Renters REGRET Becoming Homeowners
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- čas přidán 29. 08. 2024
- Former Renters are regretting becoming homeowners. Why? Because they weren’t prepared for exactly what it would cost to own a home and now they want to go back to the simple life of renting.
Real Estate witch, a website that does surveys on real estate and homeownership has discovered something very disturbing about how many people wish to go back to renting vs owning a home. They also shared the true cost of homeownership in 2024 and some of these stats are pretty concerning.
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Jacqueline "Jackie" Baker
NJ License 1541448
Coldwell Banker Realty
Allendale/Saddle River
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90% of Homebuyers REGRET Buying Their Home ➡czcams.com/video/ofkBssr6iUU/video.html
The people in some of your examples seem to have possibly either waived their inspections, or being first time homebuyers gently, ignorant to the responsibility of purchasing a home and understanding what you’re buying.
People may start out being able to afford the home. But the expenses keep going up up up, esp. Taxes.
Regarding taxes, I know for a fact that over 70% of my assessed property taxes are allocated to the school district - that's a fact.
If you can't do most repairs, improvements, and maintenance yourself you are probably better off renting. I pretty much do everything myself and have saved a huge amount of money for sure.
False.
If anything, it's likely to get worse. Affordable housing will soon become unaffordable. Therefore, I advise taking action now because today's prices will seem like bargains tomorrow. Until the Fed takes more decisive action, I expect we will see hysteria due to rampant inflation. You can't just halfway rip the band-aid off.
In the early 1990s, when I bought my first home in Miami, it was common for first mortgages to have rates between 8% and 10%. It's important to recognize that we may never see 3% rates again. If sellers are forced to sell, home prices might need to drop, resulting in lower valuations. I believe many people share this perspective.
Home prices will come down eventually, but for now; get your money (as much as you can) out of the housing market and get into the financial markets or gold. The new mortgage rates are crazy, add to that the recession and the fact that mortgage guidelines are getting more difficult. Home prices will need to fall by a minimum of 40% (more like 50%) before the market normalizes. If you are in cross roads or need sincere advice on the best moves to take now its best you seek an independent advisor who knows about the financial markets.
How can one find a verifiable financial planner? I would not mind looking up the professional that helped you. I will be retiring in two years and I might need some management on my much larger portfolio. Don't want to take any chances.
Jessica Lee Horst 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..
I searched for her name on the internet, found her page, and reached out via email to schedule a conversation. Thank you.
Back in the day, when I purchased my first home to live-in; that was Miami in the early 1990s, first mortgages with rates of 8 to 9% and 9% to 10% were typical. People will have to accept the possibility that we won't ever return to 3%. If sellers must sell, home prices will have to decline, and lower evaluations will follow. Pretty sure I'm not alone in my chain of thoughts.
Home prices will come down eventually, but for now; get your money (as much as you can) out of the housing market and get into the financial markets or gold. The new mortgage rates are crazy, add to that the recession and the fact that mortgage guidelines are getting more difficult. Home prices will need to fall by a minimum of 40% (more like 50%) before the market normalizes.If you are in cross roads or need sincere advise on the best moves to take now its best you seek an independent advisor who knows about the financial markets.
I wholeheartedly concur; I'm 60 years old, just retired, and have about $1,250,000 in non-retirement assets. Compared to the whole value of my portfolio during the last three years, I have no debt and a very little amount of money in retirement accounts. To be completely honest, the information provided by invt-advisors can only be ignored but not neglected. Simply undertake research to choose a trustworthy one.
How do I meet this advisor, please? I need assistance investing my divorce settlement because it's now sitting in the bank earning little interest.
My licensed adviser of choice is Sharon Marissa Wolfe. Just look up the name. In order to schedule an appointment, you would find the required information. She is quite talented.
Thank you for the lead. I searched her up, and I have sent her an email. I hope she gets back to me soon.
The issue is that either the renter or the owner must in some way pay insurance and property taxes if they want a "permanent roof" with utilities like electricity, gas and water. Because of this, many people-at least in California, where I currently reside-are living in tents. No taxes, rent, mortgages, or insurance. The number of people who tell me they live in their car that I meet amazes me. Its crazy out here!
It’s getting wild by the day. The prices of homes are quite ridiculous and Mortgage prices has been skyrocketing on a roll(currently over 7%). Sometimes i wonder if to just invest my spare cash into the stock market and wait for a housing crash or just go ahead to buy a home anyways.
I get such worries too. I'm 50 and retiring early. Already worried of the future and where its headed, especially in terms of financies and how to get by. I'm also considering making my first investment in the stock market, but how can I do so given that the market has been in a mess for the majority of the year?
I wholeheartedly concur; I'm 60 years old, just retired, and have about $1,250,000 in non-retirement assets. Compared to the whole value of my portfolio during the last three years, I have no debt and a very little amount of money in retirement accounts. To be completely honest, the information provided by invt-advisors can only be ignored but not neglected. Simply undertake research to choose a trustworthy one.
That's fascinating. How can I contact your Asset-coach as my portfolio is dwindling?
There are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’Aileen Gertrude Tippy’’ for about five years now, and her performance has been consistently impressive. She’s quite known in her field, look-her up.
More and more people might face a tough time in retirement. Low-paying jobs, inflation, and high rents make it hard to save. Now, middle-class Americans find it tough to own a home too, leaving them without a place to retire.
The increasing prices have impacted my plan to retire at 62, work part-time, and save for the future. I'm concerned about whether those who navigated the 2008 financial crisis had an easier time than I am currently experiencing. The combination of stock market volatility and a decrease in income is causing anxiety about whether I'll have sufficient funds for retirement.
This is precisely why I like having a portfolio coach guide my day-to-day market decisions: with their extensive knowledge of going long and short at the same time, using risk for its asymmetrical upside and laying it off as a hedge against the inevitable downward turns, their skillset makes it nearly impossible for them to underperform. I've been utilizing a portfolio coach for more than two years, and I've made over $800,000.
How can I reach this person?
'Carol Vivian Constable’ maintains an online presence. Just make a simple search for her name online.
I checked Carol up out of curiosity and i must say i am impressed by her Credentials. i emailed her already, waiting on her response.
But I pay less being a homeowner. The key is to get a house you can afford.
Some areas have no affordable housing.
That's nearly impossible in this day and age. In my area a shambly piece of crap house is 450k
@@victoria.galvin 🤣🤣that's crazy
Exactly
Really, the key is get a house you can afford? Geez, why didn't anyone else think of that🙄.
I don’t regret buying. When you rent your landlord can raise your rent whenever they want and kick you out whenever they want.
Same here peace of mind priceless
But home owning can also be a money pit that can shackle you to one location. In many instances, raised rent would be a better outcome than a mortgage + homeowner’s insurance + HOA fees + short term and long term repairs + utilities.
I’m a renter in one of the top 3 cities in the US. I also work in insurance - one of the largest companies. Seems to me that all of the homeowners didn’t have their “rent” raised but they all had to deal with MASSIVE and unexpected property taxes and insurance rate increases. The majority can really do nothing about either - so seems similar to the landlord scenario no? Pick your poison.
I, personally, am in no rush to buy.
They cannot kick you out whenever they want.
@@binaryvoid0101 yeah but at least you’re paying yourself. When you rent your money is going into nothing.
Owning a home is a ton of work compared to an apartment. And I love it.... I love maintaining, I love fixing and I love customizing. You're building your life. No longer on the sidelines.
Most people don't feel that way. Most of us want to spend our weekends with loved ones. Not lying on our backs under a sink.
Excellent!
@@roadrunner9622in other words most people are lazy and not willing to maintain things that they purchase
Everything in life needs to be maintained, your health your car your house
Most people desire to have more balance in their lives, where they don't have to spend the majority of their time working. A life where they can truly live and experience life's joys is far more desirable than one where they are constantly working and barely have time to enjoy life.@@scottydiver5114
@@roadrunner9622Fair enough. However, don’t complain when your mind & body is ready to retire but cannot afford to do so.
I'm a single girl and definitely don't regret buying my home almost 4 years ago. I've learned to do things on my own (CZcams is my BFF).
