@@jimshoe402 I can relate, I bought a 2500 sq ft house (8000 sq ft property), have 4 bedrooms, use 1 bedroom as office and master bedroom. Other two I don’t even see lol 😂
If people bought homes they could afford instead of homes they qualify for 99% of these issues could be avoided. People just be giving money away for years cause they want to live above their means
I agree! I just bought a new house just 3 months ago that was $250,000 less than what I qualified for,and the house I bought is a 3 Bedroom 3 Bath and a big back yard, and I live alone. Why would I get anything bigger,unless I have money to blow. The extra money lets me help others in my community,as I buy alot of overstock,and give it away for free to help people in need. A 3 BD 3 Bath home gives me a lot of space,and I'm very grateful for that.
I own a house but for the same reasons I would prefer to rent. Every house I have owned had issues. It has been non-stop problems, everything from foundation to termites. It's not just the costs, it's the hassle of finding qualified people to make repairs. Add on to that all of the time and stress involved dealing with the issues. I hate dealing with all the problems more than I enjoy the benefits of a house.
Nothing? For one, you’ll never build real wealth as a perpetual renter. At least with apartments, you’ll always be putting up with the noise of neighbors. Foot noise is particularly infuriating. You have no say in all sorts of important situations, like when the owner decides to sell and suddenly you need to move. You have to follow somebody else’s rules. I could list a million others. You can choose to rent, but you damn sure can’t say there’s nothing wrong with it
"Starter houses" used to be a thing. We bought out first with a 15yr mortgage (20% down) & paid off in 7y, by our 3rd time, we paid cash for a sweet forever home at 45. We didn't miss out on life either.
@Censored Everyday Holy mackerel. I need to remodel a master bath, kitchen, 2 smaller baths, rip out carpet, paint the inside and outside and other things. I replaced the roof and put new glass on the windows so far. It's really a money pit to be honest.
@@Capodimonte99 Yeah I also put in a new furnace, A/C, carpet, paint, and I finished the basement as well. Still glad I unloaded my old house. The soil just moves too much and I think the house will have structural issues in the future.
I’ve owned twice. I bought a townhome in 1992, a decent buyer’s market, and sold it in 2003. Bought a condo in 2009, also a good time to buy, after the market came down from the 2008 financial crises. Sold that in 2016. The best way to be is homeowner agnostic; you buy only if the market hands you an opportunity, otherwise rent. I prefer owning because I feel the pride of ownership and can make the place exactly how I want it, but I’m not going to overpay for that advantage.
Agreed. I'm shocked at the prices people are paying for homes that need a TON of work done, or the neighborhoods are bad. The market here has tightened up again, due to homeowners not selling. I'm sharing rent, and saving $$ for when things dtop down to some sense of normal. But, I really miss being in my own house. I hate living in an apartment. It's claustrophobic. I need light and a big view.😊
Exactly. We bought and sold before the market crash then we bought after the crash. We want to upgrade in house now but the prices are just ridiculous, so we're holding off.
All I see is the rent going up by leaps and bounds all around me while my mortgage payment stays somewhat the same. The only big change for me over the years has been the cost of insurance. So anybody who sees buying as an expensive and risky route is not thinking clearly. To me, renting is the risky route because you are totally at the mercy of the market.
you must not live in Texas with its high proprty tax increases every year. I know, fight with the appraisal district EVERY year so they don't raise them THAT much, but they do go up.
Taxes and insurance doubled on the property I just sold last year. The cash from the sale invested conservatively pays the rent and other expenses. By renting, I can pick up and move as needed.
I noticed you didn’t see any older (65+) people saying they preferred not being a homeowner. Seems to me the enjoyment of not setting roots is fun in the short term, but perhaps not when you are facing the reality of being stuck in a retirement home.
Me (64) - I truly want to buy a home, BC I like to enjoy being settled and putting my things out to enjoy. However, I did the math on my potential life span of 20yrs w zero mortgage, added in property tax, maintenance, etc, and honestly it is cheaper for me to rent for the rest of my life. It's a mixed bag, and I have no heirs to worry about. As a renter, I would NEVER FEEL SETTLED, never truly unpack, never relax.
In a retirement home? No, not unless you suffer from some sort of dementia. Many folks at that age usually downsize to a small condo in a 55 and over community, where an HOA takes care of the maintenance.
During the property crash of 1987, a friend of mine rented office space in a very upmarket part of Westminster, London, UK and decided to live in it. The commercial rent was a fraction of the rates of the nearby residential properties as well as the business rates, phone and heating bills! He also took advantage of local government incentives which were designed to entice the hoards of office workers to stay in the area instead of commuting back to the home counties such as cheaper access to the local theatres, gym, museums and restaurants!
@Jonathan Kuhn Unbeknown to most people, central London is a privately owned collection of estates. Most of Westminster is part of the Grovesnor Estate. Its current heir is a 28 year old male of Irish Ancestry with a personal net worth of £14bn. North of Mayfair lies the Portman Estate. its current owner is a woman in her mid-thirties. Most of Chelsea and Kensington are part of the Cadogan Estate, and the list goes on and on. We must remember that the UK and countries such as the Emirates are not Republics!
I owned a duplex for around 34 years. If you don't want to work on the place or don't have the knowledge to do maintenance, definitely rent. The only thing that I hired over those years is a new roof, a new A/C, and two new furnaces. All plumbing, electrical, and laminate flooring I did. My son-in-law worked in heating and air-conditioning so he got the units wholesale and installed them.
@@AndyBriggsRE I worked in Hydraulics engineering and we had numerous electrical engineers in the company that taught me a lot. Also there are some fine books on the subject. The same goes for plumbing.
Renting is cool but the problem is, you’ll need to save about 50% more in your retirement accounts than a homeowner in order to retire comfortably. Having paid off a house by retirement age will result in less housing expenses that you have to deal with.
I work with a guy who bought his house about a year and a half ago. He was telling me he regrets buying his house and wishes he just stayed renting. He says the cost of homeownership is higher than the anticipated.
11:10 This is me at the moment. I make 140k a year working remotely and am splitting the costs of a $600 a month 1 bedroom with a family member. Plus I have no debt, so I’m saving and investing tons of money, but I’m doing it because I want a house. And a NICE one at that. I’m picky and freaking refuse to settle I’m either going to get the house I want or die trying, but it’s a miserable experience.
you are putting to much stress on your self. Why don't you invest in a rental property, I started that way. Choose carefully and make some money and get some capital gain. you can repeat and make more money or resale the properties and have a nice down payment. The problem is that many people add a lot of stress trying to buy a house, must be the right time, and right moment. You can also look at foreclosure homes I made a lot of money buying foreclosed properties.
@Just think I'm almost 36, make $100K+, and in the same boat. However, I'm not splitting a rental. I'm not settling for a so-called starter home, either. I've been saving for 16 years. It's the times we live in.
@Just think I appreciate the gesture. I already live in a "reasonably priced" area that's still too expensive for the common-person. Things just need to crash back to normalcy. It's really that simple.
Owning wasn't the best experience for me. Lots of repairs and the build quality of my previous house was very poor. It was even built on poor soil which required the drive way to be replaced every 5 years. I was able to sell it last year at the top of the market for a great price and got out. Now I'm renting and couldn't be happier. Interest from the sale of my home pays my rent every month. I have no worries and I can pick up and move to another area any time I want.
We were military for 30 years and bought and sold whenever transferred. Our last home cost over $20,000 in repairs in the three years of owning it and it was only 7 years old. Seriously considering renting for a while just to reap the rewards of a stress free life for a little while and maybe do some downsizing and traveling. Plan to own again if we find the right home and location for a fair price.
It is a good thing to stay a renter in Florida, some of the reasons are Tornadoes, Hurricanes, Insurance companies going out of business, Crazy state and local politics, a declining school system, high property values, etc.
@@xfhnhhgjbvcfg I ve seen homeowners in Florida go homeless after a hurricane waiting for insurance checks. As a former 20-year-plus attorney that has had to sue insurance companies in FL I can tell you that you need a plan B in the sunshine state because it is uninhabitable. Also, what do you think about those new HOA rates in FL ?
