I’m in Ohio and the housing market here over the last 7-8 years is unlike anything I’ve ever seen. Homes that were bought for $130K in 2015 are now being sold for $590k. I’m talking about tiny, disgusting, poorly built 950 square foot shit boxes in quiet mediocre neighbourhoods. Then you’ve got Better, average sized homes in nicer neighbourhoods that were $300K+ 10 years ago selling for $750k+ now. Wild times.
Home prices 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 seek an independent advisor who knows about the financial markets.
I wholeheartedly concur; I'm 60 years old, just retired, and have about $1,250,000 in non-retirement assets. Compared to the whole value of my portfolio during the last three years, I have no debt and a very little amount of money in retirement accounts. To be completely honest, the information provided by invt-advisors can only be ignored but not neglected. Simply undertake research to choose a trustworthy one.
There are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’Rebecca Nassar Dunne” and her performance has been consistently impressive. She’s quite known in her field, look-her up.
We followed Dave’s plan and got out of debt about 8 years ago. Paid off $65k in 2 years. We then saved up an emergency fund, save up and bought a truck in cash, then saved up and put down about 10% on a house. We got lucky and bought right before Covid and everything skyrocketed. Then we had a baby and she was born with brain damage due to oxygen loss. We spent the next year and a half in survival mode and all but drained our emergency fund. I lost my job when my daughter was a year old, and embarked on starting my own business. Things are still tight, we still live paycheck to paycheck right now, but we made it to the other side of our crisis. I can only imagine how much more difficult it would’ve been if we hadn’t gone through Dave’s plan and still had all the debt and no emergency fund to get us through. The idea makes me emotional just thinking about it.
@@rosewoods3007 if theyre barely scraping by now, then the additional debt payments couldve pushed them into no longer being able to meet those payments. Also, it sounds like getting out of debt allowed them to save for their house. Rent is more expensive (monthly) than biying in a lot of places. The medical emergencies, plus debt payments, plus high rents have forced many people into the streets. Im being dramatic and clearly tough times hit whether you're in debt or not, but we shouldnt underestimate the damage a debt lifestyle can create
@@rosewoods3007 you are correct it could be done with debt, but that would be a much larger psychological issue to handle on top of everything else. Knowing you don’t owe anything to someone is very, very relaxing. It’s like a weight off your shoulders. It sounds like they certainly needed a weight off of their shoulders.
My heart goes to the entire community for *DaleValskov* building up something even my grandpa can understand. This is so smart by them to launch it to shatter the doubts and fears of the common folk which is not even correct to begin with. Everyone knows the state of inflation and recession now and the way out is already in progress. Now it's just about catching the big fish
We bought our first home in 2021. Prices hadnt peaked yet but they were climbing fast. We did 25% of our takehome pay, but on a 30 year loan, NOT 15! Now, 3 years later, its 15% of our income since getting very nice pay raises since then. Also, we have 2 more kids than we had in 2021. Just like Daves credit card rule, for the financially literate, there is some wiggle room to be "Dave-ish". If we would have followed Daves advice and got a much cheaper and smaller home, we would be looking to upgrade right about now in 2024, which then we would be losing our 2.75% rate, and climbing into a 7% rate. phew....glad we did what we thought was right.
Dave just gives thumbrules. Thumbrules don’t work outside the median income. Most budget items don’t scale. A guy making $50k is spending 10% on utilities. A couple making $250k isn’t spending 10% on utilities. Dave is cranking out advice to the average consumer, so he can’t have nuance, but you can.
@@JT-bs8wz , Exactly! His advice is very good in my opinion, very solid! But, it is advice for the masses, not the "one off". Especially the credit card thing! His survey that he always talks about where they "interviewed" 10,000 millionaires, there is NO WAY you can convince me that all 10,000 of those millionaires, every single one of them, dont have and use a credit card and they use it responsibly. Of course they do! Credit cards are free to use, and makes life easy!
@@stevegolacks8731 Exactly! I worked in the accounting office of a golf and country club. Every single person had credit cards. I was the one who had to do the monthly charges. Nobody came in there with cash, lol. About half of them used American Express. The rest had some type of travel credit card earning points or just converting points to cash. If a person is in their 40s or 50s and doesn't know how to responsibly used a credit card, interest isn't their biggest problem. 😂
Completely agree! I keep 1 credit card and I had a 30 year mortgage (paid off early)… 15 years and no credit card is impossible these days. The main thing is to BE RESPONSIBLE!
@@mikezerker6925 But A credit card isn’t money. It’s a loan to yourself at 20+% interest. Don’t use them if you don’t pay the full balance every month. I have never paid interest on a cc in 35 yrs and I am not rich. A 15 yr rate is almost impossible today unless you had a lot of equity in another home and sold it.
My daughter just bought a cute SMALL home at 22! All by herself. She paid off her jeep loan of 5 years in a year and a half. No college debt ( she didn't go). She then saved up 20% of a down payment. A small home that a builder gutted and redid everything on the inside. She did get a 30yr loan and plans on making extra payments 🤞 her mortgage is as much or lower than local rent prices. It has 2 bedrooms so she could always get a roommate if she needs too. So proud of her ! She works at a plastics manufacturing plant
My daughter is a rockstar as well, saves her money and has more in her savings at 21 than most older adults. She owns her car, has no debt and rents a nice small place at a very reasonable price for nowadays. Kudos to us, we have taught well!
With rates climbing like never before in ’23 coupled with uncontrollable inflation, and our own mortgage now above 7.5% what are the best alternatives/strategies for avoiding a crunch and maximize my savings other than moving in to an RV with my two kids.
You are not alone we can no longer afford our mortgage, husband wants us to travel or relocate/I am proposing cashing in, walking away and renting while putting the rest in the stock market.
We own a few rented apartments but don’t wish to sell them or make the tenants uncomfortable by inflating rents however I am being more cautious than ever with rising costs.
I will be glad to enlist the services of a reputable one. Pls how do I go about finding and vetting them. We know the value of a fiduciary as we have a family lawyer and he has hinted on it occasionally, so we’ve began to consider the idea.
My speculation. Many Americans are insolvent. Equity in a house will likely be tapped into via a HELOC or straight sale. I believe if they sell, many will go back to renting. And housing supply will inevitably rise. So you can borrow against your home.
@TheSpringMood yes but that's part of the problem. Builders aren't building smaller homes, just 3500 sf behemoths bc it's a higher return. Those smaller homes were easier to get into, and then move up.
And minimum wage in 1972 was $1.60. When I graduated college in 1982 the average starting salary for business graduates was $10K. The problem is TUITION has skyrocketed and the typical starter home then was smaller and older than what young adults think they deserve now. We lived in apartments until we were married and saved for a down payment and that was usually in our mid thirties. Young people now are just spoiled and under the influence of tv and social media. It's not that hard when you stick to a realistic budget.
The efficiency of this *DaleValskov* is next level. To juggle walk throughs of various angles on the topic delivered to-camera, differnet content per topic from various folks underneath the umbrella of the track list of the larger big band concert itself is engaging and refined. To make a dense taccess like this so digestible is really something. Awesome work jack!!
I think it's time to make it more appealing for potential buyers. Real estate can be quite the rollercoaster! the stress and uncertainty are getting to me. I think I'll cut rents to attract potential buyers and exit the market, but i'm at crossroads if to allocate the entire $680k liquidity value to my stock portfolio?
"Overall, buyers hold a lot of the cards right now, and sellers are having to give out more concessions to close a deal." All the best, buying on sale is actually one of the best ways to invest in stocks, and advisors are ideally suited for such task
Until the Fed clamps down even further I think we're going to see hysteria due to rampant inflation. If you are in cross roads or need sincere advise on the best moves to take now with financial markets will be best you seek a fin-professional with fiduciary responsibilities who knows about mortgage-backed securities for proper guidance.
Annette Marie Holt is the coach that guides me, you probably might have come across her before I found her through a Newsweek report. She's quite known in her field, look-her up.
I feel that the last bull run was bolstered by all the money being printed. Major returns next bull run but I think they will be tamer in my humble opinion. A 10x on *DaleValskov* and a 15x on polygon are fair considering how much those two coins are interwov
My husband and I were fortunate enough to be able to pay off our mortgage early. We were both still working, and took the payment amount that we had been using to pay off our mortgage faster and we put it straight into investments. We were able to retire early because of almost 7 years of putting away what would have been our mortgage payment as well as maxing out our 401K/403B plans. Thankfully we were taught by both of our parents the value of living within our means. Thank you for your advice. I know it will help people. we are interested in investments that could set me up for retirement , I mean I've heard of people that netted hundreds of thousands during these crash, I listened to someone on a podcast who earned over $650K in less than a year, what's the strategy behind such returns?
We have been on a recession since the beginning of 2022, but big media and governments all over the world didn’t want to admit it. We need to be wise and use our brains. Knowledge is power and I’d like all the family to be powerful! Just purchased some *DaleValskov* Thanks for keeping us informed during this times of doubt?
I was calling out the recession since the second quarter of 2022. I am not nobody so my alarm didn’t go far. It was obvious. For me it was looking at people’s savings and reliance on credit to maintain their “standard of living”. It was absurd then, and it is still absurd now. People just keep borrowing to spend.