I pay my taxes and Insurance every year...I also plan for the upkeep. I absolutely HATED living in a rental apartment.
I wouldn't change a thing about owning my house.
You are fortunate home ownership works for you. Good Luck
Learning to do repairs yourself is key. 👍
Honestly, I don't understand single people owning homes. It has to be a female thing. I've been renting for more than a decade and whatever I would have paid in taxes, insurance, maintenance, I put into the stock market. I have a net worth of $1M+ and growing and my plan is to relocate and semi-retire in a few years. I'll still be working but won't be in the grind since I'll have passive investment income to draw from. I'll be buying a townhome/condo in cash....
@@Chad_Max You paid all of those things only through your landlord. It is almost never cheaper to rent
@anti-christ.666 until you have to replace the roof,the furnace, central air ( 5 years ago I had to replace the air conditioner it was $5,000.00), plumbing issues ,windows, etc...........
I just bought a home. It wasn't a financial decision because it would have been a poor investment. Let's face it - it's not an investment.
I bought a home because I wanted enough space in the house and a yard for a large dog. I wanted to build a gym with the equipment that I want.
I did it because I'm in a place in life where I can shell out that money out and still be financially secure. I can lose my job and still make the payments and the upkeep.
Thank God for your blessings and having good financial sense.🕺💯
Great place to be, but any real estate can at least hold its value except under rare circumstances, like buying in an iffy area.
@@xekis rich flex
this is the way. don't buy a home as an investment. only do it for a lifestyle choice and because it makes sense to you.
You are indeed blessed.
I have several friends that live in Albuquerque, NM and home prices have increased 35-40% since 10/2020 and they are still going up! Also my niece lives outside Nashville and her house has increased in value by 4K in the past 2 weeks! When will this end?
37% of sellers dropped their prices in Denver over the last month?! Wow.....the crash in the mountain states is officially in motion. I guess people being called back to the office is a huge factor - the WH dream is over for most people.
Well with the ever-changing global economy, tax laws and regulations can also vary, impacting how investments are taxed. It's essential to stay informed and plan tax strategies accordingly.
Also important to diversify your streams of income
yeah that's a good path, focus on a good strategy, relax back and watch it compound within the years. In good time you'll see returns.
No doubt making smart plans and setting up diversified investment portfolios is quite essential.
I love owning my own home, no landlord to tell me what to do !!!!!!!!!!!
Same here. If you put your home on a regular deferred maintenance plan you should be ok. Just as you have to keep your oil changed in your car and maintain the car, people should stop waiting for things to break but have a maintenance list. Things are going to happen and they will cost. Just put aside money and also learn how to do some things yourself.
@@BSOG3 This is a smart move. Unfortunately, first time home buyers dont know this though.
@@BSOG3 house maintenance is complex, but many repairs can be DIY , if you are not able to do it , you better rent.
@@quinquiryrent still bad.
Same. I'm getting into paying this thing off quick too. Principle only.
When owning a home, most people don’t think about the ghost costs. You’ll never buy a house that will never need some small or big maintenance. Also, the homeowner’s insurance and property taxes increase every year.
Since owning a home, I’ve realized that I’m blessed to be married to a man who is very handy and teaches me to be handy.
Utilities are also crazy you could have a 500 dollar bill just in utilities.
@@ryans413 That is true. Utilities are crazy. Because I live within city limits and not on the outskirts, my utilities are what I call expensive for me.
@@ryans413 wow that's fucking crazy.
property taxes and renters insurance increase as well with every lease... its just that its included in the rent.
@@user-ko5ng3lm1z That is true.
Being a homeowner has its challenges, but it beats fearing the possibility of being suddenly homeless due to your landlord being greedy in the middle of a lease.
A landlord can not increase rent in the middle of a lease unless it's month to month. Tenants have the the option to sign a lease for 12 months or more to lock in their rent amount. Heck, they can even haggle, if they want to increase $50, tell them $25. It's very expensive for a unit turn over and the landlord knows that.
@@shawnn6926 I wanted to say Thank you for the tip, I have a niece and her husband and children, I told them about your comment and they took the advice, now their landlady is not raising their rent 350 dollars, only 30 dollars. Thanks again💐👍🏾
lol bull, that can't happen and you can always move to another spot
I have lived in my house for 42 years. I paid off the mortgage 22 years ago. I added extra $$ to the monthly payments to do it. Folks get house-poor when they keep upgrading to bigger more expensive homes. While sometimes it is necessary to have more space while raising a family or a job transfer makes a move necessary, it is still more expensive each time you move to another home. I have looked at the new apartments recently built here. It has been a long time since I have lived in an apartment; they have changed. Examples: Utilities not included; no covered parking for the car; much denser spacing; higher rents; and negligent landlords. I will stay a homeowner.
I owned for 17 years and now rent. I absolutely love it.
Do tell us why.
@@virginiamoss7045 virginia is obviously a realtor. :D
Why?
Wow. It was enough for me to own for 5 years. I am happily renting as a solo female, working online and enjoying change of scenery every few years with ease. Life is good
I’d rather be house poor than rent poor. You have a little bit of control with your own house, but you have absolutely none as a renter. You are 100% at the mercy of another person as a renter.
@@nogames8982 and paying rent that going to cover another person's mortgage
@@DeborahE7lol is this supposed to be a flex??
@DeborahE7 if you own your home you can move just as easily and just rent your home out. If you're renting you're most likely on a lease for months at a time so moving whenever you want is cool but you still have to pay that lease you signed
@@DeborahE7 if you want to spend your money that way, that’s your deal.
@@DeborahE7 I think my problem with renting is that they can just arbitrarily raise the rent on you at any time. Or decide to sell the property and you’re out on your ear. That’s the kind of control I’m talking about that you do not have. yes there are some laws in place but you’re still not protected that much.
I bought my house in Texas in 2022 at the peak. I do not regret. My 30 year fixed rate is 3.50% and I didn’t have to repair anything even though I bought the house 100% online and only saw it for the first time a month after closing. My partner did the inspection online with the realtor (ie we waived the inspection). I am very happy with my purchase. My mortgage+property tax+insurance is less than my rent in NYC. And I have my own backyard.
Same here when I compare it to my son's rent in NYC. About a third or less.
You went from ultra expensive NYC to Texas. So of course you don't regret that. LOL. Maybe not an apples to apples comparison. You went to a much less expensive market and now have "more." That should be expected and good for you. But not comparing buying in the same market.
What a tremendous chance you took by not actually seeing the property. Before all this madness doing something like this would be seen as utter madness.
Big gamble
@@bobbyjames4300 The house is fairly new (built in 2014) and my partner is an engineer and a fabricator so he can spot a lot of issues just by looking at them. The video walkthrough took more than an hour and he instructed the realtor what to do and what we wanted to look at and from what angle. I would not have dared taking this decision on my own.
No renting no thank you, my previous labdlord evicted me to house his mom, it's his right, no issue with that, but after 4 great years in my previous apartment I had a painful wake-up call that I was not in my home and could be kicked out whenever the owner wants it. Now, I have my house, I have to mow the lawn, fix things myself, learn a bunch of things, but I like it. And it's a good change to my day to day sitting on a desk and more importantly it's mine.
Here is the thing - landlords should not be able to evict you whenever they want, only in the specific set of conditions stated in the contract. One should never sign a contract where the landlord can kick you out when they want to. Worst case scenario should be that your contract does not get renewed.
@@rosabellavitaalvarez-calde5836his lease probably ran out and the landlord chose not to renew it. I can't understand ppl trying to argue that renting is better than ownership. But hey keep giving me your money renters
Its not your house. Its the banks house. And when u paid of the mortgage the government can take it from you. So keep dreaming.
@@Kededian unfortunately you are correct. You never really own a home in America.
I'm 65. I paid of my mortgage 10 years ago. For the last 10 years I've paid nothing for rent or mortgage because I own the property. Yet people tell me I'll be better off renting. How can I be better off when I haven't paid anything in 10 years?
@ garypadiham3221 I agree 100%👍👍 No mortgage and no rent is like having an extra pension! Rent here in Canada is crazy. I’m glad I own a home, good neighborhood, big yard and privacy. The problem is too many people buy too much house. Buying within your means is the key to successful home ownership.
