Reasons You Should Not Buy A Home!
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- เผยแพร่เมื่อ 12 พ.ย. 2023
- Reasons You Should Not Buy A Home!
Top Reasons not to Purchase a Property!
This video discusses reasons not to purchase a home especially in today's economy. Purchasing a home is a big decision. Often times, people buy a property prematurely creating financial stress for themselves. This video warns against some of these pitfalls.
Video on Buyer/Seller Closing Costs:
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Buyer's Remorse article by National Association of Realtors:
www.nar.realtor/magazine/real...
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Staging your home Checklist:
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Avoid a Bad Home Inspection Checklist:
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💁♀️ My name is Audra Lambert. I am a realtor in Orange County, California. I have lived here most of my life. I have over 20 years experience! I love what I do and Love where I live! Most importantly I enjoy helping people as they transition into their next homes.
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I can put down 40%, have excellent credit scores, can afford all maintenance costs and I still would NOT buy a house until home prices correct. It is a wise financial decision.
Great job by the way! Sounds like you have a good handle on "things." Always good to be financially wise. Let me know when you purchase a home. Patience is the name of the game in investing. You'll know when its the right time:)
@@AudraLambert My home buying and selling would be so much better if you were representing these transactions. I'm across the country in FL and have seen so much change in the housing market throughout the past 2 years and my patience is wearing thin. So grateful to have learned how to navigate it all from your videos. Thank you.
I think you advise people correctly. I hope you get clients because you are honest. I appreciate it.
That’s not for everyone, what’s not for you don’t mean it’s not for someone else.
And in the mean time keep paying off my mortgage
Everyone is different. One reason why one might want to buy is because the buyer pool is smaller and IF you can find a deal or motivated seller, why not? You can always refi down later.
Yes, of course. I am a huge advocate of purchasing real estate...but I would make sure you can afford it. I purchase a. an investment property the beginning of this year with the intent of refinancing when rates drop. Well, they haven't dropped...still waiting. The real estate market is difficult to predict...so many factors effecting it. If you have the finances and find the right property, go for it. Always a good idea to invest in real estate. thanks for your comment.
Loved this video 🎉
All true and teaching my younger ones to WAIT and not strap yourself is a good point. Plus maintaining a house is an eye opener. Especially w/ security, gates, lawn care, HVAC, plumbing, drainage issues yikes!! Get your self a Realtor will go VOICE for you and not strap on all those inspection TO DO’s plus more to do’s when you move in because rhen it’s TOO LATE😅. Thank you! Watched all your videos. Perfectly taught!!
Thank you so much! Yes, I think most new buyers think they buy a house and make a lot of money. As you pointed out, it costs a lot of money to maintain. Good t have these conversatoins with the younger generation. Thanks so much for you kind words. Means a lot!
Best Realtor bar none on my youtube circle!
Ahhh...thanks so much!! Really appreciate your continued support. Means a lot!
Audra...I wish to thank you so much for sharing your incomparable knowledge with regards to real estate. I miss having my own home but realize the repair
costs, upkeep, etc. are beyond my Husband's and my means. I see so many
younger folks looking at property without having the knowledge of a buildings
quality, inherent problems etc. So, I direct them, when I can to your vlogs on
youtube. Thank you again, and, who knows, I may win the lottery!!
Ahhh...that is so nice. I wish a home for you someday. I play the lottery too. Home ownership is expensive. A lot of younger buyers don't realize the cost of maintaining a home and what could potentially go wrong. Really appreciate your support. Best of luck to you and your husband. I truly do value your feedback..thank you.
Great vid! Audra. Really informative, well done! You’re sophisticated, honest & knowledgeable. Thats a few thoughts that came across watching this vid.👏🏼👏🏼👏🏼
Ahhh...thanks!! Appreciate the support!
I would never do a variable rate ever. That rate could go sky high and the mortgage will go go up. paying more on your principal is the best thing you can do. Even one hundred extra a month will help you pay the house off fast.
