This Is Why You SHOULD BUY a House Instead of Renting (part 2 of 2)

[@TheHumblePenny]

What are your thoughts on homeownership vs renting? Don't forget to watch Part 1 on reasons why you should NOT buy a home: kzbin.info/www/bejne/d5XVoH6QhqZsiZI

[@AlexN0me11]

Would paying off a mortgage with your partner that is not your final home be a good idea?

[@MrRoyck10]

This is the most compelling comprehensive content specifically tailored for African and Caribbean communities: lack of property ownership, this is pure financial gospel. Absolutely brilliant and I will not disagree on a single point as this is knowledge based topic , I concur.

[@TheHumblePenny]

Thank you!! 🙏🏾🙏🏾. Please share with others

[@RogerYeahmon]

It's tailored for African and Caribbean people? Didn't realise - thanks, will block the channel and look elsewhere..

[@dimejiagbolade9718]

Thanks Ken for a great and balanced content. The question of ownership vs renting is purely personal depending on one’s circumstances. But generally, I will recommend one considers owning a home by age 40. Owning my house at 39 brought me strong financial stability. It’s a little home in a relatively inexpensive part of the city where I live and work. Now I’m close to retirement and I feel proud to have taken that decision many years back. Economics doesn’t always win the argument about home ownership; rather stability and future security do.

[@clarenceishmael9615]

Another great video. Having been brought up on a council estate I was on a crusade when I hit adulthood to be a homeowner. Thankfully I've been mortgage free for about 6 years now and with all what's going on in the economy, I've been largely shielded from the horrors that mortgage holders and renters are facing right now. My heart goes out to them but I thank God every day for the sacrifices I made to own my own pile of bricks and morter. Thanks for your work. 🙏🏾👏🏾👏🏾

[@TheHumblePenny]

Beautiful message, Clarence 😊🙏🏾

[@clarenceishmael9615]

@@TheHumblePenny thank you so much. 😊💖

[@mazzymaz6158]

I'm a new subscriber, not seen many videos but what drew me in is how beautiful the personality of this couple is. Just really nice genuine humble people. Your content is also relevant to what I'm looking for. Thank you for your advice, words, wisdom and knowledge you offer. it's pretty clear you want the best for everyone so thank you, may God bless you and your family ❤

[@TheHumblePenny]

You're most welcome and God bless 😊

[@ThePatchworkQuill]

Another great video on this topic! There are so many American channels about property, investing, wealth, etc so it's great to have this high quality content that's relevant to a UK audience (even though I know it's not exclusively for UK and lots of the advice is applicable across the world) Keep doing what you're doing, I'm off to explore your playlists for pensions, ISA and investment content!

[@traciesmobile683]

value of property is irrelevant until you need to sell.

[@TheHumblePenny]

Or remortgage

[@dlc2479]

There's millions of ppl remortgaging rn who won't agree with you

[@fiziparadise7808]

I have recently bought my first residential new build in North West via mortgage to improve the quality of life of my family - and not to make money or become rich, alas! It is all dependent on your perspectives about the world: how you define life, wealth, happiness, etc. In fact, at the end of the day everything is vanity, hence live your life wisely at fullest and up to your NATURAL full potential meanwhile living legacy to your loved ones, and don’t be extremely worried about the rest as it’s hard to win capitalism system - keeping wealth obtained from working-class people in the hands of the few in order to rule and control people - unless there is potential political reforms or massive revolution. Thanks for the video, God bless you and your family. Nowadays, we are extremely surrounded by negative minds…always stay POSITIVE regardless any circumstances. Much respect from Congo🇨🇩

[@newlightup8114]

