Hey everyone, it’s Stepten! If you want my FREE TEXAS RELOCATION GUIDE with information on all things about TEXAS, you can download it here: deals.allcityhomestore.com/ask/015eac53e75694248d99fa35c2a843e3
Just had a friend move to Dallas, I'm waiting how long before he moves back to FLORIDA lol love your content, keep up the great work and I like the Reventure App also.
Don't Worry! Be Happy! Enjoy your life ... Wife, children. your youth, and your 3 bathrooms. Life is too short to worry about stuff that might never be in perfect timing. 😊 I enjoyed your video. Keep up the good advice for others. Oh and I know a guy who bought about 7 fixer uppers and moved up in space and luxury each time. He finally got to his dream home, it was built paid for, kids were grown, lost emotional contact with his wife in his pursuit. Got divorced, split up everything in half. Was basically back to a mid way point. You have a beautiful home and ya'll are an adorable couple. Just enjoy it. Make memories and as I said BE HAPPY!
I am a Broker as well bought mine 2007 arguably worst time, saw 100k loss first 3-4 years, now about 1 Mil in equity after 16 years. Keep your home at least 10 yrs and you’ll be fine 👌
Buying in 2022-2024 is literally 40% worse mathematically than peak 2007, if we're talking FL or TX. This is going to be the steepest crash in history. Just gotta follow the math. Home values won't recover in 10 years, it'll be 20 minimum.
@@enthused7591What’s the catalyst for this? Even if unemployment rose 5%, the lack of inventory and cash strapped investors will reduce the possibility of a crash. I’m curious to see what you think will cause this crash? You understand that the practices in 2005-2007 no longer apply today right?
I liked what a financial influencer said about house buying. He said he could care less about making money off his family’s home. It’s meant to live in, enjoy, and create lifelong memories. That’s the point of a home for your family. People’s expectations to make a large amount of money off a house are slightly unrealistic.
Everyone's situation is different. Buying a house isn't a 'right' and is nothing to be trifled with. People MUST factor in all the costs associated with the purchase, including the change in their commute. Every $5 counts. That "Financial Influencer" sounds like they had a pretty high income. I don't have a family but I have a house and it was the best investment I knew how to make with the $50k I had in the bank. I didn't know how to invest in the Stock Market, but NOW I would sell my cars and put all that money into the market and probably do better.
@@sjoncbSpeaking on theories and utopian ideas isn't going to help. Playing the Game right will. There's a whole bunch of people that could afford a home if certain people would stop getting into houses they can't afford and non-homeowners do a better job of budgeting. All that is disruptive to the people that actually build homes, they have to absorb the cost when they have houses that aren't selling.
Your current home value is irrelevant if you’re gonna be there for a long time. In 10 years you’ll still be up. You buy a home when you are ready to buy home. It’s almost impossible to predict and price the market. Be thankful, and happy that you bought a house, and make good memories with your family and your son growing up! Cheers
Lmao! Spending too much ALWAYS matters. It's the MOST IMPORTANT PART.. money is made.. or lost.. with you BUY.. he LOST money when he bought that house. As a realtor he should have saw this coming. And stayed in his starter home. And waited. He would be MUCH.. MUCH... MUCH.. wealthier today.
@doktorr23 That was my situation too. Bought in late ‘22 because i HAD to buy (didn’t want to wait another few years for interest to drop and prior home was in bad shape). So I see your point in buying when needing to buy.
I also bought in 2022 (in March) and also in Texas. My home value has not gone down. It went a little bit up. I made 20% down. The best part is, my 30 year fixed rate is 3.50%. I do not regret! My house is outside of city limits and no HOA!
Your zestimate is not the true value. Guaranteed 1000% no one would pay close to what you did for your house. I sold mine in 2022 for 600k and now it would probably sell for 480-520k
@copiouscat 😂 Yeah, that veteran status makes us a golden ticket for many things too! Like that lifetime income from Disability Comp, retirement and tax exemptions!
I learned early if you are doing what everyone else is doing, 9/10 you are doing something wrong. I waited and bought our home after the crash of 2008; we purchased a short sale in 2009, and people thought it was crazy that we had to wait so long for approval. That was the second-best move I ever made in my life. House is paid for and worth four times on what we paid for it. The next crazy, I will purchase our lake home.
Been there. Bought a condo at top of market in 2007/2008. Paid about $125k our realtor said only do it if you see yourself living there 7-10 years and can afford it. I was sick the next couple of years as it dropped in value by about half. Thought about picking up a foreclosed on condo in my building for $68k, but didn’t. 15 years later my condo is worth $256k. (Utah)
I bought a house in 2022. I feel I overpaid by about $20,000. However, my adult son called me and told me he is apartment hunting and a studio apartments are going for about $1100😮 in my area. My mortgage on a 3 brm 1 bath home is about $1100. So I dont feel so bad about it. I have an affordable roof over my head and am grateful to God for it.😊
What state do you live in and how many square feet is your home> $1100 is almost too good to be true.... I'm at $1800, with an 820 credit score and 60% downpayment at 5.37% interest. $412.000 house. I'm in the rural area in Texas.
I did that, constantly looking at the value of my home. I finally stopped. I realized how hard i worked to get this point and I did it by myself. I simply enjoy pulling in my driveway and loving the fruits of my labor ☺️
I feel you on your situation! I was you about twenty years ago. Pay down the principal each year. Pay $30-$60 when you can. You can get a new insurance policy and get homestead exemptions too. Turn the lights off and reduce your bulbs’ wattage. Reduce your electric bill by buying a better plan for your needs. Read the terms before you buy. You got this! PS--Stop using those credit cards! Use cash instead!
Never chase the FOMO. It works against you, not for you, and you usually end up making a bad decision. Always buy something within a reasonable budget. And if you can't afford it, then just so be it. You can never rely on getting a raise or better job, so buying a house when you aren't financially ready for it is incredibly risky (I would say have enough for a 30% down payment, even if you only do 20%. That remaining 10% is a safety for mortgage payments. And don't squeeze your budget just to afford the mortgage payment. If all of your income goes to the mortgage payment and expenses, with no savings, you are going to be stressed out every single month, and will hardly be able to enjoy your house. When planning a mortgage payment, always be able to leave at least 15% for savings. Not only are your hedging against a lot of risk, but mentally you will be better because of the safety net you made for yourself. So even if the house value or price drops down, it won't affect you too much because the house was still well within your budget and no matter what happens, you should be fine for 1-2 years or so on mortgage payments (thanks to the 10% in savings, its better to have ~20% saved up). In conclusion, for all of you out there, only buy a home when you are financially ready. If you are living pay check to pay check with the monthly mortgage and you don't have 10% of the house value saved up after the down payment, you are NOT financially ready for a house.
My brother in law just bought a home in Colorado it’s a nice spacious home too a 3 bedroom with a 2.5 bedroom. He’s currently both of the rooms to one of there family member. And a family friend. It work out for him because they all work and hardly see each other
Live in your house man, and start making memories. Dont worry about your home value unless u want to sell. U said it was your dream house. Keep it, love and be happy with your beautiful wife.
Couldn't agree more on not rushing and will add to that don't buy for the wrong reasons. Trust your gut on who you're working with for your lender. I should have walked away but I didn't and have now been house poor for 2 years and it's completely sucked the joy out of being a homeowner. My house went on the market today so we'll see what happens. Hopefully I can make back at least what I put in. Oh and lastly don't fall into the trap that because you buy a home you need all new stuff. I didn't buy a bunch but enough to start off on the wrong foot. (I bought a bed and a couch) Lots of tough lessons learned and thus is life.
After selling a couple homes in 2022, I'm anticipating a housing crisis in order to buy inexpensively. As a backup plan, I've been thinking about purchasing stocks. What recommendations do you have for the best time to buy? On the one hand, I keep reading and seeing trader earnings of over $500k each week. On the other side, I keep hearing that the market is out of control and experiencing a dead cat bounce. Why does this happen?
