dave says, but some of his listeners are a bit divorced from reality. Sadly climate change is going to do in Florida l, a state in which my family has lived for 6 generations. Mine may be the last.

[@faithrada]

Can not agree more. I Just sold my ocean side FL house... Everything is closing in in FL.. Time to bow out. No Insurance co. will touch Ocean Property.. so if you have any mortgage you are screwed. Between Ins., malaria, zeka virus. Dengue fever, drinking water crisis, .. the list is long. Florida is NOT the place to be these days.

[@subtlebenevolence]

We are in pace, just outside of Pensacola & my husband doesn't want to buy our next house here because of climate change. Not to mention everything in this area has skyrocketed. Used to be a small town & has become a proper suburb. Looking at moving north when we save the money.

[@EmpressMermaid]

@@subtlebenevolence i probably would take off, too, if I didn't have family and career obligations here. I bought my house in 2012, which I'm glad I did as there's no way I'd buy one now. If I were younger and more free I'd make very different choices.

[@tylercampbell6365]

I bought a house with no emergency fund and thank God I had no issues for the three years building one based on a video I watched of Dave's but should be common sense..I feel so much less stress knowing I can handle any situation..Its a blessing that can definitely become a nightmare if you're not prepared..

[@CycleCruza]

Its always something that needs fixing with a house. However, it beats living in an apartment any day.

[@lorrainei1622]

I’ve accepted that i won’t be buying a house anytime soon and I’m ok with that. I’m content in my rent stabilized apartment for now. The way life is right now with inflation, I’m not even trying to put myself into any heavy debt.

[@beaniemac]

Why would anyone want waterfront property in Florida given all the natural disasters and issues getting homes insured for a reasonable price?

[@ChrisMFlorida]

my boss has one and is always complaining every hurricane season, but it was inherited during a relative passing and she just keeps up the maintenance.

[@floresnashvilledrummer]

And having a nest of alligators as your neighbors.

[@advancedchiropractic667]

This is ignorant. There is more that lake water front in Florida. Also, they hold their value. In Florida canal homes there will only be so many because you can not make canals. So scarcity they do not fluctuate like other homes. Also, if you can air BnB you can rent for large sums. My home value went up 200% in 10 years. insurance is not that bad considering taxes are low and the ocean is beautiful and the fishing and water sports are amazing. Just drop your boat down on your lift and off you go or slide your personal water craft into the water and your off. You can not compare homes on the water to anything else. Finally, you can get lucky and find something for $800 if you look.

[@mysticaltyger2009]

That's what I was thinking!

[@roadrunner9622]

The guy didn't sound like he had a firm grasp on numbers and the way things work anyway.

[@eplugplay8409]

Similar situation where my wife and I paid off our mortgage about 3 years ago and we discussed about moving up to a bigger house. But with 2 kids our current home is a 2230sq ft house with 3 bed 2 bath and an office which is plenty for the four of us. Its zoned in really great schools from elementary, junior high, and high school and by the time they leave college we would downsize anyway to a house this size or even smaller. So in our mid to late 30s now it would be a very long time for our kids to move out and we rather invest for early retirement. We have 0 debt of any kind, 2 year worth of emergency fund in case we both lose our jobs, max out our retirement accounts, fund our two kids 529, and even fund a taxable account. Life is so much better stress free and there is no house out there that would give us the same feeling everyday. Already feel semi retired and we feel that we skipped 15-20 years of our lives to be where we are today, priceless! Also since we save about 40% first, we mostly enjoy eating out and going on vacations with the left over money.

[@bellabobbybob3476]

Well done! ! Congratulations 🎊

[@striperkid]

Well done. My story is just about backwards of your story...lol. Long story short, no one plans for a divorce but that's what happened to me and my 2nd wife. We both are in our 2nd marriage and both always lived in a small house. We recently bought a 4100 sqft house for just us. Is it too big? Maybe but we don't care. We will enjoy this house and once it really outgrows us, we'll sell and downsize. For now we love the extra space and view of the golf course.

[@eplugplay8409]

@@striperkid Congrats on the house view of the golf course, sounds really nice.

[@davidbrayshaw3529]

My wife and I paid off our very modest home in just under 9 years. It was a renovator's delight, when we purchased the house, and it took the best part of 20 years to iron out the wrinkles, but not having a huge debt hanging over our head made all of the faults that we lived with, much easier to bare, especially on the two occasions when I lost my job! We're now in our early fifties and have owned our house outright, for fifteen years. We've been empty nesters for the last seven years. It is a very good position to be in when you are celebrating interest rate rises, rather than dreading them. As I stated in a previous post, it's very nice when your house works for you, it's not so pleasant when you're working for your house.

[@IrisP989]

Is the house in a low or high cost of living area?

[@bigcahuna42366]

On the first caller, don't forget about home owners and flood insurance. On a $1M house near the gulf coast in the FL panhandle, insurance is EXTREMELY expensive if they can find a company to insure them (State Farm and Farmers jumped ship from the FL home insurance market a while ago), and companies can jack up premiums at any time upon renewal. On a $110K income, I'm afraid they will be house poor just to cover the maintenance on the property. They should look into purchasing a home half that price and they should be fine.