@@alainbileg9826 "based on the generally accepted definition" The NBER Business Cycle Dating Committee typically confirms U.S. recessions well after they occur, for historical record and analysis. Traditionally, the U.S. government and media have tended to announce recessions based on prevailing economic conditions. For example, recessions were declared by media and government in 2000 and 2008 well before the NBER's official recognition. Under the Biden Administration, the approach to defining a recession has shifted from primarily focusing on two quarters of negative GDP growth to a broader set of economic indicators, including employment data. Interestingly, much of the recent employment data, which plays a key role in the new criteria, has been revised downwards shortly after initial publication for almost an entire year now. Furthermore, there's a claim that the recent job additions in the economy have predominantly been filled by immigrants, not U.S.-born workers.
A recession isn’t based on your anecdotes. By definition you can’t be in a recession if there is inflation. Prices inflate when the supply doesn’t match the demand. A recession is when prices start dropping because nobody can afford to buy AND they don’t. The problem now is folks don’t have the money but they keep on buying. The recession has not appeared yet.
My wife and I bought our home in 2017. We were eligible to get one for 3 times amount but we see this home as our forever home, and the real estate industry created term, "starter home". It's not a retirement plan. We put money away in annuities and 401k plan. We're basically making it into what we desire. We didn't have a "dream home" in mind. Location and safety was a big priority. I've seen people often get gigantic home loans and barely spend time in them because they have to work to afford them. Dream home they can only afford to dream in.
please go look up the 2024 values of the houses that you could have bought with 3X the mortgage back in 2017. If you gained 100K in equity since on your current home....the 3X version of your home gained 500K. I know Dave went bankrupt over leveraging himself, but doing the opposite of his plan would have grossed way more since 2020. All my neighbors who maxed out their debt at low interest rates by refinancing, are putting in lavish kitchens, pools, backyard kitchens, new bathrooms. The Jones's" all came out cash flow positive on taking more risk and they are laughing at me. I did the Dave plan...I am baby step 7, but now have to pay 2X-4X the 2017 cost for any repairs / renovations that are needed on my house. Had I not done the plan, I'd likely be getting a bail out when the housing market crashes just like my neighbors will.
*DaleValskov* has the most potential to do more than X10. ETH and BTC will most likely do a X5-X6, but that's fine for me. Gotta look for better entry points while I stake IRIS and PGEN, then wait for Polygen's next raise as I also look at their new partnership with Kenzo Ventures
Like the World Economic Form said in 2016. "You will own nothing and be happy". Of course, what they meant was "You will own nothing and we will be happy about it".
I really want to move to a foreign country, but idek where. I've never even traveled out. I don't have money to go, I'm working on a bachelor's anyway. But everywhere has its problems.
Can't deny the fact that *DaleValskov* is the strongest bet to bring power back to this industry after we suffered FTX, Celsius, Tera and so on. Sure if they fail it's done for good, but I don't see that the biggest tech company in the world would put everything at risk just for that.
It hasn't. They admitted it in the video. A lot of people will have to leave the area where they live if they want to find affordable housing. That is just the hard truth of it.
@@TheSterlingArcher16if you already own nothing you understand. If you're not there yet you won't understand until you actually own nothing. Homelessness looks like a choice until it's you living in your car or under a bridge
You talk like somehow you’ll convince life to be fair. It won’t. Income will remain unequal, people will be impoverished, children will get cancer. You can’t emotion away that reality. All you can do, is take control of what you can control, that is what Dave is advising. You control your debt, you control your savings, you control your risk by not taking on large loans that you may default on.
We love our new build! Built in 2020, and value has gone up 60% already. Next month, we are moving for my job with my company (all company paid), and will sell. The area we are moving to just by chance, is much much cheaper than where we are now. I will be able to use just the equity I have now to purchase the same house outright where we are going to. I will be mortgage free at 29. sweet!
That's just because people are opting for cheap everything because they care more about the size of the house than the quality. You get what you pay for.
I disagree with waiting until you can afford a 15-year. We got a 30-year loan. Extra money goes towards it, but houses here have gone from $400k to $800k in about 7 years. Our house is old, about 1500 sq ft, not some luxury situation, just very high COL area. Our mortgage is significantly less than rent on a tiny 1 bedroom apartment.
@@matthewphillips5483 you missed the point. If they would have followed that rule and waited, home prices would have still shot up and they would have lost out on 400k equity. They would most likely still be renting.
@@DanielGonzalez-zc6kw So your point is to do whatever you can to buy a home? No matter if you can afford it or not? No matter what the price or interest rate? Nice advice, dude, I think i'll pass.
@@matthewphillips5483 I'm not sure how you came to that conclusion, especially considering the fact that I gave no advice. I don't know your financial situation, debt, income, etc. I simply stated you missed the point and if they would have listened to Dave's advice they would have been screwed.
@@DanielGonzalez-zc6kw People like you forget that buying a property is a journey. It's easy to look back (survivor bias) and say "see, they made a good call because they have xxx,xxx equity!" However, many people get in over their head and get foreclosed on in the first 5 years because they purchased more home than they can afford. Although I think Dave's advice of 25% of net over 15 yrs is ridiculous and unrealistic for most people, it would be crazy to go over 30% of gross for 30 yr fixed.
Rachel is spot on. We can no longer afford the house we currently live in. If we were in the market to buy today, instead of 7 years ago, we would not have bought our current house. In the last 7 years, our house has gone up in value about $100,000.
@andreawilliams4977 We bought our house in April 2017 for $130,000. There's a house just like ours in our neighborhood on the market right now for $275,000 and they will probably get it. It's crazy.
What’s also tough is to spend 4 years waiting for a crash to only see everything go up. Homes are still going up in value and many people who were waiting for a crash have gotten priced out.
Yup. Then they give in and buy at the worst possible time, then the crash happens shortly after they gave in. Usually how it goes. Only buy if you plan to stay for a long time or can find a great deal on a fixer.
I had a divorce attorney that I was interviewing after I got the “Im not happy” delete sentence out of the blue. He recommend that I sell and wait for the crash…glad I didn’t hire him…the guy was all sizzle and no steak judging by his office decor and pompous attitude. I ended up preserving wealth by cutting a deal to not liquidate a property at fire sale prices.
I agree that prices have increased but do have wages. The bigger issue in my opinion is that peoples standards have increased too much. Lower your standards and you can afford it.
Houses are more, but people are making more. Stop whining!! Don't buy a house if you can't afford it. My kids are working, renting, and doing just fine.
They are. Unfortunately, that means you have to adjust your lifestyle downward to your income. For me, that meant moving back in with my mom at age 52. It sucks. And I know other people don't have that option. But many others could do similar things to remain financially solvent, but won't.
The median household income in the US is 75k. The take home for that is around 60k. That's 5k per month. 25% of that is $1250 per month. That gets you a maximum 15-year fixed mortgage of 150k at most given current interest rates. So a budget of 165k if you put down 15k. The only homes available in that range right now on Zillow in my lcol area are in trailer parks. Trailer parks or renting is the only option for half the country if they follow Dave's suggestions. Not blaming Dave btw - The math is the math. But I'm not surprised that most people would rather tolerate more risk than be excluded from home ownership.
Lots of nice homes for 150K here in the mid west. And the pay is a lot higher than places like Florida and Texas. It just isn't as warm in Jan. But living here will allow one to become wealthy. It all comes down to what you want I guess.
@@angelaonthego Lots of places. Illinois, Michigan, Ohio, the list goes on. Having lived in Florida I can tell you the cost of living difference, income vs expenses, is very large.
Yes Murphys law just paid me a visit. I finally got to the point financial where i owed money only on my car and house, then my HVAC needed to be replaced.
This makes things more realistic, get a 30 year and try to pay it off in 15 but if a major life crisis happens you only have the small 30 year payment to make. Nothing wrong with paying it off in 20 years and as Dave said odds of you being there in 20 years is slim anyway. Even simple strategies like bi weekly payments or an extra $200/month to principal will cut you time to 20 or so
It’s me, I’ve bought all homes at that percentage. But I live in a neighborhood far below my means. Still nice neighborhoods, but people are still shocked when they learn what my wife and I do for income.
At today’s interest rates, a mortgage of 2x your salary before taxes gives you the payments that Dave is describing. $70,000 salary: $140,000 mortgage. That’s the math.
3:50 yep - bought a house - had to put a new roof on the addition living room within the first year. Had an emergency fund - not nearly as stressful as if we had nothing.
And that's the one takeaway you'll get from this video, ignoring everything else he said. He also said people are buying more crap than they need. Listen to that advice as well.
It is still possible, although difficult for most. My wife and I just put 20% down on a 440k house. Our income is 180-200k before taxes. No debt. 6 month emergency fund of 30k. Mortgage is 6.875 on a 30 year conventional fixed. 15 year seems bizarre when you can just add principle payments each month. We will refi when they go down. It’s tough, but possible.
Dave’s formula to buy a house puts the majority of the country in a one bedroom one bathroom 500 square feet shack in rural Montana, and that’s probably pushing it.
