My favorite oxymoron is "Microsoft Works" (But yeh the word you were looking for is "paradox" - just at the start of you show now - looking fwd to the rest) 😃
I’m closing in on retirement and I'd love to move from Minnesota to a warmer climate, but home prices seems ridiculous today, do I go ahead with buying a house anyways, or look at other sectors of the market?
I agree, amid covid-19 outbreak, I simply adopted the service of a certified financial planner instead of panicking and thankfully, I'm just about 10% shy of a 7 figure portfolio after 100s of thousands invested so far, marking my highest financial milestone.
I've worked in real estate for 25 years and have neglected a major stock portfolio. This served me well when I was flipping and renting houses, however I need a different plan now.. Mind if I look up the professional guiding you please?
I've shuffled through a few advisors in the past, but settled with Karen Lynne Chess. You'd most likely find her basic info on the internet, she's well established with over two decades of experience.
excellent share, curiously inputted Karen Lynne Chess on the web, spotted her consulting page ranked top and was able to schedule a call session. Ive seen commentaries about advisors but not one looks this phenomenal
Thanks Danielle for speaking truth to the affordability BS. Nothing the government is hand wringing about has much plausibility. From foreign policy to healthcare, housing is no different. Your comments on capital gains taxes are spot on. You can add the increase in property taxes to the list too.😊
Sorry to break it to you, but supply has NO meaning without demand. Today's "low" supply was a normal supply before we let 10 million new people into the country over the last 4 years, without planning for it (or vetting them, which is why violent crime went way up).
as a builder when it cost me 400K to deliver an affordable home it’s just not a good investment. The juice is not worth the squeeze Supply isn’t the issue it’s affordability.
This is the biggest question. How do we lower the cost to build? When institutions are building absolute crap homes and they are still expensive because the cost of materials and labor are way up and not coming down ... EVER
The investment value of real estate is supposed to be in the ability to pay it off before retiring. Housing is usually a persons biggest expense. If they pay that off before retiring, then retirement shouldn’t be as expensive. All of the investing and prospecting is driving the cost so high people can’t retire. They can’t get ahead of costs with their investments.
Good luck 🍀 There are over 100k people in ILlnois collecting 6 figure public pension fund golden years retirement package - Expect higher taxes to support these insolvent government pension funds
I Love it, a Real School Teacher Learning and Teaching Actual Financial Literacy, Realestate & Advanced Capitalism. Beautifully. Brightens my day everytime!
A housie does not have to grow in real value for it to be an investment. Rent goes up every year, your principal and interest stay the same and eventually end. In many states, taxes are limited in how fast they can grow. If you stay in a house long term, your cost of living will go down vs renting, most years. Then when it's paid off, your cost of living falls sharply.
In my area low income housing is needed, but many developers like yourself are building luxury apartments or luxury homes which does nothing for the buyer who needs a home.
That is correct. The numbers don't work for affordabel housing. That is part of the problem. Land costs, labor and supplies make it a negative venture.
I feel this, as a cabinetmaker, I make a decent living on luxuriius interiors yet. Its not enough to afford to purchase a home of my own, as there is simply no options for lower income homeowners.
It could very well be that people who buy a house today will have to wait 10 years for it to be the same value as what they paid for it. My home that I bought in 2003 didn't reach the same value again until 2020. That is nominal value. Inflation adjusted my home is worth less today than in 2003, even with these crazy prices.
Inflation, as the cost of building is going up, how you expect price to go down? I know wages doesn't keep up with inflation but those institutions have tons of cheap monies and they will start scoping.
It took me while to realize that owning a car is madness unless you can buy it cash. So I save money by leasing cars I say to people what’s your car payment 600 and up i couldn’t believe.
That Shiller report needs one more overlap. That’s the % of Americans that actually owned a home. Prior to the 1970’s home ownership was about 50% of the population. You see everyone talk about not being able to afford a home now, it’s not even close compared to 1900-1970. You had to have 50% down and got financing for 10 years. And you better know somebody at the bank.
