MASSIVE UNEXPECTED EXPENSES DERAILING HOMEOWNERS!
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- เผยแพร่เมื่อ 14 มิ.ย. 2024
- So many people get told by others that buying a home is the smarter financial decision because your payment will never go up. Will that is only true when it applies to your fixed mortgage payment. All the other expenses surrounding your property are subject to increase and it's a guarantee that they will. And those expenses have been going up so much lately it's prompting many people to sell their homes because they simply cannot afford the upkeep.
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#realestate #housingmarket #homeprices #housingmarketcrash
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I think the retirement crisis will get even worse. A lot of people can’t save because of low paying jobs, inflation, and insane rental rates. And now that home ownership is out of reach for middle class Americans, they won’t have a house to retire with either.
Rising prices have affected my intention of retiring at 62, working part-time, and building my savings. I'm worried about whether individuals who weathered the 2008 financial crisis found it less challenging than my current situation. The stock market's volatility, coupled with a reduced income, is making me anxious about having enough for retirement.
I completely agree; I am 60 years old, recently retired, and have approximately $1,250,000 in external retirement funds. I am debt free and have very little money in retirement funds compared to the total value of my portfolio over the past three years. To be honest, having a portfolio-advisor for investing is genius!
who is your advisor please, if you don't mind me asking?
Carol Vivian Constable is the licensed advisor I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
I just looked her up on the web and I would say she really has an impressive background in investing. I will write her an email shortly.
my parents used blackout blinds for a decade after they finished their basement to hide the improvements from tax assessment
I backed out of a sale at the last minute last year. I crunched all the numbers and realized the house would own me. I'll stay in my apartment.
Smart. Might be a few more years until the dip. I hope you are saving money and investing.
Doesn't rent go up then too?
I was looking at places to buy (and I'm a cash buyer), but my landlord has never raised my rent. I can't leave because my rental situation is so good!
Wow someone who used common sense and math. Smart.
@@michah321 rent has been getting cheaper where I live
Buying a car is a luxury now too
Buying a new Nissan Versa for 17.5 K is not a luxury.
Spending 50K for a new SUV is a luxury.
@@MrSteeDoo You have to include cost of insurance,maintenance, registration, and etc. So it is a luxury
@@jbarkley4938653 You would feel better if you were employed.
Oh yeah.
I am amazed how many people, obviously, aren't grasping the overall dire straits this Country's economy is in.
So sad, as is going to be such a catastrophe, for all of us with the exception of the top 1%, as the majority of us are going to be devastated.
They are. Why do you think birth rates are so low? No one is expecting their kids to do better than them so it's better to not have any to begin with.
In September of 2023 my homeowner's insurance went up 20 percent. When I called my insurance company and asked what was going on I was told that they decided that the replacement cost for my home in the event of a fire or natural disaster for instance went from just over $200,000 to $349,000. When I asked where that new figure came from they just said it was from their parent company. So at the exact same time that lumber prices are the lowest they have been since before the so-called pandemic the supposed replacement cost of my home just increased by $150,000. I think this whole thing is a scam.
Amigo its not just the cost of rebuilding the home. What about everything in it. Theres another $100K right there.
Pretty sure 1000,000,000 people dead. Isn't considered. A "so called" pandemic. It was a pandemic.. smh..
Insurance is scam. It goes up every year whether you make a claim or not.
I believe the insurance companies can now price in future environmental events 😂. It's a really great way to make up a number and see how far they can take it.
@@JackCarsonite You are absolutely right. These crooked insurance companies are just picking a replacement cost out of thin air without providing a shred of evidence to back it up.
Property taxes will be the end for most
All by design 😊
It seems to be the plan all along.
Yes they keep raising property taxes , I know we need taxes but property taxes is ridiculous you never own it and if your retired where does that extra money come from if they keep raising
They want us all to own nothing and be happy
About 40% of property taxes go to the school system
Taxes and insurance are ridiculous! We need to stand up!!!
Wiggly Worms don't stand up😮
Tax is no issue with me.
I self insure my home and car.
I bought my home in 2019 with a low rate of 2.4% .. house was $421,999 and down payment $83,000.... brand new home. 5 years in and payment has gone up, home insurance has gone up... I work full time , husband works 2 jobs... 1 child. Budget is getting tighter due to car insurance hike and all other bills... Cant save no money like i used to but i try my best. I feel like buying a home in the near future will be a luxury only some can afford.
It's already a luxury
You bought more than you could afford and didn't take in to account appreciation and repairs. Should have stayed $250-$300K and you'd be in a better place now. I'm thinking you bought in an area you can't afford.
Buying a car is a luxury now too
@@DIVISIONINCISION Actually, they would still have the same problem had they paid 300k. Inflation is the problem, not the home price. So your point is kind of pointless
@@aviationnerd7806 No, the problem is they didn't figure in the hidden costs of home ownership. You buy way below your ability to account for the unforeseen. Inflation is also part of that equation, young nerd. 🤣
So so sick of HVAC companies charging $15k for a new unit. Just a few years ago it was $6k-$7k and that was high as heII.
That’s because it’s far more expensive now to do business. They’re charging what the market demands. I recommend you try training yourself to do HvAC then maybe you’ll understand. Hope you get a better deal on your system. I’d try to target guys in the trades and make friends with them. You want the best deal? Ask them to do a side job and keep it super quiet. That’ll bring the job down substantially.
