-Here is a link containing the source material for each piece of research cited. I do my best to make my videos as accurate as I can, and the additional resources should help anyone who wants to look into them further - enjoy! docs.google.com/spreadsheets/d/1pqmYR2aoL_YEFmxLeOzGLvq1o2m_JUEQnnLAilBzklQ/edit?usp=sharing -Go to www.magicmind.com/graham/ - Code GRAHAM gets you up to 48% off your first subscription or 20% off for a one-time purchase - Enjoy!
I think this is probably bad advice for most. It may look good on paper, but reality plays out differently. Look at the boomer generation, where is most of their wealth, it’s in their homes. If people have access to money, they will spend it on something. When it gets locked up in the purchase of a house, it gets saved. Why is this, well it would appear that many view investment accounts as just another checking or savings account. When they need money, they pull it out & spend it. Sure you could say the homeowner can do something similar with a home equity loan, but it takes additional work & isn’t as quick. Sure, if you’re disciplined, his advice holds true, but most people aren’t. That’s why buying is probably the best option for most.
HVAC replacement? $15k Appliance replacement? $1-2k Plumbers, landscaping, and other repairs? $? Then, don’t forget that if you own a home, you need to upgrade it over 20 years. Bathrooms, kitchens, floors and paint. Landscaping on top of that. I’m telling everyone: owning a home is far more expensive than it appears.
I agree. Many people omit the high cost of maintaining a home. Also, property taxes can skyrocket if you don't live in a municipality with prop tax cap like in CA. Insurance is another cost people don't mention.
But when your landlord needs yo fix that guess who will pay for it with higher rent? Over a lifetime it is always cheaper to own. The only reason that it is cheaper right now is because landlords have locked in a low 2-3% interest on their mortgage and will not sell.
In this world of corporations and tyrants and powerlessness, owning something feels good. EDIT: ok, pretending to own something the bank actually owns, and the government can take at any time, feels better than renting to someone
This video is 💯 on point. I have a home repair TH-cam channel and own a portfolio of rental properties. Even I am considering renting the next home for the exact reasons Graham outlined. Nice work my friend this is extremely important information for families to consider to avoid a very tough financial scenario.
Great video! For 2025, it’s hard to nail down specific predictions for the housing market is because it’s not yet clear how quickly or how much the Federal Reserve can bring down inflation and borrowing costs without tanking buyer demand for everything from homes to cars.
I suggest you offset your real estate and get into stocks, A recession as bad it can be, provides good buying opportunities in the markets if you’re careful and it can also create volatility giving great short time buy and sell opportunities too. This is not financial advise but get buying, cash isn’t king at all in this time!
You are right! I’ve diversified my $450K portfolio across various market with the aid of an investment coach, I have been able to generate a little bit above $830k in net profit across high dividend yield stocks, ETF and bonds.
Well, there are a few out there who know what they are doing. I tried a few in the past years, but I’ve been with Lisa Grace Myer for the last five years or so, and her returns have been pretty much amazing.
I was paying $1200 in rent and $200 in gas each month. Bought a mobile home closer to work and freed up $700 a month. My trailer is bigger than the apartment, and it's half the price! Very grateful.
Remember mobile homes and trailers have very low shelf lives...Those things will only last 10 or 15 years before it completely disintegrates. But screw it save while you can!~
As someone who has owned multiple properties, I can confirm what Graham is saying is correct. Owning a house is like owning a boat: there are always going to be repairs and unforeseen costs. I left LA last year and am renting in Las Vegas, for $2600/month. It's 3br, 2.5ba and 2-car garage. I don't pay property tax. I don't worry about appliances breaking. I have a property manager if there are issues. It's great. I would love to own a home again someday, but the prices are just way too high even here in Las Vegas. It's not the interest rates that scare me, it's price itself.
the issue with property managers is that they are expensive. You need to set a side at least 10k for maintance. Stuff happens. The recent storm did 5k damage over night.
Im an RE Analyst, and I appreciate this vid, when I first learned of the Rent vs buy analysis in my undergrad, it really blew my mind how buying a home isn't always a good investment. A Mortgage is just a savings plan with a gun to your head.
My husband and I live in the San Francisco Bay Area and after crunching the numbers came to all of the same conclusions. We’ve decided to rent for the foreseeable future and just save enough to eventually buy a house with cash. I’d rather keep my money than giving it to the bank just to call something “mine.” We’re trying to be smart with our money and don’t need to prove anything to anyone. Thanks for the great content and for saying things many don’t.
This is the unintended consequences of rent control and Prop 13, which limits housing supply and leads people to rent or hold onto their properties for a looooong time, which limits supply. It causes people to be prisoners in their own homes.
Your husband should have came up with a better "foreseeable future" move from San Francisco! That place is an overpriced cesspool, designed to drain every dollar from your pockets!
why would you even partner with a bank that lets you gamble? isn't the point of that obviously to let someone gamble their life's savings away??? and now people's money is gone
People do the same when they own houses too. So really no difference except you have a (??asset??) with a house and that is questionable on a lot of factors
Back in 2009, during my time working in real estate, I witnessed people purchasing newly built homes from builders with the plan to sell them before the closing of escrow to another buyer for a profit. The crash hit hard and fast, and I vividly recall many of these units ending up foreclosed upon, with the builder's plastic still covering the carpets.
Most people find it difficult to handle a fall since they are used to bull markets, but if you know where to look and how to maneuver, you can make a size-able profit. Depending on how you intend to enter and exit, yes.