Whatever man. It's not even close to a comparison nowadays. 1970 avarage salary: 9k 1970 average home price: around 20k. A house only costing around 2 times the average salary? Oh they were so dissadvantaged back then! GTFOH
@@cabot100 Yeah he’s mad. Not sure why. Inez just pointing out that the home ownership % was terrible prior to the advent of FHA/VA and other programs that came out in the 70’s. My grandfather might have purchased a home for 30K but he had to put 15K down. This was in 1960. 15K in 1960 in today money is $156,000. It doesn’t even make sense 🤣
40 year loans seems stupid to me. Yeah it might lower your payment by a little bit, but each year of extension on the loan has less of an effect on the monthly payment. The payment will never go lower than the 1st month’s interest obligation. Otherwise the loan will not be amortized.
By that explanation your logic makes no sense. If you have to purchase the home, it makes sense to shop wisely and make a good investment such as with price and location. Whereas since stocks are optional, not buying them makes more sense especially as you have 0% control over the value of the stock. At least with a house you can fix it up and upgrade it.
@@Spry011sort of a financially illiterate answer. The return on stocks is much greater over 30 years than the return on a mortgage. People are better off trying to get the lowest cost shelter and plowing money into stocks - if we are talking getting rich over the medium to long term. The banks are the ones that get rich on your mortgage, not you.
@@coryspence5903 Well of course that would be great, but it ain't happening without massive layoffs or breaks and incentives for companies. Small businesses especially can't just raise wages and survive.
Just because housing prices are increasing does not make it a good investment and the opposite as well. Ever hear of buy low sell high. Just based on an investment perspective your advice is poor. Besides the fact that younger generations cannot afford their first homes. This sounds like elitism. I believe in rational fair markets which this housing and stock market bubble is not. I think we need a healthy solid correction in stocks and real estate to reset to normality. It would cause short term pain but would be healthy long term.
That's a long winded way of saying "wah wah". A return to normalcy? Brother we are in the early days of WWII and there's no way to cleanly reset sovereign debt. Inflation is baked into the cake, invest accordingly.
With the purchasing power of the USD going down and down based on govt overspending then all other assets have to go up, including homes. Just based on wages alone.
Replacement cost will always be a factor in valuation. But RE is a depreciating asset too. The fact that a new 3-series costs $55k has almost no effect on the resale value of 10-year-old examples. If prices get to a point where they're just plain unaffordable for anyone near the median buyer, which they clearly are now, then the market will correct regardless of replacement cost.
Historical real returns on US housing has averaged 1% since 1920. Terrible investment compared with stocks. Housing is a lifestyle, not a good investment.
Most homeowners are intelligent enough to understand the housing market has been in an unsustainable bubble. The unrealistic gains, as you phrase it are unrealized gains unless a person sells. Do you think housing will be more expensive in another five or ten years?
I don't hate Trump, Ken... I will be voting for him in a couple of weeks, along with tens of millions of Americans who have had enough of the party that's only good at one thing: denying reality.
David Greene did a good job of explaining that the illegals in California are actually paying the significant amount of interest on the loan when they sell the house furthermore, the new homeowner assistance program is specifically for low income fires. Prices should not go up for the majority of the homes.
@@zwatwashdc There was a whole lot less housing then. The cost of a house was much more in line with people's incomes. If you took a few minutes to do some research, you might gain some knowledge.
Not only that but if both you and tenant are at end of lease and you want to boot the tenant because you want to fix and flip the unit the tenant always has a Rich Lawyer on speed-dial paid for by STATE OF MASSACHUSETTS So the one foolproof way to oust a relucatant tenant-at-will pull out the long list of Vandalism charges you will initiate against tenant for all 3 times he broke something on the property Walk softly but carry a BIG STICK in Blue States fellow landlords!