@@AJ-ox8xy I know all about this, I'm a RE investor. It's so damn expensive.
@@networth00 indeed it is.
@@AJ-ox8xy I always tell my kids; if I were young I would go into HVAC or flooring. That's where I pay the most money.
@@AJ-ox8xy
"That’s because it’s far more expensive now to do business. They’re charging what the market demands."
Make up your mind. Either market prices are set by the cost of doing business or by "the market".
We need to stop real estate property taxes and home insurance increases!
Then the insurance companies would all go out of business.
You can stop either any time you want. For yourself.
And if you do, what do you care what others pay?
@@commonsense6967No they won’t, hell they don’t even pay out half the time they are supposed to.
Here in New York I pay my property tax in January and School tax in September most people pay there taxes in there mortgage and don’t realize the school tax is so high it more the double the property tax and I don’t even have kids
That’s bonkers if someone buys a house and doesn’t think about the costs for insurance, property taxes and utilities bills. That’s ludicrous.
So many immigrants are like that, even if they live in US 10 years already
90% of people, (unless they have personally had a new house built in the last 3 years) have no clue.
I spent hours at the library reading about home buying before my first home.
Went pretty much by the book and bought a condo.
Even asked to see past twelve months of all utility bill statements.
Also learned about manual underwriting and bought my home with zero credit.
Okay who asked for Luda?
Illinois has high taxes
If you pay property tax you don’t own your home. It’s a government rental. If you pay income tax and pay tax on everything you buy you are being double taxed. Inheritance tax, vehicle tax, investment tax, fishing and hunting tax. Let’s be honest, you aren’t a taxpayer, you are a slave. And those people who never work, generations on the dole at your expense, they are called voters. YOU can’t afford children but are being forced to pay to raise theirs. That’s called equality. Starting to understand how this all works?. To your government you are worth nothing and better be happy, or there will be consequences.
Very well explained.
That is so true. Can't afford to have children....I resonate with that
It's not true that you don't own your house if you pay property taxes. That's YOUR definition, not everyone else's. By the definition of ownership in US law, you own it
where do they charge fishing and hunting tax? also you must be pretty rich to be worrying about inherence taxes
@@michah321Then don’t pay your property tax and see how long it stays your house. Go ahead and test your theory.
With this inflation, a $20 bill is the new $1 bill.
Imagine taking out a loan when the $20 was worth $20 and now paying it back when the same money is worth $1? Easy payments.
And it will soon be worth a dime😮
We've been saying the hundred is the new 20. I go into town every other week and take 500.00. Gas and groceries may be hardware store to fix a couple of items or oil and filters for the car. And the 500 is gone. Just 5 years it was 100, maybe 200 tops. It's doubled in the last 5 years, for sure.
Will become the new penny
Especially at McDonald's.
I literally just told my wife before seeing your video that forced selling is what’s going to drive down prices period.
Property taxes, insurance are a killer, you can put off improvement, extra's but maintenance/taxes/insurance will kick your butt.
I'm sharing this with everyone. Is anyone talking about the petrodollar? The Saudi government did not renew our 50 year contract last sunday. That is not in the news
🎯👏👏
I've only seen it mentioned on Twitter. Concerning.
I've seen it on some YT news/commentary channels (not associated with mainstream news. Just type it in you'll see. I never watch mainstream news.
Yes, been talking about it since the terrible Afghanistan withdrawal. The Crown Prince expressed interest in BRICS the next day. Now, they have clearly officially accepted the invitation to join. Our military protection promised to Saudi Arabia by Nixon & Kissinger is not feasible with our depleted military’s armored vehicles, artillery, ammo, lack of anti-missile defense systems, etc. is known throughout the world. On top of that telling OPEC with all these EO’s how green we’re going and our debt. Good job illegitimate administration.
I heard...
My home insurance has gone through the roof this year, and I'm in the northeast.
Construction wages and materials had to go up because of inflation.
Mine doubled.
@@francismarion6400And lawsuits
so am i i cancelled my insurance 11 years ago saved over $20.000!
Lawsuits are a problem too
Thank the Lord we bought an 800 sq ft house as a retirement home back in 2009.
Low maintenance, taxes, insurance, etc. Best of all, no mortgage. My advice: live below your means. This is a no FOMO zone!
That is much harder done than said. Especially with woke ideology taking over schools many people tried to escape when this stuff wasn't happening and often needed to pay premium.
My house is 690 ft.². It’s the only house I have :-) it works great for me. Thank God I bought it when I did because I could not afford it now.
Bought in 1999, sold when interest rates at 3%. Downsized to 70% sq ft for less than all-in home. Equity averages 23% yr. For all my maintenance, I consult 100 hr mo at $25 hr. Will relocate next yr to lower crime, better cost of living state
Same in my case except I have a 1500sqft 2bed/2.5bath/2car condo in a secure gated community.
I just live within means and total household living expenses of $1400/mo. which isn't bad for an upper middle class area.
I'm retired at 51 and had to drop my income inflow 50% to $45k/yr. because $90k/yr was too much.
@@Matt_KThe best things in life don't come easy, but those things are the ones worth the sacrifice.