[@superman9772]

yep... exactly... plus usually a place like that has some type of hoa which adds on monthly maintenance fees as well as unexpected assessment costs...

[@mavamQ]

I received an email this evening from a friend that has Citizens Ins (Florida state-backed insurer) saying that he will need to find a new insurer. He is now paying $2,966 to cover a $350k home. Citizens gave him two companies to get quotes from. The first quote he got was $22,000! (Twenty Two Thousand Dollars) There is nothing odd about his home, it is not on the water, it is a few blocks from a lagoon that feeds to St. Andrews Bay and the Gulf though.

[@EmpressMermaid]

Currently there are only 8 companies offering homeowners insurance in Florida and that number is likely about to go down to 6 soon. Plus, Pensacola is very storm, flood, and hurricane prone.

[@Christina-yu3gu]

My realtor is having hard time selling houses on Siesta Key same reason flood insurance u must have now in Jan 2024 if house is 600k or more replacement. Plus Hurricane. I’m out Nevada mountains too much here& weather 🔥🔥

[@bettysmith4527]

Glad they are doing this video, because a lot of people seem to only be concerned as to whether they an afford the mortgage and down payment. No one tells them how much it costs to own and properly maintain a house!

[@jeffreywhitaker5154]

Agree. Just like cars. They’re concerned about whether they can make the car payment for a BMW not thinking that MAINTAINING that vehicle is EXPENSIVE.

[@jasonleatherwood2172]

Agreed i just dropped 10k on septic and driveway repairs took me 12 months of smelling crap every time it rained and crawlinf up my driveway in 4 low but its all fixed now paid for in cash lol

[@orphancharmander1168]

The problem is, that it cost you your life, its not millions, its not billions, its aint trillions, it is it all 👀

[@curiouscat3384]

and the boat!

[@bettysmith4527]

Only 10K for a new septic?? That is dirt cheap, around here it is 15K to 30K for a new leach field! @@jasonleatherwood2172

[@annahopp]

The most important feature of my dream home: PAID! 5 bedrooms on only 2,000 sqft, smallest house on the entire street, no frills shack. We all sleep wonderful and have plenty of money every month to invest thanks to no house payment.

[@user-tn2lk9lu5o]

Very good

[@NAB777]

I’m convinced Some of these people be calling just to show off. This doesn’t really represent AMERICA where people are struggling to put food on the table. When food and tables have gone up in prices but wages have not.

[@blabla903]

Most of them are lying. People making millions don't call in to a radio show for advice, they pay for a real financial advisor.

[@znmsu6196]

my grandfather left me two homes and dear god its alot to handle but im grateful

[@MrBobm001]

He probably lived on beans and rice, drove old truck and gave Dave his first life lesson so please be grateful !

[@SerinaGliues]

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

[@paulboateng7521]

If it’s a primary residence and u plan to live for 30 years you really don’t have to worry about a crash.

[@Solo_RogueTTV]

Obvious bots are obvious

[@sugerrayrobinson4105]

Are you willing to invest that much into a home? Will the home be used for personal use long term? If so then it really doesn’t matter if the housing market crashes, it would only matter in your case if you saw your home as an investment and didn’t want to see that money go. Only way to really mitigate risk is to not tie up so much of your net worth into a property

[@gogos1234567890]

I agree with all replies to this comment. Please also consider that there are so many more variables than what you're mentioning. Personally, I believe that you simply cannot time the housing market whatsoever. Where I live, average house to 400K 10 years ago. Everyone and their grandmother was calling for a crash/housing bubble. Now properties are 1M average, and the ones that sold are very much no longer in a position to own again, and now have to spend 3x as much on rent, paying off other people's mortgages. So I'd just keep in mind that the rental market is actually the riskier move, since you can't opt out of the need to have a roof over your head. You mitigate risk by going with a fixed mortgage, or paying off your mortgage entirely. That's in my opinion the way to make your future the most predictable. It doesn't matter if your property drops to near 0 (and FYI, most crashes are like, 15/25% reduction of values, which is a matter of a few years appreciation). Just my thoughts on the matter though. I know it's 2 months later, would love to hear what you ended up doing.

[@mangodiet801]

DO NOT BUY A HOME NOW, worst time, you can put that money in an FDIC Insured High Yield Savings Account or CD and get earn back about the same of a property, risk free these days

[@superman9772]

first place i got, i thought of it as an investment and broke even ... the place i got now, i think it of a home to live and it's priceless...

[@curiouscat3384]

Waterfront in Pensacola???? He calls this an "opportunity" - probably somebody selling it as a bargain 'cause they lost $ and are throwing in the towel in hurricane territory. They're foolish - I'm glad John spoke up about maintenance and repairs and I'm surprised Dave was not screaming his concerns about it, lol.

[@theadvocate3006]

Let alone the fact that home owners' insurance might not be available in that area.

