I’m Losing $100,000 on an Investment Property
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- เผยแพร่เมื่อ 13 พ.ค. 2024
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I am 53 and retired at 50. 1 thing I did do to retire early was to get out of the 401K and IRA programs. Bought rental real-estate and I am now a Limited Partner in about 1500+ units from collabrative efforts in the fund my estate planner has me invested in. I do not work.
I only contribute 5% to get full company match, that’s it. The 401K plan is designed for you to work until you are about dead. Also, the government does not have their hands on it yet either.
My wife and I live off of our 401K. We don't work. I recommend highly to everyone to build your 401K or Roth IRA's as an alternate revenue stream in retirement to your Social Security. An observation on 401K's is when it gets over 300K it starts to accelerate. When you get over 500K it can really accelerate as the stock market grows.
If I may ask, as in withdrew all of the money from the 401K and IRA programs? If so, what was your strategy behind that decision? Thank you.
I learned about govt actions from cfp in ny by name MonicaMaryStrigle. Ms. Strigle explained the benefits of long-term Treasuries and alternative investments, which the govt doesn't disclose.
I learned about govt actions from cfp in ny by name Monica Mary Strigle. Ms. Strigle explained the benefits of long-term Treasuries and alternative investments, which the govt doesn't disclose.
She tried to blame it on the interest rate increase, but George is right, they could never have afforded a $1.1M house on $130K/year.
Correct.
I make 5500 per month by myself and i wouldnt by a 500,000 house let alone a million bucks. Ppl have really lost their minds.
Im around the same and idk how people could even try to justify this.
They are idiots, that’s how
By a house?
I make 6k a month and I bought my house last year for 159k. Payment is $880 a month. It's only 1300 square feet but it works and doesn't leave me broke.
Many people did that because housing price keep going up. It's an investment for them.
$130K/year and living cheque to cheque and staring down the barrel of a million dollar mortgage. They deserve to pay that $100K stupid tax.
You have to give credit to the brave people that call into this show.
Brave because they are active military (which I’m always happy to support) or brave because they’re in such an “embarrassing” bind?
Put the house up for sale now. Find a buyer between now and closing and put them under contract to close the same day you do. Close on the house in the morning and then close with the buyer in the afternoon. You might even walk away with some cash if you're lucky.
1.1m house on 130k income lol unreal
😮😮😮😮 We make that much. My god. We drive a rusty minivan with 175,000 miles.
Holy shit, yes. My wife and I made $130k last year, and a $500k house with $200k down is our realistic dream scenario. Maybe $750k someday if we get big pay increases.
down right delusional
Doable if interest rate is really low, but too naive at current rate
@@blessedpapa even at 2.5% that’s $4,000. Plus property taxes on 1.1m home is conservatively $1,500/mo. $5,500 not counting any utilities. If you want your mortgage to be 70% of your take home I suppose it doable
The caller is a clear example of keeping up with the Joneses. Don't do it.
Now days it's called "flexing"
Ehh they are in Canada 1.1 million dollar house is very average
I feel like ya’ll didn’t listen to the call. This is an investment property, they weren’t planning to live there. It would be the house’s renters who are keeping up with the Jones.
It was still a dumb idea but not for the reason you’re describing.
@@Michael-kv5ffon $130k income it’s brain dead.
All those TH-cam and HGTV shows will have you believing that nobody loses in real estate. Clear example here that tha'ts far from the truth.
I live in Northern California, expensive area, trying to invest in the south part of bay area with the program Housekeys, if you know something about that or any advice will be appreciate it, thank you.
Housing costs will come down eventually, but for now; get your money (as much as you can) out of the housing market and get into the financial markets or gold. The new mortgage rates are crazy, add to that the recession and the fact that mortgage guidelines are getting more difficult. Home prices will need to fall by a minimum of 40% (more like 50%) before the market normalizes.If you are in cross roads or need sincere advise on the best moves to take now its best you find an independent advisor who knows about the financial markets.