We're gonna need some proof that you actually paid it off.
@@roadrunner9622 Who is "we"? Is there a gang of you?
@garypadiham3221 No, but you're making these wild claims and I think I speak for everyone on CZcams when I say we're gonna need some PROOF of this!
@@roadrunner9622 YOUR CHANNEL GIVES VERY BAD ADVICE. PEOPLE SHOULD NOT WATCH THIS CHANNEL. My dad is 94 years of age. He paid off his mortgage in 1987. He has lived in a three-bedroom house for 37 years without paying any rent or mortgage. I have a friend who paid off the mortgage on a property costing a million at the age of 35. His dad owned a law firm, and he gave his son money to pay off his mortgage. It's better, he thought, if his son gets his inheritance at 35 instead of 65. My friend is now 70 so he's lived in his house for 35 years without paying mortgage or rent. A friend at work was getting married, and her grandfather died. Her family decided to give her grandfather's house to her as a wedding present. She started her marriage with a full paid off house - she was rent and mortgage free. I have worked full-time for 45 years. Do you think I live in a tent or rented room after 45 years work? When I paid off my house ten years ago, I had worked full-time for 35 years. I am not well off, that why I worked 45 years because I could not afford to stop working. I expected after 45 years of work I could retire and enjoy holidays. I found my dad needed full-time care, so I am his full-time carer - my retirement has been snatched away. I now live a life of half slave and half prisoner, looking after him. To look after him, I also have to live away from my wife. Most people my age, in their 60s, have finished paying off their mortgages. Older people who have to continue paying rent are in a very bad place. No one wants to be in their 70s, 80s, 90s paying rent. Yet, you are encouraging them to do this! You just need to look at the statistics to see when people pay off their mortgages. According to a 2019 survey by the Federal Reserve Board, about 37% of US homeowners aged 45-54 and about 44% of homeowners aged 55-64 have paid off their mortgages. The statistics show 81% of homeowners have paid off their mortgages by 65. Those 81% will have no rent or mortgage to pay for the rest of their lives, even if they live to be over 100. The stats also show 37% of people aged 45-54 had paid off their mortgages. I'm in this group. This channel has the flavour of walking in a beggar's den, where the beggar who lives there thinks everyone else in the world is a beggar. If they are not, the beggar wants to bring them down to her level, or get them to prove their wild claims they are not a beggar.
Property tax should be against the law. Especially after the age sixty, if you worked all your life and paid property tax for at least twenty years, I think we as seniors should be exempt or at least a lot lower.Especially when we're on social security
If you are in Florida and a widow or widower, your taxes are cut in half. My Mom just got this tax cut.
Absolutely!
Social security is that return as the new generations will not even have that and are paying into your check
Property taxes pay for local police, fire stations and schools. It should be reduced if after 60 since you don't have kids in school.
Absolutely agree!
As a homeowner, I can certainly sympathize with a lot of this, but at the same time I can't help but feel many of these same folks would be complaining about renting if the shoe was on the other foot. The grass is always greener.
The great thing about owning is that if you ever want out, you can at least harvest the equity when you sell.
@@user-do2ev2hr7h - i appreciate this fair take on the matter. Thank you.
Unfortunately, the equity bit is only significant once you have entered the second half of your mortgage. First half you are paying mostly interest and very little into principal. Most of your equity gain in that time would be from increase in property value. Even then, a huge chunk of that would be eaten by the costs associated with buying and selling a home. Don't forget this is after you have been paying extra for years, which you could have saved. and invested
So... ownership will come out ahead, but only after some number of years (varies depending on the property, rates etc ofc). If you quit early, you are going to have a net lose.
@@justanoman6497 I was talking about the equity from the increased value. If we see value gains like we have over the recent past, a seller is likely to clear a healthy profit even with costs.
Unless your home drops in value, you are building equity from day one.
@@justanoman6497 Yes, time is of the essence in this. If you are a vagabon, renting makes sense.
@@justanoman6497the key is to bring down your mortgage as fast as you can. Not wait the 25 year mortgage period. I paid my house off in 12 years and the value has shot right up. My point is a house is an investment that builds wealth over time. Can be sooner or can be later , but you are building.. and when you see your money growing in the house , you tend to get more aggressive with the pay down of the mortgage because actually you are paying yourself . Get that principle down as fast as you can and then you become financially free and increase your net worth.
After owning homes for many years, we’ve rented the last few and have zero regrets. Our time is our own, maintenance is provided, and all utilities are much lower. Our square footage is much smaller, but we got rid of 75% of our belongings and don’t miss any of it. But it’s personal choices, for sure.
I I give my landlord 9,600 a year for my rent which is 800 a month but my landlord covers the gas and water I pay for the electric which is only like 30 to 50 a month it fluctuates. Don’t gotta worry about taxes don’t gotta worry about insurance or upkeep just the up keep of the unit I live in like I had to change a few lights bulbs myself not a big deal. I asked my landlord if I could paint a wall they said yes. I actually like renting I know owning would be nice but I have a roof over my head each night and I don’t have to worry about anything but paying the rent. I’d say finding a good landlord is key.
@@ryans413 taxes are included in your rent. why dont renters understand that? after 15-30 years you have something you can sell and live off of, but with renting you have nothing. you do you. some people will never be responsible or able to afford it and thats sucks unfortunately
@@user-ko5ng3lm1z You can negotiate or say no to your landlord. You cannot say no or negotiate with all the entities with a license to steal, which is what you have when you own (correction: are OWNED BY) your home. I owned for many years and realized how exponentially my costs were increasing and when I saw I had no control, I exited the highway. Now I have fixed, predictable costs that are VASTLY cheaper than "owning." And my equity I extracted from my sale is paying half of my rent sitting in a 5.5% interest bearing savings account. Who don't owners understand that?
This dropped right after I found out we need a new roof. 😭
I’m happy I own so we can do all the repairs the way we want, but when they are too close together it can really make things tight.
did you not get an inspection before you bought?
@@user-ko5ng3lm1z we did the and inspector didn’t catch it. The shingles are fine and it looks okay from the outside but the wood holding it up is starting to rot. No leaks yet but it’s old.
Lesson I learned is when you are told “we redid the roof 5 years ago” get more details on what was done on the roof.
Problem is landlords can raise the rent every year. I’m in California and rent is out of control.
If you plan on staying in an area for the long term discuss signing multi-year leases with the landlord. I lived in an apartment for 5 years and never had a rent increase.
@@user-wd3po8sd7k meanwhile your property taxes can get hiked up too. Costs will rise no matter what situation you are in.
There are no Free Lunches in life---Your landlord has increasing costs for maintaining property. Rent control results in no incentive to maintain existing property or to build new units. Look around-- Rent Controlled San Fransisco has become a sewer.
@@user-wd3po8sd7k Depending where in CA you are, the homeowners insurance has gone up exponentially. My old neighbors were forced into the CA Fair Plan because no one will insure them. They went from paying $1700 a year to almost 8000 a year. If they were landlords, they absolutely would have to raise rent to cover that additional cost. Property owners aren’t just going to take a loss because some are barely making a profit as it is.
@@DFisk75 That's a good point, but with a mortgage you don't have to worry about increases in your payment for 30 years. With rent increase at any time period the increase might be huge, more than you can afford and then you have to find another home, if you can find a place that's lower in price.
i bought my house in 05..my older sister was divorced by then and was renting...my mortage is 920 a month..her rent for a 1 bedroom is 1200 a month...i owe about 80k left on my mortage..my sister sat down and averaged her rent payments and cost for the last 20yrs..she has spent over 160k..in rent ...my house INCREASED 100k in price...She has nothing to show for it..!! i have 220 k in EQUITY...enough Said..!!
U have property taxes which can go up at any time . U have homeowners insurance . You have repairs . New roofs need put on every 20 years can be 10 to 25 thousand. U will need HVAC, replacing hot water heaters etc . Also don't forget all the interst u paid on that loan . Let's see a 300 k house u probably pay the bank 150 thousand in interest when all said and done . Houses nice to have if rich but they are a liability
Enough said
@@davidcolletti7136 people think that when their house worth 500 k they really have that money.NO you don't have that money in reality in your hands.only investors can say that.