[@TheyRiseBand]

Dave likes the humble-braggers, anyone worth north of $1 million. He goes easy on them.

[@jimeagle5509]

Tack on the taxes, insurance, upkeep, maintenance, unforeseen expenses on top of the mortgage ……….and that’s why mom and dad rarely go to restaurants anymore …. Thanks ~Jim Eagle

[@sct4040]

Getting a mortgage with all the fees involved scared me so much back in 1997. So, I bit the bullet and paid cash for my apartment. So glad I did. My bank account went to 0, but since I have no interest payments to make, the savings added up quickly.

[@Danieei]

The year I was born. Wish I was born in the late 80’s

[@Essentialoils4ujess-weagle]

My husband and I have done well. Buying ugly houses in nice neighborhoods. We’ve gotten 3 super cheap places to live because we were willing to clean out the houses and fixed them up. It’s amazing what new paint, new flooring and a rack can make sad looking house look brand new 😊

[@kevinhill7140]

Thank you for your content. Peace and Blessings everyone of you.

[@SnifferSock]

My house is worth maybe 1.8x my salary. I can't imagine having one 4.5x... 10-12x just seems insane though, cash or not.

[@LOLZHAHANOTFUNNY]

Same, our mortgage is $128k and we make $105k yearly in our 20s. It's a little house with no garage and a simple setup for our little family. The bills are small too and we never ever argue about money.

[@ChrisMFlorida]

same.. the two houses I've bought since age 23 have been roughly 2x my income. Let me tell you at age 23 a 44k house was a fixer upper, latest home was $105k a few years ago. It's not much but I've got a few acres now and it's paid for.

[@aolvaar8792]

In 2011, I bought an unmarketable Fannie Mae foreclosure for $50K, Now ~$500K My pension is $100K/yr That's 5X ??????

[@aolvaar8792]

@@ChrisMFlorida The OP is talking about how much the house is worth, not how much he paid for it. He can't imagine owning a house that is worth 10X. I can

[@terrodar19]

@@ChrisMFloridaLOL 44k house??? You cant even buy half an acre w that

[@quintc1039]

Its never enough is it?! smh People are never satisfied.

[@Dividendsmattertoo]

Everyone’s tryna live large and find their happiness in things to keep up with the jones. To reach their own I guess but the best experiences in life are almost free

[@lostledger]

Thats what makes the world go round

[@ppg19782]

Factz

[@victors16811]

A $1M house with $100k/y does not make sense wondering how he got 600k on investment

[@GregoryFenelon.]

Death Inheritance.

[@zbeavermanz4277]

​@Basqmusicc guys 48 assuming he started around 24 putting in an aggressive amount of investment would work

[@HoangTran-zk8id]

He forgot to mention that he is planning on eating instant noodle for the next 10 years to afford that

[@alexgrinage]

The lil things he said he has va benefits and he's 47. So even an ok va payment is 1500+ tax free. You usually bet bunch of other tax exemptions benefits saving you money. So you save fast. Examples few stats if your 100% va you don't have to pay properly tax. Health care covered maybe family too. College is free if he used it. Plus more. And you get paid for that So you could easily save 15-30k a year from all that. So from 30 to 47 Is 17 years $255,000-$510,000 before intrest

[@alexgrinage]

​@@HoangTran-zk8idhe didn't go in detail but he said florida va benefits are amazing. For some va recipients they tax exempt you for primary home. Homestead exempt a few stats have it.

[@daphblue]

He likes to live by Dave’s principles, except for the one where you live happily within your means. 😂

[@jonathanwelke]

Thank you Dave. My goal is to pay off my house in 5 years. Im 2 years in and ahead of schedule by about 6 months. Rice and beans sucks at the start but like you said. I hope the end years will be awesome. I'm 41 years old.

[@LukeofAllTrades.]

I tell people to budget 2-3% of home value per year for repairs & upgrades, a ton of people will say that's too much, but I tend to see it be true, unless you just want to deplete and rebuild your emergency fund.

[@ChrisMFlorida]

that's true.. a roof or AC is probably in line with that, not to mention wants vs needs like upgrades.

[@aliciaz4682]

Completely depends on where you live. Up here in Canada nothing in my house is worth 10% of it’s assessed value - the value is the land (just outside of Vancouver, BC)

[@floresnashvilledrummer]

Damn, that's a lot. It does make sense until you're sitting on way too much money in the emergency fund when it could go elsewhere.

[@LukeofAllTrades.]

@@floresnashvilledrummer Yeah, if you get lucky and don't need it, you can always start putting the extra toward paying off the house. Right now I've got it all in a HYSA until the rates drop down to below the rate of the mortgage. If that doesn't happen for another year, it will probably be enough to pay off the whole house. Once I hit that amount, I'll open another investment account and start putting it there. But our A/C could go out anytime, so it's nice to know I already have the money for it.

[@user-tb7rn1il3q]

If you own a home and are handy you can get that number below 1%.

