I hope anyone associated with the vlogbrothers team sees this -- please visit The Financial Diet's content and check it over for wholesomeness and social sensitivity. I had to stop watching and supporting all things TFD after they made some shockingly poverty-shaming (and implicitly sexist) Instagram posts, which were criticized heavily in the comments, and then they not only left the offending posts up, but never apologized. That's not okay and it alienates a lot of people who are most in need of the info TFD shares -- or at least, the info TFD shares when it's not being horrendously tone-deaf.
For me 1. Mortgage is going to be about the same or less than rent. At least I'm building some equity 2. I have a wife and 3 kids 3. I want a yard 4. I want a place I can do with what I want 5.It's quiet. Apartments are the worst. I always wanted to own a home though. I want the barbecues while a drink beer with my other dad friends and bitch about my yard and worldly events. Buying a home is more than just a money decision.
It's a no-brainer when you have a family! I'm single and still arguably come out ahead. I figure these folks live on a coastal state where houses are CRAZY expensive. In California, a $1M house will get you a couple stories and maybe 2k square feet in a middle-class cookie-cutter neighborhood. Here in Indiana, a house for half that could get you 6000 square feet of lake-front property. Or if you would like to ditch the lake front, a house in my hometown just sold for half-mil that had an indoor swimming pool. Then you should hear what they get in parts of northern Texas. But then again, you'd have to be in northern Texas.
@@PokePresto Here in Indiana, I could get a 1000sqft apartment for about $1000/mo. OR, I could get a 1200SQFT house for a total of $500-700/mo in total monthly payments related to the mortgage. More square footage. Payments build equity. And I STILL have more liquid assets available for investment.
@@webx135 100% See that. I am just saying that people will do very well in concidering the eventual benefits of investing in say global index funds or somthing simular instead of buying housing. Overall index funds have been a better investment then buying a house. But ofc i do see the benefits of owning a house, just trying to point out that buying and not renting might not always pay off.
Tormund Giantsbane How do you propose people invest if every penny they earn is taken up in rent and bills? For most average earners it would be an either / or choice! At least by buying they are covering two bases- housing and investment - for one affordable sum. Sure, returns may be higher with alternative investment, but if you have to cover the rent it's pointless.
Um, I bought my house because I'm financially stable and I got tired of being told what I could and couldn't do in my home. Plus, why the hell should I keep on paying for somebody else's mortgage?
you might as well ask "why the hell should i pay for someone else's (insert x)?" every time you purchase anything. when you pay rent, you are receiving a PRODUCT/SERVICE. this is how money works. all the reasons you might be better off paying rent than buying a house are explained in the video.
I recommend he try reading the info on the back of a toothpaste tube. In the 3rd grade we had to read 15 minutes every day for homework so that's what I did one day.
Bad advice actually! A Realtor works for the seller, not for the buyer! Avoid realtors as much as you can when you are buying a house. When selling the housing then only get the best realtors out there.
In your interview with James he says that the best investment you can make is in yourself. . . For me, purchasing my first home was a HUGE investment in myself. I spent 9 years in that place, and in that time I became an accomplished handyman, I learned about landscaping and gardening, I learned about woodworking and carpentry. The man that I am now is completely different than the man I was then. I'm better for having purchased a home. OH YEAH, I also learned that you never should trust a home inspection report. So 9 years later when we purchased a larger home for our growing family, I took all that knowledge gained and used it to make wiser decisions. It's a point that you didn't make in this video, but I think it's really important: For some, not for all, the responsibility of home-ownership is one of the best opportunities for self-discovery that money can buy.
Sam Gerdt He’s speaking in terms of investment. If you’re attributing those skills you’ve gained as the sole justification of a “good investment”, you’d be wrong. Taking classes or training on gardening, handy-work, etc would have been much cheaper and netted you actual processional training. Buying a home, in that sense, is not the best investment in yourself. Actually investing in training, and taking all the money you saved on not buying a house into the stock market, would have been much better. Again, his words not mine.
@@koffiekoffielekkerbakkieko8425 My home was a flip, and the inspector failed to mention: 1) The water heater was 18 years old (avg life is 9-10 years); 2) AC did not have proper flow into top floor and no air return, making it 96 degrees while downstairs was 70 in the summer; 3) none of the toilets were seated (bolts were just sitting on tile) so all leaked from the base after some usage (to be fair not sure who would have checked this). I would suggest a specialist like plumber checks the house independently.
@@SwawesomeT the dude's net worth is like 50 million dollars, as far as expenses neither are really worth worrying about. Which is probably part of why he doesn't care about the investment a house might be. If I can spend 1 million on a house and 49 million on stocks or 50 million on stocks and pay for my rent off my dividends I'm going to do the latter.
I bought a house two years ago (as of June 2nd) because I was going to be 50 years old and if I didn't do it before that birthday I doubted I'd ever manage it in the future. Also, I was sick of living in apartments until they raised the rent so high that I had no choice but to move. The couple of months leading up to lease renewal were often stressful as I never knew how much it would jump. I didn't buy one because that's what you're "supposed" to do or because I thought it was a good investment, but because I was sick of moving every few years and I wanted a place I could modify as I saw fit and truly make my own. It is my goal to die in this house. Mind you not anytime soon, but when the time comes I'm hoping I've been able to hold onto it. Then I plan to haunt it because I'm selfish like that.
I’m a millennial and my wife and I bought a house when I was 27. We’ve lived in it for four years and love it. Yes it is a lot of work, but we can paint, landscape, and do whatever we want with it. Plus there was no way in the world we could rent a house like ours for the amount we pay per month. Not even close. Millennials can absolutely own a home.
Agreed! When my husband and I bought our first place rent in the area we were looking as astronomically higher than buying. We saved at least $350/400 per month on owning vs. renting. Now, of course, some of that money went into maintenance of the house but when we sold the place we had $35k in our pockets (after realtor fees). You don't get anything after renting except maybe your security deposit back.
Life Progress - Health, Wealth, & Happiness Channel I also rent. I cannot imagine living 40 years in the same house. I pay a high rent and I live in a good house. If I’m bored with it I move. And I certainly don’t have to do the repairs.
@@narcismebelgie Alot of people including my parents are always pestering me to buy a house. Exactly reason number 1. I am just not someone that would want to be tied down financially for 30 years even though you could of course sell it way before that time. I am very debt conscious and I will have to pay a high cost regardless. I like the flexibility of moving if I am not happy plus in a few months i will finally be debt free.
My reasons: I knew I didn't want to move again for a long time. I was annoyed by landlords not taking care of the property. I was tired of my rent always going up.
@@betz6507 Mine went down because the previous homeowner could not claim it as a homestead exemption (creates a 1% tax cap) since it was their second home. Since taxes are in arrears, my tax bill went down by half after owning the home a year!
@@betz6507 Our property taxes went up by ~$1200/yr over the past 17 years while the property value went up by almost 80%. That's fairly reasonable compared to how rent more than doubled (almost tripled) in the meantime.
@@betz6507 and actually that's not true at all, my property taxes went WAY down during the market/economy crash. they have come up a little now that things are stable again. they go up like a couple dollars a year if that, not like rent that can double.