The enduring US stock market bull run evokes a mix of fear and excitement, presenting opportunities with insight, resulting in $780k gains in the past ten months, utilizing a portfolio advisor for a well-defined strategy.
There are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’Sonya Lee Mitchell’’ for about five years now, and her performance has been consistently impressive. She’s quite known in her field, look-her up.
I will be sharing this with my wife as we are at the ability to purchase for our first time but realizing the timing isn't great at the moment. VERY much appreciated sir
Excellent analysis. I had a 3% mortgage and my house is now paid off. I was always told that buying was cheaper than renting, which was true decades ago. I love the calculator that crunches the numbers of renting versus buying. And a new subscriber btw.
My main problem with renting a house is you are still responsible for mowing the lawn, you can’t make permanent changes, you have to wait on the landlord. If I’m going to rent I’m just going to rent an apartment. My ass ain’t going to mow a lawn
and rent control does exist in some places which protects renters, a purpose built rental apartment is the best option. There's also condos and the additional condo fees that can be a huge hit, though obviously that results in much less maintenance, but not none.
So you propose that i loan apartment ( coz i don't want to be homeless ) and eventually buy some house for cash if i can afford, never taking mortgage to safe money in long run ??
You can use the New York Times buy vs rent calculator that takes into account that you would invest the difference between Renting and buying. Eye opening
And there you go. Common sense if you do your due diligence. When you're ready then buy, do it in cash. If I was to buy the house I'm renting today, my mortgage would be over 6500 per month. I'm paying half now. I am able to save and invest long term. If I was to pay 6500 per month, I would not be able to invest at all. BTW, whenever you're financing something, you do not own it. Just like financing a vehicle, if you miss payment, you risk having your vehicle repossessed. If you miss mortgage payments, you fall into foreclosure and risk losing your home. The bank owns your vehicle same as the bank owns your home. You really don't own anything unless you pay it off or in full.
Actually, you do own it. You own an asset (the home), as well as a liability (the loan). If the banked owned your home, they would technically be entitled to a portion of any profit you earn upon sale, but that is not the case. You keep 100% of the increase in your home's value upon sale (minus realtor fees), and are only responsible for paying off the remainder of the loan balance.
I love this. When people say they “bought” their home…. No you didn’t. You’re just borrowing it from the bank for the next 30 years. 😆🙄 Same thing with cars. You miss payments they’ll take it right from you without any care. 👌🏼
@@Glanzern Lol. You do not own it. Just because your name is on something doesn’t mean “own” It just means you are the legal borrower until you pay it off or stop paying.
100%. I bought a home for $717k last July. Ended up having to move out of state and just sold at $825k. You’d think I’d get a pretty nice $108k profit right? WRONG. After all the repairs I did over the last year (new kitchen, roof, insulation, bathroom updating, painting, lighting fixtures, landscaping, etc), realtor fees, closing costs, and many more little things that I can’t even count, I BARELY broke even. On a 6 figure appreciation. I looked at keeping and renting it out, but my 6.8% interest rate had my payment (including PITI) at $2500 over the equivalent rental price. Let’s not forget I’d still be on the hook for all maintenance. Everyone tells you that buying a home has so many hidden costs. I had no idea it was this much. Now I rent for the next year and see where the market is at, but I kinda like no worries about something leaking or breaking.
Potentially having to move every 12 months while paying someone else's mortgage sounds great. Also, inflated rent is now trending. Wait until most rent is as high as newer mortgage payments. The only winners will be the ones who are building equity.
I recently bought my first home after renting for many years, and while I’m happy that I moved because I wanted more space and autonomy and I was tired of the landlord and tenant relationship, at least as a tenant, I was definitely able to put away more money renting. I realize that some of this is due to inflation, but there are a lot extra costs to homeownership. I had to pay to get some trees removed, pay to replace a hot water heater which required a chimney liner due to new county regulations, etc, and on top of that both your property taxes and your homeowners insurance rates increase when the value of your home increases, so the increase in your escrow amount ends up being like a rent increase. Still, all in all, I’m happy that I bought, because the space and autonomy are worth the extra cost, but I was definitely saving more renting.
@@Toyota4Life I would not buy a house to begin with. I would buy a condo. House would have a lot issues ....forget backyard, grass, trees.... And I would not buy anything that involves chimney in any way. If I see a place with chimney, I would run away, because it would scream at me "expense" right away.
who would've guess that renting further out from a metropolitan city would be cheaper than buying CLOSER to the city. Good use of quickly showing zillow houses graham...
The problem for me is this... I've been saving to be a cash buyer. However, this was pre-covid prices and I could afford to do it at pre-covid prices. The real jacked thing for me is the fact some of these homes have now doubled, and even tripled in price compared to normal pre-covid inflation. Always check the historical inflation. Some of these homes would have taken 40, even 50 years to reach the prices they're asking under normal historical inflation that our parents and grandparents got to enjoy. This now forces me to either get a mortgage or continue pay rent, it's a form of slavery. I've been saving for years for a market that is now corrupted with greed. A pandemic should have an opposite effect on the housing market... a fickle market that crashed in 2008. This is just disgusting. My grandfather and father (and everyone else's) didn't enlist to protect this kind of BS greed that's screwing over their families.
@@josha.bdoge2 Obviously not directed towards you. Cause if you can't afford to move you can't afford to buy a house. So obviously renting is the better option for you. You're priority is finding a good landlord, not buying a home. And that doesn't mean moving every single year until you die.