It's not about us being saved by Donald Trump. It's that the biden-harris administration has been in power for the last 3.5 years. 1. We still have an open border with millions of illegal immigrants crossing, which keeps wages low and reduces the supply of housing, making it expensive, 2. we are still sending billions of our US dollars to Ukraine and other countries to fight proxy wars instead of investing in our own country and citizens. 3. Inflation and prices are still high. And it's hard for everyday Americans to get by when food, gas, rent, home prices, car prices, interest rates, and everything is expensive. the Harris campaign is making a bunch of promises. Kamala says she wants to "turn the page to a better future." Well, we've been there before, and she's currently in the White house with Joe Biden, and we can see what they have accomplished for the last 3.5 years. Why aren't they keeping good on those promises now? I remember when Donald Trump's administration was in office. interest rates were low, inflation was lower, we had no new wars, we still had illegal immigrants crossing the border, but it was at a much lower rate. Life was easier to get by for the average everyday American under Donald Trump's Administration
Immigration is just one factor in housing costs, but you talk about constantly as if you're experts on immigration itself. You keep dismissing the time element to all of this. When immigration rises and falls matters. Italy and Japan have shrinking and aging populations and few industries that are addressable by immigration....for now.
I love trump like i love gum on the bottom of my shoe. Trump is just a slighly less dirty, slightly less disgusting wod than Harris,Biden. What about Vivek Ramswamey......he would be a great, current-times-knowledge pre 28:22 sident
Home is just a place to live. Hopefully you get it at a good price and it lowers your cost of living over the time you live there. If you think of it as an investment and your ability to retire your lost. They say in this video that unless you got lucky in the market, no the market has always Done well. The market has never lost money. If you lost a lot of money in the market, it’s because you were invested in the wrong things and I say that because you should follow the advice of Dave Ramsey and invest in a mutual fund that is proven itself for the 30 year Track record. All my friends said they made money with their homes and they would move and get a bigger home when I asked them what they paid with their monthly payment was over the amount of time they were there it never panned out. I bought a smaller home paid it off in 15 years and lived here for a long time. Thus I was able to put my income into the stock market where I did well with compound interest and now I’m able to retire.Dave Ramsey don’t listen to any of these clowns on TH-cam
If you appreciate the effort Ken puts into the videos and want to support the channel, please share this video.
thank you
Prices wont drop you just have to invest in turnkey real estate
My favorite oxymoron is "Microsoft Works"
(But yeh the word you were looking for is "paradox" - just at the start of you show now - looking fwd to the rest)
😃
I’m closing in on retirement and I'd love to move from Minnesota to a warmer climate, but home prices seems ridiculous today, do I go ahead with buying a house anyways, or look at other sectors of the market?
diversification is key to good investing, consider talking to an advisor about which sectors of the market to focus your portfolio on
I agree, amid covid-19 outbreak, I simply adopted the service of a certified financial planner instead of panicking and thankfully, I'm just about 10% shy of a 7 figure portfolio after 100s of thousands invested so far, marking my highest financial milestone.
I've worked in real estate for 25 years and have neglected a major stock portfolio. This served me well when I was flipping and renting houses, however I need a different plan now.. Mind if I look up the professional guiding you please?
I've shuffled through a few advisors in the past, but settled with Karen Lynne Chess. You'd most likely find her basic info on the internet, she's well established with over two decades of experience.
excellent share, curiously inputted Karen Lynne Chess on the web, spotted her consulting page ranked top and was able to schedule a call session. Ive seen commentaries about advisors but not one looks this phenomenal
Thanks Danielle for speaking truth to the affordability BS. Nothing the government is hand wringing about has much plausibility. From foreign policy to healthcare, housing is no different. Your comments on capital gains taxes are spot on. You can add the increase in property taxes to the list too.😊
The government owns "your home" don't pay the slave tax and see who owns it real quick. It's gross
Sorry to break it to you, but supply has NO meaning without demand. Today's "low" supply was a normal supply before we let 10 million new people into the country over the last 4 years, without planning for it (or vetting them, which is why violent crime went way up).
as a builder when it cost me 400K to deliver an affordable home it’s just not a good investment. The juice is not worth the squeeze Supply isn’t the issue it’s affordability.
This is the biggest question. How do we lower the cost to build? When institutions are building absolute crap homes and they are still expensive because the cost of materials and labor are way up and not coming down ... EVER
Return on information Thank you! Ken McElroy Thank you!