I'm squarely in the renter for life (probably) category. I did own a home from '04-'07 (sold just as everything was crashing down)... and while I loved the house (it was a live/work loft that we had custom designed from the ground up) I hated owning the house. I haven't lived in the same house for more than 6 years since 1980, when I was 12. I don't really have a hometown or a house that I "grew up in." I get bored and I like to try out other cities and states to live in. With renting, if something breaks I call the landlord, grab my laptop and go sit at the coffee shop and work until it's fixed (I also have worked from home for nearly 25 years). I traveled a lot for work pre-2020 and I liked being able to not worry about my investment while I spend three weeks in Italy working or whatever. I'd rather invest in adventures and doing things with friends and family. I live in a cozy apartment downtown in the city and lived previously in the middle of the Chihuahuan desert. It makes very little sense for me to buy... though there are things every now and then that would just work better if I owned, but the negatives far outweigh the positives for me.
I bought my home with my husband at 23 in 2014. We saved for two years. Pinched every single penny and it was the best decision we ever made, (besides getting married, that was pretty awesome too). Congratulations!! ♡
@@markm0000 and living in the dirt cheap middle of bumfuck nowhere while making rich-people money. "discipline" is a bullshit excuse from the rich to write off normal people's genuine hardships.
#2. Yes, real estate has a lower rate of return than stocks (4% vs. 8%), but this doesn't take leverage into account. 4% increase of a $300,000 property vs. 8% of $15,000 (5% cash down payment on the house that you could put into stocks) = $9000 vs. $1200.
We bought a home because where I live in Nashville it was "AS" expensive to rent than it was to buy a home. Plus you have the opportunity to gain equity which is pretty cool.. Also, if I want to paint or "add to or take away" for the home to make it my own I can do that. and depending on what updating you do can add to your overall value. But of course this is ALL dependent on the market :(
I know what you mean! my parents bought the house I grew up in for $17,000 back in the early 70's but of course there income was much lower as well.it was still comparatively much cheaper though.
Same goes for houses too. Same goes for anything really, in an "economic system" based on arbitrary concepts (and not on the scientific method). Like: growing consumption is good (even if it's ecologically unsustainable)? Nope. Yet, according the mainstream "economics", the answer is somehow "yes".
Not true it's more along the lines of you can get some of your money back given your vigilant over the market. You are certainly not going to recoup your investment in a matter of minutes before the mess hits the fan in terms of real estate. If your someone who want to enjoy a retirement after 60+, play the waiting game. If you want to have amazing experiences when medical care proximity isn't your main priority.. well you decide.
I bought here recently and have some of the same concerns. Especially because I'm a single guy. I did the calculator you linked to. My break-even happened just short of 3 years and then the improvement was enormous from then on. Not sure where you guys are from, but where I live (Indianapolis), I had a 600sqft studio apartment for $1300/mo in rent. I bought a 3500sqft home and my monthly payments are..... $1300/mo. No. Change. The master bed/bath alone is 40% larger than my entire apartment was. For the SAME MONTHLY PAYMENT. Plus it isn't disappearing, it is going into equity. Even at 0% growth I still come out ahead. Not bad. Add on the fact that I can do all the modifications and customizations I want, and I don't have to keep moving ALL my belongings nearly every year. Kinda nice to be in a house.
I know people that have bought a house and pay less than what I pay for rent and they have the same amount of rooms. Also my rent goes up every year. Plus to move I need to pay rent first month and deposit. So everytime I move I have to pay almost the same amount as a minimum for a down payment for a home. Also the last place I lived in the homeowner sold the house and we were forced to move. Another reason to have your own place. Lol
where the fuck cheap ass place do you live that the down payment on a home is at all comparable to first+deposit on rent? if that was the case nobody would ever rent.
I bought at 175k in the MSP area. At the worst of the downturn my county tax house valuation was 55k. Comparable homes are now selling around 200k. Also, that extra money doesn't exist until you sell. Just like stocks.
Mike Hurley If the Dallas market falls that much I’d be shocked. My parents bought their house for $40K back in the 70’s in Dallas. It’s worth $375K now. I do expect fluctuations but not that much.
11:45 um, yeah. But then you have a house to live in when you retire so...? Or you could rent, spend the same over 30 yrs and end it with no where to live when your income slows. Ig if you looked at the value of investments over 30 years vs the value of owning a home (value of home plus however long you'll live and the reduced cost per month), you could figure if you'd make more money after the thirty year period from owning the home or owning a bunch of stocks, that would help. Side note: for many people the home is better because the investment is not optional. You pay every month as a bill. But stocks, you can shrug every other month and buy crap instead. Ie less over time.
And...you don't have to share a wall, floor, or ceiling with a loud neighbor. That was one of our pros for buying, and the mortgage is less than renting a whole house. Plus #3. Big pro.
I spent the last twenty some odd years renting a house. I've recently vacated and am currently trying to downsize my life. I have accumulated a lot of junk that has sentimental value but I don't need. So I'm in a reverse situation from "The Wheezies." I want my future to be more open to travel. I've been very sedentary most of my adult life and I'd like to be able to let go of a lot of this stuff and take up less space in a more practical and functional lifestyle. The house gave me the illusion of security the past couple decades but since I was renting I have nothing to show for it. However, had I purchased a house twenty years ago my financial situation woulda been far worse. So I think now I'm in a good place to need less and move more. Each person has to make those choices for themselves. There are no right or wrong answers really. It's just what your needs are at the time.
Nah. Their house is in pretty great shape. Except for the electrical, the chimney, the foundation, plumbing, shocks, struts, breaks, rings, pistons, appliances, carpet, the roof needs some work...
@@VivienneAndersen Good Lord, you're giving me flashbacks. A couple years ago my husband and I were in the market for a house. We found a cute little one, put an offer in, and arranged an inspection. As it turns out, the cute little house was an absolute disaster with a fresh coat of paint and new floors. It didn't even have gutters!
We’re closing on a house this month! We’ve bounced back and forth between buying and renting. Some purchases were bad (I’m looking at you, 2006), and some rentals were terrible (I’m looking at you, landlords who weren’t paying their mortgage with our rent $), but in the end, we prefer owning. It’s nicer to have control, you don’t have to deal with crummy landlords, and it’s fun to have house projects that make it more custom/nice to live in... especially with kiddos. Congrats to your family! Good choice! :)
Love not having to save a million dollars for that busted hot water heater, and a roof, and mowing the lawn..... ahhhhhhh..... I saw what my parents had to go thru. I thought - since unemployment will be in my future, it’s probably not be wise. Plus I love to move around every few years. I hate owning stuff.
@@pheenobarbidoll2016 Home warranty??? Hahahahahahahaaaaaa!!!! Home warranties are a scam, sorry to inform you. Same goes for the roof unless a major hail storm is the cause for needing a new roof.
1. weekend backyard bbq parties 2. at least my mortgage actually leads to something 3. once you pay it off, you have a little spot in the world to call yours.
I bought my first house a couple years ago when I was 24, and I LOVE IT. 1) My mortgage is low bc I refinanced this year and got a good interest rate and I put down 20%. 2) My mortgage payment doesn't disappear like a rent payment does. I own the home so I'm paying into my equity rather than paying a landlord. 3) The value has doubled since I bought it (roughly). Due to the housing shortage in 2021, my home is worth almost twice what I bought it for and if I sold it today I could put almost the original price of the home in my pocket. 4) Security- I don't have to worry about rent going up, my payment is locked in for 30 years and in 30 years I'll own the home entirely. It's very predictable which I appreciate.
But at the end of that thirty year graph, you own a building that is now worth a million dollars that you can live in WITHOUT any more payments. And with a fixed mortgage, what seems like a steep payment now will seem really cheap in 10-20 years.
