Why U.S. Real Estate Is So Flawed | CNBC Marathon
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- เผยแพร่เมื่อ 4 มิ.ย. 2024
- CNBC Marathon explores the problems with housing in America.
For decades, Americans have relied on mortgages to purchase a home. But experts say that several aspects of today’s mortgage market including cost, the lack of small-dollar loans and lender bias have all greatly hindered Americans from owning their own property. Can the U.S. do anything to fix the broken system and allow mortgages to improve homeownership in America?
And a decade-long slowdown in house building is coming to a close, which could help American renters. But the new developments in construction are generally for high-end and luxury apartment units. Experts say the market conditions are pushing people further away from their jobs and weighing on the economy writ large. CNBC takes a look at why renting is so expensive in the U.S.
The Covid pandemic caused a surge in housing costs and a rise in unemployment, leaving nearly 600,000 Americans unhoused in 2020. So how is the U.S. addressing the homelessness crisis and can the current housing first policy approach solve it?
CNBC Marathon brings together the best of CNBC’s coverage on America’s housing issues.
Chapters:
00:00 Introduction
00:39 Why The U.S. Mortgage Market Is Broken (Published May 2022)
13:51 Why Rent Is Rising In The U.S. (Published Dec. 13, 2021)
22:45 Why the U.S. Can’t Solve Homelessness (Published Jan. 2022)
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Why U.S. Real Estate Is So Flawed | CNBC Marathon
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I’m a new dad, I moved to the Bay Area a few years ago and I’m thinking of purchasing a single family home, but with real estate prices currently through the roof, is it still a good idea to buy a home or should I invest in stocks for now and just wait for a housing market correction? I heard Nvidia and AMD are strong buys.
it’s a personal decision, but according to Forbes, housing activities will remain stagnant for the most part of the year, so maybe hold off a little.
well you could put a downpayment on a home and as well diversify as much as you can into Ai and pharm. stocks like Pfizer and JnJ.
Certain Ai companies are rumoured to be overvalued and might cause a market correction, I’d suggest you go with a managed portfolio, but even those don’t perform so well, so it’s best you reach out to a proper fiduciary to guide you, that’s what works for my spouse and I.
this is all new to me, where do I find a fiduciary, can you recommend any?
'Vivian Carol Gioia' is the licensed advisor I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
As a realtor in my opinion, a housing market crash is imminent due to the high number of individuals who purchased homes above the asking price despite the low interest rates. These buyers find themselves in precarious situations as housing prices decline, leaving them without any equity. If they become unable to afford their homes, foreclosure becomes a likely outcome. Even attempting to sell would not yield any profits. This scenario is expected to impact a significant number of people, particularly in light of the anticipated surge in layoffs and the rapid increase in the cost of living.
I suggest you offset your real estate and get into stocks, A recession as bad it can be, provides good buying opportunities in the markets if you’re careful and it can also create volatility giving great short time buy and sell opportunities too. This is not financial advise but get buying, cash isn’t king at all in this time!
You are right! I’ve diversified my 450K portfolio across various market with the aid of an investment coach, I have been able to generate a little bit above $830k in net profit across high dividend yield stocks, ETF and bonds.
@@berkrix4312 Do you mind sharing info on the adviser who assisted you?
I personally work with 'Julie Anne Hoover’’ she covers things like investing, insurance, making sure retirement is well funded, going over tax benefits, ways to have a volatility buffer for investment risk. many things like that. Just take a look at her full name on the internet. She is well known so it shouldn't be hard to find her.
@@berkrix4312 I just Googled her name and her website came up right away. It looks interesting so far. I'm going to book a call with her and let you know how it goes. Thanks
In spite of how everyone is frightened and calling the crash, there is already an excessive amount of demand waiting to absorb it, which is another reason it's less likely to happen that way. This forecast was not made in 2008, at least not by the general public, as I will explain below. The ownership rate peaked in 2004, according to the other comment. We reached a peak in the second quarter of 2020 and are currently at the median level. From 2008 to 2012, it fell by 3%, and in the second quarter of 2020, it dropped from 68 to 65.
It's because they are used to bull markets, most people find it difficult to handle a decline, but if you know where to search and how to get around, you can make a sizeable profit. It depends on how you plan to enter and leave.
@Zahair O'Brian My portfolio has been in the gutter for the entire year, so I started researching new ways to profit in the market, but everything I tried just seemed to miss the mark. Please let us know the name of your financial advisor.
@Zahair O'Brian 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 résumé.
This comment makes no sense.
What demand? 😅😂 Even Zillow went broke flipping homes, and "prime-age homebuyers" are stretching their budgets above 30%😮
I suggest you offset your real estate and get into stocks, A recession as bad it can be, provides good buying opportunities in the markets if you’re careful and it can also create volatility giving great short time buy and sell opportunities too. This is not financial advise but get buying, cash isn’t king at all in this time!
One strategy for protecting against a recession is to buy equities. Investors, especially during a recession, need to know where and how to put money in order to make money while avoiding inflation.
It has never been easier to understand how to build your money than it is right now, when you may study and experience a completely variegated market passively by employing a successful portfolio-advisor. The impacts of the U.S. dollar's gain or fall on investtments, in my opinion, are complex.
Working with a Financial Advisor to help guide you on your wealth-building journey if you're just starting out is a wonderful way to get started and thats how i was able to accrued good gains . They helps to manage investment overall risk profile , prevent permanent loss of capital consider maintaining a broad diversification of your investments that reflects your personal risk tolerance, time horizon, and the nature of your financial goal
please who is the consultant that assist you with your investment and if you don't mind, how do I get in touch with them?
Big Credits to ''Catherine Morrison Evans'' she has a web presence, so you can simply search for, there are some others but it might be difficult to get them, but Catherine has been a good guide through the year.
Make it illegal for corporations to own single family homes
Thank you! How're we supposed to compete with Blackstone
Louder for those at the top.
Exactly this is why the US is going down
don't forget. foreigners are buying US homes too, especially the Chinese.
@@stephenc2481 and NO FOREIGNERS should be able to own our land
The effects of the downturn are beginning to sink in. 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?
If you are new to the market, I recommend seeking professional assistance. The most effective approach to creating a well-organized portfolio is to begin with a professional who is knowledgeable about the turbulent yet profitable market.
Very true , I diversified my $400K portfolio across multiple market with the aid of an investment advisor, I have been able to generate over $900k in net profit across high dividend yield stocks, ETF and bonds in few months.
@@robertosaviano215 How can I contact your Asset-coach as my portfolio is dwindling?
@@elliot985 It's best you do your due diligence, I have my portfolio overseen by “Laura Marie Ray” and her qualifications speak for itself. Most likely, the internet is where to find basic info, she has a noticeable page for consulting.
@@robertosaviano215 I just looked her up on the internet and looked into her credentials. I wrote her a letter outlining my financial objectives.
My advice to new investors buy good companies stocks and hold them as long as they are good companies. Just do this and ignore the forecasts and market views which are at best entertaining but completely useless. I’ve only ever saved($510,000), never invested but want to start.
My portfolio has good companies, however it has been stalling since last year. I have approximately $200k stagnant in my reserve that needs growth.
@@IrenaDolinsek As with any big financial decision , it’s important to keep your guard’s up for economic risks. However, smart planning ,time management and seeking advise from a financial adviser can help keep you and your money safe.
@@AstaKristjan Absolutely, I agree, and the markets are currently in a frenzy. The greatest time to observe them, learn more about them, and take advantage of opportunities to strike is now. My F.A, "Kathleen Yanelli Carole," who has witnessed hundreds of market cycles over the past three decades, taught me this. She has an intuitive understanding of how things move, why they move, and what will happen next.
@@Erinmills98 Mind if I ask you to recommend how to reach this particular coach you using their service? Seems you've figured it all out unlike the rest of us.
@@LarsBergstrom-uh2eu Most likely, you can find her basic information online you are welcome to do further study.
It’s not just the interest rate. It’s the cost of the house itself. It’s ridiculous!
Everyone wants to ignore the obvious because its inconvenient
For old homes that are falling apart non the less. It’s a joke.
They appraised our house at 150 thousand when it was like 80 grand like 4 years ago and it's not anything special
@@frenchonion4595 where do you live? 150k for a house is cheap. Flyover?
@@Sonofawildanimal4241 poor
Anyone have any idea which stocks may be experiencing major growth this new year season? A lot of people have been talking about a January bounce. I recently sold my Boca Grande, Florida, house, and I want to invest a lump sum before equities recover in the stock market. Is now a good time to buy or not?
I was left holding worthless positions in the market in 2020 because to these market uncertainties, which is why I don't base my market assessments and decisions on rumors and hearsay. Before I started noticing any noticeable improvements in my portfolio, I had to fully redesign it with the assistance of an advisor; I've been working with the same advisor and have scaled up to 750k.
@@robertlucas8288 True, we’re only just an information away from amassing wealth, I know alto of folks that made fortunes from the Dotcom crash as well as the 08’ crash and I’ve been looking into similar opportunities in this present market, could this coach that guides you help?
@@lucid480 She is Julie Anne Hoover, my consultant. Since then, she has devoted section and leave attention to safeguards that I have been keeping an eye out for. You can locate information about the chief online, on the off chance that you're interested. I made no regrets about substantially adhering to their exchange strategy.
Real Estate provides cashflow, tax benefits, equity building, competitive risk-adjusted returns, and inflation protection on its own. Whether you invest in physical properties or REITs, real estate may help you diversify your portfolio and reduce volatility. Dividends are what got me into investing in REITs, great way to secure the accumulate wealth, I hold AMT, CCI & PSA. $290k in profits made in 2022.