The top experts, however, have access to confidential information and data that is not made available to the broader public. Being knowledgeable enough to use them successfully is quite another. Big returns, not changing stochastics, are the key. Rewards and risks must be balanced. To reach your aim, pick the right size and turn your edge as often as necessary.
I concur; I've been in frequent communication with an investing advisor for more than 17 months. I definitely remember needing inspiration to keep my business running after a protracted divorce. I researched licensing consultants, sometimes known as portfolio coaches by some.
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 ‘’Rebecca Nassar Dunne’” for about five years now, and her performance has been consistently impressive.She’s quite known in her field, look-her up.
I always tell people, if you buy the forever house you LOVE, at a price you can afford, then it is priceless to you and your family. Who cares what anyone else says it's worth? Don't let some stranger steal your joy.
Couldn’t agree more. You can’t predict the market, so there is no point in trying to “beat the market.” The home buying process should center around a reasonable budget that you can afford, and a house that you might not necessarily love but meets all your needs. Even if you feel you “overpaid,” there’s no telling how things would have turned out if you chose not to buy your house. It’s easy to think if you held out longer you could have bought after the priced drop, but as you said interest rates went up so you might end up paying the same if not more in the end. Secondly there’s no guarantee that your house would have been still on the market unsold, would you risk losing an opportunity to live in your beautiful home because you wanted to wait out for a better “deal?” The best thing to do is focus on your happiness, if you love your home it doesn’t matter what other people value the price to be. Regrets shouldn’t be anything that could have been, if you got the house you wanted and you are happy, what is there to truly regret?
I beat the market in Texas and now in Chicago. If you don’t have the downpayment to not pay PMI you might be buying over your means. I refuse to pay PMI so I did the 20% DP. I also bought in 2017 which was the perfect time to buy. I couldn’t afford a new build so I had the cash to redo a good brick Georgian in a good area. Everyone wants new build that’s the problem.
New Builds are already 25-30% more in price than a comparable pre-existing home. But, in some areas new builds are crashing because a bunch of other new build projects are coming to market, also people bought in places like Forney, Austin, Haslet, Grand Prairie etc, a lot of people simply didn't know the areas. Now, a person is not technically upside down because appreciation will catch up when rates moderate and new builds slow. You are also playing with house money, you did not lose. The only losers are people that have to sell for whatever reason.
See I appreciate videos like this. I have been waiting to buy a house since 2017. I’ve noticed many people were jumping into homes left and right. As of this year the same homes that I was interested in dropped 20% of what they were asking for in 17. I’m excited because the options are actually turning out endless.
If you got a good interest rate and you are planning to live there for a long time, you didn’t over pay. In 10 years your house will double. Don’t even trip on the short term price adjustment. It is because of 2-4x insurance premiums and interest rate. If you learn about 1970-1985 inflation and recession, you will see housing price over all 2-3x. In between there were two price adjustments, but each adjustment is after the price has gone up significantly. If you got yourself a 3-4% interest rate, you sir is a smart and lucky man. Enjoy your beautiful house my brotha. You are chilling.
Houses can't double in 10 years, the incomes don't support current pricing. There's houses in my market that are barely above their purchase price in 2005-2008. Sometimes you can just lose, and even if the houses are up 10% in 10 years, you're upside down in real dollars. Now's a dangerous time to buy.
Zero chance, home values won't even recover to today's values for 20 years. Gotta follow the math. Super important. Homes in TX and FL are priced more than 60% above what they'll be in 2025-2027. Most important thing about 1970-1985 is that even at 19% interest, home PRICES were wildly affordable at only 2.5-3X the median household income. Today, the median home price in the US is 6.9X the median household income, 41% worse than the 2007 bubble. If we had 1970s home prices adjusted to 2024 dollars, the average 2200 sq ft 4 bedroom, 3 bath home with 2 car garage would cost $140,000 today. It's $460,000.
Thank you for sharing your experience in a frank and real manner but also for giving a little peace of mind to those in the same situation. Dwelling in the past never helps to move forward.
You’re doing fine. I bought a home in 2022 also. Early enough in the year to lock in 3.5% though. Home value is about the same (Richmond, TX). But even if I were upside down, I wouldn’t worry about short term market conditions. It should really be a 7 yr+ investment.
People that purchased a home in your market (particularly realtors like yourself) knew that they were buying high, but sometimes you have little choice (especially with apartment cost soaring). Of course, the reality is that you just need to wait out the market when prices will recover and interest rates drop. It will happen. We got lucky and were able to purchase right before the prices and rates skyrocketed. Good for you have previous home experience and learning from it. That was a huge help to us as well. Also, being financially ready for the purchase was a smart move. There is nothing worse than seeing an opportunity and not being able to move on it because you didn’t prepare. We lost our last house in a short sale because of a bankruptcy and it was a powerful learning lesson in the eventual purchase of our new home.
When I bought my first home back in 2008, I also bought at the peak of the market 160k with a 6.5 interest rate. My mortgage was 1300 dllrs a month. Fast forward to today, that home is worth 350k.
Pay down the principle faster with 2 monthly payments rather than 1 for the same amount actually will help long term, set that up with your bimonthly payment with your mortgage company
I know this is off topic but I can tell you really love your wife just by how you looked at her when she was speaking. May God continue to bless y'all on your journey♥️
Great Video!! The NEST EGG tip is a BIG BIG BIG BIG BIG Golden Nugget.. Two more quick tips Folks: #1 you cannot 'overpay' for a home you plan to live in Long Term(10+yrs). Relax and keep living. #2 Do not look at the Value for the first few years(if you intend to live in it( Especially Year 1. Especially Zillow lol, its not accurate.
Appreciate you sharing this information ‼️ Property taxes in Texas is High along with Insurance , Wind, Fire , Flood Damages …Ridiculously HIGH 🤑🤑🤑💰🤑🤑 3:08
If you can afford it hold and it will go back up!! As long as it’s well built, here in the south there’s a big to do about D R Horton homes, serious issues with those home apparently. Good luck on your journey!
If I am correct..you have more exposure with a new build for market fluctuations..right?..I recall the people that bought in 2007-2008 ,with new builds, seem to have got hidden the hardest back then.I sold a house in Ohio that I had been in for 10 years and due to the fall of values in 2008 I was only able to get what I paid about 10 years before. Though it didnt matter because the market was down anyway...and in fact the higher the price of the house it seems that the more the values had been impacted.
Focus on equity. I'd rather own a 100k house free and clear than mortgage a 400k home. With the former, you are swimming with the current. The latter, you are swimming against it
Looks like a super nice house. I live in FL where homes have also seen over 100% price appreciation from just 2020, which was already at new all-time highs before Covid ever hit. I hate to say it because I bought my first house when I was 19 in Florida for 65% off of 2007 prices in 2009 and Florida and Texas in particular are about to crash quite a lot harder than 2008-2010. All the math is really an order of magnitude worse. You seem like you've prepared with 6-12 months of cash emergency funds at a minimum, but man this is going to be difficult for 20 million people in particular. It'll be 15-20 years before we see 2024 valuations again organically.
So crazy how markets differ from state to state. I just bought a house in Pennsylvania in March and had to offer at least $30k over asking to even get an offer considered. Even doing this on 2 houses, I was outbidded each time. Finally on the 3rd house I got it. Everyone is still outbidding each other in my area. I guess it just depends where you live! Glad to hear prices are coming down in other areas
House value only matters if you plan to sell. If you're planning on living and dying there, house value going down means your taxes will also go down. Enjoy less taxes and live your life there.
Thanks for your video, It looks like you got a really nice house you can afford and have a beautiful family to enjoy it with. GREAT investment I would say. Your child will grow up in a good place, that could shape his future, that is priceless, simply because no-one can go back in time to change the past and memories and as you chose to be in a good place, everyday you wake up there is a blessing to be thankful for, Thanks again for your honesty, it was a pleasure to watch your video, I wish you all the best!