Great point. Thanks for your comment. Have a great rest of your weekend.
TY for your astute advice.
Of course...thanks so much for watching!
Once again Thank you!
ahhh...you are so very welcome!! Happy to help!!
Thank you for sharing this information 🌸
Yes, of course! Glad you got some value and thanks for watching!
Being the King of your Castle....................is great , although renting an apt has its benefits too , except the rent keeps going up! Who can retire renting????
I completely agree with you. The positive to home ownership is at least your costs are fixed (if you're not on a variable mortgage). I hear ya about retiring!!
Thank you so much for the valuable information
So nice of you...happy to help.
wow -- I really appreciate your information and your genuine openness and care for others.
I really appreciate your kind comment. Means a lot!!
I love your honesty! It says a lot about you. Great points. 😊
Thanks so much! Your comment means a lot to me. Really😀
Thanks for the great information. Always useful information.
Glad it was helpful! Thanks for watching.
Thank so much for all of your professional opinions! ✨👍
You are so very welcome! I am glad that I can help!
I am so glad I found your videos! I have learned so much and have become addicted to watching your videos.
I'm so glad! Thanks so much for watching. Glad I could help!
You hit your 5k goal! 🎉🎉🎉
🎉so exciting! Thanks for noticing!!
can you please put up a video on how to sell your house and move into a different state on the other side of the country.?
what to watch out for...how to choose an agent...any insight is greatly appreciated ... thank you.
Yes, of course. Moving across the country is a big job. Hiring the right agent is essential. I would always interview 3 agents minimum for selling or buying. Sounds exciting.
i really love your videos Audra
Ahh..thanks so much! Means the world to me.
Audra you are fantastic ! I learned a lot from this video. Thank you so much 👏🏻💖
I am so happy you found some value. Glad you learned some "things." Appreciate you watching my video 😀
Nothing could be further from the truth. Today’s home prices will more than double in the next 10 years. Buying a home has always been and always will be the best investment you can make. The tax benefits are also a reason to own instead of renting. So, unless your income also doubles in ten years you won’t be able to afford buying a house then either.
Yes, there are a lot of very overpriced homes on the market but in a couple of years they won’t be overpriced because we are in and always will be in a hyperinflation era and it’s on an exponential scale.
The US government will continue increased spending because there is no other way to pay for all the wars and disasters and increased benefits.
I guess I should also disclose that I am a CA and NV real estate broker.
Robert, the broker, I think you are missing the entire theme of the video: Don't purchase if you can't afford real estate. There is a time and place for potential home buyers to purchase with the proper savings and understanding as to what the financial commitments are when purchasing. If homebuyers are over leveraged and can barely skimp by...not a good idea (I think you can agree). I think purchasing a home in a good location, in a good neighborhood, and putting a reasonable amount down when it makes sense to do so is sage advice. I don't think you are advocating purchasing a home if you can barely make the mortgage the payment. I am seeing a lot of first time home buyers qualifying with two incomes who can barely afford their monthly payment...if one looses their job...Trouble. That is all the video is warning against. I do agree that home ownership is a tremendous investment...especially if you hold for 10 years or more (another recommendation I made in the video). Homes may seem over priced today...but I am confident in 10 years the prices of home today will seem like a deal. Appreciate your comment...I do think we are closer in our perspectives than you think:)
Audra im in a divorce right now .what do you suggest about selling the house in this situation or get a equity loan out ?
You did bring up a good point about buyers remorse, in that maybe they didn't check out the neighborhood first, before falling in love with the granite countertops. Drive the neighborhood on different days and times. Better yet, walk it. Go to the local banks and grocery stores. Do you feel comfortable with your potential new neighborhood? Check crime stats on the web.
Once you buy a house, and then find out your nextdoor neighbor has loud motorcycle parties every weekend, it's too late. 😁
Hi Jimmy, all those are very good points to consider when purchasing a home. Regarding neighbors with loud motorcycles, that should be disclosed. Its called neighborhood nuisances. I wouldn't trust any seller, though...I would be checking out the area regularly before closing on it. Great points.