You will not owe just the original loan amount, people don't realize that they will owe at least 4 times that much when all said and done with financing. You won't start to actually pay on the mortgage for at least 20 years because you are paying off the interest to the bank first. Now who is paying more? And yes, you build 'equity', but your home is only worth something when you sell. And if you try to borrow 'your equity', you will pay interest to the bank in order to use it. I am a a homeowner of 20 years..
@@davidcolletti7136 yea but how much have you spent on maintenance taxes and insurance things that are sunk cost in those 20 years i bet you'll find out that it closes that gap. None of those things you have to pay as a renter not to mention the time spent either in maintenance. But its really a personal choice fact is neither one is better than the other overall
@@janityy if you rent do you really believe that your landlord is going to do all those things for you at no cost?
Do you believe that landlord is some sort of charity doing everything for no additional profit margin.
Rental property is a business model like any other.
And all of those costs along with a return on their investment are included in your rent.
To believe otherwise is just fantasy.
Omg…..I’m 57 and love my apartment. I gave up on buying a home.
After seeing one friend after another become house rich and cash poor, I decided to switch gears and give up on buying a house. I live in San Francisco, arguably the most expensive real estate market in the country. Owning will gobble up every last penny you have and you can never save for retirement. I have a rent control apartment that’s way below market rent rate. I am going in full force into investing in my retirement in my 401k, IRAs, ETF brokerage accounts, individual stocks, etc. I’ll retire a multi millionaire in 10 years. That wouldn’t happen if I bought a house.
@@chowfun1976 Exactly. Rent controlled apartments is where it’s at.
@chowfun1976 If the owner sells the apartment, the new owner will significantly jack up your rent. Also you can't tell what dividens you'll make off those investments
@@Music-yq8qc that’s incorrect. When a building with rent control is sold in San Francisco, the new owner must honor the existing lease agreement and cannot evict the tenant without just cause. The seller and buyer must also notify tenants in writing that the sale will not result in eviction, rent increases, or lease changes. We have extremely strict renters rights laws in this city.
@@Music-yq8qc also, I see every dividend, every dollar amount, I make from my investments. They are automatically reinvested.
@@chowfun1976 A corporation worth billions will hire a lawyer and find ways around those laws. Trust me.
Just moved. $5k for fence, $800 for adding electrical outlets, $6500 for custom closet (omg), $1000 for network install. $2000 for new furniture, $800 for yearly HOA…..
Of all of these, though, I only see one that was necessary: the $2k furnace (granted that it went out even though is passed inspection.) All $14,100 expenses are things you should have caught during the inspection or luxury items that weren't necessary...
If you buy a house be prepared to fix everything or set aside a 1000 $ a month for all the emergency repairs.
And be prepared for the repair to often be badly done, or finding all repair people too busy with much more expensive repairs elsewhere.
Owning and maintaining a home is a constant battle. Just look when buying a home all the problems and deferred maintenance. Many don't even understand the extent, if not technical
There’s nothing wrong with renting most people don’t want to own they just want a roof over there heads. It goes like this all the time I hate renting I want a home they get a home then a year in this is expensive I have no money this upkeep is killing me my AC broke my water heater broke my driveway needs to be redone I have so many bills I need to sell this house no one’s buying my house. While renters are enjoying a worry free space. I’m not saying renting is perfect I’m just saying the stories I hear all the time.
I laugh because people are usually slamming condo owners with HOA and assessment fees 😂. But I've always known that owning a single family home just presented different problems. Pick your poison folks.
I have no desire to maintain a single family home.
@@consumerdebtchitchat hopefully, there is no special assessment.
@@consumerdebtchitchat I plan on buying a condo.
Never understood condos... you rent apartments, you don't buy them. Regardless of who and what you laugh at...you still purchased an apartment that is at the mercy of others.
You don't have to maintain your single family house, or you can do it at your own pace. A condo you do and pay as your association says. Plus you literally just bought an apartment
ugh I couldn't live in a sardine can with neighbors that only a 6" wall separates you from- the baby screaming, the dog barking, the vacuum, the loud music, the arguing, the smelly foods, the parking spots, etc etc all that comes along with living amongst others in such close proximity... hell to the no.
Owning is so expensive. I’d rather rent because I’m not handy. I’d rather have someone come fix my repairs
@@01michellehall Just about the only situations in which it's less expensive to own than rent are 1- the owner either paid cash or had made a down payment at least a third of the price of the property and thus pays little or nothing for mortgage, and whose only major recurring expenses on the home are property taxes, insurance and utilities
2 - the house is in an area without an HOA and thus no monthly dues and there's little or no mortgage on the property
3 - it's one of those alternative dwelling units such as a house made of alternative building materials (such as cordwood, earthbag and straw bale), the house is round or a dome home, it's a yurt, etc and largely or entirely built by hand from scratch
@@01michellehall We bought a house last fall, I was 0, but 0 handy, technically my girlfriend is more handy than me, but so far I built a patio last week, I learned how to install 3 new toilets, I destroyed and built a shed, install a new trap door in one of our rooms, instead of taking me 2h to do something that would take someone else 30 minutes, it often took me 4h, but with youtube, patience, and a good attitude you can do anything.
I do that and I own. I love being able to stay put. Even my realtor friend told me to set aside money each month for maintenance of the home.
i’m a dude and yes i feel u.
Good comment i totally agree. I am not handy either and seen other people who are not handy having to pay for expensive repair after repair. People who are very handy and can do repairs and upgrades themselves can do well owning a house. If that is not you and you have no desire to do repairs yourself probably better of renting.
“Having a guy” for everything from yard work to cleaning the gutters is something most people can’t afford or will delay retirement by years to afford.
A lot of people do absolutely zero maitenance for 20 years then sell the house before it gets really bad.
@@rustyscrapper,
After 20 years without continue maintenance. The house will be a wreck. Trust.
@86Framer Why can't owners do their own yard work? It's not rocket science. Now for a repipe or electrical work, yes, you need a professional. Mundane maintenance goes with ownership. Your own labor is a small price to pay to move toward financial freedom.
@@curiouspenguin6887 I’m not saying they can’t, but talking about the common misconception that there is an Army of teenagers looking to do yard work for five bucks an hour out there.
I enjoy the freedom of being a homeowner myself, but the constant upkeep and maintenance is something people should know before buying a house.
@@rustyscrapper They then get a “fixer up price” instead of a “turn key ready to go price” for their house. Home owners can’t ignore stuff everything from
leaky roofs to letting the lawns go to total crap without wrecking the house or slashing the value dramatically.
Buying a house is like having kids. You don't see your kids as an invesment
Well, I did once refer to mine as my little Earned Income Credits. 😂
I’m glad I bought and sold at the perfect time.
Don’t buy a property with a HOA!
The reason I sold was the crazy lying HOA!
As a current renter,
I get to put my feet up during a stressful era.
Invest wisely.
@@jodiburnett6211 HOAs are the devil.
Ive lived in an HOA for over a decade and I love it. Properties are well maintained. All the areas I looked to buy without an HOA have turned into dumps over the decade.
I have been a homeowner for over 40 years. In time, these repairs come, it does not happen all at once.
some people are willing to get used furniture. Painting the walls and adding new cabinets handles and pulls in the kitchen and bath can go a long way to hold you over until you have the cash, time and knowledge for bigger renovations. The colors you paint inside your house can increase or decrease value so be caution.
Housing in the US is pretty much an unaffordable nightmare across the board. It doesn't really matter if you're a home owner or a renter, you either have an income well above the median for your state or you're just screwed.
Brand new homes honestly are being built like cardboard boxes it’s bad My best friend bought brand new construction and it’s nothing but problems from poor craftsmanship
I just want to say there’s absolutely no problem with renting if that’s what you want to do. Everyone looks at it as bad and you need to buy a home and own it. My only thing is you don’t own crap until the mortgage is paid off so you’re pretty much renting the home to the bank. Most people also sell there homes before they are even paid off. It’s nice to own not saying don’t go after a house but there’s also nothing wrong with renting if you can find a good landlord. Most renters actually save money if your not renting a house if your in a condo or an apartment or town home your rent will probably be close to 1000 a month including your other bills it’ll probably be close to 2000 a month. A mortgage bill can be close to 2000 it’s self not factoring in other bills. So a renter can actually save money and put some aside. Now if you can own a home good do you most people can’t and renting is not a bad option there are good landlords out there trust me I rented for 5 years and had a great landlord.