Average household income in America is about 75k. A 15 year fixed at 6.8% gives a $1334 payment for a $150,000 house (not including taxes and insurance), which is still just above the 25% threshold. In a city like Chicago, that’ll get you a 1 br condo in a good part of town or a house in a bad part of town.
Which is why you shouldn't follow his advice especially if you're a first-time home buyer. Take the 30-year fixed, stay out of any other debt, and pay off your mortgage early instead of spending more years saving up for a 15-year fixed and never being able to afford anything decent.
My hubby and I are blue collar, we bought our home 25 years ago new, 171k, 3 bd/2 1/2 bath,we couldn’t even touch this house today, Zillow price is 493k. We paid it off last fall. 😊
@@PSCA1988 actually we pay high taxes anyway where I live, my local taxes just went up $63 bucks, I’ll take it, school taxes go up a few bucks every couple of years.
@@TheSterlingArcher16 my husband has worked 55-60 hours a week. Try doing that for 36 years, m-f 530 am-5 at night plus every other Saturday 7-12, plus I worked 2 jobs. Try more work less whine.
Well, I heard Dave Ramsey‘s advice a while ago, and was reminded of it today and think it’s pretty good advice. Set aside an emergency fund and get out of debt. A lot easier said than done though please pray for my wife and I to be able to accomplish this.
Some people are really going to have a rude awakening to see how much things cost to fix 🤣 I do most of it myself but still prices at Home Depot up 50-70% for some items
Yeah, stuff is expensive. Roof on my house was $10k (cheap) 2 years ago. Driveway needs replaced @12k. But I bought 9 years ago and know exactly what condition the house is in and what it will need over the next 10 years
@@BREEZYM6015 all good you can but damn I wish it was cheap ! I just replaced my kitchen sink pipes cuz leak. Cost me $49 plumber wanted $450 ..but before that would be $15
Home buying varies a lot depending on where you live. Here in Sydney the average home price is $1.4M and apartments $861k. These are not fancy homes. So it's difficult for many people.
Yes when we bought in 2018, our mortgage was $1200 property taxes have gone up and so did our home insurance so our mortgage was going to go up to $1400 we refinanced and got rid of our PMI got it down to $1200 and property taxes went up again so now we are sitting at $1300 😅. This is with a 30 year fixed so no matter what your mortgage payment can still fluctuate.
@@mysticaltyger2009yeah because it’s really easy to just pack up and leave the place I was born and raised and where family is buried and where elderly relatives who need care are, throw my career out the window, and move 3/4 of the way across the country just to buy a house.
I agree with everything except the 15 year, especially as a first time buyer. I’m 27 and make 90k a year in a major metro in Texas. With the 25% take home rule, the most I could afford would be 1350 a month. The only places I could afford to buy are places I wouldn’t even be making the same income. Sorry Dave but the 15 year is just not an option in this market.
@@danimal6687 Perhaps a median income where you live isn't enough to buy the house you would like. It sucks, but it' seems fairly common in many of the hot spots where everyone wants to live. The guy who sold his house in California for a big profit and moved to Texas might have an advantage over the locals.
I have several neighbors who are now living with their kids, or the adult kids are living with them. My sister has two of her adult kids now back living with her. They're all working FT and doing everything they can. I definitely see multigenerational living making a big comeback and less stigmatized as everyone tries to ride this storm out. Hang in there!
Yep, that's me. I moved back in with my mom at age just over 2 years ago 52 after more than 30 years of living on my own without parental support (other than modest cash gifts for birthdays & Christmas). Working a low pay job and no way I can afford to rent an apartment let alone buy a house. However, I do have retirement savings, just not ready to tap it yet. I've probably got 1 more year to go before I"m in a financial position to rent my own place or to buy something.
@mysticaltyger2009 good for you! Just having retirement savings will put you so much further ahead than a lot of people right now. Your discipline will definitely pay off
@@Elizabeth_lowkeyluxuries Thanks. I've always been a frugal weirdo compared to the norm. I can't wait to leave the work force, so saving is easy for me.
Our kids never left home since the day we adopted them. Our oldest passed away when he was just 1 year old, our second one died due to diabetes during a road trip, our third one had a cancer and passed away in my arms, our last one is now a senior and have back problems that I have to carry him every now and then. After all these years, we have been so blessed to have these four legged (dogs) companions with us. Thank you for letting us share.
We own a home, but it’s hard to do upgrades. It’s frustrating because we have constant medical bills…I mean CONSTANT. 25% of our income goes to medical. We are ALWAYS in medical debt. Medical, not cars, or college, or credit card payments. It’s so discouraging.
@@siva47931it could be chronic but that's some terrible insurance you'd think not even Obamacare plans would be that bad, most plans I've ever seen cap your overall spending at around $10k per year
Too much debt is a stressor, but so is getting shafted by the corrupt system that the boomers like Dave have built. The social contract is broken and housing has become unaffordable for many more people in recent years. This is the kind of trend that breeds resentment, anger, and may be the cause of actual civil unrest and conflict if it continues on the same path.
VA loans do not have the same fees for disabled veterans as for those without service-connected disabilities. Most vets have (or at least would qualify for) some level of service-connected disability. If you're a vet out there, and you aren't yet service-connected, go see your local VSO (veteran services officer), which is FREE, to get your claim going or to be re-evaluated.
Remember in 2021 they told you not to buy a home and keep renting? Now your rent is up 20%-30% and homes are up 40% and interest rates are up 100% 🤣🤣🤣🤣 “By 2030 you will own nothing and be happy” WEF
@@TheUncommonKIBBLESmaybe you need to go watch some videos from 2021 where they tell everyone NOT to buy a home unless it is 1) a 15 yr fixed mortgage 2) less than 25% of take home income 3) have at least a 20% downpayment 4) pay more in closing costs with manual underwriting 🤣🤣🤣🤣
@@TheUncommonKIBBLESseems like you haven’t followed Ramsey very long. People who stuck to his rules in 2021 who didn’t buy a house when they could have afforded it is definitely worse off now.
The biggest stress is living in NJ where the politicians will find every excuse to raise your property taxes based on the increase in home value, yet wages do not keep up.
Whoa, I didn’t know that was an option! What’s your credit score? And did you have to ask for them to remove the PMI, or did they just “automatically” remove it based on your score?
@@voidfroze 760ish. They did it automatically. I was talking through the numbers with the mortgage lender and I asked about the PMI, and they notified me they placed me into a conventional loan rather than FHA since my credit score was good. It may have helped that I took their Home Buying course as well. but they only mentioned the credit score. Either way PMI is not mandatory and its negotiable if you do it the right way.
Weird I never thought about it but we put down 10% and didn't have to pay PMI and I never questioned it because previously I always used my VA, but I have a credit score around 810. Yes I'm that person that puts everything on credit card and pays it of every couple weeks. And I don't even have one with miles,lol guess I'm missing out
Followed the Ramsey rules for home purchase other than 15 year...could get into that....but couldn't be happier. Some people have bigger houses but we have a life lol.
Thank you I needed to hear this, I’ve felt like a failure the last year for not being able to afford a house. I make around 320k a year and here in South Florida the housing is crazy. 500k studios.
Would y'all agree that $4800/month is pretty decent take-home pay? Because with today's interest rates and Dave's math, that'll set your budget at about $170k. What even is that today?? A 2-bedroom shack out in the country??
I have a question/comment. My current house is a conventional loan but, the first home I bought back in 2002 I used a VA loan. Near the end of this video it was said that you pay more in interest and fees by doing a VA or FHA loan. Again, my first house loan was back in 2002 and I think my interest rate was gong to be 7.6 but the VA loan dropped it to 6.8. Back then you got close to a percent discount. Has that changed? Also, back then I was shown that some fees were waved and after talking to people that bought houses around that time it seemed like I payed less than non VA home buyers. So, my question is, have things changed with VA loans or was that statement incorrect? I will also add that, to my knowledge, the VA loan is the only loan out there to where you don't pay PMI if you didn't have 20% to put down on the house so I would have to think that is a plus. I listen to and watch Dave Ramsey all the time so I was just curious if VA loans have changed or if that the comment at the end of this clip wasn't correct. Thanks!
A 15yr fixed is still out of touch Dave. If I get a $300k house and put 20%, I’d need to take home $12,400 per month to afford the mortgage with taxes and fees. That’s a $150k per year take home. How is a first time buyer supposed to do that?
Dave’s plan works. I have worked the baby steps two separate occasions gotten out of debt and saved a large emergency fund. However, I would like to ask Dave if he would ever adjust the baby steps to reflect a more current economic time. Home prices are going up very fast I believe in 10 years the average price for a home will be 750 K to $1 million. Should people Invest more than the 15% to keep up with inflation
He’s right about that once I got out of debt. My life became a lot less stressful and I feel free. The less payments you have the less you have to worry about on a monthly basis and you can focus your attention more on the things you actually want to.
The prices cannot rise infinitely, at some point the demand will just drop hard and with that, the prices will eventually fall. Nobody is earning enough to afford all these houses.