Another creative financing is assumable mortgages. I have a VA loan at 2.625% (assumable by non veterans). Purchased with zero money down. Home is gorgeous but if I were to try to sell it to unassuming buyers they would be shopping for a 7.5% - 8% mortgage with 5-20% down, plus closing costs and be unable to afford it. I sold my previous home and instead of paying off my 440k home, I’m putting that in Treasury mutual fund not state taxed or 5.5% CDs , writing off my mortgage interest and property taxes on my federal tax forms. I also have a very marketable home I could get rid of any day of the week if I ever need to sell it right away because I have an assumable mortgage with an excellent APR% 2.625 with little to no money down. Just take over mortgage and pay me the difference in equity since Feb 2021.
Do you have any buyer agent experience with FHA/VA assumable mortgages for your clients? Maybe assumable mortgages could be a topic when mortgage rates are so cost prohibitive now.
Hi Jennifer, where do you live? I love the idea of assumable loan...super cool for you and the buyer. What I don't like is the "Subject to the existing Mortgage" deals. I will do a video on it soon. Very risky for the seller. You are in a good place. Your home will go quickly because I am sure its amazing...but more importantly the financing is very attractive to buyers. Well done!! Very happy for you!!
What's your experience about mobile homes? Do they usually increase or decrease in value with time just like an RV? In my opinion, they go down in value because they're like a movable personal property.
Yes, I agree. Mobile homes typically depreciate over time. Mobile home park owners are the ones making the profit.
I like your advice except regarding using an ARM for financing. The buyer cannot be certain that a refinance will be possible down the road. If the home value drops, which can happen, then the loan to value might not work for a refinance. The buyer would be in a pickle.
Yes, I agree...That is something you, as the buyers should consider. You cannot predict what is going to happen in 7-10 years down the road. However, I do think its a good idea to plan for the worst. Don't get too leveraged where you are just skimping to get by. After 5,7,10 years of using an ARM product, I would be saving, buying down the mortgage and/or investing in money markets that yield a higher return if possible. There is risk in any investment you make, you just have to evaluate and understand the downsides.
NEVER BELOW 20% DOWNPAYMENT DON'T PAY PMI. DON'T BE SILLY. SELL ANYTHING TO MAKE THE DIFFERENCE UP.
Not bad advice. Thanks for commenting.
Interest-only mortgages appear to be a gimmick to keep monthly payments low. Just paying interest means that the homeowner is not building up any equity in the property.
Yes, but that is why you pay down your principle every month. Whatever your 30 year fixed payment would have been, pay that same amount towards your interest only payment. You will pay off your house quicker...have more control over your mortgage payment, and won't have to pay recast fees or hassle. You will have to be responsible with paying your principle every month to have it work. Works for me...its not for everyone. The key is, you HAVE TO pay down your principle. The good news, you actually can pay down your principle directly and get a lower payment the next month...giving you even more money to apply to your principle. The downfall to interest only mortgages is most aren't award of the downsides. You gotta be responsible with this type of mortgage.
I'm hoping there will be a housing crisis so I can buy cheaply when I sell a few houses in 2024. As a backup plan, I've been thinking about purchasing stocks. What advice do you have for choosing the best buying time? On the one hand, I continue to read and see trading earnings of over $500k each week. On the other side, I keep hearing that the market is out of control and experiencing a dead cat bounce. Why does this happen?
You're not doing anything wrong; you simply lack the expertise necessary to make money in a bad market. In these difficult circumstances, only really skilled experts who were forced to witness the 2008 financial crisis could expect to generate a large wage.
There are true professionals at the top of their game; I had the pleasure of dealing with one, and it turned out to be really helpful as they assisted me in restructuring my complete portfolio. Margaret Johnson Arndt, a well-known professional in her field who you may be familiar with, is none other than my advisor.