Depends on the builder. Take D.R. Horton, Eastbrook and Allen Edwin for example. I bought a brand new house in 2021 from a great reputable builder and don't regret it.
I have tools in the house and garage and a ladder. You have to be handy. I’m a senior woman and do much of my own fixing including installing lights and paint fixes. You get used to it. Got to have a tool kit and mow your own grass.
$2904.00 for property taxes..? That’s a bargain
Right?! Even in CA with Prop 13 in effect, absolutely no one has property taxes that low.
My 1,300 square foot ranch home in western NY that is worth around $200K is costing me $6,000 each year in taxes. My family and friends in other states have a hard time believing me, but it's true.
@@bigcahuna42366 I believe you! Blue states are so corrupt. Paying almost $15k on a 790k house here in California. Thanks to Mello Roos and adding a pool which triggered a reassessment. If not for the low interest rate we grabbed in 2020, we would never be able to afford the monthly payment.
@@bigcahuna42366would of thought it be higher in New York. Being from Jersey I'd consider that decent.
5k in MN
Most people who go from renting to owning a home have no idea how to take care of a home. Every system in a house (plumbing, electrical, HVAC, paint) requires consistent maintenance. If you have to pay someone to do it? You will be broke in no time. CZcams university is great but as an electrician I have had to repair or replace so many dangerous repairs done by DIY professionals. On top of that many jump into purchasing and they buy a home without budgeting for these common repairs.
Invest in the financial markets before retiring by diversifying across assets, allocating a small portion of your portfolio, staying updated on market trends, and considering long-term holding to balance risk and growth...
Many new tra-ders struggle without proper guidance. I found success through Brian C Nelson expertise.
@@hamzahamza-bz3rfexactly that's why I always seek Mr Brian guidance in all I do 😊
Brian Nelson's market insights have consistently led to profitable decisions.
I recently sold half my tech stock holdings due to all-time highs, leaving me with $400k. Should I invest in ETFs now or wait for a market correction considering potential inflation?
Celebrating a $30k stock portfolio today from a $6k start. Investing wisely has given me time for family and future plans.
Bought recently and regret, im lazier than I thought and just want to chill when i get home. I did find out I'm quite handy which helps A LOT around the house, overall me and my girlfriend are very happy and the house allows us to have a live entirely focused on us and its hard to put a price on that. Overall though dont buy a house if you or your partner isnt handy or you're gonna be paying contractors $1000 to fix leaky faucets
Amen. My boyfriend and I have full time jobs and have a side business as handy persons, as partners, and we are about to buy a house with space for all our tools. Finally. A home is more than a mortgage. It's a life project. When you feel good about where you live, you change and grow. The mortgage is a tiny bit less than rent, but we'll make more money when our business can grow because we have the tools to store, for better services. If you want to be on Facebook all night after work, or watching Family Feud, don't buy a home
I have a warranty with a $110 call fee. Cost $950 a year. I have a new furnace and garage door material so far. The cost? $220😂. I think everyone should have a warranty at least the first 5 years in your home. It gives you a chance to rest financially. I wouldn’t buy a house without one. The seller paid for my first year too
You NEVER own your home. Don't pay TAXES, and see who owns it 😂
Exactly. Or if the government needs the area for development. Or if u go to prison etc.
Property tax on average house in Vancouver 7 K annual
When you're 70 with little to no savings or 401k, you'll wish you'd bought. With the exception of the last 3 years, property taxes/ home prices are normally stable with small increases everybody year.
But rents increase regularly. At 65, do you want to be paying $3000 for a 1 bedroom or $500/ month for property taxes and insurance on a paid off home. That's when you see the true value. Most home repairs you can do yourself with a CZcams video or high a low cost handy man. Renovations are a want not a need. A home warranty for less than $100/ month will cover more emergency repairs.
Put a few hundred a month in an emergency maintenance fund and don't touch until you need emergency repairs
Where do you live? That is high rent. Can you move? The beauty of being retired that you can move. You do not have to stay in expensive city to pay so much in rent.
People are commenting that repairs aren’t expensive or all at once and I’m trying to figure out where y’all find all this money ? 10k for a new roof? Everyone doesn’t have that just sitting in a bank account.
A roof is good for 20 years put 100/mo back, and you will have far more than enough.
If you fail to plan You plan to fail
I put 100/mo into my repair fund and have NEVER needed more to cover all of them.
If you want to "renovate" save that money separately renovations are NOT required
Most people think it's easier to have this money than it really is
Dave R says that mortgage, HOA and home insurance should be less than 25% of income. Perhaps that is the way to go.
9000 to replace AC? Now I understand why a friend of mine from Brooklyn has window ACs all over his house.
I make $3,600 a month after taxes. 25% of that is $900. Where am I going to find an apartment for $900 or less and still make $28 an hour? That's unrealistic in today's economy.
@alex182618 Don't buy a home in an HOA and you can save yourself a bundle. Not to mention being free of people telling you how to live and what you can and can't do on your property. 😉
@@BREEZYM6015 Because you need an apartment why?
To be fair, Dave Ramsey is extremely conservative on spending, because he mostly deals with people in heavy debt who needs to. You don't need to really go that far if you are otherwise financially healthy.
That said, I've rented a bedroom in a house before for less than half the cost of a studio apartment in the same area. So there are options cheaper than "apartment." I never understood why people use apartment as the bottom line.
Now, that is hardly the long term solution, you will want to move up eventually. But if you can actually do 25% on housing as recommended, then you can probably save 50% of your income and afford to buy a place of your own in just a few years with a large percentage down. And a hefty down payment would do wonders for your mortgage. For starters, the principal is lower, which lowers the amount naturally. Further, with high equity, you are lower risk so you can usually negotiate for lower rates.
@@curiouspenguin6887 non HOA communities tend to fall into ghettos as it only takes one hoarder or tweaker to ruin the neighborhood.
@curiouspenguin6887
Yeah, every non-hoa house I looked at when I was buying (even if it was nice and there were a few) was surrounded by dog shit property.
some people will make the mistake of thinking a 1000 dollar rental is the same as a 1000 dollar mortgage. When I bought my house I paid about half what my previous rental was and I saved a ton of money by buying, it ended up being far cheaper than renting and gave me way more space.
Let’s see 1000 for rent other bills probably bring that close to 2000 that’s pretty much a mortgage bill it’s self. In a way renters are saving money per month and can put money away if they are smart. Where a home owner that’s just the mortgage not including other bills.
@@ryans413 home ownership is definitely the way to go for me, By the time repair expenses and other issues were covered my monthly bill was about the same as what i had been paying rent, the only difference being my home was far larger and i had built 100k equity in only 2 years of owning.
Home ownership is a much better idea, but only if you know what your getting into. Rent these days is just too high to allow any sort of investing to be going on
I purchased a new build as a first time home owner. Jackie is right, my mortgage people NEVER mentioned anything about how the property taxes would change and how often. My escrow went up twice because of the lies.
I'm sorry that happened to you.
Thank you for a very thoughtful video. My wife and I have been renting for 11 years and are hoping to buy a home soon. I've been doing lots of research and here are some of my thoughts:
•Taxes: In my area, it's pretty common for people to hire a law firm to file a property tax grievance with the county every time a property is reassessed. The cost is a percentage (usually 40 - 50%) of what they save you. It's a corrupt system, as these law firms hire former elected officials and tax assessors, but that's just how it works. Nobody goes it alone because the county will just waste your time in court.
•Maintenance: Homeowners should learn how to do simple DIY maintenance and repairs from CZcams, friends, family, and neighbors. MORE IMPORTANT IS KNOWING WHAT'S BEYOND YOUR SKILL SET OR IS SIMPLY TOO UNSAFE TO DIY (the consequences of DIY screwups and hospital ER co-pays are expensive too). If you need to hire a professional, always ask if they offer a discount if you pay in cash - most do.