I see what you're saying... ahem.... *gets out calculator* If you punch in a 99% down payment on the home right away (it doesn't let you put in 100%) it says that buying will never be cheaper than renting (based on my assumption about stock market interest being 9% which it has historically been and has been in my own experience). Why is that? Well say your home is $300K. If you invested all that money instead, the growth minus rent would out pace what you're earning on property (historically 3%) minus maintenance, taxes, insurance, etc. And I crunched some numbers. After 30 years with a normal 20% down payment you'd likely save more money selling your home, renting, and investing the money (assuming 9% growth) rather than keeping the home (with property growing at a historically 3% growth rate) and paying taxes, insurance, maintenance, etc. But this also assumes a certain level of rent and rent growth. Where we're buying a home it's true that if we paid an equal amount of rent that we're paying for a mortgage (plus other expenses) we'd be living in a smaller, probably crappier place. AND we wouldn't be able to change it. AND we could get kicked out. So yeah, it's a toss up and depends on how crappy of an apartment you're willing to live in or how good of one you can get where you live.
Buying a home really paid off for me. I came out ahead $30,000 on the sale of my starter home after living there 11 years, and got my second house that I really wanted. Eventually I’ll own it outright, so at that point I’ll only have to pay taxes and insurance on it.
The biggest advantage for me is that I won't have to pay rent for the rest of my life (that would probably keep going up each year). I bought a house in March on a fixed-rate 30-year loan. I plan on paying it off in 15 years, though, by paying extra towards the principal each month, and then I won't have that monthly expense any longer. That will make it easier when I'm ready to retire to be able to afford to do so. :)
@@xzonia1 Real estate taxes go up every year also.- Your plan on paying extra towards the principal each month is a wise move. Make sure you have an emergency fund also. In time, the water heater WILL need replacing, and it most always comes as a surprise.
@@pre1980cars I think a lot of this depends on where you are and the HOA. We ended up passing on a lovely neighborhood because of the "overly enthusiastic" HOA
I like owning a house because it's like investing in myself rather than making a landlord rich.... When I rented an apartment my rent went up every year. My house payment was always the same. I paid off a 15 yr mortgage in 12 years so now all I pay is property taxes. Plus not hearing my neighbors on the other side of the wall is a huge bonus. I'm not rich I bought the cheapest, smallest, crappiest house in the nicest neighborhood and haven't put any extra money into it. My neighbors hate me but the the house is probably worth double what I paid for it. That's why you buy a house.
I love it. I grew up moving constantly for many years, and I hated everything about the entire situation. I wanted to plant trees, put down roots, and get comfortable in my house without worrying about the landlord telling me no. I Hated Renting with every fiber of my being.
I moved around a lot when i was growing up too but i’ve had the opposite reaction. I can’t imagine staying in one place now. buying a house would mean i would have to stay put and the thought of that terrifies me.
I bought a one bedroom condo in 2008 (when the market was down). When I wanted to move in 2013, the market wasn't good enough to sell it so I rented it out. Best decision I ever made! I bought a duplex on the other side of town and my rented duplex unit paid most of my mortgage. A couple of years ago I moved in with my home-owner boyfriend so now I have 3 rentals. Rents are going up like crazy and if I was a renter I wouldn't be happy about that, but as a landlord, I'm doing very well even if I do have to pay for things that need fixing. I think if you do it right, you can work this renting vs owning thing to your advantage. By the way, buying cost me less than renting because I was in the Army and I used my VA benefits (no money down) to buy both places. Not everyone has that benefit, but that's how I did it. I'm super glad there are a lot of people who prefer to rent...keeps the rental market strong and the rents keep going up.
I own a duplex and I live in one side and rent out the other. Some people are better off renting for various reasons. My tenant, for example, is a workaholic. Her job is her life. She has no interest in owning a home, due to all the time it would take. I'm pleased that she's paying for a big chunk of my mortgage, and I'm sure she's pleased that she doesn't have to mow the lawn and do yard work.
A lot of people I know are buying homes because rent is too d*mn high! :P And they are sick of landlords jacking up rent prices everytime its time to renew their contract. They were paying anywhere from 400-1000 more a month on rent than on a mortgage. We (my husband and me) plan on planting our roots soon and looking into buying a house. Luckily this video confirmed I know *most* of the pros and cons of buying. So i feel a bit more confident now. So thanks for that! ALSO I have been popping on and off your channel for like 10 years now and didn't realize I wasn't subscribed and that you didn't have 1M yet. You got a new subscriber.... sorry its taken 10.
Not sure that's a great reason to buy vs rent as they could also invest in stocks and pass on a pile of cash to their daughter, which she could then use to buy a house mortgage free.
I bought a condo the same month I graduated college at 22 (talk about stress). My parents were strongly encouraging me to do so and I was very against it because I’m young and wasn’t sure where I wanted to live other than close to work. However, the second I realized that all the apartments I liked would cost the same as a mortgage, I decided to buy. Well worth it!
U sell it for more cash!!!! Like my Dad 86,000 in 1986 = 1,000,000 in 2018.... They paid off all their bills and have nearly nothing to pay anymore. It's an investment, just reality, when you rent you throw all your money away.
I suppose. But you'd have to be a REALLY bad investor considering that a diverse investment portfolio would have ups and downs but ultimately would have only grown over the past 100 years. And there's plenty of risk in property, too. Storm damage, flood damage, downturn in the neighborhood, real estate market crash, etc. Though BOTH have on average gone up historically.
You shouldnt buy a home as an investment. You buy it since you need a place to live, and there is a chance you MAY gain equity. Renting is a 100% loss. Rent in my area is about $2500 for a 3 bedroom. Our mortgage is $900. When we rented the company subsidized the electric used by the building i.e. elevators, hallway lights across all the renters in the building. Monthly electric cost was around $250. In our home I pay about $40. I'm not expecting to make money on our home, but over the course of 5 years of renting at $2500/mo would = $150,000 gone and never to return. 5 years of owning will cost us $60,000 with half the mortgage paid off. I could sell the house for half of what we purchased it for and still be ahead by tens of thousands.
The stock market over the last 50 years may have made 7.5%, but the market over the last 20 years has not been anywhere close to that. May 1999 - present the Dow has gone up by a factor of about 1.5 (16 to 24.5k), a rate of 2.2%. If you happened to put your money in in the early 80's or in 2009/2010, then you've cleaned up, but if not, it's nowhere near as good a moneymaker as the pundits say.
EVERYONE says “it’s a lot of work” (just like Craig’s parents) as if that’s a negative thing but my husband & I absolutely LOVE home maintenance! Our first home was our first baby (before our twin kids came along). Perfect starter home in ‘03, we improved wisely and sold it for OVER ASKING in ‘11. (Yes in 2011!!!! In WI too! How does that happen???) We bought wisely again and paid off the mortgage in 3 (yes 3) years. Now we have a second (“weekend”/“vacation”) home nearby. Did I mention we love home maintenance? 😂 Glad to have u back in WI Craig. Welcome, Chyna & Ada.
I realise I’m no financial advisor, but I think it’s a no brainier buying. Why pay someone else’s mortgage? That’s all your doing while renting. Most people aren’t investing money elsewhere that they would otherwise be spending on a house so I think that point it moot. Also don’t forget, once you have paid it off in like 20 years or so, you don’t have to continue paying like you would rent lol.
