How Are People Affording Homes in 2024?! (Breaking Down The Real Numbers)
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- čas přidán 3. 06. 2024
- Have you ever wondered how many people get financial help from their parents when purchasing a home?
What mistakes do people make when it comes to buying or selling a home?
What should people know about interest rates?
What are strategies for building wealth through real estate?
We spoke with Yael Ishakis, a loan officer with FM Home Loans, who dropped knowledge in a big way - we're talking real numbers, real stories, real areas.
You can contact Yael at 845-548-9075.
To subscribe to Eli Fried's great weekly newsletter, visit tinyurl.com/EliFriedNewsletter
CHAPTERS:
00:00:00: Episode Preview
00:00:26: Introduction to Yael Ishakis
00:02:00: Realistic Home Purchasing
00:10:38: Colel Chabad
00:11:52: Analyzing Mortgage Rates
00:14:12: Financial Help
00:15:53: Exploring Affordable Communities
00:21:08: Kehilla of East Meadow
00:23:58: Pioneering Communities
00:27:51: Creative Solutions
00:29:57: Market Trends
00:32:41: Foreclosures and Credit Card Debt
00:37:06: The Donors Fund
00:39:00: Good Investments, Risks, and Tips
00:44:13: Everything to Know About Credit Cards
00:47:35: Home Inspections
00:49:16: Buyers and Sellers Negotiation Tips
00:51:16: Twillory
00:52:30: Women in Real Estate
00:54:04: Advice for Aspiring Loan Officers
00:56:36: Final Thoughts: Own a Home!
00:59:41: Conclusion and Thank You
01:00:30: Living Smarter Jewish
01:01:01: Kosher Money Tip
01:01:34: Donate + Premium Membership
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And here's a link to the 401K finder tools that I referenced in my outro: www.finder.com/retirement/how...
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Great podcast. Very informative and breaks down the concerns of many prospective buyers.
Attending a home inspection is always beneficial, even for women. You will learn more about the home and will learn what to look for when making future home purchases. If you are pressed for time ask the inspector how long they think it will take to inspect the home then come for the last hour and ask the inspector to walk you through the house to highlight what they found with you. Not all inspectors are great and you may point out something they missed or have questions that can be immediately answered. Also, keep in mind that a home inspector is not a specialist. If there are features of the home that are considered extras they may not be covered, such as a chimney. Your home inspector may be able to find the obvious that the chimney is not compromising the structure of the home, but they won’t be able to tell you if the chimney is functional. If you want to know that you’ll need to contact a chimney company and schedule a chimney inspection at an additional cost to you (as your bank won’t require it for a loan). Chimney repair costs can go into the thousands of dollars very easily.
It's absolutely ridiculous to dress your children well and not be able to afford your home. You can find much cheaper deals and the kids look good at the Goodwill or Target or learn how to sew and sew your children's clothing. There are tons of Gemach
When I was little I wore a lot of clothes handed down from my older cousins. My parents were financially smart and by age 14 we moved into a much nicer house.
Any kid under 10 years old will destroy their clothes. It's pointless to get overpriced kids clothes
At the end of the day your kids don't care what they wear. Kids can be dressed well for cheap. That story shocked me.
There is a whole lot more going on with that family’s finances beyond their kids’ clothes.
@aggieglitter at least when I was in middle school, there was some peer pressure to fit in. Not really as much in high school because by then you're really free to do your own thing. In hindsight, I'm of course happy my parents made the choices they did (often by inaction) as life these days is great both for me and them
Come to Mill Basin in Brooklyn. Real Eruv. 4 Ashkenaz Shuls. 3 Sefaradic Shuls. 1 Yemenite shul. Supermarket. Mikveh. Starter homes from $600k. Large waterfront homes $1.5-2mm. 15 mins from Flatbush. Amazing sense of community. Dozens of frum families moved in in the past two years. Busing to all flatbush yeshivahs. Quiet and quaint neighborhood close to everything.