People need to live within their means. Why people want all the headaches they go through just to keep up with the Jones' is beyond me.
I definitely don’t keep up with the Jones. I don’t even look at them.
America is full of mean spirited greed bags , it's just some people can't get enough , there's more billionaires today than anywhere on the planet and most never worked an honest day in their lives ! The housing prices are controlled by corporations investing in Wall Street , making more billionaires ! The whole damn thing needs to collapse .
@@Francisco-po1cfHa! I cant' see my neighbor from this house.
Yup.
That’s why I have no issues.
Completely debt free as well.
We do. But we don't. We're Americans. We do as we please.
Your videos are a breath of fresh air, always enjoy watching
I liked he's video.get good information
Gross
We are at the end of the plank as a nation, economically. These values are inflated like crazy, the stock market is inflated like crazy. GREED.
There's a Priest(and I forget his name) who resides in FL. He showed the "Real" Math of as to how much Americans are paying in TAXES and INTEREST. A Whopping 80-85% of their Earnings! So CONGRATULATIONS!
That varies by region and spending habits. The real problem is that middle-income and poor people spend too much on eating out and other luxuries they really can't afford. Wealthy people cook at home.
yep and it only grows! and your a criminal if you opt out of the vampiric hamster wheel game!
@@DIVISIONINCISION bro nah 100k can get you a house the average 30k no way I don't care how much you save you math isn't mathing.
@@jbone9900 Far be it from me to tell you how to run your life, young JBone. I'm fairly sure you spend much more than me on eating out, delivery and other treats. I meal prep for work and eat at home 99% of the time. Those $30 wings you had the other night could have gone to your emergency fund.
priest? are you even american?
Still..to me..renting is throwing $ away. If u buy and pay attention to get something u can afford, work on it slowly, live in it long term…it will be worth it in the long run
It is unless you make well above the rental price and can afford to save a substantial amount on a monthly basis. I am very afraid of what will happen to all the people who don't own a home when they reach retirement age. Renting in retirement is not going to be affordable for a lot of people. If you own, your monthly expenses are drastically reduced as opposed to renting and gives you options like reverse mortgages or selling if circumstances change or go south.
As long as you pay the mortgage down and have a debt free house for retirement. A lot of people don’t, end up in trailor parks.
Do you think that way about everything you rent? For example, if you rent a truck to move your furniture, are you thinking “I’m throwing money away” ?
Would you rather own a box truck?
I’m definitely don’t think that way about renting a place to live. I think “I get to live in someone else’s property and leave whenever I want. “
I’m a low energy person and I don’t want to spend even 10 minutes or $100 fixing anything.
Say no to lawns. Why I love it here in Albuquerque. Rocks and a couple evergreen plants.
Isn't that the Desert 😂
Zeroscape can be good, but not everyone will want to live in the desert.
I love my Apple and Peach trees, blueberry bushes and daffodils. Just a grass along my walk way.
I live in beautiful Appalachia. Clean water and four seasons.
Hola my fellow Burquino!!! I live near the intersection of Juan Tabo and Indian School!!!! Manzano High School class of 1988!!!
@@LoboLady2007 hola back at you. Make a right heading north on Tramway to Candelaria and I’m back there. Nothing like it here. Born in nj. Lived in FL and then in TX. Fell in love with it here in a road trip in 2011. Bought my future home in 2016 as a rental at the time. Made in home about 3 years ago. No regrets whatsoever.
You either get it or you don’t living here.
I own my home outright but boy those taxes in Texas sometimes I just want to cash out and flee this country
If you are a U.S. citizen u will still have to pay US taxes when u live outside the US. If u own a home in the US and own a home outside the US u will have to pay for owning both houses.
People living in their cars is increasing. Truck stops are a good place to see this. I can't even stop in the middle of nowhere to let my dog roam free because she keeps finding homeless people living in bushes and trees. Never thought we'd be living in a 3rd world country. SMH....
Are you a hippie hallucinating? Biden's last speech boasting greatest economy & employment to non-stop standing ovations! 😅 Something not adding up here. 😢
Your dog needs to be on a leash anyway
People will deny your claim but I was cruising through my old neighborhood. In Midwest. It's a lake area and I'm from the poor part. It was bad when I was a kid and then got cleaned up for about a decade. Now I see ppl living in campers at the gas station, prostitution, and junkies begging all surround by million dollar homes and my old neighborhood, empty everything for rent. It's a strange sight
I have been to 65 countries so far since 18.
Also volunteered in Haiti with the Peace Corps for a year after high school in the 80s.
This is nothing like third world.
Just first world issues.
The answer is infinity immigration.
People demand a lot of money for a little work. Home repairs skyrocketed because of this. Once the depression hits, and you're lucky to work 20 hours a week, things will get back to normal.
That is 100% true. I had to turn away a plumber because he tried to charge me $3400 for a leak coming from my pipes in the garage. I was able to get some help from my uncle who only had to change the ring on my toilet bowl. They even wanted to charge $1200 to put that ring on my toilet and told us that may not work. I was not going to be putting $3400 or $1200 on my credit card.
Government bureau telling lies lead people to believe the religion of Labor Shortages. Even FED Powell question Dept of Labor numbers.
Go on nextdoor. Best plumbers, landscapers & handyman for a reasonable price.