[@dheins57]

These multiple call themed videos are awesome

[@HelosWorldRailroadReseller]

😢 Dave should tell him to run. If he was making $400k a year yeah because he could rebuild investments in no time. They don’t make enough to justify a million dollar property. Crazy to consider

[@jbarkley4938653]

That light bill will be around $800 a month. Just for lights. Imagine the other utilities

[@Big-Government-Is-The-Problem]

not necessarily. it could be a small house on a very expensive lot. either way, its a dumb purchase to sell his money making stocks and put it all in a house

[@blackworldtraveler3711]

I have a $900k home on Marco Island. It’s 1600sqft . My household utilities are the same or even cost less than someone with the same size home worth $200k.

[@RonniewbNC]

Homeowners insurance in FL is outrageous.

[@kathleencooney1518]

I worry about insurance.

[@ppg19782]

Home insurance has been outrageously expensive in FL..and most of the insurance carriers have left the state, stating that they cannot pay insurance coverages for weather calamities and go figure...they got your monet allright...😅😅😅😅

[@alexjeffs7092]

Million dollar houses were 500k a few years ago

[@kathleencooney1518]

Depending on location. Homes always appreciate but some locations much more than others.

[@carlostavaresjr958]

I agree with Dave!

[@nancyblockcolsky1387]

He might owe capital gains tax on some of the investment money, so the $600k might not be a full $600k.

[@Nick-bd2yv]

How did nobody here mention this

[@Bidenlost2020]

@@Nick-bd2yv That is frustrating. I love Ramsey, but he preaches about deliver groceries to pay off debt. Well, TAXES!

[@benstanfill363]

He made it seem like he could get 600k from them. I assumed that's what he plans to have after tax, not what's sitting in the account.

[@kleindropper]

I paid my house off in 2020 and then turned around and sold and bought a huge house 20 miles out of town. I knew rates were never going to be like that again for a while. Now I'm safely away from city crime, have a walk-in shower larger than my entire old bathroom, and the view of a beautiful tree filled park out my back window. I don't regret the new debt at all knowing that I'll likely have it paid off by the time its time to move again when I retire

[@pawelek7]

I guess people like to keep all of their net worth in one asset 😂

[@TM_Stone]

Exactly, you can't take it with you. And if you can't afford it anymore, file bankruptcy and let the lending agency eat it.

[@kleindropper]

@@pawelek7 401k?

[@Sophie3647s]

​@@pawelek7I wouldn't assume that based on his commentn

[@pawelek7]

@@Sophie3647s my mistake I didn’t mean to comment here. I was responding to the different comment 😆 don’t drive and play with your phone

[@MeM.Card.Collect313]

Agree everything we do is in excess and we don’t give ourselves enough wiggle room/margins.

[@cashcow4383]

A waterftont home in Florida is more mainetence than you can even dream of. Saltwater ruins everything so fast you will be shocked what it does to wood in one year

[@faithrada]

Yup, plus Air conditioners, appliances, and cars rust out TWICE as fast on the ocean. Even the "Coastal" house paint is double.. AND does not last. Ocean front is brutal on properties.

[@roadrunner9622]

Not to mention his home insurance costs.

[@sugar74DaDDy]

High property taxes & insurance

[@tiffanya4556]

This. I doubt on $110k a year that they are going to afford the insurance and property taxes in FL

[@Dan16673]

Yeah gotta factor in these things

[@Dan16673]

​@@tiffanya4556110k is weak af

[@vicepresidentmikepence889]

Everyone throws their money away. Renters throw their money away, and homeowners throw their money away paying mortgage interest, property taxes, and insurance

[@user-up6qp9fv9w]

​@@vicepresidentmikepence889yes however someone who owns their house can sell it and get it all back and them some. Someone who has rented for 30 or 40 years has spent a lot of money and nothing to show for it.

[@thirdcoast-nx7jx]

Living on the water, the Gulf Coast, I'd want a nice large nest egg. One nasty hurricane can flatten a million dollar house and then you are subject to Florida insurance laws which is bad place to be if you don't have a pile of cash in the bank. Proceed with extreme caution.

[@reality-winner5759]

Keep piling up cash and keep having your savings eroded over the next 5 years by inflation....or let it appreciate when the beach house goes up in value. Great advice Dave

[@jacksonbilly9979]

I have a side account I during to save up for a house, it’ll be 4/5 years from now and I’m trying to learn everything I can in the mean time to know how much I need and what to look for and all the inspections I need to have. I plan on putting down 20% plus an extra 5% for closing cost and inspections. Looking for house between 90-130k in Oklahoma

[@JoeTheDIY]

No other debt, but even though our mortgage doesn't exceed what is suggested by the Ramsey Plan, repaying our emergency fund, and trying to stack up cash aggressively still feels like we're drowning.

[@Youdontknowwhatliterallymeans]

You'll feel better after you so wisely replenish your emergency fund. Then you ought to be intentional, not intense.

[@stephenstack3292]

I’m in the same boat, but I always tell my wife “at least we’re drowning with money in the bank!”

[@Ashleycorrie8494]

The greater the automated income you can build, the freer you will become. Taking the first step is the hardest, but 5 houses later living off automated income since July 6, 2016. You've got to start taking steps to achieve your goal.

