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Your Future is CANCELED! Biggest ASSET MOST PEOPLE WILL NEVER OWN…
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- čas přidán 22. 12. 2023
- The senior economist at Zillow just came out and said a house is the biggest asset that most people will never own! Well I'm here to tell you that is simply not true, especially if you have a strong goal to become a home owner one day. But it must be done right.
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#realestate #housingmarket #homeprices #housingmarketcrash
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I agree 100%. No one owns anything, as long as there's property taxes.
No property tax for 100% disabled veterans in Texas. One of the few ways to avoid this.
Renters are still paying property taxes. No avoiding it.
@@DIVISIONINCISION umm, yeah, giving up ones body and freedom is hardly a good trade off, plus disabled people probably have medical healthcare debt out the wazoo.
I’d rather “not own” a home I have equity in than “not own” a rental. Plus, I pay property taxes too. 🥱
Option one: My taxes are $300 a month for my paid for house. Option 2: Rent for my place would be $3,500 a month. I choose option 2.
House prices need to drop by at least 50 percent.
They won’t though
You can dream. But that's all it is. Not gonna happen.
Rates need to drop!
@@jayf6525where you saying the same thing in 06? If yes you still don’t what your talking about and no need for your input
Home prices will never come down 50%. So anyone with an option other than yours isn't entitled to theirs huh Willie. Grow up just a bit.@@williewill1237
Our town just raised our taxes quite a bit on our house. I am retired on a fixed income, and it scares me to think the taxes will eventually drive me out of my home.
Then where will you live?
That’s the plan, man.
You might check with your taxing authority and see if you qualify for any relief. If available, there might be homestead, a tax cap, or a reduced rate. Good luck. ❤
@@candelariaw1668 In a van down by the river.
or 3 blocks down on the right...@@prettygirlus9008
Michael - Great "ownership" discussion. We already own nothing and are (not) happy.
I'm 65 , worked in Orange County CA my whole life and bought a small homestead cabin in Joshua Tree on 2.5 acres in '01 for 10k. Real estate in this whole area has gone crazy. My property taxes are only $400 annually. I now live here and thank my lucky stars. Good luck everyone ✌
Thank heavens for Prop 13. When I hear about property taxes in other states--yikes.
How long before California votes to repeal prop 13? We can enjoy it while it lasts.
I've been paying off my mortgage aggressively for the last 3 years... I have about 24 months to go... I don't know how high homeowners insurance will go in the future, but I want to be in a position to opt out if necessary... Plus, I won't have out of pocket monthly mortgage payments anymore... We have to think ahead, and do the best that we can right now...
The cost of insurance with a 15000$ deductible is significantly cheaper than the standard deductible. I wouldn't claim anything small anyway because you can be dropped, or price increased for that alone. Only need it if the house burns down. Significant savings
@@nightdipper5178 Good advice.
@@nightdipper5178 You are absolutely right...
Good job might have to do faster
Fight to ABOLISH Property Taxes! Some politicians are running on this!
There are very good arguments for very low or no property taxes and relying on income taxes so those that can pay do so based on what equitable.
@@arlenbell4376 Income tax is just redistribution from those that can pay more easily. (Out of income.) It's expedient, but there is nothing "fairer" about that. And the democrat "paying their fair share" arguement is BS, as they pay far more than their fair share already.
It should be if you are 65 or older we should stop paying property taxes. The greedy government won’t do that.
It should be if you have your house paid off, no more taxes.
A house may be an asset but is always a liability. Roof, foundation, water heater, HVAC, weather damage, property and school taxes...
The landlord is also a Liability. They can suddenly jack up the rent on you.
the problem is the speculators and flippers have destroyed the market for homes - they should tax heavily any gains private equity or flippers make on "investment" homes they do not personally live in for at least 3 years or rent out for 5 years - that way people can have home ownership w/o letting speculators ruin it
To me, the biggest problems with home ownership are neighbors. You have no control over who might move in next door.
Could I tell you stories about neighbors. There's always that one. Maybe there's a Reddit for that topic. Lol
A big part of the problem is standard house design. Try finding a courtyard house with no windows (cameras are cheaper) that protects you from disturbance by neighbor's lawn mowers, leaf blowers, dog barking, BBQ smoke, motorcycles, yak yak yakking on the phone outside, etc. I believe banks control building codes that result in cookie cutter designs designed mostly to be uninhabitable.
