For all of us STILL holding out strong reminder !! When it does normalize and it already started !! (Least for me in FL) we are going to get the best out of our homes ! And remember you can lower the interest rate with a refinance but you can’t increase the value of home in less than 5 years to compensate for over paying !
@@Dsrterra As long as you keep it like Javier said you “should” be good. Unless you paid 100-200K over there is no saving you LOL (which most did) But for most of us, first home is never a forever home, just a stepping stone. 🤷🏽🙏🏼
It depends where you live. Two years ago we bought our house for 390k. Worse houses in the area have sold for 430-470 in the same section in the last 3 months at the crazy interest rates vs the 2.7 when we bought. Some markets are still going up.
It is difficult to make exact projections for the housing market as it is still unclear how quickly or to what degree the Federal Reserve will reduce inflation and borrowing costs without having a substantial negative impact on demand from consumers for anything from houses to cars.
I recently sold my home in the Boca Grande area and am considering investing a lump sum into the stock market before the anticipated rebound, couple of folks have been discussing a potential May rally, speculating on which stocks may experience substantial growth during the festive season. Do you have any insight into which stocks these might be?
Don't depend your market assessments and decisions on hearsay and rumors; I did it in 2020 and ended up with worthless market holdings. Before I started noticing any notable improvements in my portfolio, and I had to completely rebuild it. I've been using the same advisor ever then, and in just two years I've scaled up to $876k. Depending on where you look, a bullish or down market might both produce good profits.
NATALIE NOEL BURNS' is the licensed coach I use. Just research the name. You'd find necessary details to work with a correspondence to set up an appointment.
NATALIE NOEL BURNS' is the licensed coach I use. Just research the name. You'd find necessary details to work with a correspondence to set up an appointment.
As a realtor in my opinion, a housing market crash is imminent due to the high number of individuals who purchased homes above the asking price despite the low interest rates. These buyers find themselves in precarious situations as housing prices decline, leaving them without any equity. If they become unable to afford their homes, foreclosure becomes a likely outcome. Even attempting to sell would not yield any profits. This scenario is expected to impact a significant number of people, particularly in light of the anticipated surge in layoffs and the rapid increase in the cost of living.
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.
My advisor is Julie Anne Hoover , a renowned figure in her line of work. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market.
@@theresahv I appreciate you sharing this. When I looked up the woman you named and read through her credentials, it was obvious that she was a complete professional. I just need her to respond to the message I wrote her.
Those advising my husband and me to delay our house purchase due to anticipated price declines have inadvertently led to our exclusion from the local housing market. The average cost of a three-bedroom semi-detached house now exceeds $350,000 in our area. Would you recommend refraining from home buying and instead diverting investments into stocks for the time being?
In today's economy, stocks outperform real estate, providing dynamic, liquid investments with diverse growth potential. Their flexibility is crucial for navigating economic challenges, unlike the less adaptable real estate market.
In my opinion, home prices will need to fall by at least 40% before the market normalizes. If you are unsure whether if to remain in the real estate market, it is best you seek guidance from a well-experienced advisor for proper portfolio allocation. So far, that’s how I’ve stayed afloat over 5 years now, amassing nearly $1m in ROI.
I can't divulge much but "Stacie Lynn Winson’’ is the advisor that oversees my portfolio. She's an extremely intelligent person, very thoughtful, cautious, and has an outstanding credentials, it's easy to find her on the web.
Thanks for sharing, could easily spot her site just after inputting her full name on my browser, she replied to my inquiry and we were able to schedule for an introductory business call. I find her highly qualified.
With rates climbing like never before in ’23 coupled with uncontrollable inflation, and our own mortgage at now 7.5% what are the best alternatives/strategies for avoiding a crunch and maximize my $600k savings other than moving in to an RV with my two kids and wife.
You are correct! Opportunities to maximise profit may exist in the current market, but you need to be a qualified practitioner to carry out such successful transactions.
I remember early in 2020 when I was investing on my own, and I nearly lost everything in the March crash. Switched to using a financial advisor and have stuck with her since then. I've been comfortably pulling in $30k to $40k per month.
@@theresahv Please who is the consultant that assist you with your investment and if you don't mind, how do I get in touch with them? My portfolio is in the red waters right now
I encountered Julie Anne Hoover through my wife, and I emailed her. She is guiding me. Since then, she has given me chances to buy and sell the stocks in which I'm interested in. You can hunt her up online if you require care supervision.
@@theresahv I greatly appreciate it. I'm fortunate to have come upon your message because investing greatly fascinates me. I'll look Julie up and send her a message. You've truly motivated me. God's blessings on you.
When I bought my house in 1999, I never knew home prices could be so volatile. Interest rates can change very fast also. I paid 121k +18k for a pool. I saw my home value go up to 311k in 2008, then came crashing down to 85k in 2010. I had a 445k offer in July 2022 but couldn’t agree on all the terms. I’m still here today enjoying my home. My initial interest rate was 7 1/2%, then two years later I refinanced at 5 3/8%, then 12 years later I refinanced at 4.125%. A house is a long term asset, not a stock that you trade. With our government manipulating interest rates down, then up aggressively, and many other players involved (ibuyers/flippers, investors/Airbnb’s, mutual funds/reits, other financial institutions), it’s a real shit show. It makes it very difficult for a family to buy or sell a house. Be careful out there.
Absolutely. The issue is that people have been brainwashed into thinking about homes as an asset that they will sell in the short term instead of a place to live and keep for the long term.
@@42onthree The offer was 445k and he wanted me (the seller) to make 100% of the down payment. I offered to pay 6k of the 14k down payment and he rejected counter offer. We were in a strong sellers market. It’s not the sellers responsibility to make the down payment, it’s the buyers. It could have a significant drop like that, but if it does I’m definitely not selling. I’ll just wait till it goes back up. I don’t care if it takes 5 or 10 years. I like my house.
The effects of the downturn are beginning to sink in. People are being impacted by the long-term decline in property prices and the housing market. I recently sold my house in the Sacramento area, and I want to invest my lump-sum profit in the stock market before prices start to rise again. Is now the right moment to buy, or not?
Stocks with yields that outperform the market should be on your radar, as should shares that at least lag the market over the long term. But if you want a long-term strategy that works, I advise you to consult a broker or financial advisor.
@Brilliantrans Thats a good one. I know a lot of folks that made fortunes from the Dotcom crash as well as the 08’ crash and I’ve been looking into similar opportunities in this present market. Could this coach that guides you help?
@Brilliantrans Thank you for this tip. It was easy to find your coach. Did my due diligence on her before scheduling a phone call with her. She seems proficient considering her resume.
Good for you guys. I lost all but one where the owner counter offered me and I walked away. He ended up selling it for 10grand less than what I had initially offered in 2022.