The investment value of real estate is supposed to be in the ability to pay it off before retiring. Housing is usually a persons biggest expense. If they pay that off before retiring, then retirement shouldn’t be as expensive. All of the investing and prospecting is driving the cost so high people can’t retire. They can’t get ahead of costs with their investments.
Homes were always supposed to be a store of value, NOT an investment vehicle. Unfair monetary and fiscal policy is the only culprit. It’s basic
Seems, Foriegn investors, speculators, and government policy that allow this are the obvious culprit. No?
No, once we own a home we DON'T want it go up. That causes our property taxes to go up too. We just want a home.
Good luck 🍀
There are over 100k people in ILlnois collecting 6 figure public pension fund golden years retirement package -
Expect higher taxes to support these insolvent government pension funds
@@robertruschak7083thats disgusting.
Ken is one of the KINGS of real estate
I Love it, a Real School Teacher Learning and Teaching Actual Financial Literacy, Realestate & Advanced Capitalism. Beautifully. Brightens my day everytime!
A housie does not have to grow in real value for it to be an investment. Rent goes up every year, your principal and interest stay the same and eventually end. In many states, taxes are limited in how fast they can grow. If you stay in a house long term, your cost of living will go down vs renting, most years. Then when it's paid off, your cost of living falls sharply.
In my area low income housing is needed, but many developers like yourself are building luxury apartments or luxury homes which does nothing for the buyer who needs a home.
That is correct. The numbers don't work for affordabel housing. That is part of the problem. Land costs, labor and supplies make it a negative venture.
I feel this, as a cabinetmaker, I make a decent living on luxuriius interiors yet.
Its not enough to afford to purchase a home of my own, as there is simply no options for lower income homeowners.
Adding wages to the Schiller chart would be nice to see
I agree with Danille
Mortgage duration is becoming so long its just like paying rent
Owning a home and making mortgage payments generally builds equity.
Paying rent builds equity for someone else.
It could very well be that people who buy a house today will have to wait 10 years for it to be the same value as what they paid for it. My home that I bought in 2003 didn't reach the same value again until 2020. That is nominal value. Inflation adjusted my home is worth less today than in 2003, even with these crazy prices.
Isn’t taxes going up all over for property taxes 9 or 10%? So it turns In to reverse amortization but to the government directly?
I agree with D she is right
Hi Kenny! I recommend you research HUD partial claims. Our government is peventing/hiding foreclosures until after the election. Colonel Mike (SMC)
Inflation, as the cost of building is going up, how you expect price to go down? I know wages doesn't keep up with inflation but those institutions have tons of cheap monies and they will start scoping.
There is multiple factors. If you think that's the reason ; good for you . Cheers 🍻
The government wants to provide just enough affordable housing to say that they're doing something.
It took me while to realize that owning a car is madness unless you can buy it cash. So I save money by leasing cars I say to people what’s your car payment 600 and up i couldn’t believe.
Leasing is for people who can’t afford to buy a car.
You can lease if the cost of it tax deductible. If you want a car to drive - buy affordable 5-7 years old car cash.
That Shiller report needs one more overlap. That’s the % of Americans that actually owned a home. Prior to the 1970’s home ownership was about 50% of the population. You see everyone talk about not being able to afford a home now, it’s not even close compared to 1900-1970. You had to have 50% down and got financing for 10 years. And you better know somebody at the bank.
Whatever man. It's not even close to a comparison nowadays. 1970 avarage salary: 9k
1970 average home price: around 20k. A house only costing around 2 times the average salary? Oh they were so dissadvantaged back then! GTFOH
@@jasonroberts9357 Why was home ownership so low?
@@mike2959 Home Ownership was not affordable for many people.
@@jasonroberts9357 Why are you so angry?
@@cabot100 Yeah he’s mad. Not sure why. Inez just pointing out that the home ownership % was terrible prior to the advent of FHA/VA and other programs that came out in the 70’s. My grandfather might have purchased a home for 30K but he had to put 15K down. This was in 1960. 15K in 1960 in today money is $156,000. It doesn’t even make sense 🤣
I actually like freedom, so i vote gold.
If it’s affordable it’s more likely to be a good investment for the individual long term.