Other thing I never hear talked about is that ppl that do own often dip into home equity when large cost repairs are needed. So that 30 year loan will never be paid off. It’s not like ppl are saving up for that roof repair or remodel. They are financing it.
I have a $1400 a month mortgage including escrow. If I were renting my house instead it would be $2200 a month. It just made way more sense for me to buy over renting.
I have to add that when own a home for some people like me it makes you want everything even nicer than a landlord would costing you even more I end up upgrading things to exactly what I want which is cool that it’s an option but as we know there is always something new and shiny. Also the most comfortable you get in a house the more stuff you accumulate and become blind to the amount of stuff you have when you know you’ll be constantly moving it forces you to think about how much stuff you have.
As a home owner this is all true! Lots of expenses people don’t think about certainly add up! Also I think bringing up HOA fees is important as it’s applicable to many areas!
The internet hates renting and I don’t know why. I pay way less renting. I don’t want a home where I live and work, I don’t plan to be here more than 10 years. I’ll invest the other 50% I’m saving, and never pay repairs. And the house isn’t “yours” lol, it’s the banks and they’ll take that away from you so quickly if you don’t pay them.
Yes and the other thing I notice is when I’m renting I invest way more and more consistently. Since my costs are predictable I feel good auto debiting to my brokerage account every paycheck. But when I owned my home, I would hold large sums of cash just in case. And when I had my hvac unit fail, I had to pay $8,000.
Having owned rentals for 20+ yrs and now begun to liquidate, I have created an IRR worksheet with those homes now closed as well as forecasts for the remaining. The best IRRs of 20%+ have been returned by the last purchased during the recent 10 yrs, and the longer held have dipped down to 10%. On paper these compare favorably to the stock market, however, once we complete all of our liquidations and continue to dollar-cost-average into more equities...no more tenant phone/texts, collection issues, showings, repairs, contractors or illiquidity. We have been extremely fortunate to have invested during the past 30 yrs and I am unconvinced that the ensuing 30+ future years will deliver comparable returns going forward. We look forward to the next cycles now that we have the benefit of education of several full market swings from the oil embargo, RTC and S&L failures, mortgage debacles of 2008, Covid and now LA fires and insurance/real estate tax spikes currently raging.
Rents would have to half for me to even be concerned. Majority of people don't understand how to properly analyze property. I sleep through the storms brotha
Just looked over my loan docs on a new investment property. Had to put down 20% plus thousands in inspection, appraisal… looking at the docs and it looks like I will spend 151% over the cost of the home. So if this was my primary residence, it wouldn’t be an investment, it would be a savings account. In 30 years I will have spent every last cent on the home that the home is then worth. Home owners simply don’t get it, you spend 150%-200% over the purchase price over the 30 year mortgage. Wake up folks. Stop yapping about equity that you can’t touch without owing more interest. You are not rich and no you didn’t make an investment.
Now is not the time to borrow money especially a mortgage or any leverage product, it will never make monetary sense in this environment. the feds are purposely creating this mathematical situation to discourage credit and money creation. Wait until things correct and when the feds are ready to turn the faucet back on which may now be longer than people projected last couple years ago.
Where are property owners taking low-ball offers for rent due to competition? I've only ever heard stories of buildings staying vacant because the owners would rather lose money on an empty building than risk lowering the area's average rental price.
Don't forget tax deductions and the capital gains exemption for a primary residence when you sell. All your stock earnings will be at your capital gains rate, which they're currently trying to send to the moon.
Also if you own your own home you can take out property backed loans and then use the funds for investment purposes, whereas the same can not be done for a rental property.
Don't be confuse buying the dip in a bear market, with guaranteed future returns. Just because that company is down 60%+ from ATH does NOT make it a sound long-term investment. Make sure you're investing in great companies. kudos to Mark woodruff .
This obviously applies only to prices at this very moment in time. Once rates go down and eventually homes aren’t 7 times the average annual salary, buying will once again be the better option. Hence why 60% of the market who bought at a 4% rate or lower, came out ahead of renters. Buying is usually the better option. Right now when inflation and interest rates are super high, obviously isn’t the best time to buy
@@tobyk5149 yes, but information like this can be misleading. Especially if you live in an area that isn’t as inflated. There are Cities around the county that have much more affordable housing and the rent to buying gap is much smaller. If you come across a home that’s unusually discounted, jump all over it.
As a home owner, and real estate investor I've learned you can't trade up to your "dream home" until you start with BUYING your starter house (which no one seems to want anymore). We bought a primary residence twice. Once RIGHT before the Great Recession hit us, and once in the midst of it. Both times buying a home immensely benefited us for different financial reasons. A close family member, however, continues to rent with family and eagerly wait for the "right time" to buy. He'll never get out of a three bedroom overpriced house at this rate having to move every few years. Buy what you can afford as early as you can and trade up eventually. Time and the long game is of the essence.
I find it hilarious that Taylor Swift of all people actually cares about her audience and carefully vets every sponsorship she has with companies so she doesn't sponsor a company that can hurt her audience.
What we really want to know is what happened to that bank you were an owner of? Seems like people can't withdraw money? Lots of lives being ruined wonder who will have to answer for that.
You carefully dodged the refinance argument lol. If you buy now and refinance at a lower interest rate, the OVERWHELMING likely hood is that your fixed costs will go down and your property value will go up because everyone is buying because interest rates came back down to earth
Problem with that logic is it assumes the rate will decrease. We are unlikely to see the low interest rates of 3-4% again for a long time, if ever again.