It would be nice if home prices stop increasing @@Asto508 but the prices will continue to rise not as rapid as they have but every year they will consistently get slightly higher and higher. In 10 to 12 years, the prices of homes will double not to mention more money will be printed reducing the value of that money. Not to mention, a large portion of homes in America are currently owned by a few big corporations That buy those houses as write off
To follow the 15y 25% rule anywhere within about 100 miles of where I live, I would need an income of roughly $300k AFTER taxes. That's a standard SFH from, say, the 1960s or 70s. Likely very dated on the inside. $300k/year.
I need an answer - my one conundrum. I have recently divorced and sold my house because I had to because of the divorce. I am now living with my partner and pay $300 a month rent towards his townhouse. I have $350,000 in the bank collecting interest at four point, 5%. But I feel very vulnerable because we are both page 67 and I do not own a house. He is not willing to work with me and move. Do I stay put? I am collecting Social Security and interest Said money please advise. Thank you at least I should buy some land, even though it will be far away from where I would rather live.
I purchased my home years ago. Put down 3 percent. Paid my house off in 14 years. Today, it's worth 700k. If I listen to this guy I would have missed that opportunity
I bought my "forever" home in 1996. I knew my kids would grow and leave but I wanted them to return to a location that contained a childhood full of happy memories. I sold that house because we wanted to be close to our grandchild and give our grandchild memories of us.
$300,000 loan at today's interest rate is a $2670 payment on a 15yr, before you even get to insurance and property tax. $10,680/mo is what he says you need, and it's over $200k/yr gross. For a house below the average house price. Dave doesn't know how to do math. He literally just doesn't know how to do math. It's no wonder he went bankrupt.
So you’re not wrong on the math, but as a Ramsey team member who is also licensed for mortgages Dave’s information is sound and mathematical. Ideally Dave would say pay cash by saving up and investing over time. Saving $1,500 a month and investing it over a period of 10 years will get you that home in cash or a very small payment. It’s difficult to convince someone to save up for that long which is why he is okay with mortgages in general. If you save up enough to bring the payments down to be in that 25% net range (difficult but doable, 25% gross wouldn’t be terrible either) you are in a great position to pay off the home early which is consistent with his baby steps and teaching.
@@RonnieMate Except Dave also talks about how important homeownership is in order to "lock in" your housing expense. He says things like, "house prices are not going to come down," as a reason to buy sooner rather than later. For the record, that's financially sound advice. Saving for ten years means essentially paying off someone else's entire mortgage before you even start on your own. You're also making a lot of assumptions about investment returns over the next ten years - it's 100% plausible that stock investments lose money over the next ten years AND that home prices continue to rise. For someone whose financial philosophy is entirely built around risk aversion, that's an incredibly risky approach.
@@Undefined14 But you need to deduct rent though? if you stay in the house, means you aren't renting from someone else. Probably still be more expensive than renting, but you have equity in it, not helping someone else pay off their house. For me I think it's just a lot of people have lifestyle creep problem. simple math would be if you see someone can live with 30k, why can't you? especially if your take home pay is more than that. and if your take home pay is 74k, live like 30k for 2 years, and you have 88k.
@@RonnieMate Average home price in the US is 495,100. average household income in the US is74,580. an average household would need a 65% down payment to buy an average house while having a 15 year fixed rate take up less than 25% of their income. that is 320,000 in net worth before you think of buying an average home. 65-74 year olds are the only age group in America with a median net worth more than 320,000, with 410,000, but having only 90,000 in investable assets and social security isn't exactly a great place to be for retirement age. difficult and tough is an understatement for the average family.
House prices in the UK are even worse. You can expect to pay between $250,000 - $400,000 for a 1000square foot home. And average wages are only $40k. To get something that's a 15 year mortgage and 25% of you're income you're looking at a 200 square foot flat or living somewhere where there's no jobs.
I actually worked out 25% of my income as an electrician with a diploma would pay for an 8x6 brick built shed based purely on the square footage. Most average newish 3 beds around here are £500k now. Even a 1930's 3 bed semi is £425k and that's still a doer upper
I live in a village outside Coventry, the 3bed semidetached was £209k in 2019 with a 20% deposit. It’s quiet, it’s clean and the neighbours are nice. I work in the automotive industry and it is possible. In 2021 we had a baby and we choose to raise our little one ourselves, so my wife quit her job 3years ago. We don’t have car payments, I fix almost everything car related or house related. We don’t have credit cards either. We don’t have any other loans. We keep track of our expenses on a monthly basis and we budget for any expense. We will go on holiday soon, a camping holiday on the beach, and probably another camping holiday in September. It is possible to live on a single income but it’s a mindset, it’s a way of life, we don’t buy brand, we buy what we need mostly and not what we want. I’ve recently fitted a towbar and the wiring harness by myself, plastered the house, fitted hardwood flooring, re-roofed an extension, fitted a new timing belt and water pump on one of the two cars. It’s hard work but it is very enjoyable when you see the results.
@@Florin_Bolocan I really depends on what the single income is through to whether it's possible or not. And it's easy not not to have a car payment I bought my car over 10 years ago cash. Maintain it myself knowone ever needs a credit card. I actually took a towbar off and sold it for £70 so that was good.
Hi Chris, after pension contribution we live as described above, on about £47-48k gross per year, single income. I’m paying alimony for my first son and I’m the sole provider for my wife and my second son. Mortgage is £600 and will raise to about £850, no car payments (both cars are paid off), no loans, no credit cards, we plan the shopping for groceries, and more measures to make sure it’s possible. We are boring but I would rather be boring than broke. My mom was recently diagnosed with kidney cancer and my brother and I we will pay for her surgery (7500 euro) that is only possible because we have the emergency fund that Dave talks about. I’m happy to help or to have a chat with you. I’m also willing to learn from others. Thank you for your patience in reading these messages.
@@Florin_Bolocan not that unrealistic if you rented that place it would probably be more like £1500 a month and them the single income would be a struggle. £600 mortgage sound like a dream now. I think we're boring and broke. Hope your mom gets through the kidney cancer and gets back to good health. Thanks for letting me know the details. All our incomes and outgoing are different and everyone has different wants that's a good thing really.
As life progresses I find myself more and more aligned with Dave. I have no debt outside of my personal residence and a few rental properties. My financial goals now are to pay off the rental properties ASAP and then my personal residence. Then I'll snow ball that money in to purchasing more rental real estate.
Just paid off my car a year early - taking that payment and paying down several credit cards. Am working to pay off the lowest balance in 6 months and then taking that payment and the old car payment and paying off the last card in 8 months after that. I pay cash now for everything - still adding to my emergency fund - if I don't have cash to buy something, I wait until I do without having to tap into savings. Dave's system works.
I’m a first time home buyer. If I can only choose between a 15 year fixed or a payment that is 25% of my take home pay which is most important? My income will go up so I’m thinking 15 year fixed and just be house poor for a while. What do you think?
I did the formula. The ONLY reason i was able to do it is because i was so lucky to find the NACA program. No closing costs, no pmi, rates fixed and always below prime. They underwrite the mortgage... .. so no credit score needed... perfect program while doing the baby steps. They hold you accountable in the babysteps I couldnt have done it without an affordable mortgage----- houses are expensive enough
Prices of houses can be brutal combined with interest rates. I have no debt, 20% down payment and dont care for a large home as long as its well built. Nearly nothing in the area I can afford. If interest rates drop to 2-3% then it would be easy to do but at 6-7% its very difficult and not worth it for me. Canada has terrible interest rate plans. Its 3 or 5 year fixed or fully variable. Very rare to get a 15 year fixed sadly.
The house they can afford doesn't exist or is in the hood. Median income is allegedly 67k a year. 1395 a month mortgage before all the add ons, according to Dave's plan. Where exactly is that again? I am master carpenter barely making more than that lately so be careful before you insult other hard working Americans. That is a thing on this page.
@@SuperEddietv Don’t insult hardworking Americans who save and sacrifice and pull it off. My husband was making 80k/yr in 2022 when we bought our $250k house, NOT in the hood and NOT in out in the country either, actually in the one of the fastest growing safest cities in Ohio. We put $75k down. It’s an ugly home, everything is old, and we are slowly saving and cash flowing the improvements over time. I have the oldest uglies home of all our peers but we’re no doubt in the best financial place and I’m a stay at home mom.
@@haley2542 I've made less than that, 3 years running and the lowest house for me and my tools is in the 400 range here in central Florida. I had 50k down for a house 5 years ago....meaningless. We've barely crawled out of the hole from the last depression in 08 and they toppled the economy again. At 58, I work harder than any crew of 4 illegals, just to do what I do and it is washing away, dipping into my down payment and by the end of the year, I will probably be into an emergency fund......at this rate. Right now, as I type, The median home price in my county is 384K, depending who you follow. It is an insult to blue collar Americans and Americans who make the median. According to Dave's plan, the mortgage for these majority of Americans is 1288.46. Where is that at? Rents top $2000 here with the average being about 2350. That is for an apartment as there are no houses available and I rent 2 warehouses on top of that to house all the tools I use. Master Craftsman is meaningless here mostly now because of illegals and penny pinching. Kudo's on the stay at home mom. Total respect for that.