[@RandalHebert]

I couldn't agree more. Taking charge of your life and putting in the hard work is the path to success. Having a portfolio manager like Mr. Samuel Peter Descovich is a game-changer. Their expertise and guidance can truly transform your financial journey. Making $35,000 in profits each month and saving 70% of that is quite impressive!They save you time and provide valuable insights that lead to impressive profits. Keep up the amazing work, and enjoy the fruits of your labor..

[@AnnaKrueger809]

As the economic crisis keep rising, one needs to have different streams of income, a well detailed diversified investment portfolio in the financial markets is needed to survive, as well as secure a profitable investment future, Thanks so much Mr Samuel Peter Descovich for improving my portfolio

[@tiffanya4556]

Why a Million dollar home on that amount of an income. Makes zero sense. Zero.

[@iTuber012]

If they pay cash and no mortgage, they can quickly rebuild the investments. I think they'll be okay but they'll be very house rich. It'll take years to rebuild their savings but with no mortgage, it can be done

[@XennialGuy]

*house poor

[@daphblue]

Right. My husband makes around the same after taxes, not including my income, and our house was just under 200k. We did not feel comfortable spending more, and good thing, because the cost of propane for us and the work put into it feels like a stretch most of the time while we try to save a good amount each month to replace the old wood siding and build a garage.

[@Jss766]

@XennialGuy how? Paid for million dollar place.

[@XennialGuy]

@@Jss766 When you look up the definition of "house poor", it explains it. This guy does not make enough to afford the home even if it was handed to him free. A million dollar home in Florida on the coast comes with the following added expenses in 2023: $15k to $20K a year taxes and HOA, $15k yearly insurance for any new applicants, mandatory roof replacement as set up by your insurance provider which runs anywhere from $35K to $50K these days on the coast for a 3000 ft² home, higher year-round AC costs to prevent mold, much higher AC unit replacement costs every 8 to 10 years on the coast which currently run about $12K on average, interior/exterior pest control, and no, the Home Depot stuff is not going to cut it. Unless you've actually lived on the coast in Florida, you would never realize these things, and I haven't even covered everything. This guy is going to need to dump an average of $40k in home expenses and maintenance every year, and some years may be worse. He's not grandfathered in, his insurance and taxes are going to be atrocious. Considering his take-home pay from 110 is only $85k, he'll be in over his head before he knows it. He does not make enough money to afford that home, plain and simple.

[@johnroark9568]

Beginning of video, "I'm so excited to hear everyday people call in and get great advice about buying a home!" End of video, "Well that was worthless"

[@roadrunner9622]

Yeah, "everyday people" who have $600K investments, $400K equity, buying $1.3 million homes. 🤔

[@davidrecord3928]

True cost is more than you think...that's an understatement. My future home purchase is just a dream now

[@faithrada]

Better to have a dream than an actual nightmare.

[@CycleCruza]

Life can change in a split second. What if your health goes bad and the income goes down, do you want to deal with a $1 million personal home? I'd rather have a cheaper home and go rent a house on the water whenever I wanted to. Lake or ocean front homes bring even more problems and expenses.

[@rdmineer1]

You have to be careful what home you buy. Down, closing, and servicing the mortgage are just the beginning. Add the liability factors, undetermined maintenance and repairs, rapidly rising insurance premiums. Don't forget annual property taxes, rent to the county, and constant devaluation of dollars. Future market value may not ultimately reflect a positive ROI.

[@zuzanazuscinova5209]

No, but where do you suggest people live? We all ultimately bear costs of housing. Whether directly or indirectly.

[@rdmineer1]

@@zuzanazuscinova5209 This is true, we must live somewhere and there is peace in knowing you have control over it. My point is beware what you're getting into. Get what you need and want, enough to serve you, not so much that you serve it. People who are not paying for it can think whatever they want.

[@BasicBeachCommunity1]

Does it depend on location??? We saw 400k houses got to 180k in 2008 and then 300k houses go to 850k in 2021....Bizarre ...

[@LoyceLeeber]

The fact that there is already an excessive amount of demand awaiting its absorption, despite how everyone is frightened and calling the crash, is another reason why it is less likely to occur that way. 2008 saw no one, at least not the broad public, making this forecast, as I'll explain below. The ownership rate was noted to have peaked in 2004 in the other comment. Having previously peaked in the second quarter of 2020, we are currently at the median level. Between 2008 and 2012, it dropped by 3%, and by the second quarter of 2020, it had dropped from 68 to 65.

[@fadhshf]

Investing in both real estate and stocks can be prudent choices, particularly when backed by a robust trading strategy that can navigate you through prosperous periods.

[@TomD226]

You're not doing anything wrong; the problem is that you don't have the knowledge needed to succeed in a challenging market. Only highly qualified professionals who had to experience the 2008 financial crisis could hope to earn a high salary in these challenging conditions.

