4.5 Million People Bought Homes Last Year (Here's How)
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- čas přidán 5. 03. 2024
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About this episode:
If buying a house right now feels about as hard as a Nature Valley granola bar, how were 4.5 million homes purchased in 2023? In today’s video, find out the one thing most buyers did last year to land their home.
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To my own research In USA, individuals living in cars due to partial homelessness result from a complex interplay of factors. High housing costs relative to income, stagnant wages, and income inequality drive this issue. Job loss, weak social support, medical expenses, evictions, and lack of affordable housing also contribute, while systemic problems and inadequate policies further perpetuate the phenomenon.
Considering the present situation, diversifying by shifting investments from real estate to financial markets or gold is recommended, despite potential future home price drops. Given prevailing mortgage rates and economic uncertainty, this move is prudent, particularly due to stricter mortgage regulations. Seeking advice from a knowledgeable independent financial advisor is advisable for those seeking guidance.
I've remained in touch with a financial analyst since the start of my business. Amid today's dynamic market, the key difficulty is pinpointing the right time to buy or sell when dealing with trending stocks - a seemingly simple task but challenging in reality. My portfolio has grown by more than 5 figures within just a year, and i have entrusted my advisor with the task of determining entry and exit points.
nice! once you hit a big milestone, the next comes easier.. who is your advisor please, if you don't mind me asking?
Well, there are a few out there who know what they are doing. I tried a few in the past years, but I’ve been with Melissa Terri Swayne for the last five years or so, and her returns have been pretty much amazing.
Thank you for the information. I conducted my own research and your advisor appears to be highly skilled and knowledgeable. I've sent her an email and arranged a phone call.
I bought a home June of last year. It’s not entirely what I wanted, but I’m in a great city/location and I’m overall happy. How I did it? Well…. I lived with my parents rent free for 2 years lmao. Not everyone has that luxury.
Not everyone has that luxury and not everyone has to follow that exact path. There are other ways to do it.
Good for you. I told my kids they are welcome to do that with me when they graduate from college because the real estate market was already insane when I bought my first house. Renting in Northern CA is very annoying right now. It’s around $3500 in the suburbs.
I finally bought my first home in January - no not everyone has that luxury and my parents both died by the time I turned 20 so it's not like I inherited much either. I prioritized location and was ok with something less nice.
How come the best time to buy a home is always yesterday... just shows, how stable of an asset it really is, if used right
In long term, but that isn't always true (see 2008/2009 crash)
If you are in it for the long game, and can afford the mortgage, generally the right time to buy a house is always now. But there are those short term glitches like 2008 GFC, or buying with silly low interest rates and sky high prices end of 2021. What I tell people though is that if you anticipate a storm, can weather the storm, and are playing a long game, you'll be fine.
I purchased in 2016, budgeted for up to 9% interest and paid as much as I could off the mortgage. Rate hikes were a long time coming , and I budgeted to weather a storm so I'm doing fine.
tell that to anyone who bought in 2008.
The math on the February 2023 mortgage is wrong. To get down to $1,211 would require an interest rate just under 3%. Not just under 6%. At just under 6% we are talking a monthly payment of arround $1,725 on 80% of $363,000 ($290,400).
Same.
Yeah to get to $1,211 per month it would’ve been less than 1% interest rate.
I bought in August of last year year! Very grateful to be in the position im in. No doubt this market is a mess!
You dragging rogen like that made you one of my heroes! 😂😂
Where can I get one of these mega backdoor double reverse mortgage alley-oops?
The very end is such an important point! History tells us that houses will be more expenses 5-10 years from now than they are today!
I got a home recently, and I got a great deal on my buy down rate- a couple thousand dollars to take it from 7% to 6%. The pay back time was like a year
Unfortunately in alot of areas in order to buy a home at a 15 year mortgage no more than 25% net pay the down payment wouke definitely have to be way more than 20%.
I've also seen people say getting a older home thst needs work but thats dumb if you have a house that needs work just so you can afford the payment what are you going to do when the house needs regular costly repairs??? Home warranties don't cover but so much and the rest will be you bleeding your savings account or credit limits.
It sounds good but not realistic unless you have a huge down payment or make way more than the average household.
Wait! American Ninja Warrior course in your back yard is only supposed to be a phase!?
We bought a new construction home in Dec 2023. Builder bought the rate down to 5.5% for the life of the loan & paid all closing costs with lender paying a $2,000 incentive. Yes our payment is higher, but we are in a better district with a house we plan to stay in for 15 years & will have paid off before retirement. The only way we were able to buy it was because our old home sold so high.
