The housing problem and everything surrounding it is really getting out of hand. I'm 35, live and work in California, and almost have enough saved for a down payment on a decent house. But now I'm second-guessing it, feels like the market's overvalued and there's talk of a crash. Some friends advised me to throw that cash into stocks or something and wait for prices to drop, but I'm also confused because what if I don't buy now and the prices go even higher.
Yeah go with the Stocks or crypto since they can offer high returns in the short term. Who knows, you might even make enough money to afford a way better house after the crash
Two years ago, I was in a similar spot and decided not to buy a home because I was happy in my rented apartment. That turned out to be a great choice, because I now make close to 15 grand a month from it! With the right F.A or by choosing the right things to put your money into, you could grow your wealth to the point where you could afford a "better" house while ensuring your financial security in a short time, with or without a housing crash. Goodluck
nice... this makes a lot of sense... been considering going into this stock thing for some time now. heard its a nice way to make money bts... how can I get a nice f.a? and how expensive are they?...
Well, you should start by looking out for those from credible firms and good track records. Also, make sure the person is licensed. Personally, I use Michael, Allen Eckrich. He's good and you could also look him up too. And they're usually way cheaper than you would expect.
It's a small world! I recently met him at a conference my office organized just a few weeks ago. What are the odds I'd be scrolling through an unusual post for me and come across this thread? Really small world!
I remember when we looked at getting financed back in the day, 25+ years ago, for a house. They said we could afford $150-$170.000 based on our income, NOT expenses, for a house. We laughed! There's NO WAY! We bought an older home for $79,000, and it was tight with a growing family. We did a lot of fixing it up over years and made it ours. We sold and downsized. I just discovered someone bought it recently (as it had several different owners since we had it) and flipped it, now their asking $325.000! We bought in 2012 the house we're in now for less than $63,000(base) total $90,000 including the cost of updating the kitchen, bath, electrical & refinishing the floors. We did the work. It's a small 2 story, 3 bdrm, nothing fancy, over 100 years old. It's now valued close to $200,000! Like, WTF? How do our adult kids afford a decent place? Rents are over $1200.00 a month for a small 1 bedroom! Everything went up in price so fast that it's practically impossible to buy a starter or an old house without 2 full-time incomes and no kids and a strict budget. If you have student loans, a kid or 2, well now, it's even harder to get a place, let alone something affordable. Prices were more reasonable back then. However, the financial systems in place were destroying people's lives and futures with the belief of too big to fail. Then 2008 happened, remember BLACK FRIDAY. Millions of people lost everything overnight. It's not easy at any time, but the young adults right now are mostly kept out by the system. It's ridiculous and wrong!
Why does no one ever talk about interest? A 500k house at 7% interest is 1.2 million, now add closing fees, insurance, hoa, and maintenance on top of that.
My brother showed me an article that said home owners on average lose money because of those items. Many people forget those when factoring in if they made money on the home or not.
It just stinks because I’ve worked for 13 years and built a nest egg for what? Nothing. I wanted to own a home, that was it. I want to be able to do normal stuff that a 35 year old does, have a garage or workshop to work on stuff. Or even have a project car. Everyone is like, oh just rent an apartment and be happy. Excuse me, but you probably don’t realize it since you’re all spoiled with your fancy 3/2 2 car garage and yard homes you own but an apartment offers NOTHING that I’m looking for.
But everyone says it’s the strawberry picking immigrants who are buying houses. No its people hoarding houses and turning housing into a profit margin. Those people are telling you it’s an immigrants fault. I never got outbid by a guy from Guatemala.
@@bobroberts2217 ya know the rule trump has about regs, to pass a new one you have to get rid of 10 old ones, he should make a rule that in order to buy a house, you must first sell a house. that would stop the nonsense.
@@coled5090 we are renters. But I told my wife that with only my salary we cannot afford a house unless we have an ADU built into the plan. Gives me peace of mind that we will have some income built into our mortgage.
To your point Michael, we moved 60 days after closing on a house in a different State. I received a $260.00 water Bill for the new house. 0 Usage All Fees.
All these issues stem from an economy grappling with uncertainties, including housing problems, foreclosures, global fluctuations, and the aftermath of the pandemic, leading to instability. Rising inflation, sluggish growth, and trade disruptions demand urgent attention from all sectors to restore stability and stimulate growth.
In retirement, safeguarding your wealth against inflation is essential. Consider options like TIPS (Treasury Inflation-Protected Securities), commodities, or foreign currencies to hedge against a weakening dollar. Diversifying your portfolio with global real estate, international bonds, or high-quality foreign stocks can provide additional protection and growth opportunities in an inflationary environment.
With my demanding job, I lack time for investment analysis. For seven years, a fiduciary has managed my portfolio, adapting to market conditions, enabling successful navigation and informed decisions. Consider a similar approach.
Certainly, there are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with Jennafer Beaver Turner for about five years now, and her performance has been consistently impressive. She's quite known in her field, look-her up.
I just copied and pasted Jennafer’s whole name into my browser, and her website appeared right away. You've saved me several hours of arduous research, therefore I appreciate it.
i made the exact rookie mistake you mentioned in regards to my expecting my house tax would stay the same as the previous owner. Within a year of me buying, it literally tripled on me. I paid for audit again and appealed because the comparable don’t exist for old house surrounded by almost mil dollar homes. The y reduced it to Double instead of triple. ugh. still crazy. the property scam interview by the Denton texas guy shed so much light as to how municipalities are stealing from us by this property hikes.
My old house that I just sold, the water bill had 'tree management' fees for the programs to maintain all the trees in the county. Not because it is related to water usage but just its an easier way to put extra fees on the water bill than the property tax bill. It is crazy..
They are just sucking the money out of us and you’re lucky enough if your house survives them dropping a fire or a flood on you so that you lose that house.
Only fools were fooled thinking home don't have ongoing repair issues. When they were living with mommy and daddy, they didn't notice repairs being done on the family's home.
@@Mytriumph650pre-unit homeowners pay for repairs as they are needed along with the preventative maintenance. Renters are paying for maintenance before and after they are needed. Renters also paid for other renters who didn’t pay as they were used to supplement others.
@@Francisco-po1cf exactly. No landlord operates at a loss. Those repairs are all factored into the rent. As if the cost of insurance, landscaping, security, etc.
A house isn't the best investment, considering the state of the economy right now. After selling my Boca Grande house, I want to put $200K into stocks because they can still increase in value during difficult times. Do you have any great ideas for stocks?
The truth is that if you make the right picks, you could make killer riches very quickly, although such profit usually needs expertise, as in hedge funds or financial managers. I personally prefer the latter.
Agreed, I've always delegated my excesses to an advisor, since suffering major portfolio loss early 2020, amid covid outbreak. I'm now semi-retired and only work 7.5 hours a week, with barely 25% short of my $1m retirement goal after subsequent investments to date.
My CFA, Carol Vivian Constable, is a renowned figure in her field. I recommend researching her name online; you’ll find all her credentials and everything you need to work with a reliable professional. With many years of experience, she is a valuable resource for anyone looking to navigate the financial market.
I watch you everyday. I'm amazed that you're able to speak to something for the duration without ever being redundant. Housing fascinates me. I wanted to become a realtor once many years ago. Competition was, and remains fierce.
@@francismarion6400this is exactly what people are failing to understand. The printing of money is still happening. The value of the dollar is decreasing every month. Prices will never drop like people want them to while this is happening
Asking a real estate agent whether you should buy a home right now is like to asking an alcoholic whether they think you should have a drink lol. Homes in my neighbourhood that cost around $450k in sales in 2019 are now going for $800 to $950k. Every seller in my neighbourhood is currently making a $350k profit. Simply unreal. In all honesty, deflation is what we require. The only other option is for many people to go bankrupt, which would also be bad for the economy. That is the only way to return to normal.
Home prices will come down eventually, but for now; its best to offset some of your real estate investments and get into the financial markets or gold. The new mortgage rates are crazy, add to that the recession and the fact that mortgage guidelines are getting more difficult. Home prices will need to fall by a minimum of 40% (more like 50%) before the market normalises. If you are in cross roads or need sincere advise on the best moves to take now its best you seek an independent advisor who knows about the financial markets.
consider moving your money from the housing market to financial markets or gold due to high mortgage rates and tough guidelines. Home prices may need to drop significantly before things stabilize. Seeking advice from a financial advisor who understands the market could be helpful in making the right decisions.
When ‘Melissa Terri Swayne is trading, there's no nonsense and no excuses. She wins the trade and you win. Take the loss, I promise she'll take one with you.
I just looked her up on the internet and found her webpage with her credentials. I wrote her an outlining my financial objectives and planned a call with her.
well kinda. Billionaires in government are the problem and in a few weeks... it's gonna get way worse. So why don't you look to vote for someone that isn't in it for the money. maybe look to vote based on actual economic issues not social issues. oh well. maybe next time.