I haven't read ALL the comments so don't know if this has been mentioned before. IMHO, you missed the best reason to buy a home. When the home is paid for you NEVER have to pay a mortgage (or rent) again. This is a BIG deal when a person retires. I am 68 and have been mortgage-free and rent-free for about 25 years. It has afforded me the opportunity to retire at 59 and do other stuff with my money instead of paying for housing. Of course, I have to pay taxes and insurance but still cheaper than renting for the rest of my life, which would seriously cramp my retirement. I do enjoy your videos but as a retired real estate agent and property manager, I felt the need to chime in with my humble opinion. :-)
The stock market doesn’t give you a better return, that’s just false. 7 percent on 100k would be 7k a year. A 100k down payment on a 500k home that appreciates 3% 15k which is more than double and that’s not to account for the equity you gain with every payment. Idk what kind of channel this is but I hope it isn’t a personal finance one
We bought our last house (3 kids) in 2000. We stayed with one employer and home and retired in our 50s. Sold the big house (double what we bought it for), moved states and bought a much smaller home for cash. Home ownership is an investment.
What I don't really understand is... If it is cheaper to rent, who the hell are the dumbasses buying houses and renting them out for less than what they need to offset their costs and opportunity costs? In our case, anyway, renting would have been much more expensive than the mortgage + homeowner's association costs, maintenance, insurance and what are downpayment would have yielded. Plus, rents are going up very steeply in this area. I tried it out on the Nerdwallet calculator and if we stay no less than 2 years, buying is better. Which we've already done, so I'm good with this outcome :-)
Likely a month or so away from renting my first place. Assuming someone hasn't snapped up the place by tomorrow (or maybe the day after). So excite. Much adult.
We rented a house for 4 years and they decided that they were going to sell. We had 3 months to pack and find a new place to live. You also don't have to ask permission to allow someone to stay with you. The next house we rented, our children turned 18 and the landlords decided that our kids had to APPLY to live in the house they had been living in for years. We also couldn't make any modifications to the house like painting it. We couldn't get any pets without asking permission or paying a fee. If something broke, the landlord may or may not choose to fix it - for example, the ice maker on the fridge stopped working and the landlord decided that they weren't going to fix it. A burner on the stove broke, didn't fix it. The dishwasher broke and they got a beat-up used one and threw it in. The pool cleaners sucked and since they were under contract with the property management company, we couldn't fire and replace them. If you don't like having control over your life, rent. If you prefer freedom and certainty, buy a house.
Forget about investing in a home. Is your mortgage more than rent would be? Or is rent more than your mortgage would be? I like paying only $950 a month to live in a place that I bought 15 years ago that would cost me $2000 a month to rent today. It's saving me over $1000 a month and it will only get better every year that goes by.
If I could go back in time, I would find a way to save 80% of my income as soon as I got out of high school, work my ass off for 10 years and just buy a house all cash.
My house was an incredible investment, because I rent rooms. I actually make money living here after 3 years and a refinance. The mortgage was cheaper than a 2 bedroom apartment from day one.
![[UNCUT] “บอสณวัฒน์” ลากไส้!! ใครหนุนหลัง "แม่ตั๊ก ป๋าเบียร์" I คนดังนั่งเคลียร์ I 30 ก.ย. 67](http://i.ytimg.com/vi/QlD7mU2KKRk/mqdefault.jpg)
So good. -John
Coming sometime next year: Why do people like gardening?
Just ask John about mowing lawns... and grass in general!
I hope anyone associated with the vlogbrothers team sees this -- please visit The Financial Diet's content and check it over for wholesomeness and social sensitivity. I had to stop watching and supporting all things TFD after they made some shockingly poverty-shaming (and implicitly sexist) Instagram posts, which were criticized heavily in the comments, and then they not only left the offending posts up, but never apologized. That's not okay and it alienates a lot of people who are most in need of the info TFD shares -- or at least, the info TFD shares when it's not being horrendously tone-deaf.
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@@afroceltduck Oh, how appropriate it would be, as it turns out.
The impression of the banker killed me 😂 😂 😂
Where did you get that wine?
Grapes.
Best answer ever.
MY FAVORITE PART lol
Never change, Craig's mom, never change.
That killed me!
How did you guys get wine? Where did that come from?
Grapes.
It's funnier the way they actually said it.
Wade Wilson you must be fun at parties.
For me
1. Mortgage is going to be about the same or less than rent. At least I'm building some equity
2. I have a wife and 3 kids
3. I want a yard
4. I want a place I can do with what I want
5.It's quiet. Apartments are the worst.
I always wanted to own a home though. I want the barbecues while a drink beer with my other dad friends and bitch about my yard and worldly events. Buying a home is more than just a money decision.
It's a no-brainer when you have a family! I'm single and still arguably come out ahead.
I figure these folks live on a coastal state where houses are CRAZY expensive.
In California, a $1M house will get you a couple stories and maybe 2k square feet in a middle-class cookie-cutter neighborhood. Here in Indiana, a house for half that could get you 6000 square feet of lake-front property. Or if you would like to ditch the lake front, a house in my hometown just sold for half-mil that had an indoor swimming pool.
Then you should hear what they get in parts of northern Texas. But then again, you'd have to be in northern Texas.
@@webx135 You guys do know you could do a better investment by investing instead of buying a house.
@@PokePresto Here in Indiana, I could get a 1000sqft apartment for about $1000/mo.
OR, I could get a 1200SQFT house for a total of $500-700/mo in total monthly payments related to the mortgage. More square footage. Payments build equity. And I STILL have more liquid assets available for investment.
@@webx135 100% See that. I am just saying that people will do very well in concidering the eventual benefits of investing in say global index funds or somthing simular instead of buying housing. Overall index funds have been a better investment then buying a house. But ofc i do see the benefits of owning a house, just trying to point out that buying and not renting might not always pay off.
Tormund Giantsbane How do you propose people invest if every penny they earn is taken up in rent and bills? For most average earners it would be an either / or choice! At least by buying they are covering two bases- housing and investment - for one affordable sum. Sure, returns may be higher with alternative investment, but if you have to cover the rent it's pointless.
THE AMERICAN DREEEAM. Great video! Congrats on buying the home. Also...
5. If you live in LA or NYC it's literally impossible to afford a decent home.
Matt D'Avella or Hawaii😳
Fact.
Tell that to Graham Stephan
Or London
Or Seattle... or San Francisco...
It's not an investment. It's a place to live that may yield equity
What? Your parents dont talk like that all the time? Im disappointed....
Great video!
2:52 "can you *_pretend_* to be real for a second"
@@happi-entity good observation.
luv to have my emotions governed by generational stockholm syndrome
I love the way wheezy has changed over the years... 🥰
Um, I bought my house because I'm financially stable and I got tired of being told what I could and couldn't do in my home.
Plus, why the hell should I keep on paying for somebody else's mortgage?
I'm pretty sure most people who rents don't do it because they like to do it...
you might as well ask "why the hell should i pay for someone else's (insert x)?" every time you purchase anything.
when you pay rent, you are receiving a PRODUCT/SERVICE. this is how money works. all the reasons you might be better off paying rent than buying a house are explained in the video.
You don't own your home even if it's completely paid off
"bank you very much" killed me xD
Bang you very much
:D I'm = like, I can't be the only one who was killed with that joke... (scrolls down, finds this comment)
Scrolled down just for this lmfao
the monthly on my house is significantly cheaper than the crappiest apartment in my area, so it was an easy decision for me to buy.