Why would you do a 15 year mortgage? Why not 30? You can always pay more into it but you cab never pay less. If you lose you job or have an issue that prevents you from earning an income then you're much better off being able to lower that mortgage payment to the 30 year rate, otherwise paying like it is a 15 or 10 year mortgage
@@darrengeorgetown6758because it guarantees you save thousands in interest over the term of the loan, which is why it also comes with the 25% rule. You can’t leave out the obvious risk management part of it.
@@smizzzy1240which is why you pay it down like a 15. If a job loss happens it's not as painful as you can then pay it as a 30 until the emergency is over. Best of both worlds
Because you save thousands in interest and the payment isn't that much higher. Also relives you of the discipline factor of having to consciously make double (or more) principal payments. It's the very same discipline trick as cutting up your credit cards. If you just know your world is going to cave in on you, then it will.
I have owned 2 homes. At age 25, I was house poor with my first home in Los Angeles, for a few years. I lived there 30 years then retired and moved to TX. I bought my current home in TX for cash. I downsized to a house twice as big with woods. That was 19 years ago. I don't know what a forever home is but I could afford it if I found it.
I bought my home in 2018 and thought I was getting shafted. My mortgage payment is about $3,000 a month. This is 30-year fixed rate and no, I don't take home $12,000 a month. Now you can't get a 30-year mortgage on a home for under $5,000 a month unless the house is unlivable/condemned and NOBODY in the middle class that I know takes home $20,000 a month. This is all with 20% down. Therefore, buying a home is no longer for the middle class. Unless you're willing to live on beans and rice for some time and accept being a slave to your mortgage for a while, pay down the principle and eventually refinance to make the payment manageable. Hell, just property taxes over here would be $1,000 a month on the low end if you divided it up that way.
This has all been planned by the World Economic Forum. In 2016 they said "You will own nothing and be happy". Of course, what they meant was THEY will be happy when we all own nothing. The situation we have in the United States is not unique. It's worse in Canada, Australia, New Zealand, and some other countries.
We bought our first home February of 2023. A 135 year old home, in a rural area for $200k. It’s big enough for future kids (we have just one now). My husband has worked remotely for his company always (going on 3 years). We are just praying that we can stay in this house for a long long time. It is the perfect amount of liveable and fixer upper.
The problem with buying a less expensive house and you have children, is that your children will almost always be going to an inferior school. At least it’s that way in Oklahoma. Now apartments are flooding our area so folks can get their kids in a good school district.
True in most places. Another reason why home schooling needs to expand. The schools are lousy even in many middle class areas. Not to mention the garbage ideology taught in many of them. (I'm gay myself but don't like a lot of what is being pushed in the schools).
Dave nailed it on the water heater will go out next week. For us, it was 3 weeks after we moved in. Thing started GUSHING water. $1,200 for a new one. Thankfully, I was already Baby Step 7 Debt Free, so I wrote the plumber a check the minute they finished work and we enjoyed our nice new water heater! What's crazy is the heater that failed was only about 4 years old.... one year beyond the 3-year warranty. But other than that it looks nice and worked well. No evidence it was about to fail.
Totally Agree with Dave: heaven (Jesus) is my home. I am single income on a clerk salary living in California. No family. No government assistance. I bought a house away from LA and take the train to work. I lived like a broke college student and paid off the mortgage. Today, I am debt free net worth > $1 million. Anyone living in USA can do anything if you CHOOSE to get out of debt. You many not buy the house you want in the location that you want, but there's so much opportunity everywhere if you just be openminded. Since being debt free, the bank is now paying me $1000 monthly on my HYSA. I am no longer a slave to the bank paying them interest. The banks are paying ME interest!! That's why Dave preaches so strongly about being debt free. People open your eyes and listen to wise counsel. If you are in debt, you have been brainwashed by society's norm is a life of poverty and stress.
Unfortunately, waiting to get 20% down like Dave said, has cost me hundreds of thousands on house appreciation and interest cost because I missed on the low rates. Now I'm paying a 6.5% mortgage and a way more expensive house. Everything else Dave says is solid including this but the 20% was bad in these economic times.
Dave is a math guy tho take the cost of an average house monthly payment on 15 year note 20% down find out how much income it takes to buy a 400k home it's about 150k a year 10% of people make that to 90% of people can't buy a home under your rule and they shouldn't but 90%.
Prices have gone sky high, companies have been buying up properties that have made prices go up, wages haven’t kept up…..yet it’s the people’s fault they can’t afford a home according to Dave. Of course a real estate guy isn’t going to blame the factors that caused the increase in prices.
And we have a president who loves to spend and spend and spend driving up inflation, so the Fed had to more than double the interest rate to cool off all that spending.
German here. Our financial rule always was to have at least 1/3 of the house's total cost in cash before you get a mortgage, and of course you'll need to get a PMI in case you loose your source of income. Typical mortgages were 20-30years, fixed rate. That was solid, reliable, and worked 99% of the time. Since we've adopted "the American way" of living & spending way above our income, things of course have turned sour, like in the US, too. And not only in the past 3 years!
I live in Colorado where the average home cost is $550,000. I transfered to a new postion in my company that requires travel. This allowed me to look in other states for a house. I am closing on a modest house in Kansas, the mortgage payment will be 10% of my income and I can have it payed off in 10 years.
My father bought our first house in 1964 with 500$ down, total value maybe 10 thousand That same house recently sold for 575 thousand You want a house today, either make big money or save big time
Rent is the most you'll pay per month. Mortgage is the least you'll pay per month. If you buy a house, be financially prepared for everything that can and will go wrong.
@@pneron2032 Im just about to buy something, and the mortgage and property taxes together are cheaper than my rent plus it comes with a 1 year warranty on all that stuff. And the place I’m buying also doesn’t come with a drug dealer in my basement and windows that don’t work and will never be fixed. There’s a lot of downsides to the loss of control that, to me, are worth the cost of repairs.
I make $150k a year... we are moving. Was looking for houses. There is no inventory so prices are outrageous. A crappy 40 year old shack on a few acres costs $400k. 15 year mortgage is $3700 a month. No friggin way am I signing up for that, for a crap hole. I'm renting for now ($1100 month) buying land and building my own place. Can buy a real nice 20 acres for less than $100k and spend $150k on materials for a nice house. In this screwed up market would be listed for $600k or more. We're saving cash like crazy. I think we'll be able to cash flow most of the build if we don't go overboard with the land purchase.
Where we live in Ontario you are looking at a million for a dump starter home no garage and NOT detached. That's what my boy's are looking at . My middle son has more then 6 figures saved and no debt..he still doesn't want to buy a dump for a million ... and tye up all his cash. He's single no kids.
Bought my home in late 2008 for $196k. The bank told me I qualified for quite a bit more, but I was a "bad borrower" and didn't listen. Refied a couple times to my current 2.99%. My income from time of purchase to now is 2 1/2 times more. Had people over the years tell me I need to sell my small house and get something much larger and fancier because (according to them) I could afford it. I said no, this is my home and I love it. Small, economical and has what I need. This allowed me over the last 10 years to max my 401k and put money into other investments. I recently worked out a plan to get rid of the remaining balance of the mortgage in roughly 5yrs, becoming debt free. People today need to scale back their expectations with home buying. Stop complaining that home prices are too high. Complaining doesn't solve anything. Plenty of homes in my area for sale at or just over $200k.
One thing Ramsey will have trouble admitting is his College/House purchasing advice is in need of updating. Nothing stays the same. It’s not that he’s wrong, but he has an opportunity to really help people by considering that 20% down and 15 years is ridiculous in 2024.
And, just keep in mind that his advice also looked "ridiculous" in 2006-2008, but those who listened and didn't believe the "it's different this time" were rewarded with much more affordable prices within a few years.
I built a home between 2014 and 2016. I still live in it, I don't think I could afford to build the same house today between interest rates and cost of materials and labor. I probably couldn't afford to buy it if it were for sale today.
That PMI value is such a lie from him its not even funny. When I refinanced I had only about 10% equity in my home that I had originally put 5 down. Good Credit scores, another thing Ramsey doesn't believe in, highly influences your PMI. I had around 30 a month PMI with a loan balance over 200K as a result from having a 800+ credit score.
Bought my house in 2018. Each payment was a struggle. After 6 years of increasing my salary, I'm very comfortable and dont have to think twice about payments. That said, if I didnt already have this house, I couldnt afford one now. Interest and taxes have increased like crazy in the last 6 years where I am..
I’m in Ohio and the housing market here over the last 7-8 years is unlike anything I’ve ever seen. Homes that were bought for $130K in 2015 are now being sold for $590k. I’m talking about tiny, disgusting, poorly built 950 square foot shit boxes in quiet mediocre neighbourhoods. Then you’ve got Better, average sized homes in nicer neighbourhoods that were $300K+ 10 years ago selling for $750k+ now. Wild times.
Home prices 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 seek an independent advisor who knows about the financial markets.
I wholeheartedly concur; I'm 60 years old, just retired, and have about $1,250,000 in non-retirement assets. Compared to the whole value of my portfolio during the last three years, I have no debt and a very little amount of money in retirement accounts. To be completely honest, the information provided by invt-advisors can only be ignored but not neglected. Simply undertake research to choose a trustworthy one.