I had 1 month to get a house because my lease was up.They are increasing it by 600. We are outbid 6 times from 70k-120k. We offered 40k over asking and got the house. Now my house price 20k under what I paid. Considering my interest is at 3.85 vs 7%, I dont mind. If I would of bought it at 7% mortgage would of cost meat least 2k more a month. It depends on why you are buying the house. For us, it was because our son had cancer and we want him to have a home where we dont have to more no more. He is no longer with us but I dont regret buy the house.
we did the same. We walked away from the first one when the owner tried to get us involved in a bidding war. The second house, we also refused to pay more when an inspection revealed some issues the seller refused to take care of. That seller reconsidered juat a 1//2 hour before midnight when the offer would expire. So we did end up with the home we bid on, but do have some issues to take care of.
Pay it off. Eventually due to inflation, a locked in mortgage will seem like penny's in a few years. In 1 lifetime my grandpa bought his house for 10k, could easily sell in the 300's today. Never would, and hopefully it will stay cheap and in our family for the future generations. My parents bought and sold homes for years, now they have no money and no houses to leave anyone. Basically just paid rent from place to place
It’s psychological. The money is less real than your budget for the house and the house itself. Real estate is a long term play. The house is still the house no matter how much the value of the money fluctuates
I believe the housing market has been highly overpriced. There are different factors. Some of it is more buyers than sellers. People get in bidding wars over a home. Most homes sell within 2 weeks. Then if vou want land in the country between the rich folk and China who are paying way to much for property they make it impossible for average people to purchase in the country. It's going to implode because all the people who paid a premium for house's are a paycheck away from losing those homes. Look at the trucking company that just went out of business. How many of those employees will lose their homes. Look at other big companies that announced layoffs. Housing will be taking a big hit and prices will drop
I bought a house with cash in 2021. The insurance and property taxes have doubled since then, and now costs more than I ever paid in rent in my life. I feel that I would be better off living in a studio apartment in a warehouse again and investing the money in anything else.
Investing in stocks can be a wise decision, especially if you have a dependable trading system that can lead to successful outcomes. Personally, I've been working with a financial advisor for about a year now. Starting with less than $200K and I'm now just $19,000 away from making half a million in profits
@@mikeroper353 I think this is something I should do, but I've been stalling for a long time now. I don't really know which firm to work with; I feel they are all the same. Is there any chance you could recommend who you work with?
I'd recommend Colleen Rose Mccaffery. She is a genius when it comes to diversifying her holdings. You can verify her identity for yourself by looking her up online. She is well knowledgeable about the financial market
@@mikeroper353 Thanks for sharing, needed this myself. I just looked her page up online and I would say she really does have an impressive background on investing
This is the correct idea. If his payment is less than local rent for same size property then he is fine and shouldn’t sweat it. Also it’s a lesson to only buy real estate for long term purchase.
My man, it doesn’t matter if you’re buying a home to live in it. That’s the issue if you’re trying to sell and make a profit, everyone wants to make money off of their primary residence by selling quickly hoping it appreciated in value. Just live in your home and be grateful
If you keep your house for long term it doesn’t matter what it’s worth. Pay it down and gain equity. Bought our 1700 sq ft 3 bed 2 bath house for $185k at 10.25% could barely afford mortgage, we worked 2-3 jobs and raised kids in it. Road the interest rate down. House is paid off and now worth $1.2 mill still not moving or selling. We love our town and where we live. Be content ❤
We purchased our brand new home in northern California in 2016 for $356K. Its value has been all over the place. The value now sits at $685K, with a interest rate at 3.25% we aren't going anywhere!
My first house's value back in 1991 fell for the first couple of years, but we did not need to sell it for 7 years, and when we did sell to upgrade, we made money, and it was all good. I laughed at all the articles at the time where people were trying to get out of the "underwater" mortgages. Just keep living int he house, make memories, and in 7-8 years, when you sell, you will be just fine.
@@theonewhoknocks2835then he just has to wait another 7-8 years. And in the meantime he’s got a house over his head and a consistent mortgage payment. Dudes be tripping
Basically, if you’re not gaining equity in a home then it’s a loss. Having the value of the property back up to what you paid for it 10 years ago is a loss even if you made no improvements to it.
Buddy Buddy, the folks with the higher interest rate can always refinance to a lower rate when they come down. The underwater folks are in a much different situation 😬.
I sold for 7k less than what I paid Bought a 3br in 1989 for 135k Sold it 2000 for 128k This was after installing some really nice triple pane sliders in the front 5k for that update New Kitchen Floor 1k New ClothesWasher 1k New Wood Stove 500 IT WAS THE LOCATION!
As a seasoned real estate investor myself and former mortgage professional, long run its always better to pay the lower price with the higher rate due to cyclical nature of rates. Rates will drop quickly. Once rates start dropping home values start to increase again and previous buyers will be refinancing. The average person refinances their mortgage loan four times in their lifetime, so this borrower will not be keeping the loan at 5%. Both borrowers in your scenario will be refinancing their loan, however borrower #1 will have to wait longer for the appreciation of their property to get out of being under water and potentially refinance. Maybe 2 to 3 years longer than borrower #2 . Borrower #2 saves 60K upfront on the purchase price and 2 to 3 years of lower interest payments because he will refinance first.
Sadly, this is going to be going on from here forward since the prices were so inflated due to the low interest rates. Hang in there, since housing does fluctuates and you will right side up eventually.
that mean they are investors. If they truly love the house and can pay for mortgage. I feel like it's better for me when my house value is not too high. because lower price value, I pay less property tax
All that time in April-May 2022, realtors were screaming, "Buy now before it is too late! Always a good time to buy!!" And now....watch those prices continue to fall, and fall, and fall..... Just getting started.
Hang in there build your family life stay put. Hopefully your family has good employment. If no move in with in-laws. Rent it out. Just remain calm and do not give up your home due to fear.
A house is a never ending expense. You have to pay a ton of interest so the bank doesn’t take it away. You have to pay a ton of taxes so the government doesn’t take it away. You have to pay insurance in order to pay the bank in case nature takes it away. You have to spend money on maintenance so it doesn’t fall apart on you. None of these expenses add any value to the house. It’s just wasted money. It always amazes me when somebody claims they made a profit on the sale of their house… yeah, by not subtracting all the expenses they wasted money on over the years from the proceeds of the sale.
Minor nitpick: To make it fair I would input the same amount cash down (22,000), not 5%. Or possibly more money down if renting for another year meant they could get more savings. They're not in that bad of a situation though, and should be just fine if they can hold the home longer term.
From a long term perspective it’s all trivial… psychology we all deal with it but it’s really not worth stressing about unless your payment is completely distorted.