Thanks Ken for another great video. The topic of homeownership is an emotive one, so kudos to you for tackling it. The conversation is so conflicting simply because ownership has long been regarded a social achievement in the UK financially and emotionally. I’m a home owner but honestly I appreciate that the grass isn’t always greener. If the rental market was fair and secure and access to homeownership was more regulated in the UK as it is in countries like Germany for rent and Jersey for ownership. Then homeownership wouldn’t be as divisive an issue as it is and ppl like me would feel free to rent with security till death thereby allowing us to invest in other places like the stock market. We could also remain mobile with less responsibility. Instead owning a home at any cost and using it for generational wealth and retirement is causing more harm than good in my opinion, esp for younger generations still clambering to get on that ladder. So many homes are being used for individual profit and this has propped up the prices. It’s sad to think that many will never get to own in the country they were born in but will instead be at the mercy of the turbulent rental market. Therefore homeownership seems to be the only way to achieve some sort of “home security” despite all the cons u mentioned in your first video. Sadly there just aren’t many reliable alternatives available. Hopefully this will change soon.

[@TheHumblePenny]

What a well thought out and balanced comment. Thank you for sharing 😊

[@matt31621]

An excellent comment

[@newlightup8114]

@@TheHumblePenny thank you, keep up the content!

[@newlightup8114]

@@matt31621 Thank you. Much appreciated!

[@RogerYeahmon]

just keep in mind you're not the home OWNER until the day you pay your final mortgage payment.. until then, all you own is a liability to make 300 or so monthly payments. Until that day you're at the mercy of the central bank and your own capacity to earn.. Some people don't want that liability, e.g. me..

[@barbarar5869]

I just wanted to comment on the signle buyer who cannot afford to buy despite a good income...I think the real problem is that society tells us we must own a 3 bed semi-d and many people are incapable of letting go on this idea. I know people who will rent all their life rather because they wont purchase an apt.

[@AdorbxSummer]

Thanks for sharing this video. I have also been concerned about the low percentage of non -british Africans that own a home early in their career. Having looked at the Asian community, I see that there is this communual support towards owning a home.

[@nicolagolding3281]

Great info ...totally agree with buying a home I brought a little flat and I was able to put down a very good deposit which means my mortgage is not very high.. Now I am over paying on my mortgage and hoping to be mortgage free .

[@TheHumblePenny]

What an excellent position to be in 🙌🏾

[@babahailey4856]

We have decided to continue investing in S&P 500 for now ,,, probably until we can afford to pay 25% deposit for a house , i dont know if this is a good idea but our goal is to be financially free and probably retire early

[@TheHumblePenny]

Putting together a decent deposit whilst investing is a smart move.

[@dlc2479]

TLDR: Limiting yourself to one location can incur significant lifestyle opportunity costs. I'm 28, single, have a deposit for a London flat and a decent income above 75k. I have no interest in settling in London or the UK long term so buying isn't very attractive for me given that most London & SE properties would operate at a significant loss as BTLs for me due to being a higher rate tax payer. My family own a large home in Kent that we intend to turn into flats for cash flow and a property in the Caribbean that I'll inherit a portion of one day. I'll be working remotely for the foreseeable and saving a ton in cost of living costs. I've been able to do this because I've leveraged remote work, the freedom of renting and the childfree life-style. By not being limited to one property, I've been able and will continue to take up international opportunities, thereby growing my experience, income and network. The money I save on mortgages and living in London will be invested straight into some index funds which outperform property by some margin anyway and I'll get to see the world in the process!

[@TheHumblePenny]

Very good plan 👌🏾. Thank you for sharing this.

[@262charlene]

Thank you Ken, excellent content. It’s a difficult one, on paper if you put the money you pay each month on a mortgage and additional costs in to a high interest savings account or stock market after a number of years you would come out financially better off. I think the issue is, especially living in a city like London, is that after you pay rent there is very little left to save and invest. Ideally it’s best to buy a cheaper home, so you have a home base and then have money at the end of the month to invest. Also, I live in an area of london with a lot of properties that are rented. My son by year 1 had children who had just started the school and then left by year two because of unstable housing (3 different primary schools already at such a young age)

[@TheHumblePenny]

You hit the nail on the head. On paper, it makes a ton of sense to invest and rent as minimally as possible but it isn't always possible. I personally think it's sad that many people who live and love living in cities are having to move because they're getting priced out. If you can, watch the show called "Evicted" on BBC Iplayer. It's very revealing viewing and shows plainly the challenges that people who are renting face. It's a complex matter in many ways and each person needs to figure out what works best for them and their goals.