Consistently investing in high quality dividend paying REITs & companies over the long term is a relatively easy strategy to create generational wealth. My "boring" REITs portfolio paid me over $4,000 in dividends last month.
It's time to make high value games! Discounted dividend stocks. Ever grateful to my CFP "Catherine Morrison Evan’’ I now have a six-figure REIT portfolio, which includes, but is not limited to; AMT, SPG & PSA.... I now have 606 shares of AMT which pays dividends of $3800 per year.
@@bob.weaver72 I want to play the long term game with well diversified fund. Please how can i reach this CFP of yours?
@@hermanramos7092 Most likely, you can find her basic information online; you are welcome to do further study.
@@bob.weaver72 - [ ] Thanks for this tip. Her website popped up on the first page immediately I searched her, I read through her resume and it seems pretty tight. So, I dropped a message & hopefully she replies soon.
It’s important to choose stocks that are expected to hold up in inflationary environments. To combat the negative effect of inflation, it’s a good idea to diversify your portfolio across different asset classes, such as stocks, bonds, and real estate, since this can help protect your portfolio against inflation. I have seen People making up to $500k in a month during high inflation
One strategy is to invest in assets that performs well during inflation. Another strategy is to focus on companies that have the ability to pass on price increases to their customers. Its also important to maintain a diversified portfolio. It may be a good idea to speak with a financial adviser who can help you develop a customized investment strategy based on your individual goals and risk tolerance
I used to manage my stock portfolio by myself, all that time I did not make any significant returns (but also did not suffer losses). Then out of nowhere 2008 happened, and I lost 50% of my savings in a very short period. That prompted me to hire a F.A. Since then I have been learning a lot about the stock market and I have made up to $1M in returns
My advisor is “Christine Jane Mclean”. She has since provide entry and exit points on the securities I focus on. You can look her up online if you care for supervision. I basically follow her trade pattern and haven’t regretted doing so
Gold is a solid investment
@@MarkGrimm8investment in gold is your best bet
Stop investors from buying all single family homes. .....
Stop single family homes from being built so numerously the first place!
Someone’s got to prop up the housing market
When I was in real estate it became clear to me that in the states the only focus is getting commission for the realtor and selling houses quickly as well as prioritizing investors over everyone else I was absolutely appalled by it and left that greedy industry behind. Housing is a right not a privilege that’s truth and a house shouldnt primarily be an investment tool it should be a home first and foremost
Housing shouldn't be a luxury lol
People can afford to pay 3k in rent a month but dont qualify for a house with a monthly payment of 2k
You don't qualify for mortgage because that isn't your only expense. And most fail to realize that. There is cap ex, maintenance, taxes, insurance, etc. Banks need to ensure you can fix a roof if it goes bad.
Owning a home is same as owning a car. Only have enough money to buy the car or home is not enough. There are lot of cost associated with it once you own it.
My life for 7 years. Now I am on verge of homelessness. Haven't missed a rent payment and nowhere cheapest my area is 70% of my income.
@@SerenityES serves you right. Should've picked a real career instead of whatever you've been doing the last 7 years.
@@alexarzamendi9475 Wow nice guy. Hope you never fall on hard times.
After a nightmarish 2022, shell-shocked investors have losses to recoup and plenty to ponder, as an inflation report and a raft of other data did little to change expectations that the Federal Reserve would likely continue hiking intrest rates even if the economy slows down, Which means more red ink for portfolios for the first quarter of year 2023. How can I profit from the current volatile market, I'm still at a crossroads deciding if to liquidate my $250k bond/stocck portfolio
Nobody knows anything; You need to create your own process, manage risk, and stick to the plan, through thick or thin, While also continuously learning from mistakes and improving.
@@edelineguillet2121 Uncertainty... it took me 5 years to stop trying to predict what bout to happen in market based on charts studying, cause you never know. not having a mentor cost me 5 years of pain I learn to go we’re the market is wanting to go and keep it simple with discipline.
Thank you for this Pointer. It was easy to find her handler, She seems very proficient and flexible. I booked a call session with her.
This can all be connected to the shut down of the Keystone pipeline & American oil & gas permits, which would have lowered fuel costs for not only the USA - but the North America’s allies. Yes, we want to continue to support lowering use of fossil fuels, but to push for sources with many negative results, including forcing use of wind, solar, etc. is not going to work when so much industry still relies at least partially on oil & gas. Even Elon Musk understands the problems with lack of electrical grid availability & available mineral metal required to switch to non fossil fuel entities. The choice of administrations in Nov. 2020 has cost everyone dearly.🤷🏽♂🇺🇸✌🏽
@@lolitashaniel2342 SHE SCAMS, SCAMMER
Residential real estate depends on the willingness of people to borrow for what’s typically the costliest purchase of their lives. As the Fed continually jacked up interest rates last year, the average rate on a 30-year fixed mortgage topped 7% last fall - more than double where it began 2022 - before dropping back slightly.I'm still at a crossroads deciding if to liquidate my $338k stock portfolio, what’s the best way to take advantage of this bear market?
That’s right! Downturns provide plenty of opportunities for regular people to build wealth from the scratch. However, you may need to get some professional advice from an Invest-ment planner if you need an aggressive return.
Recessions are where millionaires are created. After my port_folio took a big hit in April, I was forced to employ the services of an Invest-ment-analyst who has not only accrued a profit of $250k for me since then but has also taught me how.
Please can you leave the info of your invstment analyst here? I overheard someone talking about how a couple made $200k during this red season. I need such luck lol
My adviser is “Helene Claire Johnson” You can easily look her up. She has years of financial market experience and she is also FINRA & SEC verifiable.
Thank you for this amazing tip. I verified her and booked a call session with her. She seems Proficient.
Roughly £120k in my portfolio are in tech/TSLA stocks, can I get an advice on any other stocks that I can acquire to diversify my reserve across multiple markets while creating a comprehensive portfolio allocation that balances my concerns of risk aversion and returns that meet yearly inflation.
You need to hire a financial advisor to help you diversify your portfolio by including Mutual Funds, Etf's, the 11 GICS groups, inflation-indexed bonds, and stocks of companies with reliable cash flows rather than growth stocks, where prices were based on future prospective earnings.
@@darrenphilip247 That's correct. At first, I wasn't too pleased with my gains compared to my previous performances, I was doing so poorly, I thought I needed to diversify into better assets, so I got in touch with an investment-advisor. That same year, I pulled a net gain of £550k, which is about 10 times more than I average on.
@@finleysterling562 My portfolio has been in the gutter for the entire year, so I started researching new ways to profit in the market, but everything I tried just seemed to miss the mark. Please let us know the name of your financial advisor
@@kalfmanbrown5953 Having a professional is essential for portfolio diversification. My advisor is "Trade with Ethan Grayson" who is easily searchable and has extensive knowledge of the financial markets.
@@finleysterling562 Thanks for this tip. His handle and website popped up on the first page immediately I searched Ethan’s name, I read through his resume and it seems pretty tight. So, I dropped a message & hopefully he replies soon.
Many talk about the lack of liquidity in real estate as a “glitch.” I see it as a feature. It’s too easy to liquidate stock positions sometimes after reading a sensationalized headline, only to regret that decision soon after.
I suggest you offset your real estate and get into stocks, A recession as bad it can be, provides good buying opportunities in the markets if you’re careful and it can also create volatility giving great short time buy and sell opportunities too. This is not financial advise but get buying, cash isn’t king at all in this time!
@@alexyoung3126 You’re right! The current market might give opportunities to maximize profit, but in order to execute such effective transactions, you must be a skilled practitioner.
@@checkforme234 On the contrary, even if you’re not skilled, it is still possible to hire one. I am a project manager and my personal portfolio of approximately $750k took a big hit in April due to the crash. I quickly got in touch with a financial-planner that devised a defensive strategy to protect and profit from my portfolio this red season. I’ve made over $150k since then.
I'm happy to have stumbled upon this discussion. If you don't mind, could you tell me the name of the financial adviser who helps you with your investments and how I might contact them?
Having a counselor is essential for portfolio diversification. My advisor is "Eileen Ruth Sparks" who is easily searchable and has extensive knowledge of the financial markets.
This, in my opinion, only emphasizes the importance of having an edge among investors, as simply playing the market like everyone else is insufficient. What are your thoughts? I've been hesitant to invest in the current market, but I also believe this is an excellent time to begin.
To me, the idea of using spreadsheets has always seemed excessively time-consuming and unnecessary. Simply put, I put a significant amount of money into my savings accounts each month, keep my spending money in another account, and try to spend as little as possible.
@@henryliam6037 I don't have a full-time job; instead, I'm self-employed with a variety of sources of income. Regardless of how much money I generate each month, I maintain the same budget and adhere to my means-tested lifestyle.
@@jessicalandon8973 The markets are currently operating in full frenzy. Now is the best moment to keep an eye on them, learn more about them, and seize chances to strike. This is what my mentor Alice Elaine Hayhurst taught me. Over the past few decades, she has experienced numerous market cycles and has developed an instinctive grasp of how they operate, why they operate, and what will happen next.
@@ethanxavier4507 It is possible to evaluate a decision's wisdom statistically. However, we don't actually do it every day. too challenging Simple stories are frequently horribly inaccurate, despite being plain and practical. According to the coach I'm working with, investing a lot of money in truly outstanding stocks is the only surefire way to feel affluent. It is that simple.
@@nobertheck SHE SCAMMED ME
Someone bought a house in my neighborhood in early 2020 for 412k, in 2021 he sold it for 675k. Now in 2023, the person that bought it for 675k in 2021 has put it up for sale again for 730K. So in 3 years, this house as increased by 318k. Abosultly not sustainable for the economy. Reducing interest rate is not the answer, it will only contribute to higher home prices. I'll rather interest rate stay between 6% to 8% for the next 10 years. This will gradually reset the market to normal levels, because it will force sellers to keep cutting prices.
