Why Buying A Home Is A BAD IDEA | Ramit Sethi

[@TheGrahamStephanShow]

Set up a trust in minutes! Enjoy the benefits and privacy of putting your home in a trust today - Thanks to www.GetDynasty.com/Graham/ for sponsoring a portion of today's video!

[@saulgoodman2018]

I would not use an online service to set up a trust or a will.

[@pinkribbonskies5731]

​@@saulgoodman2018110% 😂

[@tatianastarcic]

Because so many people overpaid for homes even while loan rates were low, I believe there will be a housing catastrophe because these people are in debt. If housing costs continue to drop and, for whatever reason, they can no longer afford the property and it goes into foreclosure, they have no equity since, even if they try to sell, they will not make any money. I believe that many individuals will experience this, especially given the impending mass layoffs and rapidly rising living expenses.

[@Michaelparker12]

I advise you to invest in stocks to balance out your real estate, Even the worst recessions offer wonderful buying opportunities in the markets if you're cautious. Volatility can also result in excellent short-term buy and sell opportunities. This is not financial advice, but buy now because cash is definitely not king right now!

[@nicolasbenson009]

You're correct! With the help of an investment coach, I was able to diversify my 450K portfolio across markets and produce slightly more than $830K in net profit from high dividend yield equities, ETFs, and bonds.

[@BridgetMiller-]

Would you mind providing details on the advisor who helped you? saving for a pension through a corporate program since the age of 18. I hit greater tax along the road, so I increased my company pension with a SIPP (tax benefits). I'm now 50 and would love to expand my finances more aggressively; there are a few automobiles I still want to drive and a few mega-vacations that I still want to take.

[@nicolasbenson009]

There are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’ Melissa Terri Swayne” for about five years now, and her performance has been consistently impressive. She’s quite known in her field, look her up.

[@berniceburgos-]

I located her, sent her an email, and scheduled a call; hopefully, she will reply because I want to start the new year off financially strong.

[@SeanTalkoff]

Prices are too high. With rates not subsidised in ’24 and mortgage still high , currently seeking alternatives to maximize savings without an RV move or taking a loan. I’m seriously contemplating the latter.

[@mikey43221]

Affording our mortgage is tough as well. I have suggested cashing in, renting or relocating, and investing the rest in the stock market.

[@WillieNickell]

If you can afford to relocate, you should manage the mortgage.

[@SteveDutton-v]

I advise you to get advice from a fiduciary who is knowledgeable about mortgage-backed securities if you want to invest in the stock market. Prices now could appear to be declining tomorrow.

[@PASCALDAB]

Thats true, working with a financial advisor has been a game-changer for me. They provided invaluable insights and tailored strategies that aligned perfectly with my risk tolerance and financial objectives. With their support, I've seen significant growth in my investments and gained confidence in my financial future.

[@PASCALDAB]

Well, I chose Vivian Carol Gioia as my advisor after her interview on CNBC In 2020. She is SEC regulated with offices in the US and quite frankly a genius with portfolio diversification.

[@rangequeen]

The market is crazy. I feel terrible for anyone trying to buy. People want a permanent residence, a sanctuary. It’s not all about financial sense. I hope things change. 🥺

[@CliffNotesAnesthesia]

Agreed, in Long Island and it’s absurd! 🤯

[@elcheekoful]

Yeah I had to pause and continue renting. I'm in East TN. I'm done looking for a little while.

[@rangequeen]

@@elcheekoful I’m so sorry, I hope things get better. This sucks.

[@jordanwilliams9300]

I also feel terrible for folks who weren't able to buy in time before interest rates and prices simultaneously skyrocketed. I bought in 2018, and I feel DAMN lucky. Just blind, stupid luck, when it comes down to it.

[@rangequeen]

@@jordanwilliams9300 I know, it’s a double whammy. 😕 I bought in 2012, happened to be a good time for a young person to buy.

[@cathyg1099]

On my third rental in less than a year thanks to slumlords who won’t maintain safe properties. I’ve paid to move three times and rent has increased 20%. I would rather own a small place of my own, than worry about landlords, increasing rents, noisy neighbors, etc. Home ownership is a blessing that few can afford.

[@victorespino5650]

You can rent a Home too. Home rents typically don't increase as much as apartments.

[@jrlottery7]

@cathyg1099 You're EXACTLY right! It's one thing if the monthly rent is lower than a mortgage payment. But, the fact is rents are increasing at a much faster rate - and, in your case, if a landlord is being a slumlord, then all of that squashes the rent, not buy theory. Unless you're living overseas and paying marginal rent, I disagree with renting over buying in the US.

[@LRF49]

You're definitely choosing the wrong rentals. Never had that problem. You can tell right away when an apartment is run by a slumlord.

[@DivkvanDyke6913]

I’ve done both. You’re just replacing a landlord with a slum repair guy who will charge you based on how he feels that day with ease. I got laid off and had to move. I am losing a thousand dollars a month renting out my house. Worst decision of my life. Will never do it again. Edit: if you think landlords are bad wait till you have to deal with an HOA. Literally the same thing but far worse 😂

[@coreyburke3493]

I think if you read Ramits book or watch the full video it makes more sense. He basically says if you buy a house buy it because it's where you want to live and you can afford it. He's saying don't buy a house because you feel like it's a good investment that's not the best reason to buy a house.

