Home Buyer REGRETS: 43% of Homeowners Can't Afford Their Home
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- เผยแพร่เมื่อ 21 ก.ย. 2024
- Recent homebuyers are facing their biggest regret. 43% of new homeowners are struggling to pay their mortgage. This video I dive in to what is happening with our new homeowners and why they are struggling. I'll also share some tips for what to do to avoid running into this problem.
Note all information shared in this video is from Clever Real Estate, Zillow and Core Logic. The data given is NOT my own.
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Jacqueline "Jackie" Baker
NJ License 1541448
Coldwell Banker Realty
Allendale/Saddle River
#realestate #jackiebakerrealtor #jackiebakersellsnj #homebuyingtips #homesellingtips #realestateinvesting
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CHECK OUT THIS VIDEO ABOUT WHY 90% OF HOMEBUYERS REGRET BUYING THEIR HOME ➡th-cam.com/video/ofkBssr6iUU/w-d-xo.html
It must get better or it defies supply and demand.
You said that if the home prices would have kept Pace with inflation a home should only cost $177,000. That cannot be right . That cannot be right . I am in the process of building a house and we are not finished yet and have already put in over 150,000. We still have to pay the bricklayers and we have nearly all of the inside left . This house is going to cost over $175,000 just to build it. Your analysis is incorrect and I must say I live in West Texas the cost of homes here is not nearly as high as other places. This house should be put on the market at around 250,000 or so.
@@he7is7at7hand You have contractors. You would save so much money if you built it yourself. You're paying your contractors too much
This is a really interesting take on the housing market. People are being impacted by the long-term decline in property prices and the housing market. I recently sold my house in the Sacramento area, and I want to invest my lump-sum profit in the stock market before prices start to rise again. Is now the right moment to buy or not?
Safest approach i feel to tackle it is to diversify investments. By spreading investments across different asset classes, like bonds, and international stocks, they can reduce the impact of a market meltdown. its important to seek the guidance of an expert
Based on personal experience working with an investment advisor, I currently have $1m in a well-diversified portfolio that has experienced exponential growth. It's not only about having money to invest in stocks, but you also need to be knowledgeable, persistent, and have strong hands to back it up.
I'd love to work with the same advisor you invested with. How do i align with the person?
Annette Marie Holt 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.
Thanks for sharing, I just looked her up on the web and I would say she really has an impressive background in investing. I will write her an e-mail shortly.
You don't own a home 🏡 if you have a mortgage. The bank 🏦 does. 😳
And the tax man always owns it no matter what!
You don't own your home even without a mortgage...stop paying property taxes and see how quickly your paid off and owned home is taken away from you. True home / land ownership is a scam
@@kingdingaling9756
Only in a few states can failure to pay property taxes result in home loss. 😳
Lol nope that's everywhere and it's nothing to do with the state government it's the local government! @@alphaomega1351
*ALLODIAL LAND TITLE to own home.*
People are in love with the fantasy of buying a home. The reality is often very different.
True.
I bought my house 20 years ago. Thank God. But I still remember the first time something broke, and I realized I couldn’t call the landlord. It was my problem. And it was coming out of my bank account. that was two weeks after I moved in.
Sounding a lot like the Thanos quote lol
Yes, the key to life is the reduction of expenses combined with maximum saving of money, if you can train yourself to do that you will have life beat, if you cannot do that then life will pin you to the mat and never let you up. Nobody wants to live below their means... and everybody pays for it in the end.
The fantasy is those with mortgages thinking 🤔 they actually own something.
I don't make payments on things I actually own. 😳
I was laid off 4 days after my first mortgage payment of the first home my wife and I bought. Exhausting all of our savings on the down payment, I was mortified of losing everything. So we finally budgeted for the first time and we tracked every penny of what we spent. 8 years later we now are debt free and have just another year until our house is paid off. This will never happen again, but the biggest takeaway Jackie states is the 3-6 month of emergency fund. Don’t rush into a house. Save save save and buy a house you know you can easily afford. It may not be the one you always dreamed of but an owned roof over your head is better than a dream home drowning you.
I live in NJ. What ive seen go on here is insane. Here in NJ we have the HIGHEST PROPERTY TAXES in the country. During the pandemic people fled the city and came out here and went into bidding wars and paid over asking sometimes by 100s of thousands of dollars..which INCREASES THE PROPERTY TAXES!! Not only did these buyers screw themsrlves but they screwed their new neighbors because they raise the value of the whole neighborhood..which INCREASES EVERYONES PROPERTY TAXES!! I live in a middle class neighborhood and all of a sudden a regular 3 -4 bed split level on a 75×100 is going for $1mil..my towns property tax rate has gone up to 2.7% ..so that house property tax rate is $17,000 a yr now!! My town is not a million dollar $17k property tax town..IT IS COMPLETELY OUT OF CONTROL!!
Joe Biden's Fascist plan. You will own nothing and be happy!