Is the government wants to Heist homes and do a financial Global collapse they can do it in our sleep yes government is the problem they want all the money in their pockets to taxpayers Dollars and don't want the taxpayers to have a damn thing but struggle struggle struggle it's happened a million times before
Point of reference: In 2010 I got my first job making $48k/year and bought a house for $159k at 5% down (rolling closing costs into the mortgage) in an area with a 1.25% real estate tax rate and a 4.2% mortgage for a monthly mortgage payment of about $1000/mo. In 2025, that same position pays $61k/year (27% Increase) and the same house is allegedly worth about $300k which and would cost $2500/mo (150% increase) at today's 7% mortgage rate. These are indisputable facts. The problem is that federal tax laws are written to ENCOURAGE home buying as an investment. If Congress would simply abolish 1031 transactions of residential real estate, eliminate passive loss allowances on rental, levy higher tax rates on residentials owned by corporation, or if municipalities enforced higher real estate tax rates on secondary homes / homes held for rent, then inventory would flood back in to the market. These are just a few things the Government can do to address the housing crisis.
I am retired and live in Iowa. The state gave any homeowner 65 or older an extra exemption on property taxes along with the standard homestead credit. My taxes dropped from $1718 to $1542 a year.
Hi Michael, thanks for your insightful videos, I own old house but the secret is having a family member who great with repairs on all kind of things my brother stay with me he used to be house repair handy man for 20 years then he quit but he roof my house for $1,250.00 in 2019 he fix the toilet bow, change things out fix plumbing and he does all type of things so it save me money plus no waiting so it all depends on each person situation. I would had to sell my house if it was not for my brother knowing how to do all these house maintains. I pay little for property tax and my bills are about $400.00 per month. I could not rent for that low amount.
Instead of harassing combustion car drivers, Combusting-California can now deal with important things instead of terrorizing people with emission laws!
First thing I did when I got my property was sort the roof and cap the chimney pots x 5. There was a bit of damage so it was important to get this done and has made a massive difference in terms of aiding the bad weather and stopping any internal issues in the UK. Great video.
This is such a coincidence that you posted this video while I'm reading a revised loan offer from a loan officer. She increased the monthly payments by over $150 and tripled the amount of cash at hand to close, basically putting us out of the range to be able to close. I had to tell my wife to stop selling our items because at this point the dream of owning a house is going out the window. It honestly feels like I'm being fleeced since they just keep asking for more paperwork, and more proof, and then add more expenses.
fear a housing crash due to people buying homes above asking prices with little equity. If prices drop, affordability and potential foreclosures may arise, worsened by future layoffs and rising living costs. I want to invest more than $300k, but I'm not sure on how to mitigate risk.
Got it! Buying stocks during a recession when prices are down could be a good move. You might get them at a lower price and sell later when they go up. Just do your homework and be aware of the risks before diving in!
That's awesome! Investing in stocks with a reliable trading system can lead to great outcomes. It's fantastic that you've been working with a financial advisor for a year now. Starting with less than $200K and being just $19,000 away from making half a million in profit is impressive! Keep up the good work!
When ‘Melissa Terri Swayne is trading, there's no nonsense and no excuses. She wins the trade and you win. Take the loss, I promise she'll take one with you.
I just looked her up on the internet and found her webpage with her credentials. I wrote her an outlining my financial objectives and planned a call with her.
Finally paid off my house last year after 30 years. Had a great job with a good salary. My taxes are over $5.500 per year, $1,440 for home insurance. Replaced the roof shortly after moving in and just replaced it last year at $15,000. Also, encountered a sewer line repair in October at $5,000! Just because you can buy a home does not mean you can afford it. Especially to keep up with maintenance and repairs. Yes, is great to build equity as I purchased it for $136,000 and it is worth over $330,000. I plowed much of my income into renovations! That was years ago… I feel bad for those who want the American dream and cannot seem to obtaining it. Unless you can put 20% down and still have money for repairs, I would think long and hard about home ownership.
Depends on your income and net worth,, Lassie. $15K for a new roof is a pain, but completely reasonable. $5K for a sewer line repair is nothing. These are basic things. Anyone who can't pay these should not buy a house at all. It's not an apartment. It's real responsibility.
Now add up all the property tax you paid in all the years you owned the property and deduct that as well as all the other expenses associated with the property over that length of time and tell me if you made money or you lost money... THE ONLY GUY WHO WINS IS THE TAX GUY AND THE INSURANCE GUY.
@@DIVISIONINCISION I never said I couldn’t pay for it and my net worth is more than substantial to weather any repair or maintenance! I just was pointing out the costs that a new homeowner may not think about. What you think is nothing in cost may not be for someone else. Just sayin…
@@BillySBC Your point is well taken! In the 30 years of residence here I have upgraded to make the house my home! Indeed, adding it up over the years cost quite a bit. Yet, I am glad I did most of the renovations years ago as at todays cost it would be substantially higher.
You are amazing …. I have watched you almost every day since you began TH-cam … thanks Michael …. I think of you as a friend ( I never met ) a guiding light of reason … and even like an older brother even though you are younger!
Here in the midwest it's nice and cheap on all of these points. Yes, we have winter, but we have a house in a desirable city, insurance is cheap, electricity is cheap, taxes are cheap. Life is good
Michael you should make a video on assumable mortgages. When interest rates hit 12-18% in the 70’s homeowners were advertising their 5-7% interest rate on their homes, I’ve bought several homes subject to the existing mortgage. Better to find a seller with low equity and grab their 2-4% interest rate instead of 7-8%. (Propstream)
Good luck. I had an assumable mortgage back in the 90's and had willing buyers ready to take it over. The issue was that the mortgage company would never approve the new debt holders despite having fully qualified. Mortgage companies will use this as a way to get out of the low interest mortgage.
More than 80% of newly-built single-family homes sold in 2019/2022 belonged to an HOA. during the 2004 housing boom-home prices were significantly inflated, leaving people unable to sell later because they owed more on the house than it was worth. I know several people who bought during that time, thinking it was a good investment, but it wasn’t until the COVID housing boom that prices finally returned to those original levels.
To balance out your real estate holdings, I suggest investing in equities. If you're cautious, even the worst recessions can present fantastic buying opportunities. Additionally, volatility can produce fantastic short-term purchase and sell opportunities. This is not financial advise, but you should buy immediately away because money isn't king right now!
A lot of folks downplay the role of advisors until being burnt by their own emotions. I remember couple summers back, after my lengthy divorce, I needed a good boost to help my business stay afloat, hence I researched for licensed advisors and came across someone of utmost qualifications. She's helped grow my reserve notwithstanding inflation, from $275k to $850K
This is definitely considerable! think you could suggest any professional/advisors i can get on the phone with? i'm in dire need of proper portfolio allocation
Certainly, there are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with Stacy Lynn Staples for about five years now, and her performance has been consistently impressive.She’s quite known in her field, look-her up.
Thank you for this tip. It was easy to find your coach on the web. Did my due diligence on her before scheduling a phone call with her. She seems proficient considering her resume.
A friend of mine father worked at a major insurance compamy here in the midwest, and years ago he said that insurance companies would have plenty enuff funds to pay out claims, but because they invested those premiums in the stock market, and don't always get the returns they would like. Its simular to what the federal government does with FEMA funds. Spending it on their pet projects, instead of those that really need it in timrs of disasters, like those in North Carolina, eastern Tennesy, or Palistine,Oh.!
I bought my home in 2015 and it has increased about 50-60% in value. I've gotten pay raises over the years and do pretty well overall. I was curious based on the home's current worth, current mortgage rates and my current income, whether I could still afford my place today if I were buying it as a new home buyer. To be honest, I couldn't. The mortgage would cost me an extra $3,000 per month and I don't just have $36,000 in income that I could draw upon. Plus, property taxes, HOA fees, upkeep costs have all increased. So, I am lucky I got in when I did.
Had my 31 year old HVAC unit replaced in 2000 - $6500. 2003 Had my roof replaced - $12800, replacing the first roof I paid $4000 dollars for ( with gutters ) 28 years ago. Wrote a check for both. And that's for a 1,200 Sq. Ft. home with basement. I just live happily below my means. The piece of mind is well worth it!
As a formerly homeless person, I do the same! I have zero c/c debt ( excluding the home) my monthly income is aprox. 2800.00 a month. The monthly is 1350.00 a month ( 2/1 for 160) the utilities are aprox. 220.00 a month.I do not have an perpetual, ongoing auto expense. I do have a " house fund"( or nest egg) I have no HOA fee. I have no major health issues, and am prabably healthy enough to work well into my 70s ( barring the unexpected) so, Im actually ok, due to keeping things within my means.