Hey Graham My names Tyler Brown, Ive been watching your videos since i was 16. Im from STL Missouri and, you've had a massive impact on my life. Ive watched almost every single video you've made. Im following your life plan to a T. Not only do I have a 750 credit score at 19, But I also have a sizable amount of money invested in stocks. A large amount of that is due to your videos!! I also got my real estate license like you and am hoping to start looking for my first brrrr property within the next year or so. Hell of a time to get my real estate license right. Anyways thank you for all the advice! I hope all it well!
Thank god I stopped watching this many years back. Happy to have made my own financial decisions and even happier to have learnt that most of the things that TH-camrs promote are either scams or misleading.
-Here is a link containing the source material for each piece of research cited. I do my best to make my videos as accurate as I can, and the additional resources should help anyone who wants to look into them further - enjoy! docs.google.com/spreadsheets/d/1pqmYR2aoL_YEFmxLeOzGLvq1o2m_JUEQnnLAilBzklQ/edit?usp=sharing
-Go to www.magicmind.com/graham/ - Code GRAHAM gets you up to 48% off your first subscription or 20% off for a one-time purchase - Enjoy!
Than you for this
But you don't think House hacking with short term will beat the saving and investing strategy? And also better if you are in your 40s
Now do multi units
Graham your videos barely show up on my feed. I've been a subscriber for a few years
I think this is probably bad advice for most. It may look good on paper, but reality plays out differently. Look at the boomer generation, where is most of their wealth, it’s in their homes. If people have access to money, they will spend it on something. When it gets locked up in the purchase of a house, it gets saved. Why is this, well it would appear that many view investment accounts as just another checking or savings account. When they need money, they pull it out & spend it. Sure you could say the homeowner can do something similar with a home equity loan, but it takes additional work & isn’t as quick. Sure, if you’re disciplined, his advice holds true, but most people aren’t. That’s why buying is probably the best option for most.
HVAC replacement? $15k
Appliance replacement? $1-2k
Plumbers, landscaping, and other repairs? $?
Then, don’t forget that if you own a home, you need to upgrade it over 20 years. Bathrooms, kitchens, floors and paint. Landscaping on top of that.
I’m telling everyone: owning a home is far more expensive than it appears.
I agree. Many people omit the high cost of maintaining a home. Also, property taxes can skyrocket if you don't live in a municipality with prop tax cap like in CA. Insurance is another cost people don't mention.
Truth!
But when your landlord needs yo fix that guess who will pay for it with higher rent? Over a lifetime it is always cheaper to own. The only reason that it is cheaper right now is because landlords have locked in a low 2-3% interest on their mortgage and will not sell.
Save on AC units with mini split. Saved us a lot
You don't have to upgrade.
Don't you think the landlord is included all of that in rent?
In this world of corporations and tyrants and powerlessness, owning something feels good.
EDIT: ok, pretending to own something the bank actually owns, and the government can take at any time, feels better than renting to someone
The bank owns the house until you pay them for it
Even then you still don’t own it, they can kick you out and take it if they wanted to
Even if you pay off the mortgage, you still pay property taxes, insurance, maintenance, HOA, Etc.. So do you ever actually own it?
@@Cooking_With_Donavan came here to say this. Under modern governments, you don't own land/property, the government allows you to use it for a fee
Love how these smart people in the comments brought you back to reality you never really own it
This video is 💯 on point. I have a home repair TH-cam channel and own a portfolio of rental properties. Even I am considering renting the next home for the exact reasons Graham outlined. Nice work my friend this is extremely important information for families to consider to avoid a very tough financial scenario.
The "bank" you bought stole $5k from me. As an owner, what are you doing about it? Gonna keep pretending it's not happening?
Could you explain more about this?
Still no source to what you mean? Crowd sourced information like this doesn't work if you just throw out anecdotal statements like above.
That’s tuff
Great video! For 2025, it’s hard to nail down specific predictions for the housing market is because it’s not yet clear how quickly or how much the Federal Reserve can bring down inflation and borrowing costs without tanking buyer demand for everything from homes to cars.
I suggest you offset your real estate and get into stocks, A recession as bad it can be, provides good buying opportunities in the markets if you’re careful and it can also create volatility giving great short time buy and sell opportunities too. This is not financial advise but get buying, cash isn’t king at all in this time!
You are right! I’ve diversified my $450K portfolio across various market with the aid of an investment coach, I have been able to generate a little bit above $830k in net profit across high dividend yield stocks, ETF and bonds.
Do you mind sharing info on the adviser who assisted you?
Well, there are a few out there who know what they are doing. I tried a few in the past years, but I’ve been with Lisa Grace Myer for the last five years or so, and her returns have been pretty much amazing.
I copied her whole name and pasted it into my browser; her website appeared immediately, and her qualifications are excellent; thank you for sharing.
I was paying $1200 in rent and $200 in gas each month. Bought a mobile home closer to work and freed up $700 a month. My trailer is bigger than the apartment, and it's half the price! Very grateful.
That works till these big investors buy the mobile home parks and triples land rent which has been what's happening.
But you're living in a mobile home. I could pitch a tent for free on the sidewalk in Portland and forgo paying $1200 rent.
@@jzen1455
Upgrade to a toyota sienna minivan with mattress inside. You'll love it and the lot lizards will too.
Remember mobile homes and trailers have very low shelf lives...Those things will only last 10 or 15 years before it completely disintegrates. But screw it save while you can!~
@@josha.bdoge2 You're wrong. I grew up in a mobile home that is now 30 years old today.