[@lowcostfresh2266]

@@TomD226 Recently, I've been considering the possibility of speaking with consultants. I need guidance because I'm an adult, but I'm not sure if their services would be all that helpful.

[@TomD226]

Actually, I'm not sure if I'm allowed to mention this, but I'd recommend looking up Camille Alicia Garcia because she was a big deal in 2020. She manages my portfolio and serves as both my coach and my manager.

[@candeffect]

I started planting 401k/IRA mutual fund money trees in the 80s. I couldn't buy a house in CA because prices outpaced my income. I'm 66, retired in 2020, and my money trees are producing average 3x pretax post-income on top of my ss and pension income. If you can't buy a house you can plant money trees. Sell some shares at market highs to build up cash for Bear markets. Start buying back shares at Bear lows with excess cash.

[@saidrachid5943]

You guys forgot to factor in the taxes that he will have to pay when cashing out the 600k investment. Around 200k will go to taxes.

[@riceball777]

depends on what his basis is. Not all 600k are gains. You only pay tax on the Gaines and long term capital gains tax is only 15%

[@blackworldtraveler3711]

That’s the caller job. If he wants more done it’s time to pay someone to do the math for him.

[@stevenporter863]

Finally Dave said stretching for a house provides no wiggle room or liquidity. Like George with all his net worth tied up in a 'paid for house' but no liquidity.

[@DB-bw5fz]

That’s not quite the same thing. George and his wife bought a house they could afford, and worked to pay it off early while still investing. They now have a large portion of their net worth in their home due not just to having it paid off, but also because the value increased after purchase. Having a large portion of your net worth in your house isn’t always bad. Buying a home you can afford that skyrockets in value and becomes a large portion of your net worth isn’t the same thing as liquidating your investments to buy a home that is far out of your price range income wise and making it the largest portion of your net worth.

[@stevenporter863]

@@DB-bw5fz Agreed. I simply mean paying off the house so someone can be a millionaire on paper at the expense (opportunity cost) of growing a portfolio is silly. A house increased in value is only worth something when someone else is willing to pay for it, if it is sold and the previous owner moves somewhere cheaper, presumably of lower quality.

[@DB-bw5fz]

@@stevenporter863 I agree somewhat. If you have a fixed interest rate for the life of the mortgage…then investing the difference when it’s relatively easy for gains to beat the interest paid makes perfect sense. I’m in Canada, and here, the longest fixed interest rate term you can get on a mortgage is 10 years…and generally the rates on those don’t make sense. The most common is the 5 year fixed…so the risk factor is somewhat different here. Here, you’re weighing the potential net gain against the rates you’ll potentially be paying in the future. The low rates of the last decade have wreaked havoc on some that chose investing over paying down their homes. The losses those people experienced when the markets dropped are now being compounded by mortgage renewals coming up and rates going from 2-3% to 6-7%. We opted for the blended approach and did both, having paid off our house after 11 years.

[@wingsofeagle1]

I’ll agree to 💯 %

[@tritonh5683]

Subbed!! Even though I don’t agree on everything he says. But I can truly say, his way will help the majority. If you are a driven and a savage person, his approach might be too mild for you.

[@AngieMcdonald-fu9nh]

Do it!! You will never regret buying your dream home. And you might not get another chance. Waterfront living will give you so much calm. The view alone will extend your live 5 years. If you can hear waves you will be next level zen. This is what you save for! You go out less and spend less when you love where you live. The extra 200k us obviously new firniture and updates. But they can be done over time. The crucial question is how much is in retirement. And is he happy to work until 65? Because if hes happy to give up early retirement. (and lots of guys love working and continue after retirenent) Then BUY IT.

[@kathleenpayne564]

I could have bought a larger house but bought smaller instead. Perfectly happy with what i have. No need for larger more to clean like my mom used to say. Wise woman. And i am working at actually getting rid od excess stuff.

[@KITTYKITTYBO]

He’s 100% service connected which entitles him to not have to pay property taxes is what is not being said here. That doesn’t mean he’s disabled and can’t work or function. Many many many states have this. Our state not only do you not have to pay property taxes no matter where you live, you don’t have to pay for your license plate renewals and there’s a few other benefits as well

[@mixmax6027]

He's also a reservist. He said he couldn't touch the military retirement money yet. If he's 50% or greater, he'll get concurrent retirement. Maybe another 1200 a month after taxes

[@MaxAndDaisy0825]

110 household income isn't much these days Especially in Pensacola freaking Florida Man that's nothing Please don't do this 😭

[@scotland369]

110k is plenty if you don't have student loans, car payments or kids lol

[@advancedchiropractic667]

I live on the water in Florida. Either you’re living on a lake or a Canal not open water for 1 million. If on a canal the sea wall will need to repaired at some time and it’s very expensive. Also, you will want a boat and they are very expensive. Housing is softening, I wait. You get used to living on the water and it just comes at home.

[@billymabum3514]

Brett was showing off . Simple as that

[@JoeLanthier]

Love it. Please just do a new channel with new content about real estate!!!

[@stephensullivan1011]

That'd be cool.