Yep, higher interest rates make for more responsible buying. When interest is low everyone wants to get into the market many of which cannot realistically afford that home. This also drives up more competition between buyers raising housing costs. The federal reserve caused this.
And that increases the taxes for everyone in the neighborhoods.
@French onion higher interest rates just hurt home owners not resellers or large firms who RENT ONLY.
An extra $400($1000 to $1400) in payments for people living near paycheck to paycheck might mean an extra job.
For a flipper or reseller they won't ever see that price cause all they will do is just relist the home for 25% more than purchase price.
The landlord "buyer/owner" is already charging 3x the original mortgage price as they turned the single family home into a duplex and rents it for $1500 to two individuals a month.
@@vancedthobehill8048 I don't about apartments I know it's outrageous though. I was talking more home buyer. Low interest gets people in a lot of debt. Higher rates encourage saving and making a larger down payment on a house. With COVID it got a lot harder to save though. The banks should have never been bailed out now they are running rampant putting everyone in debt. They prey more on real estate because a lot of industry got off shored over the years now most of the money to be made is in real state not loaning companies money.
This countries economy will collapse.
Focusing on the mortgages is misguided. The base cost of housing is too high because single family zoning has made it illegal to build duplexes, condos, townhouses, etc and choked off supply.
Exactly. And in large cities, this becomes a transportation issue as well. Once an American city hits 5 million people or so, the traffic gets so bad that people living on the edge of the metro can't commute to work anymore. So building new SFH's stops being an option.
But these zoning laws are the result of those who already own property. These zoning laws increase their property value.
And you can’t vote against the zoning without owning property affected by the zoning which means nothing ever changes.
The zoning laws work perfectly for those who make the law. Its everyone else who suffers
Is not just that, professional land lords and big institutions hoarding everything are also causing the problem. Force these exploitative business owners and CEOs to pay workers fair wages and TAX the wealthy in oblivion. You'll see that when people have money, they just start buying homes even without loans. The rich are buying all the assets because they have too much disposable income, which is further increasing wealth inequality.
Most people don't want a bunch of duplex or quads littered throughout their neighborhood...
@@tstanley01 then move to buttfuck, alabama where you can build your 15 bed house with a huge backyard and pool. you don't need that big of a house in dense areas with high populations. the city has parks, pools, amenities everywhere.
Great video! For 2023, it’s hard to nail down specific predictions for the housing market is because it’s not yet clear how quickly or how much the Federal Reserve can bring down inflation and borrowing costs without tanking buyer demand for everything from homes to cars.
A lot of folks have been going on about a January rally and said stocks that would be experiencing significant growth these festive season, any idea which stocks this may be? I just sold my home in the Boca Grande area and I’m looking to remunerate a lump sum into the stock market before stocks rebound, is this a good time to buy or no?
Such market uncertainties are the reason I don’t base my market judgements and decisions on rumours and here-says, got the best of me 2020 and had me holding worthless position in the market, I had to revamp my entire portfolio through the aid of an advisor, before I started seeing any significant results happens in my portfolio, been using the same advisor and I’ve scaled up 750k within 2 years, whether a bullish or down market, both makes for good profit, it all depends on where you’re looking.
@@hushbash2989 Having a counselor is essential for portfolio diversification. My advisor is Eleanor Annette Eckhaus who is easily searchable and has extensive knowledge of the financial markets.
Thank you for the tip. It was simple to locate your handler; she appears to be very competent and adaptable. I scheduled a call with her
Seems like they're doing a good job
In my experience, one of the worst things about the housing market are all the real estate companies buying up cheap houses and flipping them for insane profits. I look at the price history of all these homes that I am interested in and keep seeing real estate companies buying up homes, only to relist them 6 months later at twice the price! It should be criminal to do this.
They go to the auctions, they know what's on the market. They are already positioned to be the first person there to buy the house with cash on the spot. Then, they do nothing to renovate, they just add $100k to the price they paid! They can even sit on the house for a couple years cause property tax doesn't even compare with the eventual payout they will get for selling.
Then when there's a downturn houses can be brought on the cheap. Also if investors weren't in the equation then builders would build fewer homes. There's more to just one side of things. You can't rig the system to reap all the benefits and none of the risk and costs.
@@PhilMoskowitz "bought on the cheap" is an interesting notion. In my experience, prices on homes only ever go up. Also, land, especially desirable land, is a limited quantity. Just building more houses out in the middle of nowhere doesn't solve anything, even though the supply has risen. The Chinese learned that the hard way
@@willdazey7368 home prices do go down......be patient.....and BE READY!! cash is king!
@@willdazey7368they literally went down 15 years ago and are in the process of crashing again. They’re down 11% since June and will continue falling
I have a degree in technical theater, ive laid my share of drywall, plaster and paint, and a LOT of these houses are still cheaply made in spite of the cost imo. They fix things like walls, faucets and paint but the plumbing and wiring won't have been touched or inspected for years.
nyc is cracking down on old/bad gas systems in building and TON of building are gonna have to gut the piping while people still live there due to maybe decades of being under code 🤷♂️
To double to rent or cost of the house, you need to do a full HVAC refit or kitchen/bath remodeling for that to really be worth it imo
Most people could've done that other stuff themselves for about 200$ worth of supplies and like a short day of work lol 😆 🙃
It seems to me that greed out performs compassion in the U.S.A. Sucks.
It's happening in other countries like Canada stop bashing USA.
It is about the money in every single country.
There’s no more simple explanation than greed.
An efficient market makes it impossible to be greedy. The rice market is incredibly efficient so no one can suddenly high prices by 50% because no one would buy from them. The housing market is incredibly inefficient so landlords can charge whatever they want and there are still people who pay it because there are few other options.
The dream to own a home is just that. A dream. My credit score had nothing to do with it. Mine is excellent at 801. Everything in my area sells for $750.000 for a condo and upward. Single family homes are one million and upward. I can only qualify for a lone for $230,000. There is no such thing as a home for $230,000 in my area. Rents are sky high.
Why don't you move to a more affordable area?
Stop complaining and move elsewhere.
@@David-rz4vc You beat me to the punch here too! That's what I did. I moved from San Diego to Va Bch in 1997. Bought my first house in 1998. 🤷♂
Maybe you should consider a less expensive area. Just sayin.....
Guessing this has to be either nyc or Los Angeles?
Only qualify for a $250,000 loan?
What’s your income?
Investing in stocks and crypto markets is the best financial decisions any can make but the crypto market is much more better than anything else at the moment....!!!!
My portfolio has good companies, however it has been stalling this year I have approximately $600k stagnant in my reserve that need growth.
That's impressive! I could use the expertise of this advisor, my portfolio has been stagnant..... How can I get started with KAREN TUDOSE LUCY?
Thanks. I just searched her up on Google and I'm super impressed with her qualifications. Have considered her through the webpage to hear what she to say about my situation...!!!!
I wasn't financially free until my 40’s and I’m still in my 40’s, bought my third house already, earn on a monthly through passive income and got 4 out of 5 goals, just hope it encourages someone that it doesn’t matter if you don’t have any of them right now, you can start TODAY regardless your age INVEST and change your future! Investing in the financial market is a grand choice I made. Great video! Thanks for sharing!Very inspiring! I love this
I understand the fact that tomorrow isn't promised to anyone, but investing today is a hard thing to do for me now because I have no idea of how and where to invest in.I would be happy if you could advise me based on how you went about yours, as I am ready to go the passive income path.
@@daviemanuel688 Her name is Christy Vallen D'souza. Look her up online, she is quite popular in the united states and she is a certified financial adviser in order to put you through the procedures of achieving your dream portfolio.
@@MajorCockbern That’s great , your investment advisor must be really good,I have seen testimonies of people using the help of investment advisors in making them more financial stable. Do you mind sharing more info on this person?
@@MajorCockbern Thank you, i just found her website.
@@daviemanuel688 I do the same thing, I do not have big money on bank account. With the right property in market and sales advisor, we will be on right track. Right now 3 estate done with loans which I turn to plantation and earn money from it, 2 more to go.
There's so many factors that contribute to this issue. Antiquated zoning laws, NIMBYism, inflation, stagnant wages, social pressures of having the "American Dream Home", greedy investors, and more
This issue of house affordability can be fixed and everyone can benefit, but the problem is it's going to come at some expense of people who already "got theirs". And U.S. Americans have shown they would rather risk the whole system crumbling than accept a solution that impacts them negatively in any way, even if it may be a net benefit for them and the U.S as a whole.
If you very heavily taxed any profit from real estate assets the vast majority of those issues wouldnt be there. There wouldnt be greedy investors because the profit would just not be there, zoning would be looser because there wouldnt be profit incentives to create zoning laws. What I suggested will never happen though
@J Aad Yeah you've hit the nail on the head. The key is you shouldn't be rewarded for owning real estate more than stocks. It's basically a strictly better asset class right now because of the lack of taxation.
USA needs to look at Sweden without everyone being deathly terrified of “socialism”. The USA is becoming a third world country.
Building permits make Americans homeless...
No one addresses the real cause of the issue. Why do people just keep saying Americans need more affordable housing to be built while there are more than 15millions of them sitting in vacant? Which interest groups own them? No one addresses the issue of how the real estate industry is so screwed up because of those developers like mafia 45, real estate & loan industries, and other businessmen that those interest groups handpick and install into local & state governments around the country to benefit them more. Only those who control the market can create multiple layers of debts by their own actions before delivering those to the lowest chain of consumers. The lowest chain of real consumers are the only ones who have to live with high costs. This channel created this segment to give credit to the Bush administration or what? They obviously don't understand the catastrophe behind his plan. It's so scary!