@@waynecmontgomery I would never own a house without having 20 or $30,000 emergency fund. Insurance is a scam, not a investment. I personally don't like paying a HOA but it's not so bad on my condo. My condo costs me about $700 a month. That includes everything, insurance, property tax electric water ect. So it's pretty cheap living compared to paying rent. Plus when I am ready to sell many years down the road it should hold value at the very minimum. ( Will go up in value more than likely). It's really nice making $6,500 per month and only spending $700... Makes putting money towards retirement easy
@@xfhnhhgjbvcfg I can guarantee you will NOT be paying a $700.00 HOA by next year. My nonprofit owns 2 condos in the Miami and Jacksonville area. We keep the condos for operational reasons and they are RE tax-free however the HOA is set to skyrocket on special assessments.
@@waynecmontgomeryso what? I could pay $1800 a month and it would be a 100000x better use of money then renting lmao Lmao trowing $2000 a month in the trash renting is a fools play. Renting is for broke people
for sure, if you're young, renting is great. in my 20's i moved to a different apartment every year just for the change of scenery. however, what you want in your 20's is wildly different from what you want in your 30's, 40's, 50's, etc... people who think they will want the same thing forever are immature and are in for a major wake up call later in life.
A $400,000 home would cost $1,000,000 after 30 year mortgage and 20% down. Even if your property increase in value 3x, your equity would be about $200,000 baring absolutely no repairs. Renting allows you to put the down payment along with the cheaper monthly payment into investments. Even at only 3% annually, you would have $364,000 in the bank. No risk of repairs, down value because natural disaster or cancer clusters. I’ve done it both ways and I have more money in the bank renting.
I've been a landlord for many years and it still surprises me the look I get when I inform tenants that "they" are actually paying the property taxes through their monthly rent payments. I get the benefit of writing off the taxes paid and they get to pay the taxes and get no benefit. The lack of economics intelligence never ceases to amaze me.
Home ownership is not for a lazy person. A lot of the new generation didn't grow up in traditional homes like myself and didn't have an example of how to maintain a home. I have never lived in an apartment. I bought a nice starter home when I finished college. It was a good move.
Having lived in a house and a condo. It's definitely a lot more work to maintain a house. My parents were similar to the story in this video always doing things around the house in the way of chores maintenance repairs in their free time. I helped with a lot of it and learned a lot along the way.
So, you want to be a bit of a nomad. It seems like they way to go if you're planning to move around and also want to see the country via road trips. Sounds adventurous, too!
The rent for the house I'm living in is $1750. Similar homes sell for 350K today. My total monthly costs would be at least 50% higher if I purchased. Why buy??
Thanks for addressing the never-own-a-home scenario as valid for some people! Although the preference for being able to move every few years is something I enjoy, there's another perhaps more important economical benefit for me to continue renting: I love design and nice things, and love getting into perfection mode with anything designed. For a home, this means I would want to have a custom home, designed by an architect (which isn't the problem since architect fees are generally affordable in the scheme of things...and with a good architect, you have an ally to ensure a good build with things done correctly). Where the big expense would hit the fan -for me- is in the finishing and furnishing of the home. I'm confident that I would spend an insane amount of money on finishing materials, furniture, decor and appliances. It would be my dream home, after all, so only the best (or at least very, very nice). In an apartment that is just one of many apartments, I'm happy just having basic stuff -even cheap stuff because it's just a temporary landing pad. The common areas and landscaping in new, modern apartment buildings has all bee spec'd by architects and designers, so it flips my toggles to happy mode.
Michael, You always give great advice and you explain everything so clearly. I've been a homeowner for 50 years - prior to that I rented small apartments/studios - in southern California - when rents were very low and buying a townhome/house was inexpensive. The house I'm in now - I purchased brand new 22 years ago. There were very few things that I had to repair or replace. My gardener comes here once a week - and if I need something fixed or replaced, I post on nextdoor and one of my neighbors will help me out - for low cost. I love having a 2-car garage and having lots of living space to move around. When you rent, people need to realize that landlords usually raise the rent yearly - and now, rents are increasing so much, it's hard for people to afford. Everyone is in a different situation so they need to do what works for them. So glad I don't ever have to look for an apartment - in my area - they're unaffordable. When I was a realtor decades ago - my broker told me, "when you talk to a renter," ask: Do you like paying your landlord's mortgage?" It never occurred to them. Times are very tough these days - wish life went back to the way it used to be.
I'm was a first time home buyer at the age of 48. Fast forward 12 years and I'm ready to rent now. The upkeep is never ending with a home and I'm getting too old to put on my toolbelt (yes, I have one LOL). Have tons of equity from my fixer upper, so I should take advantage of the buyers market now. Renting in my area would be about $400 less each month than my current mortgage, so I will bank the extra $$ for my golden years.
You can do both, I'm a landlord that has been renting in a much more expensive market than where my homes are, building equity without being locked into a living situation, never buy a home you can't easily rent out for the mortgage
You can hire someone to repair your house but it is very expensive and good luck finding good honest repair companies also dealing with insurance if need be. Home ownership is for people who are well off financially or are handy. I've seen many homeowners who let their houses go to the point of not knowing where to begin to repair let alone maintain.
I finished building my own home in 1990 and have never moved. The next place I move to will be rural and the last time I move. It must be horrible to live in a rental where you have no control of what your home is like. My parent's old home I have maintained for decades as well, something broke every month but since I can fix anything, living there was far cheaper than renting. I like having my home somewhat run down because it lowers the property value and thus the taxes.
Sir I was a property renter and in renting my properties I folded , taxes , percentage for repairs over and above what my commitment for the property I was responsible for and towards the end I incorporated a deductible for certain problems etc . Example if their child flushed a toy down the throne then call me after hours expecting me to call a plumber in on overtime , that didn't happen . I ended up becoming the banker and sold everyone of my houses to tenants that had been renting for an average of 4 - 6 years . Ps I was so glad to have gotten out of the Land Lord thing , specially in this day and age .
Owning a home or not, there is no true freedom until you have a paid off home of your own; renting is temporarily fine, but long term as you get older, it will be harder to rent as your earning power goes down😢
I'm 27, finished college, have a good job, bought a nice house. I heard about a church member was selling, I got the house before it was listed. Look for a house in places other than MLM listings.
Home owning in the US is overrated. I own many properties overseas that I rent out with less hassle than in the US. Im a bachelor so I tend to move every few years and enjoy it that way. I spend a lot of time overseas and in the Caribbean. I live the Nomadic lifestyle
I’m grateful for people who like to rent, especially when they rent from our personal property. Also great property management company is crucial, don’t want the headache. I really love the stability of being a home owner. It comes down to peoples priorities, To each their own…
Owning a home will become 1% more expensive in October when it comes to home insurance as projected by the Florida Legislature. All these increases will be passed on to the renter as we know it.
Hi Michael, I think you are right. Many are afraid of the unknown. What happens if I own a home? They think they can only own one and never move. Maybe you can make a video of the options and how-to's of selling, moving, and buying another home.
We rent, I could buy the place I'm renting cash if we wanted too. The reason we don't? Bc I don't want a cookie cutter split level. The next level up is 7-800k right now (the taxes alone would be what my rent is now) so I would rather rent a $300k house until prices come down then buy a medium home and then be tempted to dump money into projects like a deck/pool/kitchen. Currently bc we don't do projects on a rental property I'm banking a lot of savings away. If I'm going to live in something long term and own it, I want to love it. Also a future 20% drop in prices is significantly more savings on a high end property then a starter home. I am not going to put 300k into a fancy mortgage just to watch years of savings blow up in a crash. Your starting point matters when owning!
I think buying a smaller, less expensive house, in a reasonably nice area that offers you employment/income and resources fairly close by is best. In other words "less is more". Waterfront homes are subject to storm damage and higher insurance rates. Expensive homes that are built very close to each other in fancy neighborhoods are overrated IMHO. At the end of the day things that were once obtainable with ease by the Middle Class are now becoming a ball and chain. They are too much like work . . ... No wonder people are choosing to rent rather than buy.