•Renovations: Prioritize and focus on one project at a time: Usually, things like yardwork, a new driveway, replacement kitchen cabinets, and new furniture can wait a few months while critical, but less visible issues like roofing, plumbing, and electrical repairs take precedence.
•Utilities: The biggest driver is heating and cooling. Home buyers need to educate themselves about the operating, maintenance, and repair costs associated with electric, oil, natural gas, or propane fueled heating and cooling systems.
•Water: Is it municipal, and if so what is the cost? Is it from a well? If so, the homeowner is responsible for well head and pump maintenance as well as water quality testing and maintenance of water softening treatment systems.
•Sewage: Is there a sanitary sewer or a cesspool (how old is it), and what are the costs associated with them? RotoRooter or pumping services may be occasionally required. Replacing a collapsed sewer line or cesspool is very expensive, and may not be fully covered by insurance.
•Garbage, recycling, yard waste, and large item pickup: Is it provided by the town, or do you have to cart trash to a dump yourself, or pay a waste management contractor to do so?
•Insurance: Talk to a few insurance agents and get estimates. You can save some money by using the same company to insure your automobile. Find out what riders may be appropriate especially if you have any jewelry or camera equipment.) Flood insurance is always extra and it's expensive.
Ive been on all three side, renter, homeowner and condo owner. For me, by far, my condo is the best thing I've ever done. Roof, grass, basement wall cracks, lawn, snow, leaves, porch repair, sidewalks, trees, all taken care of by my HOA. However, there are rules, keep your patio area free of weeds (small patio area is owner's responsibly) doors have to be a certain colors, etc., but I'm beyond happy with my condo. The house I had was very stressful and I hated it, it was a money pit, causing lots of anxiety. Now I knew a married couple, both physicians with a boat load of student loan debt and very little free time, they had no extra cash for repairs and no time to sit around waiting for contractors, they sold their home after just six months. So it depends on the person/people and where you are in life. I'm an empty nester so for me it's great but if you have kids and want a nice big yard, or want to remodel and paint freely, not great.
The 2 houses I bought in my life destroyed my finances.
Well then you did something wrong
I used to rent all my life and I recently bought my own home after my previous landlady first inflated the rent and the next year decided that she needed the apartment for her daughter. My life has since improved a lot and I never regretted owning a house. No more worries about higher rents year after year, no worries if my contract will not be renewed and I will have to move. I wouldn't want to go through the same stress ever again.
Sorry that happened to you. I just spent the last 20 years paying off the interest on my home, because you don't pay toward the house until about then. People don't know this, we are actually paying the bank to live there.I didn't know this as a new homeowner back then. I have spent thousands on a new ac, roof, flooring, water heater, yard upkeep, appliances, homeowners insurance and taxes. And my home was only 3 years old when I bought it. Good luck to you.
@@sandysimmer1279 I don't have interest, I just bought the house that I could with the money that I had, it's a small apartment in a convenient location. That's the biggest mistake people make, they want and buy big fancy houses with high maintenance costs with money they don't have. Of course I paid taxes, insurance and so on, but other than that it was ready to live in, even with a brand new a/c.
Unless maintenance, taxes and mortgage are less than rent, keep renting. Saved up and paid cash for mine during the 2007 crash.
This!
The ONLY problem is if you can't afford it
😮😮😮 4:00 I'm amazed how little people are paying in property taxes!
It's shocking how little research people are doing before buying a house! So sad. How can you buy a house without calculating potential taxes, insurance, and repairs would cost? My partner and I built our first house in 2022, and the HOURS of research we did was considerable. So many spreadsheets of potential costs, ballpark figures of taxes and utilities. But thankfully we estimated everything on the high side, so now I'm pleasantly surprised when bills are less than expected 😅
Good for you! I think the past 4 years drove most people into a panic so they didn't due enough due diligence.
People make huge life altering decisions like this without researching the potential outcomes ALL the time. They include: marrying the wrong person, having children you cannot afford, adopting pets you cannot properly train or keep active, taking on crazy debt for a college degree that has no value in the job market......people want what they want but don't want to THINK about the real cost!
I went from renting to owning back to renting just under 2 years... Will never approach home ownership the same again..if that day comes again.. Good video!
Renting vs owning. I used to think owning was by far the better option but not necessarily the case
FACTS!!!!!
Correct, very few people realize that, with a home loan, they typically end up paying 3x the value of the house by the time the loan is paid off.
I've lived in apartments for 15 years plus from California, Nevada to Washington. I hate living in Apts no matter how cheap it is. The parking space being filled up, the constant noise and smells that come from neighbors, the used apartments rooms have patched holes and bad covered up paint jobs. Now that i have a home, I'd rather pay extra than live in that lifestyle again. Also no matter how much I pay my rent on time and never complain to mangement they always raise the rent by hundreds of dollars. Hell no i'm not going back. I'd rather own what I pay for and not go back.
No regrets. Instead of paying to send my landlord's kid to college, I am paying to send my own.
@@jc1979af you’re always paying for someone else’s kid to go to college , renting or owning
Banker gets the largest chunk. Government get a big piece too. Not sure how paying for your mortgage pays for college.
Only if you get good one. Often...no
How does paying your mortgage send your kids to college, exactly?
@@matthewphillips5483 simple. I paid cash for my house. So I don't have a mortgage. Instead of paying $1,500+ to some guy, I pay myself.
I owned and sold 2 homes in the last 25 years. Both were blessing. Then my employer transferred us out of state. Bought our 3rd house. It's only 5 years old. This house is nothing but a money pit. We have had to replace all the appliances, the HVAC system, all the toilets and most of the light fixtures. Not because we wanted to but because we had to. Everything stopped working. For example the HVAC system that was out of warranty just died in the middle of summer last year. $13k for a new HVAC. This house has drained our savings to zero. The taxes are triple from last year and our home owners policy is 5 times more expensive than we paid last year and that's without ever filing a claim. We are meeting with our real estate agent to see if we can just sell it and be done with this place. We rather rent the rest of our lives and actually have money in our savings account than pay for another thing in the damn house.
not everyone should be a homeowner. the government tried that already
The problem is that homes are overvalued. Congress needs to start regulating investment into single family homes. The prices of single family homes should be set by families, not investors.
I'm designing and building a place I can afford. It's going to look like 3rd world country housing, but that's fine because that's what America is.
The key is I will use half my savings and see how far that gets me. Then instead of rent, I save for monthly upgrades. Because if I built it myself, I can do all repairs as needed. Where all of you mess up is trying to convince people you live in a first world country and become slaves to the oligarchs. That ends for me in a few years. Just have to work for utilities, food, property tax, and repair fund for car and house.
Two or three days a week should cover it. Screw this American Dream nightmare. I may live in a large shed, but at least I'll be free.
I will never trust the American housing market. Ever. It's a scam.
Six months after i closed on my house, the HVAC system died permanently. It was $7,000 to replace. My emergency fund was a life saver.
Nothing but facts! Homeownership is way more expensive. I've owned my condo for 5 years and I've had to replace the water heater and washer and dryer the fridge. My floors flooded when the dishwasher went out then a pipe Burst in my crawlspace oh and because it's a condo we got hit with a loss assessment we had to pay. Not to mention the property taxes and my insurance went up a lot oh and the HOA fees!!! 😢😢 So yeah it is not cheap be prepared
Seems the dishwashers are the usual culprits in flooding. My son's dishwasher when he was a homeowner did the same thing. His home insurance took care of the damage. One Sunday I came home to water leaking out from under the dishwasher. Either solenoid valve needing replacement or the water line got out of place. We both have had a phobia of using our dishwashers every since. We always wash by hand now.
A condo is not the best option financially. A small home without an HOA is better
Lol. I am a home owner of a Bungalow, let me tell you - you're losing your life paying rent. If you have a 5-10% downpayment - GET IT (ONLY IF, The interest rates are good).
FYI: i'm not a boomer, i'm 28 years old. In Canada. I rented for 2 years and I noticed that it's the biggest cash thrown down the drain.
Every repair you do on your house increases your home value when you eventually sell. So, your investment IS an investment. On the long run, you're a BIG winner.
