I Feel Like Renting is Wasting Money
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- เผยแพร่เมื่อ 18 พ.ย. 2020
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Work with a trusted real estate agent when you are ready to buy: bit.ly/3CWZGsS
😂😆 Lol
“I wasn’t wasting any money renting, because I wasn’t ready to purchase a home.”
That’s it.
$100K home, USDA, less than 0% down (negative equity loan, 0.35% for the life of loan)
@@aolvaar8792 there is no $100,000 house here California
@@jenti422 Yes, MOVE
USDA Rural Home Loan
Less than 35K population
Less than $119K Family income
I did my Landlord gave me $10K to break the 30 year lease (15 years left on rent control)
In 2010 houses on my street sold for ~$40K, $10K down, $180/mo
@@aolvaar8792 I'm confuse! We are going to move where?
@@aolvaar8792 That was long time ago. Maybe now it's more expensive.
"I'd rather move from an apartment to a house than a house to an apartment," -- Best aunt quote ever
Dave really teaches lessons on humility more than anything else. Don’t spend or buy homes to impress your friends or society, those who really like you don’t care.
My bumper sticker says, my other car is a 401k.
@@justinacase2623 that’s awesome lol
exactly. only leeches would care about how much you make and you can attract them by being so shallow to show off things you didn't initially want to buy but did just to show off. I've had friends of all socioeconomic standings growing up when I was little - wealthier than me or less wealthier than me. And I never looked at their socioeconomic standing as a big thing.
@@laur-unstagenameactuallyca1587 they are called gold diggers! How many super models date homeless guys? How about zero. You just woke up now into a red pill world.
It was the American dream to own a home. It make since in the 1950.
The government passing ton of laws to make own a home more affordable.
The problem is that most people are not financially responsible. That why we have Dave .
130K household income at 23. If they get their act together and stop trying to live the luxurious lifestyle they should be fine.
I thought they were making $130,000 each.
After taxes too. Seems crazy high. Probably some bs useless government job.
@@MrJay197409
They both make total of $130k after taxes renting a high end condo/apartment. They could knock off $500-$800 a month with smaller place.
@@mxerb5912 she mentioned he was a consultant
Mr. Carroll Ware Wait, are they both making 130K or 130K combinedv
buying a house while in debt is like brushing your teeth while eating
haha I love a good analogy...
I love this!
Except when a house is cheaper then renting in many cases.
@@user-wq5ws1qs7x until the roof leaks, or a hot water tank goes, etc.
@@user-wq5ws1qs7x a mortgage will always be cheaper than rent however once you consider the roof leaking, the water heater, HVAC or any little thing going wrong the scale tips so fast it’s crazy.
"Spending everything you make just to look like you're not broke." That's a classic. I'm going to plagiarize it.
🗣🗣🗣🗣💯
And your not really a cpa🤣
That part👏🏽👏🏽👏🏽!
‘Don’t go broke trying to look rich’
We used to say "Buying things you don't want or need, to impress people you don't know."
Christmas Eve I will be debt free after paying off 135k in student loans in 23 months! Best day of my life!!
God bless you, sir!
How much did you pay off per month?
@liveyourbestlife 1 Thank you! I'll be a tad upset if they forgive all loans in the next few months. Refund! lol
You go boy, I mean Sir.
nice
people aren't patient, that's why we are all broke , we want it "now"
I know of someone who bought a house, invested time and money renovating it, and diligently paid the mortgage for 26 years. Sadly, illness struck, leading to the loss of their home. The devastating blow sent the homeowner into a deep depression, and within a year, they passed away. It's a heartbreaking reality that often goes unspoken; we're accustomed to hearing about "forever homes," but life's twists can sometimes shatter those dreams.
The US is the only country in the developed world that has people going bankrupt because of medical bills.
$2000 in Arlington is not "too nice", it's just an average one / two-bedroom apartment...
A lot of housing in America is overpriced for what things are worth. In Seoul, Korea a couple can still find affordable and decent living place for 400-600 a month, making roughly the same as American counterparts in terms of their occupation. That city is also far better in terms of public transportation. American cities need to get it together.
facts. all of nova
That’s what I’m saying. 2,000 is damn near an the price of an efficiency
$2,000 sounds cheap tbh... if you want to live withing 1 hour of commute. Unless if you dont work in the City
The Jones’s in DC are nuts!!! Truer words never spoken. Funny and spot on.
You can literally buy a condo 3 times cheaper in Maryland than in DC and about 15 percent cheaper than Virginia. Montgomery County or Prince George County are excellent.