[@Mandres603]

Buying a house in the wrong financial situation can ruin your future. Zero down, no cash on hand, bad debt, and payment higher than 25% of income. All too common

[@leprechaun3677]

You’re right in the first half; it can. However, buying a house with no money down is exactly what the VA loan is. Debt isn’t something to be afraid of, it’s how you manage your debt. And even if your house was 50% of your income, again it doesn’t matter assuming you’re managing that risk. Yea, buying a house could screw you. But so could sitting on the sidelines waiting for that “right moment”.

[@reaper-sz5tm]

@@leprechaun3677this is some of the most inexperienced financial advice I’ve ever read. Are you a millionaire?

[@stevenporter863]

Buy a house with wealth, not to build wealth. That is what wealthy people do.

[@jacobstrouble6631]

wrong and stupid comment

[@josha.bdoge2]

@@stevenporter863 Says a poor guy....flipping real estate has one of the highest earning Potentials in this country

[@Marcus-id5ur]

Multi millionaires can afford to not worry about rising rent costs. Us average joes need to lock in that mortgage so we don't have to worry about rising rent cost ten years from now.

[@rjaymanguino2760]

Wait til you hear about property taxes

[@Marcus-id5ur]

@rjaymanguino2760 maybe if you live in Texas. For most of us, property tax increases are capped at a fairly low percentage. Here in MI it's 5%.

[@Mark-ye9pi]

@@rjaymanguino2760if we’re comparing property taxes to rent, ofc I’d rather that 0.5%-1% annually over a total rent payment that increases at my landlords discretion.

[@AnnArborBuck]

Insurance, taxes, and repairs are all sky rocketing in price. It's great that you locked in at a historic low rate, but what until your furnace goes out or you need a new roof. Prices have gone crazy.

[@Marcus-id5ur]

@@AnnArborBuck if you can't afford the mortgage plus the repairs, then you are house poor. Buying a house you can afford is obviously the first step.

[@Raymondjohn2]

I believe the retirement crisis will get even worse. Many struggle to save due to low wages, rising prices, and exorbitant rents. With homeownership becoming unattainable for middle-class Americans, they may not have a home to rely on for retirement either.

[@JacquelinePerrira]

Got it! Buying stocks during a recession when prices are down could be a good move. You might get them at a lower price and sell later when they go up. Just do your homework and be aware of the risks before diving in!

[@Ashley186fre2]

That's awesome! Investing in stocks with a reliable trading system can lead to great outcomes. It's fantastic that you've been working with a financial advisor for a year now. Starting with less than $200K and being just $19,000 away from making half a million in profit is impressive! Keep up the good work!

[@kevinmarten]

Mind if I ask you to recommend this particular coach you using their service?

[@Ashley186fre2]

Carol Vivian Constable is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment..

[@kevinmarten]

I am on her site doing my due diligence. She seems proficient. I wrote her an email and scheduled a phone call. Thanks for sharing

[@kaycon4823]

I like how Graham brings sanity to some of the generalities that some people tend to say and use.

[@a.long-diaz5739]

I would love for you guys to have him in the Iced Coffee Hour.

[@aprilracine]

Yes, please 🙏

[@jacobday3826]

That would be pretty sick! We grow the most when we challenge ourselves with alternative views. 😊

[@jarettesuikowsky6742]

For the record, eating out is a rip off as well.

[@AK-47ISTHEWAY]

For real. McDonald's is charging over 14 bucks for a Big Mac meal in my town.

[@Prickly-Hedgehog]

I didn't buy my house for a profit. I bought it so I had a roof over my head that I own.

[@Austin-ub2gi]

And by doing that you at least saved most of your money instead of paying someone else to rent their place

[@rangequeen]

💯

[@glitterstarbeau]

I bought a house because I got a 2.85% interest rate and my husband fixes everything that breaks

[@stevenporter863]

That is what a primary residence is for - not an investment.

[@benedict1064]

Basic human needs reduced to a commodity to be bought and sold for the highest profits. What a rotten system we live in.

[@toddbarrera375]

I bought a house to cap my housing expenses. Landlords have decided that they can raise rent on a whim because that's what the market is allowing.

[@AnnArborBuck]

They cost of ownership is sky rocketing, of course rents have to go up. I used to be able to get a plumber to snake a drain for $90. Now, post covid, it is at least $150. I just had a roof replaced that would have been 5k pre-covid, now it cost over 10k (it's a small 800' floor plan). Taxes have gone up significantly and insurance on properties has been absolutely sky rocketing.

[@awanen]

I love ramit sethi, but I don't consider my primary home an investment and if by the off chance I lose the ability to make money, my fixed cost would be low and I would be chill. If things break that's where my emergency fund comes in... for emergencies.

[@f25mart]

That's his point lol it's all situational and should work for you. Glad it does

[@IAmebAdger]

Ramit did say at the end of his video that in your situation you would be ready to consider buying. Gotta be fair to the guy.

[@awanen]

@@IAmebAdger I agree. I wrote my comment in the middle of the video. We're actually all in agreement. Again I love Ramit Sethi.

[@saulgoodman2018]

@@f25martBut him and Graham looks at everything as an investment.