[@darkangel686868]

The default for wealth building in most circumstances in the UK, is buying a home, especially with kids. The only advantage I can see that renting has over buying, is if you’re young, single, professional, with no kids, highly ambitious, and want to climb the career ladder, then the flexibility in location that renting provides, can help accelerate career, giving opportunity that might not have come, if you limited yourself to living/buying house in one location. But even then, the UK is an asset economy, meaning having an asset like a paid for house, and working a minimum wage job, would probably give you a better lifestyle, than earning £60k, and paying extortionate rents/mortgage. It’s all about assets in the UK.

[@bink865]

I moved to a low-cost area and bought a cheap flat. My mortgage is quite small. I did this 5 years ago.

[@TheHumblePenny]

Any regrets?

[@tari2073]

I just want to buy a house to have a 🏡 to settle in. That's all

[@TheHumblePenny]

Simples.

[@charlielima247]

I'm not buying a home right now because the opportunity costs are far greater when compared to the stock market after the crash in 2022. I've been trading within my ISA and standard brokerage account and there are a lot of opportunities for individual picks. If the housing market does fall to a level that I feel is fair value then I will reassess the situation.

[@TheHumblePenny]

Thank you for sharing. The point about opportunity cost is important. What are you investing in?

[@mereani]

Oh yes, I read the comments and some people took it a bit too personally 😂😂 I don't think they understood the idea of providing a different point of view 😆

[@zoomed66]

Tent cities are inevitable

[@akshay8195]

Thanks Ken, I am wanting to buy a house with my fiance before we get married next summer and was wondering whether we should buy or not. We have a deposit saved around 20-25% but just waiting for some sort of pullback.

[@TheHumblePenny]

You've got a pretty good deposit. Save as much as you can. The timing next year from a property price perspective will likely be more favourable than now.

[@akshay8195]

@@TheHumblePenny thanks Ken, Sorry for asking soo many questions but do you get to choose whether the mortgage payments goes towards the principal or interest. Also over a period of time you in this current climate your essentially paying more than 70-80% of the house value in interest - is that correct?

[@roadto0mortgage52]

@@akshay8195your payment is split between interest and principle. 🎉

[@Michael.P247]

My home is an asset for me, I pay off my mortgage gradually, I live in it and I currently use part of it for Airbnb generating about £700 per month. There’s also talks of the government suspending stamp duty for all buyers temporarily..,that will improve buyers ability to buy properties…and guess what; it’ll invariably improve interest in properties again, thereby driving up prices

[@smann7236]

Is that house hacking? And do mortgages lenders like when you rent out room to help with mortgage?

[@Michael.P247]

@@smann7236 An average uk 🇬🇧 resident has been brainwashed into thinking they can’t do what ever they want with their own property. Why won’t I be able to use my property for what ever I want to? Cmon man…. Just stay away from new builds (help to buy), those are the only properties that are tricky to buy .. I don’t care what mortgage lenders LIKe or Don’t like…. I’m important first. Stop caring about these system restrictions and you’ll be better off.

[@smann7236]

@@Michael.P247 ah cool .thanks for reply. can you expand little more, I'm ignorant in this issue. If I save 10-15% deposit and earn minimum wage can I tell the bank that I will rent two rooms in house to help me with mortgage? That's house hacking right?