This need to become illegal for big corporations to buy up single family homes, this is becoming ridiculous how this is allowed
It’s not ridiculous at all. Imagine you were a black retired couple who had lived in their home for decades and now it’s time to seller and move to a 55 and up community. You have two offers. One is $210,000 and another is $225,000. The one for $225,000 is from a corporation.
In your world this couple wouldn’t be allowed to accept the $225,000 offer and pocket another $15k as they retire.
This is why your idea will never be allowed. People want to be able to sell their homes for the most money possible. They don’t care if it’s a corporation or a regular person. They want the money. And who is going to say the government should force them to accept less?
They are instead building rows of new homes, renting all of them, and having HOAs that fine you for everything to keep making moeny
I know a friend who purchased a condo in Oakland, CA. She paid the mortgage for 20 years, always on time, never late. 2 years ago, she missed 1 payment, and the bank immediately foreclosed her home and kicked her out. Today, it's back on the market for double its value. It's not a housing market, it's just legal thievery.
It’s something she’s not telling you. The foreclosure process takes a long time. There’s no way she was kicked out in one month.
I work in foreclosed for a back, sometimes it can take up to a year to foreclose on a house.
maybe she had one of those contracts they mention in the video where you’re actually renting until the full 30 yr period is up and not building equity
In the old days, poor people built their own homes and rich people paid someone to build for them. Now, people are unable to build for
themselves because of strict
regulations and a lack of skills.
Exactly, I get pushback for bringing this up with planners because they’re the professionals mostly responsible for criminalizing people building their own buildings.
More like most of the land is privately owned
I built my own home in a city. It can be done if you have the drive.
@@gcod3d161 There are lots of people who hoard land and never use or develop it. Take a scroll through a county assessor's website... it's annoying how much property some people own. Just because they got there first (were born first), they will buy everything they can and block anyone else.
Exactly!
Don’t let corporations buy Single Family Homes only to convert to rentals. Homes need to go back to being a commodity not and investment portfolio.
Seriously.. if they wanna play monopoly they can play the board game
That and the NIMBYs who prevent developers from building apartment buildings
This. There should be legislation introduced to ban corporations from owning single family homes.
There's nothing quite like being outbid on a house by the investment firm that holds your retirement account.
@@d0ntcare yep. I’ve been in the mortgage industry over 20 years and this practice disgusts me. I’m fine with people owning a few homes for investment (as an individual not a business, LLC….etc) but at some point it needs a cap. Then, after that, make it so if u want more homes u have to build new ones. This way ur at least adding to the market vs taking away.
Absolutely
Amazing video and thank you for breaking it down!! Despite the economic downturn, I'm so happy to have been earning $ 60,000 returns from my $7,000 investment every 10 days.
Wow! How's that possible please I'll appreciate your assistance on how to go about it.
Hey, I invested largely in the stock market last year, and tried some indexes but my experience doesn't pay me. I have lost so much trading by myself Please is there any handle or link can get to him?
🗣️SCAM! This comment is posted on every financial video on TH-cam
as long as corporations are able to buy homes strictly for resale, the market will never really balance out. everyone knows people need a place to live. people who are able to afford it, even when it stretches their budget too thin, will be forced to pay terribly high rents. such that they will not be able to purchase homes. it's hard for the average person to save when rent is about $2k/month.
Basic human necessities are for profit- that’s the problem period
If basic human necessities are provided by the Govt for free, we’d all be doomed. That’s the problem period.
The problem is poor personal choices that lead to deserved results.
@@Skdjeis right... I'm sure that blanket statement has full merit and is applicable to the misfortune of everyone stuck in a rut. You get the genius award of empathy. 👏
@@Skdjeis no the problem is that older generations have had more time in the market. They then use this time to acquire assets. They can then use these assets to outbid the 20yr old trying to buy a home.
It’s like joining a game of Monopoly 30 years late and expecting to somehow beat the person who already owns all the properties.
@@Deloowix Maybe your you stupid yo think this but having something as a necessity doesn't mean it needs to be free, it just needs to be affordable. Further more education is a right and up to 12th grade is free, today the US has an extremely high literacy rate.
In the pandemic, BlackRock bought almost all non-luxury houses around my neighborhood. They rented them out. They are waiting for a good price to sell them out now. People really needing a house cannot afford it anymore. Heavy tax on house investors. That's the only choice to make house affordable again.
It was affordable in 2009, remember? The only choice is to accept market rules. Where's the demand there's the supply, housebuilding is all time high, it's just a matter of time when price will drop again. There's always cycles and ups and downs, you can't make everything stable without extreme repercussions, Soviets tried.
“I failed to become successful as I should, so the people with the means should be penalized.” Get out of here! If you do not like the United States, why don’t you go live in a nation that does exactly what you want the US to do? Oh wait, you will pay twice as much for a home in those nations. Besides Turkey, the United States still has by far the lowest home prices of all first world countries.
If you tax owners for renting out properties, the only thing they are going to do is charge more to pay for that tax. You either have to cancel foreign investments in real estate and/or create a new zoning law that bans residential rentals. AirBnB has destroyed the housing market and in return is destroying the rental market too.
@@brandongroth4569 I believe some good work could be done with property taxes.
Basically - it should be cheap (free) to own a mid-sized house or a flat.
It should be somewhat expensive to own several houses/flats.
It should be prohibitively expensive to own several houses/flats with no tenants (renting, especially long-term, should remain profitable, but the first priority of the owner should be keeping his housing units occupied, with empty ones cutting into his margins in a way that makes affordable rental more profitable than "somebody will move in even at this price, eventually" rental).
That's all very simplified, of course - a developer shouldn't be punished for unsold housing, for example, because that might give incentive to sell cheap but it would also increase the risks in the industry and we want people to see "safe money" in building housing, especially the affordable kind.
Blackrock doesn't buy housing so you're full of crap.
A topic not being brought up is that fewer and fewer people are getting married which also means fewer duel income households
They also didn't discuss here the cost of high property taxes on houses. Here in Illinois your property taxes could go higher than the mortgage. In the city of Chicago they just raised the property taxes and it is adversely affecting the poorer communities. There was a story of a retired lady in the city and her house was valued at around 125k and her property taxes went from 2k to 5600 this year. That is not sustainable and will only get worse
Property taxes should be banned on a national level and replaced with local income and sales taxes.
High property tax states are a no go
Florida used to be a place that one could retire on a modest income. No more -for the majority of the state, it is only for the rich unless you want to live in blighted areas. Homeowners insurance is insane, let alone mortgage rates.
Chicago city is run by democrats. Ask the leaders why you want to make people life miserable.
Dam that's cheap. On a 150k home we are paying 8k in NY
30 percent of buyers in Las Vegas were investors…Over valued properties in Las Vegas.it’s gotten ridiculous…New townhomes are not worth 470,000 for 1500 sq….Buyers and builders are in big trouble.They have came to realization that are not going to receive what they once received a year ago.Builders have become very greedy
Same things in Phoenix and both markets are declining fast
We hit 68% in Vancouver, WA. House on the corner is now an AirBnB. Owner has 9 other AirBnB properties is Portland metro.
I mean places like San Francisco are limited by zoning regulations thanks to the government. They literally cannot build new affordable housing and that screws with the supply while demand keeps increasing.
Who do you consider an investor? Assuming it's all non-owner occupants (which could include long-term rentals, short-term rentals and flippers), investors took an enormous beating in 2009, defaulting in large numbers and creating great opportunities for buyers from 2009 through about 2019 or so. It was a painful way to get back to equilibrium but it did.
Unfortunately this time around new supply lagged for years. Right now both categories of rentals are, for the landlord, in a relative high spot but both are becoming more of a headache than they are worth. Long-term landlords have to screen much more aggressively and short-term ones face regulatory headwinds. Flipping has cooled considerably. The number of empty houses is rather low and curtailing investors right now would likely not change that. The only thing that would is more new housing or a ruinous economic event for the resort industry.
Las Vegas suffers the same problem most growing markets (e.g., Phoenix, Denver, Dallas) currently do - there is much, much more demand than supply. Dump 150,000 new housing units on the market over the next 3 years (assuming there is enough water) and things will swing back to balance.
@@mojavewolf O non owner occupant.Corporation are also investing in the real estate market.Who do you think drives up the market.
I think the first step would be to prevent hedge funds from buying homes and artificially driving up prices. Next, investors who do have homes should be incentivized to fill homes instead of keep them vacant. Also, landlords should not be able to raise rents by over 10% a year, which only creates more homelessness and a broken housing system in the US.
Investment homes should be taxed at a progressive proprty tax rate.
More like no more than the rate of WAGE GROWTH. If wages aren't growing, rents should not go up.
Sure property tax shouldn't go up ether. Also landlord should be able to evict shty tenants within 60 days.
I agree, but if you look at the investor share of the market, big companies are a small part. It is the mom and pop who own the bulk. It is each of us front running families to “invest”, only making that same family rent it from us for more.
@Josh, what would be the consequences long-term of your proposed solutions? Except the vacancy rate reduction all else will cause underinvestment in construction of new buildings.
The real culprit is the zoning regulations. No one wants to live in the middle of nowhere and creating new good cities is hard. Local government has too much power of deciding what you can do with your property. What everyone calls - "not in my back yard". Actually, it should be called "not in my neighbors' backyard". This is the most important supplyside restriction.
We need to build more housing that's smaller and closer together. In my city, there's very little option to buy affordable housing because we've been building housing that's too big and takes up a lot of space for so many years.
suburbs and detached single-family homes really are a big part of the problem.