Those were the good times I know someone who got a house in 70’s for 20k in NYC that’s worth about 5M now and she was a LPN that would never happen in this day and age she wouldn’t be able to buy as a LPN
You’re only underwater if you sell the house. Keep it long term. Not sure why folks keep looking at their house value if they’re not planning in selling. I see house values as stock, it’s only realized if you sell. A little different with homes but still.
the cost of maintaining a house doesn’t stay flat, it just keeps getting more expensive every year. Plus the time sink of mowing the lawn, fixing the sink etc etc. If u enjoy doing that stuff, great. If not, you’re also spending ur time, not just ur money over the years
My wife and I bought a 3/2 for $155k in 2020 and I saw value estimates as low as $149k since then. Starter houses in move-in condition don’t go much cheaper than that around here though so I don’t think we should experience the worst of the crash.
I am not sure why people expect their home price to never drop. Stock and other investments go up and down, same with real estate. Pick your time to buy and to sell carefully.
I just overpaid by $50k but I plan to live there for a long time and now I can pay down the mortgage instead of paying land lord more every year. The only thing that matters is if you can easily pay the payment or not, don’t stretch your monthly budget or sacrifice 401k for a house.
2 years ago, while everyone was overbiding each other, I found a deal and brought it down from 465k to 315k. If you are creative, nothing can stop you! Don't follow the heard.
I did the same underbid in 2021 from 359k to 335k and got a half the cost of a bay window covered (it was shot). It’s the end of a quiet culdesac and the only house on the street with a double lot. Never underestimate the power of negotiation.
When people are tripping over themselves to buy a house you know you're in a mania and should sit it out, nothing is ever static in any market, things change.
Unless money is NO problem you will NEVER find me bidding on anything especially a home. Being underwater on anything has to hurt. I work too hard for my money to play myself due to impatience.
5:50 the scenarios with high rate/low price vs low rate/high price shouldn’t be compared like this, because you can re-fi later out of a high rate but not a high price. Also, the higher rate means a bigger tax break, and it means that overpayments reduce the total out-of-pocket by more.
you won't hit the 24k standard deduction for itemizing until 2025 when the Trump tax cuts for the rich roll back and your standard deduction goes back to 12k and your rates go back up.
@@Katadori09 yeah kinda true? the interest in years 1-6 would be much higher than in years 7-20 probs. Also the second, interest rates go down, ur gonna have eager millennials tryna out bid each other
@@Shi-Fi we're comparing it to a scenario with a higher house price and lower rate. The payments for years 1-6 are similar, except they never get to refi in year six. I'm always surprised when people predict that Millennials are going to ride in to the rescue of the housing market if rates drop. FIrst of all, rates will drop when the economy is crashing and the Fed is trying to rescue it. Otherwise, the Fed has no reason to lower rates. That means everyone will be afraid to ride in, just like we saw a decade ago. Secondly, Millennials aren't that wealthy, and they're badly indebted. One in four of them are still living with their parents, even now after the employment and wage boom. We're talking about 40 year olds here! And to add insult to injury, their college debt payments are about to turn back on. Thirdly, they are going to be competing with the deaths or retirement-rehoming of Boomers, which are a similarly sized generation. That will add a big boost to inventory. Boomers turn 82 in about 5 years, which is when they typically have to go to retirement homes.
We did NOT buy a house when prices went insane even though we really, really needed to because I was like oh HECK no to those prices. Like who watches home prices skyrocket and thinks it’s the time to buy?? 🤦♀️
For real. If you people kept saving during that time, they would have a nice down payment by now. Could get a house for a good price and have a significant down payment
Probably people like me who didn't have a choice regarding their current toxic living arrangement that wasn't working out and all of the mental abuse that went with it, thank you very f*cking much
@@MyerShift7 I sympathize with you regarding the toxic living arrangement. But you don't have to purchase a house to get out of a toxic living arrangement. Renting is always an option as well.
I laugh at those that blame a realtor, a mortgage lender, or a competing offer for their bad decision. It’s YOU who ultimately makes the decision and signs the docs. Take responsibility. Be an adult. Live and buy within your means.
This is a great video with the main financial factors included in the analysis. Another factor for people that are buying their first home after renting is that if one's house value drops after buying, they have to consider the money they would have paid in rent starting from their closing date on the house transaction. Subtract at least some of this amount from the purchase price. With high inflation over the last couple of years, rent has gone up as well.
I think it’s better to buy at high interest rates, because it drives down the principal price. When they drop interest rates again you can refinance at a lower rate, and bought it for a lower price (smaller loan amount and lower interest rates).
@@ETube37 This is only more fuel for the Fed to increase rates further. The cracks will start to show soon. Some markets have already taken a huge nose dive
Hey Javier, First off, I love your content. I have seen a bunch of your videos and they have answered quite a bit of questions for me. That said, I went through your playlist and couldn't find this topic, so I am hoping you can either point me to one, or perhaps, entertain the idea of making this video. My wife and I have recently started looking for a house within South Bay Area (San Jose, Santa Clara, Palo Alto, CA) - here is the issue, putting aside how ridiculously greedy the prices are here, one thing we noticed is every house under $1.2 Mill (since we didnt look at higher prices - to be clear, we cant even afford an $800k house we just got curious going up to 1.2M) have issues. Any house under $800K is a massive fixer upper, anything 800-~1.2 mill, still has a bunch of damage or property issues that need permits, etc to be taken care of immediately after the sale. And with people selling "as is" since the sell is almost a guarantee, the buyer becomes liable for those expenses. So, is there any chance you have, or can make a video, in regards to realistic savings needed for: A - Downpayment and closing costs B - Immediate repairs (roof damage, termite damage, mold, etc) C - Permits (garage converted to a bedroom/living room, shed build in the back garden, etc) Because, my wife and I do have our down payment ready, assuming we manage to win a bidding war, we can purchase a place, but the second we do, regardless of what we buy in the area, we seem to be looking at $100k plus in immediate costs to bring the house to a safe livable/legal state.
What difference does it make? If you're going to live in the house, who cares what its nominal value is? Is your net worth on paper that important? Live in and enjoy the house!
We bought our 1265 sqft home in 2013 for $440 thousands. Our new next door neighbor bought their similar sized home for $1.25 millions last year. On paper, our home was worth roughly $1 million or more in 2012. The point here is, doesn't matter if one is underwater or have a nice gain if living in it without a plan to move. If my new neighbor lives in the house and aren't hoping to make a quick buck after two years, then they shouldn't worry if the value of that house dropped below their purchased price. Over time, the price could be back up eventually.
This fool believed his agent, that was his first mistake. I can't believe how many people were stupid enough to get into these idiotic bidding wars on properties that THEY KNEW were already overpriced. As a buyer, your agent is not your friend! They want the biggest commission they can get, period.