As someone who has owned multiple properties, I can confirm what Graham is saying is correct. Owning a house is like owning a boat: there are always going to be repairs and unforeseen costs. I left LA last year and am renting in Las Vegas, for $2600/month. It's 3br, 2.5ba and 2-car garage. I don't pay property tax. I don't worry about appliances breaking. I have a property manager if there are issues. It's great. I would love to own a home again someday, but the prices are just way too high even here in Las Vegas. It's not the interest rates that scare me, it's price itself.
I plan on doing this as well. Rent out my primary home and rent until I see an opportunity to buy another.
the issue with property managers is that they are expensive. You need to set a side at least 10k for maintance. Stuff happens. The recent storm did 5k damage over night.
I feel like this may also be due to where you live, LA. I'm sure its similar for all major cities and tri-state areas.
It ain’t any cheaper in Texas unless you want to move into a run down house from the 50-70s.
Rent is always the maximum amount you'll pay a month. Your mortgage payment is the minimum amount you'll pay a month
Im an RE Analyst, and I appreciate this vid, when I first learned of the Rent vs buy analysis in my undergrad, it really blew my mind how buying a home isn't always a good investment.
A Mortgage is just a savings plan with a gun to your head.
Definitely can be!
3:34 property taxes ARE avoidable. Depends on the state and your status. Texas disabled Vets for example.
The end is NEAR, Graham! And we’re here for it!
My husband and I live in the San Francisco Bay Area and after crunching the numbers came to all of the same conclusions. We’ve decided to rent for the foreseeable future and just save enough to eventually buy a house with cash. I’d rather keep my money than giving it to the bank just to call something “mine.” We’re trying to be smart with our money and don’t need to prove anything to anyone. Thanks for the great content and for saying things many don’t.
Same! Rent control is lovely, we’re in north beach area and any home for sale in Bay Area is gross or it’s 2 million. Dumb
This is the unintended consequences of rent control and Prop 13, which limits housing supply and leads people to rent or hold onto their properties for a looooong time, which limits supply. It causes people to be prisoners in their own homes.
Most people don't have the luxury of rent control, so this approach only applies to a vanishingly small segment of the population.
Your husband should have came up with a better "foreseeable future" move from San Francisco! That place is an overpriced cesspool, designed to drain every dollar from your pockets!
>trying to be smart with money
>lives in bay area
why would you even partner with a bank that lets you gamble? isn't the point of that obviously to let someone gamble their life's savings away??? and now people's money is gone
Unfortunately people will not invest the money saved from renting, they will just spend it
Exactly.. better just just be locked in and build equity and get your down payment and some if you sell
You ain’t saving nothing from rent in Westchester NY.
Bingo. We call them middle class
The economy would collapse if everyone saved and invested their money the way they ‘should’
People do the same when they own houses too. So really no difference except you have a (??asset??) with a house and that is questionable on a lot of factors
Why buy a house when you can buy a bank?!?
Back in 2009, during my time working in real estate, I witnessed people purchasing newly built homes from builders with the plan to sell them before the closing of escrow to another buyer for a profit. The crash hit hard and fast, and I vividly recall many of these units ending up foreclosed upon, with the builder's plastic still covering the carpets.
Most people find it difficult to handle a fall since they are used to bull markets, but if you know where to look and how to maneuver, you can make a size-able profit. Depending on how you intend to enter and exit, yes.
The enduring US stock market bull run evokes a mix of fear and excitement, presenting opportunities with insight, resulting in $780k gains in the past ten months, utilizing a portfolio advisor for a well-defined strategy.
Mind if I ask you to recommend this particular coach you using their service?
There are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’Sonya Lee Mitchell’’ for about five years now, and her performance has been consistently impressive. She’s quite known in her field, look-her up.
I saw it too
I will be sharing this with my wife as we are at the ability to purchase for our first time but realizing the timing isn't great at the moment. VERY much appreciated sir
in what moment would be a better time?
Looks like prices are coming down in some areas. Wait a bit and see what happens.
@@asoldierstwocentsrawuncut9611 have you watched the video?
what's your take?
Excellent analysis. I had a 3% mortgage and my house is now paid off. I was always told that buying was cheaper than renting, which was true decades ago. I love the calculator that crunches the numbers of renting versus buying. And a new subscriber btw.
My main problem with renting a house is you are still responsible for mowing the lawn, you can’t make permanent changes, you have to wait on the landlord. If I’m going to rent I’m just going to rent an apartment. My ass ain’t going to mow a lawn
and rent control does exist in some places which protects renters, a purpose built rental apartment is the best option. There's also condos and the additional condo fees that can be a huge hit, though obviously that results in much less maintenance, but not none.
What if you need a house but a mortgage is twice as much a month?
I’ve never mowed a lawn at a house I rented. Made the landlord responsible for handling that.
Just buy the house 100% cash… if you can’t afford it, then don’t buy it. Taking out a loan to pay those interest rates is a brain dead financial move
So you propose that i loan apartment ( coz i don't want to be homeless ) and eventually buy some house for cash if i can afford, never taking mortgage to safe money in long run ??