[@jballs1118]

Good video sir. Where can i get a mortgage that when i sell my current home i will be able to pay it all in full without paying penalties because i paid the mortgage in full prior to the 15 year fix mortgage. Am a veteran and i can't aply for a VA loan because i already have a home. Any advice sir ? Thanks

[@evardmuts]

Dave I like your show but can I add some spinach with carrots on my rice and beans? I promised my mom I'll always eat my veggies

[@kimberlyturner820]

😂

[@mg-by7uu]

It's easy! Just make $200k a year if you want to do the 15 year 20% down rule that Dave recommends. But remember prices won't go down even with demand at record lows so keep buying using Dave's endorsed real estate professionals!

[@Orang315]

🙄 I only have a $40,000 house and I got scared to get my roof redone for $20,000 so I DEFINITELY couldn’t be this guy ! 🙄

[@XennialGuy]

Man, where can you get a house for $40K these days? Manufactured home I assume? Even then.

[@Beentheredonethat910]

RAMSEY, what this first guy (disabled vet) doesn't realize is that all disabled Veterans can be reevaluated by the V.A. a d the disability rating dropped to a lower pay rate. Even the 100% Disability Rating with "permanent and total" can be taken away. It's NOT a guaranteed lifetime rating. So be careful when counting that as a permanent paycheck veteran.

[@dougb8207]

Good advice; why take such risk? Living on the water is even riskier than normal.

[@RelentlessDjango]

100k income BEFORE TAXES trying to take on a 1M property; is INSAAAAAANE!

[@sophiafanny]

Flooding insurance? Hurricane risk!

[@nahndibush1942]

Why liquidate ALL of the savings, and not just put half or so toward buying the new house?

[@codelessunlimited7701]

The callers are upper class Americans. They sure love the show program.

[@Kymmyet]

If he's 47 and retired military, there are a few questions and assumptions. If he is retired in Florida there are no taxes that he would be required to pay. If he is retired military (active duty) he should be able to draw retirement immediately. Since he said he's not old enough that leads me to believe he's was a reservist. So their is additional income somewhere plus he my receive disability from the VA. I think he left out a few things....just my thought. Military retirement can be complicated.

[@grahamsiebring5227]

Question for experts out there: although interest rates are high today compared to a few years ago, they are low compared to late in the 20th century. Adjusted for inflation, is it cheaper to buy a house now as a percentage of average income, or was it still cheaper in the 1980s even with high interest interest rates (15-16%) at that time?

[@mikeparrott8304]

The dollar and pound has been devalued heavily which distorts these figures. Hence families not being able to live on one income

[@islandhopper100]

always the qualifier. i do most of what you say except for the important parts as in becoming debt free. KISS(keep it simple stupid). Pay off your mortgage and forget tying up everything to a property on the beach. Rent something on the beach for 6 months and you will quickly realize that living on the beach is quite different than the dreams of living there. Sand and salt are not your friends. Do not get me started on risks associated with beach front property.

[@clayfranklin1282]

What i don't understand is if a couple is living in a beautiful house worth 300k plus, that probably is paid for or almost paid for. why buy more of a house. I guess some people can't be happy with what they have. Keeping up with the jones I am grateful for what i have. I get that some people has goals for awesomeness i get that but more can be stressful

[@wldktz1]

There is absolutely nothing wrong with buying a bigger home. Just because it doesn't fit your preference doesn't mean it's not right for someone else.

[@distorbia20]

Live within your means

[@ccon8]

I’m sure caller 1 will still buy the million dollar house because he is thinking with his emotions

[@knockel18]

There's no way that lady would be able to save 100,000 in 2 years. She sounds like she would never give up her lifestyle.

[@bentate6288]

Do not go to college unless you are absolutely certain you want to pursue a masters+. A bachelors isn’t worth it anymore. And trust me a masters+ isn’t easy and it’s extremely expensive with a lot of debt. Don’t go to a big state school pointless, companies don’t care they want experience and a degree. Coming out of highschool with no debt is the best way to go, work a lot of overtime during the week and enjoy your weekends with friends. Save money. Pay off a cheap working car.

[@roadrunner9622]

Gender Studies

[@bentate6288]

@@roadrunner9622 well yeah that’s of course a golden job career 😂

[@williamedward3198]

People who can’t afford to buy homes do. Then don’t make all necessary or timely repairs to the homes and future homebuyers suffer. It’s a terrible cycle when you can’t afford to buy a home but do.

[@diggernash1]

It is the future buyer's responsibility to find any issues with the house.

[@RJWaynerium]

My inspection revealed the roof was 15-20 years older than what was on the disclosure form. I got this place with a new roof 100% paid by the seller. NEVER WAIVE INSPECTIONS!!

[@williamedward3198]

@@RJWaynerium that’s great advice!

[@williamedward3198]

@@diggernash1 I’m speaking to those exact issues that are now 10x more expensive to fix instead of having been prevented. Like the small water leak turning into a rotting foundation 5 years later.