*Democrats
Don't make an emotional decision based on temporary situations!
Exactly !
That’s the first time I heard him say something other than “better than I deserve”
i see people who have a house but nothing else because their broke and living check to check. Having a house isnt the ultimate goal.
That is true. However, it can be a great investment depending where you live. In some areas it is cheaper to own a home than it is to rent. Sadly tho, there are a lot of people that cannot qualify for a house loan.
I bought my house when I was 25. It was tough living paycheck to paycheck. Rent would have been $300 cheaper. But 20 yrs later my home was paid off. The same place I’d looked at renting is now $2500 a month, it was $700 when I bought. My house is worth 4x what I bought it for.. I just pay $2200 a yr in property taxes. It allowed me to semi-retire at 49, and I put the money I would have paid in mortgage payments to income generating investments. What worked for the area I live in, won’t work for all areas. Real estate is based on location. I bought close to a beach in California. In a new housing community. Now that it’s all built out, the demand to live there is HIGH. But supply there may be 3 houses for sale in a 5 square mile area. There’s no more open land so no where to build.
The thing about buying a house is initially it sucks because the mortgage payment is the same if not more than renting. HOWEVER, as time goes on (generally speaking) rent goes up, and mortgage payments stay the same. That means theoretically if you rent a place for 10 years, you may start out paying $800, but at the end of those 10 years you are likely paying $1200+. Someone who bought a house nearby may start out paying $1000/m, but 10 years later they would still be paying $1000/m.
*You can also sell the house*.
*You can also live rent-free when the house gets paid off.*
Not to mention more rooms = more things "needed" to by to fill those rooms!
Furniture can really add up!
@@annietribble3062 Yes here in Dallas, or anywhere in Texas. It’s so much cheaper to buy than rent. The mortgage of 2000 sq ft is cheaper than some 1 bedrooms here
The Dave Ramsey show, the only place where "You got a nice place!" is almost an insult. ❤️🤣
😂😂 I was just thinking that! Same thing when he says “you got a NICCEE car”
$2k in rent for the DMV is on par for an okay place to live.
@@mattm7115 $2K a month is a low number to me.
@@fredferrell I don't pay that for my 2 family house,and take $900 a month income from the property!...You folks live in the wrong place.
@@tompain2751 In reality, what matters is the % of the income you spend on rent, not the amount. Some places have higher costs of living alongside higher earnings for the same job. For example, in my field stipends in New York for a Physics Phd programs are higher than Floridas, but cost of living in some of New York's school is so high you end up with less money each month. But it depends in the area and the school, you do not know until you do the math comparing potential earnings to expenses.
There is nothing wrong with renting just like there is nothing wrong with buying. The difference is choosing which works for you.
Rented for 5 years at my place and was hit with a surprise non-renewal notice by an evil, spiteful landlord who wanted retribution for past complaints and to hike up the rent again.
At least with paying a mortgage, you have more stability and security.
Renters are at the mercy of landlords and their whims.
I've spent $80,000 on rent. And in one month I will be homeless.
It is a COLOSSAL waste of money.
I have half a mind to return to OTR trucking or saving up for an RV.
It’s a waste of money. I agree 💯. Working or being in a job you’re constantly being pressured by your boss and coworkers. I can just live in a mini van for 1 years and save up to 100,000 a month. W point. The guy responded to has no idea how hard it’s to earn money.
@@TheIdentifiedPatient Have fun wasting money with 7% interest rates, record high home prices, etc. Also have fun replacing that HVAC in the summer and roof in the winter.
@@TheIdentifiedPatient going back otr and getting a RV shit brother I call that smart living. I know plenty who did that, it's really a smart move.
@@matthewphillips5483 not all properties are single-family homes. If you own a condo or otherwise a unit in a multi unit structure, you’re insulated from surprise fees. They’re rare due to the property management, and when you do get hit with big expenses, they’re spread out across the owners (a special assessment), and if the board is well run, it’s usually no more than a few thousand USD. Do not rent. I own two condos and I’ve lived with my parents until I was 26 (I’m 28). Renting is a waste of money.
Dave must think this is 1980. 2000 a month is a steal in arlington
If you go to a restaurant, and eat a nice meal, did you 'waste' your money, even if the food is now gone? No because you got something you needed and enjoyed. If you rent you're not 'wasting' money because you get a roof over your head and a place to live.
A lot depends on if you have outstanding bills and how much you spent.
If you have bills past due date and you have to put the meal on the credit card, yes, you wasted money.