That applies to renting as well. Especially in apartment buildings where the walls are so thin you can hear your neighbors breathing. And when they have some adult fun the whole building is getting free por*
That's why you have to go in there and establish that you are the crazy one quickly.
Property tax + Maintenance (assessments) + Insurance + PMI + Mortgage Interest = Homeowners' RENT
Or worse…Renter’s Rent = all the above + a little EXTRA for the Owner to squander every month 🤫🤫🤫
And owners a little extra for the banks to squander every month.@@idliketosay
@@idliketosayyup
At least it doesn’t have dog breed restrictions
@@idliketosay Or BETTER if the person is responsible and saves/invest the difference.
When calculating the gain in equity over time, people often omit to account for the interest paid.
In the end of the day I am happier linving in my own home than in a landlord's home. I think many people would feel the same
I agree with you.
I'm a boomer the drill was to go to college, get a job, get married buy a house, then another have kids, go on vacation, put them through school and college, save money, our parents pass on their assets, we retire and help our kids.
100 percent
100% agree . renting sucks no matter what.
And with a house you get Equity...
Michael is right, guys and gals. Be patient. Eventually, these rates and prices will drop.
People have been saying this for 10 years
They’ll drop but it won’t ever be 3% again
Ah the illusion of life, that we own anything.
Amen 😂
Property rights are the only thing that keeps society lawful. Watch order unravel once no one has anything to lose.
Homes being sold in my area have 6-7 cars parked at them.
So that house looks like a Walmart parking lot
Cheaper to pay property taxes than rent. My house is paid off, you always pay rent.
Plus you have the equity. Renters have none, the landlord keeps it.
My yearly property taxes plus insurance is the same as 1.5 months rent if I was renting the house.
So once I finish paying the mortgage, I pay 1.5 rent payments every year while a renter pays 12.
Over the long term, owning is way better.
Your unfortunately leaving out the fact that if you live in an expensive local you could easily pay $10000 a year property tax for a small outdated home,
you need to pay quarterly home insurance or risk possibly losing everything, plus you need to do all maintenance for home and property. Also by the time the home is paid off, it is old.@@AJourneyOfYourSoul
@@AJourneyOfYourSoul Exactly. That's all I pay is insurance and property tax. Of course repairs I can do most needed things. Never seen a renter take good care of maintenance or cleaning. I had rentals and that was a nightmare.
We need a bottoms up movement to abolish property taxes, not lower them. Outright abolishment.
Most governments have property taxes on homeowners to pay for road, water, sewage, and electricity, along with services such as fire department and the police. Depending on where you live, your property taxes only pays for a fraction or the government makes quite a profit off you. Urban areas, for example, are heavily taxed and the money goes to subsidize suburban services (the infrastructure in suburbia is spread out and therefore much higher per person than in dense urban areas).
@@langhamp8912 bs, they don't need it and we should outright finance it another way, much was built before both.
@@jaguar4271 Sewage, water, and electricity has an expected lifespan of 30 years, while roads are functionally less than 15. In the US, suburbs that are newly constructed with 20-year municipal bonds and developmental housing loans.
That infrastructure cost was something like 30K per household back in 2018; it's difficult to get that cash on hand without financing it. Such Mickey Mouse financing is the reason why cheaper older houses usually have such gigantic tax bills; the municipal expire, yes, right about the same time infrastructure needs to be rebuilt.
@@langhamp8912 Again it was available in whatever format before the bloodsucking from the governments and although I didn't live in such times I would venture to say they were ran better for limited they could have been, besides in the topic of water look under the surface a little, it's not what you think it is and that's why we get the poison fluoride that we get, a chemical waste dumped on the water supply lovingly of course.
So if you pay 2000.00 $ a month in rent for 30 yrs. that comes out to 720,000.00 $ in rent . You paid all of an investors interest and principle and he gets all of the appreciation which in some cases is 4 or 5 fold . Then as a senior you leave with nothing and still have to pay for housing . Help me understand what I don't understand .
Yup, maybe this video is intended to make people who waited feel better about their decisions.
Plus that rent increases just about every single year, so much more than 720,000.
Factor in a 5% a year increase in rent over a 30 year period and rhe amount in rent paid is actually over a million.
Nobody wants to have to wait to 50 to buy a house. You might as well never own at that point, most people start thinking about downsizing by 55 or 60 and don’t need as much space or want to deal with it…
I've got a good one for you. Bought a 3 year old 4/3 pool home in Florida in 1997. Paid cash. Now, looking to down-size, but unable to find anything worth the asking price. Conclusion: better off staying right where I am.