I became lucky. We went under contract on a house new build for 698k in 2022 in April in Kyle TX long story short I ended that contract and got a portion of my earnest back lost 17k. They couldn’t sell that house for shit till the beginning of 2024. They kept dropping the price till it hit 495k. Every one who bought in that community lost a lot of of equity. I ended up buying north of Austin with better incentives and we like north more and closed end of last year. The house is not as big, but still has all the rooms we want, and 100k in upgrades. We sold our house and had to rent till it was finished being built. We rented a house from a real estate agent couple, not the one we sold our house with and they took no pride in their rental smh. These agents will lie for a Klondike bar.
I would tell you to look into a recast because you can still put money down on the principal balance of the mortgage then readjust the payment based on the new balance! Not all mortgage companies do this but call your lender and find out
I purchased my house in Plano, TX back in October 2022 with a fixed interest rate of 2.5% (which seems unheard of now). Remarkably, my home’s value has appreciated by over $100,000 since then. I believe that waiting another five years will only drive prices higher, and anyone watching this video will recognize that you got a great deal.
North Dallas is a unique market and 7/10 of the nations fastest growing cities are in DFW. It’s an anomaly and not remotely representative of a typical market
Love the video, me and my girlfriend moved to Texas 2 years ago and we really having a hard time trying to decide on what to do. It will be our first home and we really having an hard time trying to decide. I’m going to use a lot of the key points I took from your video.
@@realestatesteph I truly respect your honesty and transparency. I was about to buy my first home in 2019 in Charlotte. I was making 100,000 a year driving trucks so thought why not. I found a house and figured it would be no more than 100,000 or 150,000 (it was in the hood btw and was an old build) but found out later through a realtor they wanted like 200,000 (maybe 220,000). I calculated my all-in would've been about 1800. I could afford it at the time, but I just couldn't imagine paying that much for the next 30 years! Then I thought if I'm already paying that, how could I turn around and rent it out later If I wanted to upgrade? I didn't feel comfortable paying that and I was making good money, so I knew it would be virtually impossible to rent it out later to tenants who could 'comfortably' pay a little more than that to me if I rented out later. I walked away on those grounds and I still don't regret it. Homes were becoming overpriced before Covid, and I believe a correction will have to drop the country well below 200,000 dollar homes before people can comfortably afford homes again. There were people still losing their homes when mortgages were 500 to 700 hundred dollars so I don't know how we got here as a country. But thanks again for your content. Keep it coming, brother 💯
First I really enjoyed your honest style. I agree with 100% of what you said and I lived it buying here in San Marcos in 2006 at the top of the market. I would love to hear your thoughts on the large Movie production ( Hill Country Studios) will do to our market. I live 4 miles from where the 200 acre project is going in.
I lucked out. I closed on my home 3/21. Right before the market went out of control with inflated prices. I feel so bad for people who purchased later.
🎉🎉🎉 How have i missed your channel for so long? This is my first video with you and I absolutely love the way you present yourself and the information you bring. So I’m going to give your channel a try and I just subscribed. Looking forward to watching more videos from you. Blessings,Carlos ✝️🙏❤️😊🇺🇸
Pay additional $$ towards your principal make it a second payment. Print every payment also print out a amortization table. A friend paid his 30 year mortgage off in 6 years. He put tax refunds, bonuses and any other left over $$ towards the mortgage. Also who knows if you had waited the house would not have been available.
Hi Stephen, I throughly enjoyed this video. Thank you for being completely honest about your experience.. I too about to overpay for our home. Not happy about it but my wife and I love the home. Once we’ve officially close, prayerfully I will not be checking to see if the value of our home increases or declines because I’’m sure that’s maddening.. Best of luck to you and your family sir.
As a lowly carpenter who's 62, I'm going to give people younger than me some free advice that'll make you financially secure. Never buy in an overheated market. Buy in a "transitional area" if you can. Put down 20 % to avoid PMI. Go for a 15 year loan, never a 30, marginally higher payments but you'll pay it off within the time you buy 2 new cars. If you can't swing the 20%, either buy a cheaper house or save more money. How do I know this stuff works, because I've done it all and live in a $2.1-$2.3 million dollar home (depending on market conditions) that I own free and clear. Never made a huge amount of money as a carpenter, but I stayed the course over 40 years. Good luck to you all.
Just purchased February 1, 2024 my house was market price but my home was the only one in the entire neighborhood to sell since 2011 so realistically, I set the market. now there are four other homes for sale since I brought mine.
If you can afford the mortgage and you aren’t selling, it doesn’t matter what it’s worth. My house has a ton of equity…which is completely academic. I’m loving in it.
We bought our first 1500 sq ft 2 story townhouse in 97 for 154k. We just sold it for 908k cash to flee Commifornia for Florida. We had 4 solid offers within a few days. Leesburg is a garden spot. 2200 sq ft single story with lots of space between houses for 330k cash, and I got to retire. God has richly blessed us. We moved to Florida and lived in our Class A RV while our house sold and we looked for a new house. I HIGHLY recommend this strategy when selling your house. We didn’t have the move out move in nightmare when our agent showed the house, and we spent 2 months looking at 28 houses all over the area. Taking our time allowed us to get a feel for the different 55+ communities, and what things were important to us. Our must have list at the beginning was different than our list at the end. Be Well.
I bought my first property in 2012 and sold it in 2016 for what my neighbors paid for it in 2006. I think the most salient thing you emphasized was being able to afford it. People pushed into stretching are the ones in trouble. Assuming Austin?
Amazing advise. I feel the same and actually just checked my home value today. Then I came across your video and chuckle lol. Have a blessed day to you and yours.
Hi. How are you doing? I bought my first place in 2007, just before the crash of 2008. I went from a place worth $225,000 to $150,000. And I still had a mortgage over $220,000. What did I do? I kept paying my mortgage. I kept going. Took 8 years for the price and mortgage to reach parity. And another 4 years for me to be able to sell it what I bought it for.
I got lucky I had a large home built in 2021 and locked in the price here in San Antonio. The home finished in January 2022 with the same guarantee from April 2021 and we put 39% down with 2.25% interest so my monthly payment is under 20% of my take home pay alone. Good info for the future!
You can't obsess. You have to assess. You assessed and reevaluated. That's how it should go! I did kind of jump on mine too. Starter home right at the beginning of Covid, but it came out good for us. Original value 218k, we did some add ons, like moisture barrier, tile for showers, etc. 248K in the end. Now valued at 320k minimum a year later. We did put 20% down, and have paid it down a couple of 10K. Could have it paid off by the middle of next year, and it's only 3.375% interest. I'm debating on buying land though and renting this out, or just paying this off as more of a safety net, then saving up over a few years for land. We'd have less overhead, and if either of us loses our job, we're free and clear on a mortgage.
Same boat we bought ours 2023 and im an agent as well. It will be fine in the coming years. Just have to stay in it for the next few years. I literally thought like you and felt the same but keep reminding myself regardless im not planning to move at the very least year 5-6 and even still plan to refi and rent it out. Market is just correcting right now
Everyone makes mistakes, you seem thoughtful enough that on balance throughout life you will make more good decisions than bad ones & will do well as a result
When making a big purchase I always think about the worse case scenario, I know for some this isn't the right attitude but knock wood I have never been forclosed on or have anything repod.
I bought my house in Denver for 130k in 2008, now it’s worth 510k. I have been paying extra so I owe around 22k. I’m thinking of selling and relocating to TX but the taxes in TX are a bit crazy.😳
The taxes are a pain in the but. Depends on where you land. Sounds like you can make a significant downpayment that would keep your monthly payments very manageable though. If I was going to move anywhere I think it would be Denver .