You can use the New York Times buy vs rent calculator that takes into account that you would invest the difference between Renting and buying. Eye opening
And there you go. Common sense if you do your due diligence. When you're ready then buy, do it in cash. If I was to buy the house I'm renting today, my mortgage would be over 6500 per month. I'm paying half now. I am able to save and invest long term. If I was to pay 6500 per month, I would not be able to invest at all. BTW, whenever you're financing something, you do not own it. Just like financing a vehicle, if you miss payment, you risk having your vehicle repossessed. If you miss mortgage payments, you fall into foreclosure and risk losing your home. The bank owns your vehicle same as the bank owns your home. You really don't own anything unless you pay it off or in full.
Actually, you do own it. You own an asset (the home), as well as a liability (the loan). If the banked owned your home, they would technically be entitled to a portion of any profit you earn upon sale, but that is not the case. You keep 100% of the increase in your home's value upon sale (minus realtor fees), and are only responsible for paying off the remainder of the loan balance.
I love this. When people say they “bought” their home…. No you didn’t. You’re just borrowing it from the bank for the next 30 years. 😆🙄 Same thing with cars. You miss payments they’ll take it right from you without any care. 👌🏼
@@Glanzern Lol. You do not own it. Just because your name is on something doesn’t mean “own”
It just means you are the legal borrower until you pay it off or stop paying.
@@SlanghomyLol. Miss a couple payments the legal owners (the bank) will wipe it from under your feet. And your “collateral” is theirs 😂
@@Glanzern very simple you don’t own until you pay the bank off.
100%. I bought a home for $717k last July. Ended up having to move out of state and just sold at $825k. You’d think I’d get a pretty nice $108k profit right?
WRONG.
After all the repairs I did over the last year (new kitchen, roof, insulation, bathroom updating, painting, lighting fixtures, landscaping, etc), realtor fees, closing costs, and many more little things that I can’t even count, I BARELY broke even. On a 6 figure appreciation.
I looked at keeping and renting it out, but my 6.8% interest rate had my payment (including PITI) at $2500 over the equivalent rental price. Let’s not forget I’d still be on the hook for all maintenance.
Everyone tells you that buying a home has so many hidden costs. I had no idea it was this much. Now I rent for the next year and see where the market is at, but I kinda like no worries about something leaking or breaking.
If you had to dump that much money into it in as single year, you bought wrong.
You paid too much for the house
Not everyone is going to update the kitchen every year lol 🙃
Peace of mind = priceless ❤
Anyone buying a house and then moving in a year is an idiot.
Potentially having to move every 12 months while paying someone else's mortgage sounds great.
Also, inflated rent is now trending. Wait until most rent is as high as newer mortgage payments. The only winners will be the ones who are building equity.
But Graham said that moving anytime you want to a different place is easy and cheap! 😂
rent already is higher them mortgage
moving from mansion to mansion whenever you want? good one bud
If you don’t name this next video “I bought a bank” you’re missing a huge opportunity lol
I cant wait to sell my home and put it all in Yotta!
I recently bought my first home after renting for many years, and while I’m happy that I moved because I wanted more space and autonomy and I was tired of the landlord and tenant relationship, at least as a tenant, I was definitely able to put away more money renting. I realize that some of this is due to inflation, but there are a lot extra costs to homeownership. I had to pay to get some trees removed, pay to replace a hot water heater which required a chimney liner due to new county regulations, etc, and on top of that both your property taxes and your homeowners insurance rates increase when the value of your home increases, so the increase in your escrow amount ends up being like a rent increase. Still, all in all, I’m happy that I bought, because the space and autonomy are worth the extra cost, but I was definitely saving more renting.
What type of job do you do?
@@Toyota4Life I would not buy a house to begin with. I would buy a condo. House would have a lot issues ....forget backyard, grass, trees.... And I would not buy anything that involves chimney in any way. If I see a place with chimney, I would run away, because it would scream at me "expense" right away.
Yes. It at the end of your mortgage you have an asset . At the end of renting you just have moving costs
If you don't want all those expenses such as removing a tree etc, then you should have bought a condo or townhouse. The HOA would do all those things.
I can totally relate with all the repairs, replacements, and maintenance you mentioned.
who would've guess that renting further out from a metropolitan city would be cheaper than buying CLOSER to the city. Good use of quickly showing zillow houses graham...
The problem for me is this... I've been saving to be a cash buyer. However, this was pre-covid prices and I could afford to do it at pre-covid prices. The real jacked thing for me is the fact some of these homes have now doubled, and even tripled in price compared to normal pre-covid inflation. Always check the historical inflation. Some of these homes would have taken 40, even 50 years to reach the prices they're asking under normal historical inflation that our parents and grandparents got to enjoy. This now forces me to either get a mortgage or continue pay rent, it's a form of slavery. I've been saving for years for a market that is now corrupted with greed. A pandemic should have an opposite effect on the housing market... a fickle market that crashed in 2008. This is just disgusting. My grandfather and father (and everyone else's) didn't enlist to protect this kind of BS greed that's screwing over their families.
I don’t know about slavery, you’re not physically chained. But I get it and I agree
Greed? Slavery? Perhaps you’re just not very good at capitalism.
@@rjrussell5671 yea, slavery. Not in the typical sense that is a part of the United States shameful past. A new form, slave to the system.
@@seanm3226 we're talking about historical inflation. Perhaps you're a simpleton.
If you have cash you have options you’re still in a good place don’t be discouraged
What about Yotta?
Dude, you got a Yotta explaining to do now.
brb investing all my money with yotta like you recommended
You're assuming landlords actually MAINTAIN and REPAIR the property 😂
Yes, my landlord does just that!
That’s why you either choose not to rent it in the first place, or move after the lease is up. No strings attached!