I don’t see your logic. Priorities are first, don’t waste your money on luxury such a nice restaurant better learn how to cook buddy
@@pedrogomezrodriguez4121 keep trying, you’ll get it.
I see your point but not the best analogy. Maybe "go to a doctor for a physical" instead of "go to a restaurant for a nice dinner" would have been better.
It’s not a waste per se, but you aren’t building equity. 100% of money paid in rent, you will never see again or be able to use in the future.
they're killing it, especially for 23
@9INE PLANETS I assume from your saying 'was', this is no longer the case. Best not to compare your situation with theirs. ;)
I’m 37 and no planning on buying a home anytime soon! That 20% down payment (70K) really hurts, I’d rather keep getting dividends and capital gains on that 🙌 besides, I have the freedom to go anywhere I want, if something brakes just call the landlord, etc...
The chemistry between Dave and his colleagues is beautiful.
He is a great youtuber and podcaster , Anthony O’Neal
A true servant leader!
“Chemistry” ... I would fake chemistry too with someone paying me millions
I just saw your comment on another post.
"I'd leave her where she is"
Kemist
Rent, pay off your debt, then start investing like crazy. Ignore the hype of owning a home. Learn how to invest well and you will outperform investing in a home.
Love this advice💯💯🥂
@Go Live Leverage is for gamblers because leveraged bets only work for shorter time frames. You have greater odds to lose with leverage.
@Go Live Why comment on my comment and ask me this just to say I don't have a clue?
Quality post this.
I hear people talk about investing all the time. But invest in what ? I cant get a hold on anything. I would be happy to have a grab on 3-7% return
When you buy a house EVERYTHING suddenly breaks all the time or needs repair/replacement. Which costs $$$
Yes, but if you have a warranty it’s not $$$$
@@hopalongjohnny9797 are you 5 years old? nothing ever breaks under warranty
Here's how the insurance company makes a profit. Makes it more expensive
Warranty = Avg cost of maintinence + OUR EMPLOYEES SALARY + OTHER COSTS + PROFITS FOR SHAREHOLDERS
@@DXmYb Bought a home, FHA required Home warranty.
Moved in (REO), made a list of non working items.
Water heater, oven, garbage disposal, dishwasher, over range microwave
Cost of Move-in warranty, $452
I manage a hardware store. You wouldn't believe how many times I hear, " I don't need to fix it correctly, just good enough to sell." It's always with roofing, concrete work, and plumbing 😂
There are so many more expenses to owning a home then people think. I wish everyone was more open about all the extras you have to pay for. People might be a little more content renting until they’re financially stable
Agreed.
Yeah taxes, insurance, and mortgage interest really add up. I know people that only rent because of this and instead invest more.
I don’t agree. If you don’t over extend yourself and actually save for when these problems happen. You can’t sell all those years of renting when you want to move on. I went from a two room in a triplex to a 1300 sqft home for half the price of rent. So for half of what I was paying I get an investment that will contribute to our future. I have friends that bought at a home at 18 years old. Ya it was hard for them but the homes where later used to move farther forward.
People aren’t more open about the true costs because that would highlight that their decision to own was in fact just as expensive as renting. Therefore they would be wrong, and people don’t like being wrong.
usually the older the home then more expenses.
Her: "I feel like"...
Dave: NUMBERS. Your feelings don't determine reality.
He says just before launchiing into an emotion-fueled rant.
You are correct
@Matt he didn't say to live without emotion. He stated it wasn't reality.
It’s his way of not having empathy.
I am 35, single, and making 75k/year with zero debt and I STILL am not ready to own a home mostly because I hate the state/city I live in and plan on moving within 5 years. I also hate mowing/shoveling snow with a passion.
Same, mostly because I don't know where I want to stay yet.
Hope you got someone. Being lonely at 35yrs is very bad
Same. 35, single, 80k/year, zero debt. Renting because there's a high chance I'll move in the next 5 years.
@@andytownsend19projecting?
@@davayun meaning?
“Well, who’s gonna pay for them, Elizabeth Warren?” 😂😂😂😂😂
No AOC. She wears 20k clothes so she can pay for it.
Googled Elizabeth Warren and found she is a senator from Oklahoma, Is that whom they're referring to actually ?
@@virtuosowins OK and MASS
2000 for rent in Arlington split between 2 people is not bad at all.
Yeah totally agreed, Dave says Arlington is expensive but don't think he really understands...$2000 a month for 2 gets you an ok townhouse in the area lol...he had great advice though...pay those loans and buy the house when you're ready
They’re married so it’s only one not 2. If you’re single and have a roommate it’s not bad at all.