Jersey and Long Island are horrible
Sell your home, move to Europe and buy a home for 40% of the money and bank the other 60%. This is what is going to happen, mass migration out of America. It WILL happen.
We just bought in Delran in Feb. Its expensive but my husband needs to live in county for his job. I remind him all the time we wont be here forever.
@@scoobie8amg NYC .Ames people live in the city too. They take all your wages back
If you have limited income but are insistent on buying a home: avoid houses with: basements, attics, septic, well water, very-large homes, very old homes. Check that all of the windows and doors work YOURSELF. Don't hire an inspector recommended by the realtor. Stay away from condo fees and HOAs. Buy the smallest, least expensive house you can get away with that's at least two bedroom. Buy into a decent working class neighborhood with low crime.
I've heard that very old homes are actually better than newer homes because they used to be built much better - and thus longer lasting.
Look into the plumbing, electrical and asbestos of old homes. @@rsuriyop
LOL you are funny. Getting ALL that is like winning tyhe lottery.
Good luck with finding any homes that meet this criteria
Sounds good. In dfw homes that are older in a good location w no HOA, 3 beds will cost you roughly $500000. Real estate is very localized. Might be possible in a small city but not an affluent city. Good luck to all though.
I'm a home inspector, add a minimum of 50k to the price of every single family home sold to bring the house up to what you expect it should be. I find most buyers are completely strapped and cant even afford a new dishwasher based on their comments when I tell them the issues found. They freak out and most end up buying the home regardless. Grow up people, buy that small ugly affordable house and deal with it.
My husband and I were fortunate enough to be able to pay off our mortgage early. We were both still working, and took the payment amount that we had been using to pay off our mortgage faster and we put it straight into investments. We were able to retire early because of almost 7 years of putting away what would have been our mortgage payment as well as maxing out our 401K/403B plans. Thankfully we were taught by both of our parents the value of living within our means. Thank you for your advice. I know it will help people. we are interested in investments that could set me up for retirement , I mean I've heard of people that netted hundreds of thousands during these crash, I listened to someone on a podcast who earned over $650K in less than a year, what's the strategy behind such returns?
Investing without proper guidance can lead to mistakes and losses. I've learned this from my own experience.If you're new to investing or don't have much time, it's best to get advice from an expert.
Even with the right strategies and appropriate assets, investment returns can differ among investors. Recognizing the vital role of experience in investment success is crucial. Personally, I understood this significance and sought guidance from a market analyst, significantly growing my account to nearly a million. Strategically withdrawing profits just before the market correction, I'm now seizing buying opportunities once again.
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.
Leicia Zavala Perkins is the licensed advisor I use.Just research the name. You'd find necessary details to work with to set up an appointment
She appears to be well-educated and well-read. I ran an online search on her name and came across her website; thank you for sharing.
One main problem is that peopl are bidding WAY TOO HIGH to win a home bid.
My brother had to help me financially so I would not lose my new home. When you buy a home the Federal Disclosure form called the HUD-1 is supposed to protect you from surprises. Sellers, appraisers and lenders must comply with HUD-1 regulations and tell the truth. Not so with local taxing authorities. Counties, municipalities and school districts routinely violate the HUD-1 every single time when they immediately file an assessment appeal based upon the price paid at closing. New homeowners get blindsided with a huge tax bill that was never disclosed and it's government corruption to the max.
You didn't think it was just the real estate industry behind the scam of home ownership did you? Once you sign that Deed the government owns you.
In all fairness though people should accept that they're going to have to pay the tax rate on the property at the price they paid for the property. It seems insane to think that you would get taxes at half value even though you paid 100% more than the last owner.
Mortgages with down payments under 20% and without a 5% reserve should never be issued. Government corruption is fha loans back stopping unqualified buyers who don’t have a 20% down payment
The whole thing is a scam. The appraisers receive a copy of your offer before they do the appraisal. Then surprise surprise the house appraises for a price that works. The listing agents are adding sq ft and bedrooms that don’t exist to get the online mls sites to give inflated “ zestimates”. So, they artificially inflated the price of the house. Then that comp inflates the price of the rest of the houses in a half mile radius. Then they get the appraiser to say “ yep” this house is worth it. The inspector can’t really be held liable. So now they duped you into an overpriced house with issues, and your taxes and insurance will increase because the house is “ worth “ more. It’s one enormous trap. You better hope an economic rug pull isn’t coming. But I think it’s at the doorstep. That’s when the economy is so bad, mass layoffs skyrocket and people start losing their jobs, cars, houses. The houses lose value because foreclosures are everywhere and no one can afford to buy because they are struggling to maintain their current situation. Then you’ll be paying those high payments on a house that’s now worth half of what you paid. You can’t refinance because you’re under water on the mortgage. You owe more than what it’s worth. Some people just give up and walk away from the house. Then surprise surprise all your money is gone, your house is gone, and some wealthy investors picks it up from the bank for half off and rents it out for a profit. The bank, loan officer, appraiser, inspector, title company, seller, investor all made money off of you and you’re financially destroyed and starting from scratch.