We close on our house tomorrow! My first house, my husband’s second. We did all of these! We bought down some points and the seller is paying $7500 out of our $8500 in closing costs. We bought in a great location in a great neighborhood, but it’s a 20 year old house with some renovations needed. But that’s okay bc we can save up over the next couple years to get it fixed up! We saved aggressively for our down payment for the last few years and are putting $47k down. And in a few years, we can probably sell it for a good profit and buy a house with cash! The interest rate is crazy but we can afford our monthly payment so no big deal. We are tired of apartments and my husband can’t wait to have a two car garage and dog can’t wait to have a backyard lol
Im trying to buy house number 6 right now. Yes I have 5 houses. I been looking since 2020 and almost have enough saved to pay cash if the housing markets crashes a little. 200k
George, your numbers on the mortgages from last February compared to October are WAY off.
$290k at 6% over 30 years = $1,738
$320k at 7.7% over 30 years = $2,067
It is not a $1,000 jump like you suggested
For the second home I don't think he included the down payment. Very misleading
I bought a house last January. All I told my wife, fiancé at the time, was it had to be under 25% of our household income. We had spent the previous year paying off all my debt, including selling my 2018 Ram 1500. That was painful. Yeah, we looked at a lot of new builds, but they were too expensive. It’s nice to dream. It took 6 months of looking but we found a flipped house that was built in 1983. We offered $25K over asking and declined $10,000 in closing incentives due to multiple offers, but we got it. Now the goal is to have it paid off in 7 years.
With you until you said special programs for down payments show you aren’t ready for a home. As long as the requirements fit within your life goals it’s just free money. Vhda helped us get a home and now we have tons of equity in our home and we wouldn’t have any of that if we waited to save up the proper amount someone thought we should have. The payment was never close to our monthly earnings it ended up being less than our apartment rent with zero down payment. This was 2016.
Same here, he lost me at that part as well. As I'm looking into some programs to help me with a down payment, if my folks aren't able to help gift me some money. It bothers me that trying to seek some kinda help, that doesn't require a loan, as "not ready".
Own a $250k small house here in NJ for our family of five. We are down to $170k after 6yrs. We started last year doing bi-weekly payment and add extra $3-4k every month. Expecting to pay off the balance for 3yrs. Sell the house to gain profit that we will use for the DP or might stay and enjoy not having a mortgage.
Here in Ontario Canada you will never find a 250k house lmao.
@@jordanfoslett4112in that case you should think about moving. The area where my husband and I are currently living is way too expensive for us to buy somthing. But only a 45 minute drive from here, the homes cost around 200k less. (300k compared to 500k+) Don't make the mistake of thinking that you need to live in a city. If you speak english, you can even think about going to a different country entirely.
A 30 year mortgage with extra payments is much more reasonable than a 15 year mortgage in this market and at these rates.
In Connecticut there are houses there houses there are around 250,000 and some as low as 200,000 however, the house will need a lot of work not just cosmetics. I am talking about foundation issues no walls roof issues etc. not to mention that some of these houses are going to be in the hood
i would do unspeakable things to own a 250k house. where i live, even a 1200 sq ft fixer upper is 450-700!
The parents helped out with the down payment.
I don't rush in life..... take my time to find a good deal , and i keep investing without stopping...... buy a house when im ready and live my life happy .... why stress?😅
Amen
Calling gifted funds from family "creative financing" 🤦♂️
You put a clip of Dude Dad!!!! He’s hilarious!!!!
Thanks for the great video George! Can you talk a little more about why you all at Ramsey don’t recommend a 30yr fixed? For example, if you have a growing family and need a house (vs an apartment) and you expect your income to go up over time, why not go for the lower mortgage of a 30yr and then as your income goes up, pay more towards the principle each month? I’m thinking if you stuck with that plan you could still pay it off faster than 30yrs…maybe even in 15 if you’re diligent. Thank you for considering my question.
Ps…I love your videos and if you ever need an extra freelance video editor hit me up! Gotta get my side gig rolling again. lol
Because you pay over triple the amount of interest over the term. 15 years put a lot more money early into principle.
Agree! I had a 30 yr fixed, but paid it off in 5 years… when I could pay more I did, but when things were tight (ie pandemic) there was less pressure to pay that higher payment every month.
I think it's also because if you give yourself the option to delay the payment by doing a 30 year you'll probably put less each month towards your mortgage, for the average person at least.
EXCELLENT CONTENT
It's a good idea to do some homework before buying a new build. Has the HOA been acting in bad faith? 85% of all new builds are associated with an HOA. Have the current homeowners in the neighborhood had structural issues with their homes if all houses in the subdivision were constructed by the same builder? Builders like D.R. Horton have had TONS of complaints over construction quality issues.