Thank you for this tip. It was easy to find your coach. Did my due diligence on her before scheduling a phone call with her. She seems proficient considering her resume.
Hello there! I think a lot of people out there want a housing correction so they can afford t jump back in the market. No one really knows. The biggest issues we have in housing is the low inventory situation we are in right now. So many homeowners have low mortgage rates and are not going to sell...they are hunkering down...creating more inventory shortages. The 2008 market correction was due to an oversupply of housing inventory. I just don't see that happing. There are always market shifts and volatility...however, we are more aware of it because its definitely heightened over the last 3 years. I thinks its always a good idea to diversify and make investment with the long term in sight. I honestly don't research stocks...I have a financial advisor who invest for me. I let the experts do what they do best.
Reality Check--Landlords do not pay expenses on their rental units--their tenants do ! Always best to be an owner.
I do agree that owning real estate is a good idea for most. My concern is that a lot of buyers shouldn't be buying. I am on the ground selling real estate and these buyers are not getting good direction regarding their finances. Not having well qualified homeowners in a property who are over leveraged or are barely able to make their mortgage payment, is not good for anyone in the housing market. The last three years in real estate have been glorious for home ownership. I just want to caution against the housing hipe for newer homeowners...this market will probably not continue like it has. Regarding landlords not pay expenses on their rental units, in. my area we do. The tenant pays for utilities, but landlords pay for landscaping, maintenance of the home, property taxes, HOA dues, pest control, and any repairs. Thanks for commenting!
@@AudraLambert Greeting Audra- Thank you for the comment--I agree except, that as a landlord, when HOA, Insurance & property taxes are increased, the rents get increased to cover these expenses. Secondarily, advise to Young Americans; --Be careful ( thorough consideration) with commitments--Marriage, bearing children & major purchases (real estate).
@@paulbrungardt9823 Yes, I agree with you. Very good points!!
Hi Audra. What would your recommendation be to a senior who is retiring this year and moving to another state? Should they purchase a condo/house or rent an apartment? Thank you.
Hello there! Everyone's situation is different. Depends on your financial strength, the area you want to live, your health etc. Obviously keeping costs lower is important. Some rents are outrageous making buying a house more desirable...and visa versa. I honestly would see the advice from a trusted advisor. Wish I could be of more help...there are just too many variables. Best of luck either way.
Maybe none of the above. Buy land. Build a cabin or have help building or have it built. Location remote? Trade car or sell, buy a truck. All of planning is regarding affordability. Rent is ballistic, buying at these prices is twisted, condo / HOA is horrific! I have seen people just keep a small home, very small, and pack up an RV (just purchased in great shape?) and explore - more!
Live by your new rules, life is short, Live it! Don’t just get through it!
I think the home buyers in the villages where I'm going to go, need to watch this as they buy and sell within 1 to 2 years on many of them!
I agree...homeowners don't realize how expensive it is t sell their home. Thanks for your comment.
Owning a house isn't what it used to be - just getting contractors seems horrible , world is shit these days
Well, I do agree a lot has changed...and a lot of that change is not so good.
sometimes you dont until you move in,,,thats to easy to say.
Everyone's situation is different. Moving in general isn't easy.
Don't buy homes with lake thaho trees around I pay 10,000 for 3 pine trees so only on homes that have 15 ft high is ok 20 ok too no more we need the trees for cleaning the air we breathe so don't cut tree we don't live in desert
Thanks for commenting!!
Put only 3% only 😮
If you can do it:)
5 year fixed rate is ok
Everyone's situation is different. Just remember that after 5 years, the rates will change to variable unless you refinance...which also costs money.
Don't buy rate down you will regret it later you will foreclose too much later
I am not a big fan of buying down rates....just saying. Its expensive.
Americans are so ingrained to buy a house that there’s nothing you can say to them to stop.
They will bend facts to make it sound like a good idea.