You are an uninformed buyer, the tax information is pretty much in your face when you buy its your fault
Items are only worth what people are willing to pay.
Until people stop buying cars, houses, and other items at a ridiculous price. They will continue to go up.
But in America the only reason they do so is because of access to credit. Kill the credit access, you solve the "lack of true price discovery" problem. If the economy was forced to buy/sell on the fundamentals, aka the prevailing real wage, prices would adjust.
@@GonzoT38 I agree with you 90%, but the only thing I don’t agree with is killing the credit. It is an option for us to use it. It’s not their fault that everybody chooses to do it.
This guy gets it. If people keep buying it, they’ll keep selling it. It’s that simple.
@@GonzoT38 Come down to earth away from your arrogance!!!
Those are necessities so it'll never stop.
People should add, taxes, insurance, maintenance, mortgage interest over 20 to 30 years. They would be shocked how much it cost. Yes equity but not what they think
Yep big picture it is the long game after all.
I got one of the last foreclosures in 2013 and I’m so grateful for that. I lived in a storage unit for two years so I could afford it. And it was pretty new and an Energy Star home.
I hope prices level out and incomes go up so young people can actually afford a home. Plus Air BnB and corporate buy ups need to curtailed.
I'm a millennial (37) and was looking to buy a home before the pandemic but couldn't decide where I wanted to live. The pandemic hit and I wasn't feeling up for it then, and now that I'm "ready" the prices and rates seem a bit out of reach.
The more research I'm doing with vids like these, and its relief knowing it's nothing like going and buying a car, and it's better to have a safe bet (and some extra cash in savings) before I pull the trigger. Maybe in a few more years 😄🤞
I appreciate the work you do here!
Glad you find the videos helpful!
Same here. We are close in age. Wanted to buy before pandemic, market was too hot, pandemic hit, I lost my job (whole team got laid off due to pandemic).
Didn’t have a W2 for a year while houses exploded. Now doing a bit better, but everything is out of control.
For every person that saw their net worth explode from COVID money printing, someone else like me exists that got crushed by the pandemic due to no fault of our own.
Priced out now, but becoming oddly okay with it. I’d rather rent and invest a couple extra thousand dollars each month in S&P.
Wait for a market crash
Buy a house while the prices are still cheap.
I think the best time to buy was during the pandemic
I am a small business owner, i bought a home in the first quarter of 2020, interest rate well below 3% and the home at a great price. Maintenance, ever increasing taxes and insurance that seems to double every yr are killing me! I do not know how those with high interest rates are doing it, it will for sure end BADLY
They pay less for the property!
Price is the biggest problem. The media keeps saying that interest rates are the problem but if prices are back at a realistic level interest rates are NO problem.
Buy within your means. Always remember insurance and taxes will go up,not to mention utilities and maintenance
$420,000 avg house, $75K avg income, 7-8% rates, down payment, closing costs, emergency fund…tough out here for first time buyers…especially singles.
Home renovation shows have changed the view of what constitutes a starter home. We tried to sell a 3 bedroom, 1 1/2 bathroom house with a 1 car garage (1,184 square feet) totally renovated in 2015 but most buyers were not interested because it was not large enough and did not have two garages.
Real estate and stock investments may be good decisions, especially if you have a solid trading strategy that can see you through prosperous days.
You're not doing anything wrong; the problem is that you don't have the knowledge needed to succeed in a challenging market. Only highly qualified professionals who had to experience the 2008 financial crisis could hope to earn a high salary in these challenging conditions.
Recently, l've been considering the possibility of speaking with consultants.
I need guidance because I'm an adult, but l'm not sure if their services would be all that helpful.
Well, there are a few out there who know what they are doing. I tried a few in the past years, but l've been with Eric Paul Elmer for the last five years or so, and his returns have been pretty much amazing.
One option could be setting up a trust. It can help reduce the taxable value of your estate and pass on assets to your heirs more efficiently.
Another strategy is gifting. By gifting assets to your beneficiaries while you're still alive, you can reduce the size of your estate and potentially lower estate tax liabilities.
They have minimized the tax advantages of owning your home for a reason… they are pushing people to rent from corporate landlords and institutional investors now driving home price appreciation, ironically using our own money to compete against us in the market.
Socialism
Socialism
I believe what Johnny is describing here is capitalism, not socialism.
What johnnybq2 is describing is definitely not socialism but predatory capitalism at its best. Don't blame this on Democrats and certainly not progressives.
Keep voting for biden🤷🏾♂️
simply just insane interest rates and property taxes
Rates are " normal ". 16% during Carter days.
@chrisgreene9745
Then the problem is the home prices.16% with a home that cost 50k at the time sounds pretty good right now compared to 7% on a 600k home today.
@@chrisgreene9745 dumb dumb houses was like 25k to around 60k high end back then lol
I had a house in WA state and the school district never stopped taxing the living crap out the local residents. Bought a home for 275 they appraise it at 510 oh look your in another higher tax bracket lucky you!!!!!