[@arh1234]

One issue is that in many cases, having a mortgage doesn't reduce costs compared to renting

[@saulgoodman2018]

Buying a house to live in, is not an investment. People have to stop thinking that.

[@johnyang1420]

Renting house is the same thing but way cheaper

[@DebraJohnson]

@@johnyang1420 It's not the same. You don't control the property, you don't gain any equity, and you don't get to deduct interest and taxes on a rental.

[@benedict1064]

@@johnyang1420 Renting is most certainly not cheaper in the long run. Rent always goes up, while a fixed mortgage stays the same. Edit: Mortgage can even go down if you refinance at a lower interest rate.

[@dwuanbrown9469]

​​@@DebraJohnson This argument doesn't hold water. I should spend hundreds of thousands of dollars to deduct tens of thousands in interest? And then the deduction really only works if you itemize which most people don't do. Or I can not spend that money and put it else where to make money. The point being that buying a house is not a financial decision but more of an emotional one.

[@bendover2425]

Stupid idiot 😂

[@daminh9245]

Idc what any of these videos say. I’m always for buying a house IF you’re not stretching yourself thin for it.

[@Flipdar101]

Your complaing of costs keeps us informed. Your transparency is the best thing about your channel.

[@CaseyPhilson]

I love having our home! ... An investment in our family and memories!

[@Getslashfucked]

Whilst I don’t advocate for people to rent their homes, Memories can be made in a rental too.

[@CaseyPhilson]

@@Getslashfucked absolutely true

[@josha.bdoge2]

As it should be since when did our Homes become a commodity for the rich anyway

[@Getslashfucked]

@@josha.bdoge2 since we borrow money from the rich in form of a mortgage to buy then, so for forever I guess? 🤷🏼‍♂️

[@christianjames92]

Until it's time to change your roof after a storm and now you have to come up with $15k over night cause the insurance won't cover you because your roof was already old.

[@zeenkosis]

What is not factored here is when you rent you’re at the mercy of your landlord. I’ve had only one rental where I had no issues the whole year. Every other rental having to beg the landlord to fix an issue was just too much. And if your landlord sells the property. good luck. I was glad to have the option for a while but the lack of control was why we finally bought a home. We got a home, it needs work yes but I am in control and we lease a cottage so that helps with expenses too.

[@AnnArborBuck]

If you have a lease it doesn't mean a thing if they sell it. Now if you are month to month that is an issue, but then again the renter can move out anytime they want as well on a month to month.

[@AAS1-kp9cs]

I currently rent out my house as I had to move for work. I ran the numbers, and after expenses I get about a 2% return on my money in my house. I get more than double that in my high yield savings account for a lot less work.

[@MomoGetsMoney]

Did your numbers also look at appreciation and equity buy down?

[@AAS1-kp9cs]

@@MomoGetsMoney this is with no mortgage. It does not include appreciation. The returns are still massively lower than the stock market though even factoring in appreciation.

[@MomoGetsMoney]

@@AAS1-kp9cs you bought cash? How much money down did you put

[@AAS1-kp9cs]

@@MomoGetsMoney paid it off over 20 years. It’s my primary home.

[@MomoGetsMoney]

@@AAS1-kp9cs congrats. I guess your area hasn’t done too well growth and population wise for it to not be hugely profitable over 20 years. Still an accomplishment to be free and clear though

[@linda840325]

What a funny timing, I’ve been watching a lot of Ramit’s videos lately! Thank you for sharing your perspective, Graham :)

[@YoPhocFays]

Yes, please keep renting. That's what my landlord suggest.

[@victorespino5650]

As long as the rent is low. Buy a house and rent it out.

[@hulkhoganwwf]

Can confirm I'm his landlord

[@YoPhocFays]

@@hulkhoganwwf lol

[@chadfungus]

That is what the government wants, a nation full of renters. Not a good idea

[@christianjames92]

You can make the same argument for the banks having your home as collateral.

[@diyrealestate34]

I’ll pay all day to not have a landlord tell me up and leave my home.

[@zeenkosis]

Agree! That experience is horrible

[@bendover2425]

You must be a shitty tenant lol

[@loma9326]

Its easy to say renting is easy until you go through that where your landlord kicks you out sometimes through no fault of your own

[@vonydavis1150]

Or tell you that they won’t fix anything.

[@siddreddy1416]

If it makes you feel any better, Mother Nature will tell us when we have to leave our body

[@dougscott188]

I was a homeowner for 25 years and made $200k when I sold the house. But if you count up all those phantom costs I made much less. But the chief benefit of owning a home is the fact you have more control over the property in terms of renovations and things like that. But if you want flexibility then renting is better. I lived through 2008 and it took nearly 13 years for my home to return to those highs. This market is going to correct and you don’t want to be on the wrong side of it. If you don’t plan to live in a place for the next decade don’t buy right now.

[@davidanderson5411]

the market is going to correct.. 😅 I've been hearing it since 2020

[@GunplaandChill]

@@davidanderson5411it’s basic economics. The rising prices are unsustainable.

[@davidanderson5411]

@@GunplaandChill I bought my first flat 19years ago, basic economics is.. rising prices are here to stay, properties always go up in the long term, always

[@AstwoodF]

It’s funny that he only spoke about the phantom costs. There are also phantom benefits: like Graham said, privacy, not being forced to move out because of someone’s whim, being able to build equity and, in many cases, being able to leverage that equity.