I lived in a house my whole life. Now, I am in a condo and I absolutely love it. It is so much easier to keep clean and less costly to maintain. Plus, my taxes, HOA, and utilities are much more reasonable. House is my much more expensive to maintain.
Owning a home is priceless. Period. You have your privacy, you decide how you want to live, not by someone else's rules. One older person here wrote that no one talked about older folks and he/she now lives in a retirement home and obviously does not own their own home. If you keep you home up, you do not face in most cases extraordinary costs, because you address them as they occur. I have owned my home for over 20+years and would NEVER want to give up my house and subject myself to someone else's rules, rent increases and other issues. There is NO substitute to owning your own home.
I buy a homeowners maintenance policy every year, and it is worth the peace of mind. I used it last year for a new AC condensing unit. Three years ago used it on a new built-in oven and new garage door opener. Some years I don't use it but the times I have have saved me big bucks. It balances out over time and I don't have to deal with finding a contractor. The insurance company is responsible for that.
Michael, you videos just keep getting better. This one should go in the best of file. Very interesting hearing peoples perspectives. I've done both, and prefer renting (from a mature landlord).
Even when you own a home or land or a car, you are renting it. The rent just has different names: Property Tax, Ad Valorum Tax, Value Added Tax, Sales Tax, and Purposely over inflated sewer and water bills. The list goes on and on.
It cracks me up when tenants don't want to pay for taxed and repairs on a property. My tenants are paying for those very items although it's not broken down how but a lump sum every month seems to make it more palatable and on top of that I am still clearing over a grand on each unit. I love tenants.
@@dalesmith4019 Well I owned a successful electrical contracting company for 20 years and retired a multimillionaire at 51 so I do know hard work and smart investing.
Renters are usually poor and lower on the economic totem pole. The only way out of poverty is hard work and determination. I purchased my first home at 23 and now own several rental properties and vacation homes. I'm all for life long renters. They've contributed to my wealth immensely!
2:40 Appliances are not what being rented when renting an apartment you are renting the Walls and doors and roof and windows with what ever is inside " as is " unless it says appliances are covered in your contract then dont expect appliances to be repaired , maybe replaced with a fee . Only the faucets and water devices will be repaired free as long as the damage is from general wear and tear . I been renting apartments 40 years
Owning a home is not such a great investment if you have a mortgage. Just comparing what you paid and what you eventually sell it for is simplistic or downright stupid. When you total up the mortgage payments and the mountain of bills over the course of years you really don't come out of it that great if you do sell. If you're lucky you get back what you put in over the years. As far as renting you may not accumulate any equity but instead of plowing additional thousands of dollars into every conceivable home expense you can put it that money in the bank. Mortgages are the biggest scam ever perpetrated on the working class.
I felt that way since i was 16 y.o. and never bought, but if i did i would have made a lot of money just because houses is where the FeD offloads inflation created by crazy money printer
I bought my first townhouse (The Netherlands) in 1990 for 65.000 dollars (converted from Gulden). At that time a college of mine always sold the argument that as a renter he was free from maintenance cost and all the other burdens owning a house. I lived in that house for 20 years and my only cost where painting the windows frames, 100 bucks every 4 years. While I was paying 600 in mortgage a month, he was paying the same amount in rent. in 2010 I sold my house for 200.000 dollars. From the profit I bought a fixer upper cash and spend my previous 600 a month on mortgage fixing up the house. 12 years later my house is finished and I have no monthly payments. My friend still rents and he now pays after 32 years of steady raises 1.500 a month.
I was a homeowner and hated it because I was a victim of school digger!! Never ending school tax increases!! I’m a renter now and hate it. That damn school digger!! Ever increasing rent!!! My last move will be a small home in the middle of nowhere, where no one wants to be, with my dog.
I bought my house in February 2021. I'm in Central FL and my interest rate is 2.75%. I bought what I could afford... not what I qualified for. My mortgage is $1000. I budget for my taxes and homeowners insurance. I plan on having a paid off home in 15 years. Home ownership is not for everyone, but for me... It was a fantastic decision and I'm glad that I did.
Regarding the time saving aspect; I wonder how many of those people who say they don't want to spend the time maintaining their home instead waste their time playing computer games or watching sports on TV ... The fact of the matter is that it's all about attitude. Swap the word "maintenance" for "care" and all of a sudden you are "taking care" of a place and a space that you have created for you and your dear ones. Do not underestimate the value of creating and having your own, private space to feel good in. It's not all value that can be measured in $$$
Owning a home is a security thing. Of course the reality is that in Florida you are looking at 2% a year in taxes. So in 50 years you paid twice for your house. So basically, you are relying upon “appreciation” to balance out your expenses. Appreciation isn’t a given, but it’s likely. The point is, by the time you pay taxes and repairs not to mention insurance, houses are not the great asset we have become convinced to believe.
Different stroke for different Folk For me owning home is a must in order to stop rent from going up after you done paying off you only pay property taxes and up keep Learn to fix things yourself
No condo and definitely no co op for me can’t stand people telling me what I can and can’t do to my own property I start my bike and let it warm up on Sunday mornings I work on my car to midnight if I want my house my rules
Just sold to rent! Will buy a condo if mkt eases. As a single person I was Sick of dealing w picking up yard, to dealing w repairs and finding reliable affordable people. Just constant hassle and bullshit!!
I’d be more stressed about potentially not being able to renew the lease every year than repairs on a house I own. Personally can only make sense of renting by choice if due to moving around a lot
My landlords wouldn’t let me renew after two years and after I left they raised the rent $500. They were terrible and would just show up at my door whenever. I always felt uncomfortable. I rather have my own home and land than feel insecure about whose investment I’m living in.
we recently bought our new house Dec 2021 with 2.99% had to pay 35 k over asking price to get it. MY wife and I are in early 40s and have worked from home last 5 years and have saved a nice amount of $ to afford the home we wanted. We have a 4 year old and wanted to put her in a better school district and neighborhood. we did not buy to big of a house 1908 sqaure feet which was only 200 more than previous house but this one has finished gameroom and more bathrooms so it worked out. Would like to pay off in 10 years or less and be debt free. home owning is not for everyone esp in todays market. renting may be better option. Do whats best f or you and live life
If you didn’t buy before the Cov$&, you’re pretty much screwed. Insurance and the roof boondoggle has really made it all in appealing. So, I’m renting in a neighborhood I really want to live in for half or more than the cost to own. It’s sickening to think that with a well above average income, no debt, great credit that I could be a renter for life myself. I don’t see where it gets better anytime soon in South Florida especially in desirable neighborhoods.
"if anything breaks someone else is responsible" - to take action on the repair, sure. To finance it, no. You are still in most cases paying a premium (rent) to have this sort of management. The costs of said repairs and maintenance are already figured into the bill, so you aren't really getting ahead by renting.
Thanks for the tip on the park! It's really nice. I live in North Broward and the buyers here are from NY. We haven't been able to upgrade in house because even though we have a nice income the prices are just ridiculous. My husband and I have been homeowners for decades, we've had different properties. We made money every time we sold. We sold high and bought low. We have no regrets. I believe it's the fastest way to build wealth. We just have to know when to do it.
I always wanted to live on a boat ( since Miami vice) renting just doesn't make sense to me because your landlord is making a profit on you. .... so what ever it would cost you to own it must be less. There are some really spacious camper out there. ( I'm about ready for a change. Just don't know if it's a different country or ??? )
Renters are too funny! Don't they realize they are paying the taxes, insurance, and upkeep on rental property??? Do they think landlords just eat those costs out of pocket??? No one is in business to lose money! 😂
Before WWII most of us were renters and we got along fine. I live in L.A. Bought many years ago. At this point it’s wise and smart to stay a renter during this inflated mess we’re in. High mortgage, changing property taxes, insane homeowners insurance, monthly gardening, household maintenance, upgrades all cost through the roof now. The trades are charging insane prices to fix plumbing, electrical, roofing. I just got an estimate to put in a wrought iron gate 6’ wide with an entry gate. $6200!!! Basically $1000 a foot! If I were in my 20s 30s I wouldn’t think of wasting my money on a house. Owning rather paying the bank for 30 years with interest in order to own it is overrated and a waste of money. You basically pay double what you initially bought it for. Id rent and with the savings invest and in 20 25 years retire well and travel instead of retiring in house you own, but are stuck still paying out those costs to keep it., not to mention you can’t get up and leave.