Every child deserves a home with a yard and a dog!
like every rich liberal city that opposes this ...NIMBY
@@JLT3 If you think it's just "liberal" cities, your an idiot.
@@_carlisto_ Corrupt politicians and globalists who want everyone to be crammed into cities are the big problem.... That way they can control you better... Most co-op buildings here in New york are grimy, infested with pests and the have RULES. Do you know that during the pandemic you were not allowed to have guests come to your apartment even though you own your unit?? Not to mention about the typical co-op rules such as obligating you to have a carpet (noise), cannot alter anything in your unit without approval etc... A detached single-family home in the suburbs is the American dream basically and the ideal setting to raise a family...
The older I get the harder it is to buy a house.
Dont get to old before buying your home, Banks dont like lending to the old.
@@Itwasme007 really?!?
A poor person pays rent.
An upper middle class person has people paying them rent and they use that rent money for bills and ultimately put into their retirement account.
Talked to a boomer coworker about why us young cant afford homes and staying at home (her kids too who are younger than me) mentioned most of these points and it's different than her generation but still say we're all lazy 🤦
That’s a boomer fact
She’s not wrong. Aren’t you watching this video
Damn lazy people and their lazy ways
I mean it's true.. Most Gen Z want to be a professional youtuber or gamer on twitch.. When I was a kid(I'm in my early 30s), kids wanted to be an NBA player or a singer until they became 18 and realized that wasn't realistic.. The problem is gen z is approaching 18 and they're doubling down on limited work for a lot of return. Doesn't work that way..
Keep in mind before they were called the Boomers, they were called the 'Me' Generation. Seriously, you can verify it. It's only after they took financial control did they get to relabel themselves. Now we have too many taking out of the system and not putting back in.
If it makes you feel any better, once they start dying your generation will finally be able to make the needed changes. I know it's not nice to say... doesn't make it any less true
Ban Air BnBs, limit the amount of homes a person can own to 2, restrict "flippers" and corporations from own SFHs.
100% agree
For me, the biggest issue is zoning - we must have a variety of houses, strong towns where you can live without a car. It'll open more opportunities and options, drive the price down.
In terms of affordability, it's still hard for me to comprehend how someone who was born and got their first job in the US struggling with housing. We came here from a poor country and were able to buy a house in 4 years, starting completely from scratch.
Americans were programmed to buy into consuming products they don’t need. They borrow on credit. They also don’t teach people about economics, salary, and finances, etc….
It's more bad credit and spotty work history that keeps people from getting a mortgage.
People don't want to budget
A lack of education about financial planning in the public education system, poorly regulated food/drug industry that contributes to health issues (and an insanely corrupt and expensive medical system), high requirements for securing a career-based job (expensive degrees even for entry level are commonly required), differing attitudes regarding how parents help their kids begin life (kicking out kids at 18 is common, versus other countries where it is common to stay with your family until you can afford to move out), there’s a lot of contributing factors as to why US-born people have issues getting in a position financially to save for a home.
@@saelri2010 as if the rest of the world is better or doesn't have similar issues.
Trust me, the US is fine. There are lots of things that can be better here. And it is up to us to make it a better place.
My current house I paid 268k in 2004. It’s worth 506k. My neighborhood was a mix of high end Blue collar and White collar. The house across the street was purchased for 609k. The owners are a pharmacist and psychotherapist. It’s 3200 a month for the mortgage. Mine is 1450 for almost the same house. It’s insane. You have to have high wages to afford a house. The house next to me is a rental. The owners paid 1250 month. The renters pay 3100.
My neighbor paid 10k for his. Inpaid 275k for mine. 🤷
After 08/09 we were sitting on huge amount of real estate. Allowing foriegn investors and big capital RIETS to buy it all up coupled with low rates for too is what got us here. There's only one real solution, and even Canada is addressing it. Regulate investors.
The last thing I want is the government regulating my life more. It reminds me of the argument to raise taxes but the ultra wealthy are smart enough to avoid all taxes and so it always just ends up hurting the common person more. We use this logic for everything l it seems. Only ever hurts the little guy
@DevilFrog61 No you just need better taxation
99% marginal tax on all wealth above 1 billion
You’re federal government and politicians on both sides hate you. Otherwise, foreign real estate investment would be banned.
@DevilFrog61 meh. I rather they actually limit foreign investors and actually do something about that instead of continuing to give hand outs and subsidies. That, and actually let banks fails when they took on so much risk.
While i agree, i think its too late for this market unless you force them all to sell lol, moving forward though would still be a good idea.
I said it in the last video and I'll say it again, investment firms and companies shouldn't be allowed to purchase and sit on homes, even if it's for rentals.
Investment firms, companies and foreign nationals.
Add to that, second and third homes etc need to be heavily taxed in areas where housing is squeezed, so basically every city
I don’t think you realize the secondary consequences.
If true, it would damage the value of your home.
Don’t blame others for your own poor personal choices. If someone can’t save up the 3.5% down payment needed to buy a home, they are a bad person making bad choices - period.
@@Skdjeis not saying it's the down payment, I'm saying they take up the inventory and reduce what's then available for those looking to buy.
As a brown American, I get tired of people and The Media blaming things on systemic issues that are out of a person of color's control.
People of color need to know that they CAN reach homeownership! They just need to know how:
Identify Needs > Wants. And be frugal
Pay your bills on time
Earn more Money
You can do it people! And don't let some friend, family member, or news outlet convince you otherwise!
Bro black people don't compare to us brown people, we can tough it out and save and buy a home, sometimes as a group/family. Black people usually don't work together and don't want to go though any hardship
Allow houses to be owned only by people , and not one person with 30 houses...
One thing i can nitpick on this video is that one of the major reasons that people are unable to buy homes under 100k is because a huge majority of those homes are considered unlivable. Mortgages will not lend out to houses that are considered uninhabitable, that's why investors scoop them up to fix and flip. This applies mostly to major cities and the suburbs of major cities btw.
Facts
They do, the mortgage is called a 203k and the uninhabitable house gets a mortgage with extra money to fix the home. It's a hard loan to do but it's available and can be done
Finally someone who has some facts and not drinking this propaganda of the evil corporations buying out pushing people out. CNBC is always Government housing propaganda.
Lenders will deny mortgage loans for livable houses below $100k. That was my budget before the price increase, and I got it eventually, for a livable home. But one mortgage lender turned me down because $100k was their minimum.
@vulpixelful of course, depends on the lender. Our minimum is $50,000 mortgage loan.
We rent not because we want to but because we're forced to
LandLORD is the least American profession out there
@@hw6271 Is scalping a profession? One thing it's not is a productive service
@@user-pg4jw2qd3h Also the recipe for a demographic crisis but it's not our fault that no one wants us
You are welcome to put up a tent in a middle of anywhere.
It’s because you make poor financial choices. You don’t make enough and you spend too much.
I have to leave America 😔This is not it!! I’m a US citizen born in Washington DC to Jamaican parents and I hold one of the strongest passport in the world 🇺🇸 and with that nothing can stop me. I’m out 🙌🏾
Bye
1. Build more houses.
2. Remove parking minimums, replace it with public transit.
The market is a no-called-strike game. You don’t have to swing at everything - you can wait for your pitch.”
I want to agree. Waiting is a skill, too. Wait until the market is right to put your money. The risk you take deserves a corresponding reward and until you find a good opportunity, keep waiting..
@Brett Atkinson Best thing is to dollar cost-average into index funds. But even so, I'm careful enough to do this at the call of my advisor. That is so far what has kept my portfolio afloat during these unpredictable days
@Brett Atkinson I agree. I know some Advisors who won't meet benchmarks talk less of exceeding it. However, I believe the better part of the job is discovering a credible one. Rebecca S Rothstein for example is nothing but incredible. You may want to look her up with her names if you are looking to give the market a great shot.
@@philipcooper1636 Dollar cost averaging into index funds is the way (the least you can do). Too bad the schools didn't tell us to start when we were 18, but alas, financial independence from the economy does not help the economy if everyone is financially independent from the economy. Unfortunately, it is exclusively up to parents to spill the beans. And even more unfortunately, the VAST majority of parents, let alone people in general, don't know themselves to tell their kids in the first place. The internet should change this eventually, ideally.
I bought my house for $17k in 2014. At that time, you couldn't get a mortgage for less than $50k so there were entire neighborhoods of homes for less than $50k that no one could buy without cash. We even had neighborhoods where you could buy a 4 bedroom house for $3,500. Those were the homes people could actually afford. So what did the Fed do? Lowered the interest rates and let hedge funds and corps calling themselves banks have unlimited access to the discount window at near 0% interest. And now those companies own all the houses so the prices are now several times higher. In my neighborhood of under $20k homes in 2014, the least expensive home sold this year was $150k. I'm so tired of being hounded by investors trying to buy my house for $20k so they can flip it for $150k+. It's constant calling and mail. Close the discount window except to retail-only banks. Raise the rates and require any loan backed by taxpayers to have a 20% down payment, no exceptions. The prices will go back down to sustainable levels.
Wow I live in Oregon and the cheapest house you can find is 250k for little tiny houses.. most are 350-400k for a normal 3bd 2 bath house.