@@arthurl.9985 Not when you pay cash for the home it isn't and more than half of buyers today are paying cash.
Remember the median house price includes a lot of McMansions and high cost city housing. Before getting discouraged look at the housing in your area. Don’t trust your bank on what you can afford. Take their estimate and cut that somewhere between 1/2 and 2/3rds unless you don’t need a car and like Mac and cheese for every meal. For example when I purchased my first house the bank said I could afford a $220,000 house. I looked at my budget and what extra money I had above all my expenses and rent. I purchased an $82,000 house and was happy and not stressed over money.
Mac n Cheese dinners??? What a gen y!!! OK then you can save for the heart surgery after a few years down the road or the breast cancer!!! Case closed.
@@Wisdom-Nuggets-Tid-Bits I didn’t say I only ate Mac and cheese, I said to cut down what the bank says you can afford unless you only want to eat Mac and cheese because that is a cheap box meal. Boomer here by the way.
One of the main issues, home prices have risen but salaries have not kept pace. Sadly, young people cannot afford to buy their dream home, of
R it will take longer to be able to. Sad
Why is it "sad" that they cannot buy a home? Can't you see the mess of greed and Machiavellian intrigue the real estate world has become? A person would be crazy to want to get involved with it.
@@BillySBCwhat’s the alternative? Grossly overpaying rent or living with parents
I really worry about the next generation. I don't know how they are going to do it.
Dream home? Are you kidding? I wish I could afford a shit box
@@BillySBC What do you do for housing?
I’ve said this before but, homes come with a price. It’s a commitment. You may not get to buy the stuff you did before. You need to save for things that need fixing. It isn’t instant gratification but it’s an investment.
All investments take time and require effort.
Start small and when you get equity done the road sell for bigger if you need to. Families used to squeeze two adults and 5 kids into 2-3 bedrooms. But I have rented before and they raised the rent every 6 months by $100s
So true. Many first time buyers are buying large 4 bedroom homes and want to keep the same lifestyle they had before and not prioritizing saving.
@@cjc2 I was born right after the boomers so I learned a lot from their sacrifices. And most of them made a lot of sacrifices to end up with something
When I was a kid many of us in Florida didn’t have AC or had one window unit for the whole house.
What’s really ugly are the boomers or gen X who never made that commitment and now have no one and nothing
Bought my house in 2019 and felt like I overpaid a bit, now it looks like I stole it. The down side is going to be my property tax bill next year lol.
Be sure to file a homestead exemption to ensure you receive a discount on your property taxes
Your property taxes only go up 2% each year. Why would that be a large issue?
@@solice8844 Not in my state, it can go up a lot more.
@@solice8844that is state to state..... every state is different.
Thanks for the free information. I have bought and sold 3 homes over the years in South Florida. I just recently sold and am now renting. People tend to underestimate these costs. This is great information!
You're so welcome!
Most people believe that owning a home is way better than renting is this really true ? Oh I forgot to mention that I always rented I’ve never bought a home before but I like to watch real estate shows I’m learning a lot so far 😊
@@Eshabee Crunch the numbers. Don't forget closing costs, insurance, property taxes, HOA fees (if applicable), home maintenance, repairs (ac, roof), upgrades, etc. Also, consider your neighbors and neighborhood, schools, location, and the overall market in your area. Also, consider how easily or difficult it would be to sell your home if you ever wanted to. Do you want to 'stay put' for a while and make it your dream home (and possibly build wealth)? Or do you want to have the freedom to move after a lease expires? It's a big decision. Take your time to decide.
People are not willing to give up their lifestyle. Or to even adjust it a little bit. With some minor adjustments in spending habits, more people could afford a home more easily.
Correct. This is exactly what I was thinking. Homes ARE more expensive. I think RE agents are also to blame for the price of homes to an extent too. HOWEVER, the lifestyle choices most people are making these days is ridiculous. New cars every few years, brand new clothing, goodie bags for kids birthdays, buying new sh*t for their kids constantly, getting new furniture every few years, Target trips every week, Starbucks. It's all so ridiculous. If Americans cut out most of that garbage they would probably be okay.
Very true but inflation making it much harder as well and the price of gas. Living within your means isn't easy when everyone seems to be keeping up with the Jones's. But even for those of us not in a ton of debt without a double income this seems damn near impossible.
Thats a lie, i make 65k a year as a union job and there is no way i can afford a house in nyc or within a 40 mile radius so im able to drive incase it came to be. And im not making the mistake ive seen others do and be house poor since more then 50% of their income goes towards their house.
As a long time homeowner. I have a 'house' account just for repairs, and maintenance. This account is separate from my ER fund that everyone advises people to have. Some people have an account that is called a 'sinking' fund, rightfully so, for home repairs. A new AC & heating unit can cost $15 K in states like Arizona. A heating unit in Northern states starts at $10.
For my house repair account I put from 2 to 4% of my homes value in this account and keep it there always. I add to it regularly. If I have to use it for said repairs, once they are done. I immediately start by replenishing it. I know new home buyers are broke, but if they want to stay in the homeowners game, they are going to have to have one of these accounts which has been a LIFESAVER.