@@FloppedPizzaParty townhouse ? Lol more like a 1BR apartment in one of the older buildings in the city .
@@tomsa2796 to be fair 2 separate incomes but agreed, roommates help a lot!!
@@bangladeshirealtor if it's modest, a townhouse is definitely doable for 2k, though I agree with your sentiment... Arlington is just incredibly expensive. MD will always be superior imo for working in DC area with the best living conditions that doesn't kill the bank
Property tax is a reminder that you don't really "own" your home
Or if it's in a hoa community
Yep
And...home owners' insurance.
@@mattmorris2141 if your house is paid for you wouldn’t get home owners insurance?
It's killing us in California
$2k is really not bad for Arlington at all. Renting in metro DC is quite a bit cheaper than buying considering any decent house in Fairfax or Arlington county is $750k minimum and taking into account closing costs, repairs, insurance, HOA, condo fees (if necessary), property tax, and opportunity costs of taking money out of the market for a large down payment. You end up paying $3500 a month for a house with maybe a few hundred going to equity.
Yep! As a DC resident, they’re making out like bandits paying 2k in Arlington.
I’m 29 and I make 6 figures and I still don’t think it make sense for me to purchase a home yet and I have 0 debt
I’m trying to be like you
We rented for 3 years before buying a home. People criticized us but 🤷🏻♀️ people will always have something to say. So glad we waited until we were actually ready.
Yeah and now where are they
No matter what you choose, somebody will criticize. Do it the smart way for you.
My partner and I try to rent as cheap as possible making $143k combined
@@kennnnnnnnnnnnnnnnnnn1242 the quality of the kingdom is in the character of those who reside, not the cost of rent. good job, guys
Sometimes it’s cheaper to rent than to pay interest on a 30 year mortgage if you can’t put down a large down payment. On a 30 year term at 4% interest you’d be paying 165,000 in interest on $35000 loan. Yikes
I love when anthony said “I wasn’t wasting money renting because I wasn’t ready”. Best comment
Renting always gets a bad wrap, but when you factor in house maintenance, taxes, closing costs, insurance, time downpayment isn't in the market, etc, it's not always the golden goose it's seen to be (especially when you're young and might move around). Home ownership certainly can be profitable, but it's important to find the right time!
DING DING DING!!!
Just FYI, it's bad rap. Not trying to nitpick, just trying to be helpful. And yes, agreed, renting makes sense in many situations.
And if you get a mortgage, you’re going into debt. 4% over 30 years on a 300k home = 215k in interest. You’re giving the bank $215k for the privilege of living in a house. You don’t own it, the bank does until you pay it off. I’m dumbfounded by the amount of people who don’t understand this. They only see a lower monthly payment and that’s it. 🤦♂️
@@JohnnyD5 Haha I googled the difference and Merriam-Webster stated "Bad wrap is considered wrong and is best saved for referring to wraps and tortillas". You learn something new everyday!
@@YaYousef5 do you know in 30 years , your home would worth a lot more than 300k ? I bet it will be doubled. Also, while renting, you putting away at least 15k a year. 30 year = 450k into dumpster . Furthermore, the rent price is not consistence, 15k a year will go up by ~3-5k every 10 years.
YOLO = Thank God It’s Friday, Oh God It’s Monday 😅👀
Please tell me she made up that name.
Who names their kid after the drink mommy had when you got conceived.
TSLA calls, YOLO
Dave: “2,000$ you live in a nice place!”
Me in SF: what??!!
Yeah in Arlington VA that's not into "nice place" zone.
@@PaulSullivan828 Exactly what I was thinking. So confused right now.
It's like that literally everywhere with rent now, not even just "nicer" areas. I've looked at apartments in several different cities, and a 1/1 is always $1200 minimum, nicer apartments are up to 15
@@brendanpeck9780 We own a rental in a small college town, and charge $875 for a 2 bed/2 bath updated home. It's all about location. Most places are not like CA or VA.
Haha right?! Yeah in LA a 1 bedroom on the low end is $2500
I understand the renting concept. But i bought a dump when i was 19. Mortgage was $400-$600 less then renting in the area, and that included insurance and taxes. Knowing that i set aside that same 400 every month to take care of expenses/repairs. Now 10 years later. My house is paid off debt free and renovations have been done. All with just the money i set aside a month from the difference between mortgage and rent.
Great stuff Ian...thats why I am unashamedly pro- buying, even if it means eating beans and rice in the short term.
Smart, smart, smart! Way to go!