Well said!! It’s makes sense to rent in this current economy. Another thing, home ownership will wear down your health. I’ve seen many people suffering from heart attacks and strokes coming into the ER after their homes were damaged by a hurricane or flood. Too much stress!!
My family was poor and we owned homes before ww2. It was small houses or attached homes like row houses. What we didn't own was cars. That changed when they tore out street cars and tracks
Even if you pay double what you bought it for, you are still stuck with inflation where your current value dollar's today is going to be roughly 1/10 of what it is in 60 years. =/. I was reading a news paper about how new homes in Santa Barbara, CA in 1969 were $25,000 - $35,000.... A new home today here would probably cost around 2.5-3 million. I think after the crash you can probably buy a 1960's-1980's house in 2026 for like 850-1.3 million but even at 850k thats a big jump from 25-35k. Now if you repeal prop 13, which we should...... Property prices in California would probably be 35-85% cheaper within 2-3 years regardless of a crash.
Take your down payment ( not price) and check how much your house is worth now (- mortgage) .... and then let us know your rate of return. ( you would have paid intrest and upkeep in rent)
@@LunaMirage my parents built really nice houses in Michigan in the 60s and 70s. Normal middle class families could afford a house with 3 fireplaces. Today's house are structural more expensive. We have moved towards European standards.... and hardly anyone can afford a new house in Europe.
Choosing to rent or buy usually depends on what stage of life you're in. Young free and single and want to progress your career usually requires moving every few years making rental a better option. As you get older and/or want to settle down buying is likely to be a better option. Either way put money aside for opportunities or the bad times.
You can save a lot of money by going on TH-cam figuring out how to repair things yourself. And then when you do have to hire someone.. do what my dad did. Be there when the repair person is working and learn from them. Ask questions and observe. You'll soon find out.. you can do a lot on your own in your own time.
My current rent is basically the same as what my new mortgage will be. It just made sense for me to purchase a home. I also have kids and I enjoy living in a suburb and being able to do what I want with my home. I’m also a huge DIYer. I love learning how to fix things and figure out how things work. But that’s just me. But for renters, when a home keeps needing repairs, the rent will more than likely go up at renewal to recoup those costs. The owners/landlords, just pass those costs onto renters anyway.
As long as house prices go up, it's better to own. The longer you plan to stay in the house increases your odds . Based on history, likely better to own to build wealth imo
Maybe this is better for Florida resident , but for California it’s better to own your home/condo and have 30 year fixes payments , rent increases over the years are not better , and rent will keep increasing it always has why would it stop now .
Rent increases everywhere not just in California but that's not really the point. There's plenty of places in California LA being one of them where you can easily rent something for less than it would cost to own the same thing. Sometimes it does make sense to rent even in California
I have a renter like the guy you are referring to in your video Tenant sold a sprawling farmhouse in 2018 and the couple came here.. In his case he has alot of adult children who prefer to live with mum and dad rather than work for a living Had to speak to them a couple of times that I rented to 2people and not a family of 12 In any case his 2018 sale was for quick cash ...apparently those adult children need to be subsidised by mum and dad so now his ability to buy in 2023 when prices are 50% more have put home ownership increasingly out of reach for this renter
@@jimshoe402 ..they will be coming up to year 5 next month for renting from me..thats alot of BS to deal with...Thinking about calling the lawyer for a scoot-out for a while
Great video Michael :)- I just turned 50 years old this Feburary. I have never owned a piece of property to this point with the economy in the state that it is. I hear nightmare stories about people who have recently bought and now regret their decision now they are are pretty much stuck. Very valuable information in your video(s)!!! Kudos to you for your efforts!!! :)-
Some people just like having a mobile lifestyle. They don't want to be tied to a piece of property. They like the feeling they could pull up stakes and move to the other side of the country (or world) within a few weeks time. And they would rather spend their spare time doing activities other than mowing grass, cleaning gutters, and trying to fix leaky toilets. Whether it's advantageous to buy over renting is irrelevant to them. It's the lifestyle they've chosen, and like other lifestyle choices, there are things in life you simply cannot (should not!) put a dollar amount on. It's not guaranteed any of us will be here (in this world) five years from now! (And the so called "cynical" guy is SPOT ON!!)
Decision in long term renting vs buying is simple if monthly rent cost less than mortgage+insurance+maintenance+tax then rent. In Miami it’s not a case. In NYC there is rent stabilize program if you rent for 20 years rent is really cheap but this program only exists in NYC
What's The WAY OUT Of All This? th-cam.com/video/zHvaWfVNO5g/w-d-xo.html
@@Kenya1984 That's awesome!!!!
''Nobody should be told where to live or how to live''. A message to WEF.
Bought home 30 years ago here in los angeles, paid it off in 10 years and retired early from a county job. No regrets.
No one owns their home. Stop paying property taxes and find out why. We’re all renters
Lol thank you
Yea ok, and so you need to move to some place in the world where no civilization entered and be happy
People are buying a lot of RV’s and living in them. RV sales are way up. Very sad situation
Good point 😢
Exactly
I bought a small studio apartment
460 square feet . And I don’t regret. Is already pay off and extremely cheap to maintain
I live in my Master bedroom the rest is a waste..Take Care😁😁😁😁
@@jimshoe402 😂😂😂
@@jimshoe402 I can relate, I bought a 2500 sq ft house (8000 sq ft property), have 4 bedrooms, use 1 bedroom as office and master bedroom. Other two I don’t even see lol 😂
If people bought homes they could afford instead of homes they qualify for 99% of these issues could be avoided. People just be giving money away for years cause they want to live above their means
preach. people view what they qualify for as their budget. terrible way to look at it.
Bingo!
I agree! I just bought a new house just 3 months ago that was $250,000 less than what I qualified for,and the house I bought is a 3 Bedroom 3 Bath and a big back yard, and I live alone. Why would I get anything bigger,unless I have money to blow. The extra money lets me help others in my community,as I buy alot of overstock,and give it away for free to help people in need. A 3 BD 3 Bath home gives me a lot of space,and I'm very grateful for that.
You live in a fantasy world.
@@mjulianlee long as it’s not my parents house 🤷🏽♂️
I own a house but for the same reasons I would prefer to rent. Every house I have owned had issues. It has been non-stop problems, everything from foundation to termites. It's not just the costs, it's the hassle of finding qualified people to make repairs. Add on to that all of the time and stress involved dealing with the issues. I hate dealing with all the problems more than I enjoy the benefits of a house.
Nothing wrong with renting. Owning a house is definitely not for everyone. There is freedom in renting and no hidden costs like owning has.
The problem is when you rent you pay anyway, the only benefit is you can leave after a year but also you can be put out.
Ehhhh!
Nothing? For one, you’ll never build real wealth as a perpetual renter. At least with apartments, you’ll always be putting up with the noise of neighbors. Foot noise is particularly infuriating. You have no say in all sorts of important situations, like when the owner decides to sell and suddenly you need to move. You have to follow somebody else’s rules.
I could list a million others. You can choose to rent, but you damn sure can’t say there’s nothing wrong with it
@@hlf_coder6272 took the words out of my mouth. Not to mention the stability of owning.
Agreed. I wonder why people are always in renters businesses
"Starter houses" used to be a thing. We bought out first with a 15yr mortgage (20% down) & paid off in 7y, by our 3rd time, we paid cash for a sweet forever home at 45. We didn't miss out on life either.
There is an old comedy with Tom Hanks called 'The Money Pit'. Every prospective home buyer should have a look at it. It is a great comedy as well.