It's all bad news across the board for for people that bought a home 2 to 3 years ago. I know for sure that I would not be able to afford to get into a mortgage in my local area right now like I did back in 2012. My mortgage was $170k at 3.5% interest for a 1556sq ft new construction home back in 2012. So my $72k per year salary is OK for a $1200 per month payment (everything included). Now a similar new home home in my area (San Antonio, far west side) is $340k or more! Same size house! That is just insane. There's no way I could pay for that mortgage. Heck, two bedroom apartments are now $1200 per month in my area, which is my current mortgage payment. Something has to give!
Congrats. You obviously picked the right neighborhood.
@@jaylewis5035 I'm very blessed and humble to get into my home with my wife and daughter at that time. Now we have a son, so it's just us 4. We have about $97k left in our mortgage since we pay bi weekly and pay an extra $145 every month towards the principal. We'll should be done in about 10 years, and I'll be about 58 years old if everything works out well. I hope that one day we can fix this housing situation for current and future generations. It's tough out there.
In Tampa, a 2-bdrm apartment goes for $2300 a month. Consider yourself lucky to live in San Antonio.
@@theRetainer Yeah that's insane. Even back early 2003 I knew that I didn't want to keep living in Miami south FL. The houses were already very expensive even then. Now they are astronomical. That's why I left California too 😅
@@theRetainera 1b/1bt is 2200 in DC Metro.
I think people forget about ALL the expenses involved in home ownership:
Principal
Interest
Insurance
HOA
Specials
Lawn/landscaping
Maids
Routines maintenance (est. 1% of home value annually)
All utilities
@@Rew123 You can do without the maids if you’re willing to do the work yourself.
Property taxes are another big expense.
@@Lourdes-A. Oof, of course, forgot about that huge one.
If you move into a development you also have HOA fees that increase in costs.
Real estate prices are out of control.
These are some of the critical facts. Apart from these facts and figures, Imagine the cost, the impact these manipulations in the markets have on people's lives and well being. It is absolutely tragic and it is intentional.
Jackie, I wanted to just take the time and thank you for your sound council! I wish I could hire you, but your channel is just as good! You are a no nonsense realtor that has the buyers best interests at heart. I have already encountered a realtor that only cared about their commission. Your honesty and integrity comes through to your audience and I am so ever grateful!
Wow, thank you! That means a LOT!!! Appreciate you watching!
I would strongly suggest that you and your family significantly out earn the cost of ownership of anything you purchase . Especially a home, weather actively but preferably passively . I would go off doubling my mortgage if you and your family cannot comfortably under any external circumstances afford to double what your mortgage is leave it alone. This is a significant life altering decision that can either be a blessing or curse for your family . Your great Jackie!
I felt like I overpaid for my home in 1990. In the first few years of owning it, home prices were down a bit, then up. Now is it worth 4 times what I paid in 1990. I believe real estate statistics are best looked at over the long run, not the short term .
Agreed. Homes are way more expensive than ever in history compared to the salaries. This is the least affordable market ever.
Correct, real estate is a long-term investment. Natural inflation will make you investment worth it!
"Long term strategy" only works if you survive until then. People aren't just choosing not to stay in their home. They are being priced out of affordability so they either 1) resolve themselves to never buying a home or 2) go for it and then end up in financial turmoil.
@dotcom721 haha right
@@matthewphillips5483 can you please tell me what is the counter. Just a base $1500/month in rent is $540,000 in 30 years. That’s not even including inflation.
Wow, I am impressed. You have put together an interesting channel of interest to many. Thanks
The size of the average new house has gotten ridiculous. Not only are new homes oversized but they are poorly built. I know an electrician that has worked fixing issues in these newer developments. He tells me the mass produced housing is junk.
To be fair, 60% of people don't use a budget, so this statistic shouldn't be surprising regardless of the market cycle.
Tis true also have to figure in college debt, car payments and streaming services where is the money going to. Kids or no kids all those things come into play.
I would say :many people are in love with the thought of purchasing a palatial estate! Unfortunately...going "back"(?) to the GHETTO may be the affordable answer(s),and suffering as one buys !! You want to eliminate the (for-profit) Housing Authority from Section 8(ing),vouchering ,and transform neighborhoods BACK to GLORY? This is it! You can purchase at a fraction! Getting in on the "ground floor" so to speak! This would eventually force or Tax -out the riff raff,but it will take "Terra Forming Colonies" and the fruition of time to muster the initial-torrential storms...
Plant those Flags!😊
Jackie, you are crushing it. Thanks for the data 👍
Thank you!! Glad you find it helpful!
Is a very sad situation. I was ready to buy and put a pause on the home search. I did my homework, asked questions and two realtors were saying what HO crisis ? Oh no it will go up then go down the following year etc…. 😮😮 I decided to rent for now and saving a lot more money!
Another great and informative video. Thanks Jackie
You're welcome!