[@abramsrob]

But houses eat up your time, renting gives you free time you never need to make repairs

[@stevenpike7857]

Buying a home now for most people is impossible and crazy. In Florida - the median income is 32k a year - that maybe buys you a 100k house. Two income household on average, 200k house. The median price of a home is 500k. People bought houses two years ago for 150k, slap paint on them and now sell them at 380k... it's insane. How do you not all see we're in a hugeass bubble?

[@Normalhumman]

None of these renting vs owning videos talk about practicality of owning. Most home owners are people with kids or ones trying to grow their family soon. Renting basically means you got to keep moving and that’s not a great thing given you want stability and memories to build. As I have said, buying a house is an emotional decision. I have made upgrades to my house for 100k plus which is sunk cost, but it gets hard to attach $ value to memories you build with your spouse and kids. So in the end if you can afford it and it is a small fraction of your gross income go ahead and take the plunge

[@jcantonelli1]

This is the strongest point one can make in favor of buying in this market, IMO.

[@barnabusdoyle4930]

There was a lot of financial advisors who were telling people to rent instead of buy over the past decade. The problem with that advice, is that you will end up renting for the rest of your life instead of eventually being able to pay off your home and have an asset you could sell if needed. Now with home prices having spiked and rent also going up a lot, people who took that advice are going to never be able to get into a home of their own:

[@nspencer257]

Just bought our first home recently after 14 years of renting. We are just so tired of the rental life. We wanted a place to grow our family that was in our control of meeting our family needs, we could afford it and we were ready for the commitment of owning our own space and staying long term.

[@Superdoopercooper]

Real estate is not for the money, its for the ownership of the title. Long term the owner can be creative about what he does with the property to make the numbers work

[@johnnysd22]

I don’t want to be a renter because I don’t want to move every time my landlord decides to sell the house.

[@SamBalducci]

Everything goes in cycles and depends on the local economy. Sometimes it is better to rent vs buy. If you have a family with kids and are in a good school system, it is better to own it since you will be there maybe 20yrs. It is universally true that you should never buy or rent more than you can afford no matter what year.

[@Caliabra]

People keep forgetting about the opportunity cost to have that extra money it takes to buy a house/upkeep a home in investments.

[@Advermvp]

I own a home for rights and stability, everything else is secondary. If you don't have a family and/or don't care about the stability, totally get it, though. But for me, being told my rent is going up $500 one year or my landlord saying gtfo I'm selling just isn't an option for me.

[@davidbrooks8809]

You do know mortgages are foreclosed every year😢

[@nancyklingler1335]

@@davidbrooks8809 Only if you are not paying, a landlord can make you leave for any reason once your lease is up.

[@xoxrazzyxox]

That’s only if you default though isn’t it?

[@beatricerights]

@@davidbrooks8809 Much harder for a lender to foreclose than landlord to keep you out. I know someone who has been in foreclosure in nyc for over a decade.

[@EvenStevensDad]

@@davidbrooks8809 please keep renting... you clearly dont know how mortgages work.. You think they randomly just foreclose? 😂 Most people buy homes with a 30 year fix.. meaning their monthly payment doesnt increase at all outside of taxes and maybe cost of insurance.. When renting, your payment usually goes up every year or other year no matter what.

[@cloudyblaze7916]

I feared 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.

[@selenajack2036]

You are not alone we can no longer afford our mortgage, wife wants us to travel or relocate/I am proposing cashing in, walking away and renting while putting the rest in the stock market.

[@roddywoods8130]

Consider reallocating from real estate to stocks. Severe recessions offer market buying opportunities with caution, as volatility can yield short-term trading prospects. Not financial advice but it may be wise to invest, as cash isn't ideal in this period. I simply adopted the service of an advisor early 2020 amid covid-outbreak, and so far, I've attained my most measurable financial milestone of $650k after subsequent investments.

[@hushbash2989]

This is quite huge ! much more info needed please, what did you invest in?

[@roddywoods8130]

MARISOL CORDOVA is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.

[@sciencemix8565]

Just put that money in a S&P500 and wait until real state crashes and you will buy a house for nothing.

[@mathehack1]

When I bought a house in 2021 I ran the Numbers and there was no financial benefit to buying vs renting. I had a dirt cheap rental for my area. Zoom forward a couple years, that rental is now $400 more a month. Prices in our local market have exploded and interest rates are way up. I would've been at the mercy the local rent market instead I'm locked in at a lower price for housing. The house is way better as well. When I go to sell, I'll get the money I have into it plus appreciation.

[@michaelwiebeck3]

Great video! For 2024, it’s hard to nail down specific predictions for the housing market because it’s not yet clear how quickly or how much the Federal Reserve can bring down inflation and borrowing costs without tanking buyer demand for everything from homes to cars.

[@Rachadrian]

A lot of folks have been going on about a market rally and said that stocks would be experiencing significant growth this period any idea which stocks this may be? I just sold my home in the Boca Grande area and I’m looking to remunerate a lump sum into the stock market before stocks rebound, is this a good time to buy or no?