🧐 You mean CEOs and other executive “leadership” demanding sky high salaries for what? Driving a business into the ground and taking a golden parachute? Do tell.
REMEMBER 10 % FOR THE BIG GUY.
Or the Ukraine...
The rent is too damn high!
Not as high as a new mortgage.
Wait till next year😮
Anything even remotely to do with housing is so wildly overpriced. Looking at old photos, it's shocking how my neighborhood has run down since 2019. People just aren't keeping up with inflation like FJB claims they are.
You must mean FDT rents and mortgages are out of control as well as everything else. And find out how much these CEO'S are making which have nothing to do with Washington and until America takes a stand nothing is going to get better or lower.
Just because you're not keeping up doesn't mean no one is.
@@rowdybush1most are not.
We own our home and haven't had a house payment in 25 years, our property taxes are frozen and will not go up. We have never had a car payment we pay cash. We save up and pay cash and always have. Debt free is the only way to live.
What do you mean frozen?
@@zuzanazuscinova5209 they mean locked in from long ago so they can only increase a little each year vs a new buyer gets screwed with new crazy prices and assessment.
That's why.
I'm not at home owner. I used to be, but since I found alternative living no more. My life is much better now than when I had a house. How weird is that?
What’s alternative living? Van life?
How and where do you live now? Do you mean Van home or something like that, by saying alternative living
@@veraruffin3950 Im wondering that too.
Alternative can mean a lot of things. For me its sharing a home with a friend and his 2 grown sons. I dont want to own anything these days
@robertl2227 Absolutely. You're right. It doesn't mean a lot of things actually, but what you said it is absolutely. I can't do that too except I don't share my room with nobody. I want to be by myself my dog and I do have a campaign that I live out of part-time. You know, I don't only buy th a Van full-time. Part-time is good enough, but it keeps the expenses constantly low. Which means I don't have to work hard 2 jobs just to pay for a place that you never there that don't make sense to me and I've been doing. That for years, I kind of woke up from that and not anymore. I'm better off right now than I was before and how weird is that?
Michael, I could be wrong but I think that you were strolling through an old craftsman neighborhood. As in, Sears and roebuck craftsman style homes🎉
As a renter I have so many restrictions and cannot customize the house and yard to our needs. Many of old folks who didn't pay off their mortgage cannot afford rent today with their low ss and medical expensive. They live in the car and die in the car today.
Some Renters out there thinking they can do whatever they want to their landlords property. The landlords property is not the renters property. The renters name is not listed as the owner of the landlords property thus the renter is not the owner of the landlords property thus the renter cannot do whatever they want to the landlords property.
I'm going to live in a van down by the river
I did that but discovered it's cheaper and much more enjoyable to live in a condo by the beach 🏖️
It's definitely alarming to hear about a default cycle, especially in the context of the housing market. Defaults can lead to foreclosures, and that has a cascading effect on the overall real estate landscape.
While it's concerning, it's important to look at the broader economic context. A default cycle doesn't necessarily mean the housing market is completely finished; it might signal challenges, but markets are dynamic, and they can recover.
But if more people are defaulting on their mortgages, doesn't that mean home values could plummet?
Yes, that's a possibility. An increase in foreclosures can lead to an oversupply of homes in the market, putting downward pressure on prices. It's the basic principle of supply and demand.
How can people address concerns about their property values?❤❤❤
Now might be an ideal moment to reevaluate your financial status. If you're worried about your home's value, consulting a real estate professional or financial advisor could be beneficial.
It's entirely possible home prices might get more expensive if inflation picks up. But, if prices go up, it doesn't mean that house has become more valuable. It means the purchasing power of your dollar is declining ...
You nailed it. Because the value of the Dollar is declining, it naturally forces the price of EVERYTHING up !!
Saudi 50-year contract with the US is over. Not having all those petro dollars is going to bring all those dollars back home. This will cause skyrocket inflation. In addition, our debt to GDP. We borrow more than we bring in.
I'm not greedy and didn't buy my homes as an investment.
Geico told me rates are going up because illegal immigration and un insured motorists. From the agents mouth to my right ear.
True! My daughter's car was totalled by an illegal alien with no auto insurance ten years ago in L. A.
Yes my daughter got hit by illegals and they called their buddies to come to the scene. The police said stay in her car. It was frightening . They had no insurance and we had to foot the whole bill…they didn’t want her to call police but she did.
Politicians are the enemy
Politicians are just the puppets of those who control the money printing.
Corporations are the enemy. They own the politicians. Look at Biden, the entire BlackRock family works in the White House at one job, or another!
My hobby is gardening... my yard is my dream! And no landlord is going to tell me no!
I love the idea of gardening. The problem is I hate actually gardening. I have a huge yard and I do have trees and shrubs. About half of it has grass And I have a couple raised beds for a garden. Every year I think I’m gonna plant a garden, and then I do and I’m totally sick of it by the middle of July. This year I’m not even gonna bother.
@nogames8982 i understand. Its a lot on days you dont feel like doing anything in the hot sun or are really busy! But it just looks so pretty and makes me feel accomplished. I spend 8 months of the year inside, so i feel like a kid in the candy shop to do things outside!
You must have had a bad experience to say something like that
I just bought a home for my needs and done.