PapaWheezy "reading" the Grey's Anatomy CD made me LOL.
I recommend he try reading the info on the back of a toothpaste tube. In the 3rd grade we had to read 15 minutes every day for homework so that's what I did one day.
Your realtor seems like an awesome person! So much humor as well as great advice!
Bad advice actually! A Realtor works for the seller, not for the buyer! Avoid realtors as much as you can when you are buying a house. When selling the housing then only get the best realtors out there.
I want to be friends with your parents. And you guys. But also your parents. And your realtor.
Sameeeeee
I you live near Madison I can make that happen. At least the REALTOR® part.
I mean. That’s a lovely sofa. Your toddler will now commence unloading it of all its pillows on the regular 😂😜
In your interview with James he says that the best investment you can make is in yourself. . .
For me, purchasing my first home was a HUGE investment in myself. I spent 9 years in that place, and in that time I became an accomplished handyman, I learned about landscaping and gardening, I learned about woodworking and carpentry. The man that I am now is completely different than the man I was then. I'm better for having purchased a home.
OH YEAH, I also learned that you never should trust a home inspection report. So 9 years later when we purchased a larger home for our growing family, I took all that knowledge gained and used it to make wiser decisions.
It's a point that you didn't make in this video, but I think it's really important: For some, not for all, the responsibility of home-ownership is one of the best opportunities for self-discovery that money can buy.
This is such a great comment, thank you
Sam Gerdt He’s speaking in terms of investment. If you’re attributing those skills you’ve gained as the sole justification of a “good investment”, you’d be wrong. Taking classes or training on gardening, handy-work, etc would have been much cheaper and netted you actual processional training. Buying a home, in that sense, is not the best investment in yourself. Actually investing in training, and taking all the money you saved on not buying a house into the stock market, would have been much better. Again, his words not mine.
could you elaborate on why you should never trust a report? what happened that made you think that way?
@@koffiekoffielekkerbakkieko8425 My home was a flip, and the inspector failed to mention: 1) The water heater was 18 years old (avg life is 9-10 years); 2) AC did not have proper flow into top floor and no air return, making it 96 degrees while downstairs was 70 in the summer; 3) none of the toilets were seated (bolts were just sitting on tile) so all leaked from the base after some usage (to be fair not sure who would have checked this). I would suggest a specialist like plumber checks the house independently.
You sound like a cult member, LOL
“It’s not the financial decision I would have made” says the man with a giant arcade machine in his office behind him lol
Because housing and hobbies are on the same footing financially speaking 🙄
@@placksheep not even only that, imagine equating 1-2 thousand dollars (estimating very liberally) to 150 to 300 thousand dollars lmao
He was also part of the minimalist video and he explains why he has what he has now in case you're interested.
@@SwawesomeT the dude's net worth is like 50 million dollars, as far as expenses neither are really worth worrying about. Which is probably part of why he doesn't care about the investment a house might be. If I can spend 1 million on a house and 49 million on stocks or 50 million on stocks and pay for my rent off my dividends I'm going to do the latter.
OMG that was the best sponsored content I have ever seen hahahahaha
Great video, Greg Bensene!
I think you're confused. It's Craig Benzon.
That "Grapes" Joke caught me so off guard, I literally spit on myself!
I missed it …..at what time marker was it?
@@carlosnajera65 This will probably be a disappointment to you now but here you go! 3:00
After buying two homes this is the first realtor that felt like a real person. I wish my long term plans included Madison
Gross.
Craig: why do people like owning a house?
Me: never thought about that tbh but I guess I'm about to find out the answer
Aviv Resnick +
I bought a house two years ago (as of June 2nd) because I was going to be 50 years old and if I didn't do it before that birthday I doubted I'd ever manage it in the future. Also, I was sick of living in apartments until they raised the rent so high that I had no choice but to move. The couple of months leading up to lease renewal were often stressful as I never knew how much it would jump. I didn't buy one because that's what you're "supposed" to do or because I thought it was a good investment, but because I was sick of moving every few years and I wanted a place I could modify as I saw fit and truly make my own. It is my goal to die in this house. Mind you not anytime soon, but when the time comes I'm hoping I've been able to hold onto it. Then I plan to haunt it because I'm selfish like that.
I love how the dads just reading a greys anatomy dvd
John has a $400 microphone sitting behind him, but he's using his headset mic??
"Invest in yourself"
The most under-valued financial advice there is.
I love your new content and I am so happy that your content has evolved and matured to this point
The Money Pit! One of my favourite all time films. Great Video.
"Bank you very much!" should be what every teller says as you leave
Your videos have been extra extra great recently Craig
This was awesome
The banker especially
TH-cam suddenly feels like a small world
I’m a millennial and my wife and I bought a house when I was 27. We’ve lived in it for four years and love it. Yes it is a lot of work, but we can paint, landscape, and do whatever we want with it. Plus there was no way in the world we could rent a house like ours for the amount we pay per month. Not even close.
Millennials can absolutely own a home.
You can't generalise an entire group of people based on when they were born.
@@justrobin1234 You can actually. They're called generations.
Its easier to buy a house, than it is to buy a car
Agreed! When my husband and I bought our first place rent in the area we were looking as astronomically higher than buying. We saved at least $350/400 per month on owning vs. renting. Now, of course, some of that money went into maintenance of the house but when we sold the place we had $35k in our pockets (after realtor fees). You don't get anything after renting except maybe your security deposit back.
@@Bonanzoo Not every millennial was dumb and went into loads of student loan debt.
"Owning a home makes me LORD ... of the LAND!" Lord of the Land, Craig's Dad, 2019.
Louis Gentilucci Long may he reign.
Ore like lord of a backyard
We bought a house 8 months ago........ and I LOVE IT. Making it our own, and making it look nice feels so good.
*_Personally I wouldn't buy a home unless I planned to rent it out. I don't like the idea of being tied down by a home since I like to travel a lot_*
Life Progress - Health, Wealth, & Happiness Channel
I also rent. I cannot imagine living 40 years in the same house.
I pay a high rent and I live in a good house. If I’m bored with it I move.
And I certainly don’t have to do the repairs.
@@narcismebelgie Alot of people including my parents are always pestering me to buy a house. Exactly reason number 1. I am just not someone that would want to be tied down financially for 30 years even though you could of course sell it way before that time. I am very debt conscious and I will have to pay a high cost regardless. I like the flexibility of moving if I am not happy plus in a few months i will finally be debt free.
XtremeGaming I understand you.
I could buy one but I love change too much 👍
Also, i would recommend 12 months of liquidity, not just 3.
My reasons:
I knew I didn't want to move again for a long time.
I was annoyed by landlords not taking care of the property.
I was tired of my rent always going up.
If you own .. taxes ALWAYS go up, lol.
@@betz6507 Mine went down because the previous homeowner could not claim it as a homestead exemption (creates a 1% tax cap) since it was their second home. Since taxes are in arrears, my tax bill went down by half after owning the home a year!
@@betz6507 not in the bottom of the ocean
@@betz6507 Our property taxes went up by ~$1200/yr over the past 17 years while the property value went up by almost 80%. That's fairly reasonable compared to how rent more than doubled (almost tripled) in the meantime.
@@betz6507 and actually that's not true at all, my property taxes went WAY down during the market/economy crash. they have come up a little now that things are stable again. they go up like a couple dollars a year if that, not like rent that can double.