This is exactly why I like having an asset manager look over my day-to-day market decisions: with their extensive knowledge of going long and short at the same time, using risk for its asymmetrical upside and laying it off as a hedge against the inevitable downward turns, their skillset makes it nearly impossible for them to underperform. I've been utilizing a manager for more than two years, and I've made over 85% of my initial deposit
I hope you don't mind if I ask you to recommend this particular coach you using their service...
'Angela Lynn Schilling, is respected in her field. I suggest delving deeper into her credentials, as she possesses experience and serves as a valuable asset.
She looks to be well-educated and well-read. I ran an online search on her name and came across her website; thank you for sharing.
This whole "real estate side-hustle" is a plague on civilization.
...And a significant part of why real estate prices have rocketed up.
No it's not. You only think this if you're not good at it.
Couldn’t have said it better
This!!!!
Some of us DONT want to be good at it. We just want to live @@JT883
This call is beyond dumb.. she doesnt know the take home pay and wanna build a 1M home? Absolutely stupid
Yep, rocks are smarter. 130k and a 1M mortgage doesn't even make sense.
Every woman needs to have a 5000 foot $1.1M dollar house just like Real Housewives.
Maybe. You are taking into account that this caller is from Ontario Canada, right? 1 mil for a house is fairly normal there, certainly around Toronto.
Average Ontario house price for March 24 is $880-970k
@@aweisen1I don’t think it matters how expensive the houses are there, the income ratio to the house mortgage is off
I make $300 k and my most expensive home ever was 260k. The idea of a million dollar house is a joke to me. Dont they have crazy taxes in Canada?? Just the taxes are out of her league.
Many people overpaid for homes when loan rates were low, leading to significant debt. I foresee a housing crisis arising from this situation. If home prices keep falling and these individuals can't afford their properties anymore, resulting in foreclosures, they'll have no equity to fall back on. Even selling their homes won't yield a profit. This scenario is likely to affect many people, especially with the upcoming mass layoffs and the rapid increase in living costs.
I advise you to invest in stocks to balance out your real estate, Even the worst recessions offer wonderful buying opportunities in the markets if you're cautious. Volatility can also result in excellent short-term buy and sell opportunities. This is not financial advice, but buy now because cash is definitely not king right now!
You're correct! With the help of an investment coach, I was able to diversify my 450K portfolio across markets and produce slightly more than $830K in net profit from high dividend yield equities, ETFs, and bonds.
This sounds interesting. My portfolio is in the red.
Can you recommend your analyst, please?
Jennafer Beaver Turner is the licensed advisor I use. Just Google her name. You'd find necessary details to work with to set up an appointment
Thanks for this. I curiously searched for her full name and her website came first. I looked through her credentials and did my due diligence before contacting her. Once again many thanks
Wish Dave was here to take the call. He'd be all over TikTaK real estate
Lady between my husband and I we make 200k NO WAY in the world could we ever afford a 1 million house WTF!!!!!! 😳
Now just imagine how the bottom feel? Who don’t see $100,000. Shit is all the way fxcked up. 🤷🏾♂️ at this point as I make more, trying to reach 100,000. I’m actually okay with renting. I get to move as I please. NO RESPONSIBILITIES OTHER THEN PAYING RENT AND KEEPING THE PROPERTY THE SAME WAY WHEN I MOVED IN. That’s it!! 😂 Fxck that equity shit. I’m good. BUT if we talking investing to rent out? That’s a whole different story!
Ok, they’re making &130K and thought they could purchase $1Mil house?😮 They can barely afford 500K
This is Canada where Uber drivers are having million dollar houses.
$130K.
@@kobe9843 then don’t buy them.
@@kobe9843Everywhere in Canada? Or just in the big cities? It's expensive like that in the US if you want to live in downtown NYC or LA, etc. If you live in a small town in the south or midwest you can find houses under $150k.