Even if they’re underwater it’s not by much. It’s only $27000 more than asking. We overpaid too! We went $100k over list price. Super over inflated but we needed a place and we’re still able to afford it. I kind of regret it but it is what it is. If you’re keeping it long term, don’t think too much about being over water.
They made an emotional decision and overpaid. If they think they can make the payments then it was the best decision. Being underwater is just a temporary setback.
I believe scenario 2 assumes they kept a 7% interest rate for all 30 years, which could happen, but I think most people believe that rates will fall at least 1% lower over the next 30 years. If rates fall, scenario 2 could potentially and probably would still have been better. But overall, I agree. They paid too much but they did what they had to do to get their house and if they keep it for a long time, what seems like a big deal now probably won’t end up being so significant in the long run.
If you plan on moving in less than 7. This market will wipe you out If you plan on living 7-10 years you’ll be ok If you plan on never selling, you’ll be amazing. Problem is most people move around 5-6 years after they purchase, which is part of the reason why 08 was so bad. So many people underwater. Just like the car market now.
1 year ago I bought a house that was $565k. I paid $600k to get the house. When I seen the interest rates changing, I freaked out and sold it. Thinking the market was going to go down. I sold it to someone after owning if for 1 year for $625k. That means in 1 year it went from $565 to $625k only from over paying .. now I have cash that makes me 2k I'm interest as I wait
That’s a real small percentage actually , in 2021 we lost like 40-50% in our stock portfolios . But the overpaying for something sucks , but overtime the market does go up not down so you will be good overtime !
Realtors inability or malicious refusal to understand market forces is exactly why housing continues to bubble and pop. Never trust anyone whose incentive is to make commission off your purchase. They have no fiduciary responsibility and the only thing that matters is they get paid when the transaction is done.
What about property taxes? Would that make a considerable difference if buying 100k +/- over the course of the loan and beyond? Possibly making the lower price but higher interest a better value in the long run? I guess it also depends on which state. I know Texas is really high, but Nevada pretty low, et c.
My sister paid over $50,000 asking for her house out in oregon, I told them that was a bad call but now it's up almost $100k and they got it reappraised to remove the PMI since buying it in 2021...not sure how long that will last, but this whole housing market is nuts right now.
Property tax in my county is at 2.4%, so we would have a much much higher payment for a house of that price. Probably over $3,000 a month with property taxes, even putting 20% down. I think they are in a good position!
A home, especially a decent one at a good monthly payment is stability. I couldn't fathom selling unless I had other homes bought already. Prices can swing all they want. Nothing beats not "having" to buy because you know it will be cheaper and sometimes a lot better than renting.
If you look at prices of homes over the span of ten years, they always tend to rise. I would recommend to Ignore the current price if you plan on living in your house for the long run.
It’s like stocks, I don’t care what it’s worth until I sell it, same thing for a house, you still own the asset. It’s only a problem if you sell at a huge loss. Unfortunately, like the video said you will be “stuck” for probably at least 7 years.
A woman from Toronto bought a shack, literally a one floor shack that was gussied up, for 650g 3 hours east in the height of the coof real-estate nonsense. This thing shouldnt have been worth more that 100g. I heard last month she is crying about it with her massive monthly mortgage payment and her brain started working again and she now knows she bought a pile of junk and will never see her money again.
I bought a big new house for 100k less than what it sells for now in 2020 with a 2.25%, but I’m stuck here now as moving into these stupid high rates is financial suicide
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For all of us STILL holding out strong reminder !! When it does normalize and it already started !! (Least for me in FL) we are going to get the best out of our homes ! And remember you can lower the interest rate with a refinance but you can’t increase the value of home in less than 5 years to compensate for over paying !
Keep holding out I’ll stick with my 3% interest 😆
Haha I know right
@@Dsrterra As long as you keep it like Javier said you “should” be good. Unless you paid 100-200K over there is no saving you LOL (which most did)
But for most of us, first home is never a forever home, just a stepping stone. 🤷🏽🙏🏼
It depends where you live. Two years ago we bought our house for 390k. Worse houses in the area have sold for 430-470 in the same section in the last 3 months at the crazy interest rates vs the 2.7 when we bought. Some markets are still going up.
I hope you don't plan on buying near the coast. Climate change will wreak havoc on FL over the next few decades.
It is difficult to make exact projections for the housing market as it is still unclear how quickly or to what degree the Federal Reserve will reduce inflation and borrowing costs without having a substantial negative impact on demand from consumers for anything from houses to cars.
I recently sold my home in the Boca Grande area and am considering investing a lump sum into the stock market before the anticipated rebound, couple of folks have been discussing a potential May rally, speculating on which stocks may experience substantial growth during the festive season. Do you have any insight into which stocks these might be?
Don't depend your market assessments and decisions on hearsay and rumors; I did it in 2020 and ended up with worthless market holdings. Before I started noticing any notable improvements in my portfolio, and I had to completely rebuild it. I've been using the same advisor ever then, and in just two years I've scaled up to $876k. Depending on where you look, a bullish or down market might both produce good profits.
How do I reach out to a financial advisor, my portfolio has been struggling since 2022 and I’ve been holding on by the skin of my teeth.
NATALIE NOEL BURNS' is the licensed coach I use. Just research the name. You'd find necessary details to work with a correspondence to set up an appointment.
NATALIE NOEL BURNS' is the licensed coach I use. Just research the name. You'd find necessary details to work with a correspondence to set up an appointment.
As a realtor in my opinion, a housing market crash is imminent due to the high number of individuals who purchased homes above the asking price despite the low interest rates. These buyers find themselves in precarious situations as housing prices decline, leaving them without any equity. If they become unable to afford their homes, foreclosure becomes a likely outcome. Even attempting to sell would not yield any profits. This scenario is expected to impact a significant number of people, particularly in light of the anticipated surge in layoffs and the rapid increase in the cost of living.
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.
@@theresahv Do you mind sharing info on the adviser who assisted you?
My advisor is Julie Anne Hoover , a renowned figure in her line of work. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market.
@@theresahv I appreciate you sharing this. When I looked up the woman you named and read through her credentials, it was obvious that she was a complete professional. I just need her to respond to the message I wrote her.
Those advising my husband and me to delay our house purchase due to anticipated price declines have inadvertently led to our exclusion from the local housing market. The average cost of a three-bedroom semi-detached house now exceeds $350,000 in our area. Would you recommend refraining from home buying and instead diverting investments into stocks for the time being?
In today's economy, stocks outperform real estate, providing dynamic, liquid investments with diverse growth potential. Their flexibility is crucial for navigating economic challenges, unlike the less adaptable real estate market.
In my opinion, home prices will need to fall by at least 40% before the market normalizes. If you are unsure whether if to remain in the real estate market, it is best you seek guidance from a well-experienced advisor for proper portfolio allocation. So far, that’s how I’ve stayed afloat over 5 years now, amassing nearly $1m in ROI.