I'm squarely in the renter for life (probably) category. I did own a home from '04-'07 (sold just as everything was crashing down)... and while I loved the house (it was a live/work loft that we had custom designed from the ground up) I hated owning the house. I haven't lived in the same house for more than 6 years since 1980, when I was 12. I don't really have a hometown or a house that I "grew up in." I get bored and I like to try out other cities and states to live in. With renting, if something breaks I call the landlord, grab my laptop and go sit at the coffee shop and work until it's fixed (I also have worked from home for nearly 25 years). I traveled a lot for work pre-2020 and I liked being able to not worry about my investment while I spend three weeks in Italy working or whatever. I'd rather invest in adventures and doing things with friends and family. I live in a cozy apartment downtown in the city and lived previously in the middle of the Chihuahuan desert. It makes very little sense for me to buy... though there are things every now and then that would just work better if I owned, but the negatives far outweigh the positives for me.
I bought my home with my husband at 23 in 2014. We saved for two years. Pinched every single penny and it was the best decision we ever made, (besides getting married, that was pretty awesome too).
Congratulations!! ♡
how the fuck did you save up a down payment on a house in only two years on 21-22 year old incomes?
@@Pfhorrest Probably lived with parents and used a single car. It’s do-able just requires discipline.
@@markm0000 and living in the dirt cheap middle of bumfuck nowhere while making rich-people money. "discipline" is a bullshit excuse from the rich to write off normal people's genuine hardships.
#2. Yes, real estate has a lower rate of return than stocks (4% vs. 8%), but this doesn't take leverage into account. 4% increase of a $300,000 property vs. 8% of $15,000 (5% cash down payment on the house that you could put into stocks) = $9000 vs. $1200.
cuz i get to grow food and dig holes where ever I want
Aye, and play loud music at 4am. Pretty much the only reasons ill end up buying I think.
Okay I was NOOOOOT expecting to see Vivienne in this video. She was our Realtor too!
We bought a home because where I live in Nashville it was "AS" expensive to rent than it was to buy a home. Plus you have the opportunity to gain equity which is pretty cool.. Also, if I want to paint or "add to or take away" for the home to make it my own I can do that. and depending on what updating you do can add to your overall value. But of course this is ALL dependent on the market :(
My mouth literally dropped open when your dad said he payed 40.000 for his home back then
Krat my parents payed 35k in 1993. I'm terribly jealous of their luck.
I know what you mean! my parents bought the house I grew up in for $17,000 back in the early 70's but of course there income was much lower as well.it was still comparatively much cheaper though.
Boomer baby Boomer
In case of an economical crisis the moto "with stocks you always get your money back" is really really really untrue.
Yeah and also without economical crisis companies fuck up
And you do not have direct control of the investment.
Same goes for houses too. Same goes for anything really, in an "economic system" based on arbitrary concepts (and not on the scientific method). Like: growing consumption is good (even if it's ecologically unsustainable)? Nope. Yet, according the mainstream "economics", the answer is somehow "yes".
how
Not true it's more along the lines of you can get some of your money back given your vigilant over the market. You are certainly not going to recoup your investment in a matter of minutes before the mess hits the fan in terms of real estate. If your someone who want to enjoy a retirement after 60+, play the waiting game. If you want to have amazing experiences when medical care proximity isn't your main priority.. well you decide.
I bought here recently and have some of the same concerns. Especially because I'm a single guy. I did the calculator you linked to. My break-even happened just short of 3 years and then the improvement was enormous from then on.
Not sure where you guys are from, but where I live (Indianapolis), I had a 600sqft studio apartment for $1300/mo in rent. I bought a 3500sqft home and my monthly payments are.....
$1300/mo. No. Change.
The master bed/bath alone is 40% larger than my entire apartment was. For the SAME MONTHLY PAYMENT. Plus it isn't disappearing, it is going into equity. Even at 0% growth I still come out ahead.
Not bad. Add on the fact that I can do all the modifications and customizations I want, and I don't have to keep moving ALL my belongings nearly every year. Kinda nice to be in a house.
i live in california. sadly the numbers are not as favorable -_-.
Also, I love your moms t shirt. #adoption
Rent can be raised. Fixed interest 30 year loan will stay relatively constant.
You mean literally?
I know people that have bought a house and pay less than what I pay for rent and they have the same amount of rooms. Also my rent goes up every year. Plus to move I need to pay rent first month and deposit. So everytime I move I have to pay almost the same amount as a minimum for a down payment for a home. Also the last place I lived in the homeowner sold the house and we were forced to move. Another reason to have your own place. Lol
ageofbogyo forced move outs have been mentioned at 14:10
@ageofbogyo they mentioned being forced to move out, he said it happened to him a couple of times.
where the fuck cheap ass place do you live that the down payment on a home is at all comparable to first+deposit on rent? if that was the case nobody would ever rent.
@@Pfhorrest I know right?!
We bought our house in Dallas for $138K several years ago and we just it had appraised and it at $356K. 😲😲😲 We gonna be ok if we ever sell. Lol
until house prices drop, if you really want to 'cash in' you should sell this now and buy a smaller home
Braadkuiken they’ll never drop that much.
I bought at 175k in the MSP area. At the worst of the downturn my county tax house valuation was 55k. Comparable homes are now selling around 200k.
Also, that extra money doesn't exist until you sell. Just like stocks.
Mike Hurley If the Dallas market falls that much I’d be shocked. My parents bought their house for $40K back in the 70’s in Dallas. It’s worth $375K now. I do expect fluctuations but not that much.
I love your realtor “you have to live somewhere!!”
I love when you sneeze in the middle of a roleplay and keep roleplaying xD
DUUUDE your mom always scrolling on her phone is comedy gold.
11:45 um, yeah. But then you have a house to live in when you retire so...? Or you could rent, spend the same over 30 yrs and end it with no where to live when your income slows.
Ig if you looked at the value of investments over 30 years vs the value of owning a home (value of home plus however long you'll live and the reduced cost per month), you could figure if you'd make more money after the thirty year period from owning the home or owning a bunch of stocks, that would help.
Side note: for many people the home is better because the investment is not optional. You pay every month as a bill. But stocks, you can shrug every other month and buy crap instead. Ie less over time.
And...you don't have to share a wall, floor, or ceiling with a loud neighbor. That was one of our pros for buying, and the mortgage is less than renting a whole house. Plus #3. Big pro.
What if you buy an apartment?
You can rent houses and you can buy apartments... the type of home is a separate question from buy vs rent.
you must not live in cali
I spent the last twenty some odd years renting a house. I've recently vacated and am currently trying to downsize my life. I have accumulated a lot of junk that has sentimental value but I don't need. So I'm in a reverse situation from "The Wheezies." I want my future to be more open to travel. I've been very sedentary most of my adult life and I'd like to be able to let go of a lot of this stuff and take up less space in a more practical and functional lifestyle. The house gave me the illusion of security the past couple decades but since I was renting I have nothing to show for it. However, had I purchased a house twenty years ago my financial situation woulda been far worse. So I think now I'm in a good place to need less and move more. Each person has to make those choices for themselves. There are no right or wrong answers really. It's just what your needs are at the time.
Are we going to see weezywaiter DIY repair videos with this new house? I’d love that!
This please
They won’t need no stinkin’ repairs😂
Nah. Their house is in pretty great shape. Except for the electrical, the chimney, the foundation, plumbing, shocks, struts, breaks, rings, pistons, appliances, carpet, the roof needs some work...