Bought my "dream home" new construction by Coventry homes in Conroe, TX... in 2022, it was a rough ride... They wanted $380,000 for a 3-bed room 1400 square ft. home, managed to back out of that and ended up with a 2300 square ft, 2-story four bedroom for $355,000, originally priced at $410,000. The builder had been sitting on for five months and was willing to deal at year end... If I couldn't have gotten this deal I would have lost the earnest money and walked.... A home purchase is too big of a purchase to get wrong. Today Zillow and Redfin are both valuing my home in the $385-$405 range.... :)
Never get high on your own supply lol This is a really excellent video though. Sounds like you did a lot of other things right. You're giving out a lot of good info here, and it's awesome how you two are figurong things out as a team. Hoping y'all come through it as easy as possible.
You sound financially sound and it sounds like you are not house poor by any means. If you plan on being there long term it doesn’t matter what the month to month value of your home is. I’m in Florida and just sold my primary residence condo last week and profited 85% since I bought it in late 2020. Living in one of my investment properties until we can buy another house. The prices are insane here! The last house I bought in 2023 is already worth over $100k more than what I bought it for. Amazing how Texas and Florida are so different with the trajectories.
Making extra payments if you have a low rate is not optimal, if you can buy treasury bonds that give you a better rate than the one of your loan is better to buy treasury bonds until the points between them doesn’t help you Example your mortgage is 3% Treasury bonds are 5% Buy treasury bonds whit your extra money until your mortgage loan match treasury bonds then use all the money you accumulated on TB to pay off the loan Doing it this way accomplish 3 things 1.-You gain the % gap between the loans 2.- you have an emergency savings ready for any anomaly 3.- in the worst case scenario that your house keep dropping in value to the point that do not make sense keep paying, you have reserves, your hose lose 50% is better to let it go than bite that bullet
I loved hearing your message. Hope everything turns out well for you guys. Real estate changed my life. My first home saved me from countless mistakes in life. My most trusted financial partner was my first home. Helped me when I was in debt, and became my partner by providing cashflow and equity for my 2nd, 3rd, and 4th house. One can’t get rich on fear.
Happened to me in Cali 2007, right at the tip of the last crash. Learn my lesson.. best thing that happened to me, short sale, ended up moving because of my job only, and now have two paid off homes... Bought them dirt cheap.... Don't be afraid to walk away... It was wild that my payment was 3400 even though I knew I shouldn't I did it, caught myself in that fomo lol. My ex was wanting bigger and better.. I was fine with my smaller home.... Who in their right mind will pay $3,400 for 30 years....
I bought in 2023...felt like I NEEDED too, my rent kept increasing...Massachussetts...home price has increased 30k in 1 yr...but not going anywhere anyways
Complete Nonsense! Some people here say that all you have to do is wait 15 years or longer. Do some basic price history lookup in Redfin, Zillow, etc. and you’ll find out that most homes bought in 2006 (the peak of the last housing bubble) which have not been sold since are underwater today, adjusted for inflation. In addition, the loss in equity that you’ve experienced isn’t related to your mortgage payment. It’s the difference between what you paid and the appraised value and the down payment is protecting the bank and not your investment.
It depends on where you bought. Prices fluctuate, but have averaged out to remain stable over the last year. New build homes typically lose value in the short term, but build value over time. Basically, buying a home should be a long term investment and you shouldn't buy a home to immediately get an roi.
Great video and greetings from Atlanta. You seem like a really nice and wonderful, genuine person. You and your wife will have an awesome future on many levels. I see that for you two. You remind me of me and my wife many years ago-pulling the trigger on a huge long term investment in our dream community. We have no regrets almost 30 years later. I don’t agree with putting a lot of money down. 1). If you really get upside down in your loan (doesn’t sound like you are-nor ever will be), then you’ll never recoup your investment. Money flushed down the crapper. 2). You can invest that money you didn’t put into your loan wisely and make even more money. So many viable investment options. The only reason I could see putting more down on a home you’re planning to live in is if you’re having difficulty paying your current monthly amount? Help me to understand your thinking in that part. I like to learn. Oh…and you’re going to be just fine-like others have mentioned. Sounds like you’re in the ideal location for you that you’re planning to be in for a long time.
Thanks for that. Only reason I say we should have put more down is just in case we had to sell during the down period it would not cost as much. That’s it. We’re actually super comfortable. The internet can get in your head and have you thinking you messed up bad when you’re actually doing just fine. I just want ppl to enjoy their homes and not miss out of happiness staring at home values every day lol
House value means nothing unless you are planning to sell. Values go up and down all the time. Hopefully it will go up in the future. But the good thing is your property taxes wont be so high. Continue the great content. Thank you
I’ve been telling everybody never overbid on a house that not gonna meet it value I bought four houses in 2020 to 2022 and I never overbid on them and there are multi family houses
Hey everyone, it’s Stepten! If you want my FREE TEXAS RELOCATION GUIDE with information on all things about TEXAS, you can download it here: deals.allcityhomestore.com/ask/015eac53e75694248d99fa35c2a843e3
Just had a friend move to Dallas, I'm waiting how long before he moves back to FLORIDA lol love your content, keep up the great work and I like the Reventure App also.
Don't Worry! Be Happy! Enjoy your life ... Wife, children. your youth, and your 3 bathrooms. Life is too short to worry about stuff that might never be in perfect timing. 😊 I enjoyed your video. Keep up the good advice for others. Oh and I know a guy who bought about 7 fixer uppers and moved up in space and luxury each time. He finally got to his dream home, it was built paid for, kids were grown, lost emotional contact with his wife in his pursuit. Got divorced, split up everything in half. Was basically back to a mid way point. You have a beautiful home and ya'll are an adorable couple. Just enjoy it. Make memories and as I said BE HAPPY!
What city is located your new home?
I am a Broker as well bought mine 2007 arguably worst time, saw 100k loss first 3-4 years, now about 1 Mil in equity after 16 years. Keep your home at least 10 yrs and you’ll be fine 👌
Wow. I agree. Thats what I’m telling all my new buyers. Buy what you can afford and hold it long as you can. That’s the plan. Thanks for the input
Nope this isn't like 2008 it's much worse. Anyone who bought a house in the last 4 years are idiots.
Buying in 2022-2024 is literally 40% worse mathematically than peak 2007, if we're talking FL or TX. This is going to be the steepest crash in history. Just gotta follow the math. Home values won't recover in 10 years, it'll be 20 minimum.
@@enthused7591What’s the catalyst for this? Even if unemployment rose 5%, the lack of inventory and cash strapped investors will reduce the possibility of a crash. I’m curious to see what you think will cause this crash? You understand that the practices in 2005-2007 no longer apply today right?
unless you have to move due to employment reasons.. good luck there cause many companies do not care about you..
Houses are too expensive right now. I bought a beater and I’m just going to live in it until it’s paid off. A man with no bills is a rich man.
Love it!
You bought a home that you LOVE and can afford that is a blessing.
I liked what a financial influencer said about house buying. He said he could care less about making money off his family’s home. It’s meant to live in, enjoy, and create lifelong memories. That’s the point of a home for your family. People’s expectations to make a large amount of money off a house are slightly unrealistic.
💯. Housing should be a human right, not a business
Very well said.
Everyone's situation is different. Buying a house isn't a 'right' and is nothing to be trifled with. People MUST factor in all the costs associated with the purchase, including the change in their commute. Every $5 counts. That "Financial Influencer" sounds like they had a pretty high income. I don't have a family but I have a house and it was the best investment I knew how to make with the $50k I had in the bank. I didn't know how to invest in the Stock Market, but NOW I would sell my cars and put all that money into the market and probably do better.
@@sjoncbSpeaking on theories and utopian ideas isn't going to help. Playing the Game right will. There's a whole bunch of people that could afford a home if certain people would stop getting into houses they can't afford and non-homeowners do a better job of budgeting. All that is disruptive to the people that actually build homes, they have to absorb the cost when they have houses that aren't selling.
Time value of money too. $1 today doesn’t have same value after 10 years.
Enjoy every moment in life.