[@Olsontim21]

@@Rachadrian If you're new to the market, I'd suggest you look for professional assistance. The best way to build a well-structured portfolio is to start off with a professional who is familiar with the tumultuous but lucrative market.

[@Dantursi1]

I have been utilizing a coach for daily investment decisions for the past three years, resulting in over $1 million in gains. My coach's analysis has prevented losses and guided me to make the most of market breakthroughs, particularly during downtrends.

[@SteveEstrada-js9nu]

True, we’re only just an information away from amassing wealth, I know a lot of folks that made a fortune from the Dotcom crash as well as the 08’ crash and I’ve been looking into similar opportunities in this present market, could this coach that guides you help?

[@Dantursi1]

The advisor that guides me is Melissa Rose Francks, most likely the internet is where to find her basic info, just search her name. She's established.

[@karenm.6814]

I much prefer how you are doing your videos here. This seems more like conversation versus your other videos. Please continue this format. The other ones seem more cookie cutter and doesn’t come off as genuine. This absolutely does!!!

[@jonkuderer]

The best answer to this age old question is, "it depends". My only complaint on his video is saying that rent price is based on supply and demand. While that is correct for the most part, New York just had the hearing on Landlords creating a monopoly and using software for all of them to raise rent without real reason. Just doing it all at the same time.

[@shellyu1442]

Maybe its too simple for me to get the answer, the price chart of homes over time always goes up… so how can renting be better? Rents almost always goes up….

[@emiliaessentials]

"That guy didn't make sense. There are numerous benefits to buying a house with cash and paying it off. If he's a billionaire, as he claims, he can easily buy a house in cash and only pay for home insurance, property taxes, and other minor expenses, which vary by state and are relatively inexpensive. He could even purchase a multi-family property and have it pay for itself. Meanwhile, when you rent, the owner can kick you out at any time, raise the rent, and limit what you can do to the property. And if it's an apartment, you don't have a private yard or much privacy."

[@ryanspalding6252]

At work, I have so many friends that just want to rush into buying a home. Some have, and their mortgage is making them house poor. Or it's not a great house / in a bad area that I would never want to live in. Crazy thing is we make the same amount of money and I am astounded to their logic. It is all the same, as with most Americans. The need to "BUY A HOSUE RIGHT NOW TO BE RICH". And that renting is "throwing money away". Glad for Ramit and Graham calling out this faulty logic. I live in an amazing apartment that I would be easily be paying 2-3x for if it had a mortgage on it. I will gladly keep renting for the time being.

[@joshualeibiwitz9113]

But what do you do when like me you choose to sit out of the housing market because I’m priced out, but renting takes the same 40% of my income? It feels like renting/home ownership are both horrible.

[@rowddyone3570]

Issue is people buy too much home

[@beatscatmommy1735]

Love renting. Great landlord, great neighbors and location. Fixes things on spot. It wud cost me more per month to own a 3 bedroom condo/ townhouse in any area close to us. Tax+ insurance+ hoa!!!

[@stevenporter863]

Thank you for making a video about this setting the record straight. The idea everybody should buy a house is in part the reason for high prices and people complain they can't afford it (self fulfilling prophecy) and that is what makes houses so attractive to investors. Appreciation is the standard war cry: only in the last few years, before that houses barely returned a percent over inflation. People need to stop thinking like it is 1955 that a house is a financial shortcut.

[@vinceliu605]

In a highly appreciating area where house prices increase ~10% a year, even though the cost of rent is significantly lower (less than half), you're still gonna be better off if you buy as early as you can, unless you want to rent forever.

[@FJX716]

Don’t really have the option to buy a cheap home in NY to fix up. The homes are often too far gone because they’re so old and cheap homes tend to be in high crime areas and project neighborhoods.

[@josha.bdoge2]

Sounds like you need to move!

[@annielin2894]

I am in Brooklyn New York I wouldn’t go for a house to die with a heart attack

[@xXCasta21Xx]

New York is sinking anyways, just move out now thank me later.

[@CliffNotesAnesthesia]

@@annielin2894true the people in Brooklyn are selling and moving out here to Suffolk, Long Island 😂

[@arh1234]

That's why renting can be a great choice!

[@ivymaddison]

With rates still as high in ’24 coupled with uncontrollable inflation, and our own mortgage at 6.8% what are the best alternatives/strategies for avoiding a crunch and maximize my savings other than moving in to a recreational vechile with my spouse?

[@simone_maya]

You are not alone we can no longer afford our mortgage, husband wants us to travel or relocate/I am proposing cashing in, walking away and renting while putting the rest in the stock market.

[@clintscott3300]

simone if you have the funds to travel you should be try to afford the mortgage, i'd consider that in my case anyway.

[@simone_maya]

We own a few rented apartments but don’t wish to sell them or make the tenants uncomfortable by inflating rents however I am being more cautious than ever with rising costs.

[@FranciszekPawal]

Affordable housing is no longer available so you are a good person to do that for people under your roof. What you want to do I will advise you do it now because the prices you see today will look like dips tomorrow.

[@FranciszekPawal]

If you are in crossroads or need sincere advice on the best moves to take now with fin-mrkts ...

[@Courtney-Alice-Gargani]

I bought a house because I didn’t want to be a renter. I don't agree with Ramit some times.