HOA? 😮
👏
Your homeowner's insurance has gone up because of hurricanes, floods, tornados and wildfires in states you don't live in.
This was all done by design.
They keep building these million dollar homes right along the beaches in Florida that have to get repairs every year from hurricanes and tropical storms, pretty silly.
It's not like they can't control the weather😮
Homeowners Insurance Companies are also insolvent. Just like the banks, and the Life Insurance Companies. Everything is hitting us at once, intentionally. The evil and the greed is disgusting.
It's called seeding, hurricane, tornados, floods, and fires are 95% man made. It's all by design. They tell you what they are doing if you are listening. They have a 50-year plan. They are getting to the peak and boy. Oh boy, will this last generation be in complete shock when it happens. The chip is next. You better resist.
I can't afford to live in my house, but all I can do is skip the repairs and let it collapse on top of me.
Rent out a room?
What renter would want to live in a house that is falling apart?
HOA, TAXES,HOMEOWNERS, AND FLOOD INS.,GAS, LIGHT , CABLE, INTERNET is 19k a year .
And repairs and maintenance
Ahh the paradise of Champagne, Illinois! Where every home is $2m+, palm trees galore, crashing waves, piña coladas…
Oh wait a sec…
Thank you to our host for these wonderful outdoor segments. Enjoy your travels and be safe
If only he weren’t so negative about everything.
We are paying for his travels
@@TheBeagle1956 not really. I think he is bring “the adult in the room” saving borrowers from making regrettable mistakes
@@John1908-vo1iv happy to do my part
*Hallelujah!!!! The daily jesus devotional has been a huge part of my transformation, God is good 🙌🏻🙌🏻🙌🏻🙌🏻🙌🏻was owning a loan of $47,000 to the bank for my son's brain surgery (David), Now I'm no longer in debt after I invested $12,000 and got my payout of m $270,500 every months,God bless Christy Fiore🇺🇸🇺🇸🇺🇸..*
Hello!! how do you make such monthly, I’m a born Christian and sometimes I feel so down of myself 😭 because of low finance but I still believe God
Thanks to my co-worker (Carson ) who suggested Ms Christy Fiore
Can I also do it??? My life is facing lots of challenges lately
She’s only on What’sakp
Hallelujah! God still works wonders, I place myself in position for such miracles and testimonies 🙏
Fortunately I just got my property taxes in IL, that were frozen and all I paid was $564.00 permanently.
How is that possible?
@@debbiecreter2005 It's not
A month? 😂😂😂😂
@@tommyebay I guess I couldn’t see the humor in Joyce’s remark…
Retired
Maybe its because nobody knows how to fix anything so repairmen can charge an arm and a leg
Consider that a lot of people purchase pre-1978 homes and have to deal with things like asbestos abatement every time they need to make a significant repair, change the flooring, etc. This adds serious costs to the equation.
A lot of widows..kids live across the country
U say it.we did it ourself one easy plumbing.we did estimate 13 thousand.i say no way
The number of people going into trade work has also gone down but the need is always consistent so the market favors the trade workers.
Thats very true - repairs add up for those that never learned a little DIY - majority of plumbing, floors , appliance, auto, lawn equipment etc can be done by you and when I grew up all the men did these things themselves - ' most ' sons learned it from the older males in the family - I know I did - saving what people pay to repair is a huge savings - remember - its not what you make, but what you save that increases wealth ..😊
Sometimes renting is really more favourable than buying because of all the maintenance cost to own and the greediness of some sellers out there!
And renters are still paying for maintenance, taxes, and insurance. Oh I forgot, the mortgage and profit for the landlord. Renters give the money to the landlord and they pay the bills and receive the tax benefits.
If you didn’t call maintenance to fix anything, you’re probably paying for s as something someone else broke in their apartment.
Depends on each individual.
I bought a home I could truly afford. Just wanted a condo 2bed/2.5/bath/2car in secure gated community.
For me maintenance is no big deal.Just simple light bulb replacements now and then.. I don't have kids and roommates tearing up my place.
Have zero debt with a $200k emergency fund and other funds if ever needed.
I paid off my 30yr mortgage in nine years 16 years ago.
Retired in my 40s.
With all utilities,HOA,auto/home insurance,property tax,internet,cell phone,etc.. it's less than $1400/mo. which is pretty good for an upper middle class gated community.
Equity?
BS. Renting is literally taking a giant pile of money each month and lighting it on fire.
I'm 8n CA. and to save on housing, I got an RV and found a nice RV park to live. My housing cost has been cut in half.
Missing from this video:
The other reason home prices will come down is because since the GFC, homeowners have seen the value of their house increase by 10% a year, every year for 15 years. This makes it looks like their house is a money printing machine. No one will sell or list their home in an environment when homes are increasing by 10% a year. When home price appreciation goes negative or to zero, i.e. the incoming recession, home owners will dump inventory on the market to avoid catching a falling knife.
…in the meantime, the county is increasing your property tax 5-10% annually as well. Soon you can’t afford the property taxation based on a fictitious number, that you have never realized.
Home prices are not coming down.
Glad I'm not greedy and don't need to worry about those things.
I bought my primary and beach home because of looks,security,comfort,and location. An investment was the least of my concern.
@@thetapheonix Why?