Well the important thing to remember is that when low interest rates cause a wide gap to grow between the median income and the median home price, it always corrects sooner or later. Unfortunately it never corrects by sharply increasing incomes. Historically it usually corrects the other way.
You are right about that. Hopefully a correction will happen soon!
It kind of goes without saying that you will be paying taxes on the home even after you pay off the mortgage and maintenance costs that you didn't expect. "The Money Pit" is so spot on :). In WA state where I live the county and state never saw a tax that didn't approve EVER!!!!!.
I was concerned about this back in 2021. So many people got into bidding wars blindly because they "could afford it" and were being egged on. Now inflation has caused all other expenses like groceries and insurance to skyrocket.
Mortgage interest rates in the 80’s were 11-14%. No one ever mentions that.
Yes, but compared to salary they were still more affordable! I moved across the country to be comfortable and secure with the financials of home ownership. I understand most people do not want to do this, but it is still possible, keep your options open!
Houses also cost like $2 and a bag of corn.
True. Though everything wasn't insanely over priced an big then
All new married couples in the 1980s were buying homes
So, the advice is great. Do a lot of homework on the house you want to buy. Only problem is that in many markets THERE IS NO TIME OR WAY TO DO THIS BECAUSE YOU ARE COMPETING WITH MULTIPLE OFFERS AND HAVE TO ENGAGE IN BIDDING WARS IF YOU WANT A HOUSE. HOUSES ARE SELLING RIGHT AWAY. THIS IS STILL GOING ON. AND NOW ALL CASH INVESTORS ARE PILING BACK IN AND CREATING MORE COMPETITION IN ALREADY OVERHEATED MARKETS. I don't get it. It is insane. I guess too many people are okay with it because it keeps getting worse.
Thank you for your sobering notes to home buyers nowadays.
The other day some VERY competitive buyers paid $70k over asking price!
It amazes me that this is still going on.
Astute buyers who understand getting in before the prices skyrocket.
@@nickyfurlano8531 they already did skyrocket
Buying a home in today's market is like buying stocks at their peak price. They are going to go down not up! You will owe more than it's worth. People never learn this though!
When I lost my high paying engineering job and skipped payments for 3 months, my mortgage company sent me a warning letter. I remember the envelope had a window in it and the letter within was red. They told me I now have to double my payments for the 3 months or they were going to foreclose on my house. They didn't offer to put them on the back end of the loan or a loan modification. I had to find a way to scramble up the money or I'm out. So I rented all the rooms out and got a job delivering pizza. So I didn't lose the house.
They wanted 220k for my house and I got it for 178k, locked in at 2.9% interest in a great neighborhood - suddenly I feel so lucky watching your videos! My homeowner's insurance went down, I switched to an insurance company that only insures PA residents, which has saved me a lot of money!
4 weeks after closing on a dream home for my family … I was injured and deemed disabled by social security 2 years later. Dream turned into a nightmare and it’s been an absolute miracle that we’re still even living here … we still have a $330K mortgage … it’s just a matter of time till we lose this home / are forced to sell. 😢
I'm so sorry to hear that!
Glad my payments are not huge. Since being disabled... luckily my VA is enough to help with payments. Floating not sinking.
Almost every home buyer regrets buying their home initially.
I’m not sure about that. Yes, the people that have not planned and are not willing to give a little and are unrealistic. Probably will regret it. And even the people that plan sometimes do get some surprises. But if everything goes relatively right, I think people enjoy the house. But sometimes you have to make some sacrifices and if they’re not willing to do that, then they probably won’t like the maintenance responsibilities of a house.
We thought (and still do after almost 30 years) the house we bought was great! We planned and bought what we could AFFORD.
Its wonderful if you buy what you can really afford. Those who keep up with the Jones's deserve everything they get, because the Jones's live on credit.
Not me, I bought during the housing crash and I'd be paying twice as much as my mortgage is now if I was renting.
Depends when you buy and how your deal is. Did you overpay for what the home was worth or did you get a fair deal.
love your way of looking out for buyers
Thanks. I really am an advocate for my clients.
I just bought a new home in Southern CA and the 2 laws i love are 1 was what Jackie brought up was the 2 percent tax increase and any New property must have solar. I don't pay for electricity and i make money during the summer months.
Considering the growth of subscription services for almost everything along with the ability to buy everything with 0% down payment credit for every kind of purchase,I can’t imagine how you can qualify for a home without making sacrifices.
One of the fortunate, bought a home that needed work for cash. Still, the taxes and insurance are crazy
Jackie, when people compare median homes during the 60s - 80s, I always wonder if they are looking at comparable houses. Back in the day, we had Formica countertops, linoleum floors, 1 bathroom, 2-3 bedrooms. The lots were relatively large, but the houses were small by today’s standards. Now houses take up most of the lots, have multiple bathrooms, great rooms, granite countertops, wiring to support modern electronics, etc. May it is the equivalent, but I sometimes think we had beer tastes back then, but new houses today are much more champagne. Just curious about your thoughts.