Impressive can you share more info?
There are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’Rebecca Nassar Dunne” and her performance has been consistently impressive. She’s quite known in her field, look-her up.
I just looked her up on the web and I would say she really has an impressive background in investing. I will write her an email shortly.
We followed Dave’s plan and got out of debt about 8 years ago. Paid off $65k in 2 years. We then saved up an emergency fund, save up and bought a truck in cash, then saved up and put down about 10% on a house. We got lucky and bought right before Covid and everything skyrocketed. Then we had a baby and she was born with brain damage due to oxygen loss. We spent the next year and a half in survival mode and all but drained our emergency fund. I lost my job when my daughter was a year old, and embarked on starting my own business. Things are still tight, we still live paycheck to paycheck right now, but we made it to the other side of our crisis. I can only imagine how much more difficult it would’ve been if we hadn’t gone through Dave’s plan and still had all the debt and no emergency fund to get us through. The idea makes me emotional just thinking about it.
life happen, how bad would it of been with debt and no emergency fund
Awesome job, keep at it. Wish you prosperity and health!
@@rosewoods3007 if theyre barely scraping by now, then the additional debt payments couldve pushed them into no longer being able to meet those payments. Also, it sounds like getting out of debt allowed them to save for their house. Rent is more expensive (monthly) than biying in a lot of places. The medical emergencies, plus debt payments, plus high rents have forced many people into the streets. Im being dramatic and clearly tough times hit whether you're in debt or not, but we shouldnt underestimate the damage a debt lifestyle can create
@@rosewoods3007 you are correct it could be done with debt, but that would be a much larger psychological issue to handle on top of everything else. Knowing you don’t owe anything to someone is very, very relaxing. It’s like a weight off your shoulders. It sounds like they certainly needed a weight off of their shoulders.
I hope your baby is okay!!!❤
My heart goes to the entire community for *DaleValskov* building up something even my grandpa can understand. This is so smart by them to launch it to shatter the doubts and fears of the common folk which is not even correct to begin with. Everyone knows the state of inflation and recession now and the way out is already in progress. Now it's just about catching the big fish
We bought our first home in 2021. Prices hadnt peaked yet but they were climbing fast. We did 25% of our takehome pay, but on a 30 year loan, NOT 15! Now, 3 years later, its 15% of our income since getting very nice pay raises since then. Also, we have 2 more kids than we had in 2021.
Just like Daves credit card rule, for the financially literate, there is some wiggle room to be "Dave-ish".
If we would have followed Daves advice and got a much cheaper and smaller home, we would be looking to upgrade right about now in 2024, which then we would be losing our 2.75% rate, and climbing into a 7% rate. phew....glad we did what we thought was right.
Dave just gives thumbrules.
Thumbrules don’t work outside the median income.
Most budget items don’t scale.
A guy making $50k is spending 10% on utilities.
A couple making $250k isn’t spending 10% on utilities.
Dave is cranking out advice to the average consumer, so he can’t have nuance, but you can.
@@JT-bs8wz , Exactly! His advice is very good in my opinion, very solid! But, it is advice for the masses, not the "one off". Especially the credit card thing! His survey that he always talks about where they "interviewed" 10,000 millionaires, there is NO WAY you can convince me that all 10,000 of those millionaires, every single one of them, dont have and use a credit card and they use it responsibly. Of course they do! Credit cards are free to use, and makes life easy!
@@stevegolacks8731 Exactly! I worked in the accounting office of a golf and country club. Every single person had credit cards. I was the one who had to do the monthly charges. Nobody came in there with cash, lol. About half of them used American Express. The rest had some type of travel credit card earning points or just converting points to cash. If a person is in their 40s or 50s and doesn't know how to responsibly used a credit card, interest isn't their biggest problem. 😂
Completely agree! I keep 1 credit card and I had a 30 year mortgage (paid off early)… 15 years and no credit card is impossible these days.
The main thing is to BE RESPONSIBLE!
@@mikezerker6925 But A credit card isn’t money. It’s a loan to yourself at 20+% interest. Don’t use them if you don’t pay the full balance every month. I have never paid interest on a cc in 35 yrs and I am not rich. A 15 yr rate is almost impossible today unless you had a lot of equity in another home and sold it.
My daughter just bought a cute SMALL home at 22! All by herself. She paid off her jeep loan of 5 years in a year and a half. No college debt ( she didn't go). She then saved up 20% of a down payment. A small home that a builder gutted and redid everything on the inside. She did get a 30yr loan and plans on making extra payments 🤞 her mortgage is as much or lower than local rent prices. It has 2 bedrooms so she could always get a roommate if she needs too.
So proud of her !
She works at a plastics manufacturing plant
She's awesome!! Some people are just lazy whiners and want everything handed to them.
My daughter is a rockstar as well, saves her money and has more in her savings at 21 than most older adults. She owns her car, has no debt and rents a nice small place at a very reasonable price for nowadays. Kudos to us, we have taught well!
Baloney
@@603outdoors7 that's so awesome to hear!!!! Way to go to your daughter and you for teaching so well ❤️
@@jimroscovius thank you! 🎉❤️
With rates climbing like never before in ’23 coupled with uncontrollable inflation, and our own mortgage now above 7.5% what are the best alternatives/strategies for avoiding a crunch and maximize my savings other than moving in to an RV with my two kids.
You are not alone we can no longer afford our mortgage, husband wants us to travel or relocate/I am proposing cashing in, walking away and renting while putting the rest in the stock market.
If you have the funds to travel you should be able to afford the mortgage.
We own a few rented apartments but don’t wish to sell them or make the tenants uncomfortable by inflating rents however I am being more cautious than ever with rising costs.
I will be glad to enlist the services of a reputable one. Pls how do I go about finding and vetting them. We know the value of a fiduciary as we have a family lawyer and he has hinted on it occasionally, so we’ve began to consider the idea.
My speculation. Many Americans are insolvent. Equity in a house will likely be tapped into via a HELOC or straight sale. I believe if they sell, many will go back to renting. And housing supply will inevitably rise. So you can borrow against your home.
Moral of the video. Yes it’s harder to buy a home today versus 1970. There’s not much you can do other than make more money or move down in home.
Correct. What r people thinking. Trying to buy a house on minimum wages. While others go get skills or trade or degree.
Average home size in 1970 was 1,500 sq ft, now it is 2,700 with a two car garage. Maybe people should lower their standard of living.
@TheSpringMood yes but that's part of the problem. Builders aren't building smaller homes, just 3500 sf behemoths bc it's a higher return. Those smaller homes were easier to get into, and then move up.
And minimum wage in 1972 was $1.60. When I graduated college in 1982 the average starting salary for business graduates was $10K. The problem is TUITION has skyrocketed and the typical starter home then was smaller and older than what young adults think they deserve now. We lived in apartments until we were married and saved for a down payment and that was usually in our mid thirties. Young people now are just spoiled and under the influence of tv and social media. It's not that hard when you stick to a realistic budget.
@@someguy5927 It's not that builders won't build smaller homes, it is that nobody wants a smaller home.
The efficiency of this *DaleValskov* is next level. To juggle walk throughs of various angles on the topic delivered to-camera, differnet content per topic from various folks underneath the umbrella of the track list of the larger big band concert itself is engaging and refined. To make a dense taccess like this so digestible is really something. Awesome work jack!!
I think it's time to make it more appealing for potential buyers. Real estate can be quite the rollercoaster! the stress and uncertainty are getting to me. I think I'll cut rents to attract potential buyers and exit the market, but i'm at crossroads if to allocate the entire $680k liquidity value to my stock portfolio?
"Overall, buyers hold a lot of the cards right now, and sellers are having to give out more concessions to close a deal." All the best, buying on sale is actually one of the best ways to invest in stocks, and advisors are ideally suited for such task
Until the Fed clamps down even further I think we're going to see hysteria due to rampant inflation. If you are in cross roads or need sincere advise on the best moves to take now with financial markets will be best you seek a fin-professional with fiduciary responsibilities who knows about mortgage-backed securities for proper guidance.
this sounds considerable! think you know any advisors i can get on the phone with? i'm in dire need of proper portfolio allocation
Annette Marie Holt is the coach that guides me, you probably might have come across her before I found her through a Newsweek report. She's quite known in her field, look-her up.
I just looked her up on the web and I would say she really has an impressive background in investing. I will write her an email shortly.
I feel that the last bull run was bolstered by all the money being printed. Major returns next bull run but I think they will be tamer in my humble opinion. A 10x on *DaleValskov* and a 15x on polygon are fair considering how much those two coins are interwov
My husband and I were fortunate enough to be able to pay off our mortgage early. We were both still working, and took the payment amount that we had been using to pay off our mortgage faster and we put it straight into investments. We were able to retire early because of almost 7 years of putting away what would have been our mortgage payment as well as maxing out our 401K/403B plans. Thankfully we were taught by both of our parents the value of living within our means. Thank you for your advice. I know it will help people. we are interested in investments that could set me up for retirement , I mean I've heard of people that netted hundreds of thousands during these crash, I listened to someone on a podcast who earned over $650K in less than a year, what's the strategy behind such returns?