[@diggernash1]

@williamedward3198 In my state the onus is on the buyer to discover defects or prove that the seller knew about defects. It is traditionally a tough standard for the buyer to meet in court. It is on the buyer, as I believe it should be.

[@Sarah33Kaufman]

I love Dave Ramsey. Seems like we both speak the same language. How can I get a hold of him to give me an advice?

[@faithrada]

I'm thinking that living on the water .. In FL. is REALLY problematic. The Hurricane Insurance ALONE.. IF you can even get it is basically OBSCENE. Values are going to drop Bad. I just sold my Florida property.. too risky.

[@williamedward3198]

Imagine the cost to cool a million dollar house vs 400k house. This guys housing maintenance costs plus tax will more than 4x.

[@rsafree1139]

Don’t confuse price with square footage. They could be the same size, just one is oceanfront and nicer.

[@williamedward3198]

@@rsafree1139 very true. I did make the assumption it must be a lot bigger.

[@blackworldtraveler3711]

Cost of utilities and maintenance should not change because of the price of home. My condo is around one million now but it’s 1600sqft. Cost of cooling is the same or even less than a home of similar size worth less than $400k.. Maintenance is almost nonexistent inside my home with just changing light bulb now and then. Also depends on individual. With my primary home in Oklahoma I received my neighbors electric bill in mail thinking it was mine. Opened it by mistake and it was a $260k bill for August. (Mostly 100 degree days) My bill was around $80 for that month. We both have the same square footage.

[@williamedward3198]

@@blackworldtraveler3711 we don’t have the data on the size of the new house. But generally speaking a more expensive home is a bigger home. And this is more expensive to maintain, heat, cool, repair. Etc.

[@williamedward3198]

@@blackworldtraveler3711 if you’re not maintaining your house more than “just a light bulb here or there” then you’re part of the problem I described in another comment. Not being proactive in fixes causes headaches down the road that generally get passed along to a buyer during sale.

[@alcha93]

Hasn't there been a problem with getting home insurance in florida? I wonder how much insurance costs over there for a waterside house.

[@jasnalah103]

I only make 70k a year wondering how much house can I afford??? I’m tried of these high rent prices

[@joevasconcelos3409]

I didn’t follow Dave’s house rules that means I have to sell it and go save up until I can do it Dave’s way right?

[@fred22036]

Maybe buy a waterfront second house somewhere cheap and use it as a vacation home instead of primary residence.

[@stevenporter863]

18:27 Dave forgot interest again. Six years saving is not equal equity wise to six years of a mortgage since most are front loaded.

[@radatosk]

If your whole net worth is your house what's going to happen when a hurricane destroys it? I grew up with hurricanes so I've learned to diversify.

[@Ink30]

Don't insurance cover that?

[@radatosk]

@@Ink30 some states like California and Florida don't have homeowners insurance companies as they have left or the premium is so high it's unrealistic.

[@wreckers_band8825]

The first caller, I feel doesn't know what he is getting into. Maintaining waterfront properties is expensive. We own 3 acres of vacant land with 420 ft of lake frontage. We haven't even started building anything yet in the last 6 years we have spent 60k already building and maintaining the beach, dredging and removal of invasive water plants, reforestation due to some trees we lost due to the machinery that had to be brought in for the dredging, Annual lake treatment to avoid weeds and invasive plants. Now we need a barrier to protect the waterfront edge from erosion. The list never ends. I absolutely love it and are looking forward to moving here, but you need lots of money to maintain it looking nice.

[@XennialGuy]

And waterfront in Florida of all places. 😂 He's not prepared for the $20K a year insurance hike, mandatory $50k roof replacement by the insurance company, $15K a year property tax and HOA, running your AC 365 Days a year to prevent mold, and yearly evacuation budget.

[@eegernades]

Im buying a home in 2 years. I aint furnishing nothing. Not a thing that girst 6 months.

[@harleyharleyharley]

The worst part about people paying off debt and not enjoying that. But getting back into to find enjoyment. 🤔

[@beckylilly4749]

"Do you have expensive cars? 😂 Dave always going after the cars!"

[@Ewwwwwwnone]

Hummm wait for that insurance alone !

[@susanelizabeth755]

One point to clarify this, the wealthy do save up enough to buy their next asset. They do not save as a means of building wealth or as a retirement strategy...

[@juliem5162]

They also need to consider what the property taxes will be for a 400-500K home in Texas! Possibly 700ish+ a month

[@williamedward3198]

$600k would generate close to $60k a year in a (mutual fund). Who would ever liquidate that…

[@ChrisMFlorida]

a money market? where are you getting 10% in a money market? sign me up.

[@williamedward3198]

@@ChrisMFlorida vanguard heath care fund, VG strategic equity fund, VG international growth fund, vanguard mid cap

[@BlakeBake]

​@@williamedward3198Those are investment funds, not money market accounts. Money Market accounts get 4-5% currently like HYSAs.

[@SpoonyLuvification]

Mutual funds are not the same as a money market, my guy. But yeah I'd never liquidate that

[@williamedward3198]

@@SpoonyLuvification a money market is just a type of mutual fund.