The fact she said that buying a home is the only way regular people can grow wealth shows she lacks quite a bit of education in that front. . It gave different insights anyway and I had no clue about credit freezes which is also possible in the UK
She's not exactly wrong. The home is the largest item in most people's budget. In a metro area that is thriving (not dying), stabilizing your housing costs would be a huge thing. My mom's mortgage for a 3 bed in Las Vegas bought in 2006 (the height before the 2008 recession) is around $1000/mo. That was painful back then and for a few years, but its pretty awesome today.
Now, most of the payment goes towards the principle, so its mostly increasing her equity. By the time she retires, the home is paid off. Alternatively that would have been $1500 rent for an apartment. Its kind of like having an extra 300K in your retirement account. If she cashes that houses in, it would be $600K.
My father became wealthy from long term stock investment before he ever bought a home. After he and Mom split he would rent the cheapest apartment in a decent area to allow him to save money. He bought his first home at age 40 in cash.
@@vapeking466becoming wealthy through stocks within 10 years requires quite a bit of luck. It’s actually quite risky, not at all easy, and not every one can do it. Most people lose money because they don’t know what they are doing or are just plain unlucky.
Most people are best of with a 401k, IRA, HSA, investing in index funds. You won’t get rich quick but you’ll retire with something unlike most people.
As a home inspector I'll disagree with her. The less you know, the more important it is for you to be there. If you understand basics, you'll understand the report. If you don't know, come and ask questions. Your inspector should have the time and patience to explain everything
The risk of having rental properties is that the renter can become a squatter really quickly and then you may lose your investment property if you can’t pay the mortgage on it. That young girl Yale was referring to was really lucky that she found a good renter for the property.
That’s a rare occurrence. But there are risks. You just have to minimize that but buying cheaper properties for rent
Every investment has a risk. I believe it’s about knowing what risk you wanna take? More importantly knowing what strengths you have as an individual.
Buying a home “is the only way for a layman to build wealth” is a very silly statement.
Not silly, its a forced investment. You'd do just as well being forced (disciplined) to invest in the S&P or a business BUT you CANT live in S&P or business.
@@icsamerica never said anything bad about buying a home. But the only way to build wealth is very silly no??
@@sportsallday8795I think the qualifier of "layman" is the important distinction. For most people, their home is their primary asset (once it is paid off), so in a very real sense, her statement is true.
I get where you're coming from, my investment assets outweigh my housing asset in the net worth calculation but that's not typical. Most people's netbworth is tied up in their home.
Ok so i went into this optimistically, thinking that i will finally hear some real down-to-earth insight. Instead what im hearing is "instead of paying $1.2-1.5m maybe pay only $700-800k"
I dont have any rich relatives and household income is under $100k.
My family's only chance of owning a home is if i die then my wife gets a $1.5 million payout.
1) Start out with a coop or condo and build equity. 2) Look for other work opportunities that can increase your income. 3) Stay positive & pray.
Or move to lower cost of living area or city - and be at peace with that, there’s a lot of great Jewish communities in middle America, southwest, Texas, even the South.
@@Zensci18That doesn’t always solve the cost of living problem…
1) Lower cost of living city could mean lower incomes and fewer job opportunities
2) More expensive kosher food
3) Travel expenses increased when visiting family in other communities
4) Fewer Jewish educational options for children that don’t fit the options offered in the “out of town” Jewish schools.
@@BJ-bc7sl indeed those are considerations that have to be taken into account but at end of the day a lower cost of living area or city permits those at lower end of income strata with more opportunity to own their own home versus high cost areas and cities. For example, in AZ or TX if you have a housekeeper, there’s a decent chance they are or will be a homeowner. In NY or LA or similar, one’s housekeeper is likely to be an apartment renter for life with little to no hope of ever owning property.