It's amazing what you do *DaleValskov* We need a lot of people with your skills and set who have good intentions and spread love
We have been on a recession since the beginning of 2022, but big media and governments all over the world didn’t want to admit it. We need to be wise and use our brains. Knowledge is power and I’d like all the family to be powerful! Just purchased some *DaleValskov* Thanks for keeping us informed during this times of doubt?
I was calling out the recession since the second quarter of 2022. I am not nobody so my alarm didn’t go far. It was obvious. For me it was looking at people’s savings and reliance on credit to maintain their “standard of living”. It was absurd then, and it is still absurd now. People just keep borrowing to spend.
Define recession first. Based on your definition you may be right or wrong. Based on the generally accepted definition, we are not in recession.
@jimba6486 where are you getting your data from?
@@alainbileg9826 "based on the generally accepted definition"
The NBER Business Cycle Dating Committee typically confirms U.S. recessions well after they occur, for historical record and analysis. Traditionally, the U.S. government and media have tended to announce recessions based on prevailing economic conditions. For example, recessions were declared by media and government in 2000 and 2008 well before the NBER's official recognition.
Under the Biden Administration, the approach to defining a recession has shifted from primarily focusing on two quarters of negative GDP growth to a broader set of economic indicators, including employment data. Interestingly, much of the recent employment data, which plays a key role in the new criteria, has been revised downwards shortly after initial publication for almost an entire year now. Furthermore, there's a claim that the recent job additions in the economy have predominantly been filled by immigrants, not U.S.-born workers.
A recession isn’t based on your anecdotes.
By definition you can’t be in a recession if there is inflation. Prices inflate when the supply doesn’t match the demand. A recession is when prices start dropping because nobody can afford to buy AND they don’t. The problem now is folks don’t have the money but they keep on buying.
The recession has not appeared yet.
My wife and I bought our home in 2017. We were eligible to get one for 3 times amount but we see this home as our forever home, and the real estate industry created term, "starter home". It's not a retirement plan. We put money away in annuities and 401k plan. We're basically making it into what we desire. We didn't have a "dream home" in mind. Location and safety was a big priority. I've seen people often get gigantic home loans and barely spend time in them because they have to work to afford them. Dream home they can only afford to dream in.
please go look up the 2024 values of the houses that you could have bought with 3X the mortgage back in 2017. If you gained 100K in equity since on your current home....the 3X version of your home gained 500K. I know Dave went bankrupt over leveraging himself, but doing the opposite of his plan would have grossed way more since 2020. All my neighbors who maxed out their debt at low interest rates by refinancing, are putting in lavish kitchens, pools, backyard kitchens, new bathrooms. The Jones's" all came out cash flow positive on taking more risk and they are laughing at me. I did the Dave plan...I am baby step 7, but now have to pay 2X-4X the 2017 cost for any repairs / renovations that are needed on my house. Had I not done the plan, I'd likely be getting a bail out when the housing market crashes just like my neighbors will.
*DaleValskov* has the most potential to do more than X10. ETH and BTC will most likely do a X5-X6, but that's fine for me. Gotta look for better entry points while I stake IRIS and PGEN, then wait for Polygen's next raise as I also look at their new partnership with Kenzo Ventures
Inflated housing, deflated income and hyper inflated costs of living. This is the new era of American Dream.
Right
Like the World Economic Form said in 2016. "You will own nothing and be happy". Of course, what they meant was "You will own nothing and we will be happy about it".
If you’re an illegal immigrant though you can qualify for a free hotel room and a debit card for food. How nice!
I really want to move to a foreign country, but idek where. I've never even traveled out. I don't have money to go, I'm working on a bachelor's anyway. But everywhere has its problems.
@@mysticaltyger2009 Don't forget the eating bugs part! 😮
Can't deny the fact that *DaleValskov* is the strongest bet to bring power back to this industry after we suffered FTX, Celsius, Tera and so on. Sure if they fail it's done for good, but I don't see that the biggest tech company in the world would put everything at risk just for that.
My parents home was bought for 180 and sold for 780, explain how income has kept up with this
It hasn't. They admitted it in the video. A lot of people will have to leave the area where they live if they want to find affordable housing. That is just the hard truth of it.
@@mysticaltyger2009 thanks blackrock
It hasn’t. You’ll own nothing and be happy.
@@TheSterlingArcher16if you already own nothing you understand. If you're not there yet you won't understand until you actually own nothing. Homelessness looks like a choice until it's you living in your car or under a bridge
You talk like somehow you’ll convince life to be fair. It won’t. Income will remain unequal, people will be impoverished, children will get cancer. You can’t emotion away that reality. All you can do, is take control of what you can control, that is what Dave is advising. You control your debt, you control your savings, you control your risk by not taking on large loans that you may default on.
"Your forever home is Heaven" that part 👏👏👏👏😮😮😮😮😮😢😢😢😢😢😢
*your*
it's Evan
@@jji7667 thanks 😊
Didn't he say to marry the home? So he advocating for divorce
He's absolutely right!
Newly built houses are not only very expensive, but the quality of them has gone down. Poorly and cheaply built.....waste of money.
Same with new cars. Overpriced junk
yep, a 100 year old home will likely have old growth wood which is very strong and doesnt compare to the 30-50 year old trees we use today.
We love our new build! Built in 2020, and value has gone up 60% already. Next month, we are moving for my job with my company (all company paid), and will sell. The area we are moving to just by chance, is much much cheaper than where we are now. I will be able to use just the equity I have now to purchase the same house outright where we are going to. I will be mortgage free at 29. sweet!
That's just because people are opting for cheap everything because they care more about the size of the house than the quality. You get what you pay for.
That's a myth people say. Just ask a home inspector about the average quality of a brand new, up-to-code home versus one that is several decades old.
I disagree with waiting until you can afford a 15-year. We got a 30-year loan. Extra money goes towards it, but houses here have gone from $400k to $800k in about 7 years. Our house is old, about 1500 sq ft, not some luxury situation, just very high COL area.
Our mortgage is significantly less than rent on a tiny 1 bedroom apartment.
People trying to buy right now have it much tougher than you did.
@@matthewphillips5483 you missed the point. If they would have followed that rule and waited, home prices would have still shot up and they would have lost out on 400k equity. They would most likely still be renting.
@@DanielGonzalez-zc6kw So your point is to do whatever you can to buy a home? No matter if you can afford it or not? No matter what the price or interest rate? Nice advice, dude, I think i'll pass.
@@matthewphillips5483 I'm not sure how you came to that conclusion, especially considering the fact that I gave no advice. I don't know your financial situation, debt, income, etc. I simply stated you missed the point and if they would have listened to Dave's advice they would have been screwed.
@@DanielGonzalez-zc6kw People like you forget that buying a property is a journey. It's easy to look back (survivor bias) and say "see, they made a good call because they have xxx,xxx equity!" However, many people get in over their head and get foreclosed on in the first 5 years because they purchased more home than they can afford. Although I think Dave's advice of 25% of net over 15 yrs is ridiculous and unrealistic for most people, it would be crazy to go over 30% of gross for 30 yr fixed.
Rachel is spot on. We can no longer afford the house we currently live in. If we were in the market to buy today, instead of 7 years ago, we would not have bought our current house. In the last 7 years, our house has gone up in value about $100,000.
I think you meant "afford"?
We couldn't either. Our value has doubled in 7 years. It's insane.
@andreawilliams4977 We bought our house in April 2017 for $130,000. There's a house just like ours in our neighborhood on the market right now for $275,000 and they will probably get it. It's crazy.
Good for you that your home value went up.
I love your preachings during your financial programms.
Thank God for Dave’s wisdom. I hope the younger personalities that work for Dave pay attention to his wisdom and not take it for granted.
What’s also tough is to spend 4 years waiting for a crash to only see everything go up. Homes are still going up in value and many people who were waiting for a crash have gotten priced out.
I'm not waiting for a crash. I'm waiting until I've saved up enough to afford anything without moving away from my family, including my aging parents.
Yup. Then they give in and buy at the worst possible time, then the crash happens shortly after they gave in. Usually how it goes. Only buy if you plan to stay for a long time or can find a great deal on a fixer.
@@as2223I wanna sell soon, but im afraid of paying a high interest rate with my next mortgage :/
Yep. Shouldn’t have waited. Me and my two brothers all bought houses prior to 2020 working hourly retail. Now we’re chillin’.
I had a divorce attorney that I was interviewing after I got the “Im not happy” delete sentence out of the blue. He recommend that I sell and wait for the crash…glad I didn’t hire him…the guy was all sizzle and no steak judging by his office decor and pompous attitude. I ended up preserving wealth by cutting a deal to not liquidate a property at fire sale prices.
Dave I’m sorry but you’re living in 1970 still. Home prices have almost doubled over the past 5 years alone. People are struggling with shelter.
I agree that prices have increased but do have wages. The bigger issue in my opinion is that peoples standards have increased too much. Lower your standards and you can afford it.
What is the comment based on? He said basically the same thing
Pick up a 4th job and you should be alright.