[@timcareymusic]

I think you might be missing the entire point of the video. He is literally saying that the stigma against renters is a social construct designed to get people to make bad financial decisions.

[@uhnonymous2374]

tell me you didn’t watch the video at all without telling me you didn’t want the video 😂

[@CliffNotesAnesthesia]

@@timcareymusicthe algorithm sent us all this video because we saw Ramit Sethi’s 😏 but yes I actually watched the entire thing and believe he made great points yet I’m going into my purchase after really diving deep into my life, finances, values, and my own reality! Buying homes isn’t for the weak

[@davidbrooks8809]

For me renting is better.. owning has too many hidden cars

[@Hboogie182]

You're still renting it from the government. You have to pay property taxes every year.

[@divorceesquire]

Most landlords include all overhead expenses into their rental fees (mortgage, maintenance, property taxes, and insurance). By owning the house, you either pay for these expenses directly, or to the landlord who takes a cut.

[@alex124241]

I guess the question is: overtime, does the home appreciation offset all of the phantom costs. Another cost he does not mention is interest on the loan of the property. There are so many costs involved with real estate property. I’m not sure where exactly it’s as good or better than investing in a 401k.

[@matthewbest9998]

I think I like this video more than your main page solely due to the lack of cuts. It’s good to hear your take without edit

[@martinlazar9420]

One other note. If you are renting you are paying all the maintenance costs, taxes insurance and on top of all that a markup on the property as the landlord wants to make a profit. So they get profit from you paying and the equity in the property. You do get one benefit though and that is flexibility to move.

[@tomaszp2027]

I don't care what I'm paying, it can be their redtube subscription or weekly pizza night. What I care about is the total number, and if that is much lower then I rent.

[@carinarivera]

I went from living in a one bedroom, to a 3500 foot home. I loved my home. But cleaning was a lot. I loved the space but doing the lawn. And paying for maintenance

[@antoniofigueroa5084]

I did just that. Bought a 3b condo that needed a facelift. Did the work myself and in two years the value of the property rose almost by 30%. I'm currently selling to pursue another opportunity. Which is key because you don'twant to have to reject an opportunity because your tied up in real estate. I got ready to sell asap. Took so long to facelift because I was fixing it up after work while working full-time. Only had a few hours per day. It became my part-time job

[@alanon907]

Let’s run with that restaurant analogy. If you had a choice between two restaurants, but one gave you ownership equity every time you purchased a meal, where would you eat?

[@bvoyelr]

I'd eat at the place where I enjoyed the food, because a restaurant that sells crap food is going down in value, so it doesn't really matter how much equity you have in it. Same with home ownership. If you buy a fetid craphole in a dangerous neighborhood just so you can say you own your own home, you're missing the world for the trees. We only get one life. Within reason, live it in a place you're happy to go home to every night. If that means you're renting something, so be it -- you should be able to save something on top of that to leverage into a down payment on a mortgage on a decent house if you just plain want to own a home.

[@WilliamKliskey]

Depends on the price of the meal

[@f25mart]

id eat where I enjoyed the food more and considered the price of that meal lol What if the restaurant is terrible and you'd be acquiring equity in a sinking ship? lol it's all situational

[@IAmebAdger]

His point was it makes no sense to argue you're throwing money away by renting. You're paying for a human need, it's not throwing money away.

[@stevenporter863]

Some people aren't interested in ownership in the restaurant and ultimately earning the right to do their own dishes (using the restaurant analogy) - they have their own investment strategy and just want a meal.

[@luvfoto]

What nobody’s talking about is when you rent you’re dealing with some crazy landlord who’s not fixing stuff who’s not taking care of the place and a lot of time rentals are not in the greatest areas. Sometimes things work having cost more money was too short to be stuck in a rental that you’re not allowed to do anything you want and something breaks you can’t get a hold of anybody, I don’t know what you do nowadays you’re losing 😢

[@plywood7894]

What also no one is talking about is the crazy stuff you have to deal when you try to find contractors to fix your roof

[@luvfoto]

@@plywood7894 ya I found out last year. You can’t get anyone because no one wants to work or worse no on knows what the heck they are doing 🥵

[@unsilencednation6036]

I've had amazing landlords and everything gets fixed the next day unless it's the weekend. For me, renting is stressful free living

[@Image8O4]

What no one is talking about is how much homes depreciated btwn 2008 - 2021. If you bought in 2007 or 2008 you were stuck in a home that wasn't worth what you paid for it in the next 12 to 13 years.

[@jeffro249]

Exactly. They only discuss numbers. I’ve had landlords that won’t fix the A/C in 100+ degree heat or kick me out because they want to move back in or sell the house. It may be cheaper to rent but you’re at the mercy of someone else. I finally bought a house and have never been happier.

[@jfuentes.household]

I see the common denominator is labor cost. I you can't fix it yourself, then you'll be racked by the contractors. Regardless of the house being for rental or for yourself, this is a factor. If your not into home improvement, then you're not capitalizing on owning. Why would you improve someone else's house? If you don't do or are not interested in home improvement, then don't own.

[@sallyprzybil2404]

Ok. So I just put earnest money on a house. I got a good deal, much less than renting. But then, I’m retired and have the freedom to move to a small town with a much more reasonable cost of living. The thing that surprised me was how much I was going to be paying over the life of the loan in interest. It almost doubles the amount of the loan.