As a real world example, my gardener (an immigrant from Latin America with maybe a high school diploma - not sure - has a beautiful home with huge acreage about 1 hour or so outside of the main city where it is quite cheaper area (especially 20 or so years ago when he bought).
Move to Cleveland, Ohio
I wish Yael was my lender. Keeps it real. Yael is real and passionate about her professional. Awesome.
Three bedrooms two baths 1400 ft.² $1060 month.
Great interview full of knowledge abd wisdom, thank you ❤
Correction about Naugatuck- the Bais Yaakov that services Waterbury is actually IN Naugatuck
I think more people need to be comfortable moving. Saving is extremely important for self preservation, and the second you’re in a situation where your career to cost of living is not allowing for it you might as well be comfortable moving elsewhere for the prosperity of your family instead of slowly draining everything you’ve built to sit in a city. We know the markets correct or crash every decade or so, and there will always be another opportunity for you to come back and buy in, but people trying to live on a $3000 a month salary in NYC today just aren’t going to get ahead and would be much better suited moving to a more rural and affordable area.
Same thing with Airmont New York. Now prices are going up because more and more Kosher stores and restaurants are popping up
FYI in Canada its way easier to get a mortgage and you can lock for upto 50 years.
With the current rates and high housing costs you are not building wealth when purchasing a house. The rent is way lower then the monthly payments. (Its a negative ROI)..
$5k is typical mortgage payment?! Is everyone making a half a million bucks a year??
Sounds like it
My wife and I are not making that amount but not that far less than that and we live in a very high cost area with multiple kids in private school and we struggle to not have to dip into our savings. We have one really nice car and one old one, and are not materialistic (we haven’t even fully furnished our home completely). This financial condition of the frum community is not going to be sustainable in the long term. we are going to need to learn how to expect a much more modest lifestyles for our children. But good luck trying to impart that to the next generation.
@@Zensci18 I’ve been trying to share that vision and all I get called is a curmudgeon or old timer. Things will change when our generation can’t subsidize our children’s lifestyle
@@ekoller we’re getting pretty darn close to that point I think. I’m seeing a lot more young people moving away - it’s just getting going now but I can envision once the 1st wave goes, more and more will follow. Of course those who took the plunge first will benefit the most because they will have bought when prices were low and then when successive waves come to those locations - their investment will have appreciated (maybe not as high as it would in NY or LA) but still an ROI that’s not too shabby.
East coast living
As a newly(ish)wed this is constantly on my mind. Mrs. Ishakis is actually a neighbor of my parents and I was so excited to hear from her :)
I live in south fl...it's practically untouchable
Check out Rochelle Park in NJ. I own a pharmacy in the neighborhood and it’s very affordable and great neighborhood
For many frum people, $600-700K (East Meadow) is still unaffordable - a mortgage will be at least $4500 a month...
100%
Huh…Easy solution- move away from high cost areas and cities.
@@Zensci18, absolutely agree with you! I've lived in small and affordable communities.
Well, how come your wives don’t go out and work? I know you have lots of children, but come on someone who’s an attorney should be able to work. You can’t really build generational wealth otherwise well now that the laws have changed you won’t be able to do it anyway my generation and most of your parents generation that bought homes in the 1970s and 80s lucked out I live in Southern California and it is impossible for children to buy homes now they are all moving, out of the state and the ones who are staying in California are the ones who have already decided they’re not going to have children. And do not overextend yourself, you don’t need the extra stress.
@@mattikarosenthal3298, incorrect assumption regarding wives not working. An overwhelming majority of married couples I know are of both working spouses.
Very informative. Its important to keep in mind that many of the anecdotes are based on a single market and there is no one sized fits all approach for every market. Additionally, you're never going to find a loan officer that is going to encourage you to wait to buy a home and keep renting. They may say "dont buy this home" but they wont say "save up more money and try to get your expenses down over the next year or two". The advice from loan officers is invariably buy now but buy less. Mortgages are their product ... it would be like a dairy farmer telling you to consider dairy alternatives while you attempt to lose weight. The furthest they will go is to drink "less milk".