Hello Michael, like always I enjoy your videos 😅😅 I love it. You tell it like it is love it. and you are so correct about the home prices let them come back down if people stop by and they will come down. They went up way too fast within a couple years. The house is only supposed to go up 3% a year these houses were going up 20% a year until they got outrageously high but people were buying them, but people are losing them too. I’m not gonna buy something that I know I’m gonna lose just to say I have a house oh hell no that ain’t happening.
Metal roof is basically double. They are nice and last longer but when you are doing other stuff it's not always at the top of your list. The water heater was $1k last Feb and that was with my husband picking it up and installing it himself. We also live on a private road, so we've been trying to get quotes for a new road and driveway. I'm expecting something around$10k. There's a lot to consider when looking at any property.
Can we please exempt property owners who are 65+ years old from property taxes?. What a tyrannical tax this is. I've owned my home for 32 years. Enough is enough already. 🙏🇺🇸✌️😎
You and your friends need to write to your state legislature representatives. While you’re at it, write up a Bill for the legislative House to preview, tweak, put to vote. Stop complaining on TH-cam and take action.
Here in New York State the government won't even exempt 100% Disabled Veterans from their property tax, you think they're gonna have mercy on somebody just because they reach 65 years old? THE MAN WANTS HIS MONEY!
30 year olds and below are the ones who should be exempt to property taxes not you old folks who lived easily and had plenty of times to have millions by now
It's a good thing you can't afford to buy a house, because now you also can't be overcharged for a house, you can't be over-taxed for a house, you can't be price-gouged by homeowners insurance companies for a house, and you can't be on the hook for remodeling and constructions costs because of a house. In reality, you're so much better off because you can't buy a house.
Getting outta Dodge was a great move. Healthcare at $42/month, no heating or cooling bills at 3400 ft elevation in the tropics, $300 annual property tax on a 2000 sq ft house. Time for another cerveza. Pura vida, amigos.
I bought a new house in 1985, replaced the water heater for 400 dollars, that was my only maintenance on the house . Sold in 2000 for double what I paid. 15 years ---400 dollars.
My property tax decreased by $125.00 this year, whilst “value” increased. The taxing authority changed the tax formula to make it more equitable. Still high, though.
I’m at $1542 monthly including taxes insurance and interest. Bought in 2020 for $245k. My homeowners insurance will go up in November to $4900 and I’m hating that but even then the increase will still only increase the mortgage by $100 for me. I feel like one of the lucky ones.
@@Just_a_good_old_boy yes lol I bought a 2/1 small bungalow in the ghetto of Miami. It’s cleaning up but still ghetto. It was the max end of my price range. I was approved up to $250k with 5% down conventional.
@@Just_a_good_old_boy The fact that a $245k house is called 'modest' by anyone is a sign of how we got where we are. A $245k house represents a single income of $122k per year, and you're in the top 20% if you make more than $100k per year, indicating that the view of wealth is so twisted in this country that someone in the top 1/5th is considered 'modest'. This type of viewpoint is insanity by any reasonable measure. It's like saying a competitive athlete who is in the top 20% of the world in their field is only 'modest'.
@jeremiahdonaldson1678 a modest shoebox in my area is around 400K. There is absolutely nothing in the 200k range any longer. I'm in a small town in Oregon
Thank you for your reply mate, but believe it or not turn out the firefighter appointment 15 years a nurse for about 20 I make as much as a nurse practitioner North Carolina. That’s why I did not go back to school to get my BSN because he BSN means zero money Nursing
I had expenses hit me all at once right after Xmas, hot water heater, leaking kitchen faucet and valve in bathtub, now have to replace flushing system in toilet. My house is older but never expected things to go wrong all at once Talk about "Murphy's Law ..lol! Some of these things aren't not that expensive save for water heater. I've been tempted to sell the house cash out equity and rent . On top of everything, check engine light is on in my truck. Although it's running fine still alarming to see it now have to have that diagnosed. People who are thinking of buying a house please listen to Mike. New houses have problems too!
Michael, I would even go farther on the 1% to 1.5%. And the impact isn't clear until you break it down into a monthly payment, $300 a month on a $300,000 house. In my house, which is now 25 years old I just replaced my roof at $25,000 and my windows at $24,000. Over the last three years I replaced one AC/furnace each year for a total of about $20,000. And we need carpets and countertops which we will replace right before we sell in a few years. Yea, 1.5% is more like it.
I’ll raise your 1.5% to between 2%-3% (on an average, annualized basis). I.e., for every $100,000 a home is worth, people should expect to spend $2-$3k/year on maintenance and repairs. The reason why is exactly what you said: those large expenses like a new roof massively increase that average over longer periods of time.
@ and size of the house plays a part too. I have 37 windows and a large, complicated roof not to mention 3 AC/ furnace units and two water heaters. It adds up. 1.5% would cover me. But a larger house in a more affordable area may require more.
My ex husband was always pushing to buy a house. The last thing l wanted was to be physically and financially tied down to a house. I told him..”Maybe we can afford to BUY a house but we can’t afford to OWN one.” I never regretted not giving in, especially since not having a house together made our divorce cheap and easy . Ironically my ex husband inherited his father’s house and decided to sell it after finding out it needed a new roof and furnace.
I had to buy 10 gallons of interior wall paint today for the condo I work at. It cost almost $750, Benjamin Moore. There was about 8 eager employees in the empty store waiting for me. I haven't checked HD lately but that is outrageous.
10 gallons of behr premium exterior semigloss H. D. which is better paint by the way is $520 and I don’t use anything else inside my rental properties ever people are just plain filthy and trash your house and FUC everything up beyond repair in most cases.
Lol I pay like 30 bucks/gl for that crappy speedwall stuff at Walmart. It's white, it's cheap, and covers well enough for most living spaces. I always get nicer paint for the bathroom and kitchen for cleanability.
AND the $3800 a month that you are spending is POST TAX which means you have to earn approximately $5500 a month to net $3800/month which means that you have to earn $66,000 just for your house and some people say that your home should only be 25% of your income so you need to earn $264,000 to afford it!
Buying property is a commitment!! You absolutely have to give up things to acquire your wealth. Sometimes it's temporary and sometimes it's permanent!! Wealth is just not a given ! Changing lifestyle is sometimes the key to your success !!
Great video Michael! Owning a house is a huge debt machine especially considering the price being paid for what would have been a fixer upper 4 years ago. The media and real estate industry salespeople only want to talk about the interest rates. I’m watching prices begin to fall in Pinellas County and Tampa Bay metro area. As a broker I rent and caution people on buying in the current market. Most don’t have a 20% down payment. Uuuugh!! Prices need to crash bed the numbers make sense
Here is a solid tip on paying down your mortgage, especially in the first years. Get yourself an amortization table of your mortgage and note the principal and interest amounts. What I did was to add just the principal amount to each monthly payment. As it worked out I paid the mortgage off 5 years ahead of the amortization schedule, that's 60 months of payments! Each payment with the principal of the next month added I figured saved me the interest expense required to get the small principal reduction as allowed by amortization.
Back in the day, when I purchased my first home to live-in; that was Miami in the early 1990s, first mortgages with rates of 8 to 9% and 9% to 10% were typical. People will have to accept the possibility that we won't ever return to 3%. If sellers must sell, home prices will have to decline, and lower evaluations will follow. Pretty sure I'm not alone in my chain of thoughts.
If anything, it'll get worse. Very soon, affordable housing will no longer be affordable. So anything anyone wants to do, I will advise they do it now because the prices today will look like dips tomorrow. Until the Fed clamps down even further, I think we're going to see hysteria due to rampant inflation. You can't halfway rip the band-aid off.
consider moving your money from the housing market to financial markets or gold due to high mortgage rates and tough guidelines. Home prices may need to drop significantly before things stabilize. Seeking advice from a financial advisor who understands the market could be helpful in making the right decisions.
Certainly, there are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with Jessica Dawn Walters for about five years now, and her performance has been consistently impressive.She’s quite known in her field, look-her up.
Most people I work with in their 40s keep talking about paying off their mortgages and buying a second home in GA, VA, etc. I am envious of their position. I’ve saved up 13 years and am nowhere close to buying. Most of my friends bought before 2020 and two gave two homes and rent one out. Everyone is so rich nowadays but it sure skipped me.
I’m paying 5800 a year in insurance for 2/1 home with no flood insurance required/associated to the policy. This is up from 1200 a year when I bought the house. At this rate I’ll be forced out.
And never ever tell your agent when buying a house how much money you have allocated on top of the down payment. Some agent will have you bid on a house you like way higher knowing you have this extra money. Their commission is based off a fixed percentage of the sale price. It's to the interest of both buyer and seller agents to have the house sold at the highest they can get.
Houses and lots around here just had an new year presents today, my evaluation got boosted by 40k ...so nice of them. Of course property taxes got upped also..
A significant portion of the economy has had trouble affording food. Arguably one of the biggest reasons behind the electoral avalanche. If people, en masse, are having trouble affording food, is there any question of why the real estate market it in trouble? In a time where the average person cannot handle a $500 emergency, the market for homes is on the far back burner for the majority. They've spent the last few years starving the little fish and are wondering why there's no food for the big fish anymore..