Supply demand: Population grows, the planet size doesn't.
I bought my first home last year, and while I don't regret buying, if I could do it again with my current knowledge, I'd scrutinize the home and the inspection WAY more and would keep much more for repairs than i did. It's been an ordeal getting this old house back on its feet when I expected it to be turnkey
This is why i never wanna be a homeowner. I’m an RN in SoCal and making decent wage and most of coworkers/relatives are pushing me to buy one but i don’t wanna be house poor and have these anxiety for whatever emergency repair might happen.
I can’t stand it when I hear “might as well pay for my own house than pay someone else’s mortgage “. Ugh.
I would add up the costs of owning two homes over the last 30 years, but it would ruin my day for sure.
And if I’d like to ruin my whole week, I would add up the cost of owning a rental property for 15 years.
@@alyross2850 cash flowing quadplex - house hacking - solves these cost problems. If there is a will then there is a way.
Then wouldn’t be it better to give it all up and sell all your properties and go back to renting.
Hmm, I bought my 1st house at 21 and paid it off by 28 and sold it for double, then built a big house and paid that off by age 35. Interest rates were higher but I never owed more than 70k all up. This set me up for early retirement at 55 and now I’m living the dream coming up to 4 years doing what I want every day. So for the last 24 years I had no mortgage or rent to pay. I’m blessed I had the intelligence to buy a house young. Imagine if I were renting today - yikes! To rent my house would cost at least 40k per year, so that’s a million $ rent over 25 years. That’s gone straight into my bank account and helped me retire early and wealthy. We don’t have property taxes in Australia only 2k council rates. Home insurance is 1k. If I had it over would I buy a house again or rent forever? Hahahahahahaha
@@Milen983 For what I could get out of my paid off house, invested, it would return not enough to pay rent in a halfway decent place because rents are so high. My savings plus my equity certainly won't pay for assisted living, but I'll have both to draw from the principle to last about 4 years. After that I'll be out of money and have no idea what I'll do; I'll be thoroughly demented by then with no way to make any decisions.
Can't help but want to ask these people if they also want to do their own dentistry since paying someone else would be throwing money away.
I like being a renter. I don't have to worry about maintenance, property taxes, homeowners insurance, homeowner's utilities costs, selling the house if I want to move etc.
When you are renting, you make that payment. That money is gone!
You own, and you took a loan, that money has a cost. The interest you pay is gone, but you still have an asset that has value!
You are not buying a liability such as a vehicle. You bought an asset that, even if it never appreciates, will still have a large value.
So you think people should buy homes at record high costs right now with high interest, taxes, and insurance?
That story of the husband pressured into buying a home hit home. I made that mistake in 2016. It was a stressful period but today I am living stress free in an apartment. Gone is the house and the wife! Life is amazing now!
I wish ALL realtors had your integrity & honesty. You are a gem! I'm 60 & have no delusions about "owning" a home, it's not happening. Me & my son just want to go home to Wasilla, AK & Rent. We can't even find a rental property we can afford at this point. We are looking at tiny 2 bedroom houses that look rundown & unloved. Nothing is under 1500$/month. A few places will accept dogs, but so far, no luck on anybody allowing us our 2 beloved cats. I refuse to give up on our dream of going home. Perhaps the market will crash & do it hard, bringing prices down in all markets? Thank You so much for your brutal honesty...people NEED to hear this & pay attention.
@@DragonMum13 I pray you find something. 🙏🏽
Very good information,thank you for sharing ❤. I have been struggling with stocks and forex since 2020 making loses everytime. I am strungling financially and am about to give up. Please please can someone reach for me and help me with trading please.I will appreciate it. Thankyou
Most people don't understand the concept of "buying the dip" buying the dip is all about buying digital assets when their prices are down and selling off when the price rises.
@@mccarthylauren6816 All We need is the right advice on how to invest in crypto we will be set for life
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From $10K to $45K that's the minimum range of profit return every week I thinks it's not a bad one for me, now I have enough to pay bills and take care of my family.
My advice to anyone holding cryptocurrency right now is to invest it and earn upto 80 times of the initial capitals.
These days, I prefer renting just due to the margin I have each month. Let's face it, unless you're getting off the grid, you'll spend chunks of money renting or buying. "Most" people are in debt & don't have emergency funds, sinking funds, etc. to take care of unexpected or expected upcoming expenses. 🥂
Your videos are authentic and real. It's refreshing to watch them and to make people aware. Keep sharing the information, I appreciate it.😊💯🙏👍🏡
Owning a home cost a lot more than just mortgage.
Property taxes going up every year .
Roof replacement cost ranging from 7.5k to 15k
You have to shop around
Or ask people that's own rental they know who doing good job at low cost . Mow the lawn yourself. Trim the tree 🌳 yourself. Do what is take to save money .learn to fix and repair.
Here in California our new roof bid was $20,000!!! Our home is small! We will be seeking other bids, but I wish it was in the 10K to 15K range...
Since I moved into my house 7 months ago, replaced heat pump 15K, tree service 2K, retaining wall 3K, washer/dryer 2K, fridge 2K, gutter repairs 1K, landscaping 3K, yard supplies, mower, blower, edger, rake, shovel 1K, plumbing leak 1.5K, new water tank 3K replaced damaged window 1K, furnitures 7K, restoring decks 2K and the ever rising property tax and insurance cost. Good grief!
I am a long time homeowner, and I don't remember what renting was like. First, I have a home repair account to take care of unexpected repairs, (which should be at least 2-4% of the homes value) so that those ticket items do not come out of my money for basic daily expenses. Also, new homeowners should get a home warranty, it helps, it may not seem like it would, but it does. Second, for property taxes , they should check with their city or county and see if they have the homestead exemption tax program to lower their taxes. I live in the North, and I use that program and it has lowered my taxes by $1100 dollars per year. Of note, if you live in the North, freezing pipes is a given, DUH. If you don't want to deal with that issue, maybe a relocation to a state with a warmer climate might be helpful.
Albeit home maintenance is a pain, but I find dealing with the repair people and the contractors are the real issue, also having the necessary funds in an account ready to deal with it, helps.
Everyone I have known who owns, always complains about owning. From family members to work colleagues. I've never had an interest in owning, and renting is fine for me. No worry about maintenance.
If you don’t want to do maintenance, then buy an apartment. A small 1-bedroom apartment.
Yep that’s my plan
That's exactly what I did (1 bedroom condo). I bought in a coastal town, next to a free bus line, a 7 min. walk to the beach and park, and within walking distance to four grocery stores, two pharmacies, two hardware stores, near a post office, and close to the historic main street w/ its shops and cafes. It's an older build, but the walls seem to be thick and/or well insulated b/c I rarely hear neighbors through the walls or floors. My HOA is $358 (includes garbage, water/ sewage, and building insurance). Taxes are 1,700 annually. Family members talk to me w/ the assumption that I'll eventually sell and move into a single family home. I'm not so sure of that anymore. Yes, it's small and not as impressive as my family member's homes, but it's below my means and offers what I would consider a good quality of life. The seagulls and all their ruckus can be be over the top at times though. Lol.
I was looking to purchase a year ago . I put home searching on hold because of the HO insurance doubling, tripling or dropped by insurance co..
I was with the realtor one day and asked about the numbers he was showing me, I asked these figures will not go up is what I’m understanding correct? Realtor muttered, the insurance and taxes will go up soon after purchasing it. that will be going up next year. I asked him to repeat that. Many new homeowners are given incorrect information or many important information being left out.
I don't know how you figure out that renting is less. Renting around me is $2000-3000/mo for 1 bedroom. I own a condo that's paid off and it's cheaper to just live there and pay the $600/mo HOA vs even $2000/mo rent. Renting would cost at least 4x what it costs for me to own a condo. When you rent, you're stuck with all of the landlord's low-end piece of crap appliances and A/C that often doesn't blow cold and runs your electric bill to the moon. It's better to own than rent. When I sold my home of a few years, I walked away with $130k at the closing. Had I rented all those years, I'd walk away with $0. People are buying into fancy, overpriced houses. This is why it's costing. SET YOUR BAR LOW!!! My property taxes are around $2,000/yr. I just paid $5,200 for my roof. Now I'm done for 20 years. STOP BUYING $400-600k homes! Look for $150-200k homes! If there are none, MOVE to another city! My cousin just bought a $300k home in Texas and now his property taxes are a whopping $10,000/yr! THAT IS INSANE! I would NEVER buy a house with property taxes so ridiculously high. $2,000/yr is my max! You have to remember, when all of these things break in a rental, do you think the landlord is going to eat all of those costs?! NO! YOU are going to be paying all of those in HIGHER RENT!