The lesson is dont live in a frum area we price ourselves out
Or maybe strive to pursue a better paying profession? go to grad school, get a doctorate, or learn to code software. Don’t have kids right out of high school. Use your early to mid 20’s to get educated and have kids after. the “frum world” might look down upon this but I did that and make over 200k a year and my wife as well and suddenly those folks who looked down upon my wife and I for doing that are “our friends” again because we can afford a upper class life. you want a rich frum life ? Fantastic - now work hard and go earn it.
@@Zensci18 I know you're coming from a good place but not all of us are grad school material and that does not negate the fact that we price ourselves out we find an affordable place build a shule and 5 years later the house is double in price which is good for the people who bought it but not for the people who didn't
@@cohenlabe1 but it shows that building Jewish community brings value. This phenomenon you bring up is much more of a good thing than a bad. It might not even really be “bad” at all frankly.
Ok - indeed Not everyone is grad school material but not everyone has to live in the tri-state area or Pico in LA. I grew up in AZ and while I don’t live there now, the Jewish community in Phoenix has grown by leaps and bounds compared to how it was when I was a kid. There are cheaper areas in several parts of the country that are only growing more and more every year. In places like Phoenix, you don’t need to be doctorate-level professional or have family money to qualify for a home loan. You just need a good amount of savings and a steady job. It ain’t NY but it ain’t bad.
@@Zensci18 agreed we all don't have to live in and around in New York. I have theory about that there are two types of people that live in New York those who are trapped here those who don't know they're trapped here for example jobs in schools for for children are known traps but there are also high earners who would not be of they left
@@cohenlabe1 m’shaneh makom, m’shaneh mazel
You buy a house to eventually sell to pay for your nursing home.
😂
Unless you put it in a trust and beat the five year look back
9:53 Key advice. Otherwise it’s just a limitless tulip craze in a small region.
Nice episode,
I personally disagree with buying a house for equity. You buy a house if you need or can afford.
If your house went up in price, most likely, the houses around went up in price as well.
So what good did that do?! (Unless you pull out equity and invested another places)
I lived in Europe for a couple years. And I saw wealthy people who owned properties and businesses but never lived in their own house.
When visting Florida in the late 1970s an elderly man preached that an HOA can be a giant elephant in cost..his HOA fees were higher than his Mortgage for his 60s era place
“Community” really is important! Very!
I had no help for my first home. Always figured that was the norm in NA.
What going to happen when people lose their jobs and can’t afford these houses with taxes and insurance and all these costs? Yes people do regret buying houses when they can’t afford it and nobody will buy it because they don’t make the money
Thanks for sharing these data with us...
Price increases are unsustainable. If people cannot afford it now what happens when a recession hits? If you cannot afford it you cannot afford it. Get a lesser rent and save your money. Be patient.
Bigger bubble than pre-2007. Add to that the prospects of AI/automation disruption. I’ll sit this one out, thanks.
Get the Reventure Consulting channel guy as a guest on your podcast.
I have seen this time and time and time again and it will not be ending soon. How are these people dressing their children head to toe and matching outfits driving the latest model bands and then taking and taking and taking......
Whaaaaat? Neiman $120k Saks $40k Bergdorf $80k but they're allowing their mortgage to fortclose on them? Ohhhh America Wife screaming her children have to dress well. Well, forget about dressing well. They're not even going to eat well. It's sad
So whats the solution? And why are house prices not coming down if no one can afford it?!
See my comment above. Solution: move to lower cost of living area OR get better jobs OR live below a lifestyle level that you are accustomed to. That’s it.
Housing prices not likely to come down as demand is still strong enough despite high inflation and interest rates. Things have to get worse before prices really come down substantially. That’s the reality.