@@josh-bodnar oh yeah because we all know moving is so easy and so cheap...
@@josha.bdoge2 Obviously not directed towards you. Cause if you can't afford to move you can't afford to buy a house. So obviously renting is the better option for you. You're priority is finding a good landlord, not buying a home. And that doesn't mean moving every single year until you die.
They are liable for maintaining the property. Talk to a lawyer.
I think there’s a time for renting and a time for owning.
Other thing I never hear talked about is that ppl that do own often dip into home equity when large cost repairs are needed. So that 30 year loan will never be paid off. It’s not like ppl are saving up for that roof repair or remodel. They are financing it.
Yotta?? You know if won’t fade away
Can you do a “What nobody is telling you - Yotta edition” please Graham?
Yeyyy wena release peoples money from Yotta!!!
I have a $1400 a month mortgage including escrow. If I were renting my house instead it would be $2200 a month. It just made way more sense for me to buy over renting.
Yeah good luck finding anyone getting into a house for $1400 a month NOW. Hence the title of the video "2024"
When and where did you buy? That’s a great mortgage. Most are at least double that these days
@@williehayes4614 It was 2 1/2 years ago in Missouri.
In the south and midwest that's still possible. Got my house at 7%. 3 bedroom. Mortgage is about $1500 PITI included.
I hope you do your part to help these people who invested into your bank get their money back.
These people need to be held accountable for potentially destroying lives.
I have to add that when own a home for some people like me it makes you want everything even nicer than a landlord would costing you even more I end up upgrading things to exactly what I want which is cool that it’s an option but as we know there is always something new and shiny. Also the most comfortable you get in a house the more stuff you accumulate and become blind to the amount of stuff you have when you know you’ll be constantly moving it forces you to think about how much stuff you have.
Just don't buy more stuff. Practice minimalism.
As a home owner this is all true! Lots of expenses people don’t think about certainly add up! Also I think bringing up HOA fees is important as it’s applicable to many areas!
The internet hates renting and I don’t know why. I pay way less renting. I don’t want a home where I live and work, I don’t plan to be here more than 10 years. I’ll invest the other 50% I’m saving, and never pay repairs. And the house isn’t “yours” lol, it’s the banks and they’ll take that away from you so quickly if you don’t pay them.
Yes and the other thing I notice is when I’m renting I invest way more and more consistently. Since my costs are predictable I feel good auto debiting to my brokerage account every paycheck. But when I owned my home, I would hold large sums of cash just in case. And when I had my hvac unit fail, I had to pay $8,000.
yeah, you could rent, wait over a year for your ac or heating to get repaired, that will change your mind real quick.
@michaell.6877 you must be renting from a bad company. I get same day help, everytime..
You'll own nothing and like it.
You literally have zero equity.
Having owned rentals for 20+ yrs and now begun to liquidate, I have created an IRR worksheet with those homes now closed as well as forecasts for the remaining. The best IRRs of 20%+ have been returned by the last purchased during the recent 10 yrs, and the longer held have dipped down to 10%. On paper these compare favorably to the stock market, however, once we complete all of our liquidations and continue to dollar-cost-average into more equities...no more tenant phone/texts, collection issues, showings, repairs, contractors or illiquidity. We have been extremely fortunate to have invested during the past 30 yrs and I am unconvinced that the ensuing 30+ future years will deliver comparable returns going forward. We look forward to the next cycles now that we have the benefit of education of several full market swings from the oil embargo, RTC and S&L failures, mortgage debacles of 2008, Covid and now LA fires and insurance/real estate tax spikes currently raging.
best place to learn what NOT to do! Thanks Graham! I saved a lot of money from just not doing what you advise
What happened to your bank investment?
It may be a bad time to buy a house but it is a worse time to buy a rental.
Amen
Rents would have to half for me to even be concerned. Majority of people don't understand how to properly analyze property. I sleep through the storms brotha
Can you explain why?
Not true. You can make good money through rental properties. You have to find the right deals.
Just looked over my loan docs on a new investment property. Had to put down 20% plus thousands in inspection, appraisal… looking at the docs and it looks like I will spend 151% over the cost of the home. So if this was my primary residence, it wouldn’t be an investment, it would be a savings account. In 30 years I will have spent every last cent on the home that the home is then worth. Home owners simply don’t get it, you spend 150%-200% over the purchase price over the 30 year mortgage. Wake up folks. Stop yapping about equity that you can’t touch without owing more interest. You are not rich and no you didn’t make an investment.
Worse yet, when you sell, it all goes into another property and you are on a merry-go-round.
Now is not the time to borrow money especially a mortgage or any leverage product, it will never make monetary sense in this environment. the feds are purposely creating this mathematical situation to discourage credit and money creation. Wait until things correct and when the feds are ready to turn the faucet back on which may now be longer than people projected last couple years ago.
Not going to speak on the Yotta situation? I'm out 9k from that bank you bought.
Really need to address the Yotta issue if you want to ever recover from it.
First with FTX AND NOW YOTTA L STEPHAN
Coffezilla sends his regards.
😂😂 the red wedding scene ahh man
FTX and then this, your audience must be definitely acoustic
Yotta gotta let customers access their money
Dude filming in front a sports car 😂 giving me Tai Lopez
Graham I have 27k frozen in Yota. You did it again bro
How bout that Yotta graham?? Any answers?? Lmao😂😂😂😂
Yotta and FTX, trully finance youtuber
yotta
You should talk about Yotta again champ.