@@brianborkowski5977 Supply is too low.
It's maintenance of the house that cost the money, not the actual buying the house. Buying the house is the easy pot maintaining. It is the pot that kills you be not careful so technically you can really afford it. It looks like you can afford it, but in general, you can't.
"It's the pot that kills you" wtf
It’s like new tires and brakes for your car but on steroids
@@JustDItY That was bad, spelling. I meant to say Part.
@@manormyth Facts.
What maintenance are you even talking about? People always say this. I haven't experienced that and my house is over 100 years old
We replaced 2 full HVAC systems, the condensers outside and the units in the attic, that was a $18,000 expensive, cash, but they needed to be replaced as they were over 30 years old. We did put in Solar & a Tesla power wall, which we paid cash for as we did not want a lease as your never break even, we live in a desert location and while others with the same size home are paying $500 to $600 a month for electricity in summer, our bills are between $80 to $100 a month.
We have family friends using their homes as ATM's to buy all the toy's, and some have said they will never pay their home off before they die, wow. Owning a home can be expensive, we are lucky I can do most repairs around the house, but you are right there are hidden costs new home owners can be shocked by, again another good video Michael!
So why would they care if they don't pay their homes off before they die? What is the penalty
@@charruz Because they have realized when they retire what pension they have a very large chunk going out in mortgage payments every months, simple economics!
I’m looking forward to having solar one day but as of right now, not anywhere close to being able to afford it.
@@ScottishTerrorsInLA I would recommend you save up and pay cash when you have enough in savings, Never lease a system as your never break even, if you can afford a Tesla Battery or another brand, that will allow you to still have power if the grid goes down, and can allow you to load shift during peak power prices!
A house is nothing but a financial drain.
Really like this “real estate tour” @MichaelBordenaro that you are doing around the Midwest to get to CA .. refreshing to see much more seemingly normal priced homes vs the fancier homes… a welcome change. Nice job 👏😅
Yes, do the Bay Area, Sunnyvale or Santa Clara. A real study in insanity.
Now is a good time to become a tent salesman.
That's funny, I don't care who you are! 😂😂😂
You will get kidnapped on your 1st tent sale
Caution: Is it a 4 seasons tent with exhaust?
Heh
Canvas??
Love that you are so smart, Michael, and have the ability to translate to the middle class (if there is such anymore). Thank you!
Gross
One of the biggest problems the home inspector s aren’t doing their job !!!
Correct. It’s a waste of money. End up paying$13K to replace things that passed inspection.
Due diligence is up to you.
Bought in 95, paid it off in 09 because I knew this was going to happen...again
FYI: Regarding renting in Orlando Florida (since it was mentioned in this video). $1600 will get you about 700 Sq Ft. One bed one bath. $2000 will get you about 900 Sq Ft. and Two beds and two baths. The video mention median rent was $1600.
I think I could handle living in a 700 sq ft apt in Florida b/c I'd always be outside. That's not a bad price for rent.
In 18 when I bought my house property taxes were $4800/yr. This year my property taxes are closer to $13000. I'm in Upstate NY where the largest employer is the military... 300mi away from the city. Unreal!
I thought $3800 was bad for our home this year 😖
Before I bought my first home, people told me I was a sucker for paying rent. I finally took the bait, and ended up with a money pit. House depreciated, and I had to replace the roof, HVAC, fence, washer and dryer, and water heater in 6 years. When I finally could break even, it cost me another $13G to bring the house up to code for the new buyers. Learned alot though, and I'll buy my forever house as soon as the housing bubble bursts - and it will.
There is no way I am spending $18,000 on maintenance on my house in Iowa
Same here, I. have a house northern Illinois. Lawn care is $100 a month for six months. That's about it, since I am postponing improvements. Taxes, insurance, separate, and fairly low.
Lol..Im selling a 1 bed 1 bath. 500 sq ft house in Iowa for under $17,000
Their definition of maintenance seems to be everything but the mortgage. Ridiculous.
Property tax, home insurance, cable, utilities.
it also taxes and insurance and what not
$2 million? Just the sound of Illinois makes me ill
So glad I bought my house when I did. I paid off the 30-year mortgage in 12 years. I pay $120 PER YEAR for property taxes, about $75 a month for trash/water. I haven't had any maintenance expenses for a few years (with the exception of $1000 for a new washer/dryer set). I pay about $50 a month for yard work. I pay $108 a month for house insurance. That's about $2,000 PER YEAR. IF I was paying $1700 per month for rent, that would be about $20,000 per year. That's a savings of $18k a year. When I move out, I'll get money from the sale of my house. If I were renting, I'd get ZERO! I agree with Michael in that NOW is NOT a good time to buy, though. But, do work toward it.
No coincidence that your seeing alot of propaganda videos of people being happy living in a closet size apartment
My property taxes are $500 a year in a historic district. I'm shocked at some of the property taxes people are paying 😮
Where do you live ?
@@THIRTYSIXRED in a historic district in Mesa AZ, just outside of Phoenix. Historic gets special property tax rates.
@@radtechg9 Reno NV, similar. Older homes are assessed based on the yr built, and taxes cannot increase more than 3%/yr if owner occupied. Taxes on my historic 1942 bungalow are $770/yr.