😂 I saw that film it was hilarious. But it's so true on many levels
@Just think thank you for the recommendation I'll have to watch!
The house I just sold needed a new driveway installed every 5 years due to poor soil. So glad I unloaded it.
@Censored Everyday Holy mackerel. I need to remodel a master bath, kitchen, 2 smaller baths, rip out carpet, paint the inside and outside and other things. I replaced the roof and put new glass on the windows so far. It's really a money pit to be honest.
@@Capodimonte99 Yeah I also put in a new furnace, A/C, carpet, paint, and I finished the basement as well. Still glad I unloaded my old house. The soil just moves too much and I think the house will have structural issues in the future.
I’ve been a homeowner for 25 years. It has it’s pros and cons. I don’t blame renters either. Both situations have good and bad.
Agreed
I’ve owned twice. I bought a townhome in 1992, a decent buyer’s market, and sold it in 2003. Bought a condo in 2009, also a good time to buy, after the market came down from the 2008 financial crises. Sold that in 2016.
The best way to be is homeowner agnostic; you buy only if the market hands you an opportunity, otherwise rent. I prefer owning because I feel the pride of ownership and can make the place exactly how I want it, but I’m not going to overpay for that advantage.
Agreed. I'm shocked at the prices people are paying for homes that need a TON of work done, or the neighborhoods are bad. The market here has tightened up again, due to homeowners not selling. I'm sharing rent, and saving $$ for when things dtop down to some sense of normal. But, I really miss being in my own house. I hate living in an apartment. It's claustrophobic. I need light and a big view.😊
I like this
Exactly. We bought and sold before the market crash then we bought after the crash. We want to upgrade in house now but the prices are just ridiculous, so we're holding off.
Very good advice!
@@funguy4utube thanks.
All I see is the rent going up by leaps and bounds all around me while my mortgage payment stays somewhat the same. The only big change for me over the years has been the cost of insurance. So anybody who sees buying as an expensive and risky route is not thinking clearly. To me, renting is the risky route because you are totally at the mercy of the market.
you must not live in Texas with its high proprty tax increases every year. I know, fight with the appraisal district EVERY year so they don't raise them THAT much, but they do go up.
Nor do you live in Florida. Insurance is up 60% not to mention taxes.
Taxes and insurance doubled on the property I just sold last year. The cash from the sale invested conservatively pays the rent and other expenses. By renting, I can pick up and move as needed.
I noticed you didn’t see any older (65+) people saying they preferred not being a homeowner. Seems to me the enjoyment of not setting roots is fun in the short term, but perhaps not when you are facing the reality of being stuck in a retirement home.
Me (64) - I truly want to buy a home, BC I like to enjoy being settled and putting my things out to enjoy. However, I did the math on my potential life span of 20yrs w zero mortgage, added in property tax, maintenance, etc, and honestly it is cheaper for me to rent for the rest of my life. It's a mixed bag, and I have no heirs to worry about. As a renter, I would NEVER FEEL SETTLED, never truly unpack, never relax.
In a retirement home? No, not unless you suffer from some sort of dementia. Many folks at that age usually downsize to a small condo in a 55 and over community, where an HOA takes care of the maintenance.
During the property crash of 1987, a friend of mine rented office space in a very upmarket part of Westminster, London, UK and decided to live in it. The commercial rent was a fraction of the rates of the nearby residential properties as well as the business rates, phone and heating bills! He also took advantage of local government incentives which were designed to entice the hoards of office workers to stay in the area instead of commuting back to the home counties such as cheaper access to the local theatres, gym, museums and restaurants!
Brilliant !!!!
Where I live, it is a criminal charge, and you will lose your lease, lose your deposit, and owe fines...
@Jonathan Kuhn Unbeknown to most people, central London is a privately owned collection of estates.
Most of Westminster is part of the Grovesnor Estate. Its current heir is a 28 year old male of Irish Ancestry with a personal net worth of £14bn. North of Mayfair lies the Portman Estate. its current owner is a woman in her mid-thirties.
Most of Chelsea and Kensington are part of the Cadogan Estate, and the list goes on and on. We must remember that the UK and countries such as the Emirates are not Republics!
@@glenfordburrell1076 I am all for it. Some people have to do, what they gotta do... No harm no foul
I owned a duplex for around 34 years. If you don't want to work on the place or don't have the knowledge to do maintenance, definitely rent. The only thing that I hired over those years is a new roof, a new A/C, and two new furnaces. All plumbing, electrical, and laminate flooring I did. My son-in-law worked in heating and air-conditioning so he got the units wholesale and installed them.
Were you trained in electrical or learned as you go? That's a big one that is a little sketchy for me
@@AndyBriggsRE
I worked in Hydraulics engineering and we had numerous electrical engineers in the company that taught me a lot. Also there are some fine books on the subject. The same goes for plumbing.
@@AndyBriggsRE You can teach yourself basic A/C installation from YT videos. It's not hard at all
Renting is cool but the problem is, you’ll need to save about 50% more in your retirement accounts than a homeowner in order to retire comfortably. Having paid off a house by retirement age will result in less housing expenses that you have to deal with.
This guy is hando,e do future videos shirt6
if property tax is let's say $12k a year....you are basically paying rent forever
@@DGimpeccablejaguar not sure of other states but I live in Texas where after the age of 65 you no longer have to pay property taxes.
@@dmavs4131 wow I did not know that existed. Very interesting
I work with a guy who bought his house about a year and a half ago. He was telling me he regrets buying his house and wishes he just stayed renting. He says the cost of homeownership is higher than the anticipated.
11:10 This is me at the moment. I make 140k a year working remotely and am splitting the costs of a $600 a month 1 bedroom with a family member. Plus I have no debt, so I’m saving and investing tons of money, but I’m doing it because I want a house. And a NICE one at that. I’m picky and freaking refuse to settle
I’m either going to get the house I want or die trying, but it’s a miserable experience.
you are putting to much stress on your self. Why don't you invest in a rental property, I started that way. Choose carefully and make some money and get some capital gain. you can repeat and make more money or resale the properties and have a nice down payment. The problem is that many people add a lot of stress trying to buy a house, must be the right time, and right moment. You can also look at foreclosure homes I made a lot of money buying foreclosed properties.
@@oneemotiva4975 Because they want a house.
Pivoting their desire into what you think they should do shouldn't be the answer.
@Just think I'm almost 36, make $100K+, and in the same boat. However, I'm not splitting a rental. I'm not settling for a so-called starter home, either. I've been saving for 16 years. It's the times we live in.
@Just think I appreciate the gesture. I already live in a "reasonably priced" area that's still too expensive for the common-person.
Things just need to crash back to normalcy. It's really that simple.
Owning wasn't the best experience for me. Lots of repairs and the build quality of my previous house was very poor. It was even built on poor soil which required the drive way to be replaced every 5 years. I was able to sell it last year at the top of the market for a great price and got out. Now I'm renting and couldn't be happier. Interest from the sale of my home pays my rent every month. I have no worries and I can pick up and move to another area any time I want.
We were military for 30 years and bought and sold whenever transferred. Our last home cost over $20,000 in repairs in the three years of owning it and it was only 7 years old. Seriously considering renting for a while just to reap the rewards of a stress free life for a little while and maybe do some downsizing and traveling. Plan to own again if we find the right home and location for a fair price.
It is a good thing to stay a renter in Florida, some of the reasons are Tornadoes, Hurricanes, Insurance companies going out of business, Crazy state and local politics, a declining school system, high property values, etc.
Renting is the biggest waste of money ever . Terrible
@@xfhnhhgjbvcfg I ve seen homeowners in Florida go homeless after a hurricane waiting for insurance checks. As a former 20-year-plus attorney that has had to sue insurance companies in FL I can tell you that you need a plan B in the sunshine state because it is uninhabitable. Also, what do you think about those new HOA rates in FL ?
@@waynecmontgomery I would never own a house without having 20 or $30,000 emergency fund.
Insurance is a scam, not a investment.
I personally don't like paying a HOA but it's not so bad on my condo.
My condo costs me about $700 a month.