Kamel Kamel Kamel!!
Love the team and information. 8 months to go 🤞
Don't be house poor. Buy a house you can afford. When you think small, cheaper taxes and a lot less to vacuum.
Don’t expect the seller to help you buy down the rate, especially in the current seller’s market. VA buyers for some reason also expect the sellers to cover closing costs, but that’s ridiculous, unless the seller is desperate. Careful with builder buy downs. They usually reset higher over time. At least you’re in a house with the opportunity to refi. Lastly, a 30yr loan is ok for first time buyers. A 15 yr is great if you can afford it and have money left over for monthly investing. Realistically, the 15yr is a refi product and is used for purchases in less than 5% of all financed transactions.
Im currently making out like a bandit.
We listed our condo for a high end of its assessed value but 60k cheaper than anything else in our surrounding towns.
We got 1000 Zillow views in one day and had our first formal offer 14 hours after listing. Now we're just sitting back for a week and seeing what the best clean sale offer is.
Why you gotta do my boy Seth like that 😂
I wonder how many of those homes were purchased on a 15 year mortgage? Lol
Love that dude dad made it in the clips lol
I think what hurts the most right now is the prices of condos and townhomes are as expensive as a house if you include HOA with the mortgage.
Yup. I bought my condo in 2022 and my HOA fees have almost doubled since then 😬
I envy you guys in the USA. Interest rates went up from 6 to 7.5? Phhhh, in Russia interest rate went from 12% to 20% in a few months last fall.
2:05 needed the "dad joke" graphic
More Mr Krabs clips please😂 MONEY MONEY MONEY
The Seth Rogen laugh was perfect 🤣
My builder lowered our rate to 4.75 in this economy in 2023
We bought our first house last summer and everyone kept telling us not to because the prices had peaked and there was an impending collapse. Comp rates according to Redfin have gone up almost 1% per month since we bought. Buy a house because you want to live in that place and it fits your projected needs over the next decade at least, not to make a return. Buy stocks if you want an investment.
Hey George! Me and my wife are currently in Baby Step 2, any chance you are doing free giveaways for your book anytime soon? Love the videos, keep up the good work! (:
I’m one that bought a house last year, and have not seen anything comparable since. If I tried to buy a similar house now, it’d be at least $50k in my area.
Good tips!
Yeah. Be really careful with that point buy back. If you have a good mortgage lender, they will help you with the math on your best choice. Sometimes, asking for concessions from the seller doesn't actually pay off. Because you may have to bid the difference. So you bid 320k, but want 5k back in concessions. You're really offering 315k. If the bottom asking price is 320k, they may counter or reject your offer. But I typically do this. Usually, the payback period is around 1-2 years from my limited experience.
And yeah. There's no shame on renting. Home ownership is a lot more expensive than you think. 1k rent vs 1k mortgage is really more like 1k rent vs 2k+ mortgage, taxes, monthly maintenance, improvements, and opportunity costs because now you can get that jet ski you've always wanted. In some cases, you'd be better off financially by never buying a house.
Have you thought that maybe a lot of them are buying houses they cant afford with not a ton of money down?
Yes! He tells folks not to.
3:45 for my reference
Buying a house seems impossible with scary price tags. Hopefully one day I can get a decent one for a decent price.
4.5 million suckers that overpaid.
People need to do the math on transportation costs too. Buying a cheaper home in the boonies often doesn't pencil out it doubles your commute. Transportation is the usually the second biggest expense in people's lives, but they often fail to appreciate the long term consequences. Rough rule of thumb would be 10-15k per mile of commute over 10 years. i.e. You'll come out ahead paying 100K more for a house if it's 10 miles closer to work after 10 years.
❤❤❤
Hmmm. So whilst I’d LOVE to hope the rate reduced back to 2% or less. However, we unfortunately can’t compromise on location. We also don’t want to be one of the many who buy a terrible home and spend ££££ to renovate then regret it and wish they simply waited. Affordable mortgage rates sounds lovely until you add tax, maintenance, bills, ground rent (is it’s a leasehold which is lost apartments). It all adds up and drowns you.
Never would I have imagined the Ramsey team would ever suggest rate buy downs just to get into a home…
They're even saying less than 20% down is okay!
@@jacobawojtowicz I agree, never heard Ramsey start talking about anything less than 20% until very recently.
I never suggested it. I was simply saying it’s something people are doing. And I explained the break-even
They learned the insider tricks of the trade from Jennifer Beeston.
4K soon?)