I live in Southern California. The cheapest house in the town I live in is $749,000 and it's not in the best part of town. $150K just sounds like a dream.
interesting. To build a small home nowadays cost us at least $50,000 minus pavement, land acquisition...labor cost account for about 60% now. not a good position to be homebuilder
Damn, Wish I could find a 17k house in New Hampshire. The lowest you can get is 250k, most houses here are 500k, it's getting scarily close to 1m. When I was growing up in the early 2000's, the most expensive houses used to be 250k. My grandmother is retired and her house costs close to 1 million and she only has to pay a mortgage of $1,800.00 per month. For context, she is paying less on her mortgage, for a 1 million dollar home that's not even a mansion, and most people are renting for $2,500 to $3,000 a month in my state, sometimes even more than that for living in 700 square feet or less. Thankfully I'm doing work that will pay off my 100k in student loan debt, unfortunately, circumstances leave me with no choice, as a single, 29 year old woman, to live with my mother for a long while, and with how things are going, probably indefinitely, unless I find a significant other and they're well off, but I'm not counting on it and focusing on myself and my family. Even when I do pay off my debt, it's going to cost me more time to build money back up again to afford anything for a down payment. Something has to be done about this, otherwise, we're looking at younger generations being born into homelessness and poverty.
17k?! Did you buy in Detroit?
Honestly, finding Dave Ramsey's Financial Peace years ago set me and my husband up to be much better. We lived the first few years of our marriage incredibly frugally in order out get out of debt and learn to love and live on a budget. Honestly, that whole experience gave us the confidence we needed to know that we can get one day be homeowners. We know other couples who aren't on the same page with money and it's the #1 reason they stay broke--one person trying to save while the other is just spending. Our "dream home" is a "debt free home".
in the 70s and 80s in New York City, an apartment's rent was about $200. Buying a house was not popular because it was so cheap to rent. Today, everyone is thinking about buying a property because it's so expensive to rent.
For the youth, American Real Estate is like joining a game of monopoly 30 years late and expecting to win.
All the properties are already owned which drives up the price of properties meaning the only way to buy property is to already own property.
This really is the case for Gen X through current just with increasing degrees of difficulty as you get closer to the current gen. Gen X is when student loan debt started to become absurd and made saving for a down payment a dream, unless you had good counseling and chose a profession that gave you a good starting pay out of college. Bring in two recessions and a pandemic, and we have a winning formula for screwing over massive amounts of people trying to get on their feet.
People who were fortunate enough to get in the "game" early (or inherited their golden tickets)... are hoarding land and blocking others from even having the chance to participate.
I would never wish a Kathrina or a CA fault line on anyone...but then again I think of the open opportunity to own land that would provide 🤔
I am wrong but hell.. so is the rest of society that tripled the selling price all around me in the last 15yrs! 😡
All it takes is a decent salary to buy property… at minimums wage you wont afford a house.
Yeah I'm 34 and even with a good job (making $35/hr) can only qualify for a $190,000 mortgage. The payment for that would be $1600/month which is absolutely insane.
There's nothing for sale in my market less than like $300,000 so it's really depressing. I don't want to rent forever, but I feel like I'm being forced to.
@@Scott-ShaggyBeard you're correct about choosing a profession that pays well out of college. I could never figure out why you would pay over a hundred thousand in tuition to get a degree in liberals arts or others that pay very little. They would've been better off getting into a trade right after high school.
Short answer: rich people want it this way.
Any questions?
So then get rich
@@Nathan-eq3zs They made that harder too. You need loans, they just explained loans are harder to get…..
Buy up all the land, don't build high density housing, force people to give up even more in order just to have shelter, block all public transportation attempts, make urban sprawl so bad that people must have cars to get to work, raise gas prices for your oil exec bros to get a cut (if they aren't the ones doing this in the first place) Capitalism is all about exploitation for max profit. And we're being forced into a modern debt-slavery system. Then CEOs are revered as gods in the media, basically turning into modern feudalism. No kings, just CEOs.
@@johnbw2597 there are many ways you can get a house without a bank loan.
Save up cash, Seller financing, lease to own, shared ownership. Stop making excuses and go get yourself a house!
@@David-rz4vc AMEN Brother!!
I spent the last 2 years saving up 20% downpayment for a reasonable house. Then interest rates hit and rerunning numbers I have to save up an additional 20% totaling 40% down and still monthly payment would be 300$/month higher. It makes a person feel defeated.
What is not mentioned, is that the society is taking a huge cost, for costly suburban housing that doesn't serve many people per square meter. It's just not efficient use of resources when you have so exaggerated focus on suburban housing. When creating new neighborhoods, if it was made from a better perspective on the actual needs and demand, it would be much more variation of multi and single family homes for example.
There is plenty of available land except in excessively large cities. Move elsewhere.
@@eaglewing1415 You completely lose the point, but it's ok.
Allowing corporations to own homes is insane. That needs to be made illegal now.
😊😊
😊😊😊😊
Allowing average people to own multiple homes and rent them out should also be illegal.
@@igotanimac1 that has happened for a long time without problem I noticed. Corps buying homes of late has priced people out of the market.
Yeah, this is the 500 lb. gorilla in the room that they don't want to talk about. John & Jane Doe with their middling credit and not enough for a 20% down payment aren't going to be able to compete with multiple corporate buyers with cash offers driving the prices up....
I've seen this too many times, home prices go up and becomes unaffordable for many, pressure on local companies to increase workers wages, companies relocate or find cheaper labor overseas and, eventually, they go down. It's a rollercoaster 🎢 Bussines aren't going to stick around and pay higher wages. Like that old song says, "what goes up must come down"
Well realty is coming down at least. The issue is the democrats and their inflation pushed prices up. We need to wait for rent to crash. It’s already crashing hard but still has a ways to go to its 2019 start point
Beautiful and well explained. The US stock and real estate market is something everybody should exploit. There's a lot of potential and I am seriously considering going into one of them. I have been confused on the better option and where and how to go about this. It's becoming too much of an opportunity to pass on.
Why not both? You should always remember to diversify your investments given the state of the US economy. Avoid putting all of your eggs in one basket. I have worked in real estate for as long as I can remember, and late last year, using only stocks, I earned my first million dollars (I hired a professional because I also don't live in the United States). In addition, I try out a few other things. It's hard to believe that I first resisted exploring new options.
stocks are your best bet atm, the housing market are currently a mess
@@dr.karidouglas1312 ...Very sound and realistic. I too have been into both for sometime now and though I won't say I have lost a fortune, I have squandered quite a lot... You mentioned using
pros, if its not a problem. do you mind telling who you used or recommending a good one? I could definitely use the help of one right now... I look forward to you
replying...
@@onieodelia5840 Funny enough, I can honestly relate. I don't know if I am permitted to go into details here, but mine is "Stephen Joseph Kohlhofer" and you could look him up . I'm not so sure he takes on new people right now, but you could try.
@@dr.karidouglas1312 casually strolled into this thread and boom, I know this smallish man. Once attended a fundraiser he was also in attendance here in Vancouver,, calm looking man with with a funny accent,, He's in the States though, I
doubt he works with non residents,,,
Greed greed greed. It all boils down to greed. Making tons of money is all contractors, realtors, and banks care about.
This is probably a problem in most countries but i'm only familiar with the USA's. And that is that we don't view housing as a basic human necessity but rather an investment. Housing continues to rise in desirable areas and decrease in areas becoming less desirable. A good example of this is the San Francisco Bay Area. Millions wanted to flock here to get a high paying job and live the American Dream and as housing became more scarce; houses that once went for 300k are now going for 1.1 million. Now as the SF Bay is being consumed with homelessness and poverty, and those high paying jobs are moving elsewhere; the value of homes are slowly but gradually decreasing. It really is a problem and eventually what's happening in California will happen in every state that becomes desirable like Texas and Colorado at the moment until we find a sustainable solution to the American Housing Market.
We don’t have this problem in Azerbaijan. A family of working two individuals can easily afford a house
Work harder, or buy a tent and live on skid row.
FL is BOOMING
Shelter is a basic right but not housing, you cannot put a gun to someones head and force them to build you a house. A house did not exist when humans first walked the earth; if housing was a right it would be legal to just take another persons home.
You’re exactly right. I live in the country side in Guatemala, people with higher incomes from the capital city are moving in and locals can’t afford a living anymore.
What you need is not affordable housing but housing to be affordable. Building prison cells stacked up and charging half a million isn't better than pricing out proper housing units at starting prices of 2 million.
@Annie Mouse Just to be clear, I was referring to the shrinking size of median homes with absurd pricing and not actual prisons.
We have an over supply of luxury housing and its profit incentive is really hurting all of us.
You know why this is a problem now.. because it’s affecting everybody and not just the “disenfranchised” .. it’s spilling over and now it’s a problem
There is new housing, but it's ridiculously expensive. I saw a new construction house for $750,000 in a neighborhood of $300,000 houses. In my neighborhood, average homes are around $150-200,000, new construction is selling for over $350,000. Same small lots, next to cheaper houses, for ridiculous prices.
These construction companies' figure, "we can pay $100K to build a $200K house or pay $200K to build an $800K house". There's no incentive to build low-end housing.
People just need to work together. Go back and live with your family. Move in with your friends. DO NOT RENT as you're throwing money away.
They're starting to make it illegal to live with anyone who isn't a relative now😂
Everything in the states is a *Business*
And there you have it. This is the problem. Our hyper-capitalist society means everything is for sale, everything is commodified. We have a housing market, with plenty of homes available but hundreds of thousands of people living on the streets. It makes no sense.
With capitalism, the most important thing is capital, not people. Capitalism needs to be heavily regulated and supplemented by generous social programs in order to work for everyone…otherwise it will always be a race to the bottom.
@@brianatippens3010 Try communism. I heard that worked out well.
@@brianatippens3010 we should help the homeless. but housing will always be viewed as a commodity. people who supply materials, construction crews, real estate agents, investors, etc. all need to see profit. no one should expect people to work for free and investors who finance the project to do it for free.
@@untouchable360x communism has never been achieved anywhere, contrary to what American media and education would have you believe.
Communism is a classless, moneyless, stateless society. Again, never been achieved…and once countries begin working towards it (socialism is a stepping stone to communism) the US and it’s allies jump in to overthrow their governments to ensure it fails or never takes root to begin with.