Educated professional men often don't marry until late 30s and start having children at 40 so they have small children at 50 and don't downsize until 65.
Ummmm. I'm 54. I bought a house 4 years ago, and another one 2 years ago. I don't look at life in terms of my age. I just live it and do what makes me happy.
Don't buy a house that you have to down size to when you get older. The kids will move out faster if they aren't to comfortable. This tells me you are spending more then you can afford with all the other things life throws at you.
I plan on upsizing around 50 because I'll have more time around the house.
If you are a senior who lives in the right county, you may not have to pay real estate tax if your monthly income is low. I know this because I received a letter from the county to my late grandma asking her if she needed real estate tax relief.
You're right but a year of property tax is still way less than a month or two of rent. I think the smartest thing to do is just live with your parents for 5 years after school and save every penny,
NOT NOT NOT in NY and NJ.
Where the country is at nowadays, staying at home with your parents for 10 years+ after finishing college and saving the entire time is NOT EVEN CLOSE to being enough to have a jumpstart a life that matters in the USA. It's struggle existence THROUGH AND THROUGH for most people that are not trust fund babies.
@@eddieneyman4035it would help of house prices didn’t double after 2019. I’ve been saving for 12 years and at times it feels still unaffordable.
Property tax is just as much as rent in some places. Suburbs of Columbus Ohio have really high property tax, worse in January because of county reappraisal.
@@eddieneyman4035 Very True. The average young working man just starting out, especially if he's paying rent is going to have a tough time buying a house at age 30. It was much easier in the 50's 60's and 70's when our grand parents and parents bought their homes. The only reason I was able to purchase a home was my mother leaving me her house, when she passed, which I sold. Otherwise I would have been stuck paying $2,000 a month rent for the rest of my life.
Property taxes pay for schools and county services. (roads, animal control, police, fire, school buses, educator salaries, etc...)
There of us who made sacrifices to send our kids to private Christian schools pay for garbage service water service electric service and are now elderly seniors I don’t want to pay taxes on my home I don’t agree we get no freebies we’re seniors living frugal on a very small small income we’re worked hard for 60 years to have a small home why should we be taxed out of our home
Nice job of deconstructing popular mythology surrounding home ownership - very well stated, kudos to you for highlighting that how wealth is built is more about actually investing: either in a forced way as a homeowner, or in a self directed way. Double kudos for pointing out that the basic reason why people who could buy a house but choose to remain renters not building wealth is because they spend their money on silly things that the homeowner is "forced" to spend on their mortgage. Nice visual change of pace for you to be walking through the Flamingo Park area.
I’m functionally retired @ 39. Six figures in cash savings, no car, no debt, and I am self employed. I can’t afford a house, but I don’t care.
Up here in North Florida, housing construction is booming with new homes for 300,000.
Florida will be one of the last to fall. It was in the last bust. I was a realtor selling new homes then. I could see what was going on.
When Michael says average household income is 75k that is mostly correct. However, beware that takes into account all earners in the house. The median wage per year in this country is around 35k a year. Good luck getting into a house at median wage in any major market.
35k a year is more than enough to buy a house. You are just doing your math wrong.
@@artofhookie🤣🤣🤣🤣🤣 Absolute joke. My wife and I earn $128k gross and there isn’t a house in Portland that’s affordable per monthly payment.
@@austingreen1274 sounds like a spending and saving problem. Save 1,000. A month for 20 years. Even poorly invested will net over half a million. Math is sexy AF
@@artofhookie yeah no one is talking about a 20 year time frame or even a 5 year time frame (which for most people on median salary the math still doesn't work) and I have no idea what local real estate market you are dealing with but here even small empty lots and tear downs are going for 300-400k in crappy areas.
@@estuardo2985 you just defined the difference between rich and poor. The rich save, the poor spend. We all live and die by the choices we make.
Don’t mix apples & oranges, a landlord is a landlord, he’s not the city tax collector or mortgage holder 🙄, neither picks and chooses the renter or does the repairs on a home. You’re gonna pay for a roof over your head, you either pay and collect equity and upgrade your home or downsize & retire, or you pay your landlord who will kick you out after your lease ends so he can raise the rent due to property taxes going up or market value went up and you’re out crying trying to find a new home , hoping a landlord chooses you to be their tenant. Hence homelessness
Agree on the forever loan! Ridiculous
You actually have a third landlord when you buy, in addition to the two you mentioned. Most of the time you'll end up with a HOA which is just another entity that controls how you live and what you can and can't do with "your" property. The other option is to hunt for unrestricted land, which pretty much guarantees you'll have the worst possible neighbors who will undoubtedly start a home-based auto salvage yard/toxic waste dump/skunk farm, right after you sign the dotted line.