How did you qualify for a mortgage at 19 tho
@@callmeosho7792 idk man. My friend was able to purchase a home at 19 (Rochester, NY 1999.). He put down ~ $2K; I don’t know any other details though.
@@mazibukomail the trick is calculating the TRUE cost of buying vs. owning before making your decision. The cheaper option varies by region.
"Because they're not gonna be forgiven and you'll be saddled with them the rest of your life and they are the major impediment between you and building wealth. That's the bottom line."
2 years later it seems prophetic. Don't trust empty promises and get a head start on your debt.
My rent is cheaper than property tax of the average house. And size is just enough for me.
Will you clarify your comment? Maybe one month of your rent is equal to one year of your landlord’s property taxes.
@@greenmean230 you are probably right but for anyone buying house after 2018 my rent is cheaper than their property tax. BTW my landlord got the house in 1970s. This is the stupidity of American capitalism which is capitalize the gain and socialize the loss.
I can see that. Property tax is $10000+ in $1M+ homes here in Bay Area. So if your rent is less than $1K, it's cheaper.
@@kiraasuka9943go live in a more communist country than America then. You can move now since you rent!
TH-cam recommended this video to me... watched it... now I'm hooked on the show!
Hard to save for a home when apartments are just as much as a house.
Thats what i think. I personally think if you can save up enough for your 20% down to cover PMI, and you are still able to afford the payment without issues, then you are building equity instead of renting and throwing the money away. However i do think renting to get an emergency fund saved up and your 20% down is a good idea.
Or more.
True..if this is the case ..then renting is better option..when things break down..its fixed by property management like pipe bursting or sewage problems ..its fixed by landlord..if we buy its out of our pockets
@@blissessentials524 Try not to break things. Then owning is better
@@blissessentials524 that's if you have a decent landlord that gets around to fixing things. I've seen too many that neglect their rental properties, renters having to beg their landlords to get things fixed.
Dave, this is NOT the 70s... today 2000 is NOTHING in Arlington VA. You advising them to get out of their place and go where??
found plenty of appartments between 600 and 900 sqft for under $1500. if youre in your early 20s you dont need to live like you made it already.
@@La_sagne where were those apartments? In Seattle (the only place my family can make a decent living) the cheapest rent is $1500 not including utilities or electric.
2000 for rent is insane to me, regardless where you live
For real. That’s what I was thinking, $2,000 doesn’t even get you a one bedroom in Seattle.
@R W apartments com.. type it in and youll see
I'm 30 and I rent and I love it. I don't have to worry about spending money on repairs or maintenance. I pay $550 a month for a 2 bed/1 bath in Oklahoma.
Wow 😳 I’m moving to Oklahoma. I pay $1600 for a 2 bed/1 bath in Connecticut.
$550 for 2 bedrooms? What? Do you live in the boonies? I paid that in college sharing a 3 bedroom apartment.
$550? Wow. I thought thought I was doing well at $745 for my 2/1. What is your annual income if you don’t mind me asking?
@@adfmo2195 I make about $32k before taxes
@@TMartins379 I live in a residential area!
Thank you for sharing this.
Back in the 80's I rented an apartment in Arlington Texas. Now in 2021 they call Jerry's World. It cost me $290.00 a month no bills paid. Now it is sec 8.
Bought house and a couple weeks after, the water heater broke. Spent 2k to replace. Welcome to home :)
I’m a plumber, I can do it for cheaper!
Ya thats what scares me when i own a home..just so many expenses compared to renting.
Old water heater and undisclosed water damage to flooring under the fridge the seller generously left for us. 2000 to fix both. Also home inspector also did the pest control for the house a month before we closed. What a coincidence
Should have hired a home inspector. You could have negotiated the price you paid for the house
Wow, I got this video today when I opened TH-cam, after finding out the bank didn’t approved my mortgage, just what I needed to hear.
Thanks
I really needed to hear this today. Thanks guys!
I’m 52 years now and we did this when we were your age. Dave’s advice worked for us and paid off. I was always so confused as to why we couldn’t afford all the extras that our neighbors had, until years later and saw their bills came due and they lost their stuff and we got to move up.
Amen
Exactly. It should be a requirement in schools at a very young age to read “Millionaire next Door.”
Or our poor friend whose husband passed away and she didn't know he had taken out a second mortgage on their home and spent the cash! Now she is elderly and can't retire! But they sure looked good when her husband was alive!
Did you take one to Dave’s Programs?
It's not really wasting money because there is an upkeep cost to owning a home.