That includes everything, insurance, property tax electric water ect.
So it's pretty cheap living compared to paying rent. Plus when I am ready to sell many years down the road it should hold value at the very minimum. ( Will go up in value more than likely).
It's really nice making $6,500 per month and only spending $700...
Makes putting money towards retirement easy
@@xfhnhhgjbvcfg I can guarantee you will NOT be paying a $700.00 HOA by next year. My nonprofit owns 2 condos in the Miami and Jacksonville area. We keep the condos for operational reasons and they are RE tax-free however the HOA is set to skyrocket on special assessments.
@@waynecmontgomeryso what?
I could pay $1800 a month and it would be a 100000x better use of money then renting lmao
Lmao trowing $2000 a month in the trash renting is a fools play.
Renting is for broke people
for sure, if you're young, renting is great. in my 20's i moved to a different apartment every year just for the change of scenery. however, what you want in your 20's is wildly different from what you want in your 30's, 40's, 50's, etc... people who think they will want the same thing forever are immature and are in for a major wake up call later in life.
There is a certain degree of uncertainty with renting, you could be forced out or have rents raised quite a bit.
A $400,000 home would cost $1,000,000 after 30 year mortgage and 20% down. Even if your property increase in value 3x, your equity would be about $200,000 baring absolutely no repairs. Renting allows you to put the down payment along with the cheaper monthly payment into investments. Even at only 3% annually, you would have $364,000 in the bank. No risk of repairs, down value because natural disaster or cancer clusters. I’ve done it both ways and I have more money in the bank renting.
I've been a landlord for many years and it still surprises me the look I get when I inform tenants that "they" are actually paying the property taxes through their monthly rent payments. I get the benefit of writing off the taxes paid and they get to pay the taxes and get no benefit. The lack of economics intelligence never ceases to amaze me.
taxes and interest rates are out of control.
happening everywhere
Because the economics f***d up
@@pedros1 Who owns the fed?
@@Monroemanordogs the deep state guys
Home ownership is not for a lazy person. A lot of the new generation didn't grow up in traditional homes like myself and didn't have an example of how to maintain a home. I have never lived in an apartment. I bought a nice starter home when I finished college. It was a good move.
Having lived in a house and a condo. It's definitely a lot more work to maintain a house. My parents were similar to the story in this video always doing things around the house in the way of chores maintenance repairs in their free time. I helped with a lot of it and learned a lot along the way.
I want to own a mobile home so that I can keep my living quarters consistent while changing my location.
So, you want to be a bit of a nomad. It seems like they way to go if you're planning to move around and also want to see the country via road trips. Sounds adventurous, too!
The rent for the house I'm living in is $1750. Similar homes sell for 350K today. My total monthly costs would be at least 50% higher if I purchased. Why buy??
Thanks for addressing the never-own-a-home scenario as valid for some people! Although the preference for being able to move every few years is something I enjoy, there's another perhaps more important economical benefit for me to continue renting: I love design and nice things, and love getting into perfection mode with anything designed. For a home, this means I would want to have a custom home, designed by an architect (which isn't the problem since architect fees are generally affordable in the scheme of things...and with a good architect, you have an ally to ensure a good build with things done correctly).
Where the big expense would hit the fan -for me- is in the finishing and furnishing of the home. I'm confident that I would spend an insane amount of money on finishing materials, furniture, decor and appliances. It would be my dream home, after all, so only the best (or at least very, very nice).
In an apartment that is just one of many apartments, I'm happy just having basic stuff -even cheap stuff because it's just a temporary landing pad. The common areas and landscaping in new, modern apartment buildings has all bee spec'd by architects and designers, so it flips my toggles to happy mode.
I don't like having people around me in an apartment style building so I have to be a homeowner. Plus, I am settled and pretty stable.
Michael, You always give great advice and you explain everything so clearly. I've been a homeowner for 50 years - prior to that I rented small apartments/studios - in southern California - when rents were very low and buying a townhome/house was inexpensive. The house I'm in now - I purchased brand new 22 years ago. There were very few things that I had to repair or replace. My gardener comes here once a week - and if I need something fixed or replaced, I post on nextdoor and one of my neighbors will help me out - for low cost. I love having a 2-car garage and having lots of living space to move around. When you rent, people need to realize that landlords usually raise the rent yearly - and now, rents are increasing so much, it's hard for people to afford. Everyone is in a different situation so they need to do what works for them. So glad I don't ever have to look for an apartment - in my area - they're unaffordable. When I was a realtor decades ago - my broker told me, "when you talk to a renter," ask: Do you like paying your landlord's mortgage?" It never occurred to them. Times are very tough these days - wish life went back to the way it used to be.
I'm was a first time home buyer at the age of 48. Fast forward 12 years and I'm ready to rent now. The upkeep is never ending with a home and I'm getting too old to put on my toolbelt (yes, I have one LOL). Have tons of equity from my fixer upper, so I should take advantage of the buyers market now. Renting in my area would be about $400 less each month than my current mortgage, so I will bank the extra $$ for my golden years.
"Golden years" Good luck with those! Is that "extra $$" for the nursing home? LOL
I'll be 48 next year so this is timely
@Jenna You probably get that $400 back at tax time. There are tax benefits to owning, especially for those w-2 employees
@@honestinspiration Unlikely that Jenna, at approx.60 yoa, has enough deductions to itemize! Maybe, but not likely.
@@kagnewcobra5228 Trying to console yourself about a FOMO purchase perhaps? Good luck with foreclosure. LOL
Beautiful View, the calmness makes one think. Time alone exposes all truth. Thank you.
You can do both, I'm a landlord that has been renting in a much more expensive market than where my homes are, building equity without being locked into a living situation, never buy a home you can't easily rent out for the mortgage
Live well within your means, as much as possible, is my motto, which is similar to your comment.
If you have a family you kind of have to buy, but I'm a multi millionaire and I rent a modest apartment. I owned a house once and hated it.
You can hire someone to repair your house but it is very expensive and good luck finding good honest repair companies also dealing with insurance if need be. Home ownership is for people who are well off financially or are handy. I've seen many homeowners who let their houses go to the point of not knowing where to begin to repair let alone maintain.
I finished building my own home in 1990 and have never moved. The next place I move to will be rural and the last time I move. It must be horrible to live in a rental where you have no control of what your home is like. My parent's old home I have maintained for decades as well, something broke every month but since I can fix anything, living there was far cheaper than renting. I like having my home somewhat run down because it lowers the property value and thus the taxes.
It’s so beautiful where you are!❤❤❤
Sir I was a property renter and in renting my properties I folded , taxes , percentage for repairs over and above what my commitment for the property I was responsible for and towards the end I incorporated a deductible for certain problems etc .
Example if their child flushed a toy down the throne then call me after hours expecting me to call a plumber in on overtime , that didn't happen .
I ended up becoming the banker and sold everyone of my houses to tenants that had been renting for an average of 4 - 6 years .
Ps I was so glad to have gotten out of the Land Lord thing , specially in this day and age .
Welcome to Florida. By 1 PM. It's gonna be humid. Like the videos.
Owning a home or not, there is no true freedom until you have a paid off home of your own; renting is temporarily fine, but long term as you get older, it will be harder to rent as your earning power goes down😢
I'm 27, finished college, have a good job, bought a nice house. I heard about a church member was selling, I got the house before it was listed. Look for a house in places other than MLM listings.
Home owning in the US is overrated. I own many properties overseas that I rent out with less hassle than in the US. Im a bachelor so I tend to move every few years and enjoy it that way. I spend a lot of time overseas and in the Caribbean. I live the Nomadic lifestyle
I’m grateful for people who like to rent, especially when they rent from our personal property. Also great property management company is crucial, don’t want the headache.
I really love the stability of being a home owner.
It comes down to peoples priorities, To each their own…
Owning a home will become 1% more expensive in October when it comes to home insurance as projected by the Florida Legislature. All these increases will be passed on to the renter as we know it.
Hi Michael, I think you are right. Many are afraid of the unknown. What happens if I own a home? They think they can only own one and never move. Maybe you can make a video of the options and how-to's of selling, moving, and buying another home.