If you care so much about what you're neighbors are doing, get into an HOA neighborhood. They were created for uptight people like you. If you own at least 5 acres, it doesn't much matter what your neighbor decides to do. One guy in the neighborhood used to run a rock crushing machine. Didn't bother me. Another regularly shot clay discs with a shotgun, and yet another raises goats. Space makes everything better.
@@scottrc5391 I'm not uptight for any reason other than resale value. If you build something nice next to a dump, you'll have a tougher time finding buyers should you need to sell it. I wouldn't personally be bothered by any of the neighbors you described. But that could just as easily be an industrial sized chicken farm.
@@colliswilliams8992 Yes, you care about resale value, I already knew that. HOA's, along with restrictive covenants, were originally created to keep black people out of neighborhoods. Had nothing to do with some rednecks turning their yard into used car lots. I personally would rather deal with that than subject myself to some egomaniac on a powertrip as often happens with HOA's.
@@colliswilliams8992 "I'm not uptight"
"....for any reason other than resale value"
Pick one, bozo lmao. If all you care about is resale value, then you ARE in fact, very uptight.
@@colliswilliams8992 Great point(s).
It used to be that once you paid your home off that was it. We've allowed taxes to get ridiculous and they still over spend. Everything was supposed to be "temporary". Nothing is more permanent than a "temporary" solution. The same is true about income taxes. That wasn't supposed to last either. Once you allow the government anything it will become permanent.
Also, for those who paid off their homes and want to pass them down to family, put it in a living trust. If you don't they will have to pay capital gains taxes which usually not only causes them to sell but can even leave them owing depending. Protect your assets. I recommend Toby Mathis Esq | Tax Planning & Asset Protection to learn more about directions you might want to go and how to protect yourself. His channel is full of useful information.
The same with tolls, once they're added .. they're never decreased or removed, there should be 'ballot initiatives' that would give voters a choice, but most states do not allow that
Your heirs don’t have to pay capital gains on a house they inherit. The value of the house at your death is used as their step-up value & they will only pay taxes on the gain above the step-up value if they sell it years later. Bob S.
Absolutely correct. If dims get in near-permanent control, that will change. They have to find ways to pay for reparations to those whose ancestors started the African slave trade in the first place.
Thank you.
They Will TAKE ADVANTAGE OF YOU! (HORRIBLE Real Estate Agents) czcams.com/video/UwJFq2pVxVY/video.html
I'm 51 years old and never thought I would own a home. While I don't own a traditional home, I do own a townhome. My dad left me his mobile home when he passed away in September of 2022. I decided to sell the mobile home because it needed a lot of work and it was located in another state. I used most of the proceeds from the sell of the mobile home to buy a townhome. I'm paying about $1,850 a month which includes HOA fees. My monthly payment is still lower than renting in a lot of areas where I live.
Sounds like you put a lot of thought into this. The HOA fees might be the cost you need to watch out for. My Husband and I own a townhouse in another State. We have our property management company pay our HOA out of the rent. Make sure you attend the board meeting and read your financial docs they send you plus updated covenants. I wish you all the best for your future. Take care.
Also add the cost of a car, gas and maintenance if you are buying a new construction further out of the city. Not to mention the stress of commuting on American freeways!
You don't want to pay property taxes but you expect to use the house in front of your driveway to navigate your car somewhere? Who pays for that? You also want to be connected to city services like water sewer electrical? Who pays for that? It's fine to have no property taxes but then you're going to have to pay a road tax the minute you leave your driveway. Would you prefer that?
I think the answer comes from shifting the cost of your expenses to someone else. For instance, single family housing advocates have been very successful in getting government housing subsidies via government housing loans, and using urban sales taxes for suburban roads and other infrastructure. Even driving is heavily subsidized; drivers don't pay anything close to the actual cost of road infrastructure.
