I have bought and sold six homes in the past 50 years. What people don’t factor in is the cost of renovating, heating and cooling, taxes, a new furnace, roof, and so on. Landscaping. All the constant work to keep the exterior and interior in top shape. I have sold my last home and am renting a really nice apartment for half what my monthly expenses were. I’m taking that “extra money” and investing it. VERY happy.
In my opinion, buying a home to live in is a terrible investment. It stabilizes your housing costs and historically goes up in value with inflation and you need a place to live, but it doesn't really profit you much money unless you hold it for at least five years, but ten years is more likely. An investment should not only increase in value, but make money without selling it. An investment should produce cash flow that can either be used or reinvested into the investment. A home costs more than it makes you, especially in the first few years, and the only way to use the equity is to either sell the house or borrow against it. Renting cheaply can allow you to increase your investments and focus on building wealth instead of working on landscaping.
Our economy is ran by homeowners in a sense. The banks make their money from the interest and the homeowners make their money through equity and property value increase over time
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In the UK I have friends that have had to move every year as the place they are renting gets sold. And with buying its forced saving. Are many people who rent actually saving all that mortgage money each month? I doubt it.
Only own if you can afford an unexpected maintenance fee. Such as new roof, new plumbing, new HVAC, fridge, etc. when anything goes wrong. If not, then people would just be house poor
@@Otto760 Best to buy a house that's not going to need those things. Have a survey done before you buy. If its accidental you have insurance for that. As for a fridge and that kind of stuff, maybe you need a new one every 10 years, that's just life. At the end of the day, you either pay your own mortgage or someone else's.
10 years later and I couldn't even rent a room for what my mortgage is. I got my 3/1 in California for 120K in 2015, it's literally less for my mortgage than a single room rents for now. It would cost 2.5x the mortgage to rent this house too. Youd be crazy not to buy when it's far less than renting.
try doin this nowadays bud, it just cant happen anymore. Houses are too expensive. Its because.. Investors buy houses, put a 10-20% margin on the mortgage and rent it out to some desperate young person, working family, or immigrant with no options
I have bought and sold six homes in the past 50 years. What people don’t factor in is the cost of renovating, heating and cooling, taxes, a new furnace, roof, and so on. Landscaping. All the constant work to keep the exterior and interior in top shape. I have sold my last home and am renting a really nice apartment for half what my monthly expenses were. I’m taking that “extra money” and investing it. VERY happy.
Whoa, great points thanks for sharing. Enjoy the newfound flexibility 😎👊
In my opinion, buying a home to live in is a terrible investment. It stabilizes your housing costs and historically goes up in value with inflation and you need a place to live, but it doesn't really profit you much money unless you hold it for at least five years, but ten years is more likely. An investment should not only increase in value, but make money without selling it. An investment should produce cash flow that can either be used or reinvested into the investment. A home costs more than it makes you, especially in the first few years, and the only way to use the equity is to either sell the house or borrow against it. Renting cheaply can allow you to increase your investments and focus on building wealth instead of working on landscaping.
Great points! Seeing a home as "forced savings" vs an investment has been liberating for me.
"no responsibility for maintenance" - no, that's the landlord
🤣🤣🤣👊 I know what you mean!
Our economy is ran by homeowners in a sense. The banks make their money from the interest and the homeowners make their money through equity and property value increase over time
Yeah interesting point 👊
Thanks for the analysis! I need some advice: I have a SafePal wallet with USDT, and I have the seed phrase. (alarm fetch churn bridge exercise tape speak race clerk couch crater letter). How can I transfer them to Binance?
No idea sorry
In the UK I have friends that have had to move every year as the place they are renting gets sold. And with buying its forced saving. Are many people who rent actually saving all that mortgage money each month? I doubt it.
Man what a bummer to have to move so much! Yes I completely agree that it's unlikely that most are truly saving the difference.
Only own if you can afford an unexpected maintenance fee. Such as new roof, new plumbing, new HVAC, fridge, etc. when anything goes wrong. If not, then people would just be house poor
@@Otto760 Best to buy a house that's not going to need those things. Have a survey done before you buy. If its accidental you have insurance for that. As for a fridge and that kind of stuff, maybe you need a new one every 10 years, that's just life. At the end of the day, you either pay your own mortgage or someone else's.
10 years later and I couldn't even rent a room for what my mortgage is. I got my 3/1 in California for 120K in 2015, it's literally less for my mortgage than a single room rents for now. It would cost 2.5x the mortgage to rent this house too. Youd be crazy not to buy when it's far less than renting.
Whoa that's wild, thanks for sharing!
try doin this nowadays bud, it just cant happen anymore. Houses are too expensive. Its because..
Investors buy houses, put a 10-20% margin on the mortgage and rent it out to some desperate young person, working family, or immigrant with no options