Certainly! Can you recommend the expert you've consulted for their services? I struggle with identifying suitable investments for my portfolio.
I can't divulge much but "Stacie Lynn Winson’’ is the advisor that oversees my portfolio. She's an extremely intelligent person, very thoughtful, cautious, and has an outstanding credentials, it's easy to find her on the web.
Thanks for sharing, could easily spot her site just after inputting her full name on my browser, she replied to my inquiry and we were able to schedule for an introductory business call. I find her highly qualified.
There are mainly two times where the value of your house matters, 1) when you buy 2) when you sell.
2) only if you aren’t buying a new one
When home taxes are looked at
One of the two you don’t control, and it happens to be 2)
Wow! Thanks for sharing your expert real estate knowledge!
@@vegacultura Very true, but the tax value is calculated different from what the actual market value is (and you can also challenge that).
Man, you saved this family a ton of heartache. That was nice of you to do the math for them. Way to go, I love your videos.
this is your future learn to love it... THREADS
With rates climbing like never before in ’23 coupled with uncontrollable inflation, and our own mortgage at now 7.5% what are the best alternatives/strategies for avoiding a crunch and maximize my $600k savings other than moving in to an RV with my two kids and wife.
You are correct! Opportunities to maximise profit may exist in the current market, but you need to be a qualified practitioner to carry out such successful transactions.
I remember early in 2020 when I was investing on my own, and I nearly lost everything in the March crash. Switched to using a financial advisor and have stuck with her since then. I've been comfortably pulling in $30k to $40k per month.
@@theresahv Please who is the consultant that assist you with your investment and if you don't mind, how do I get in touch with them? My portfolio is in the red waters right now
I encountered Julie Anne Hoover through my wife, and I emailed her. She is guiding me. Since then, she has given me chances to buy and sell the stocks in which I'm interested in. You can hunt her up online if you require care supervision.
@@theresahv I greatly appreciate it. I'm fortunate to have come upon your message because investing greatly fascinates me. I'll look Julie up and send her a message. You've truly motivated me. God's blessings on you.
When I bought my house in 1999, I never knew home prices could be so volatile. Interest rates can change very fast also. I paid 121k +18k for a pool. I saw my home value go up to 311k in 2008, then came crashing down to 85k in 2010. I had a 445k offer in July 2022 but couldn’t agree on all the terms. I’m still here today enjoying my home. My initial interest rate was 7 1/2%, then two years later I refinanced at 5 3/8%, then 12 years later I refinanced at 4.125%. A house is a long term asset, not a stock that you trade. With our government manipulating interest rates down, then up aggressively, and many other players involved (ibuyers/flippers, investors/Airbnb’s, mutual funds/reits, other financial institutions), it’s a real shit show. It makes it very difficult for a family to buy or sell a house. Be careful out there.
Absolutely. The issue is that people have been brainwashed into thinking about homes as an asset that they will sell in the short term instead of a place to live and keep for the long term.
Going to wish you would have taken that 440k offer when it is back below 200k. Enjoy the tomfoolery!
@@42onthree The offer was 445k and he wanted me (the seller) to make 100% of the down payment. I offered to pay 6k of the 14k down payment and he rejected counter offer. We were in a strong sellers market. It’s not the sellers responsibility to make the down payment, it’s the buyers.
It could have a significant drop like that, but if it does I’m definitely not selling. I’ll just wait till it goes back up. I don’t care if it takes 5 or 10 years. I like my house.
And live where at what price point?
I hope this person is enjoying their house with their growing family. That's all that matters
Negative $75,000 😅 jeez he could of start his dream business with that
@@ruen971Or earning 5%+ on it
@@ruen971dream business in what? Selling snow cones?
@@XxChuyoxX he could of been the best snow cone man in his block
@stevemorlock5366no he lost with the high bid
The effects of the downturn are beginning to sink in. People are being impacted by the long-term decline in property prices and the housing market. I recently sold my house in the Sacramento area, and I want to invest my lump-sum profit in the stock market before prices start to rise again. Is now the right moment to buy, or not?
Stocks with yields that outperform the market should be on your radar, as should shares that at least lag the market over the long term. But if you want a long-term strategy that works, I advise you to consult a broker or financial advisor.
@Brilliantrans Thats a good one. I know a lot of folks that made fortunes from the Dotcom crash as well as the 08’ crash and I’ve been looking into similar opportunities in this present market. Could this coach that guides you help?
@Brilliantrans Thank you for this tip. It was easy to find your coach. Did my due diligence on her before scheduling a phone call with her. She seems proficient considering her resume.
I refused to have a bidding war with anyone. I had a max I offered and refused to give a cent over that.
I did the same.
Yup. I looked enough to be able to get an idea if a house would end up in a bidding war. I ended up offering asking and got it (this was in 2021).
Good for you guys. I lost all but one where the owner counter offered me and I walked away. He ended up selling it for 10grand less than what I had initially offered in 2022.
I had 1 month to get a house because my lease was up.They are increasing it by 600. We are outbid 6 times from 70k-120k. We offered 40k over asking and got the house. Now my house price 20k under what I paid. Considering my interest is at 3.85 vs 7%, I dont mind. If I would of bought it at 7% mortgage would of cost meat least 2k more a month. It depends on why you are buying the house. For us, it was because our son had cancer and we want him to have a home where we dont have to more no more. He is no longer with us but I dont regret buy the house.
we did the same. We walked away from the first one when the owner tried to get us involved in a bidding war. The second house, we also refused to pay more when an inspection revealed some issues the seller refused to take care of. That seller reconsidered juat a 1//2 hour before midnight when the offer would expire. So we did end up with the home we bid on, but do have some issues to take care of.
The key is time. Stay in the house and pay the mortgage down. The equity will emerge over time.
Pay it off. Eventually due to inflation, a locked in mortgage will seem like penny's in a few years. In 1 lifetime my grandpa bought his house for 10k, could easily sell in the 300's today. Never would, and hopefully it will stay cheap and in our family for the future generations.
My parents bought and sold homes for years, now they have no money and no houses to leave anyone. Basically just paid rent from place to place
It’s psychological. The money is less real than your budget for the house and the house itself. Real estate is a long term play. The house is still the house no matter how much the value of the money fluctuates
Not being able to pay for a house because you can’t afford it due to extenuating circumstances is psychological too
I believe the housing market has been highly overpriced. There are different factors. Some of it is more buyers than sellers. People get in bidding wars over a home. Most homes sell within 2 weeks. Then if vou want land in the country between the rich folk and China who are paying way to much for property they make it impossible for average people to purchase in the country. It's going to implode because all the people who paid a premium for house's are a paycheck away from losing those homes. Look at the trucking company that just went out of business. How many of those employees will lose their homes. Look at other big companies that announced layoffs. Housing will be taking a big hit and prices will drop
I bought a house with cash in 2021. The insurance and property taxes have doubled since then, and now costs more than I ever paid in rent in my life. I feel that I would be better off living in a studio apartment in a warehouse again and investing the money in anything else.