His numbers are misleading. I have a 300k mortgage and I have to pay 2200 a month to own the home.(principle+interest(3.25%)+TX property tax). That is the real cost of just owning a home.
This is a really stupid time to buy a home. Prices are super high, interest rates are super high, and it is NOT free to refinance. Wait another year or two!
How many of those were new home owners. Were some of those downsizing?
✝️
Don’t…end video
5:46 I DRIVE A DODGE STRATUS!!!!
Easier to buy a house if you make 250k…
But that’s triple the average salary
I see part of your trick George, when you compared what interest rate changes do you included the rising average house cost whereas you should have just shown what the rates do on the same number. Good stuff otherwise though.
Suggesting a 15 yr is contradictory. A 3-6 mo emergency fund isn't going to help you when your mortgage is almost double a 30, and you lose your job. Get a 30, pay it like a 15, then if life goes sideways, you have some additional breathing room.
A 15 year isn’t almost double a 30. A 300k mortgage at 7% for 30 years is $1996 a month. A 15 year is only $700 more. That’s only 35% more.
@@jvan927 Fair enough- I knew it wouldn't be double - my point is that $700 provides significant wiggle room if someone loses their job. Thank you forvthe actual math tho!
Hey! I LIKE the boonies!
You aren’t sorry for that pun George, and you shouldn’t be 😂
"If history tells us anything, houses will be more expensive 5-10 years from now than they are today, so if you're financially ready, do it now". I guess the rest of us who can't afford houses now are just screwed huh?
Even empty lots are inflated.
My 1st house exploded, I never rebuilt, took the insurance payout and bought my current home now the lot is going for 5x what I paid in 2016.
Disingenuous take.
Most of these weren’t 1st time buyers but instead older people who had massive equity in their homes and sold off to migrate to lower cost areas for retirement, investors or flippers buying up rentals or rehabs.
For young people to get a home in this economy, they either need to live at home expense-free with a solid income and stack their money, be a dual-income household, or each make six figures while living in a low cost area which is hard to come by in itself as you’ll either have a longer commute or take a pay cut which eats into your budget.
Without having some level of support from family or friends buying your 1st house in today’s market is a real long shot.
I live in the hood. That's how I became a homeowner.
💯 2 out of 3 Friends who own bought before the pandemic AND their parents helped them with the down payment or the loan. I am planning to save up a massive down payment (if I even buy), because the only way I can afford now is in shady ass neighborhoods. I’d rather pay more for safety and sanity.
The secret..... dont
🤘
4.5 million houses were sold to corporations
I wonder how many of those homes were purchased on a 15 year mortgage?
A 15 year mortgage is a bad idea
Most people cannot afford the extra high payment /
That’s why at 30 year mortgage is best : I’m looking to buy this year
Single-family/My Plan-
Debt free
Solid down payment
30 year mortgage
Conventional loan
Sorry george, you must of cheated to pass math class, cause your mortage example math in this video is WAY off!! It caught my eye when you said a house that cost almost 200k more than what we paid for our home 3 years ago, with an interest rate that was almost 4% higher than ours, had a payment only about 350 a month more than ours.... something didn't click...
I'll just keep spending my money at the ritz carlton and living in my shitty $400 raggedy apartment 🤣
Growing up I remember seeing the nicest homes in our town going for 250-300k, the same cost of a new ferrari. So in my head as a young kid that made sense you can have a big house for 250k or a ferrari. Now houses are 500-700k yet new ferraris are still around 250-300k based on model.
What is success in your eyes? Having a home or owning a ferrari?
I certainly know what'd get you more 🍑
No they definitely cost a lot less.
You could get a brand new construction home here in Sarasota County, FL for
Hard Pass. Townhomes in my area start at$450k and old homes without any upkeep start at $550k. Tear downs are $350k for old WWII stock. I’ll keep investing and saving then move out of the country to a better place where I can build a beautiful home for $500k. New homes are less than 2000 sqft and builders want $700k. Nope.
It's not that soft.
doesn't matter george ... the perpetual victim class will never believe you
Hahaha keep living in La La Land Ryan Gosling 😂
The economy sucks so bad young people are reaching life milestones like buying a house later than the previous 2 generations despite doing exactly what they’ve been told
But keep your head in the sand Melman 🦒
@@15KHPCLUB
Terrible editing. Stop with the constant jump cuts to interrupt with a joke. There is no flow.
That's kinda his shtick. sounds like you might just not like his content, which is fine. But this is what most people are looking for when they watch his videos.
I like it but I think it’s excessive.
Many of us enjoy it. Make your own boring ass content then.
@@Brandon_Neil I disagree. It comes across as trying too hard.