Your current home value is irrelevant if you’re gonna be there for a long time. In 10 years you’ll still be up. You buy a home when you are ready to buy home. It’s almost impossible to predict and price the market. Be thankful, and happy that you bought a house, and make good memories with your family and your son growing up! Cheers
Thanks! Thats exactly it. Really appreciate that
What he said
Lmao! Spending too much ALWAYS matters. It's the MOST IMPORTANT PART.. money is made.. or lost.. with you BUY.. he LOST money when he bought that house. As a realtor he should have saw this coming. And stayed in his starter home. And waited. He would be MUCH.. MUCH... MUCH.. wealthier today.
@doktorr23
That was my situation too. Bought in late ‘22 because i HAD to buy (didn’t want to wait another few years for interest to drop and prior home was in bad shape).
So I see your point in buying when needing to buy.
How do you know it’ll be up in 10 years?
I also bought in 2022 (in March) and also in Texas. My home value has not gone down. It went a little bit up. I made 20% down. The best part is, my 30 year fixed rate is 3.50%. I do not regret! My house is outside of city limits and no HOA!
Thanks for the comment
Your zestimate is not the true value. Guaranteed 1000% no one would pay close to what you did for your house. I sold mine in 2022 for 600k and now it would probably sell for 480-520k
The interest rate was just good timing. Anyone that bought a house pre mid 2022 is doing great by IR alone
Bought also in 2022 at 3.6 fixed now with inflation I’m sure the prime is higher.
Well played
People complaining about rate and prices but the bigger problem is the property taxes in tx
Facts. It completely offsets not having state income tax
@@RT-qz5ci not enough in my opinion. Counties are Getting Out of Control with these FALSE VALUES simply so they don’t lose their jobs !! This IS THEFT
Marry a Veteran with an exemption 😆😂🤷♀️
@copiouscat
😂 Yeah, that veteran status makes us a golden ticket for many things too! Like that lifetime income from Disability Comp, retirement and tax exemptions!
And house prices are too high as well
I learned early if you are doing what everyone else is doing, 9/10 you are doing something wrong. I waited and bought our home after the crash of 2008; we purchased a short sale in 2009, and people thought it was crazy that we had to wait so long for approval. That was the second-best move I ever made in my life. House is paid for and worth four times on what we paid for it. The next crazy, I will purchase our lake home.
You have to have the patience of a saint to wait out the short sale process .. good on you!
Been there. Bought a condo at top of market in 2007/2008. Paid about $125k our realtor said only do it if you see yourself living there 7-10 years and can afford it. I was sick the next couple of years as it dropped in value by about half. Thought about picking up a foreclosed on condo in my building for $68k, but didn’t. 15 years later my condo is worth $256k. (Utah)
@@Ef-ny9yv I did the exact same thing. It was rough watching the value go down.
If you put 100k into the stock market 15 years ago you'd be a multiple millionaire
I bought a house in 2022. I feel I overpaid by about $20,000. However, my adult son called me and told me he is apartment hunting and a studio apartments are going for about $1100😮 in my area. My mortgage on a 3 brm 1 bath home is about $1100. So I dont feel so bad about it. I have an affordable roof over my head and am grateful to God for it.😊
Wait til the real math comes out to you .
1100 is only mortgage, don’t forget about property taxes, maintenance, etc
You’re in for a rude awakening when property taxes inevitably rise // which they have to have by now.
What state do you live in and how many square feet is your home> $1100 is almost too good to be true.... I'm at $1800, with an 820 credit score and 60% downpayment at 5.37% interest. $412.000 house. I'm in the rural area in Texas.
@@Moyjgc101 Yeah, I think she left that part out.
I did that, constantly looking at the value of my home. I finally stopped. I realized how hard i worked to get this point and I did it by myself. I simply enjoy pulling in my driveway and loving the fruits of my labor ☺️
Exactly! I love that for us!
I feel you on your situation! I was you about twenty years ago. Pay down the principal each year. Pay $30-$60 when you can. You can get a new insurance policy and get homestead exemptions too. Turn the lights off and reduce your bulbs’ wattage. Reduce your electric bill by buying a better plan for your needs. Read the terms before you buy. You got this! PS--Stop using those credit cards! Use cash instead!
Never chase the FOMO. It works against you, not for you, and you usually end up making a bad decision. Always buy something within a reasonable budget. And if you can't afford it, then just so be it.
You can never rely on getting a raise or better job, so buying a house when you aren't financially ready for it is incredibly risky (I would say have enough for a 30% down payment, even if you only do 20%. That remaining 10% is a safety for mortgage payments.
And don't squeeze your budget just to afford the mortgage payment.
If all of your income goes to the mortgage payment and expenses, with no savings, you are going to be stressed out every single month, and will hardly be able to enjoy your house.
When planning a mortgage payment, always be able to leave at least 15% for savings.
Not only are your hedging against a lot of risk, but mentally you will be better because of the safety net you made for yourself.
So even if the house value or price drops down, it won't affect you too much because the house was still well within your budget and no matter what happens, you should be fine for 1-2 years or so on mortgage payments (thanks to the 10% in savings, its better to have ~20% saved up).
In conclusion, for all of you out there, only buy a home when you are financially ready. If you are living pay check to pay check with the monthly mortgage and you don't have 10% of the house value saved up after the down payment, you are NOT financially ready for a house.
🙏🏾
My brother in law just bought a home in Colorado it’s a nice spacious home too a 3 bedroom with a 2.5 bedroom. He’s currently both of the rooms to one of there family member. And a family friend. It work out for him because they all work and hardly see each other
Live in your house man, and start making memories. Dont worry about your home value unless u want to sell. U said it was your dream house. Keep it, love and be happy with your beautiful wife.
🙏🏾
@@realestatestephproblem this man super over paid
Couldn't agree more on not rushing and will add to that don't buy for the wrong reasons. Trust your gut on who you're working with for your lender. I should have walked away but I didn't and have now been house poor for 2 years and it's completely sucked the joy out of being a homeowner. My house went on the market today so we'll see what happens. Hopefully I can make back at least what I put in. Oh and lastly don't fall into the trap that because you buy a home you need all new stuff. I didn't buy a bunch but enough to start off on the wrong foot. (I bought a bed and a couch) Lots of tough lessons learned and thus is life.
Thanks for the comment
if it’s a dream home why do you have regrets. enjoy your home.
Indeed.. I’m past the regrets phase and in the enjoyment phase. I just wanted to share the story .
Probably paid 1 mil for 700k home...that stings
Nightmares are dreams
There is no dream home until paid off 😂
After selling a couple homes in 2022, I'm anticipating a housing crisis in order to buy inexpensively. As a backup plan, I've been thinking about purchasing stocks. What recommendations do you have for the best time to buy? On the one hand, I keep reading and seeing trader earnings of over $500k each week. On the other side, I keep hearing that the market is out of control and experiencing a dead cat bounce. Why does this happen?
The top experts, however, have access to confidential information and data that is not made available to the broader public. Being knowledgeable enough to use them successfully is quite another. Big returns, not changing stochastics, are the key. Rewards and risks must be balanced. To reach your aim, pick the right size and turn your edge as often as necessary.
I concur; I've been in frequent communication with an investing advisor for more than 17 months. I definitely remember needing inspiration to keep my business running after a protracted divorce. I researched licensing consultants, sometimes known as portfolio coaches by some.
How do I meet this advisor, please? I need assistance investing my divorce settlement because it's now sitting in the bank earning little interest.
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 ‘’Rebecca Nassar Dunne’” 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 Pointer. It was easy to find your handler, She seems very proficient and flexible. I booked a call session with her.
I always tell people, if you buy the forever house you LOVE, at a price you can afford, then it is priceless to you and your family. Who cares what anyone else says it's worth? Don't let some stranger steal your joy.
Love that!
I really appreciated your final message about not fixating on what you can’t control and, instead, enjoying your home!
Love this! I appreciate the good, positive outlook. It seems like a lot of homebuying videos are filled with fearmongering and negativity.
So much of it!
Rarely do I comment on anything but I have to say, I love your message! Keep up the good work, brother!
🙏🏾 thank you
Where do you check your home value? Zillow?