Investing in stocks can be a wise decision, especially if you have a dependable trading system that can lead to successful outcomes. Personally, I've been working with a financial advisor for about a year now. Starting with less than $200K and I'm now just $19,000 away from making half a million in profits
@@mikeroper353 I think this is something I should do, but I've been stalling for a long time now. I don't really know which firm to work with; I feel they are all the same. Is there any chance you could recommend who you work with?
I'd recommend Colleen Rose Mccaffery. She is a genius when it comes to diversifying her holdings. You can verify her identity for yourself by looking her up online. She is well knowledgeable about the financial market
@@mikeroper353 Thanks for sharing, needed this myself. I just looked her page up online and I would say she really does have an impressive background on investing
If you have no intention or need to move, it doesn’t matter. Especially if it’s close to the cost of rent.
This is the correct idea. If his payment is less than local rent for same size property then he is fine and shouldn’t sweat it. Also it’s a lesson to only buy real estate for long term purchase.
My man, it doesn’t matter if you’re buying a home to live in it. That’s the issue if you’re trying to sell and make a profit, everyone wants to make money off of their primary residence by selling quickly hoping it appreciated in value. Just live in your home and be grateful
My wise aunt told me “you buy your house to live in” during the the 2008 recession and home prices were going down
If you keep your house for long term it doesn’t matter what it’s worth. Pay it down and gain equity. Bought our 1700 sq ft 3 bed 2 bath house for $185k at 10.25% could barely afford mortgage, we worked 2-3 jobs and raised kids in it. Road the interest rate down. House is paid off and now worth $1.2 mill still not moving or selling. We love our town and where we live. Be content ❤
We purchased our brand new home in northern California in 2016 for $356K. Its value has been all over the place. The value now sits at $685K, with a interest rate at 3.25% we aren't going anywhere!
There no benefits in moving. Great job and keep up the good work!
My first house's value back in 1991 fell for the first couple of years, but we did not need to sell it for 7 years, and when we did sell to upgrade, we made money, and it was all good. I laughed at all the articles at the time where people were trying to get out of the "underwater" mortgages. Just keep living int he house, make memories, and in 7-8 years, when you sell, you will be just fine.
in 7-8 years, with this bubble, it's possible he'll lose money, depending on his local market (Austin, Las Vegas, Boise etc. )
91
In NYC people wait 10-20 years for the max value these folks expect thier houses outside of major cities is going to appreciate fast u have to hold
@@theonewhoknocks2835then he just has to wait another 7-8 years. And in the meantime he’s got a house over his head and a consistent mortgage payment. Dudes be tripping
good thing you didn't need to move during that time.
Basically, if you’re not gaining equity in a home then it’s a loss. Having the value of the property back up to what you paid for it 10 years ago is a loss even if you made no improvements to it.
Buddy Buddy, the folks with the higher interest rate can always refinance to a lower rate when they come down. The underwater folks are in a much different situation 😬.
Hard lessons in life..there are lots in the same boat..enjoy your castle
I sold for 7k less than what I paid
Bought a 3br in 1989 for 135k
Sold it 2000 for 128k
This was after installing some really nice triple pane sliders in the front 5k for that update
New Kitchen Floor 1k
New ClothesWasher 1k
New Wood Stove 500
IT WAS THE LOCATION!
Location is key in real estate.
As a seasoned real estate investor myself and former mortgage professional, long run its always better to pay the lower price with the higher rate due to cyclical nature of rates. Rates will drop quickly. Once rates start dropping home values start to increase again and previous buyers will be refinancing. The average person refinances their mortgage loan four times in their lifetime, so this borrower will not be keeping the loan at 5%. Both borrowers in your scenario will be refinancing their loan, however borrower #1 will have to wait longer for the appreciation of their property to get out of being under water and potentially refinance. Maybe 2 to 3 years longer than borrower #2 . Borrower #2 saves 60K upfront on the purchase price and 2 to 3 years of lower interest payments because he will refinance first.
I’m in Jersey…we have high rates AND high house prices with bidding wars…
Sadly, this is going to be going on from here forward since the prices were so inflated due to the low interest rates. Hang in there, since housing does fluctuates and you will right side up eventually.
that mean they are investors. If they truly love the house and can pay for mortgage. I feel like it's better for me when my house value is not too high. because lower price value, I pay less property tax
Excellent Javier! Love how objective and knowledgeable you are! 👏🏼
All that time in April-May 2022, realtors were screaming, "Buy now before it is too late! Always a good time to buy!!"
And now....watch those prices continue to fall, and fall, and fall..... Just getting started.
Hang in there build your family life stay put. Hopefully your family has good employment. If no move in with in-laws. Rent it out. Just remain calm and do not give up your home due to fear.
A house is a never ending expense.
You have to pay a ton of interest so the bank doesn’t take it away.
You have to pay a ton of taxes so the government doesn’t take it away.
You have to pay insurance in order to pay the bank in case nature takes it away.
You have to spend money on maintenance so it doesn’t fall apart on you.
None of these expenses add any value to the house. It’s just wasted money.
It always amazes me when somebody claims they made a profit on the sale of their house… yeah, by not subtracting all the expenses they wasted money on over the years from the proceeds of the sale.
This was gold. Thank you.
I think we're about to see a whole lot more of this.
Watching this video, was thinking the same thoughts, glad you shared this and if you plan on staying in the home the decision was not a bad one.
Minor nitpick: To make it fair I would input the same amount cash down (22,000), not 5%. Or possibly more money down if renting for another year meant they could get more savings.
They're not in that bad of a situation though, and should be just fine if they can hold the home longer term.
Great explanation Javier! I would not have looked at it this way, but amazing, thank you!
From a long term perspective it’s all trivial… psychology we all deal with it but it’s really not worth stressing about unless your payment is completely distorted.
This is the best real-estate channel I have ever comeacross..I'm pushing ur content out to everyone I know..thks man😊
my neighbor she bought her house in 1965 for $12k she never sell her house now her house worth $761k.
Wow
Those were the golden years when someone earning minimum wage can save to buy a home
Those were the good times I know someone who got a house in 70’s for 20k in NYC that’s worth about 5M now and she was a LPN that would never happen in this day and age she wouldn’t be able to buy as a LPN
@@rayng8932 not really. Minimum wage in 1965 was $1.25. Mortgage rates was in the 7%-8% range. 20% down was almost always required.