@krisb7465 killer deal. All the seniors in our neighborhood will never leave. With their paid off homes they have no trouble paying their taxes.
Mine is $600 a year here in Vegas.
Champaign!! My dad grew up there and then moved back from Florida to take care of grandma before she died in 2019. I know almost exactly where you're walking! My grandma lived off of Kirby. I know he sold her home in 2021 for 130k, it was 1,200 sq ft and bought a home in Southern IL near Kentucky for 130 that is 2,600 sq ft with a separate 2 car garage! Illinois taxes are insane, they always drive across the river into Kentucky to buy their gas at Sam's club to save the 30 cents a gallon.
Had to chop some trees down yesterday it cost me 8000 today I started painting the outside of the house there’s always something to do to the house every year
I’d bet a greater percentage of homeowners nowadays hire someone to do maintenance that a homeowner would have done themselves in the past. This would contribute to the increase in maintenance costs.
Gas, tools, wages.
Increased complexity of systems and few very tradesman.
Well it's not like you need maintenance every month or year.
If you own a big home with more stuff to break that's on you.
Just a light bulb or two is all the maintenance in my 1500sqft gated condo and I don't break stuff or have kids tearing up the place.
Let's get it straight
Your mortgage might be fix stay the same.
But yours insurance is not .
And yours property taxes
Is not fix .
You have to earn more
Each year to paid for all this increases..every year
So don't listen to others people lies. 😅
Yep, you got it, and don't forget the HOA fees....too much people!🫣
insane.
But eventually the house payment goes away…so yeah - owning is still the best option long term. Six more years and I will be debt free and get a massive pay raise when my mortgage payment is gone…and still 15 years to retirement.
Property tax is a tax on unrealized gains ❗
It made me think about my own home costs, here in sunny England. If I include everything, heating, property tax, insurance, utility breakdown insurance, internet etc,etc, it comes to about $4451 dollars in USA money. If I add $500 a year for maintainance, then that gives me around the $5000 dollar mark. The one thing that does look expensive in thw USA is property taxes, which are based on a percentage of the value of the property. At the moment our property taxes are much lower than those in the USA, as they are limited, by government, on any yearly rise.
$1700 a month was only $200 qbove my rent, so I bought in 2017. It's gone up to about $1800 because of escrow for taxes and insurance.
Rentals are in the $2500 range in Hampton Roads Virginia.
How’s that Florida home owners insurance rate with Miami flooding?
Mandatory flood insurance and higher rating for wind builder cost is already in the county... i had the cheapest mortgage there 2011
That flooded area was already a low area paying high rates.
I just paid $13k to replace roof (with permit). I heard insurance companies may not insure homes with roof over 20 years. Yard work, tree trimming, and irrigation repair all go up. I understand. If a worker needs $50/hour plus fuel cost(driving), he has to charge at least 2 hours for doing a job. Blue collar workers on call don’t get guaranteed 40 hours a week. Asking $50 an hour is not going to get him rich.
Somebody's people are delusional, thinking they can get more money for the house. And maybe they can maybe they can't, maybe they can't make sure one of them sometimes I won't be buying it. So I don't care leaving. Alternatively is the way to do these days.
Property taxes 4k a year
Property insurance
$8,400 per year
Gas and electric $7,800 per year
My property tax is 3900 going up to 4600 I sold and getting out of this county plus the HOA spent all our reserve,
My home insurance is very fair I pay 605 a year.
My property tax is around 8000 a year in a suburb of Columbus Ohio. I had to challenge the county's value of my house 2 times within a 6 month time frame, and I "won" both times. My tax is cheap compared to my neighbors with bigger better houses. They're paying anywhere between 12,000 to 25,000 a year. The property tax is mainly for the schools.
Bought our current home 25 years ago, paid off. Property taxs $3500. Ins.$1450 yr. Owned solar $ 0 year,gas about $500. Reasonable for Ca. We feel.
I'm in Florida. Everyone has a pool. Pools are not cheap to maintain anymore. I love my pool but I question how many people that have one and how much money it's costing them to maintain it? Just chlorine alone has gone through the roof.
I was dying for a pool when my kids were young, but now they're grown and gone and happy I didn't do it.
I'm in Florida. Most don't have a pool.
I'm in a suburb of Columbus Ohio. Some of my neighbors have pools, two of them just had them put in this spring. I think they're nuts for putting in pools. But they've got so much money they don't know what else to do with it I guess. Why have a pool when you can only use it a couple months of the year? Florida is different though b/c you can use a pool all year long. If I lived in Florida, I would hope I'd have a pool and it would be worth it to me, even though it's a big expense.
I’m in Florida and have a pool. When I heat it my electric costs are over 450 a month. Would like to downsize and not sure if we’d get a pool. Or we’d get a smaller pool. Our pool service is 125 a month. A lot of money for not using it everyday.
I hear a lot of my Baby Boomer retirees are having a difficult time finding somebody to do things like yard work / snow shoveling..at an affordable price. There are no neighborhood kids who want a lawn morning gig because people are not having kids.
Depends on where you live. I have had no problem finding landscapers.
Very true. The average landscaper in my area suddenly made millions in a few years because all these boomers moved in to retire in our area but have no one else to hire.