@@penguin12902not everyone in Canada but in the gta
I sold a home to an investor a while ago and told him everything that was wrong with it. There were massive issues. He gloated about it and said he would flip it and make over 300k on it. It’s still sitting there with minimal work done and grass up to their behinds. They have had it for well over a year now.
Shame on you for selling it to an investor
@@MS-ty8eq I’m pretty sure that was sarcasm but if it wasn’t no one else could get a loan to buy it because of the shape it was in.
@@MS-ty8eqpotential homeowners were smarter as they knew what it would take to fix it. This guy probably made one successful flip and then thought he was a guru.
@@MS-ty8eqwhen a house needs a lot of work (trust me we saw them house hunting ourselves) it's better when someone has the extra money after the mortgage to flip and do the upgrades and don't have to live in it while all of the construction is going on. Especially if it's an older house and you find asbestos or other things that make it a hazard work environment.
Well, if the price keeps going up in Canada like that said. She can keep the house and hope it goes up by 1-300k in a year and sell it.
Even with a 2% mortgage their payment would have been $3700 not counting taxes and insurance. How did they ever think they could afford this place?
you know, they “loved” the house, and eyes just went blurry and signed it.
If I were in there shoes I'd be trying to find a buyer who wanted that property instead and see if I could make it a 50k loss instead of a 100k loss.
@@mathehack1Where do they come up with the extra $5+ per month to wait it out and try that strategy?
It's an investment property. They thought the renters would pay their mortgage, so they can just sit back and relax!
@@megalodon1726bingo
The caller needs a good attorney to help them get out of the existing contract with the builder. If there has been excessive delays in construction, they will likely have an out. Do NOT just walk away from $100,000.
I agree, if they put the downpayment down when interest rates were around 2% and now they’re around 6% I think they have a good case
First, who buys a home that is 10 times through annual household income. That is insane. Second, if she is prior military, and he is active duty, they should absolutely know better than to make any assumptions about where they will be stationed in the coming months, let alone coming years
The caller knows they make $130k but doesn't know their take home pay? Yea I call BS. She didn't want to say because of how ridiculous it would sound compared to the mortgage. Also, what banknis lending $1M to a person making $130k???????
Banks make most of their money on the front end with closing costs and with the way amortization works. If everything goes to crap after 5-7 years, they basically just laugh at you and begin the foreclosure. They almost want you to fail so that they can start the process over again with a new borrower
When did it become so difficult for so many people to live within their means?
When people started to spend hours on social media every day.
Greed and impressing others
The call get worser as it goes.....
The solution is quite simple. Close on the house and then sell it soon after.
They’ll just lose more because then they’ll have a mortgage and the house will probably only sell for say 70% if they’re lucky.
I’m surprised Rachel didn’t ask about the appraisal to determine if selling it (without moving in) would cost them less than $100k.
Something is only worth what you give for it: it sounds like they borrowed the $100k and netted this money after selling a prior home.
Most rich people stay rich by spending like the poor and investing without stopping then most poor people stay poor by spending like the rich yet not investing like the rich but impressing them
Exactly! My grandparents were so frugal but they had a TON of money on both sides. I remember my grandfather telling me "you want to make money while you sleep." And I guess that attitude passed down to my dad (RIP), because I remember going to his house one day and I had bought something I really liked, so I wanted to show it to him. So I said "Look at this!
Isn't it cute? It was on sale...I saved 50%!" My dad replied "Well, if you're spending, you're not saving." Obviously I had no retort, and that has always stuck with me.
Saving and investing wisely while prioritizing necessities and a few small luxuries in relation to one's total assets is a great approach. It helps ensure financial stability and I my for the enjoyment of life's little pleasures without compromising long-term financial goals. It's all about finding a balance that works for you!
very true, a huge part of my portfolio growth has come during this bear market. I've been able to scale from $180K to $572K in a short period of time.
How do you do that? I'm interested
1 operate a wide- range of Investments with help from My Financial Adviser. My advice is to get a professional who will help you, plan and enhance your management skills. For the record, working with Stephen Milne Ebert, has been an amazing experience.