As she said during the episode, at least 60% of buyers that she sees are receiving significant parental and/or familial help. I would posit that the actual number is even higher.
That being the case, prices will continue to skyrocket.
The bank of Mom and Dad always approves your "loan". They are at least good for a down payment.
“I called a lady yesterday, um she has, not even so much…she had about $35,000 in credit card debt”
lol not that much??
There are Americans with 70k 100k in debt. Lord knows.
I guess, in contrast to others, it is considered "not so much"...
She is advocating for leveraging debt on real estate, kind of a wheeler/dealer type of person who makes commissions on sales. This is not good advice at all.
Where I live: 1.5 mil home is the average not above. Hence, Younger people are moving to lower cost areas: Houston, Dallas, Vegas, Phoenix, others. Orthodox Judaism in established LA, NYC, DC neighborhoods AND having a middle to upper middle class lifestyle is increasingly only attainable to those with incredibly good jobs where both parents earn or there is serious family assistance. If you are not a high dual income earner family or do not have substantial family assistance it makes no financial sense to live in LA or NY. Move to lower cost cities if you want to keep your lifestyle, OR seek out better paying jobs. Those are the only options. Or just live a lifestyle poorer than you grew up as. Some folks seem to be ok with that. Not me though.
Well said!
Great interview!!! I love to hear people that are honest and realistic about their money! Very educational for the young people that are looking for a new home!
“Out of town” communities are much more affordable
I live in Toms River it’s ridiculous here.
Why is Waterbury so cheap?
Great info. I used fm loans and was thrilled.
*I'm hoping to wait 2 years to buy a home and hopefully save up money by then.*
Its so bad here in Sydney. I feel for the young families wanting to buy a house. For 1mil AUD you will get a 3 bed fixer upper in a crappy suburb. 7 years ago i was a single mum, i couldnt afford to buy in Sydney. For my price range, which was $450k AUD, all i could get was a fixer upper that needed everything fixed. So i built in a different state, that was about to boom and i could afford. While the house was being built, i picked up over time and worked my butt off to be able to afford it. It was hard for a year. I didnt even buy lollies or chips fir the kids. They knew and were happy to wait a year. My new build cost me all up $525k AUD and now valued at almost $800k. I have tenants in there while i rent here in Sydney. I hope to purchase in Sydney also, using my equity on my first house. Its doable but hard. This was a great podcast.
I don’t see how you can complain about prices at the same time buy a house for 740,000$ and have a job.
Its good to start small and go from there... Maybe but a 2 bedroom apartment in the suburbs..
However these prices are exceptionally high, be careful, if theres a crash, then everyone will br able to buy for a much lower pricing...
Nothing is ever guaranteed...
Id say its better to buy young when time is on your side... Save, start small, hopefully build equity sooner or later...
Invest in your mind, spirit, generosity, devotion to your Creator... We take that with us when we pass on... Be the person of divinity, morales, strength...
Its good to have a place to lay your head in safety, protect you and your loved ones... Dont worry so much about keeping up with the Jones's, or the rich rabbi's...
I know when the crash happened people were buying homes for 20% of what they were selling for at the peak of 2007...
Thank God we bought our home in 2014 when prices were low. It’s such a beautiful home in a beautiful neighborhood 😊
let's keep it short: want to live in a center frum area? get ready to pay for it
“a center frum area”…in metro NY or LA. Lots of center frum areas in other cities that are less than half (average home price) of high cost areas.
This was such an informative and good episode. Like my steak - well done! (my steak isn't actually well done. I only said that for the line. I'm actually more of a medium guy. Not physically. Physically I am a short guy. Ok. Where were we? Oh right). A+ conversation!
In a Jewish Sydney suburb, which is St Ives and Bondi Beach, you can get a 2 bed apartment for 1.2Mil AUD. Don't even mention a house! You're looking at over 2mil AUD for a house thats a fixer upper. And you need a 10% deposit and then taxes on top of that.I don't know how young couples will it. You either need to have an empire or bank of mum and dad. Or to off your parents. I don't know. It's not going to get any better.