40 year loans seems stupid to me. Yeah it might lower your payment by a little bit, but each year of extension on the loan has less of an effect on the monthly payment. The payment will never go lower than the 1st month’s interest obligation. Otherwise the loan will not be amortized.
I'd rather have my stock portfolio be a good investment than the roof over my head. Having stocks is optional, a place to live is not.
I Always ask the stock folks. Can you live in your stocks? Can you rent your stocks out to someone and have them pay off your stocks for you?
By that explanation your logic makes no sense. If you have to purchase the home, it makes sense to shop wisely and make a good investment such as with price and location. Whereas since stocks are optional, not buying them makes more sense especially as you have 0% control over the value of the stock. At least with a house you can fix it up and upgrade it.
@@Spry011sort of a financially illiterate answer. The return on stocks is much greater over 30 years than the return on a mortgage. People are better off trying to get the lowest cost shelter and plowing money into stocks - if we are talking getting rich over the medium to long term. The banks are the ones that get rich on your mortgage, not you.
How can 420 be a deal if income isn’t rising accordingly?
1997-2007 “Liar Loans”, no need to qualify. What could go wrong? GFC
Can you create chapters?
What is the advantage to someone who purchased an apartment complex in 2015 in a opportunity zone?
Lower prices by 40%. Only answer. People are broke.
Or increase wages? Wages have been flat for decades.
@@coryspence5903 Well of course that would be great, but it ain't happening without massive layoffs or breaks and incentives for companies. Small businesses especially can't just raise wages and survive.
Just because housing prices are increasing does not make it a good investment and the opposite as well. Ever hear of buy low sell high. Just based on an investment perspective your advice is poor. Besides the fact that younger generations cannot afford their first homes. This sounds like elitism. I believe in rational fair markets which this housing and stock market bubble is not. I think we need a healthy solid correction in stocks and real estate to reset to normality. It would cause short term pain but would be healthy long term.
That's a long winded way of saying "wah wah". A return to normalcy? Brother we are in the early days of WWII and there's no way to cleanly reset sovereign debt.
Inflation is baked into the cake, invest accordingly.
Spoken like a true wing-nut. If WWlll breaks out you won’t be investing, you’ll be scavenging for food and water or you’ll be long gone.
Danille has really stepped up and is doing a great job on the conversation.
Fla housing market is plummeting. So are other markets. Depends where u r.
I heard of this. The insurance hikes.
With the purchasing power of the USD going down and down based on govt overspending then all other assets have to go up, including homes. Just based on wages alone.
Housing construction costs will always keep the prices in equilibrium.
Replacement cost will always be a factor in valuation. But RE is a depreciating asset too. The fact that a new 3-series costs $55k has almost no effect on the resale value of 10-year-old examples. If prices get to a point where they're just plain unaffordable for anyone near the median buyer, which they clearly are now, then the market will correct regardless of replacement cost.
Historical real returns on US housing has averaged 1% since 1920. Terrible investment compared with stocks. Housing is a lifestyle, not a good investment.
No we don’t, speak for yourself
I am sharing this. Please keep doing videos.
Those graphs do not show the true rates of inflation if you are using government figures. It is much, much higher if everything, including labor.
Plenty of cheap housing in the rust belt🤔
Energy must be affordable for houses to become affordable again. Unburden us from Harris!!! 🎉
people are getting addicted to unrealistic gains and feel like they are entitled to them.
Most homeowners are intelligent enough to understand the housing market has been in an unsustainable bubble.
The unrealistic gains, as you phrase it are unrealized gains unless a person sells.
Do you think housing will be more expensive in another five or ten years?
“People can’t afford to buy homes”
Scarcity mind set.
Millions and millions of people can afford to. Just not that person.
They want affordable housing nimby…
I don't hate Trump, Ken... I will be voting for him in a couple of weeks, along with tens of millions of Americans who have had enough of the party that's only good at one thing: denying reality.
Thank you, keep working.
Great buying up Argentina and Ohio no pollution 4 u
Danille is dead on, no conspiracies here
Paying rent = you get a cardboard box full of receipts. Paying mortgage = you get a house.