I live in Ontario Canada and it is a disaster of epic scale in terms of affordable housing.
Yup, I was looking at some houses before covid, $120k for one that needs some work. Now the same house is $400k (6 years later).
It's same in Australia...the real estate ponzi on steroids
Hosts seems to forget that Canada doesn’t have a 30 years fixed rate. A mortgage that long is re-amortize every five years based on prevailing rates so getting a fixed rate is only for a short term up there.
Considering a young mid income, short term minded person with constant need for cash, are these still worth investing into? I am new to all of these and have incurred so much losses, I am beginning to think I am not doing what is good for me but just following people blindly.
VENTURING into the trading world without the help of a profesionals, trading and expecting profit is like turning water into wine you would need a miracle...
It’s precisely at times like these that investors need to be on guard against the next certainty. You don’t have to act on every forecast. I will also suggest investors to get yourselves a financial-advisor that can provide you with entry and exit points on the shares/ETF you focus on.
Following you has been an amazing journey , you have shown me the best way to earn much better profits despite the bad economic situations, God bless you with more knowledge sonia campbell...
Great to see you guys talking of sonia, Trading on your own can be very dangerous i can testify to that. This woman changed the game for me
Any info on how i can liaise with her, i'm new at this
This is a prime example of live within your means and don't try to keep up with whatever everyone else is trying to do. Also its hilarious that a lot of these people get so caught up in whatever the heck the interest rates are doing and don't even focus on the massive amount of debt they are going to stare down. Just buy whatever you can reasonably afford and be happy
Agree. Interest rate means very little in comparison to a high price home
I think investors should always put their cash to work, especially In 2024, we'll start to see more market diversification. I'm hoping to invest about $350k of my savings in stocks against next year. Hope to make millions in 2024
Since risk is at an all-time high right now, perhaps you should be a little more patient and return when it has decreased. Alternatively, you can consult a trained financial expert for strategy.
Yes true, I have been in touch with a brokerage Advisor. With an initial starting reserve of $80k, my advisor chooses the entry and exit commands for my portfolio, which has grown to approximately $550k.
I’ve been looking to switch to an advisor for a while now. Any help pointing me to who your advisor is?
“Angela Lynn Shilling’’ is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
I searched for her full name online, found her page, and sent an email to schedule a meeting. Hopefully, she responds soon. Thank you
What kind of bank and or building agree to build a Million dollar home for someone whom only makes $130,000
You could put this new build house up for sale and then do a back to back sale (builder to you you to the new owner) on record you owned the house for less then a minute with electric registration. Just make sure you sell it to cover the cost. Any empty lot in the gta you can get that amount for it and more.
Great idea.
@@jjr6929 That's only
How do you have a military job and not expect to move? I mean...wow to lose $100,000 I would have a heart attack.
Unfortunately we bought at the peak of the pandemic and are most likely looking at a $50k loss on our home when we will need to move 😢
The Greater Toronto Area (GTA) now has a median home price of about 1.2 million. Crazy.
This is all of Canada. Starter homes (not condos) outside of the big cities are a million dollars, and the average buyer is exactly like this income-to-price ratio. In Toronto, the average starter home is two million dollars, and is being sold after 3-4 days on market with multiple offers. Canadians can't get enough overvalued real estate.
Yup, sounds like the US, circa 2007. That worked out well. US is at it again too
This is what happens when you have mass immigration and no housing to support it.
Same in Australia...dog shit house for 2 million dollars
@@greggpurviance7252It's actually worse because there was no 2008 crash in Canada so prices have only gone up since 2001.
Even if you had 0% taxes, that much house for that income is absolute insanity.
Earth to idiots: living somewhere doesn't mean any house purchase you want is justified.
Not everyone can afford to own houses in super expensive cities. That's called math / reality / how life works.
How did they even get approved for a $1m mortgage with a $130k salary….
Easy they fake thier income alot of peopel do it in Canada cause they have to or else how would anyone afford million dollar olus houses
Unfortunately this is most of Canada, specifically Toronto, right now. It’s awful.