THANK YOU THANK YOU THANK YOU!!!! For having a NJ real estate channel. Every real estate channel I find only talks about Texas and California.. meanwhile, the real estate market is SO different here in the NE.
OMG you are so welcome!!!
Bought in 2023. Dont regret switching from a renter to an owner. No more dealing with surprise inspections and a nosy landlord.
They never polled me.
Same. I’m a year into my first property after renting my entire life. Watching this video makes me realize how I dodged a major bullet to have even made it this far!
Congrats
This is why people want to own instead of renting. Congratulations.
How do you feel about the "tiny home" movement? If you've had experience with that. I am sure it comes with a set of other issues but it may be more affordable for those who want to buy.
I don't have experience with that but I recommend watching Kristina Smallhorn's channel. She talks all about that.
i recommend some builders having new house offers as low as interest rate as low as 5.75% , and actually my daughter with her husband's salary of 200,000+ annually is just and some of their friends, so my son can still afford, so I recommend before getting a house you should enough money to pay it here in California
And the rubber is going to hit the road and at least 30% of these will end in foreclosure as the housing bubble starts to pop. In four years, houses in my ghetto were going for 30 to 40k pre-COVID. Post Covid, four years later, they're selling for 250-350k. It's absolutely ridiculous.
They selling sheds.now for 150k lol
It definitely pinched at first but then I looked at local rental costs and breathed a huge sigh of relief because it would be more to rent a smaller apartment with no yard. And then I got a promotion. Then my spouse got a couple of promotions. And we bought when interest was low. No regrets.
When the market prices drop 60% how many banks will fail? Over 300 banks are insolvent now.
Great video Jackie but i am more interested in crypto currency investment than real estate investment..The introduction of a Bitcoin ETF marks a groundbreaking moment in the cryptocurrency world, merging digital currencies with traditional investment methods. This innovation could stabilize Bitcoin prices and broaden its appeal to a wider range of investors, potentially increasing demand and value. At the heart of this evolution is Franca Wellis, whose deep understanding of both cryptocurrency and traditional trading has been instrumental. Her holistic approach to investment and commitment to staying abreast of market trends make her an invaluable ally in navigating this new era in cryptocurrency investment..
The wisest thought that is in everyone's minds today is to invest in different income flows that do not depend on the government, especially with the current economic crisis around the world. This is still a good time to invest in gold, silver and digital currencies (BTC, ETH... Stock)
Yes exactly, You're right but all thanks to Franca wellis,I really appreciate her efforts and transparency..
I remember giving her my first savings $20000 and she opened a brokerage account for me it turned out to be the best thing that ever happened to me.
This is a definition of God's unending provisions for his people. God remains faithful to his words. I receive this for my household.🙏🙏
YES!! That's exactly her name (Franca Wellis) so many people have recommended highly about her and am just starting with her from Vienna, Austria 🇦🇹
People have increasingly turned to leasing cars instead of buying them, and a similar trend is about to unfold in the housing market.
Also needed to include HOA fees and that they also increase at times. In Florida we have HOA fees and in many subdivisions also a CDD fee (community development fee) and that is a assessment added to your property taxes in the thousands per year.
Where is this. Here homes go for 350k and they are under 2000 square feet. I'm just grateful we found something way under our budget, with a nightmare demanding landlord who kept bumping rent up over and over, (any repair meant a increase!) and kids needing better schools. School zone was priority number 1 for us.
Yeah, we need to fix this whole american penchant to tie housing to school funding/zoning. What a dumb and hateful/classist system. It creates self-sorting, perverse incentives. It also artificially creates bidding wars, since people tend to be neurotic/price inelastic about the perception of safety/value of their children schooling.
7% interest doesn't help
It DOES help... it helps A LOT... It forces the prices down. Let's have 14% interest with 25% Down. Let's make buying a home a real unattractive thing to do, and then let the sellers take the hit for once. Can't you see that the low interest rates and "no money down" nonsense is what's caused all of this?
@@BillySBC I think your right I ask people I work with do you have a large size downpayment they look at me like I insulted them not 10 or 20 G's No where close to 10% of the homes they are looking to purchase
@@bartsullivan4866 And that's a big problem, because that's what caused a lot of the "Flipping" to occur in the first place, people being able to leverage large amounts of money and real estate without any money down. The only reason someone would want to leverage all that property with no money down is to turn around and flip it for profit, they have no intention of living there. Let's go back to where we came from with Real Estate, you have to have a sizeable downpayment, and we need bigtime Anti-Flipping Laws that drastically discourage sale of a home within 5 years of purchase.
@billySBC but it isn't. No one is dropping prices, at least not in Ohio
@@SC-pf3iu Well... then perhaps they would like a taste of 10% Interest and 25% Downpayment to help them see the light?
Surprised it's only 43%. It was obviously time to sell, not buy. FOMO has consequences!
Thank you Jackie 🙏👍🙋♀️as always very helpful and informative. I appreciate your dedication and the research you do to help keep us in the loop.