Single family housing + car infrastructure + housing/car insurance is just really expensive. Most house owners have been shielded from such costs because government handouts and policy have shuffled those expenses to people who don't own houses. However, since about the 2000's, when house owners exceeded every else, there's not much choice except to hit homeowners with the actual cost of single family housing ownership. This wouldn't surprise an economist, of course, but it comes to a nasty shock to people who haven't recently looked at their local government's income/expense statements. Owning a house and driving is increasingly expensive and Americans are realizing they can't afford to.
my mom and dad have been in their home for over 50 years. the neighborhood or at least the people there all have changed as well. The next door neighbor is a renter and that home is owned by a corporation. the house on the corner is a renter. the other side of the block, there are 2 airb@b homes and a rental behind my father. All those homes off the market for decades. you wonder WHY there are no homes? Rich people buying them and corporations buying them. Future looks bleak for the young.
@1:45, when I started buying my home, I made it a point to get out from under PMI, and get to a 20% LTV, then refinanced into a 15 year mortgage, and made extra payments.
You didn't need to refinance and pay refinance fees. You could have just paid more each month on your mortgage.
I agree with everything you just said!!! Since I was 18 I knew i wanted and needed to buy a house! It is forced savings. I know so many older people with nothing to their name except social security income and their equity!
Also yes taxes and the bank own it before you do!
And yes if people rent for less and don’t invest, they’re making a huge mistake!
Somehow some way we have to provide for our future older self! No one wants to work forever!
It was true only because of the price they bought their house at. It would not be true for someone buying today. They essentially profited from living for free and kicking the cost down to future generations, and I doubt that can last much longer
Eventually, things will change. Couples have to work together and save save save and buy below your means. You can't go out to dinner constantly and buy exspensive cars. Houses have definitely gotten expensive but people don't want to make sacrifices.
My future is so bright i gotta wear shades
Where did you see home prices coming down?? ?
Sorry Michael....renting is the Pitts. The name of the game is (and with creditors)is "Stability"! Good old fashioned stick build, stand alone Home 🏡 and you know it.
Good point.
Here is the bottom line from one who has rented and one who owns. A renter has a carefree life. Oh the stove is broken, call the landlord, the heat went out, call the landlord, have noisy neighbors, that's life, no pets allowed. Move whenever you want. Own a home, oh need a new roof that's 14 grand, kitchen and bathrooms outdated and need remodeling, do you have 40 grand, pay property and insurance. Get the point? Don't let anyone talk you into buying if you want a more carefree life style, own if you want a refuge from the everyday pressures of life. Maybe a little to philosophical but reality. Happy New Year!
Equity is reality too.
I have a ton of equity in my property I owe 124,000 it worth 800,000. I don't use my house as a ATM. I'm in Calif on 5 acres with a shop and horse barn...house is on the market for 785,000
Property taxes pay for local services such as police, fire and schools plus government bureaucrats.
thats a lie ` most cities are for profit corps who have 2 sets of books...tax money is going into the world markets....
Property taxes pay for local services such as police, fire and schools plus LOTS OF government bureaucrats. (fixed if for you).
the house prices will go down because mortality rate increased by about 20% in 2023.. and it's going to be much worse - as per Edward Dowd data
Mortality rate increased by 20%!?
But that takes generations to have any real impact. And when it does start to matter, builders stop building to counter act it.
The only thing that can have an immediate and huge impact is a large amount of unemployment. And even that can take 1-3 years to have an impact. And that is IF the government doesn’t get involved, which after what we saw during Covid, is never going to happen.
People would be much better off just accepting reality and improving themselves as needed to meet the market.
Doing nothing while you pray the market crashes and/or the government becomes your savor with affordable housing, is a complete waste of time.
People are only going to be able to afford tiny houses. They are doing a new tiny house development in our town. $105k per tiny home (in so cal).
That sounds good. Very creative.
I have a good friend. That built his dream home in gulf breeze Florida.. 1987. A couple acres a 2 car garage and a 5 car shop .. 168k. Back then .. today they are forced to sell ! Now it’s a multi million dollar property!! He is a retired military person…. Taxes he can’t pay. He doesn’t want to sell or move !!
Good friend? You’re horrible friend telling his business.
That is sad when that happens. Prices are getting so out of hand.
@@LL-wu8zt well. Put it where it belongs…!!
Quality report. I am a pretty good thinker but you make me think more. Thanks.
THANK YOU MICHAEL 🌴❤🌴
Happy Holidays, Michael. Great observation and advice, good brother. 👍🏾 ✅️
Corporations are taxed. When the courts said that corporations are persons, the inverse in true...Persons
are corporations. Very clever.