Yup, property tax. It's more like "licenced permission to claim something". And if you dont pay the tax, the government has the authority to take the home you "own", whereas if you dont pay the rent the landlord will have you evicted. I know what taxes are for and all, but why tax somebody to own something? It's like it's just a subscription. Sad truth is you own nothing when you live under capitalism. Renting makes sence as it's not your house technically because it's on your landlord's property. So your paying to Barrow the place you live. Simple and understanding enough.
Where do you, think the up keep money comes from ????
Thanks for the perspective you guys offer!
Tremendous leadership!
I live in this area and Arlington is one of the more expensive neighborhoods. They can get a decent one bedroom apartment in a different area, still close to DC for $1200-1500
My parents' generation. Bought homes. Low prices, low or no taxes. No income taxes some places. One car often. no student loans. No extra spoiled kids. World now is COMPLETELY different
Yup
Man, you guys are the best 🔥💯
This helped me so much thanks Dave!
I'm glad I didn't follow this advice. At 23, we bought our first home in December of 2018 for $250k (new build, so maintenance was minimal). Our rent at our apartment was $1200 a month, and our mortgage was $1600. We just sold our house for $390k, and used the proceeds of our sale to pay off all our debt, PLUS we put a huge down payment on our next house. We will have the new house paid off in about 10 years. Oh and our old apartment complex is renting the same apartment we were in for $1750 a month now......
Idiotic
Very happy you got a great break in life. Unfortunately I half agree with you and with Dave. If you are in the position that your home will be an excessive amount over your rent. You should keep your head down and save a little longer. If you have the funds to actually buy a home and think you should spend that on student loans first, you're wrong. Spend that on buying a place that will give you a roof over your head. Worse case scenario in life you end up with just that one home, BUT it's your home.
This is really bad logic. It's like saying extended warranties are a good deal because you were one of the few people who broke down. Bad decisions do not become good decisions just because sometimes things work out.
Dave's advice left out what he usually says which is don't buy a house until you've paid off debt (school and credit cards and cars) and have your 3-6 month emergency fund in the bank. THEN you can buy house within your budget. So Tim, I assume you were in good financial position with good income to buy that house at 23?
@@LordScrambles couldn’t have said it any better
If you don’t have enough money to buy a house outright you pay interest on the mortgage. That interest is effectively rent. It allows you to live in a house you don’t own until you have paid off the mortgage. Of course it’s a little more complicated than that because you take on the liabilities of the property including maintenance, insurance and either profit or loss in the value from the moment you “buy” it. So the much quoted idea that rent is dead money is a myth. If you rent you are paying the owner of property for the use of the property. If you buy you are paying interest to the lender for the use of the money. Interest = rent.
Love you guys!
I was able to first buy in my late 20's but it didn't feel right so I waited till my late 30's and I am glad I did. I felt 100% at peace when I walked into my home and knew it was time. If it doesn't feel right that is your intuition telling not to so listen to it.
I never owned a home and am in my late 30s. I'm almost ready for the home chapter in my life but I'm able to do so debt free and you are right. It is a different feeling feeling ready vs not feeling ready.
Bought my first house at 30. At 43 now and I own 6. I think they will be fine.
Can you give me some advice I'm 25 years old and I just bought my first home I would like to buy some rental properties as well
Cheff Jeff best advice is just do it. I have 2 rentals and bought them at 22 and 23, don’t get into unless you are handy. And don’t buy dumps. But if you have the money saved to buy one I say dive in. You may find you don’t enjoy being a landlord, talk to a realtor in your area. Buy something fairly move in ready
@@cheffjeff5908 do real estate wholesaling to build capital so then you can invest and pay down rentals while having renters pay as well, so you’ll double down on the payment and start your passive income stream faster
Out of curiosity, are they all debt free? (Your properties)
@@tinawelch2545 My primary has a mortgage. All my rentals are debt free.
This duo is like fire and ice. It’s pretty dope.
❤️ Love it, Ramsey Solutions!
I'm 48 and I never listened to Dave Ramsey before this weekend. I love this guy! Finally someone who gets me!
Consider also, that you could go a different route than buying a full big house. What about a bungalo or a smaller, cheaper place to live that you could still manage to have a partner and child live in comfortably. Look into cheaper housing options that you can own. What about living in a caravan somewhere (if possible based on location etc), rather than renting? It could be way cheaper than renting a flat.
I used to live in Arlington about 17 years ago. Back then we were paying $1400 a month for an average 2 bedroom 1 bath apartment in the "hood"/ South Arlington. "Hood" in qoutes because even back then Arlington was too expensive to have a proper hood. More like lower working class with immigrants. $2000 a month rent today in Arlington is not crazy. Arlington is basically DC and you're going to pay to live in that area.