Couldn’t agree more. You can’t predict the market, so there is no point in trying to “beat the market.” The home buying process should center around a reasonable budget that you can afford, and a house that you might not necessarily love but meets all your needs. Even if you feel you “overpaid,” there’s no telling how things would have turned out if you chose not to buy your house. It’s easy to think if you held out longer you could have bought after the priced drop, but as you said interest rates went up so you might end up paying the same if not more in the end. Secondly there’s no guarantee that your house would have been still on the market unsold, would you risk losing an opportunity to live in your beautiful home because you wanted to wait out for a better “deal?” The best thing to do is focus on your happiness, if you love your home it doesn’t matter what other people value the price to be. Regrets shouldn’t be anything that could have been, if you got the house you wanted and you are happy, what is there to truly regret?
🙏🏾
I beat the market in Texas and now in Chicago. If you don’t have the downpayment to not pay PMI you might be buying over your means. I refuse to pay PMI so I did the 20% DP. I also bought in 2017 which was the perfect time to buy. I couldn’t afford a new build so I had the cash to redo a good brick Georgian in a good area. Everyone wants new build that’s the problem.
You know when the price isn't worth what you're buying. Stop it.
@@english7451indeed. Well said
New Builds are already 25-30% more in price than a comparable pre-existing home. But, in some areas new builds are crashing because a bunch of other new build projects are coming to market, also people bought in places like Forney, Austin, Haslet, Grand Prairie etc, a lot of people simply didn't know the areas. Now, a person is not technically upside down because appreciation will catch up when rates moderate and new builds slow.
You are also playing with house money, you did not lose. The only losers are people that have to sell for whatever reason.
Exactly
Also new builds have quality issues.
Because they hire shitty contractors you will see a lot of videos of new builds with problems.
See I appreciate videos like this. I have been waiting to buy a house since 2017. I’ve noticed many people were jumping into homes left and right. As of this year the same homes that I was interested in dropped 20% of what they were asking for in 17. I’m excited because the options are actually turning out endless.
Lots of options now
If you got a good interest rate and you are planning to live there for a long time, you didn’t over pay. In 10 years your house will double. Don’t even trip on the short term price adjustment. It is because of 2-4x insurance premiums and interest rate. If you learn about 1970-1985 inflation and recession, you will see housing price over all 2-3x. In between there were two price adjustments, but each adjustment is after the price has gone up significantly. If you got yourself a 3-4% interest rate, you sir is a smart and lucky man. Enjoy your beautiful house my brotha. You are chilling.
Love that! Yea we are man. I just wanted to let ppl know it’s not the end of the world!
Houses can't double in 10 years, the incomes don't support current pricing. There's houses in my market that are barely above their purchase price in 2005-2008. Sometimes you can just lose, and even if the houses are up 10% in 10 years, you're upside down in real dollars. Now's a dangerous time to buy.
@@rathelmmc3194some houses have doubled since 2020 lol
Zero chance, home values won't even recover to today's values for 20 years. Gotta follow the math. Super important. Homes in TX and FL are priced more than 60% above what they'll be in 2025-2027. Most important thing about 1970-1985 is that even at 19% interest, home PRICES were wildly affordable at only 2.5-3X the median household income. Today, the median home price in the US is 6.9X the median household income, 41% worse than the 2007 bubble. If we had 1970s home prices adjusted to 2024 dollars, the average 2200 sq ft 4 bedroom, 3 bath home with 2 car garage would cost $140,000 today. It's $460,000.
Yea right😅
Thank you for sharing your experience in a frank and real manner but also for giving a little peace of mind to those in the same situation. Dwelling in the past never helps to move forward.
Thanks that was exactly my intention. I’m happy it was received that way.
I just came across your channel: Nicely done - very educational. Thank you!
Thanks for watching!
Nice to hear from an honest real estate broker. Happy to subscribe and looking forward to more videos
Much appreciated! I have to share the wins and losses!
You’re doing fine. I bought a home in 2022 also. Early enough in the year to lock in 3.5% though. Home value is about the same (Richmond, TX). But even if I were upside down, I wouldn’t worry about short term market conditions. It should really be a 7 yr+ investment.
People that purchased a home in your market (particularly realtors like yourself) knew that they were buying high, but sometimes you have little choice (especially with apartment cost soaring). Of course, the reality is that you just need to wait out the market when prices will recover and interest rates drop. It will happen. We got lucky and were able to purchase right before the prices and rates skyrocketed.
Good for you have previous home experience and learning from it. That was a huge help to us as well. Also, being financially ready for the purchase was a smart move. There is nothing worse than seeing an opportunity and not being able to move on it because you didn’t prepare. We lost our last house in a short sale because of a bankruptcy and it was a powerful learning lesson in the eventual purchase of our new home.
Thanks for sharing! We did know we were paying too damn much
@@realestatesteph Yup - sometimes it is just unavoidable (my previous house was a similar situation).
Thank you for your honest assessment. Additionally, you're very fortunate to have a great partner, and I wish you guys the very best.
What difference would it have made if you paid to sell the house vs paying it up front in the down payment? Assuming you keep the money in the bank
When I bought my first home back in 2008, I also bought at the peak of the market 160k with a 6.5 interest rate. My mortgage was 1300 dllrs a month.
Fast forward to today, that home is worth 350k.
Pay down the principle faster with 2 monthly payments rather than 1 for the same amount actually will help long term, set that up with your bimonthly payment with your mortgage company
Great advice
Thanks I needed to hear this. I close on the 5th if all goes accordingly
Congrats and good luck! Enjoy your new home.
I know this is off topic but I can tell you really love your wife just by how you looked at her when she was speaking. May God continue to bless y'all on your journey♥️
You’re absolutely right and I’m gonna get soooo many points for this comment! Thank you!
Great Video!!
The NEST EGG tip is a BIG BIG BIG BIG BIG Golden Nugget..
Two more quick tips Folks:
#1 you cannot 'overpay' for a home you plan to live in Long Term(10+yrs). Relax and keep living.
#2 Do not look at the Value for the first few years(if you intend to live in it( Especially Year 1. Especially Zillow lol, its not accurate.
You got it!
Appreciate you sharing this information ‼️ Property taxes in Texas is High along with Insurance , Wind, Fire , Flood Damages …Ridiculously HIGH 🤑🤑🤑💰🤑🤑 3:08
True!
If you can afford it hold and it will go back up!! As long as it’s well built, here in the south there’s a big to do about D R Horton homes, serious issues with those home apparently. Good luck on your journey!
If I am correct..you have more exposure with a new build for market fluctuations..right?..I recall the people that bought in 2007-2008 ,with new builds, seem to have got hidden the hardest back then.I sold a house in Ohio that I had been in for 10 years and due to the fall of values in 2008 I was only able to get what I paid about 10 years before. Though it didnt matter because the market was down anyway...and in fact the higher the price of the house it seems that the more the values had been impacted.
Focus on equity. I'd rather own a 100k house free and clear than mortgage a 400k home. With the former, you are swimming with the current. The latter, you are swimming against it
🙏🏾
@@Ricktherealtorsc owning your own home hits different! Y’all should try it.
Yeah I got a place in 2017, sold it in 2021 and used the proceeds to buy my house now in cash. No mortgage is life changing
Looks like a super nice house. I live in FL where homes have also seen over 100% price appreciation from just 2020, which was already at new all-time highs before Covid ever hit. I hate to say it because I bought my first house when I was 19 in Florida for 65% off of 2007 prices in 2009 and Florida and Texas in particular are about to crash quite a lot harder than 2008-2010. All the math is really an order of magnitude worse. You seem like you've prepared with 6-12 months of cash emergency funds at a minimum, but man this is going to be difficult for 20 million people in particular. It'll be 15-20 years before we see 2024 valuations again organically.
Thanks for the input!