To me, it’s simple, just enter all the numbers into a mortgage calculator (make sure it’s all filled out), and it will show me that i will end up paying over 1.2 M on a 400k house over a 30 year old period. (Btw, this includes expected maintenance cost on the low end). Even if I subtract the money I “could have paid” for rent from it (which will be about 900k) I would spend an extra 300k on the house. So subtract that from the price I would expect to sell your house for in 30 years (let’s say 1M). That equals to ONLY 700k in profit.
Ok let’s say instead, i rent an apartment of even a bigger square footage and pay about 3k a month. And since I will have about $1300 extra a month I don’t have to spend on maintenance or taxes, I’d invest that into my 401k. (In this calculation, I won’t have any left to put in my 401k if I got a mortgage). According to fidelity, I will have 1.9 M by the end of 30 years.
Sooooo…… I will make 1.2 M more by renting than buying a 400k house. Not to say I can’t even find a 400k house around me. (Houses around me are 650k and above).
Also, I’d rather “invest” my money on my kids education , health , and experience than live miserably now and pay money on medical bills or my kids’ behavior later.
Hello there! Home ownership isn't for everyone. My math works differently out here in California. Heck, people out here have made over $1.2m in just holding their homes for a few years. It really depends on where you purchasing your home. In any investment, there are risk. Even renting is a royal pain in the neck and has its downsides. You were basing your calculations on renting over a 30 year period and not calculating rent increase (I am assuming) or moving costs....and dealing with horrible landlords that don't come out to fix the property. In my area, rents have doubled in the last two years. Hard to predict that! I am not sure you are calculating increased rent payments in there...nor having to move multiple times over 30 years (moving is very inconvenient and expensive). What I do like about a 30 year mortgage is that your payments are fixed (unlike rents)...and you do get some write offs...and I love the $250/$500K capital gains exclusion that you get when selling. You pay no gains on your property if you are singe ($250k deduction) or file jointly ($500K deduction). 401Ks you are paying tax...I hate that. Can't say Fidelity has the best track record for predicting the value of your portfolio in 30 years...this is very hypothetical...no one can predict the value of your investments accurately...so I would be careful with vague predictions. I think its lovely that you would like to invest on your kid's education, health and experiences. Best of luck to you! Thanks for your comment.
WHY. rather. inform this person....that when one rents our property....most maintenance expenses are TAX deductible. This way this POOR home owner can get out of.....from under....stress for all the extra expenses of home ownership....a tenant pays monthly rent and one, home owner fix the home deficiencies (when one can $$$) WHY are we SsOOO judgemental.. ..by saying a person cannot own a home if one does NOT have LARGE DOWNPAYMENT!!! Yes. one can buy a home, yet one RENTS IT OUT!!! we cannot live in it. until. we acquire large equity and the home issues are solved or we sell and buy another home w/less challenges. and THUS. moving up the property ladder. WHY IS IT Real Estate Agents are NOT problem solvers. ir offer alternative solutions. and help one better our lives???? There are SOLUTIONS!!! THERE ARE ALTERNATIVES!!!
Yes, I hear you. There is a time and place for everything. I am just trying to give some caution out to home buyers who are being taken advantage of (getting them to purchase a home they cannot afford). Currently, we are top of the market, with the highest mortgage rates in over 20 years. If you can barely afford the property and/or struggle to cover repairs and the market turns or one losses their job they could potentially loose their investment. Lending institution will charge you a much higher mortgage rate if you put less down...they will charge you a higher mortgage rate for their risk. In my opinion, everyone should own a home but jumping into the market too soon or when those reserves aren't in place is very risky. Just trying to help out. Not trying to be judgmental...heck I've been there! There are programs out to help those who have a lower down payment...but these types of loans have additional fees..its a racket.
Next video 5 reasons why u shouldn't eat food.
Meanwhile she be like how many homes do u own?? Guy "4 all paid off"
She "can we go out for dinner"😅😅
Happy New year to you!