Being a "forever renter" is a recipe to never retire. To retire you must get out from rent/mortgage. The economy is such that you need to have bought your house 30 years ago and pay off the mortgage. The devil in the details of things like the property tax, homeowner insurance, utilities, etc. The obvious thing is that as of now is you are supposed to get rich or be doomed to work until you die in the street of an expensive disease. Such is the United States.
Owned two personal residences over a 45-year period, our total cost for maintenance (new roof, appliances, painting exterior twice, landscape service) was about $50 a month average. The spoke in the wheel today is property tax and home insurance. Two serious unknowns in a high inflationary period.
I honestly felt I got lucky selling my condo in Oceanside CA, I almost pulled the listing after it sat on the market for 1 day under 60 days. I was 5 min from the beach, great location and under 1 million. I have no plans on buying anything soon.
I'm not sure that was a good idea unless you plan on leaving the San Diego area. Prop 13 prevents your real estate taxes from going up more that 2% a year. Now if you decide to buy another home in San Diego your property taxes are going to be higher. If you decide to rent instead you are going to be paying for the landlords mortgage, HOI, HOA, taxes. Your rent will go up to cover those. Apple is bringing 1000s of employees with high salaries into the area. That is going to put more upward pressure on the housing prices.
Metal roofs sound good on paper, but most insurance don’t give discount anymore cause they can get dented by hail or falling objects. Then it has to be repaired and costs a lot more to fix. Than asphalt shingle roof . So a lot of companies don’t do it anymore .
Many insurance brokers I have talked to don’t care if you have a metal roof. They care it’s installed properly and will not fly off during a hurricane. It’s similar to regular shingles vs architectural shingles: one is cheaper; but, the other will last longer. Both fulfill the same function.
My advice to my kids for their 1st home buy was to buy New if possible, usually 1 year warranty, since everything is new hopefully any repairs will be years away, in DFW area builders are motivated to move properties
Average s .. get away from high cost areas .. deal with some snow seasonal changes . Imagine owning a home and your taxes and insurance is under 250 bucks a month ! And own acres!
water heaters cost $400 last i looked, maybe $600 now and i would charge $300 to install, a 2 hour job. need to get real people.. Performance 29 Gal. Tall 32,000 BTU Natural Gas Water Heater with 6-Year Warranty...$519 home depot
I'm glad someone else mentioned this. Granted it depends on the water heater type, location, and if you need to redo any plumbing that handy Andy did. Also i hate people that plumb in a water heater with copper soldered directly to the female adapter. Flex connectors make replacement an hour job...rant over. I'd do nothing but water heaters if I was getting what he said per job.
@@Mrsmith971 i always use a dielectric union to connect. i never seen any other plumber doing this, even ''pros'' who charge $2500 for the whole job. i will check about flex connectors if it makes the job quicker.
I very much doubt home insurance companies have claims from even 1% of their customers in Florida, and yet, they have more than doubled their fees to 100% of their customers. What a bunch of racketeers.
Insurers have paid out well over $50,000,000,000 just in Florida in the last few years. In addition, while Florida accounts for only 9% of the nation’s homeowners claims, it accounts for 79% of homeowners insurance lawsuits. It’s not a racket: Florida is just a MASSIVELY expensive place for them to do business. Which is exactly why so many of them are leaving Florida (which further contributes to higher costs for homeowners).
Insurance in Florida is a scam. I have had damage from 3 named storms, and filed claims after each. Every single time they deny, different reasons. My favorite reason, was this was not damage from the storm, it's a manufacturing defect with the roof. Our risk wind model shows the wind was not strong enough to rip your roof off. Once I pay off my mortgage I'm not insuring the home anymore, they don't live up to what they agree to cover.
I've been doing insurance inspections in South FL, Miami-Dade, Broward and Palm Beach Co. and regardless of what type of roof you have, if it is more than 20 years old, they want a new roof or they will not insure your house.
Wish they would build smaller homes for people. You just don’t need a lot to be happy. My husband and I downsized 8 years ago and have never been happier. You just don’t see smaller homes like you do those big cookie cutter ones
We have moved many times, the initial purchase fees always hurt. However, we always seem to spend a lot of money at the hardware store on small jobs for the first six months of ownership.
That number for home maintaince at 1% of homes value does work. I looked at last three years on my place. Plus, I've done a couple of larger expenses. Roofing will not come close.
Regarding finding home owners insurance. I had a house listed. The buyers checked previous insurance clames by the owner. And although they were major, I think there were 2, they backed out of the deal because they were told that they my not be able to get insurance or it would be astronomically high. The home was in perfect condition. Even their inspector said so...
Michael these homes in some areas like New England are at the end of their life spans, or you have to put 100k into repairs. Then you go to the South/Southeast where they won't stop building, ans these homes are being put together with cardboard and are ugly cookie cutter, box shaped homes. You're either overpaying for a aged home or a poorly constructed home. Getting hit from every angle, on top of unaffordable housing. Insurance and property taxes are the final nail in the coffin!
“I Was LAID OFF 8 MONTHS AGO AND STILL CAN’T FIND A JOB!” th-cam.com/video/D9tMIdFarjI/w-d-xo.html
The housing problem and everything surrounding it is really getting out of hand. I'm 35, live and work in California, and almost have enough saved for a down payment on a decent house. But now I'm second-guessing it, feels like the market's overvalued and there's talk of a crash. Some friends advised me to throw that cash into stocks or something and wait for prices to drop, but I'm also confused because what if I don't buy now and the prices go even higher.
Yeah go with the Stocks or crypto since they can offer high returns in the short term. Who knows, you might even make enough money to afford a way better house after the crash
Two years ago, I was in a similar spot and decided not to buy a home because I was happy in my rented apartment. That turned out to be a great choice, because I now make close to 15 grand a month from it! With the right F.A or by choosing the right things to put your money into, you could grow your wealth to the point where you could afford a "better" house while ensuring your financial security in a short time, with or without a housing crash. Goodluck
nice... this makes a lot of sense... been considering going into this stock thing for some time now. heard its a nice way to make money bts... how can I get a nice f.a? and how expensive are they?...
Well, you should start by looking out for those from credible firms and good track records. Also, make sure the person is licensed. Personally, I use Michael, Allen Eckrich. He's good and you could also look him up too. And they're usually way cheaper than you would expect.
It's a small world! I recently met him at a conference my office organized just a few weeks ago. What are the odds I'd be scrolling through an unusual post for me and come across this thread? Really small world!
That is why you only buy 1/2 of what they tell you you can afford.
Exactly. That's what I did.
So basically nothing.
Yeah but good luck getting anything decent at half of today’s prices. 😂
Don't listen to folks who make money on you buying a home telling you what you can hypothetically afford.
I remember when we looked at getting financed back in the day, 25+ years ago, for a house. They said we could afford $150-$170.000 based on our income, NOT expenses, for a house. We laughed! There's NO WAY! We bought an older home for $79,000, and it was tight with a growing family. We did a lot of fixing it up over years and made it ours.
We sold and downsized. I just discovered someone bought it recently (as it had several different owners since we had it) and flipped it, now their asking $325.000!
We bought in 2012 the house we're in now for less than $63,000(base) total $90,000 including the cost of updating the kitchen, bath, electrical & refinishing the floors. We did the work. It's a small 2 story, 3 bdrm, nothing fancy, over 100 years old. It's now valued close to $200,000! Like, WTF?
How do our adult kids afford a decent place? Rents are over $1200.00 a month for a small 1 bedroom! Everything went up in price so fast that it's practically impossible to buy a starter or an old house without 2 full-time incomes and no kids and a strict budget.
If you have student loans, a kid or 2, well now, it's even harder to get a place, let alone something affordable.
Prices were more reasonable back then. However, the financial systems in place were destroying people's lives and futures with the belief of too big to fail. Then 2008 happened, remember BLACK FRIDAY. Millions of people lost everything overnight. It's not easy at any time, but the young adults right now are mostly kept out by the system. It's ridiculous and wrong!
Why does no one ever talk about interest? A 500k house at 7% interest is 1.2 million, now add closing fees, insurance, hoa, and maintenance on top of that.
@@Dxeus not everyone can afford a 500k home at current interest rates. Makes sense for many to rent, buy cheaper, or wait it out!
Because low interest rates is what got us in this mess. Interest rates need to go to like 10% to break sellers.
@@shnuggumzWaiting is a fools game. Prices are permanently high.
My brother showed me an article that said home owners on average lose money because of those items. Many people forget those when factoring in if they made money on the home or not.
@@rathelmmc3194That would be great. 10% + would help control inflation also. 👍👍👍
It just stinks because I’ve worked for 13 years and built a nest egg for what? Nothing. I wanted to own a home, that was it. I want to be able to do normal stuff that a 35 year old does, have a garage or workshop to work on stuff. Or even have a project car.