We rent, I could buy the place I'm renting cash if we wanted too. The reason we don't? Bc I don't want a cookie cutter split level. The next level up is 7-800k right now (the taxes alone would be what my rent is now) so I would rather rent a $300k house until prices come down then buy a medium home and then be tempted to dump money into projects like a deck/pool/kitchen. Currently bc we don't do projects on a rental property I'm banking a lot of savings away. If I'm going to live in something long term and own it, I want to love it. Also a future 20% drop in prices is significantly more savings on a high end property then a starter home. I am not going to put 300k into a fancy mortgage just to watch years of savings blow up in a crash.
Your starting point matters when owning!
I think buying a smaller, less expensive house, in a reasonably nice area that offers you employment/income and resources fairly close by is best.
In other words "less is more".
Waterfront homes are subject to storm damage and higher insurance rates.
Expensive homes that are built very close to each other in fancy neighborhoods are overrated IMHO.
At the end of the day things that were once obtainable with ease by the Middle Class are now becoming a ball and chain.
They are too much like work . . ...
No wonder people are choosing to rent rather than buy.
I lived in a house my whole life. Now, I am in a condo and I absolutely love it. It is so much easier to keep clean and less costly to maintain. Plus, my taxes, HOA, and utilities are much more reasonable. House is my much more expensive to maintain.
Michael, you are a great media host. Great financial education talk to us.
Owning a home is priceless. Period. You have your privacy, you decide how you want to live, not by someone else's rules. One older person here wrote that no one talked about older folks and he/she now lives in a retirement home and obviously does not own their own home. If you keep you home up, you do not face in most cases extraordinary costs, because you address them as they occur. I have owned my home for over 20+years and would NEVER want to give up my house and subject myself to someone else's rules, rent increases and other issues. There is NO substitute to owning your own home.
Real freedom is being debt free and having a home that’s paid for.
🥰🥰🥰🥰🥰..OOP's TRAVEL 🤩🤩🤩🤩🤩🤩
This is what I strive for . I’m 5 yrs into a 30yr, but my home was purchased under 100k. I can’t wait to pay it off
Well. I paidmy house lastMarch and paid ,y Mercedes Cab6 ~ CASH! Sooo NO debt
Beautiful place. I’m so happy you kept this in your vlog.
I buy a homeowners maintenance policy every year, and it is worth the peace of mind. I used it last year for a new AC condensing unit. Three years ago used it on a new built-in oven and new garage door opener. Some years I don't use it but the times I have have saved me big bucks. It balances out over time and I don't have to deal with finding a contractor. The insurance company is responsible for that.
Michael, you videos just keep getting better. This one should go in the best of file. Very interesting hearing peoples perspectives. I've done both, and prefer renting (from a mature landlord).
Even when you own a home or land or a car, you are renting it. The rent just has different names: Property Tax, Ad Valorum Tax, Value Added Tax, Sales Tax, and Purposely over inflated sewer and water bills. The list goes on and on.
It cracks me up when tenants don't want to pay for taxed and repairs on a property. My tenants are paying for those very items although it's not broken down how but a lump sum every month seems to make it more palatable and on top of that I am still clearing over a grand on each unit. I love tenants.
We love you too, Todd. We tenants are happy to help you since you might otherwise be employment challenged❤
@@dalesmith4019 Well I owned a successful electrical contracting company for 20 years and retired a multimillionaire at 51 so I do know hard work and smart investing.
Successfully r@p3d workers on wages for years, good job dirt p1mp
I definitely agree with moving around every few years. I have no interest in buying just yet.
Genius. Glad there so many happy renters. Makes it easier to find them when time to rent another vacancy
Nice points on rental vs ownership.
Renters are usually poor and lower on the economic totem pole. The only way out of poverty is hard work and determination. I purchased my first home at 23 and now own several rental properties and vacation homes. I'm all for life long renters. They've contributed to my wealth immensely!
2:40 Appliances are not what being rented when renting an apartment you are renting the Walls and doors and roof and windows with what ever is inside " as is " unless it says appliances are covered in your contract then dont expect appliances to be repaired , maybe replaced with a fee . Only the faucets and water devices will be repaired free as long as the damage is from general wear and tear . I been renting apartments 40 years
Owning a home is not such a great investment if you have a mortgage. Just comparing what you paid and what you eventually sell it for is simplistic or downright stupid. When you total up the mortgage payments and the mountain of bills over the course of years you really don't come out of it that great if you do sell. If you're lucky you get back what you put in over the years. As far as renting you may not accumulate any equity but instead of plowing additional thousands of dollars into every conceivable home expense you can put it that money in the bank. Mortgages are the biggest scam ever perpetrated on the working class.
I felt that way since i was 16 y.o. and never bought, but if i did i would have made a lot of money just because houses is where the FeD offloads inflation created by crazy money printer
I bought my first townhouse (The Netherlands) in 1990 for 65.000 dollars (converted from Gulden). At that time a college of mine always sold the argument that as a renter he was free from maintenance cost and all the other burdens owning a house. I lived in that house for 20 years and my only cost where painting the windows frames, 100 bucks every 4 years. While I was paying 600 in mortgage a month, he was paying the same amount in rent. in 2010 I sold my house for 200.000 dollars. From the profit I bought a fixer upper cash and spend my previous 600 a month on mortgage fixing up the house. 12 years later my house is finished and I have no monthly payments. My friend still rents and he now pays after 32 years of steady raises 1.500 a month.
I was a homeowner and hated it because I was a victim of school digger!! Never ending school tax increases!! I’m a renter now and hate it. That damn school digger!! Ever increasing rent!!! My last move will be a small home in the middle of nowhere, where no one wants to be, with my dog.
I bought my house in February 2021. I'm in Central FL and my interest rate is 2.75%. I bought what I could afford... not what I qualified for. My mortgage is $1000. I budget for my taxes and homeowners insurance. I plan on having a paid off home in 15 years. Home ownership is not for everyone, but for me... It was a fantastic decision and I'm glad that I did.
Don’t listen to fools that tell you not to buy a house. It’s all bs
Regarding the time saving aspect; I wonder how many of those people who say they don't want to spend the time maintaining their home instead waste their time playing computer games or watching sports on TV ...
The fact of the matter is that it's all about attitude. Swap the word "maintenance" for "care" and all of a sudden you are "taking care" of a place and a space that you have created for you and your dear ones. Do not underestimate the value of creating and having your own, private space to feel good in. It's not all value that can be measured in $$$
Good point Nick!
Awesome content as always 🤗💗
Thank you! 🤗
Owning a home is a security thing. Of course the reality is that in Florida you are looking at 2% a year in taxes. So in 50 years you paid twice for your house. So basically, you are relying upon “appreciation” to balance out your expenses. Appreciation isn’t a given, but it’s likely. The point is, by the time you pay taxes and repairs not to mention insurance, houses are not the great asset we have become convinced to believe.
Different stroke for different
Folk
For me owning home is a must in order to stop rent from going up after you done paying off you only pay property taxes and up keep
Learn to fix things yourself
Gas prices in Phoenix hitting $5 a gallon now! We are like the same price as LA now lol, its getting ridiculous.
Ur right I looked I got last years gas in my tanks.good for awhile🤑🤑
Love today's content. It helped clarify and validate my decision in housing. Thanks!
4:32 Is that silver car to the right a rolls royce suv?
A home is just a giant 30 year piggy bank that you can break open when you sell it.
Really appreciate these videos. The walks even though I'm not there are relaxing.
Michael I wish more people had your common sense the world would be a better place keep up the great work!!! George
No condo and definitely no co op for me can’t stand people telling me what I can and can’t do to my own property I start my bike and let it warm up on Sunday mornings I work on my car to midnight if I want my house my rules
Just sold to rent! Will buy a condo if mkt eases. As a single person I was Sick of dealing w picking up yard, to dealing w repairs and finding reliable affordable people. Just constant hassle and bullshit!!