You are so welcome! Glad you find it helpful!
As someone who has been on the sidelines doing all the right things (zero debt, aggressive saving, modest entertainment, etc.) and isn't any closer to buying a home now than I was several years ago, I think many people of my income level may have to admit personal homeownership is something of a pipe dream now and we need to figure out something else to do with our money. Not having money tied up in a piece of real estate means you can invest it in other ways and more opportunities to diversify than having everything wrapped up in this one building you have to maintain yourself constantly. And while a lot of things about renting suck, the tradeoff that your responsibility level is dramatically lower makes it an easier pill to swallow. Pay rent on time, respect the property, and don't bug your neighbors is pretty much all you've got to do.
Or you just have to gamble a little and make It work...buy something good enough that you'll be happy living in over 5 yrs
What a blessing to hv found this channel!
Glad you’re here!
@@JackieBaker so am I miss Jackie!! Thank you! 😊
If we would’ve bought a home in 2023, we would be BROKE today. If you don’t need a house don’t buy one. My in-laws keep pressuring us to buy a home not knowing how expensive everything is for young adults. I’ll wait till things cool off.
Report just came out and said 1000$ mortgage increase in Adjustable mortgages...wow
Not shocked! I’m a large lender, can’t begin to tell you how many loans are approved under DU/LPA at nearly 50% gross income.
Think about that, you make 10k gross a month, your mortgage payment including taxes& insurance is 4,999 a month when your net income bring home is probably about 7k. These real estate agents have no idea but the loan person does. I do!
Jackie, I live in Fort Lee/Palisades Park. A small starter home here in my neighborhood is easily above 700K, which I find ridiculous. I am already commuting 1.5 hours one way to downtown and I don’t see myself ever owning a home here in Jersey.
I always haggle with home owner's insurance as well as raise deductibles, We also have the double homestead exemption, Got a refund from the lender when we went to the tax assessor's office and claimed the exemption. Once we turn 65 property tax freezes as does with 100% disabled vets, current military. We've overpaid the principal ever since the first payment was due so we've knocked many years off the life of the mortgage. They also assess on purchase price NOT appreciation, tax is also capped at like 2.5%
North Texas house insurance went up 41% car insurance 32 % In the last year.From 2017 to 2022 my house appreciated 214%. The price keeps going up eveey month.
Wow! That's crazy!
I like watching your videos about real estate facts. Thank you for your research.
I appreciate that! Thanks for watching!
Especially when the price of everything went up and continuing......no or barely have any leftover cash. This mean, no money for any home repair
That's when people max out their credit cards, or take out second mortgages on whatever equity they may have built up.
The tax and insurance is the killer. I bought my house ten years ago before the housing market exploded, I pay 200 dollars more now and that’s with my PMI being taken off like 3 years ago.
I just sold a big house and received asking price (downsized). I am thanking my lucky stars to get out of the $20K per year property taxes. 🙏 It turned out to be a great investment, but I think I almost missed the window. Similar homes in the same neighborhood are now cutting prices.
You dodged a huge bullet, good job boomer!!
Great video, but...
To say house prices are growing double the rate of inflation is disingenuous. The government inflation statistics are generally half of what real people experience in the real world (Chapwood index, Shadow stats, etc). So housing is keeping up with inflation when you measure it fairly. Also, the median home from the 1960s and the median home from the 2020s aren't comparable. Houses now are much bigger and more luxurious than they were back then; this is possibly the biggest reason people are struggling.
But. How are they doing it? We just put in a bid for a house that went above asking. It’s such a crazy selling market, I don’t understand. 80% of homes going up in my town are contingent in days. Houses that would have been 100k less 4 or 5 years ago..
As a Canadian you Americans still pay only about half of what we do for a home Americans can still own a home right now Canadians can’t ! Count yourself lucky.
I like the Dave Ramsey advice of doing only a 15 year loan and make sure the payment is about 25% of your take home. That means, save cash for down payment, wait until you have lots of equity to roll and get creative with living options.
Impossible now with the median price of homes inching closer to 500k
@@rickyayymove where median home prices are lower
Local Taxes: The value of your house goes up, so the taxes you pay increase. So the local tax man gets a windfall. But that's not enough for them, they will raise rates on top of that.
I had loved ones - pressuring me to buy a home and I wish I did it before, however for now I'm content with seeing how situation are playing out.
Always go with your gut!
Very informative video! Thanks.
You're welcome!
Great video! Very informative video about Real Estate, the related tax, hidden costs and urgent costs.
My friend just had to have a house. I told her not to buy one. She did. 4 years later she is getting foreclosed upon. Sucks for her, but some Americans are just so financially illiterate and think they HAVE to own a house.
They need to bring back Land Contract buying... That helps to minimize any unforeseen interest charges, and is easier on both the seller and the buyer.
It scares me that some of these loans are being underwritten. It's like 2007 all over again (almost). Hopefully these overburdened recent homebuyers can sell or get their incomes up.