Everyone is like, oh just rent an apartment and be happy.
Excuse me, but you probably don’t realize it since you’re all spoiled with your fancy 3/2 2 car garage and yard homes you own but an apartment offers NOTHING that I’m looking for.
But everyone says it’s the strawberry picking immigrants who are buying houses. No its people hoarding houses and turning housing into a profit margin. Those people are telling you it’s an immigrants fault. I never got outbid by a guy from Guatemala.
@@bobroberts2217 ya know the rule trump has about regs, to pass a new one you have to get rid of 10 old ones, he should make a rule that in order to buy a house, you must first sell a house. that would stop the nonsense.
Build a house with an attached ADU to it. That's what we are going to do.
@ hopefully have a lot of money in this day and age. I assume you are selling an existing home?
@@coled5090 we are renters. But I told my wife that with only my salary we cannot afford a house unless we have an ADU built into the plan. Gives me peace of mind that we will have some income built into our mortgage.
Paying 1850$ per year in Insurance just to never get a claim is ridiculous!
That is really low here in Florida. I am paying $4200 on a 2/2 which I bought for 380k a few years ago in Clearwater.
Well it is ridiculous but it will escalate to obscene should you ever try to use that homeowners insurance for a claim.
Deny, Defend, Depose
I was paying 1.4k 4 yrs ago now I'm paying 2.8k. Doubled in 4 yrs.
Anyone who has no mortgage considering self insuring?
To your point Michael, we moved 60 days after closing on a house in a different State. I received a $260.00 water Bill for the new house. 0 Usage All Fees.
@@CelNav-t9i sue ! If didn't have ownership, you can fight the bill !!! Proof is the date of ownership !!
All these issues stem from an economy grappling with uncertainties, including housing problems, foreclosures, global fluctuations, and the aftermath of the pandemic, leading to instability. Rising inflation, sluggish growth, and trade disruptions demand urgent attention from all sectors to restore stability and stimulate growth.
In retirement, safeguarding your wealth against inflation is essential. Consider options like TIPS (Treasury Inflation-Protected Securities), commodities, or foreign currencies to hedge against a weakening dollar. Diversifying your portfolio with global real estate, international bonds, or high-quality foreign stocks can provide additional protection and growth opportunities in an inflationary environment.
With my demanding job, I lack time for investment analysis. For seven years, a fiduciary has managed my portfolio, adapting to market conditions, enabling successful navigation and informed decisions.
Consider a similar approach.
This sounds promising! Do you have any professionals or advisors you could recommend? I really need help with proper portfolio allocation.
Certainly, there are a handful of experts in the field.
I've experimented with a few over the past years, but I've stuck with Jennafer Beaver Turner for about five years now, and her performance has been consistently impressive. She's quite known in her field, look-her up.
I just copied and pasted Jennafer’s whole name into my browser, and her website appeared right away. You've saved me several hours of arduous research, therefore I appreciate it.
It sucks when someone is trying to save and the price keeps going up so fast.
i made the exact rookie mistake you mentioned in regards to my expecting my house tax would stay the same as the previous owner. Within a year of me buying, it literally tripled on me. I paid for audit again and appealed because the comparable don’t exist for old house surrounded by almost mil dollar homes. The y reduced it to Double instead of triple. ugh. still crazy.
the property scam interview by the Denton texas guy shed so much light as to how municipalities are stealing from us by this property hikes.
Real estate mindset, yes, he does a great job explaining all the fraud
Real estate mindset, yes, he does a great job explaining all the fraud
My old house that I just sold, the water bill had 'tree management' fees for the programs to maintain all the trees in the county. Not because it is related to water usage but just its an easier way to put extra fees on the water bill than the property tax bill. It is crazy..
Soon we will have homeless people with a million dollars in the bank who can't afford a place to live.
They are just sucking the money out of us and you’re lucky enough if your house survives them dropping a fire or a flood on you so that you lose that house.
@BillySBC doesn't make sense buy it flat out 😂
Only fools were fooled thinking home don't have ongoing repair issues. When they were living with mommy and daddy, they didn't notice repairs being done on the family's home.
A lot of times, repairs were not being done at mommy and daddy's house, which is why many homes are in disrepair these days.
@@Mytriumph650pre-unit homeowners pay for repairs as they are needed along with the preventative maintenance. Renters are paying for maintenance before and after they are needed. Renters also paid for other renters who didn’t pay as they were used to supplement others.
@@Francisco-po1cf exactly. No landlord operates at a loss. Those repairs are all factored into the rent. As if the cost of insurance, landscaping, security, etc.
A house isn't the best investment, considering the state of the economy right now. After selling my Boca Grande house, I want to put $200K into stocks because they can still increase in value during difficult times. Do you have any great ideas for stocks?
The truth is that if you make the right picks, you could make killer riches very quickly, although such profit usually needs expertise, as in hedge funds or financial managers. I personally prefer the latter.
Agreed, I've always delegated my excesses to an advisor, since suffering major portfolio loss early 2020, amid covid outbreak. I'm now semi-retired and only work 7.5 hours a week, with barely 25% short of my $1m retirement goal after subsequent investments to date.
That's impressive! I could really use the expertise of this manager for my dwindling portfolio. Who’s the professional guiding you?
My CFA, Carol Vivian Constable, is a renowned figure in her field. I recommend researching her name online; you’ll find all her credentials and everything you need to work with a reliable professional. With many years of experience, she is a valuable resource for anyone looking to navigate the financial market.
I just looked her up on the web and I would say she really has an impressive background in investing. I will write her an email shortly.
I watch you everyday. I'm amazed that you're able to speak to something for the duration without ever being redundant. Housing fascinates me. I wanted to become a realtor once many years ago. Competition was, and remains fierce.
Michael is like a brother you never had. I enjoy your content, and you seem honest and want to educate people.
It's going to be fascinating watching this play out. Costs need to literally be cut in half otherwise there is literally no future for the people.
Half? Try 90 percent.
Psst! There's no future for the people in America. BUT... a US Passport is still just $165 bucks.
Literally.
As much money as the FED just printed, prices aren't coming down! If they continue printing, prices will keep going up.
@@francismarion6400this is exactly what people are failing to understand. The printing of money is still happening. The value of the dollar is decreasing every month. Prices will never drop like people want them to while this is happening
The weather in this video is like the best day of summer where I live.
Mr. Bordenaro, thank you so much for speaking up.
Asking a real estate agent whether you should buy a home right now is like to asking an alcoholic whether they think you should have a drink lol. Homes in my neighbourhood that cost around $450k in sales in 2019 are now going for $800 to $950k. Every seller in my neighbourhood is currently making a $350k profit. Simply unreal. In all honesty, deflation is what we require. The only other option is for many people to go bankrupt, which would also be bad for the economy. That is the only way to return to normal.
Home prices will come down eventually, but for now; its best to offset some of your real estate investments and get into the financial markets or gold. The new mortgage rates are crazy, add to that the recession and the fact that mortgage guidelines are getting more difficult. Home prices will need to fall by a minimum of 40% (more like 50%) before the market normalises. If you are in cross roads or need sincere advise on the best moves to take now its best you seek an independent advisor who knows about the financial markets.
consider moving your money from the housing market to financial markets or gold due to high mortgage rates and tough guidelines. Home prices may need to drop significantly before things stabilize. Seeking advice from a financial advisor who understands the market could be helpful in making the right decisions.
Do you mind sharing info on the adviser who assisted you?
When ‘Melissa Terri Swayne is trading, there's no nonsense and no excuses. She wins the trade and you win. Take the loss, I promise she'll take one with you.
I just looked her up on the internet and found her webpage with her credentials. I wrote her an outlining my financial objectives and planned a call with her.
Government, at all levels, is THE PROBLEM.
Right! Who needs roads? Who needs schools? Who needs any regulation? Let’s have everyone for themselves!
well kinda. Billionaires in government are the problem and in a few weeks... it's gonna get way worse. So why don't you look to vote for someone that isn't in it for the money. maybe look to vote based on actual economic issues not social issues. oh well. maybe next time.
@@skiergalwny You serious?
@@azmike3572 it’s called sarcasm
Is the government wants to Heist homes and do a financial Global collapse they can do it in our sleep yes government is the problem they want all the money in their pockets to taxpayers Dollars and don't want the taxpayers to have a damn thing but struggle struggle struggle it's happened a million times before
Point of reference:
In 2010 I got my first job making $48k/year and bought a house for $159k at 5% down (rolling closing costs into the mortgage) in an area with a 1.25% real estate tax rate and a 4.2% mortgage for a monthly mortgage payment of about $1000/mo.