I'm a retired boomer in Florida. I am on a wait list for a senior apartment in N. Georgia. I will sell my modest home in NSB as soon as I get the call. The heat and the inflation are becoming more than I can bear. The crowds have also diminished the charm here.
You knew these things before you bought in Florida. Arizona would have been a better choice.
@@DIVISIONINCISIONI've been here since the 70's. Everything changes, including my priorities. I'm grateful for the years I enjoyed the beach.
IF I could pay off my mortgage early I'd consider cancelling the home insurance policy. After getting BLASTED by a major hurricane I had to pay around 1/3 of repair costs out of pocket with the deductible. I've paid in WAY more than they paid back and had enough savings on my own to cover it anyway. I would have had a lot more if not paying them...
I paid off my house almost 20 years ago by raiding my retirement fund. Best decision I ever made.
Getting ready to pay off mine in August. Been in it 20 years. 👍🏻
Living below your means pays
Self insuring is a reasonable option to consider. Many large corporations self insure. You simply need to set aside the money you need to overcome any event. People insured themselves against personal disaster prior to the advent of insurance companies. People look at you like you are a crazy person if you mention the option of setting aside $200,000 as a personal insurance fund now.
@@Gunga-ct9nzwell said 👍
Excluding school, trash, and few other taxes/fees, most of RE tax go to pay salaries and pensions, very little for infrastructures.
And those pensions are huge
Glad I had an emergency fund and insurance had to stay in the hospital for 3 days..holy cow the cost of an emergency now. That was my first time being in the hospital since I was born.
Please don’t tell folks to move to Charlotte it’s already getting overwhelmed . Hospitals traffic crime. It’s really not as cheap as you would think. People come here with high hopes and find it’s not easy street here either.
If I had not managed to purchase a moderate older home, years ago, I would be homeless. It stabilized my payments instead of increasing rents over these years. Even taxes and insurance costs, which are not nice, are still less per month than today's rents. My...dream home...was simply a home I could get into that was.....just enough...and in a location that I like.
I’ve been a home owner since 2012 and I have 2 of them. I’ve never spent 20k in maintenance. Taxes and home insurance is not maintenance costs.
These reports are getting ridiculous Mike
He's gotta find things to keep the fear mongering going. Couldn't just be that Florida is a suck arse state.
bought $160,000 home NWFla 2021 (on SSA income), mortgage was $980/mo (with homeowners' insurance), I placed a metal roof on it for many reasons but also cause insurance agent told me I'd get a discount, NOW my mortgage is $1900/mo -- ALL because of homeowners' insurance
You knew insurance would be a problem. Why did you buy in Florida?
@@DIVISIONINCISION did he say he knew?
@@AshleyCherv. Insurance is always expensive in Florida, baby Ash. He knew.
@@DIVISIONINCISIONbought in Fla because I had to flee Puerto Rico during covid, I am from Fla, so I returned 35 yrs later during lockdown thinking it was the best decision during a time I had nowhere to go. Don't judge dude, each have their own journey.
This is one of the reasons I have never purchased a home, who wants to be bothered with the upkeep expenses!
Yeah, I dropped all of my cable and streaming services because of fee creep. I started out with a $65 cable bill and the price kept rising until it more than doubled. Same goes with Hulu and Netflix had so much woke programming that it had become unwatchable. I do miss watching my sports teams but everybody has their hand out so I refuse to pay. I still watch football which is still available on local TV but it’s only a matter of time until we’ll have to pay to watch NFL football on a streaming service.
In Europe I only pay 0.1% property tax and 0,2% home insurance
Must be nice. It's all different here in the US. It goes by county, city and schools here. Schools take most of the property tax. I'd rather have a house in Europe!
@benton-benton and majority of US schools are below average. Even the expensive suburbs will have low quality education because of teachers quitting or lay offs. You don't get in education what you pay off in taxes in US, we are #32 in the world in education.
Europe? 😮
But you have Putin knocking on your doorstep.
@johnvincent4048 not so quick. NATO will never let that happen. Meanwhile all kinds of shady characters cross the border here unchecked
I especially enjoyed this video because you were only a block away from where I live.
I listen to your videos all the time while I'm at work, didn't realize until just now that i wasn't even subbed to your channel, needless to say i just subbed keep up the good work!
The weather in Northern Illinois very cold in the winter time. pass!!!
Lived here all my life. It’s not that bad. Other than our sucky governor/government, it’s completely doable.
@@nancynelson5411 In my own opinion, I am not fond of this governor , he's NOT LOOKING AFTER the Citizens of USA. He's to worried about himself . I have the same governor , you have. I have heard this for decades, most the money ( taxes ) etc , not going to the Southern counties . Anything ABOVE Highway 80 , those cities are recieving $$$$$ for highways, towns, etcccc, Just not the cities / towns below highway 80 .
these road trip vids are the best!
Superb garden at 11.29. That’s a lot of weeding to keep that so nice.
I just wanted to say I work in insurance and rates in one state cannot be used to influence rates in another state. And yes, I live in Florida and while I’m way up north, my rates will be impacted by the flooding but an hour north of me in GA they will not
I was a homeowner up until 2019 and I never spent anywhere near 18-20k a year on home maintenance...
Amen, I go years with none to little mantience expenses.
There are definitely less expensive, and much better, places to live in America but normally you have to get adequately retired before you go there.
Or work from home.