This is how the US maintains it global hegemony, it’s wealth and its power, and protects the wealthy men and women in this country that own the largest corporations in the world. It’s why we’re always at war with or occupying some country somewhere. To quell the revolution and ensure capitalism keeps funneling wealth and resources to the top instead of out to the people!
Communism is not the enemy here!
@@brianatippens3010 the USA is already heavily regulated. We aren’t as economically free as some European countries. What we have are stupid regulations not lack of regulations. We have regulations that protect the rich not lack of regulation
Can't belive they're still pulling prepandemic numbers from 2019 for this report! Home prices have almost doubled since then and incomes are only up 8%. The picture now is far bleaker than the one they draw.
Bring back 3% mortgage rates! 👍
I'd be down for that.
Exactly. My credit score is 800 and I have only enough money for a 3% rate. 😮
That's not going to happen for a very long time.
Do one about Canada. It’s crazy how housing is insanely inflated.
At least you guys regulated foreign investors.
cash only chinese buys! money laundering! LOL
@@viewtifullyvon6465 less then 0.1% of home purchases lol
@@viewtifullyvon6465 just more fluff to distract. Blame foreigners. The new immigrants in Canada are forcing this housing crisis. Trudeau allows all immigrants to purchase homes
No foreign governments or individuals should be able to purchase land or homes in the USA. Massive corporations and hedge funds should not be allowed to purchase homes or land in the USA. The federal, state and city government should also not be allowed to purchase and own residential properties. Then we need to get rid of realtors and mortgage brokers to make way for a simple 20 page purchase agreement between both parties that is signed and recorded at a title company where the keys are transferred. That’s it. Fixed it.
Yep!! Agree 100%
I could not agree more.
if you dont want foreign investors in USA then stop begging for $$$ from China and India. We are sick and tired of funding poor amrikkans at 0% interest rates.
Thanks to our agent boe jiden, the 2023 economic crash will wipe out the wealth of USA and we wont have to export goods AND lend you $$ to buy those goods.
Agree with this! Except I don't think it's possible to 100% eliminate foreign home/land purchase due to many complex reasons. But I think instituting a cap on foreign land/home investments is doable. They will never do this though, sigh...
But yet you keep voting in the same ones who put these laws in place
The root problem isn't financing, the root cause of housing affordability issues is zoning laws, driven by existing homeowners. I'm a homeowner and I think we need to review zoning regulations so that more can afford homes.
I have a nice home with a yard. I bought my neighborhood. Zoning laws that allow a trailer next door steal from me my home value. There is plenty of space somewhere in your city to put up smaller, low rent homes.
There should be more purpose built small to medium sized condos in residential areas to allow for some more density. Having massive buildings can be a different problem, so something 3-10 stories is somewhat more reasonable in residential areas.
Most homeowners don't want higher density dwellings in their neighborhood, that is the reason you don't see it more
The problem with condos is that when times get tough or folks just get into a bind, people stop paying association fees (which maintain the building) -- then the whole building can go down hill. Responssible unit owners can get hit with special assessments.
Greed, greed and greed the reason why all this happens. I will rent forever, owning a house in the USA is a joke now for those who are poorer.
Facts , I still wrestle with owning any property here . I’ll rather live outside of USA completely . The prices of theses homes doesn’t even equate value .
The facts are the youth and people who are trying to purchase their first home are at a huge disadvantage.
The reason being? Time in the market beats timing the market.
Older generations have had more time, and by proxy more opportunities to build wealth and purchase homes. Not to mention the older generations paid less for homes as a percentage of their income. So nowadays it’s older Americans with healthy savings and a property that has already appreciated, competing against first time homebuyers.
Example. My mother/father bought a home 20 years ago it was a new construction for 200k, I was 9yrs old. My neighbors were USPS workers and other middle class families.!
Nowadays I work for the USPS, and those homes I grew up in are 500k. Completely out of my budget. Well my parents don’t need the home with it’s 4 bedroom, 3 bath, 2 car garage. So they rent it out. They are asking 3x what their mortgage is on it because that’s “market rate”. Well they use all the excess cash to pay the mortgage on a smaller property. This sounds great for the older generation, they get to live somewhere for “free” and their other home is appreciating whilst being paid off.
However what this means is that their home doesn’t go up for sale, limiting supply, the family that rents could’ve bought the house for less so they’re spending more money. The cheaper home they bought is taken off the market and the older couple is able to pay more because it’s being covered by the rent of their other home. This raises the values of cheaper homes, which pushes more people to rent which allows rentals to raise their rates.
Owning multiple homes may be profitable but it is a long term drag on an economy when large number of buyers do it. Yes they’ve “earned it” by working but it hurts others who’s only mistake was being born late to the party.
I can’t compete with the 40 years of experience the investors and older people have.
Also the buying power of the dollar back then was stronger.
My parents in 1985 built a new house (1 acre of semi-rural/suburban land was $9k in a still nice area, $80k mortgage for a construction loan on a 2500sqft double garage). Their income was about $45k back then. To have the same purchasing power that they had in 1985, one would need to make about $125k today when just looking at inflation. This does not include student loan debt which definitely well outpaced inflation. Also, they had three kids at the time... so factor that expense in there to even further show how out of touch it all is.
Speculating with basic human needs such as housing, healthcare and food should be illegal
complaining that people have been 'born into the wrong time to buy' is a real lazy argument that smacks of the silly leftwing idea that 'the rich bought everything before we had a chance'.
The two major reasons for property prices are supply and location. Rezoning to allow higher density buildings, releasing larger parcels of land to build on and changing regulation surrounding dub-dividing would immediately help with supply. The next step would be connectivity. People want to live near cities because thats where all the jobs and facilities are. The only work around is a good public transport system such as rail that connects the city and jobs to outer suburban areas.
A third factor would simply be buyers not wanting to buy and live in 'undesirable' areas. Everyone wants to live in the nice parts of town. Very few want to buy a shack on the fringes, renovate that shack and sell it at a profit and slowly move to better areas and build a property portfolio.
I will ad that people owning multiple properties is actually essential in a good property market because those properties become investments that people rent.
@@jayone8891 No one said they were “born into the wrong time to buy…
I said we were “born into a harder time to buy”.
Yes the things you listed would ease the issue.
A person owning multiple properties is not in itself the issue. The issue is when a large number of people do that. Artificially decreasing the number of homes available for sale. Raising the prices of existing homes due to the decreased supply. This allows the landlord to increase rent prices, which brings in more income(because existing mortgages are fixed amounts). Landlords then use that money to buy more properties.
It is a positive feedback loop. Except raising home prices is not actually a good thing. Because it makes ownership increasingly difficult.
In an ideal world the home value would be somewhat stagnant or perhaps equal to the rate of inflation.
Very well said Michael ! 👍 and thats exactly what im seeing here in Canada as well
My family moved to the states in 2011, more specifically in the Bay Area in California(i know...). They have been in the same aparment since 2012. In 2012 they were paying 1050$ for a 2 bedroom apartment. Just this year when they renewed their lease and their new rent is 2150$... Still 100 under other apartments in their area. Keep in mind, that apartment has been owned by the same person for about 20 years. That mortgage is probably 700-800$ tops, and they can get away with getting almost x3 from rent. It is ludacris! Now I live in Iowa on my own and I pay 1000$ for the same size apartment while they pay 2150... And I live in an upscale area here...
Mortgage is not the only expensive a homeowner/investor got. There is cap ex, maintenance, vacancy, insurance, etc. Every x amount of years the roof will go bad, or the tenant broke the stove or refrigerator or the furnace goes out. Oh and property taxes.
With that said your parents should consider leaving California, one of the most expensive states.
Property taxes have at least tripled since then
Thank god I’m a landlord haha
A poor person will always remain poor if they are paying another person to live where they are living.
You need to be smart about Finances.
Life is a game of money some people play it better than others.
@@adamr.kalucki4347 I disagree. We have to pay someone else even if we rent or own the property. Renters pay landlord, owners pay prop taxes, maintenance, insurance, etc. Jus because you rent doesn't mean you'll be poor
@@David-rz4vc yes I know. A smart person will collect the rent. Use the rent to the pay the bills and put away the remaining into an account.
Like I said, anyone who pays someone to live under a roof is getting screwed.
It doesn't help that investment firms like Blackrock and Blackstone are buying up properties in America, and they are making it impossible for people especially my generation, the millennials to buy their first homes.
This is super simple. Thinking of a home as an "investment" is directly incompatible with something that isnt a rare commodity. If the government taxed heavily all profit on housing assets then housing would NOT be an investment and homeownership would become more prevalent as cost came back down to earth. Obviously the government would never do that so the housing market will forever be flawed by design.
How about blocking the big corporate cash buyers and investors who want to do vacation renting instead of long term renting at a reasonable price.
That's illegal
@@karlabritfeld7104 Maybe the companies should build their own vacation homes, like how a hotel has to build the rooms it want's to rent to vacationers.
@@karlabritfeld7104 Time to make it legal so the young can have starter homes and the old can have a dignified final home. Its ok with the rich to steal our homes for stability to start a family or to enjoy the end of life. I do not get my social security raises. They go to the rich corporate land owner who steals the food out of my mouth. I have a roof that is somewhat ok and I can eat to a point and that's it. There is no travel or friends or enjoying anything. Its just existence. But, the rich want me dead so they can steal all of my social security and that's ok with you. Am I correct on that????
As someone who is 28 years old, all I gotta say is man seeing myself in a home is wayyyy into the future. Just too pricy to buy and super pricy to maintain!!!!!
Unfortunately The majority of individuals seem unaware of and careless when it comes to investing, despite the fact that it should be the best thing a person can do for himself. My gains from stocks and cryptocurrencies are still having a significant impact on my fortune. So I have no inclination to rely entirely on my pay or to wait for the market to go up.