In 2025, that same position pays $61k/year (27% Increase) and the same house is allegedly worth about $300k which and would cost $2500/mo (150% increase) at today's 7% mortgage rate. These are indisputable facts. The problem is that federal tax laws are written to ENCOURAGE home buying as an investment. If Congress would simply abolish 1031 transactions of residential real estate, eliminate passive loss allowances on rental, levy higher tax rates on residentials owned by corporation, or if municipalities enforced higher real estate tax rates on secondary homes / homes held for rent, then inventory would flood back in to the market. These are just a few things the Government can do to address the housing crisis.
Great point
I am retired and live in Iowa. The state gave any homeowner 65 or older an extra exemption on property taxes along with the standard homestead credit. My taxes dropped from $1718 to $1542 a year.
Micheal you are doing the "lord's work" in this video presentation. Keep up the great work. 👍🏾👍🏾✅✅
Owning house 🏠 in America is nightmare slave entrapment
Your talent really stands out in every video. Awesome job!
Not really. He's kind of ignorant.
@@mattolivier1835 you wouldn’t want to be stuck with him at a party 🥳!
Except for he would pay 4000 dollars for a water heater.
Thanks Bot !
Hi Michael, thanks for your insightful videos, I own old house but the secret is having a family member who great with repairs on all kind of things my brother stay with me he used to be house repair handy man for 20 years then he quit but he roof my house for $1,250.00 in 2019
he fix the toilet bow, change things out fix plumbing and he does all type of things so it save me money plus no waiting so it all depends on each person situation. I would had to sell my house if it was not for my brother knowing how to do all these house maintains. I pay little for property tax and my bills are about $400.00 per month. I could not rent for that low amount.
Hi Mike, I’ve been watching your videos for over a year now. All your videos are awesome but this one is the best, great job.
I WAS a homeowner years ago until my job got offshored! I lightened my load then, and I'm glad I _STILL_ live minimalist now!
Instead of harassing combustion car drivers, Combusting-California can now deal with important things instead of terrorizing people with emission laws!
First thing I did when I got my property was sort the roof and cap the chimney pots x 5. There was a bit of damage so it was important to get this done and has made a massive difference in terms of aiding the bad weather and stopping any internal issues in the UK. Great video.
This is such a coincidence that you posted this video while I'm reading a revised loan offer from a loan officer. She increased the monthly payments by over $150 and tripled the amount of cash at hand to close, basically putting us out of the range to be able to close. I had to tell my wife to stop selling our items because at this point the dream of owning a house is going out the window.
It honestly feels like I'm being fleeced since they just keep asking for more paperwork, and more proof, and then add more expenses.
Can prob argue most of these expenses. Down or out of the contract.
Tell em fine someone else gets the commission on this deal. 🎉😂❤
Sounds like they scamming you, get a different loan officer....
fear a housing crash due to people buying homes above asking prices with little equity. If prices drop, affordability and potential foreclosures may arise, worsened by future layoffs and rising living costs. I want to invest more than $300k, but I'm not sure on how to mitigate risk.
Got it! Buying stocks during a recession when prices are down could be a good move. You might get them at a lower price and sell later when they go up. Just do your homework and be aware of the risks before diving in!
That's awesome! Investing in stocks with a reliable trading system can lead to great outcomes. It's fantastic that you've been working with a financial advisor for a year now. Starting with less than $200K and being just $19,000 away from making half a million in profit is impressive! Keep up the good work!
Mind if I ask you to recommend this particular coach you using their service?
When ‘Melissa Terri Swayne is trading, there's no nonsense and no excuses. She wins the trade and you win. Take the loss, I promise she'll take one with you.
I just looked her up on the internet and found her webpage with her credentials. I wrote her an outlining my financial objectives and planned a call with her.
Finally paid off my house last year after 30 years. Had a great job with a good salary. My taxes are over $5.500 per year, $1,440 for home insurance. Replaced the roof shortly after moving in and just replaced it last year at $15,000. Also, encountered a sewer line repair in October at $5,000! Just because you can buy a home does not mean you can afford it. Especially to keep up with maintenance and repairs.
Yes, is great to build equity as I purchased it for $136,000 and it is worth over $330,000. I plowed much of my income into renovations! That was years ago…
I feel bad for those who want the American dream and cannot seem to obtaining it. Unless you can put 20% down and still have money for repairs, I would think long and hard about home ownership.
Depends on your income and net worth,, Lassie. $15K for a new roof is a pain, but completely reasonable. $5K for a sewer line repair is nothing. These are basic things. Anyone who can't pay these should not buy a house at all. It's not an apartment. It's real responsibility.
Now add up all the property tax you paid in all the years you owned the property and deduct that as well as all the other expenses associated with the property over that length of time and tell me if you made money or you lost money... THE ONLY GUY WHO WINS IS THE TAX GUY AND THE INSURANCE GUY.
Drop your insurance now that your home is paid off.
@@DIVISIONINCISION I never said I couldn’t pay for it and my net worth is more than substantial to weather any repair or maintenance! I just was pointing out the costs that a new homeowner may not think about. What you think is nothing in cost may not be for someone else. Just sayin…
@@BillySBC Your point is well taken! In the 30 years of residence here I have upgraded to make the house my home! Indeed, adding it up over the years cost quite a bit. Yet, I am glad I did most of the renovations years ago as at todays cost it would be substantially higher.
A tile roof requires stronger framing and has to be engineered to handle that extra load.
Facts.
You are amazing …. I have watched you almost every day since you began TH-cam … thanks Michael …. I think of you as a friend ( I never met ) a guiding light of reason … and even like an older brother even though you are younger!
Here in the midwest it's nice and cheap on all of these points. Yes, we have winter, but we have a house in a desirable city, insurance is cheap, electricity is cheap, taxes are cheap. Life is good
Where exactly are you?
Michael you should make a video on assumable mortgages.
When interest rates hit 12-18% in the 70’s homeowners were advertising their 5-7% interest rate on their homes, I’ve bought several homes subject to the existing mortgage.
Better to find a seller with low equity and grab their 2-4% interest rate instead of 7-8%.
(Propstream)
Good luck. I had an assumable mortgage back in the 90's and had willing buyers ready to take it over. The issue was that the mortgage company would never approve the new debt holders despite having fully qualified. Mortgage companies will use this as a way to get out of the low interest mortgage.
@ as long as the mortgage is getting paid, that’s what a 3rd party loan servicer is for.
More than 80% of newly-built single-family homes sold in 2019/2022 belonged to an HOA. during the 2004 housing boom-home prices were significantly inflated, leaving people unable to sell later because they owed more on the house than it was worth. I know several people who bought during that time, thinking it was a good investment, but it wasn’t until the COVID housing boom that prices finally returned to those original levels.
To balance out your real estate holdings, I suggest investing in equities. If you're cautious, even the worst recessions can present fantastic buying opportunities. Additionally, volatility can produce fantastic short-term purchase and sell opportunities. This is not financial advise, but you should buy immediately away because money isn't king right now!
A lot of folks downplay the role of advisors until being burnt by their own emotions. I remember couple summers back, after my lengthy divorce, I needed a good boost to help my business stay afloat, hence I researched for licensed advisors and came across someone of utmost qualifications. She's helped grow my reserve notwithstanding inflation, from $275k to $850K
This is definitely considerable! think you could suggest any professional/advisors i can get on the phone with? i'm in dire need of proper portfolio allocation
Certainly, there are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with Stacy Lynn Staples for about five years now, and her performance has been consistently impressive.She’s quite known in her field, look-her up.
Thank you for this tip. It was easy to find your coach on the web. Did my due diligence on her before scheduling a phone call with her. She seems proficient considering her resume.
A friend of mine father worked at a major insurance compamy here in the midwest, and years ago he said that insurance companies would have plenty enuff funds to pay out claims, but because they invested those premiums in the stock market, and don't always get the returns they would like.
Its simular to what the federal government does with FEMA funds. Spending it on their pet projects, instead of those that really need it in timrs of disasters, like those in North Carolina, eastern Tennesy, or Palistine,Oh.!
I bought my home in 2015 and it has increased about 50-60% in value. I've gotten pay raises over the years and do pretty well overall. I was curious based on the home's current worth, current mortgage rates and my current income, whether I could still afford my place today if I were buying it as a new home buyer. To be honest, I couldn't. The mortgage would cost me an extra $3,000 per month and I don't just have $36,000 in income that I could draw upon. Plus, property taxes, HOA fees, upkeep costs have all increased. So, I am lucky I got in when I did.
Had my 31 year old HVAC unit replaced in 2000 - $6500. 2003 Had my roof replaced - $12800, replacing the first roof I paid $4000 dollars for ( with gutters ) 28 years ago. Wrote a check for both. And that's for a 1,200 Sq. Ft. home with basement. I just live happily below my means. The piece of mind is well worth it!