@@VivienneAndersen Good Lord, you're giving me flashbacks. A couple years ago my husband and I were in the market for a house. We found a cute little one, put an offer in, and arranged an inspection. As it turns out, the cute little house was an absolute disaster with a fresh coat of paint and new floors. It didn't even have gutters!
So, Vivienne...the usual, right😂. “It’s a lot of work but it’s worth it...but it’s still a lot of work”😂
We’re closing on a house this month! We’ve bounced back and forth between buying and renting. Some purchases were bad (I’m looking at you, 2006), and some rentals were terrible (I’m looking at you, landlords who weren’t paying their mortgage with our rent $), but in the end, we prefer owning. It’s nicer to have control, you don’t have to deal with crummy landlords, and it’s fun to have house projects that make it more custom/nice to live in... especially with kiddos. Congrats to your family! Good choice! :)
Love owning my own home because I got tired of paying other people’s mortgage!
Down with the bourgeois!
Amen!
Love not having to save a million dollars for that busted hot water heater, and a roof, and mowing the lawn..... ahhhhhhh..... I saw what my parents had to go thru. I thought - since unemployment will be in my future, it’s probably not be wise. Plus I love to move around every few years. I hate owning stuff.
@@TypeOneg All you need is a home warranty and that busted water heater is covered for 75 bucks. The roof is covered by insurance.
@@pheenobarbidoll2016 Home warranty??? Hahahahahahahaaaaaa!!!! Home warranties are a scam, sorry to inform you. Same goes for the roof unless a major hail storm is the cause for needing a new roof.
1. weekend backyard bbq parties
2. at least my mortgage actually leads to something
3. once you pay it off, you have a little spot in the world to call yours.
Vivienne is a very cool realtor, omg!
I bought my first house a couple years ago when I was 24, and I LOVE IT.
1) My mortgage is low bc I refinanced this year and got a good interest rate and I put down 20%.
2) My mortgage payment doesn't disappear like a rent payment does. I own the home so I'm paying into my equity rather than paying a landlord.
3) The value has doubled since I bought it (roughly). Due to the housing shortage in 2021, my home is worth almost twice what I bought it for and if I sold it today I could put almost the original price of the home in my pocket.
4) Security- I don't have to worry about rent going up, my payment is locked in for 30 years and in 30 years I'll own the home entirely. It's very predictable which I appreciate.
This is quickly becoming my favourite TH-cam channel.
But at the end of that thirty year graph, you own a building that is now worth a million dollars that you can live in WITHOUT any more payments. And with a fixed mortgage, what seems like a steep payment now will seem really cheap in 10-20 years.
I see what you're saying... ahem.... *gets out calculator*
If you punch in a 99% down payment on the home right away (it doesn't let you put in 100%) it says that buying will never be cheaper than renting (based on my assumption about stock market interest being 9% which it has historically been and has been in my own experience). Why is that? Well say your home is $300K. If you invested all that money instead, the growth minus rent would out pace what you're earning on property (historically 3%) minus maintenance, taxes, insurance, etc.
And I crunched some numbers. After 30 years with a normal 20% down payment you'd likely save more money selling your home, renting, and investing the money (assuming 9% growth) rather than keeping the home (with property growing at a historically 3% growth rate) and paying taxes, insurance, maintenance, etc.
But this also assumes a certain level of rent and rent growth. Where we're buying a home it's true that if we paid an equal amount of rent that we're paying for a mortgage (plus other expenses) we'd be living in a smaller, probably crappier place. AND we wouldn't be able to change it. AND we could get kicked out. So yeah, it's a toss up and depends on how crappy of an apartment you're willing to live in or how good of one you can get where you live.
I am currently in the process of buying a house. Thank you for educating me, entertaining me and completely terrifying me.
Buying a home really paid off for me. I came out ahead $30,000 on the sale of my starter home after living there 11 years, and got my second house that I really wanted. Eventually I’ll own it outright, so at that point I’ll only have to pay taxes and insurance on it.
The biggest advantage for me is that I won't have to pay rent for the rest of my life (that would probably keep going up each year). I bought a house in March on a fixed-rate 30-year loan. I plan on paying it off in 15 years, though, by paying extra towards the principal each month, and then I won't have that monthly expense any longer. That will make it easier when I'm ready to retire to be able to afford to do so. :)
@@xzonia1 Real estate taxes go up every year also.- Your plan on paying extra towards the principal each month is a wise move. Make sure you have an emergency fund also. In time, the water heater WILL need replacing, and it most always comes as a surprise.
@@patriciafisher3108 So true! Thanks! :)
@@pre1980cars I think a lot of this depends on where you are and the HOA. We ended up passing on a lovely neighborhood because of the "overly enthusiastic" HOA
I like owning a house because it's like investing in myself rather than making a landlord rich.... When I rented an apartment my rent went up every year. My house payment was always the same. I paid off a 15 yr mortgage in 12 years so now all I pay is property taxes. Plus not hearing my neighbors on the other side of the wall is a huge bonus. I'm not rich I bought the cheapest, smallest, crappiest house in the nicest neighborhood and haven't put any extra money into it. My neighbors hate me but the the house is probably worth double what I paid for it. That's why you buy a house.
I love it. I grew up moving constantly for many years, and I hated everything about the entire situation. I wanted to plant trees, put down roots, and get comfortable in my house without worrying about the landlord telling me no. I Hated Renting with every fiber of my being.
I moved around a lot when i was growing up too but i’ve had the opposite reaction. I can’t imagine staying in one place now. buying a house would mean i would have to stay put and the thought of that terrifies me.
@@emilyshmelimy It's really great that we've got options for travel and going where our heart desires !
Love Vivienne and was so shocked and happy to see her included in this video!!! (She's great and spoke at the conference that my group ran last year)
looks like a dude in woman's clothes though....
@@piotrr5439 and you look like you're deliberately being an asshole
Piotr R totally is. Why do you care?
Emmmm her? She? tf?
@@piotrr5439 That's exactly what you're looking at
I bought a one bedroom condo in 2008 (when the market was down). When I wanted to move in 2013, the market wasn't good enough to sell it so I rented it out. Best decision I ever made! I bought a duplex on the other side of town and my rented duplex unit paid most of my mortgage. A couple of years ago I moved in with my home-owner boyfriend so now I have 3 rentals. Rents are going up like crazy and if I was a renter I wouldn't be happy about that, but as a landlord, I'm doing very well even if I do have to pay for things that need fixing. I think if you do it right, you can work this renting vs owning thing to your advantage. By the way, buying cost me less than renting because I was in the Army and I used my VA benefits (no money down) to buy both places. Not everyone has that benefit, but that's how I did it. I'm super glad there are a lot of people who prefer to rent...keeps the rental market strong and the rents keep going up.
I own a duplex and I live in one side and rent out the other. Some people are better off renting for various reasons. My tenant, for example, is a workaholic. Her job is her life. She has no interest in owning a home, due to all the time it would take. I'm pleased that she's paying for a big chunk of my mortgage, and I'm sure she's pleased that she doesn't have to mow the lawn and do yard work.
A lot of people I know are buying homes because rent is too d*mn high! :P And they are sick of landlords jacking up rent prices everytime its time to renew their contract. They were paying anywhere from 400-1000 more a month on rent than on a mortgage. We (my husband and me) plan on planting our roots soon and looking into buying a house. Luckily this video confirmed I know *most* of the pros and cons of buying. So i feel a bit more confident now. So thanks for that!