In Toronto people fake documents to get mortgage approvals...
Your story really resonated with me. It’s a tough situation, but your advice about knowing your finances and being prepared for the unexpected is so important. Thank you for sharing your experience!
I'm 47yrs old. $73,000 biweekly and I'm retired, this video have inspired me greatly in many ways that I remember my past of how I struggled with many things in life to be where I am today!!!!❤️
How did you do it? Do explain please 😯
My family have been into series of sufferings lately
All thanks to Renee Marie Harrison
After I raised up to 325k trading with her I bought a new House and a car here in the states 🇺🇸🇺🇸 also paid for my son's surgery (Oscar). Glory to God.shalom.
I do know Renee M. Harrison, I also have even become successful....
I really need assistance
How do I reach her??
I understand why they would buy $1 million home making $130,000 a year I make 150,000 a year and I bought a $300,000 home
I made $100K/yr and bought a $50K house, in 2011
That is because you know basic math!
In Canada and Australia they can only do 5-year lock on mortgage rates and then it adjusts. All mortgages there are variable rate. They don’t have 30 year or 15 year fixed rate mortgages. Canadians can’t do the Ramsey mortgage plan.
Canadians can absolutely do the Ramsay plan. We’re in Canada, and We did the basics of the plan without even knowing it, and paid off our mortgage in just under 12 years. All of which we did with 5 year closed terms or less. At the end, we paid a very small penalty to break the remaining time of our closed term to pay off.
Yes, we can’t take out a 15 year fixed rate mortgage, but one can make plans ahead of time that will result in the same outcome.
The main difference here is that paying down a low interest rate mortgage makes far more sense than it does in the US. As your rate is only fixed for 5 years on average, you only have a 5 year window to focus on having potential returns beat out your interest rate. Then you have to also factor in the risk of your mortgage rate increasing and having it coincide with a market downturn. It rarely makes sense for any average person to invest any of the difference vs paying extra towards the principle.
For people wondering how does 130k qualify for 1.1 million home, this is in Canada. Back in 2021 Canadian variable rate mortgage rates were down to 1.25 percent (HSBC was offering 0.99%) and fixed rate was bordering at around 2 percent. So crooked realtors sold people the story that rates won't go up for a few years and to go buy expensive homes. One area where I will critique her is that she should've looked to see if she could still afford this property once rates went up. Unlike US mortgages Canadian mortgages renew every 5 years. The other thing she should've done is added an assignment clause while signing the contract. That clause lets you sell your new build home at anytime before closing.
In what world do they think this is affordable?
Do a third-party purchase sale. Find someone that wants to buy the new built home and is willing to buy you out of this deal for $80,000 thereby reducing your loss. This would make it a win for you both.
This is Ontario, Canada where a bunch of people bought expensive homes when interest rates were low. Now interest rates have risen and it’s tough to afford payments, also in Canada most mortgages are short terms like every 5 years in general you renew at the current interest rate.
How do you buy a property without having financing arranged? Doesn't the developer ask for proof of funds? They were never going to be approved for a mortgage of 8 times their annual income with a 9% deposit. This should never have happened...
The developer got $100K up front, so they don't care if the caller can get a mortgage. If anything, the developer hopes they can't get a mortgage. If the bank doesn't approve the mortgage, it's a free $100,000 for the developer and then the house will be sold to somebody else.
@@megalodon1726 There is a lot of risk to the developer in that. They might not be able to find a new buyer for a while or house prices may have fallen in the interim. They've already spent all the money building the house, so they could lose a lot if they can't sell it quickly for a good price.
Wahh wahh wahh don’t try to buy something that you can’t afford then!
That’s the whole problem, you weren’t thinking ahead.
2:14
$100,000 stupid tax? 😂😂
How did they even qualify for a $1 million home?? Did Canada not learn from the US housing crash in 08??
No. Adjustable rate mortgages are the norm in our friendly northern neighbor.