As a formerly homeless person, I do the same! I have zero c/c debt ( excluding the home) my monthly income is aprox. 2800.00 a month. The monthly is 1350.00 a month ( 2/1 for 160) the utilities are aprox. 220.00 a month.I do not have an perpetual, ongoing auto expense. I do have a " house fund"( or nest egg) I have no HOA fee. I have no major health issues, and am prabably healthy enough to work well into my 70s ( barring the unexpected) so, Im actually ok, due to keeping things within my means.
Yup that’s how you do it.
Hello Michael, like always I enjoy your videos 😅😅 I love it. You tell it like it is love it. and you are so correct about the home prices let them come back down if people stop by and they will come down. They went up way too fast within a couple years. The house is only supposed to go up 3% a year these houses were going up 20% a year until they got outrageously high but people were buying them, but people are losing them too. I’m not gonna buy something that I know I’m gonna lose just to say I have a house oh hell no that ain’t happening.
Thank you to our host for this walk around outdoor segment. Very important topic. Been there, done that, got the T-shirt
Greetings From Texas - big storm coming in. Praying for everyone. Be safe.❤
Central Texas here. We'll get rain on Thursday, but no snow/ice.
Everything is bigger in Texas.
They keep revising down the severity of the Texas storm for which I am happy. I'm ready to stay home though for the time the roads are bad.
a home is home is a home! not an investment anymore. the times they are a changing
Metal roof is basically double. They are nice and last longer but when you are doing other stuff it's not always at the top of your list. The water heater was $1k last Feb and that was with my husband picking it up and installing it himself. We also live on a private road, so we've been trying to get quotes for a new road and driveway. I'm expecting something around$10k. There's a lot to consider when looking at any property.
Even if you do, get ready for your money to be taken in property taxes and homeowners insurance increases
Got me thinking bail. A few ways around it tho.
Never mind being burnt out !!!
Land grabbing amping up.
Don't forget HOA fees and general expenses for LIFE!
No problem.
Can we please exempt property owners who are 65+ years old from property taxes?. What a tyrannical tax this is. I've owned my home for 32 years. Enough is enough already. 🙏🇺🇸✌️😎
You and your friends need to write to your state legislature representatives. While you’re at it, write up a Bill for the legislative House to preview, tweak, put to vote.
Stop complaining on TH-cam and take action.
No elder exemptions, baby Crowne. Everyone pays their own way! ☺
Here in New York State the government won't even exempt 100% Disabled Veterans from their property tax, you think they're gonna have mercy on somebody just because they reach 65 years old? THE MAN WANTS HIS MONEY!
30 year olds and below are the ones who should be exempt to property taxes not you old folks who lived easily and had plenty of times to have millions by now
@@DIVISIONINCISIONthey already have that’s the point. A lot of retirees are on a fixed income. Take that “ok boomer” hatred somewhere else.
It's a good thing you can't afford to buy a house, because now you also can't be overcharged for a house, you can't be over-taxed for a house, you can't be price-gouged by homeowners insurance companies for a house, and you can't be on the hook for remodeling and constructions costs because of a house. In reality, you're so much better off because you can't buy a house.
Gouged?
@@francismarion6400 You don't feel insurance companies gouge people? Somebody better tell Luigi...
Owning a house is increasingly becoming a liability.
Getting outta Dodge was a great move. Healthcare at $42/month, no heating or cooling bills at 3400 ft elevation in the tropics, $300 annual property tax on a 2000 sq ft house. Time for another cerveza. Pura vida, amigos.
I bought a new house in 1985, replaced the water heater for 400 dollars, that was my only maintenance on the house . Sold in 2000 for double what I paid. 15 years ---400 dollars.
Good job, Michael! Very knowledgeable.
So true. Insurances, maintenance, rates will keep going up and up.
My property tax decreased by $125.00 this year, whilst “value” increased. The taxing authority changed the tax formula to make it more equitable. Still high, though.
I’m at $1542 monthly including taxes insurance and interest. Bought in 2020 for $245k. My homeowners insurance will go up in November to $4900 and I’m hating that but even then the increase will still only increase the mortgage by $100 for me. I feel like one of the lucky ones.
Oh, you're lucky. You're real lucky. Some of these people will see their mortgage almost double like people in 2008 did.
Sounds like you bought a very modest house. Nothing for that price exists where I live
@@Just_a_good_old_boy yes lol I bought a 2/1 small bungalow in the ghetto of Miami. It’s cleaning up but still ghetto. It was the max end of my price range. I was approved up to $250k with 5% down conventional.
@@Just_a_good_old_boy The fact that a $245k house is called 'modest' by anyone is a sign of how we got where we are. A $245k house represents a single income of $122k per year, and you're in the top 20% if you make more than $100k per year, indicating that the view of wealth is so twisted in this country that someone in the top 1/5th is considered 'modest'. This type of viewpoint is insanity by any reasonable measure. It's like saying a competitive athlete who is in the top 20% of the world in their field is only 'modest'.
@jeremiahdonaldson1678 a modest shoebox in my area is around 400K. There is absolutely nothing in the 200k range any longer. I'm in a small town in Oregon
Thank you for your reply mate, but believe it or not turn out the firefighter appointment 15 years a nurse for about 20 I make as much as a nurse practitioner North Carolina. That’s why I did not go back to school to get my BSN because he BSN means zero money Nursing
I had expenses hit me all at once right after Xmas, hot water heater, leaking kitchen faucet and valve in bathtub, now have to replace flushing system in toilet. My house is older but never expected things to go wrong all at once Talk about "Murphy's Law ..lol! Some of these things aren't not that expensive save for water heater. I've been tempted to sell the house cash out equity and rent . On top of everything, check engine light is on in my truck. Although it's running fine still alarming to see it now have to have that diagnosed.
People who are thinking of buying a house please listen to Mike. New houses have problems too!
Michael, I would even go farther on the 1% to 1.5%. And the impact isn't clear until you break it down into a monthly payment, $300 a month on a $300,000 house. In my house, which is now 25 years old I just replaced my roof at $25,000 and my windows at $24,000. Over the last three years I replaced one AC/furnace each year for a total of about $20,000. And we need carpets and countertops which we will replace right before we sell in a few years. Yea, 1.5% is more like it.
I’ll raise your 1.5% to between 2%-3% (on an average, annualized basis). I.e., for every $100,000 a home is worth, people should expect to spend $2-$3k/year on maintenance and repairs. The reason why is exactly what you said: those large expenses like a new roof massively increase that average over longer periods of time.
@ and size of the house plays a part too. I have 37 windows and a large, complicated roof not to mention 3 AC/ furnace units and two water heaters. It adds up. 1.5% would cover me. But a larger house in a more affordable area may require more.
My ex husband was always pushing to buy a house. The last thing l
wanted was to be physically and financially tied down to a house.
I told him..”Maybe we can afford to BUY a house but we can’t afford to OWN one.” I never regretted not giving in, especially since not having a house together made our divorce cheap and easy .
Ironically my ex husband inherited his father’s house and decided to sell it after finding out it needed a new roof and furnace.
Smart, I respect your decisions!
I had to buy 10 gallons of interior wall paint today for the condo I work at. It cost almost $750, Benjamin Moore. There was about 8 eager employees in the empty store waiting for me. I haven't checked HD lately but that is outrageous.
10 gallons of behr premium exterior semigloss H. D. which is better paint by the way is $520 and I don’t use anything else inside my rental properties ever people are just plain filthy and trash your house and FUC everything up beyond repair in most cases.
Lol I pay like 30 bucks/gl for that crappy speedwall stuff at Walmart. It's white, it's cheap, and covers well enough for most living spaces. I always get nicer paint for the bathroom and kitchen for cleanability.
AND the $3800 a month that you are spending is POST TAX which means you have to earn approximately $5500 a month to net $3800/month which means that you have to earn $66,000 just for your house and some people say that your home should only be 25% of your income so you need to earn $264,000 to afford it!
All those numbers check out.
Buying property is a commitment!! You absolutely have to give up things to acquire your wealth. Sometimes it's temporary and sometimes it's permanent!! Wealth is just not a given ! Changing lifestyle is sometimes the key to your success !!
Exactly. Definitely need to make some sacrifices.
I left Fl 13 years ago and never looked back at my 590 square apartment, which was 900, and is now 1-8-25 1800.
You are good I watch all the time 👍🏽
Add extra weight to roof tile can framing hold extra weight
Great video Michael! Owning a house is a huge debt machine especially considering the price being paid for what would have been a fixer upper 4 years ago. The media and real estate industry salespeople only want to talk about the interest rates. I’m watching prices begin to fall in Pinellas County and Tampa Bay metro area. As a broker I rent and caution people on buying in the current market. Most don’t have a 20% down payment. Uuuugh!! Prices need to crash bed the numbers make sense
Check back in 5 years in Tampa Bay.
Prices may double.
This is outstanding! You never fail to impress.