So crazy how markets differ from state to state. I just bought a house in Pennsylvania in March and had to offer at least $30k over asking to even get an offer considered. Even doing this on 2 houses, I was outbidded each time. Finally on the 3rd house I got it. Everyone is still outbidding each other in my area. I guess it just depends where you live! Glad to hear prices are coming down in other areas
House value only matters if you plan to sell. If you're planning on living and dying there, house value going down means your taxes will also go down. Enjoy less taxes and live your life there.
Love it
Amen!!!!!
A rare candid clear advice from the heart. Thanks you
🙏🏾
Thanks for your video, It looks like you got a really nice house you can afford and have a beautiful family to enjoy it with. GREAT investment I would say. Your child will grow up in a good place, that could shape his future, that is priceless, simply because no-one can go back in time to change the past and memories and as you chose to be in a good place, everyday you wake up there is a blessing to be thankful for, Thanks again for your honesty, it was a pleasure to watch your video, I wish you all the best!
I became lucky. We went under contract on a house new build for 698k in 2022 in April in Kyle TX long story short I ended that contract and got a portion of my earnest back lost 17k. They couldn’t sell that house for shit till the beginning of 2024. They kept dropping the price till it hit 495k. Every one who bought in that community lost a lot of of equity. I ended up buying north of Austin with better incentives and we like north more and closed end of last year. The house is not as big, but still has all the rooms we want, and 100k in upgrades. We sold our house and had to rent till it was finished being built. We rented a house from a real estate agent couple, not the one we sold our house with and they took no pride in their rental smh. These agents will lie for a Klondike bar.
I would tell you to look into a recast because you can still put money down on the principal balance of the mortgage then readjust the payment based on the new balance! Not all mortgage companies do this but call your lender and find out
Yup I’m familiar.. thanks for the advice
I purchased my house in Plano, TX back in October 2022 with a fixed interest rate of 2.5% (which seems unheard of now). Remarkably, my home’s value has appreciated by over $100,000 since then. I believe that waiting another five years will only drive prices higher, and anyone watching this video will recognize that you got a great deal.
North Dallas is a unique market and 7/10 of the nations fastest growing cities are in DFW. It’s an anomaly and not remotely representative of a typical market
Love the video, me and my girlfriend moved to Texas 2 years ago and we really having a hard time trying to decide on what to do. It will be our first home and we really having an hard time trying to decide. I’m going to use a lot of the key points I took from your video.
Yea if you want some more tailored advice shoot me an email Stephen@mygoodlifeteam.com
How can they keep going "up, up, up," when wages aren't?
It’s horrible
@@realestatesteph I truly respect your honesty and transparency. I was about to buy my first home in 2019 in Charlotte. I was making 100,000 a year driving trucks so thought why not. I found a house and figured it would be no more than 100,000 or 150,000 (it was in the hood btw and was an old build) but found out later through a realtor they wanted like 200,000 (maybe 220,000). I calculated my all-in would've been about 1800. I could afford it at the time, but I just couldn't imagine paying that much for the next 30 years! Then I thought if I'm already paying that, how could I turn around and rent it out later If I wanted to upgrade? I didn't feel comfortable paying that and I was making good money, so I knew it would be virtually impossible to rent it out later to tenants who could 'comfortably' pay a little more than that to me if I rented out later. I walked away on those grounds and I still don't regret it. Homes were becoming overpriced before Covid, and I believe a correction will have to drop the country well below 200,000 dollar homes before people can comfortably afford homes again. There were people still losing their homes when mortgages were 500 to 700 hundred dollars so I don't know how we got here as a country.
But thanks again for your content. Keep it coming, brother 💯
First I really enjoyed your honest style. I agree with 100% of what you said and I lived it buying here in San Marcos in 2006 at the top of the market. I would love to hear your thoughts on the large Movie production ( Hill Country Studios) will do to our market. I live 4 miles from where the 200 acre project is going in.
I respect you as a real estate professional being honest about your purchase
It’s different when it’s my own house.. hard to think objectively bc so much emotion involved
I lucked out. I closed on my home 3/21. Right before the market went out of control with inflated prices. I feel so bad for people who purchased later.
Blessing!
🎉🎉🎉 How have i missed your channel for so long?
This is my first video with you and I absolutely love the way you present yourself and the information you bring.
So I’m going to give your channel a try and I just subscribed.
Looking forward to watching more videos from you.
Blessings,Carlos ✝️🙏❤️😊🇺🇸
Pay additional $$ towards your principal make it a second payment. Print every payment also print out a amortization table. A friend paid his 30 year mortgage off in 6 years. He put tax refunds, bonuses and any other left over $$ towards the mortgage. Also who knows if you had waited the house would not have been available.
Love this content. Love how you explained the what you did right and the financial responsibility you take for your decisions, good and bad. ♥️😊
Hi Stephen, I throughly enjoyed this video. Thank you for being completely honest about your experience.. I too about to overpay for our home. Not happy about it but my wife and I love the home. Once we’ve officially close, prayerfully I will not be checking to see if the value of our home increases or declines because I’’m sure that’s maddening.. Best of luck to you and your family sir.
Same to you. Enjoy your home. Especially if you can afford it!
@@realestatestephYes we can. However, we are still hoping for the rates to drop and refinance at some point. Thank you.
Love the quality of your video sir. Much respect.
Love this! So educational and good flow to the video.
Thank you
As a lowly carpenter who's 62, I'm going to give people younger than me some free advice that'll make you financially secure. Never buy in an overheated market. Buy in a "transitional area" if you can. Put down 20 % to avoid PMI. Go for a 15 year loan, never a 30, marginally higher payments but you'll pay it off within the time you buy 2 new cars. If you can't swing the 20%, either buy a cheaper house or save more money. How do I know this stuff works, because I've done it all and live in a $2.1-$2.3 million dollar home (depending on market conditions) that I own free and clear. Never made a huge amount of money as a carpenter, but I stayed the course over 40 years. Good luck to you all.
Just purchased February 1, 2024 my house was market price but my home was the only one in the entire neighborhood to sell since 2011 so realistically, I set the market. now there are four other homes for sale since I brought mine.
Thanks for sharing
A house starts with features and becomes a home with memories. Those memories are a value no real estate market can depreciate!
If you can afford the mortgage and you aren’t selling, it doesn’t matter what it’s worth. My house has a ton of equity…which is completely academic. I’m loving in it.
We bought our first 1500 sq ft 2 story townhouse in 97 for 154k. We just sold it for 908k cash to flee Commifornia for Florida. We had 4 solid offers within a few days. Leesburg is a garden spot. 2200 sq ft single story with lots of space between houses for 330k cash, and I got to retire. God has richly blessed us.
We moved to Florida and lived in our Class A RV while our house sold and we looked for a new house. I HIGHLY recommend this strategy when selling your house. We didn’t have the move out move in nightmare when our agent showed the house, and we spent 2 months looking at 28 houses all over the area. Taking our time allowed us to get a feel for the different 55+ communities, and what things were important to us. Our must have list at the beginning was different than our list at the end.
Be Well.
I bought my first property in 2012 and sold it in 2016 for what my neighbors paid for it in 2006. I think the most salient thing you emphasized was being able to afford it. People pushed into stretching are the ones in trouble. Assuming Austin?
Thanks.. yup Austin
Amazing advise. I feel the same and actually just checked my home value today. Then I came across your video and chuckle lol. Have a blessed day to you and yours.
Hi. How are you doing? I bought my first place in 2007, just before the crash of 2008. I went from a place worth $225,000 to $150,000. And I still had a mortgage over $220,000. What did I do? I kept paying my mortgage. I kept going. Took 8 years for the price and mortgage to reach parity. And another 4 years for me to be able to sell it what I bought it for.
That’s exactly it. Just gotta ride it out. Sit still and it will balance itself out in the long run
I got lucky I had a large home built in 2021 and locked in the price here in San Antonio. The home finished in January 2022 with the same guarantee from April 2021 and we put 39% down with 2.25% interest so my monthly payment is under 20% of my take home pay alone. Good info for the future!