These people buying a 1.1 million dollar house on 130k income. People are nuts.
I don’t get why they don’t just wait and sell it the minute the build completes? Not sure why that isn’t an option.
Who calls buying a second property and needing a large mortgage to pay it off an investment? I'd only ever buy an investment property if I could pay off 90% of it outright.
Also, in Canada, there are increasing new laws that penalize people who own properties beyond their primary residence.
Sounds like a Canadian thing to penalize people for something that petty
@@MrJimmy3459 It's political virtue signalling to make it look like they are doing something about the housing shortages.
That's great news!! Maybe the U.S. can tax people with more than one property to the point where it's not profitable! It raises prices for those trying to get their first home! ✌️🇺🇲
Gets paid $50k to never work again and they are still broke. Gotta love the military budget.
Merica 🦅 🇺🇸
They live in Canada..
I’ve sold 3 properties over 15 years. I just came out even every time. Put lots of time money and work into it to come out with almost as much as we put in. It doesn’t work for everyone
130k/year and buying a 1.1 million dollar home….. WTF🤣
Ontario, 1 mil is a common price. And their gross income is ~$158K
@@aweisen1 She said 80 for him and 50 for her. Thank would be $130.
@@lindap.p.1337 you should listen later in the call when her husband says they take home $8,900 per month. I understand how you could have missed it.
In the area, houses start at $800k for a fixer upper, this is not a luxury dwelling.
Check your contract for a loan contingency- if you cannot qualify you may be able to get out of the contract and keep your deposit if you cannot qualify per the lender! Please check!!
What were these people thinking?
So much to say about this call from an “investment property” to you being able to even get financed when rates were low to thinking about renting it which you definitely wouldn’t get approved for with keeping your primary residence even when rates were low. What a tough lesson to learn for $100,000
$130k income gross with a $1 M mortgage makes zero sense.
Thats every one in Canada
@@Michael-kv5ff guess you can thank Trudeau
Why not close on the new house and then resell it?
Because George and Rachel have no experience besides doing sound at the Ramsey show while following the baby steps and being Dave’s daughter…
@@nailatiylluf She's an expert at the "NEPO" steps 😂
Would still lose like tens of thosands in realtor fees and closing costs
@@Michael-kv5ff I mean they’re literally telling them to chalk up $100k as a stupid tax. Not exactly savvy financial advice.
@@nailatiylluf no, although Rachel's husband handles Ramsey's real-estate I believe
“ i thought real estate only go up” - * drooling from
mouth
*Amazing video, you work for 40yrs to have $1M in your retirement, meanwhile some people are putting just $10K into trading from just few months ago and now they are multimillionaires*
Waking up every 14th of each month to $210,000 it’s a blessing to I and my family… Big gratitude to Andrew Stella 🙌
Hello , I am very interested. As you know, there are tons of investments out there and without solid knowledge, I can't decide what is best. Can you explain further how you invest and earn?
Same, I operate a wide- range of Investments with help from My Financial Adviser. My advice is to get a professional who will help you, plan and enhance your management skills. For the record, working with Andrew Louis Stella, has been an amazing experience.
YES!!! That's exactly her name (Andrew Louis Stella) so many people have recommended highly about her and am just starting with her 😊from Brisbane Australia🇦🇺
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 in God
Wouldn't any contract be contingent on getting financing? How would someone making $130k or less a year get approved (at any interest rate) for this $1m loan?!
$6k a month and buying a million dollar house?? HUH how is that loan even going to get approved
8900, but still dumb
$5k month projected mortgage on $130k income omg lol
The $100k is gone. It’s done.
When in doubt about how much you could comfortably afford, try the 2.5 times your combined net income rule. That should land you to about 28%-36% allotted to housing costs (don't forget to add taxes and insurance) with a 4%-7% interest rate. Any more than that will often give you restless sleep and undue financial stress.