[@Michael.P247]

@@smann7236 please consult a mortgage broker

[@MrSebastianBlake]

You can legally do Airbnb if your own freehold just mention it with your mortgage company via email (so you have a paper trail) they usually say yes as they want their money. Or you can do rent a room scheme either way

[@Ranti3724]

Hi Ken, my help to buy loan is approaching 5 years but considering the high interest rate and I was planning on remortgaging to pay it off. However considering the current high interest rate is it worth NOT paying the help to buy yet as I believe interest on htb should be lower than re-mortgage loan

[@abdulwahabfakunle6513]

Nice video

[@TheHumblePenny]

Thank you 😊

[@abdulwahabfakunle6513]

In my opinion I believe Africans and Nigerians in particular have a sentimental attachment to owing a house. This emotion usually trumps any economic sense.

[@francisa4505]

can I ask because I dont get a straight answer - if you have a HTB Isa which has not had any deposits can you still use it

[@gracelynf1945]

Home ownership has been cheaper for me. As a single working person, if I didn't own my home, I would be renting rooms in a shared house. I had rented rooms for a period of time during which I rented out my home. I am considering renting out a room at some point so I can pay off my mortgage early. I currently have a 10-year mortgage. 😊

[@TheHumblePenny]

Keep going 💪🏾

[@Cleo1John]

When you go off to rent a room how do you go about getting permissions from your mortgage company/ bank

[@barbarar5869]

I too am in a house share and couldn't possibly afford to live on my own renting, but I will manage to do it by buying

[@jumpropemonk7703]

What if you're a cash buyers?

[@TheHumblePenny]

Even better.

[@jumpropemonk7703]

@@TheHumblePenny Thanks brother. My current mortgage runs out in 10 months. I have some savings and I m contemplating on taking equity on current property(Semi Detached)and buying a smaller terrace for cash then renting out Semi Detached since Mortgage payment will be at peak by next year. God know maybe interest rate will be 8% by then. Thought or advice?

[@dlc2479]

Your opportunity cost will be outrageous though

[@addllyrad77]

HI Ken, I've been following your videos for quite sometime now and learning a lot. Is it worth overpaying the mortgage or putting it on savings account? I've manage to get a 1.4% rate on my 5 year fixed mortgage but tempted about high interest rate in savings. If savings, what sort of savings or is it worth investing? Thanks

[@TheHumblePenny]

1.4% is a steal! Welldone. If you can get a higher return on savings, I'd take it, especially if guaranteed. Out of interest, do you have a Lifetime ISA? and do you pay into that?

[@charlielima247]

Not financial advice but just maths. Overpaying during your 1.4% rate mortgage will effectively give you a return of 1.4% on your money that is now difficult to get back out of your house if you ever need it. If you were to instead place your disposable income into a high yield savings account making 4 or 5% you will make a higher yield with no risk and access to those funds dictated by the account terms. If you were to invest the money, you'll now be placing your capital at risk, your money could grow beyond the 4-5% offered in savings accounts but you could also lose money if your investment fails to appreciate or produce dividends/coupons/interest etc. If you don't understand the risks or how to allocate your investments you may want to consider speaking to a financial advisor. When it comes time to renew your mortgage, you can use your excess savings or investments to pay down your mortgage should you decide that you want to reduce your monthly payment and the affects of the new interest rate at the time. If I were in your situation, I would save the money and not pay down the mortgage whilst you're on a lower fix and pay down the mortgage if I find that the rates to be worth tackling at the time of renewal. I would only consider investing my money if I understood the investment instrument and the risks associated with it. Please do your own due diligence. Hope this helps

[@addllyrad77]

Hi Ken, I don’t have any ISA or whatsoever. I hope you can help me understand ISA and all of this high yield savings. Thank you!

[@addllyrad77]

@@charlielima247Thank you Charlie! Please enlighten me on all high yield savings before I get too old 😅

[@AdorbxSummer]

Hello Ben, can you use your home to generate extra income if it was purchased through the help2buy scheme.

[@MrSebastianBlake]

Yes via the lodger (rent a room scheme)