Lots of renters have to do yard work too :/
I’d be more stressed about potentially not being able to renew the lease every year than repairs on a house I own. Personally can only make sense of renting by choice if due to moving around a lot
That was one of my big stressors too when I was renting
@@MichaelBordenaro That 3x income requirement to rent is hard...
My landlords wouldn’t let me renew after two years and after I left they raised the rent $500. They were terrible and would just show up at my door whenever. I always felt uncomfortable. I rather have my own home and land than feel insecure about whose investment I’m living in.
we recently bought our new house Dec 2021 with 2.99% had to pay 35 k over asking price to get it. MY wife and I are in early 40s and have worked from home last 5 years and have saved a nice amount of $ to afford the home we wanted. We have a 4 year old and wanted to put her in a better school district and neighborhood. we did not buy to big of a house 1908 sqaure feet which was only 200 more than previous house but this one has finished gameroom and more bathrooms so it worked out. Would like to pay off in 10 years or less and be debt free. home owning is not for everyone esp in todays market. renting may be better option. Do whats best f or you and live life
Michael love your videos and turned my hubby on to them. He said he likes them but says you say hey guys too much. LOL
If you didn’t buy before the Cov$&, you’re pretty much screwed. Insurance and the roof boondoggle has really made it all in appealing. So, I’m renting in a neighborhood I really want to live in for half or more than the cost to own. It’s sickening to think that with a well above average income, no debt, great credit that I could be a renter for life myself. I don’t see where it gets better anytime soon in South Florida especially in desirable neighborhoods.
At least you're saving a big chunk of your income each month that you would be spending if you own the place. That's a plus.
Same!
"if anything breaks someone else is responsible" - to take action on the repair, sure. To finance it, no. You are still in most cases paying a premium (rent) to have this sort of management. The costs of said repairs and maintenance are already figured into the bill, so you aren't really getting ahead by renting.
Thanks for the tip on the park! It's really nice. I live in North Broward and the buyers here are from NY. We haven't been able to upgrade in house because even though we have a nice income the prices are just ridiculous. My husband and I have been homeowners for decades, we've had different properties. We made money every time we sold. We sold high and bought low. We have no regrets. I believe it's the fastest way to build wealth. We just have to know when to do it.
I always wanted to live on a boat ( since Miami vice) renting just doesn't make sense to me because your landlord is making a profit on you. .... so what ever it would cost you to own it must be less.
There are some really spacious camper out there. ( I'm about ready for a change. Just don't know if it's a different country or ??? )
Renters are too funny! Don't they realize they are paying the taxes, insurance, and upkeep on rental property??? Do they think landlords just eat those costs out of pocket??? No one is in business to lose money! 😂
Before WWII most of us were renters and we got along fine. I live in L.A. Bought many years ago. At this point it’s wise and smart to stay a renter during this inflated mess we’re in. High mortgage, changing property taxes, insane homeowners insurance, monthly gardening, household maintenance, upgrades all cost through the roof now. The trades are charging insane prices to fix plumbing, electrical, roofing. I just got an estimate to put in a wrought iron gate 6’ wide with an entry gate. $6200!!! Basically $1000 a foot! If I were in my 20s 30s I wouldn’t think of wasting my money on a house. Owning rather paying the bank for 30 years with interest in order to own it is overrated and a waste of money. You basically pay double what you initially bought it for. Id rent and with the savings invest and in 20 25 years retire well and travel instead of retiring in house you own, but are stuck still paying out those costs to keep it., not to mention you can’t get up and leave.
Well said!! It’s makes sense to rent in this current economy. Another thing, home ownership will wear down your health. I’ve seen many people suffering from heart attacks and strokes coming into the ER after their homes were damaged by a hurricane or flood. Too much stress!!
My family was poor and we owned homes before ww2. It was small houses or attached homes like row houses. What we didn't own was cars. That changed when they tore out street cars and tracks
Even if you pay double what you bought it for, you are still stuck with inflation where your current value dollar's today is going to be roughly 1/10 of what it is in 60 years. =/. I was reading a news paper about how new homes in Santa Barbara, CA in 1969 were $25,000 - $35,000.... A new home today here would probably cost around 2.5-3 million. I think after the crash you can probably buy a 1960's-1980's house in 2026 for like 850-1.3 million but even at 850k thats a big jump from 25-35k. Now if you repeal prop 13, which we should...... Property prices in California would probably be 35-85% cheaper within 2-3 years regardless of a crash.
Take your down payment ( not price) and check how much your house is worth now (- mortgage)
.... and then let us know your rate of return. ( you would have paid intrest and upkeep in rent)
@@LunaMirage my parents built really nice houses in Michigan in the 60s and 70s. Normal middle class families could afford a house with 3 fireplaces.
Today's house are structural more expensive. We have moved towards European standards.... and hardly anyone can afford a new house in Europe.
Choosing to rent or buy usually depends on what stage of life you're in. Young free and single and want to progress your career usually requires moving every few years making rental a better option. As you get older and/or want to settle down buying is likely to be a better option. Either way put money aside for opportunities or the bad times.
You can save a lot of money by going on TH-cam figuring out how to repair things yourself. And then when you do have to hire someone.. do what my dad did. Be there when the repair person is working and learn from them. Ask questions and observe. You'll soon find out.. you can do a lot on your own in your own time.
My current rent is basically the same as what my new mortgage will be. It just made sense for me to purchase a home. I also have kids and I enjoy living in a suburb and being able to do what I want with my home. I’m also a huge DIYer. I love learning how to fix things and figure out how things work. But that’s just me. But for renters, when a home keeps needing repairs, the rent will more than likely go up at renewal to recoup those costs. The owners/landlords, just pass those costs onto renters anyway.
As long as house prices go up, it's better to own. The longer you plan to stay in the house increases your odds . Based on history, likely better to own to build wealth imo
Don't buy a house where there is a HOA. Houses in my neighborhood
Can't sell. Price cut after price cut.
Maybe this is better for Florida resident , but for California it’s better to own your home/condo and have 30 year fixes payments , rent increases over the years are not better , and rent will keep increasing it always has why would it stop now .
Rent increases everywhere not just in California but that's not really the point. There's plenty of places in California LA being one of them where you can easily rent something for less than it would cost to own the same thing. Sometimes it does make sense to rent even in California
I have a renter like the guy you are referring to in your video
Tenant sold a sprawling farmhouse in 2018 and the couple came here..
In his case he has alot of adult children who prefer to live with mum and dad rather than work for a living
Had to speak to them a couple of times that I rented to 2people and not a family of 12
In any case his 2018 sale was for quick cash ...apparently those adult children need to be subsidised by mum and dad so now his ability to buy in 2023 when prices are 50% more have put home ownership increasingly out of reach for this renter
@@jimshoe402 ..they will be coming up to year 5 next month for renting from me..thats alot of BS to deal with...Thinking about calling the lawyer for a scoot-out for a while
Great video Michael :)- I just turned 50 years old this Feburary. I have never owned a piece of property to this point with the economy in the state that it is. I hear nightmare stories about people who have recently bought and now regret their decision now they are are pretty much stuck. Very valuable information in your video(s)!!! Kudos to you for your efforts!!! :)-
Life is short and if you ever retire, owning is the ticket.
I love the points in this video. This is your best yet.
Thank you!
Some people just like having a mobile lifestyle. They don't want to be tied to a piece of property. They like the feeling they could pull up stakes and move to the other side of the country (or world) within a few weeks time. And they would rather spend their spare time doing activities other than mowing grass, cleaning gutters, and trying to fix leaky toilets. Whether it's advantageous to buy over renting is irrelevant to them. It's the lifestyle they've chosen, and like other lifestyle choices, there are things in life you simply cannot (should not!) put a dollar amount on. It's not guaranteed any of us will be here (in this world) five years from now! (And the so called "cynical" guy is SPOT ON!!)
Decision in long term renting vs buying is simple if monthly rent cost less than mortgage+insurance+maintenance+tax then rent. In Miami it’s not a case. In NYC there is rent stabilize program if you rent for 20 years rent is really cheap but this program only exists in NYC