I doubt they are paying 2000 for a studio or 1 bedroom. They are barley married don’t have kids so don’t need extra room!
$2000 a month sounds pretty cheap in Arlington
@@bigpap90 2500/ month for a 2br apartment is pretty standard in that area.
7:09 Very astute observation, Mr. Ramsey.
Great video. Can't wait to see the progress
Renting is better than negative equity. Also, being able to invest funds into assets that are gaining value quicker than property is a benefit of renting.
Almost nothing in existence grows equity faster than a home in the 100+ years we've tracked it, for most families a home is the ONLY way they improve their quality of life in a shorter amount of time than decades
@@jtowensbyiii6018 Literally lots of investments grow faster than a home. Just buy an SP500 index and you'll make about 8% every year (on average). Most homes don't make even half of that.
Renting gets such a bad wrap
Excellent advice. I hope she follows it.
Great advice!!!
People need to factor in cost of living when deciding where to work and live. A $130k income DC while having $80k in student loans and $2000 rent will leave you struggling to make ends meet. God forbid they have a kid or two.
Give me that kind of income and I'll show you how to make it.
2K for two people? Almost sounds like free rent
I bet they’ll probably have a kid before their student loans are close to paid off since they just can’t wait to start a family. Then they’ll justify buying a home because their apartment didn’t have enough space. Then for the second child, they’ll probably justify a loan for constructing an extension to make room for the second baby.
When having a child, Dave recommends going in stork mode and piling up cash while paying minimum on debts, so if they are following Dave's advice, they'll have money for the child before child is born. Having a child while paying off debt isn't impossible with proper planning. You can go back to gazelle intensity on your loans after baby is born and you know what your monthly expense is with child included.
Truth! 15 years ago I tried to talk my sister into moving to Arizona. She was a teacher in SoCal and her husband a business manager. That business was opening in our town and they needed a manager. He could have gotten that job. She told me that the salary fur teachers was half of what it was where she lived. Great except yip are skipping that a nice house here (this was 15 yrs ago) was 200 k and a nice place there was over a M. Then there’s taxes which are higher in California. Fast forward to today and she is still renting. She won’t consider buying a town home even though they were down to 400k when the market collapsed. It has to be a house. She has set herself up to be miserable forever. Meanwhile rent has gone from 2k to 3.5k a month where she lives and she realizes at some point she won’t be able to even rent. Watching people make mistakes is so painful
House comes with taxes, insurance costs if you dont have 20% down, repairs (renovations, upgrades, boiler, water heater, plumbing), cleaning costs, yardwork. It is definitely not an asset
FINALLY! Someone agrees with me.
Manny your points are all valid.. but Owning a home is an asset / investment because you can be in an equity position and sell your home for a profit. Your points are valid because you listed liabilities against a mortgage. Bottom line- don’t buy a house until it’s the right time 😀
A house is definitely an asset
It’s absolutely an asset. The appreciation typically exceeds the maintenance costs - by a long shot. And when you get a 15 year mortgage, the home pays off in 15 years or less and your monthly payment goes away which means increased cash flow and increased ability to build wealth because a huge chunk of money is freed up every month to invest. When you rent, the monthly payment never goes away and it increases every year. Chris Hogan’s book Everyday Millionaire shows the the biggest commonality among millionaires with a net worth of $1-5 million is wealth built in their 401k/mutual funds, and a paid off home.
A house is still an asset
Love you guys 💪🏿💪🏿
All these 20 year olds sound like 40 nowadays. No trying to be mean but I wonder why that is now.
Yeah its just the scratchiness of the phone
Yeah when she said 23 I was like 😐.
20 year olds are worried about how they’re going to afford to live.
Because we are stressed out of our minds. Cost of living skyrocketing + stagnant wages and inflation. Its tough out here.
Because we already lost our souls
So glad I convinced my wife to live in the cheaper apartment for our first 2 years while we saved for a 20% down payment.
Tried that with mine it didn't work very hard headed
That's the wise thing to do.
That's cool. Cheaper apartment for me is in the ghetto. Not happening.
Why 20% and not 0% or less( negative equity loan)
@@aolvaar8792 buying house with a 0% down payment is a bad idea. you want to pay *as much* as you can up front to avoid paying interest down the line.
Dave gives me inspiration to get my butt out of debt
Sound advice!