It is what it is, we all have to live somehow, if you want things in life nothing is for free. If you make alot of money the price of things shouldn't effect you as much unless your bad with your finances and want everything. I needed more money years ago so I worked three jobs and saved as much as i could for the future.
Rent inflation has been extreme over the recent past and is still raging, 6% in the last 6 months, what will rent be in 30 years. A fixed rate mortgage will be the same amount per month, for the 30 years you are paying it off, Big Plus. Long term owning is the best choice if you *can afford it* . Note, Houses are more expensive where people want to live. Note the Renter is paying the property tax and maintenance even if its not itemized. Good Luck!
To me, the biggest advantage of home ownership, is the security. The first home we bought, was right after Hurricane Elena in 1985, when the duplex we were renting was heavily damaged and there were no rentals available. We were lucky that we had saved plenty of money in our rental, because we were forced to buy (at 10 per cent interest rate) just to have a place to live. Years later, when we sold our second home, and moved to a new city, we rented a wonderful house we loved to death (and would have rented for years and would have bought in a second), until we found out our lease wasn't going to be renewed, because the owner's daughter wanted to live there. So we bought another house. At least when you own your own home (as long as you can make the payments), you know you are not getting thrown out.
Spending habits lol. How about the cost of living as opposed to spending habits
Thank you for all your hard work bringing economic reality to us all. Great content as always. Merry Christmas Michael to you and your family.
I bought my $400,000 condo in 2004. Accounting for inflation, that $400,000 is now equivalent to $638,000. Prior to the increase in mortgage rates, 2 units sold: $515,000 and $535,000 in a “Hot,” low-inventory sellers market. Where’s my “investment?”
good question.
That must be one hell of a nice condo.
You probably bought near the top in 2004
If he makes $80k/year ($50k after income taxes), how on earth was he approved for a house with a $6k monthly payment including taxes/insurance??!!! That’s more than 100% of his income going towards his house!
Allodial title. That's real estate free and clear of even government assessments and eminent domain. For a short time in Nevada it was available, but it involved prepaying a bunch of property tax.
still available --- you must file the right paperwork and fight for it.....
I have been saying this to husband. We own nothing.. NOT even our cars. If we dont pay tag, registration, insurance we cant even utiltize them?
I used to think that the thing about "you will own nothing and be happy" was something a fanatic would say.
Now I think it's true.
People don't even own their music anymore (it's all stored in the cloud). Every electronic equipment can be turned off remotely.
Like the Teslas that have features that can be turned off and on by the manufacturer.
Merry Christmas and Happy New Year Michael and Lisi!!! Thank you for continuing to educate us and bringing solid discussions!
Happy..lol happy ? Have you been outside lately
@@shadowbanned4days
How rude
@@adriaba790 huh,?
Spot on!! Middle class is getting hammered.
In 2012 I borrowed $310k at 3.625%, monthly payments are just under $1800. The average rents then were below that, and now rents are typically $2100-$2500, so over the long term I’m saving in rent costs. Like you say, I’m investing the savings instead of maybe paying the mortgage down
Best thing I ever did was buy a house in 2010 for $392k @ 4.86%. My mortgage with taxes/insurance was $2400 compared to the $1500 2 bedroom I moved from. At that time I received $8000 Obama home credit and $30k from a down-payment assistance program in my county.
I drove an economy car, did not have cable or internet and used rabbit ears. Furniture was from Craigslist and sofa was left over from old owner. We hardly went on any vacations. Even though things were tight we were not in any debt and were still happy because our basic needs and then sum were still met. Sure we had to sacrifice in certain areas, something I noticed alot of the newer generation are unwilling to do.
Fast forward, I refinaced @ 2.62, and my mortgage is $1600 now. I dare not pay of the loan, and instead keep extra money in the bank making 5% and some into investments. We are living comfortably and still within our means. If we would have still been renting we would have been paying close to $2200-$2500 with no equity to boot. House has appreciated about 250k.
I had a coworker tell me in 2007, I should buy now because house prices will continue to go up. I did not buy at that time because in my heart I knew I would have been overpaying. Then 2008 housing crash happened. So moral of the story is timing is everything, and I would nit be buying a house at the current market conditions.