David Greene did a good job of explaining that the illegals in California are actually paying the significant amount of interest on the loan when they sell the house furthermore, the new homeowner assistance program is specifically for low income fires. Prices should not go up for the majority of the homes.
It will go up
Good luck
Just a question by 2040. Won't the population decline hurt the value of homes. Rather drastically
In 2040 people will still need to live somewhere.
@@cabot100just less people, most of whom are a lot poorer 😂
@@zwatwashdc There was a whole lot less housing then.
The cost of a house was much more in line with people's incomes.
If you took a few minutes to do some research, you might gain some knowledge.
@@cabot100 in 2040. Sheesh.
@@zwatwashdc You may already own a couple of homes?
The current market may not have a big effect on someone in that position.
Not only that but if both you and tenant are at end of lease and you want to boot the tenant because you want to fix and flip the unit
the tenant always has a Rich Lawyer on speed-dial paid for by STATE OF MASSACHUSETTS
So the one foolproof way to oust a relucatant tenant-at-will pull out the long list of Vandalism charges you will initiate against tenant for all 3 times he broke something on the property
Walk softly but carry a BIG STICK in Blue States fellow landlords!
Much love 400k homes with bad skeptics not
she has no clue about home ownership
Trump 2024!!!
We've seen that movie before...
@treesnmoguls no one is coming to save us
It's not about us being saved by Donald Trump. It's that the biden-harris administration has been in power for the last 3.5 years.
1. We still have an open border with millions of illegal immigrants crossing, which keeps wages low and reduces the supply of housing, making it expensive,
2. we are still sending billions of our US dollars to Ukraine and other countries to fight proxy wars instead of investing in our own country and citizens.
3. Inflation and prices are still high. And it's hard for everyday Americans to get by when food, gas, rent, home prices, car prices, interest rates, and everything is expensive.
the Harris campaign is making a bunch of promises. Kamala says she wants to "turn the page to a better future." Well, we've been there before, and she's currently in the White house with Joe Biden, and we can see what they have accomplished for the last 3.5 years.
Why aren't they keeping good on those promises now?
I remember when Donald Trump's administration was in office. interest rates were low, inflation was lower, we had no new wars, we still had illegal immigrants crossing the border, but it was at a much lower rate.
Life was easier to get by for the average everyday American under Donald Trump's Administration
Encroaching law breakers
Oh I see you can eat a house, hmmm interesting, come on
I think you might be wrong about Trump. There's a lot of people on here that support him
Trump is awesome.
Immigration is just one factor in housing costs, but you talk about constantly as if you're experts on immigration itself. You keep dismissing the time element to all of this. When immigration rises and falls matters. Italy and Japan have shrinking and aging populations and few industries that are addressable by immigration....for now.
We love trump.
Whoever is pro working-class Americans, by deeds not just promises, is the one we should support.
I love trump like i love gum on the bottom of my shoe. Trump is just a slighly less dirty, slightly less disgusting wod than Harris,Biden. What about Vivek Ramswamey......he would be a great, current-times-knowledge pre 28:22 sident
Seen that movie before. Nah!
TRUMP 2024!!
Seen that movie before...Nah!
Home is just a place to live. Hopefully you get it at a good price and it lowers your cost of living over the time you live there. If you think of it as an investment and your ability to retire your lost. They say in this video that unless you got lucky in the market, no the market has always Done well. The market has never lost money. If you lost a lot of money in the market, it’s because you were invested in the wrong things and I say that because you should follow the advice of Dave Ramsey and invest in a mutual fund that is proven itself for the 30 year Track record. All my friends said they made money with their homes and they would move and get a bigger home when I asked them what they paid with their monthly payment was over the amount of time they were there it never panned out. I bought a smaller home paid it off in 15 years and lived here for a long time. Thus I was able to put my income into the stock market where I did well with compound interest and now I’m able to retire.Dave Ramsey don’t listen to any of these clowns on TH-cam
RIP non ethical Ken's nothing to pay bye now
Danille is HOT !
A billionaire has a hot wife. Who would have thought?!