I recently moved out of the DMV area. I had many coworkers who wouldn’t be able to go to lunch because they were trying to save money, but they “owned” a 600k-1 mil home that was a 1 hour commute each way to work that they were driving to in their new Audi A4/BMW 3 series. 🤦♂️ Most of them didn’t know what an ira is, or the ones that did said they were going to start putting money into it after they pay off their 100k in student loans.
Lol.....typical American people. Schools don’t teach the importance of finance. I love hearing people at my work say, “I’ll pass on the chipotle order because I’m saving money” but they have a brand new Mercedes lease in the parking deck. Hahaha 🤣
Interesting anecdote, articulated well, but sad to hear.
What is a DMV area? This story is too funny? Is it really true?
@@AltaicPride01 DMV: DC Maryland Virginia
If you're living in Arlington. $2000 isn't much Dave. You have to move away not down.
Yeah, I live in DC and it doesn’t sound like Dave has been here in a decade or two. Many people would sell their right arm to pay 2k in Arlington.
I was confused as well. I think Dave had some sort of mental blunder here. They are spending less than 20% of their take home pay on rent. That is immensely low. Rent is not their problem.
Great advice AND they will learn how well they work together. While eating beans and rice take on your health ...workout for your entertainment enjoy nature together etc.
Homeownership will definitely take all your money. Over the years I've replaced the furnace, hot water heater, roof, exterior door, windows, multiple appliances, electrical and plumbing work (including water main to my house), as well as tons of other projects. Eventually though, your house payment will be lower than renting. The value of my house hasn't changed much over twenty years but rent prices have continued to rise. Once its paid for you can then work for a lot less or retire. Your property taxes continue to rise they will still be much lower than renting.
Nahh you get more Value back even if it 25% Per Year you earn more. Having a Home is like a easy Second Job.
My daughter foolishly purchased a very expensive condo, because her manipulative boyfriend demands the best of everything - especially if she's the one that pays for it. I found the exact same condo, within the same area, for less than half the price. Since buying the condo, they suddenly married. She no longer speaks with me.
I don't think I want to leave any inheritance to her, because he just wasted hundreds of thousands of dollars. I worked all my life saving the majority of that money while supporting her. She worked really hard to get a doctorate degree and it's all gone to waste.
This entire situation has left me very broken-hearted. As hard as you work to save money, you have to work even harder not to let master con artists take it away from you.
so true
I wish you and your famy the best Diane. Sorry to hear about your situation.
n-mom alert
Buy a home, rent it out and live off rice and beans. You will be making money from the rent while also making money from your regular 9 to 5 job. That double whammy of income plus owing an asset (the house) is the secret to building wealth.
these two have great chemistry!
yeah especially in terms of $$$
Omg he is from Arlington ? That’s why I love him!
Dave keeps stealing Anthony's thunder. LOL
“ How Long You Been Married?”
1:28
Too much thunder came in hot
@Anna annanymous it's nice to have different perspectives... and they have likeable personalities.
dave is daddy anthony is baby for now. soon anthony will grow and take dave's thunder back : )
Some people call just to flex.
Bought first appartement at 31 but... With the company I cofounded, was a job perk instead of paying ourselves better (and getting taxed) and we had 7 years of strong finances to show. Bought my first home alone personally at 35.
Really good video here!
Rent is like throwing your money in a fire, but I would rather live in an apartment for a year or two to save up for a nice house than to buy a cheap house that I don't like
I live in and love Los Angeles, but he is right. I have so many friends that spend $100 on a bottle of organic wine, have a $3200 apartment, credit debt and no savings. Bizarre!
Is rent really that high?
@@juliettezea9507 yes! But not all areas of cali!
@@juliettezea9507 it is
anything over 2,000 for rent is insane to me unless its a 2 bedroom
@@juliettezea9507 it's almost impossible to find a 1 bedroom for under 1200 in all of cali in an area you can actually work a job, and in the major cities a 1 bedroom is 1800 average
If you only live in a place short term its not.
OMGOODNESS, always pay off your debt first! Amen, preach it brothers!!!
I would always disagree with this. I would whether buy as soon as I can instead of staying in a home paying someone else a month.
If Dave retires I'm gonna watch his old content. I can't get with the new people 🥲
Why because he’s black?
That’s racist ..
@Anna annanymous how do you know that?
@@harryn2304 Profile picture. Should be self explanatory. And even if that isn't them, why would they put a picture of a POC as their profile pic if they were racist against them?? Your comment makes no common sense.
@@shawneeherendeen so if the profile picture was a pitbull can I conclude that a pitbull wrote it?
Needed this video
I needed to hear this today.
I’m here with you
😊