You're right, Fear is one of the factors that hinder most persons to invest into crypto, most persons say ignorance..
When you invest in crypto you are buying days you don't need to work
Many people venture into businesses and |nvestment to be wealthy, meanwhile I just want to be debt free.
Cryptocurrency will outsmart the banking system in the nearest future serving as a global fiat. Already making over 85% profit from my 1nvestment
I'm new to bitcoin trading, how can I go about it or is there anyone you can refer?? 🙏🙏
Disappointed car dependency wasn’t called out for the major contribution to all of these problems.
We’ve lived through periods of time when home prices and mortgage rates rise and many here are predicting it will go down. However in past periods housing demand was not where it sits now. Interest rates may return to pre-pandemic levels one day, but it’s still questionable whether home prices will follow due to this national demand. I’d love to see NBC explore who makes up these demand populations. Are they just US citizens and residents needing residential housing? I’ve seen Zillow and foreign investors for example competing and winning contracts left and right, shutting out families who need homes.
Families arent entitled to a home!
Blaming mortgage cost being too high is just ridiculous. Even at today the cost is not historically considered high. The low mortgage cost in the last decade is exactly the reason that pushed us into this affordability crisis.
My grandma's first 3bed mortgage was $56/month. Studios are avg $1500+/mo RENT near me, in a small town. 😧 The problem is NOT the interest.
if the interest rates will go up to say 15%, homes will be 3x your income, not 10x.
Mortgage is not the big problem, big problem is the rich rich rich using their wealth to buy up all the properties, raising prices to Infinity for profit. Housing should be a “right” you said? Stop them from doing that and free up the supplies!
No more government intervention. I'm not willing to give up any more freedoms because you're too lazy to get a damn clue
They're a symptom not the problem. They wouldn't have the incentive if we didn't make housing so precious and rare.
th-cam.com/video/6OZJClSdZ28/w-d-xo.html
A poor person who pays rent will always remain poor.
@@adamr.kalucki4347 This is unequivocally untrue. It really depends on your situation.
One massively ignored part of problem is that Landlords are not required to report good credit; but are happy to harm someone's credit for late or non-payment. This omission from the equation means that renters are not able to build their credit score by renting. And yup, you guessed it, that serves to ensure that rental demand will not decline. Were they required to report, renters would build credit rating and be able to get approved for mortgages; slowly reducing rental demand. After all if there were a record of you paying rent at or above the cost of a mortgage on your credit score, it'd be a bit harder to deny.
Another problem is highlighted when someone says "home builders can't build affordable housing for a profit." It's a bold faced lie. The truth is that they're not allowed to. Housing codes restricting anything but Single Family Homes (literally 70%+ of all coded land) don't stop there; they have minimum square footage requirements and minimum standoff distances which limit the number of homes that can be built per sq/mi. They include minimum parking requirements and many other things that increase the bottom end cost of building a 'legally compliant' home to the zoning. These requirements that any new home must meet become the ever rising baseline cost. If the rules lock down how many homes they can build in a given space, the individual houses must overcome this expense to make a profit. If more houses could be built by smaller lateral standoffs or even townhouses sharing walls for example, the baseline cost is reduced per unit and profitability remains.
To boot, supply increases don't work on their own. Current inventory of new houses for sale in all states of construction in the US has ballooned beyond 470,000 houses. A number not seen since 2008. Let me repeat that. 2008. Across the industry as pricing is too high and financing too expensive, individual buyers are abandoning contracts in droves. US Home Builders have pitched at least 40,000 new houses to corporate rental operators in an effort to reduce supply, but they too are unwilling to buy, expecting Home Builders to eventually get desperate and offer massive discounts.
Although home prices have cooled for the last months, with prices now 3.2% down from June’s high, the pricing adjustment hasn’t been enough to overcome the rising interest rates; "resulting in a stark reduction in demand." R1 (nimby) zoning has forced builders to build to a specific market demand that isn't a reasonable purchase for most people, a demand that simply doesn't exist to the same extent in a 5-7% interest rate environment. But, housing demand is still there. It's just not demand for half million dollar homes when the average individual income is $37k/yr.
When there is no room for real competition in the market, laws and regulations pick winners and losers. These regulations (and omissions) are picking who's allowed onto the property ladder.
And perhaps the most ignored is that pesky "household income." The cost of a home in the early 60s, when only 25% of households had two or more earners, came out to about 5x the median INDIVIDUAL salary. Today, the same comparison requires looking at HOUSEHOLD income. Pricing today's median house at ~5.7x the median dual-income household, now 75% of households. Effectively requiring marriage to gain access to the wealth building aspect of property ownership. While the overall home ownership rate basically hasn't changed since 1985 (64.5% to 63.5%), 78.2% married couples own, but represent just 40% of the US (62m married households or 124m/311m.)
Married couples represent 62% of home sales, Single women follow at 20% (at an average age range of 46-72 where probability points to divorced), and single men trail with just 6%. "Other," which pretty much counts civil unions and unrecognized couples at 2%. Equal opportunity? My eye.
Gee, I wonder who's adamantly opposed to the expansion of the legal definition of marriage; oh, the people that think you deserve to be poor if you don't align with their values. Go to any of your local zoning meetings and see exactly who they are. Listen to their concerns about the "character of *their* community", "traffic burdens", and "*their* property values" when they oppose changes to NEW housing that reduce the cost or the addition of high density housing like apartments. See how they try to push 'the poor' further and further away from them. Laugh as they complain about a lack of workers willing to take minimum wage jobs where they can't afford to live or where the cost of living combined with their commute exceed sense. Recognize how their thinly veiled classism is also racism.
Well said!
I read your 1st sentence and saw the flaw in the argument too early to continue to read. It is assumed paying for something as important and basic as rent should be a given, and only if you are not able to meet the criteria, will it become a factor. Your position is similar to "I take care of my kids". Trying to get credit for something you should be doing.
One massively ignored part of problem is that Landlords are not required to report good credit
@@robertplant2059 if that is the case, then no-one should build credit for paying their mortgage. Ergo, you're the one presenting the logical fallacy. You build credit by maintaining your financial commitments; a rental agreement is such a commitment. So too is that utility bill, the mobile phone contract, that credit card, and so on. Anything to the contrary is an argument to the effect of "it should work for me but not for thee," especially such an argument that says 'fulfilling my financial responsibility should result in proof of my credit worthiness, but yours should not' as the one you just put forth.
You should keep reading.
I got to chime in. If your credit gets punished for missing rent, the logic should be you build credit for paying on time. The market has changed each decade. Legislation needs to be made to protect newer generation, or else, even the families who have houses, their kids won't be able to buy anything unless they stay with their parents and save up or inherit.
Who are you talking about in your last paragraph?
It’s not just the home price but maintenance. That can range from 1-3% sales price of home /year. Paint, HVAC, water heaters, appliances, remodel, repairs, insurance, etc
I work in a credit union and the number one problem I see is that most people are terrible with money. They have no idea how to save. They don’t have the discipline to grow money over time. They have no plan period.
Finally someone said it. Ppl spending more than they make and spending it on dumb stuff.
I own zero properties but I will use this to my advantage to own several homes!
Get rid of non human being ownership of homes. Regulate homes like any other necessary utility. No banks ownership. That's the problem. In 2008, after banks were rescued, then they stopped fire selling homes. That's the origin of this modern crisis. Homes are just equity to banks and investors. they love money and do not value home ownership.
By the time you pay off the house you paid it three times!
Exactly
But that money is also worth a lot less. So like yeah you paid 3X but the money has devalued so much by the end because of inflation.
@@laraantipova389 yes, correct, but some of that money could have been invested to develop long lasting wealth...houses require lots of maintenance...in the end you are losing lots of money anyway
@@FLAC2023 houses cost lots of money probably 1-2% in maintenance per year, and taxes, payment, insurance, association fees etc. but rent tends to go up with inflation. A home is usually bigger and homeowners feel the need to improve the community, while renters don’t (according to all the studies, I am aware you may not follow this pattern please don’t tell me that, the point is that is a theme). The real problem is the equity firms snapping up every affordable house so even nice, reasonable, married couples can’t afford a house. There should really be some kind of disincentive after your 3rd house.
It’s a serious problem. We had a new subdivision being built with 500 homes about 2500 square feet each. These would be relatively affordable homes at 350+ (with the average home costing around 500k) an equity firm offered the contractor to buy all 500 homes. I am not against renting, but there is also something wrong when buyers can’t buy homes.
Lol, I recall my family telling how the Banks, and institutional racism (laws) kept them from buying houses, and buying in certain neighborhoods.
The Small Business Administration underwrites loan for businesses that get turned down by banks. Down payment assistance isn't enough. HUD needs to provide mortgages for those that can afford the payments but cannot qualify and also underwrite smaller mortgages. Closing costs have gotten ridiculous as well. Even with a VA loan, I still had to cough up $15,000 for closing costs.
Hard to make the down payment, the closing costs, then paying to move in etc. Then you have to maintain the house, it can need a new roof, and other repairs. The bills are a big shock for many coming from rentals and there is just soo much that new home buyers do not know about how to maintain the home overall.
Well said. Many jus look at the 2k rent they are paying and comparing it to the 2k mortgage but fail to account for taxes, insurance, maintenance, cap ex, etc
FHA loan?....
@joenunez938 beyond any mortgage there is a lot to consider. Maintenance is often overlooked.
@joenunez938 FHA has a lower barrier and pmi the lifetime of the loan. Still a significant outlay. Always be prepared!
@@JasonRamosNJ Yes, I know. I'm just commenting on the 20% down.