Here is a solid tip on paying down your mortgage, especially in the first years. Get yourself an amortization table of your mortgage and note the principal and interest amounts. What I did was to add just the principal amount to each monthly payment. As it worked out I paid the mortgage off 5 years ahead of the amortization schedule, that's 60 months of payments!
Each payment with the principal of the next month added I figured saved me the interest expense required to get the small principal reduction as allowed by amortization.
Back in the day, when I purchased my first home to live-in; that was Miami in the early 1990s, first mortgages with rates of 8 to 9% and 9% to 10% were typical. People will have to accept the possibility that we won't ever return to 3%. If sellers must sell, home prices will have to decline, and lower evaluations will follow. Pretty sure I'm not alone in my chain of thoughts.
If anything, it'll get worse. Very soon, affordable housing will no longer be affordable. So anything anyone wants to do, I will advise they do it now because the prices today will look like dips tomorrow. Until the Fed clamps down even further, I think we're going to see hysteria due to rampant inflation. You can't halfway rip the band-aid off.
consider moving your money from the housing market to financial markets or gold due to high mortgage rates and tough guidelines. Home prices may need to drop significantly before things stabilize. Seeking advice from a financial advisor who understands the market could be helpful in making the right decisions.
I will be happy getting assistance and glad to get the help of one, but just how can one spot a reputable one?
Certainly, there are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with Jessica Dawn Walters for about five years now, and her performance has been consistently impressive.She’s quite known in her field, look-her up.
She appears to be well-educated and well-read. I ran a Google search for her name and came across her website; thank you for sharing.
I'm glad I live where I'm not anywhere close to all those fees.
YET!
What state I want to help duck your life up .. we all are moving there
Most people I work with in their 40s keep talking about paying off their mortgages and buying a second home in GA, VA, etc.
I am envious of their position. I’ve saved up 13 years and am nowhere close to buying.
Most of my friends bought before 2020 and two gave two homes and rent one out.
Everyone is so rich nowadays but it sure skipped me.
Thanks to your channel, I am probably the best-informed European on the American situation, great job, thank you.
Your property tax over there in the US is wild. What sort of freedom is that!
I’m paying 5800 a year in insurance for 2/1 home with no flood insurance required/associated to the policy. This is up from 1200 a year when I bought the house. At this rate I’ll be forced out.
These are the new prices.
And never ever tell your agent when buying a house how much money you have allocated on top of the down payment. Some agent will have you bid on a house you like way higher knowing you have this extra money. Their commission is based off a fixed percentage of the sale price. It's to the interest of both buyer and seller agents to have the house sold at the highest they can get.
The quality has been deprived ever since the time you work for house,family,etc.
That is life
Houses and lots around here just had an new year presents today, my evaluation got boosted by 40k ...so nice of them. Of course property taxes got upped also..
A significant portion of the economy has had trouble affording food.
Arguably one of the biggest reasons behind the electoral avalanche.
If people, en masse, are having trouble affording food, is there any question of why the real estate market it in trouble?
In a time where the average person cannot handle a $500 emergency, the market for homes is on the far back burner for the majority.
They've spent the last few years starving the little fish and are wondering why there's no food for the big fish anymore..
Being a "forever renter" is a recipe to never retire. To retire you must get out from rent/mortgage. The economy is such that you need to have bought your house 30 years ago and pay off the mortgage. The devil in the details of things like the property tax, homeowner insurance, utilities, etc. The obvious thing is that as of now is you are supposed to get rich or be doomed to work until you die in the street of an expensive disease. Such is the United States.
Owned two personal residences over a 45-year period, our total cost for maintenance (new roof, appliances, painting exterior twice, landscape service) was about $50 a month average. The spoke in the wheel today is property tax and home insurance. Two serious unknowns in a high inflationary period.
I agree 500 a month maintenance is ridiculous unless that includes the landscaper and fresh flowers planted monthly.
I honestly felt I got lucky selling my condo in Oceanside CA, I almost pulled the listing after it sat on the market for 1 day under 60 days. I was 5 min from the beach, great location and under 1 million. I have no plans on buying anything soon.
I'm not sure that was a good idea unless you plan on leaving the San Diego area. Prop 13 prevents your real estate taxes from going up more that 2% a year. Now if you decide to buy another home in San Diego your property taxes are going to be higher. If you decide to rent instead you are going to be paying for the landlords mortgage, HOI, HOA, taxes. Your rent will go up to cover those. Apple is bringing 1000s of employees with high salaries into the area. That is going to put more upward pressure on the housing prices.
@@econ0003 Yes we left San Diego, are headed to Colombia to live. Parked the cash and will wait for the melt down then revisit but not in California.
Metal roofs sound good on paper, but most insurance don’t give discount anymore cause they can get dented by hail or falling objects. Then it has to be repaired and costs a lot more to fix. Than asphalt shingle roof . So a lot of companies don’t do it anymore .
Many insurance brokers I have talked to don’t care if you have a metal roof. They care it’s installed properly and will not fly off during a hurricane. It’s similar to regular shingles vs architectural shingles: one is cheaper; but, the other will last longer. Both fulfill the same function.
My advice to my kids for their 1st home buy was to buy New if possible, usually 1 year warranty, since everything is new hopefully any repairs will be years away, in DFW area builders are motivated to move properties
Average s .. get away from high cost areas .. deal with some snow seasonal changes . Imagine owning a home and your taxes and insurance is under 250 bucks a month ! And own acres!
water heaters cost $400 last i looked, maybe $600 now and i would charge $300 to install, a 2 hour job. need to get real people..
Performance 29 Gal. Tall 32,000 BTU Natural Gas Water Heater with 6-Year Warranty...$519 home depot
I'm glad someone else mentioned this. Granted it depends on the water heater type, location, and if you need to redo any plumbing that handy Andy did. Also i hate people that plumb in a water heater with copper soldered directly to the female adapter. Flex connectors make replacement an hour job...rant over. I'd do nothing but water heaters if I was getting what he said per job.
@@Mrsmith971 i always use a dielectric union to connect. i never seen any other plumber doing this, even ''pros'' who charge $2500 for the whole job. i will check about flex connectors if it makes the job quicker.
Michael been watching the last 60 days at least. Good job.
I very much doubt home insurance companies have claims from even 1% of their customers in Florida, and yet, they have more than doubled their fees to 100% of their customers. What a bunch of racketeers.
Insurers have paid out well over $50,000,000,000 just in Florida in the last few years. In addition, while Florida accounts for only 9% of the nation’s homeowners claims, it accounts for 79% of homeowners insurance lawsuits. It’s not a racket: Florida is just a MASSIVELY expensive place for them to do business. Which is exactly why so many of them are leaving Florida (which further contributes to higher costs for homeowners).
Insurance in Florida is a scam. I have had damage from 3 named storms, and filed claims after each. Every single time they deny, different reasons. My favorite reason, was this was not damage from the storm, it's a manufacturing defect with the roof. Our risk wind model shows the wind was not strong enough to rip your roof off. Once I pay off my mortgage I'm not insuring the home anymore, they don't live up to what they agree to cover.
I've been doing insurance inspections in South FL, Miami-Dade, Broward and Palm Beach Co. and regardless of what type of roof you have, if it is more than 20 years old, they want a new roof or they will not insure your house.
My mom put a metal roof on her house and her insurance premium dropped in half. Enjoy your channel Michael.
Must be nice. My metal roof didn't effect anything on my insurance.
@ Agent looked for company with largest discount for new metal roof.
Would love to see some videos on how the CA fires could affect the housing market both in CA and as people possibly move out.
Great info!
Wish they would build smaller homes for people. You just don’t need a lot to be happy. My husband and I downsized 8 years ago and have never been happier. You just don’t see smaller homes like you do those big cookie cutter ones
We have moved many times, the initial purchase fees always hurt. However, we always seem to spend a lot of money at the hardware store on small jobs for the first six months of ownership.
That number for home maintaince at 1% of homes value does work. I looked at last three years on my place. Plus, I've done a couple of larger expenses. Roofing will not come close.
Hey Michael, could you do a video on a first time home buyers program and how that works in the Florida area. Thanks.
I bet most of everyone is force I'm one of those people and the ones that can don't want.👍🙏🏼🙏🏼🙏🏼🙏🏼🙏🏼🙏🏼
Regarding finding home owners insurance. I had a house listed. The buyers checked previous insurance clames by the owner. And although they were major, I think there were 2, they backed out of the deal because they were told that they my not be able to get insurance or it would be astronomically high. The home was in perfect condition. Even their inspector said so...
Michael these homes in some areas like New England are at the end of their life spans, or you have to put 100k into repairs. Then you go to the South/Southeast where they won't stop building, ans these homes are being put together with cardboard and are ugly cookie cutter, box shaped homes. You're either overpaying for a aged home or a poorly constructed home. Getting hit from every angle, on top of unaffordable housing. Insurance and property taxes are the final nail in the coffin!
Throw in the HOAs with these new communities in Southeast/South.