@@SchoolOfLifeEducationThe time and money spent on maintenance and upkeep really don’t get mentioned when comparing renting versus owning! It just baffles me that so many people don’t think costs like the dozen hours a year/hundreds of dollars just to get the gutters alone clean, should be part of the math.,
Thanks my friend I watch all the time thanks again
Michael I was watching this reventure Consulting guy on CZcams talking about Homes purchased by investors across the country. He mentioned Sarasota where something like one out of every three homes is an investment property from the mega rich
I have a friend whose home is now worth less than both what she paid for it, and gor all the equity she borrowed against to keep her business afloat. She barely gets by every month and now has to deal with the consequences of knowing that she can never sell the house because she owes too much on it.
You’re an awful friend… telling her business. What are you doing to help?
That’s on her
Excellent info. Based. Lots of common sense. I am going to plan a road trip through Florida in February I think since we do not want the hassles of flying anywhere.. Any itinerary suggestions? Thanks! PS: Soon, you'll have 150k subscribers. Keep up the superb videos.
You gotta love Michael! He is giving us some real knowledge, thank goodness I found his channel! Real estate is a liability not an asset, unless you pay cash.
Thank you.
Merry Christmas Michael!
My brother is getting ready to put his house on the market in Atlanta. He and his wife have a small two bedroom (possibly could be three) house in the Ponce-Highlands area. They bought it last January. They have a one year old and now want to move to Alpharetta, GA, due to crime (four shootings within a one mile radius) and lack of friends for their little boy. We did find plenty of houses available in their price range, BUT…they have to sell (or rent) their current house first. We shall see how this all shakes out!
Client of mine just sold one on Highland Avenue for 1.3 million in five days
They said that their next door neighbor's house is worth 1.5 mil. I hope they are able to sell their home soon and get what they want. @@ihave35cents95
Bought my house at 28, 5 years ago for 220 and refinanced to 2.5, 2 years ago. I think I'll just hand this down to my kids if this house is still standing lol 😂
Thanks Mitch
My professor told me this back in 1997! You will never ever truly own your home.
You owning a home like cows farting is destroying the Earth. That's where it's going
They tell you cow farts are destroying the planet so you dont ridicule them for flying around on their private jets. You need to figure out how to afford an electric car or get around on an electric scooter. No double standards going on.
This point has been something that really bugs me. I’m 68, and I worked very hard. My Husband and I worked to pay our mortgage off. However, we still have to pay taxes and insurance. We are getting solar soon because electricity is getting expensive. We feel blessed. But it does bug me to have property taxes. HOA’s are another pet peeve of mine.
I am 66 years old and my husband and I built a home in 1990 and managed with doing lots of OT and making other sacrifices paid off our mortgage in 1998. Are you aware that your property taxes pay the municipal employees of your town like the teachers who educated your children, the police who keep law and order, the fire dept. that saves lives in the event of fire, injury, or illness, the trask collectors that pick up your trash, etc. And your home owner's insurance will pay for your roof getting blown off in a storm, or if your house burns to the ground will pay to have it rebuilt. If you do not see the value in what your property taxes and home owner's insurance you may be better off being a renter, but do understand if those costs go up your landlord will pass them on to you.
@@nightengale2123 Oh yes! I am not against people getting paid. But how about this: Let us think about a compromise here. Maybe do a special category where the taxes of senior citizens are lower than the rest? How do you feel about that. By the way, my Husband was a Prison Guard so I do know taxes paid his salary.
Senior citizens exempt from land taxes
@@Kuulei265na keep paying. Someone else is going to have to pay if you don’t.
Be very aware where you are buying your home. The property taxes in a city’s city limits will be close to double than if you buy in the county or just outside the city limits. About the only thing you have to pay for living in the county is your trash pick-up ($15/mo.) & maybe a little more for gas if you work in the city limits. Bob S.
I can confirm that. I live in the country and don’t have trash pick up but the dumps are free for residents So if I have to make a dump run 10 times a year so be it
My friend has watched his houses value go from 350K when he bought it back in 2000 go to 1.5M last year. He has to deal with people aggressively knocking on his door daily demanding he sell. It has resulted in the police coming to his house at least a couple times a month to physically remove belligerent buyers that have been incredibly aggressive about him selling to them. His house is not for sale nor has he given any indication he wants to sell. He does not understand why they are so aggressive about it. He has told everyone who comes to the door he is not interested in selling and to leave him alone. People actually get mad saying he needs to sell to them. They act like they are entitled to the property and he is being a dick by not selling it to them. What is scary is one time he was forced to call the cops when two different developers tried to start a bidding war and got into a fight on his front lawn a few years back. The housing market is just nuts. Not in the USA but in Canada.