[@EvenStevensDad]

Something no one talks about is that 30 year fix mortgages are a great inflation hedge. When you have a 30 year mortgage, you're making the same payment (excluding increased taxes and insurance) for all those years. Even at the end of it, you have an appreciated asset and no more payments to make. Meanwhile, rent prices increase almost every year.

[@martinlazar9420]

Buying a house can make financial sense. It can be much cheaper then rent over the long run and you get equity. But the main purpose of buying at least a primary residence is for you. Buying real estate for profit is a different animal and is for business. I bought my house in 2009 for 357k. It is now worth for 600k. But I have no plan on selling it for at least another 20 years.

[@robocop581]

I'm a Landlord and I totally agree with renters. They should never buy a house. Just pay for my rental properties instead

[@AK-47ISTHEWAY]

🤣

[@bvoyelr]

I owned a home in 2019 and sold it "to save money because I didn't really care about home ownership." It has now appreciated $150,000. I could probably make a 5-600 dollar monthly profit if I rented it out. There's no point to this post. I just like to get salty about it every once in a while.

[@DebraJohnson]

I had a home I sold in 2017 - same thing. It's appreciated $100K since then. I bought again in 2022 and will be holding this time for sure.

[@Mark-ye9pi]

I get salty everytime i see someone blessed enough to own a home decide to sell after I explain to them that they could rent it out with a PM Company so they won’t even have to do the dirty work. But that’s too hard for ppl.

[@tomaszp2027]

You invested that money, right? Right?

[@Chriswillrise]

I guess this just works in specific areas. In San Diego rent is basically just as high as a mortgage if you have 20% down. My mortgage is 3800 and I bought last year. My neighbors are renters and their rent is 4200/m

[@jessejock4878]

I currently own three properties in Alberta, but the rental income is insufficient to cover mortgage payments, condo fees, property management, and taxes. Presently, I am renting a two-bedroom apartment in a decent neighborhood in Atlanta for $1,350. If I were to purchase it, my monthly expenses including mortgage, HOA fees, and property taxes would exceed $2,000. Therefore, it doesn't make financial sense for me to buy it.

[@KimJilene]

Do you own property in Alberta, Canada or you did you mean Atlanta? I am in Ontario and was thinking of buying my first property in Alberta - but with so many Canadians migrating to Alberta, housing costs are going up, and not sure if it is worth it anymore…

[@jessejock4878]

​@@KimJilene I own two properties in Calgary and one in Red Deer. I don't recommend condos due to the increasing condo fees; they've risen from under $300 in 2015 to $650 per month now. If you're looking to make money, I suggest buying a house with a separate basement suite.

[@bri24701]

Running the numbers is the most important thing to do. One thing he does not talk about is rent inflation. When I bought my place in 2019 it made sense for me because rents were going up and by buying a place I could lock in my mortgage at a fixed rate for 20 years.

[@sergiocornejo4763]

I do agree with Ramit "for right now", I look at the same area with property and renting now is a lot cheaper. However when the tide turns and mortgage is at the same level or cheaper I will buy another property. You can say what you want being cheaper renting, we ALL know in the future property will increase in value where you wished you purchased one for your family.

[@gsdgirl8967]

I still think buying a home, car or investments is a good buy when you buy the right time. I have no regrets buying our house. We didn't buy a house we wanted but what we could effort. Start small and less expensive so you can pay it off faster.

[@contextual_investor6139]

Always comes down to the long term game. Yeah in the short term, renting is cheaper, but it’s a retirement investment, not a traditional investment. Youre not in it to make money, you’re in it to secure a low cost of living when you retire. It’s better to set aside extra money now so that when you retire you don’t have to worry about a landlord dictating your living conditions and how much your rent is going to be. Same principle as investing in a Roth, diligence and sacrifice now means security later

[@rogerdodgerrips]

This is one that sucks for me. I bought a mobile home a while back. It’s paid off, but I have lot rent. And I still have to do all the homeowner things (new roof and windows are needed soon). So I feel like I’m paying more than if I owned a home or rented. But now it feels daunting to go back to the renting situation because the rent is high and to buy a house right now is wayy to expensive and terrible rates. So I’m basically just sitting on this mobile home and shipping out lot rent every month until something gets better

[@mr925KING]

I’m buying a house with land when I can build studios owning it’s always better than renting if not why would people buy properties to rent ?

[@kellyhou9594]

At the end of the day, owning a home gives you so much pride, joy, security and sense of belonging. You do not get it from renting. And whatever improvement you made to your home will be yours to keep. If only number matters, then why would someone want to buy BMW and not Toyota? Having a paid for home is still a more secure investment, you are also accumulating equity. My parents made a lot of money in real estate not because they want to invest, but it is for their business purpose: warehouse, offices, retail stores. The only one time my father wants to make money quick in real estate, he end up losing money...

[@jasonjosephlee]

Buying rentals before buying your primary house is a great idea. You can rent where you live while you save money to buy rentals. That is what I have done.

[@dustinwoods7613]

If you can’t by multi family properties yet buy a house and use it to leverage getting a loan to then buy rental properties. I agree houses themselves are a bad idea unless your going to flip it or leverage it.