Nice that’s dope! Great position to be on
Inflation over time will fix your worries. Congrats on the new home!
You can't obsess. You have to assess. You assessed and reevaluated. That's how it should go! I did kind of jump on mine too. Starter home right at the beginning of Covid, but it came out good for us. Original value 218k, we did some add ons, like moisture barrier, tile for showers, etc. 248K in the end. Now valued at 320k minimum a year later. We did put 20% down, and have paid it down a couple of 10K. Could have it paid off by the middle of next year, and it's only 3.375% interest. I'm debating on buying land though and renting this out, or just paying this off as more of a safety net, then saving up over a few years for land. We'd have less overhead, and if either of us loses our job, we're free and clear on a mortgage.
Same boat we bought ours 2023 and im an agent as well. It will be fine in the coming years. Just have to stay in it for the next few years. I literally thought like you and felt the same but keep reminding myself regardless im not planning to move at the very least year 5-6 and even still plan to refi and rent it out. Market is just correcting right now
Soul brother! lol if you can afford it then enjoy it!
where in TX are you that your house value went down? We bought in 21 and it's only gone up in the Houston area.
What part of Texas? I live in Melissa Texas. Home prices here seem to be steady.
Austin area
How is your property taxes and insurance?
The property tax is a pain in the butt.. insurance is manageable
I'm curious how much you paid and how much value the house has lost since. Only if you don't mind sharing.
Everyone makes mistakes, you seem thoughtful enough that on balance throughout life you will make more good decisions than bad ones & will do well as a result
Thanks! Just gotta stay the course
When making a big purchase I always think about the worse case scenario, I know for some this isn't the right attitude but knock wood I have never been forclosed on or have anything repod.
I bought my house in Denver for 130k in 2008, now it’s worth 510k. I have been paying extra so I owe around 22k. I’m thinking of selling and relocating to TX but the taxes in TX are a bit crazy.😳
The taxes are a pain in the but. Depends on where you land. Sounds like you can make a significant downpayment that would keep your monthly payments very manageable though. If I was going to move anywhere I think it would be Denver .
Bought my home in the 3rd quarter 2021. My home has only increased since then. I’m in fulshear TX
Congrats!
Fulshear is growing like crazy!! Fantastic area. (Houston area agent). Also, congratulations on your home! ❤
Bought my "dream home" new construction by Coventry homes in Conroe, TX... in 2022, it was a rough ride... They wanted $380,000 for a 3-bed room 1400 square ft. home, managed to back out of that and ended up with a 2300 square ft, 2-story four bedroom for $355,000, originally priced at $410,000. The builder had been sitting on for five months and was willing to deal at year end... If I couldn't have gotten this deal I would have lost the earnest money and walked.... A home purchase is too big of a purchase to get wrong.
Today Zillow and Redfin are both valuing my home in the $385-$405 range.... :)
Thanks for sharing
Excellent advice and presentation. Thank you!
So what happens if interest rates drop as well…. ?
Maybe the value goes back up but at this point we’re chillin.. doesn’t matter. That’s the real point of the video.
Never get high on your own supply lol
This is a really excellent video though. Sounds like you did a lot of other things right. You're giving out a lot of good info here, and it's awesome how you two are figurong things out as a team. Hoping y'all come through it as easy as possible.
Regarding the higher down payment, I don't think it was a mistake because the interest rate on borrowed money during that period was lower.
You sound financially sound and it sounds like you are not house poor by any means. If you plan on being there long term it doesn’t matter what the month to month value of your home is. I’m in Florida and just sold my primary residence condo last week and profited 85% since I bought it in late 2020. Living in one of my investment properties until we can buy another house. The prices are insane here! The last house I bought in 2023 is already worth over $100k more than what I bought it for. Amazing how Texas and Florida are so different with the trajectories.
Making extra payments if you have a low rate is not optimal, if you can buy treasury bonds that give you a better rate than the one of your loan is better to buy treasury bonds until the points between them doesn’t help you
Example your mortgage is 3%
Treasury bonds are 5%
Buy treasury bonds whit your extra money until your mortgage loan match treasury bonds then use all the money you accumulated on TB to pay off the loan
Doing it this way accomplish 3 things
1.-You gain the % gap between the loans
2.- you have an emergency savings ready for any anomaly
3.- in the worst case scenario that your house keep dropping in value to the point that do not make sense keep paying, you have reserves, your hose lose 50% is better to let it go than bite that bullet
Thanks never thought about that
I loved hearing your message. Hope everything turns out well for you guys. Real estate changed my life. My first home saved me from countless mistakes in life. My most trusted financial partner was my first home. Helped me when I was in debt, and became my partner by providing cashflow and equity for my 2nd, 3rd, and 4th house. One can’t get rich on fear.
Man! Congrats on your honesty, very brave.
Happened to me in Cali 2007, right at the tip of the last crash. Learn my lesson.. best thing that happened to me, short sale, ended up moving because of my job only, and now have two paid off homes... Bought them dirt cheap.... Don't be afraid to walk away... It was wild that my payment was 3400 even though I knew I shouldn't I did it, caught myself in that fomo lol. My ex was wanting bigger and better.. I was fine with my smaller home.... Who in their right mind will pay $3,400 for 30 years....
I bought in 2023...felt like I NEEDED too, my rent kept increasing...Massachussetts...home price has increased 30k in 1 yr...but not going anywhere anyways
Nice!
Complete Nonsense!
Some people here say that all you have to do is wait 15 years or longer. Do some basic price history lookup in Redfin, Zillow, etc. and you’ll find out that most homes bought in 2006 (the peak of the last housing bubble) which have not been sold since are underwater today, adjusted for inflation. In addition, the loss in equity that you’ve experienced isn’t related to your mortgage payment. It’s the difference between what you paid and the appraised value and the down payment is protecting the bank and not your investment.
Thanks for the input
Where are you getting your pricing data from? I'm looking on Zillow and prices are up.
Mainly the MLS, comparable sales and I use Alto research as well
Zillow is off, and not all markets are the same. Some are still going up, and some are still hovering, but most are falling
Do u watch orlando videos 😉
Yup.. prices are up in some places but I’m
In Austin TX and they are down overall from the previous few years
It depends on where you bought. Prices fluctuate, but have averaged out to remain stable over the last year. New build homes typically lose value in the short term, but build value over time. Basically, buying a home should be a long term investment and you shouldn't buy a home to immediately get an roi.
1st Time Listening From Atlanta!
Great video and greetings from Atlanta. You seem like a really nice and wonderful, genuine person. You and your wife will have an awesome future on many levels. I see that for you two. You remind me of me and my wife many years ago-pulling the trigger on a huge long term investment in our dream community. We have no regrets almost 30 years later.
I don’t agree with putting a lot of money down. 1). If you really get upside down in your loan (doesn’t sound like you are-nor ever will be), then you’ll never recoup your investment. Money flushed down the crapper.
2). You can invest that money you didn’t put into your loan wisely and make even more money. So many viable investment options.
The only reason I could see putting more down on a home you’re planning to live in is if you’re having difficulty paying your current monthly amount?
Help me to understand your thinking in that part. I like to learn.
Oh…and you’re going to be just fine-like others have mentioned. Sounds like you’re in the ideal location for you that you’re planning to be in for a long time.
Thanks for that. Only reason I say we should have put more down is just in case we had to sell during the down period it would not cost as much. That’s it. We’re actually super comfortable. The internet can get in your head and have you thinking you messed up bad when you’re actually doing just fine. I just want ppl to enjoy their homes and not miss out of happiness staring at home values every day lol
House value means nothing unless you are planning to sell. Values go up and down all the time. Hopefully it will go up in the future. But the good thing is your property taxes wont be so high. Continue the great content. Thank you
So true! Hahaha love that thanks
I’ve been telling everybody never overbid on a house that not gonna meet it value I bought four houses in 2020 to 2022 and I never overbid on them and there are multi family houses
your house looks beautiful, man. It looks worth keeping it for a long time.