You are 💯 correct sir this is exactly the mentality my husband and I have.
@@anac2411 My sister is mentally ill as well and insists in living in a fancy, expensive neighborhood. She lives in a fancy, 2200 sq ft house with HUGE maintenance of fancy landscaping and a pool. NONE of that is necessary. Her poor husband is a slave to keep the property up. She has fancy barrel tile that now looks ugly and needs to be pressure washed to bring the original clay color back, when regular tile would have been fine. Her home insurance is to the moon because of the value of the house. If one emergency comes, they get buried in debt for living in such an expensive place. She will never be able to retire because the upkeep is too expensive. I am saving a fortune by having a cheap condo. I'm $10k away from paying it off and then it will cost $600/mo to live here for the the HOA and $1800/yr for taxes. Where can you rent a place in any metro area for $750/mo in Chicago, Miami, San Diego, San Francisco, etc... and not live in a DUMP?! This is $750/mo to live here on a nice golf course with full amenities! Club house, billiards, multiple swimming pools. Renting is INSANE! That's only something you do after moving to a new place so you can learn the neighborhood. After 1 or 2 years of renting, you should be owning and staying put and then focus on banging the mortgage out by sending in extra payments. People are not doing this. And if you buy a $400-650k home, that makes it next to impossible to pay off fast, especially at 6 to 8%!!!!!!! I HATE INTEREST! All of my loans that I have, these banks get NEXT TO NOTHING in interest from me!!!! I AM CHEAP!!!
$600/month? I pay $112/month to my HOA (I live in a townhouse community). They're also nice people. I usually try to negotiate with them when I am notified about things I need to correct. I think it's the good faith effort they also consider. But, I live in a small town, so the neighborhood is nicer.
Not everyone has the option to move somewhere cheaper - not all jobs are remote. I live in Austin, TX, and it's really hard to find a 2 bedroom condo or SFH less than $300K (even looking at outlying areas) that doesn't need a ton of work and/or have a high HOA. If you find such a unicorn, it's in a rough area of town. Older homes here almost always have foundation issues due to the soil. It's way cheaper to rent here than buy at this time (rent $2750 vs cost of mortgage, tax, insurance with 20% down is $4867 for the same house). Most of us who live here know that we are priced out of the area or will have to house hack to own anything unless the list prices come down.
@@mariatolentino4516 How much was your townhouse? And when did you buy it?
My mortgage is 700.00 and I rented for 2600.00 I don't see losses. My other property bought for 145 k sold it for 400k, not every investment goes wrong.
We have owned our home for almost 20 years and we don't have such high expenses as described in this video. It all depends on the size of the home and the location. Buy a smaller home in a low cost of living area and you will be fine.
Inset Ben Shapiro "just sell your house!" meme lmao god you people are thick.
3 years ago, most of Florida was a low cost of living state but now people are losing their homes because of home insurance and tax increases.
I bought a home in 2019 for 48,000 cash and was sent a 2,400 school tax on a 100 year old home, i sold it im in a cheap efficiency with water included and no property tax or repair bills
Property taxes is a killer
Renting is the biggest waste of money because you have no equity when you move out. A mortgage-frree home with few expenses is a significant asset for most people.
It would be interesting to know how many of these homeowners agreed to no inspection as a part of having their offer accepted. How many had an inspection and knew there might be issues but went ahead with the purchase anyway? I can't imagine having an inspection and having to do major repairs like roof and HVAC within the first two to three years of purchase.
It would be even more interesting to know how many of those people's realtors downplayed everything, hired bullshit inspectors, and just implied that you can just fix anything without being honest about how expensive things are.
And these retard Realtors will just go "Do YoUr DuE dIlLiGeNcE!!!!11" yeah, hard to do that when you haven't owned before moron. That's why you pay a fucking realtor, to explain this shit to you, not downplay it to make a sale.
Lots of excellent advice❤And imagine job loss or unexpected illness living in an overpriced hime😢A lot of people live in overpriced houses on limited income so they struggle the whole time. Thanks for tallying up the true total homeownership cost.
In CT rentals without heat and hot water start at 2500 to 3000 for average 1000 to 1200 square feet, no garage. Would love to see a trend for 62 plus apartments for mid to lower income elderly that are 1000 to 1200 square feet. I'll keep dreaming.
Many new apartments today ("luxury apartments") require that the renter pay a garbage and water fee. Utilities and garbage used to be included in the rent. That's a no-no for me.
Here's an expensive item that i've never heard you or anybody mention is replacing the main line.The city doesn't replace the part that goes into your house through your yard, and that can be thousands
Varies by area whether it covered but definitely expensive.
I grew up in South Jersey and my parents paid $17,500 for a house that was only 2 or 3 years old. That house now, that was built in the early 60's, is now supposed to be worth almost half a million dollars. There's your problem! Houses are no longer affordable to the average working people in this country anymore. Actually, if you can't afford to pay your house off in 15 years, you can't afford that house. I'm sure you've heard that before. Things can't keep going like this. I'm down in North Carolina now and my property taxes are less than $1000 a year.
It is becoming unsustainable. Something has to give. Thanks for watching!
If homes prices are only allowed to appreciate a fixed percent annually, the housing industry will be very different.
Spot on an it simply is greed that got out of hand. I've never seen it as bad as now compared to years back an I'm almost 66 yrs old...
@@davidwilliams4498 I'm in your same age range. Things are starting to get scary.
@@JackieBaker check the rankings of NJ schools and NC schools... That is why his property taxes are $1000....
Only landlords want you to rent only. If a person is telling you that you can’t own a property, but you could rent it. It’s in their best interest not yours. There’s always gonna be work to be done and owning something so to try to alleviate that you still gonna have somebody else that’s going to be paid to do that work and that cost will be transferred down to you, just remember no landlord will eat that cost ever not profitable and if you can understand that basic concept that you understand not to buy a crappy home but save your money for a decent home that way it gains value and you could sell in the positive side of things.
I have been blessed in my early life living in hospital houses for 15 years in rural areas. A lot if saving. No security expenses, cheap water and electricity, no transport to go to work, no repair even the bulb. It was wonderful and i saved a lot of money. I rented for 2 years when i moved from rural to urban. Ibought my house over 2 years. No regret and i learned to appreciate those hosputal maintenance guys who were assisting us. Homeownership is Bliss. You feel that you are in charge
In my area, you cannot get a one bedroom for less than 2k a month. And when you read the reviews, there's nothing but complaints from lousy maintenance to horrible neighbors to having roaches and mice.
Thanks, but I would rather own my home, then rent.
That’s not a majority circumstance, though, and certainly not true where I rent. You’re using anecdotal evidence to justify the decision you already made for yourself.
@@marievogt4705 got it loud neighbors and vermin are the bane of renting. In Chicago we have a big problem with apartment fires in ghettos they are out of control. Putting many families on the streets. Lot of it arson too in the news in the winter especially nearly every week.
And there's no guarantee that your landlord will fix anything either.
Market rate in my area in 800 to 1,000 for gorgeous one bedrooms. 1,000 a month being top gorgeous, full maintenance staff all the bells and whistles . U can get a nice 1 bedroom safe for 800. Facts
Move from expensive states and u won't have to complain about ghettos and shoddy rent prices and experiences
@@janityy
I don't need to complain...I own my home.
I'm single and bought my condo before the prices skyrocketed. I love my condo. I am responsible for the inside maintenance and the outside is covered by my condo fee. I am almost done with the mortgage so I will just have condo fee, taxes and utilities and repairs. Houses and all their maintenance are too much work and money for me. Also, my condo more than doubles in price in 9 years. I couldn't even afford to buy or rent where I live today.