[@mr_num_numz]

Again, location is key. Buying a home in the midwest is probably a smart move. Rent is higher than a mortgage.

[@loma9326]

When you live somewhere where rental properties are hard to come by and you can get kicked out on a day's notice, buying a house is a no brainer. It is a personal choice.

[@mjs28s]

@8:40 Another issue with mortgage interest deductions is that once you hit a certain loan balance, the standard deduction is often such that it offsets the interest on a $250,000 balance (depending on your family situation) so even with that you don't get some huge tax savings for the full term of the mortgage note but only a small part of it.

[@peterf1239]

One is definitely not breaking even in a flip situation like you're describing because of all the time that's required. What time is a huge cost. You have to like fixing up houses. I think the comparison needs to be where you would prefer to have a primary residence over a home - then live there 15 years

[@unlimitedpower4101]

Buying will always be better when the interest rates drop down back to being reasonable again. At the moment though, I would not suggest anyone to buy a house unless they're paying cash. The interest rate just does not make sense, especially if the home values are only going up 0.6% per year.

[@craigshak]

Landlords love this ramit video.please keep renting.

[@susanwhitbeck4210]

If u can afford a home, taxes repairs it’s good and as long as it’s not more then 30% of incomes. Having a home is stressful with maintenance and all. Renting is fine especially now. Even rent is expensive but with taxes and repairs it would be too much.

[@alexkennedy5133]

We bought our first house recently because I’ve always loved to do diy projects that can help add value and make our home feel personal instead of needing some landlord to tell us we can’t drill a hole somewhere or repaint a bathroom.

[@maxwellnewsome5903]

As a trust litigator, I love sponsors like this. Fighting about poorly formed trusts is what pays for my mortgage lol.

[@zeenkosis]

No 😂

[@travisherdt]

Have to deal with a landlord or property property managers are the worst. Getting something fix on a property you don’t own is a hassle and the tenant is never the priority.

[@paulacedillo-weerasinghe6018]

I enjoyed this video! I read Ramit’s book 📖 💚and recommended it. I have automated my finances because of it. I saw his Netflix show and subscribed to his channel. I listen weekly because he doesn’t disappoint!

[@beatricerights]

The thing with owning property is that one day when you get older you will finish paying that mortgage. I have watch way too many videos where an older person is being forced to move because the landlord wants to raise the rent or push the person out. I hate this rent culture that is being pushed upon young people. Rent your home, rent your car and now I see rent your clothes. In the end you will own nothing and be put out into the streets.

[@JPWrites]

If the average increase in house prices is 2-3% a year, isn't that wiped out by inflation? (Saying this as a home owner, so definitely not against buying a home, but not sure about it as an investment)

[@user73958]

That is what the video implies, but there a large group of people who insist that renting is for suckers.

[@MomoGetsMoney]

That’s silly. Look at housing appreciation since the history of ever

[@Dylan.Swindells]

Great video! I really want to get into real estate some day but I’m glad you’re confirming my fear of buying right now

[@Tucanaldeinversiones]

I'm glad I bought my home in 2015 and I hope each person can by his home. In time is what make sense at the end is yours is not my investment is my home , when I'm old I got my place

[@HeyitsMarioDiaz]

I love your content. I subscribe to Ramit so I already had seen the original video but I pretty much consume everything you post. The day you no longer post will be a sad day. But until then, thank you good sir!!!!!

[@finanzhead]

Thanks for the transparency even if you're an real estate investor. Unluckily in Germany also many people have the one big goal to own a house, even if it makes no (financial) sense at all in their case.

[@magicalobsessions3384]

See when I was still with my parents as a little older adult we clashed. The only was it was going to end was by moving out. Went for a house because price of rent is basically same amount. We get along better since. I don’t regret my decision at all.

[@bchristopher2270]

You also have to factor in rent increases, being forced to move because the building sold etc etc. Lots of hassles and financial downside to renting too.

[@Kingfigaro]

I follow both of you on this platform because you both bring valuable knowledge to both sides of the real estate game. I hope you both can collaborate in the the near future

[@laurenbaker6776]

apartments can be financially risky too. I know people who have dealt with flooding from an upstairs neighbor and don't get compensated for their damages.

[@Apollo21Million]

it truly does just depend on the individual circumstance

[@aarongarmonRealtor]

This perspective is determined by what social class you are in.

[@aarongarmonRealtor]

@@justthebrttrk I have heard billionaires say that buying cars is a bad investment so they take Ubers every day. Now tell a working class person to do that.

[@nicoleschneider9139]

Being able to rent somewhere nice where it’s an expensive monthly cost, means your income must be higher. Whereas buying you can have a large downpayment (save/invest for for years) at lower income and be able to afford the neighborhood you want to be in by having a lower monthly cost than you would renting.

[@privettoli]

The problem with renting is you can't change the house to your liking and you may be forced to move out when the contract ends. Quite often, the rent price would increase substantially and now you need to spend time and money to move. Unless you have a good landlord, you can get a bunch of problems with having things repaired, etc. By owning you take all that responsibility and get the stability of housing for years to come.

[@jcantonelli1]

Yes, these things are called trade-offs.

[@airliu1]

I appreciate your candidness and authentic ness at 3:05