@3:06, yeah well, that MAY BE. The fact is you'd much rather be paying property taxes than throwing rent $ into some landlord's pocket! Love your videos Michael!
@@arigsd806can you give the tittle for this video so I can find on his channel?
Thanks, Michael!
Yah I never understood the whole taxes on the property. To force you to pay out for the community schools and road repairs ect. With inflation and the cost of living..does allow for one to set money aside.
Well now, retiring to mobile home life is looking good…
I've been following real estate in Northern GA, TN, & SC for the past year. Even "old", need rehab mobile homes on less that an acre of land, going for $300-$400K. Ridiculous Prices.
Property taxes are unconstitutional
We never own the land. We're just leasing it. I've come to terms that I own my home and rent the land from the county. Forever. I think we have to understand the concept of how it all came about with land when homes are built on them.
The costs of building materials and fees act as a weight vs new construction being able to increase housing supply.
The reasons people have to pay property taxes are multiple. Road, bridges, etc, need to be constantly maintained along with many other forms of infrastructure we all take for granted. In my state, schools offer pre-kindergarten through 12th grade are also paid for with taxes. Take all of these things and more away, and you cannot function in the world.
It depends on your location and usage needs. If you need space, in most places, buying a house is more cost effective than renting. If you do not the renting maybe a better choice.
80K at 4K rent isn’t even possible. 130K at 4K rent is poor too
Now that I am in my early 30s. And am on track to retire at 55....I tell my friends and family not to buy a house. At 32.... if I didn't buy a home at 25.... and the prices of houses, taxes, and insurance....and I'm 30 plus? Why would you buy a home? You are basically going to be paying on it until you retire. When your 300-600k plus money could be better used in the S&P 500. It's 52% cheaper to rent for a reason.
@arigsd806 I don't and I'm not. That's why I ask people why buy a home after 30-32 years old? (Right now) even if you had 20% to put down? It's 52% cheaper to rent, and you can invest long-term and make 4-5 times the money.
The only way new home prices can go down is to build smaller houses that take less material. Construction labor has gone up as has all the materials needed. You can build a larger home but the only way to keep the price down is to use cheaper materials (cabinets, appliances, countertops, floors, etc.) That's the only way.
Or have a depression, deflation, drastically reduce government spending, balance the budget under, and remove 10 trillion from circulation.
But deflation is bad for the economy because people stop spending. For example, I don't want to pay 350,000 for that house when in 3 or 4 months it might be 340,000. That is how deflation slows an economy. This is why the feds always strive for a 2% inflation rate.@@Enlightened2Truth
Communities need to get together and agree to stop paying property taxes
Lol...... At least I know where my local property taxes go and I see improvements in my community. How about federal income taxes that take half your paycheck and go to foreign countries and gender studies?
Vote it in .
@@HomesonLocke repeal those too
Excellent Video Michael.
The problem is real estate is up 100% to 250% where I live. My wage did not go from $30/hr to $60-$75/hr.
I have 100 percent equity in my house i couldn't afford a house these days especially where i live in California i wouldn't be able to afford it.
That’s how normal home ownership goes. Inflation outstrips income.
That’s why you buy, to put that inflation in your own pocket.
If it wasn’t for that, there would be no financial incentive to buy.
Damn. It finally happened. Walked right by my place at 2:50. One of these days I'm gonna catch Michael in the wild.
lol
And rob his 🕶️
Im not BUYING until PRICES come DOWN
That 1 in 11,688,053 chance of winning $1 million in Powerball to buy a home never looked so tempting
Yes. 1 in 11,688,053 chance is better than 0 in 11,688,053 chance if you don't have a ticket.
The odds are '1 in 292.2 million' , good luck with that
Crossing fingers. These other guys are clinging to that life changing $2.
@@mangodiet801the op is talking about winning 1 million, not the grand prize.
So 5 of 5 numbers without the PB number.
You are talking about getting all the numbers correct, including the PB number.
@@AJourneyOfYourSoul 1m is chump change these days
How much to put into one's house? I'm in a comfortable situation and am planning my last move. I'll put a third of my wealth into the house and keep the rest invested.
Property-taxes? I'm sticking with my view that increases should be limited to the infltion-rate targeted by the Fed, for as long as the owner stays there.
First time watching you that I have seen people walking by. Also, I noticed in your videos that there is very little car traffic. I've been watching since you were on the road awhile back.
And don’t forget about your third landlord insurance, and in Florida that’s going to be a big deal in the next few years especially if we get some big hurricanes