It is alright to rent and if your landlord or landlords within the area are greedy, move to a different more affordable county. This is why people that earn 2500 dollars per month keep more money than those with even 8000 dollars a month. When you have a lower income, you become more resourceful with your money p.
Tell her get off til tok
She is making me feel stupid because I can even understand what she is saying lol
In Canada they would need to come up with another 110k to close. In Canada you need a minimum of 20% down payment to get a mortgage over 1M.
130,000 bring home buying a million dollar house is insane
Not really quite normal in Canada which is sad
@@Michael-kv5ff if that is normal it is still insane. When I bought my house in 96 they told me as a general rule you could afford a house about your annual house hold income. I get that houses have went up but, 300 to 500 is about what most average income people could probably afford in America. My house hold income is more than that and there is no way in hell I could afford a 1.5 million dollar house.
I'm curious if the contract even allows for the builder to delay without consequence or has a provision like a financing contingency that limits the rate. They may have a way out depending on how the contract is written.
Paying 100k in stupid tax. I think they got of cheap considering what could of happened.
$130K income looking to purchase a $1.1 million property!? Wild.
Great ep
What about the value that the house will have,? because if you locked in the price in 2020, it should have enough equity based on how much houses cost increase during the period.
My mortgage is less than 25% of my monthly income and I bought post covid at 5.87% interest rate. You have to live within your means and don’t bite off more than you can chew
Buying a million dollar home on low income is the norm in Canada. So many people are walking away from their down payments after the increase in interest rate. It's a house of cards.
I just did the Ramsey home affordability calculator (took 10 seconds). But I was stunned how little house I could afford with their 25% rule. But at the same time I’d actually feel comfortable paying that amount.
I lost more than that on different investments. But, as we Marines used to say, "You pays your money and you takes your chances!" Don't risk more than you can afford to lose.
As someone who has a similar income with my wife (I’m also military and live in Ontario), it’s pretty crazy to try for a million dollar home on $130,000. The max price houses I’m looking at are $600,000, and that’s with a 20% down payment.
Their contract shouldve given a deadline to complete the home and if not delivered by then the builder isn’t fulfilling the contract. Im shocked it went on this long did they reenter the contract?
What's the value of the new house? They temp borrow the money from parents sell the place then not lose the 100k depending on that current property value.
And..... people say there's no bad loans this time around compared to 2008!!? No way they should qualify for that kinda home even with half down.
1.1 mil house, 100k deposit when rates are low to become landlords for "easy money", 1 mil mortgage... yup, sounds like Ontario.
Don't sign up for a build without a contracted deadline for completion
The underlying theme when it comes to ambitions of acquiring money is greed. Even if it comes with good manners and good intentions. They lost $100k bc they thought they could make another 400k off equity.
Who the hell allowed them to do this. The builder doesnt check?
LOL are you saying builders are ethical?
@@austinmallar5430 It's not in their best interest to do this, they want to build and sell. thats it
How about do a double closing and save any potential losses
Sell the new house as quickly as possible.
Haley needs to slow down, breathe and listen 😂 holy 💩
But how did they even get approved ? I could barely get a credit card when I was making $70k with 700+ credit score
Why aren't they selling the contract for the house? Basically find the buyer that is willing to pay the 100k to take over the contract?
The saddest thing is that in Canada, it is most likely not a 1 million dollar McMansion but a regular mid-house that still needs some repairs 🏚️
There’s got to be a loan contingency or something. also if you bought it 3 years ago and locked in the price 3 years ago the property should have gone up in value.
Why not close on the property and turn around and list it?
Could they not look for a buyer now and just sell it when it finishes?
I think this caller needs to consult an attorney to get out of this contract. She can't afford what they already have let alone this new house to be used as a rental.
Since hubby is in the military and his orders changed, there may be a way to get out of the contract. Canadian law may (will) differ.
This is very tough.
I feel so much better about myself 😂
I feel so sorry for this caller. It's delay on construction, rapid changes in interest rate, unforseen with work and everything together. Hope the caller and her husband can figure it out.