@@JBoy340anot really?? Really? You are an absolute dunce
Is not that bad. You still bought at 3 percent. You still have a better monthly payment then if you bought now
Love this content! ❤ Makes a lot of sense and you’re doing a great thing bringing rational when people panic❤
You’re only underwater if you sell the house. Keep it long term. Not sure why folks keep looking at their house value if they’re not planning in selling. I see house values as stock, it’s only realized if you sell. A little different with homes but still.
the cost of maintaining a house doesn’t stay flat, it just keeps getting more expensive every year.
Plus the time sink of mowing the lawn, fixing the sink etc etc. If u enjoy doing that stuff, great.
If not, you’re also spending ur time, not just ur money over the years
My wife and I bought a 3/2 for $155k in 2020 and I saw value estimates as low as $149k since then. Starter houses in move-in condition don’t go much cheaper than that around here though so I don’t think we should experience the worst of the crash.
I am not sure why people expect their home price to never drop. Stock and other investments go up and down, same with real estate. Pick your time to buy and to sell carefully.
Great breakdown of the actual meat and potatoes of the data. I'll keep my sub 3 interest rates over lower prices every day of the week.
I just overpaid by $50k but I plan to live there for a long time and now I can pay down the mortgage instead of paying land lord more every year.
The only thing that matters is if you can easily pay the payment or not, don’t stretch your monthly budget or sacrifice 401k for a house.
Bahahahaha you know 90% of your payment go to your Bank landlord ? 😅, especially with this apr
@@nguyenpham7965 Doesn't he get some of his interest payment back on federal taxes?
2 years ago, while everyone was overbiding each other, I found a deal and brought it down from 465k to 315k. If you are creative, nothing can stop you! Don't follow the heard.
Really? 2021 you were able to underbid. Was the basement used to be a meth lab?
I did the same underbid in 2021 from 359k to 335k and got a half the cost of a bay window covered (it was shot). It’s the end of a quiet culdesac and the only house on the street with a double lot. Never underestimate the power of negotiation.
When people are tripping over themselves to buy a house you know you're in a mania and should sit it out, nothing is ever static in any market, things change.
Unless money is NO problem you will NEVER find me bidding on anything especially a home. Being underwater on anything has to hurt. I work too hard for my money to play myself due to impatience.
I will bid what I think a house is worth to me or bid slightly lower for negotiation start. It's a business transaction to me.
5:50 the scenarios with high rate/low price vs low rate/high price shouldn’t be compared like this, because you can re-fi later out of a high rate but not a high price. Also, the higher rate means a bigger tax break, and it means that overpayments reduce the total out-of-pocket by more.
you won't hit the 24k standard deduction for itemizing until 2025 when the Trump tax cuts for the rich roll back and your standard deduction goes back to 12k and your rates go back up.
refi in like 6 yrs maybe
if you could be in a scenario with a lower price and a lower rate after only 6 years out of 30, that would be amazing.
@@Katadori09 yeah kinda true? the interest in years 1-6 would be much higher than in years 7-20 probs. Also the second, interest rates go down, ur gonna have eager millennials tryna out bid each other
@@Shi-Fi we're comparing it to a scenario with a higher house price and lower rate. The payments for years 1-6 are similar, except they never get to refi in year six.
I'm always surprised when people predict that Millennials are going to ride in to the rescue of the housing market if rates drop. FIrst of all, rates will drop when the economy is crashing and the Fed is trying to rescue it. Otherwise, the Fed has no reason to lower rates. That means everyone will be afraid to ride in, just like we saw a decade ago.
Secondly, Millennials aren't that wealthy, and they're badly indebted. One in four of them are still living with their parents, even now after the employment and wage boom. We're talking about 40 year olds here! And to add insult to injury, their college debt payments are about to turn back on.
Thirdly, they are going to be competing with the deaths or retirement-rehoming of Boomers, which are a similarly sized generation. That will add a big boost to inventory. Boomers turn 82 in about 5 years, which is when they typically have to go to retirement homes.
We did NOT buy a house when prices went insane even though we really, really needed to because I was like oh HECK no to those prices. Like who watches home prices skyrocket and thinks it’s the time to buy?? 🤦♀️
For real. If you people kept saving during that time, they would have a nice down payment by now. Could get a house for a good price and have a significant down payment
Probably people like me who didn't have a choice regarding their current toxic living arrangement that wasn't working out and all of the mental abuse that went with it, thank you very f*cking much
@@MyerShift7 I sympathize with you regarding the toxic living arrangement. But you don't have to purchase a house to get out of a toxic living arrangement. Renting is always an option as well.
I laugh at those that blame a realtor, a mortgage lender, or a competing offer for their bad decision. It’s YOU who ultimately makes the decision and signs the docs. Take responsibility. Be an adult. Live and buy within your means.
He sugar coating the failure
This is a great video with the main financial factors included in the analysis. Another factor for people that are buying their first home after renting is that if one's house value drops after buying, they have to consider the money they would have paid in rent starting from their closing date on the house transaction. Subtract at least some of this amount from the purchase price. With high inflation over the last couple of years, rent has gone up as well.
I think it’s better to buy at high interest rates, because it drives down the principal price. When they drop interest rates again you can refinance at a lower rate, and bought it for a lower price (smaller loan amount and lower interest rates).
Principal holding strong despite the high rates due to low inventory…
@@ETube37 for now same thing happened in 2008
@@ETube37 This is only more fuel for the Fed to increase rates further. The cracks will start to show soon. Some markets have already taken a huge nose dive
Very good video. Everything makes sense.
Don't FOMO and rush in.
Also factor mortgage rate. An over pay at low rate may lead to the same payment as lower price at higher rate
Hey Javier,
First off, I love your content. I have seen a bunch of your videos and they have answered quite a bit of questions for me.
That said, I went through your playlist and couldn't find this topic, so I am hoping you can either point me to one, or perhaps, entertain the idea of making this video.
My wife and I have recently started looking for a house within South Bay Area (San Jose, Santa Clara, Palo Alto, CA) - here is the issue, putting aside how ridiculously greedy the prices are here, one thing we noticed is every house under $1.2 Mill (since we didnt look at higher prices - to be clear, we cant even afford an $800k house we just got curious going up to 1.2M) have issues. Any house under $800K is a massive fixer upper, anything 800-~1.2 mill, still has a bunch of damage or property issues that need permits, etc to be taken care of immediately after the sale. And with people selling "as is" since the sell is almost a guarantee, the buyer becomes liable for those expenses.
So, is there any chance you have, or can make a video, in regards to realistic savings needed for:
A - Downpayment and closing costs
B - Immediate repairs (roof damage, termite damage, mold, etc)
C - Permits (garage converted to a bedroom/living room, shed build in the back garden, etc)
Because, my wife and I do have our down payment ready, assuming we manage to win a bidding war, we can purchase a place, but the second we do, regardless of what we buy in the area, we seem to be looking at $100k plus in immediate costs to bring the house to a safe livable/legal state.