ALSO I have been popping on and off your channel for like 10 years now and didn't realize I wasn't subscribed and that you didn't have 1M yet. You got a new subscriber.... sorry its taken 10.
“How’d you guys get wine?”
“Grapes.”
* clink *
🍷🍷
SAVAGE MOM! I’m dying 😂
They forgot an important reason, they can pass it on to their daughter. She'll own a house without a mortgage.
Not sure that's a great reason to buy vs rent as they could also invest in stocks and pass on a pile of cash to their daughter, which she could then use to buy a house mortgage free.
I bought a condo the same month I graduated college at 22 (talk about stress). My parents were strongly encouraging me to do so and I was very against it because I’m young and wasn’t sure where I wanted to live other than close to work. However, the second I realized that all the apartments I liked would cost the same as a mortgage, I decided to buy. Well worth it!
You guys are friggin histerical love the parents too!!
U sell it for more cash!!!! Like my Dad 86,000 in 1986 = 1,000,000 in 2018.... They paid off all their bills and have nearly nothing to pay anymore. It's an investment, just reality, when you rent you throw all your money away.
You can invest the $300'000 and lose it all, then pay rent $600'000 for the next 30 yrs. You end up owning nothing.
I suppose. But you'd have to be a REALLY bad investor considering that a diverse investment portfolio would have ups and downs but ultimately would have only grown over the past 100 years.
And there's plenty of risk in property, too. Storm damage, flood damage, downturn in the neighborhood, real estate market crash, etc.
Though BOTH have on average gone up historically.
You shouldnt buy a home as an investment. You buy it since you need a place to live, and there is a chance you MAY gain equity. Renting is a 100% loss. Rent in my area is about $2500 for a 3 bedroom. Our mortgage is $900. When we rented the company subsidized the electric used by the building i.e. elevators, hallway lights across all the renters in the building. Monthly electric cost was around $250. In our home I pay about $40. I'm not expecting to make money on our home, but over the course of 5 years of renting at $2500/mo would = $150,000 gone and never to return. 5 years of owning will cost us $60,000 with half the mortgage paid off. I could sell the house for half of what we purchased it for and still be ahead by tens of thousands.
Spotted Cow!!!!! are you's in WI!?.......Edit; Finished the video. I knew it! Welcome, and congratulations
The stock market over the last 50 years may have made 7.5%, but the market over the last 20 years has not been anywhere close to that. May 1999 - present the Dow has gone up by a factor of about 1.5 (16 to 24.5k), a rate of 2.2%. If you happened to put your money in in the early 80's or in 2009/2010, then you've cleaned up, but if not, it's nowhere near as good a moneymaker as the pundits say.
EVERYONE says “it’s a lot of work” (just like Craig’s parents) as if that’s a negative thing but my husband & I absolutely LOVE home maintenance! Our first home was our first baby (before our twin kids came along). Perfect starter home in ‘03, we improved wisely and sold it for OVER ASKING in ‘11. (Yes in 2011!!!! In WI too! How does that happen???) We bought wisely again and paid off the mortgage in 3 (yes 3) years. Now we have a second (“weekend”/“vacation”) home nearby. Did I mention we love home maintenance? 😂 Glad to have u back in WI Craig. Welcome, Chyna & Ada.
I realise I’m no financial advisor, but I think it’s a no brainier buying. Why pay someone else’s mortgage? That’s all your doing while renting.
Most people aren’t investing money elsewhere that they would otherwise be spending on a house so I think that point it moot.
Also don’t forget, once you have paid it off in like 20 years or so, you don’t have to continue paying like you would rent lol.
Welcome to Madison! Hopefully, we bump into each other at woodman's one day. :)
what?? You're in MADISON?!
I haven't read ALL the comments so don't know if this has been mentioned before. IMHO, you missed the best reason to buy a home. When the home is paid for you NEVER have to pay a mortgage (or rent) again. This is a BIG deal when a person retires. I am 68 and have been mortgage-free and rent-free for about 25 years. It has afforded me the opportunity to retire at 59 and do other stuff with my money instead of paying for housing. Of course, I have to pay taxes and insurance but still cheaper than renting for the rest of my life, which would seriously cramp my retirement. I do enjoy your videos but as a retired real estate agent and property manager, I felt the need to chime in with my humble opinion. :-)
"bank you very much" that is a good one
The stock market doesn’t give you a better return, that’s just false. 7 percent on 100k would be 7k a year. A 100k down payment on a 500k home that appreciates 3% 15k which is more than double and that’s not to account for the equity you gain with every payment. Idk what kind of channel this is but I hope it isn’t a personal finance one
Owning property is something concrete! Stocks could tank any time and your money could go through your fingers like sand.
We bought our last house (3 kids) in 2000. We stayed with one employer and home and retired in our 50s. Sold the big house (double what we bought it for), moved states and bought a much smaller home for cash. Home ownership is an investment.
Madison WI?? I grew up in southeast WI. I grew up in the land of Weezy. That explains so much!
What I don't really understand is... If it is cheaper to rent, who the hell are the dumbasses buying houses and renting them out for less than what they need to offset their costs and opportunity costs? In our case, anyway, renting would have been much more expensive than the mortgage + homeowner's association costs, maintenance, insurance and what are downpayment would have yielded. Plus, rents are going up very steeply in this area. I tried it out on the Nerdwallet calculator and if we stay no less than 2 years, buying is better. Which we've already done, so I'm good with this outcome :-)
Likely a month or so away from renting my first place. Assuming someone hasn't snapped up the place by tomorrow (or maybe the day after). So excite. Much adult.
We rented a house for 4 years and they decided that they were going to sell. We had 3 months to pack and find a new place to live. You also don't have to ask permission to allow someone to stay with you. The next house we rented, our children turned 18 and the landlords decided that our kids had to APPLY to live in the house they had been living in for years. We also couldn't make any modifications to the house like painting it. We couldn't get any pets without asking permission or paying a fee. If something broke, the landlord may or may not choose to fix it - for example, the ice maker on the fridge stopped working and the landlord decided that they weren't going to fix it. A burner on the stove broke, didn't fix it. The dishwasher broke and they got a beat-up used one and threw it in. The pool cleaners sucked and since they were under contract with the property management company, we couldn't fire and replace them.
If you don't like having control over your life, rent. If you prefer freedom and certainty, buy a house.
Damn it. This was a good video. I’ll probably rewatch this when I’m buying a house.
Forget about investing in a home. Is your mortgage more than rent would be? Or is rent more than your mortgage would be? I like paying only $950 a month to live in a place that I bought 15 years ago that would cost me $2000 a month to rent today. It's saving me over $1000 a month and it will only get better every year that goes by.
Wait you moved to Madison?! How did I miss that?! Yay for Wisconsin!
The pink lady scared the shit out of my kid.
This was surprisingly interesting, the quality of a the good stuff ep!
If I could go back in time, I would find a way to save 80% of my income as soon as I got out of high school, work my ass off for 10 years and just buy a house all cash.
Two Wheezy uploads in a week? What a blessing, thank you guys.
My house was an incredible investment, because I rent rooms. I actually make money living here after 3 years and a refinance.
The mortgage was cheaper than a 2 bedroom apartment from day one.
Also depending on where you live, the standard of rent could be higher than most mortgages(long term)
That’s what pushed my husband and I to buy.