Funny thing is that whole yotta situation aint new, he's been known the controversy around that
Where are property owners taking low-ball offers for rent due to competition? I've only ever heard stories of buildings staying vacant because the owners would rather lose money on an empty building than risk lowering the area's average rental price.
Here in SWFL there are many rentals with price drops.
Here in Oakland landlords are offering 1-3 months free rent for new leases.
@@scrumptiousjdp 1-3 months free for new lease is a marketing strategy and not owners accepting lowball rent.
hows yotta doing?
Don't forget tax deductions and the capital gains exemption for a primary residence when you sell. All your stock earnings will be at your capital gains rate, which they're currently trying to send to the moon.
Also if you own your own home you can take out property backed loans and then use the funds for investment purposes, whereas the same can not be done for a rental property.
DAMN GRAHAM!!! YOUVE BEEN EXPOSED LITTLE MAN!!! 😂😂😂
Don't be confuse buying the dip in a bear market, with guaranteed future returns. Just because that company is down 60%+ from ATH does NOT make it a sound long-term investment. Make sure you're investing in great companies. kudos to Mark woodruff .
Bitcoin is the future.
Please I need help with trading, any recommendations?
i subscribe for yotta video
cant wait for the typed up response video
You've got a lot more defending to do to save your reputation.
Rent is the most you will pay … a mortgage is the least you will pay
Sure but a mortgage ends but rent is forever
@@xmusic2049not the upkeep, property taxes, and insurance.
@@jonpeterson4309 And none of that is that expensive compared to paying rent every month.
@@xmusic2049they don’t get the point friend , owning is king renting is paying forever who owns ❤
You got any more of the Yotta to sell?
What are you gonna do regarding YOTA. FIX IT
First saw you on here about 6-7 years ago. I always had slime ball vibes from you, and I now know my gut was right.
Thanks for the advice, gonna make a yotta money with it
Yotta!!!
This obviously applies only to prices at this very moment in time. Once rates go down and eventually homes aren’t 7 times the average annual salary, buying will once again be the better option. Hence why 60% of the market who bought at a 4% rate or lower, came out ahead of renters. Buying is usually the better option. Right now when inflation and interest rates are super high, obviously isn’t the best time to buy
So the house prices should fall at least 2x for it to make sense again
yes but we live “at this moment in time”
@@tobyk5149 yes, but information like this can be misleading. Especially if you live in an area that isn’t as inflated. There are Cities around the county that have much more affordable housing and the rent to buying gap is much smaller. If you come across a home that’s unusually discounted, jump all over it.
True
For those of you just seeing this channel, Graham Stephan is a serial scammer. He's a proud co-owner of the largest scamming company (Yotta).
Best scamtuber 2024 ! 🎉Congrats !
Omg, look at the engagement. I wonder what happened. Is like someone bought a bank.
I cant rent or buy, Yotta gotta my money
As a home owner, and real estate investor I've learned you can't trade up to your "dream home" until you start with BUYING your starter house (which no one seems to want anymore). We bought a primary residence twice. Once RIGHT before the Great Recession hit us, and once in the midst of it. Both times buying a home immensely benefited us for different financial reasons. A close family member, however, continues to rent with family and eagerly wait for the "right time" to buy. He'll never get out of a three bedroom overpriced house at this rate having to move every few years. Buy what you can afford as early as you can and trade up eventually. Time and the long game is of the essence.
First FTX, now this. You’ve really lost your credit Graham
I find it hilarious that Taylor Swift of all people actually cares about her audience and carefully vets every sponsorship she has with companies so she doesn't sponsor a company that can hurt her audience.
good job helping people lose a lot of money!!!
Yotta
Anybody knows where to see his old Yotta promotion video?
Deleted the video about you "buying a bank" (Yotta) did ya?
What we really want to know is what happened to that bank you were an owner of? Seems like people can't withdraw money? Lots of lives being ruined wonder who will have to answer for that.
Graham what do you actually know about finances? The way you carry yourself compared to the holes you buy into are very different
We are screwed. We are screwed if we rent and we are screwed if we buy.
Can some1 slap some sense in this boy
Graham you need to revert back to Yotta as the sponsor. These new ones ain’t cutting it like them
You carefully dodged the refinance argument lol. If you buy now and refinance at a lower interest rate, the OVERWHELMING likely hood is that your fixed costs will go down and your property value will go up because everyone is buying because interest rates came back down to earth
Problem with that logic is it assumes the rate will decrease. We are unlikely to see the low interest rates of 3-4% again for a long time, if ever again.
hey graham, i heard u own a bank
Hey Graham My names Tyler Brown, Ive been watching your videos since i was 16. Im from STL Missouri and, you've had a massive impact on my life. Ive watched almost every single video you've made. Im following your life plan to a T. Not only do I have a 750 credit score at 19, But I also have a sizable amount of money invested in stocks. A large amount of that is due to your videos!! I also got my real estate license like you and am hoping to start looking for my first brrrr property within the next year or so. Hell of a time to get my real estate license right. Anyways thank you for all the advice! I hope all it well!
Make content on TH-cam. It’s a slow grind but it pays off if you do it right!
You’re
Gonna crush it because you are paying attention and learning!
You should go buy houses and rent them to people. Lol 😂
Thank god I stopped watching this many years back. Happy to have made my own financial decisions and even happier to have learnt that most of the things that TH-camrs promote are either scams or misleading.
It’s the Yotta spokesman😂
Keep taking advice from this dude👍 He is legit🤣