Could not pick a worse time to buy. Something has to change cause it's rediculous. The majority cannot afford to even look at homes and cash buyers are screwed too with homes double what they were just a few years ago. Perhaps places without jobs would be more affordable like if you can work online.
Many economists are predicting a flat market for the next 5 years. It may not be the best idea to buy now with rates so high, thanks.
It’s a game and if you don’t play they hurt you if you do play they make it difficult
Parents?
What abouy grandparents and aunts...
Awesome lessons. Great instruction. Thank you
This was phenomenal. Soooo impressed. Fyi my son went to yeshiva in Nagatuck beautiful beautiful community. Would love to take Yael out for coffee I love in Dallas. Morah Bracha
They are not ,it is a illusion!!
Isn’t the entire history of real estate has matched inflation
She apparently is an optimist and thinks real estate just goes up and up
My parents bought 2 houses and eventually sold. Both at a loss. Both. Irrespective of there being a decade in between. It’s not so straightforward like this.
Oy, so sorry to hear. Which areas?
People should get married and buy their own property when they are financially and emotionally ready. I do not understand why parents have to pay for their children's weddings. Anybody over the age of 21 should be independent because they are adults at that age. Also, if people cannot afford a big wedding then go for a small wedding and have a fairly big reception instead. Similarly, if people cannot afford to buy a house in their neighborhood, go further out or buy a fixer upper and renovate it on your own one room at a time. There are many ways of living within your means when you are middle class. Only people who live below poverty line struggle in their lives.
Are people moving to Tampa?
I wonder why she didn't speak of Tampa. Very affordable there. It's a growing community.
$2k mortgage is ridiculous just plain ridiculous. Following the simple 50/30/20 model it doesn’t even make sense.
2k mortgage is cheap as heck if you're living on a coastal city where even mcdonalds workers make $20 an hour.
Different story if your in podunk nebraska with no real economy.
in the northeast that is very cheap
2k mortgage doesn’t exist anymore where I live unless people got their mortgage decades ago. In elite cities, mortgages are much much higher.
Maybe 2-3bedroom condo units for under 150k. I think that comes out to under 2k a month.
Across from a JCC and 2 orthodox Shuls. Only one Jewish school in town though.
Great episode
Some of the way she’s talking sounds illegal😮
What country are these people in? She’s saying 4-5000 in rent. That’s so crazy. People are doing dumb stuff and I don’t understand why. Example: I own 4 houses and they cost me $2500 a month
These are the prices now in NY to rent a home. What's your solution?
@@please866 First off I wouldn’t rent a house. If you’re renting it should be a small apartment. If you don’t see yourself earning a comfortable wage in the near future you might as well leave and go to a state with lower housing cost.
In my neighborhood in florida there are average houses that are around 3000 square feet and like 4 bedrooms being rented for $12,000+ a month
@@yoniboboshov500 You’re joking right. Did you say $12,000 as in thousand a month?
@@eliot5220 yes and the houses are at most average
Temporary House Poor or
Forever Rent Poor 🤑
She did't "drop" knowledge, she revealed or shared it. What you refer to is good, intersting, useful, but not "awesome." Why can't you speak your native language?
The Sages emphasize that a word is a poweful pweful weapon. You follow Hashem in everything else, why are you so flippant when it comes to language?
Thanks for this. I will work on it.
Some people just have a passion to criticize...
この人はユダヤ教ですか？
Yes, she is Jewish.
Househacking
Go trump he's rite
Trump isn’t mentioned in the episode.
@@LivingLchaim
Trump 2024
The way how landlords are renewing leases and to raise the rents are ridiculous. What makes them raise the rent amount every two years ? It’s not that their mortgage payment went up why are they raising the rents that’s ridiculous reason renters and struggling