Interest rates are forced to rise to bring down inflated asset value. Think about the purpose of interest rates. This does not happen overnight.
What difference does it make? If you're going to live in the house, who cares what its nominal value is? Is your net worth on paper that important? Live in and enjoy the house!
Everyone i knew was selling high early and then buying high late and now wishing they didn't go through it at all, they lost money and are house poor
Amazing analysis, great advice Javier
We bought our 1265 sqft home in 2013 for $440 thousands. Our new next door neighbor bought their similar sized home for $1.25 millions last year. On paper, our home was worth roughly $1 million or more in 2012.
The point here is, doesn't matter if one is underwater or have a nice gain if living in it without a plan to move. If my new neighbor lives in the house and aren't hoping to make a quick buck after two years, then they shouldn't worry if the value of that house dropped below their purchased price. Over time, the price could be back up eventually.
That negative equity position will prevent them from refinancing when rates go down. The enemy is very clever.
This fool believed his agent, that was his first mistake. I can't believe how many people were stupid enough to get into these idiotic bidding wars on properties that THEY KNEW were already overpriced. As a buyer, your agent is not your friend! They want the biggest commission they can get, period.
Even if they’re underwater it’s not by much. It’s only $27000 more than asking. We overpaid too! We went $100k over list price. Super over inflated but we needed a place and we’re still able to afford it. I kind of regret it but it is what it is. If you’re keeping it long term, don’t think too much about being over water.
Sell that shi
27k is one thing, but 100k? Jesus!
Are you serious?!?! I don't know how smart that was....
Live in it. Enjoy it. Don’t think about the relative cost. My house sold in 2003 for a fraction of what I paid. That’s ok.
They made an emotional decision and overpaid. If they think they can make the payments then it was the best decision. Being underwater is just a temporary setback.
I loved your spreadsheet analysis!
Thank you!
I believe scenario 2 assumes they kept a 7% interest rate for all 30 years, which could happen, but I think most people believe that rates will fall at least 1% lower over the next 30 years. If rates fall, scenario 2 could potentially and probably would still have been better. But overall, I agree. They paid too much but they did what they had to do to get their house and if they keep it for a long time, what seems like a big deal now probably won’t end up being so significant in the long run.
If you plan on moving in less than 7. This market will wipe you out
If you plan on living 7-10 years you’ll be ok
If you plan on never selling, you’ll be amazing.
Problem is most people move around 5-6 years after they purchase, which is part of the reason why 08 was so bad. So many people underwater. Just like the car market now.
Exactly. We have to stop this whole Moving every 3-5 year fad.
Why do ppl freak out about being underwater if they're gonna live in it? Am I missing something here?
1 year ago I bought a house that was $565k. I paid $600k to get the house.
When I seen the interest rates changing, I freaked out and sold it. Thinking the market was going to go down. I sold it to someone after owning if for 1 year for $625k. That means in 1 year it went from $565 to $625k only from over paying .. now I have cash that makes me 2k I'm interest as I wait
It don’t matter!!! It you got at 400k house for 2% interest your winning , better than 370k at 8% lol even 4% better then 8
Fantastic video! Im going to wait. The main goal is to stay within my means and eventually get in. Then pay down the principal when I can.
Here we go. Expect this to happen a lot more often!
But he’s in a money pit,Mi wouldn’t , you need to know what your limit should be, I passed on a bunch like this.
Thank you!
That’s a real small percentage actually , in 2021 we lost like 40-50% in our stock portfolios . But the overpaying for something sucks , but overtime the market does go up not down so you will be good overtime !
The prices there seem so reasonable comparing to Toronto that the simplest home is above a Canadian million dollars. Great video.
The same goes for those willing to pay market adjustments dealer add-on for new cars.
Realtors inability or malicious refusal to understand market forces is exactly why housing continues to bubble and pop. Never trust anyone whose incentive is to make commission off your purchase. They have no fiduciary responsibility and the only thing that matters is they get paid when the transaction is done.
Hard to concentrate, that haircut is too fresh.
Cash offers and paying over listing price is commonplace where i live. It really does a number to the market and peoples finances
Buy super bubble high sell low while undeeerrrr waaaaater. More tips don’t eat yellow snow or piss into the wind.
"the market will only continue to go higher and higher"
YES IT WILL
Over time.
I am guessing we will be in a neutral position for 10-15 year in which nothing appreciates much.
You only lose when you sell!
Nope
What about property taxes? Would that make a considerable difference if buying 100k +/- over the course of the loan and beyond? Possibly making the lower price but higher interest a better value in the long run? I guess it also depends on which state. I know Texas is really high, but Nevada pretty low, et c.
It depends on the interest rate. Low rate higher price can still have a lower payment than a high rate low price
This was my first thought. They are underwater but still paying less with today's higher rates.
I have few neighbors bought their homes way over than it is worth since the house shortage. I know they regret what they bought it for
My sister paid over $50,000 asking for her house out in oregon, I told them that was a bad call but now it's up almost $100k and they got it reappraised to remove the PMI since buying it in 2021...not sure how long that will last, but this whole housing market is nuts right now.
Property tax in my county is at 2.4%, so we would have a much much higher payment for a house of that price. Probably over $3,000 a month with property taxes, even putting 20% down. I think they are in a good position!
A home, especially a decent one at a good monthly payment is stability. I couldn't fathom selling unless I had other homes bought already. Prices can swing all they want. Nothing beats not "having" to buy because you know it will be cheaper and sometimes a lot better than renting.
If you look at prices of homes over the span of ten years, they always tend to rise. I would recommend to Ignore the current price if you plan on living in your house for the long run.
In Canada, there isn’t a 30 year fixed mortgage. Most people has 5 years.
Well Said !
Location is everything. North Phoenix is still high up there.
Ah, you made him feel better. Math is great! Nice job!!!
This is great content 🥺🙌🏽
It’s like stocks, I don’t care what it’s worth until I sell it, same thing for a house, you still own the asset.
It’s only a problem if you sell at a huge loss. Unfortunately, like the video said you will be “stuck” for probably at least 7 years.
I will wait it out. i won't buy a house now or in the next 2 years. if the prices doesn't go down in my area (Fresno CA) I'll consider relocating.
A woman from Toronto bought a shack, literally a one floor shack that was gussied up, for 650g 3 hours east in the height of the coof real-estate nonsense. This thing shouldnt have been worth more that 100g. I heard last month she is crying about it with her massive monthly mortgage payment and her brain started working again and she now knows she bought a pile of junk and will never see her money again.
So, wants it worth now if she sold?
I bought a big new house for 100k less than what it sells for now in 2020 with a 2.25%, but I’m stuck here now as moving into these stupid high rates is financial suicide