@@williamedward3198na a 5th and 6th job you whiney baby
Houses are more, but people are making more. Stop whining!! Don't buy a house if you can't afford it. My kids are working, renting, and doing just fine.
I usually agree with dave, but there is no denying housing, rent and buying a house are way too expensive for the average person.
💯👍🏾
They are. Unfortunately, that means you have to adjust your lifestyle downward to your income. For me, that meant moving back in with my mom at age 52. It sucks. And I know other people don't have that option. But many others could do similar things to remain financially solvent, but won't.
@@mysticaltyger2009 have no kids and live in a 1 bed that's my advice. Don't live with parents that's messed up.
The median household income in the US is 75k. The take home for that is around 60k. That's 5k per month. 25% of that is $1250 per month. That gets you a maximum 15-year fixed mortgage of 150k at most given current interest rates. So a budget of 165k if you put down 15k. The only homes available in that range right now on Zillow in my lcol area are in trailer parks. Trailer parks or renting is the only option for half the country if they follow Dave's suggestions. Not blaming Dave btw - The math is the math. But I'm not surprised that most people would rather tolerate more risk than be excluded from home ownership.
Lots of nice homes for 150K here in the mid west. And the pay is a lot higher than places like Florida and Texas. It just isn't as warm in Jan. But living here will allow one to become wealthy. It all comes down to what you want I guess.
That’s brutal. I live in tx and $150k gets you nothing anymore. Ghetto or a condo in the ghetto with high hoa fees
@@FooFan-b3k”the Midwest” is a big place. Where is this magical land of higher wages and lower priced homes?
@@angelaonthego Lots of places. Illinois, Michigan, Ohio, the list goes on. Having lived in Florida I can tell you the cost of living difference, income vs expenses, is very large.
But Dave might actually be right, the risk may not be worth it.
Yes Murphys law just paid me a visit. I finally got to the point financial where i owed money only on my car and house, then my HVAC needed to be replaced.
Something always comes up! It can be annoying!
At this point just get a 30 year, stay out of ALL other debt and try to pay off the house as fast as you can
Car loans are terrible
This!!!
I agree 100%, and if possible, go into the 30 yr with as clean a credit history as possible.
Yup!!! Most people won't though. But for the ones who are good with money do this!
This makes things more realistic, get a 30 year and try to pay it off in 15 but if a major life crisis happens you only have the small 30 year payment to make. Nothing wrong with paying it off in 20 years and as Dave said odds of you being there in 20 years is slim anyway. Even simple strategies like bi weekly payments or an extra $200/month to principal will cut you time to 20 or so
I'm a long time homeowner and I'm still looking for the homes that cost 25% of ones net income on a 15 year fixed rate mortgage 🤔
It’s me, I’ve bought all homes at that percentage.
But I live in a neighborhood far below my means.
Still nice neighborhoods, but people are still shocked when they learn what my wife and I do for income.
They don't exist
In other words you have zero skills so you have a crap income.
At todays interest rates they don't exist for most people.
At today’s interest rates, a mortgage of 2x your salary before taxes gives you the payments that Dave is describing.
$70,000 salary:
$140,000 mortgage.
That’s the math.
3:50 yep - bought a house - had to put a new roof on the addition living room within the first year. Had an emergency fund - not nearly as stressful as if we had nothing.
The banks in New Zealand will now only give a buyer 6 x their yearly wage. You need 20% deposit, average house price here is $800,000
Holy fucking shit! Dave finally admitted that incomes have not kept up with housing!
Looks like Dave actually did some research on the current status and didn't rely on what he did 10 years ago
And that's the one takeaway you'll get from this video, ignoring everything else he said. He also said people are buying more crap than they need. Listen to that advice as well.
Americans generally have a spending problem...not an earning problem.
but you can buy a house with a payment 25% of your take home pay
It is still possible, although difficult for most. My wife and I just put 20% down on a 440k house. Our income is 180-200k before taxes. No debt. 6 month emergency fund of 30k. Mortgage is 6.875 on a 30 year conventional fixed. 15 year seems bizarre when you can just add principle payments each month. We will refi when they go down. It’s tough, but possible.
And if you were single?
Do the math on that 30 yr mortgage at 7%. You will pay three times the actual price of the house . Money at at 7% rate doubles every 10 yrs.
You have the benefit of a high income.
Dude you make over $175k thats top 10% of the country, you aren't normal!!!
Work hard. Make more money. Live well below your means.
Dave’s formula to buy a house puts the majority of the country in a one bedroom one bathroom 500 square feet shack in rural Montana, and that’s probably pushing it.
No, it doesn't. Don't buy if you can't afford it.
Average household income in America is about 75k. A 15 year fixed at 6.8% gives a $1334 payment for a $150,000 house (not including taxes and insurance), which is still just above the 25% threshold. In a city like Chicago, that’ll get you a 1 br condo in a good part of town or a house in a bad part of town.
More or less
@@tommyatkinson7312nah 150k gets you that in a bad neighborhood in Chicago
Which is why you shouldn't follow his advice especially if you're a first-time home buyer. Take the 30-year fixed, stay out of any other debt, and pay off your mortgage early instead of spending more years saving up for a 15-year fixed and never being able to afford anything decent.
My hubby and I are blue collar, we bought our home 25 years ago new, 171k, 3 bd/2 1/2 bath,we couldn’t even touch this house today, Zillow price is 493k. We paid it off last fall. 😊
I hope the property taxes have gone up enough to be reflective of the homes increased value.
@@PSCA1988 actually we pay high taxes anyway where I live, my local taxes just went up $63 bucks, I’ll take it, school taxes go up a few bucks every couple of years.
Blue collar workers following in your footsteps now have to live in a trailer. Yippee!
@@TheSterlingArcher16 my husband has worked 55-60 hours a week. Try doing that for 36 years, m-f 530 am-5 at night plus every other Saturday 7-12, plus I worked 2 jobs. Try more work less whine.
@@TheSterlingArcher16 get two jobs like we did, 4 jobs between us!
Well, I heard Dave Ramsey‘s advice a while ago, and was reminded of it today and think it’s pretty good advice. Set aside an emergency fund and get out of debt. A lot easier said than done though please pray for my wife and I to be able to accomplish this.
Some people are really going to have a rude awakening to see how much things cost to fix 🤣 I do most of it myself but still prices at Home Depot up 50-70% for some items
I'm calling you when I need something fixed. 😂
Yeah, stuff is expensive. Roof on my house was $10k (cheap) 2 years ago. Driveway needs replaced @12k. But I bought 9 years ago and know exactly what condition the house is in and what it will need over the next 10 years
@@mph5896 roof prolly 15-17 now
@@BREEZYM6015 all good you can but damn I wish it was cheap ! I just replaced my kitchen sink pipes cuz leak. Cost me $49 plumber wanted $450 ..but before that would be $15
Home buying varies a lot depending on where you live. Here in Sydney the average home price is $1.4M and apartments $861k. These are not fancy homes. So it's difficult for many people.
Well you always have to worry about the insurance and land tax that will go up. Your escrow will go up, so your whole mortgage goes up regardless.
Yes when we bought in 2018, our mortgage was $1200 property taxes have gone up and so did our home insurance so our mortgage was going to go up to $1400 we refinanced and got rid of our PMI got it down to $1200 and property taxes went up again so now we are sitting at $1300 😅. This is with a 30 year fixed so no matter what your mortgage payment can still fluctuate.
This segment was really well done. Full of great info, particularly for an aspiring 1st time home buyer.
If you don’t make six figures than consider Mississippi the only thing in your budget..
Or a falling down house in a bad neighborhood.
Ohio
Probably not true, but not far from the truth, either. Parts of the Midwest are still affordable as well.
@@mysticaltyger2009yeah because it’s really easy to just pack up and leave the place I was born and raised and where family is buried and where elderly relatives who need care are, throw my career out the window, and move 3/4 of the way across the country just to buy a house.
@@eggman9713 so you can’t move. But some people can.
I agree with everything except the 15 year, especially as a first time buyer. I’m 27 and make 90k a year in a major metro in Texas. With the 25% take home rule, the most I could afford would be 1350 a month. The only places I could afford to buy are places I wouldn’t even be making the same income. Sorry Dave but the 15 year is just not an option in this market.
Just get a 30 year and pay it off as fast as you can while making sure you have that emergency fund
Sounds like you don't make enough money to live in a major metro in Texas if you want to own a home.
@@FooFan-b3k well I make more then the median household income of the area by myself so I don’t think my income is the issue…
@@danimal6687 Perhaps a median income where you live isn't enough to buy the house you would like. It sucks, but it' seems fairly common in many of the hot spots where everyone wants to live. The guy who sold his house in California for a big profit and moved to Texas might have an advantage over the locals.
Dude buy a house in BFE Texas or even better Oklahoma and rent it out. Oklahoma is CHEAP.
I have several neighbors who are now living with their kids, or the adult kids are living with them. My sister has two of her adult kids now back living with her. They're all working FT and doing everything they can. I definitely see multigenerational living making a big comeback and less stigmatized as everyone tries to ride this storm out. Hang in there!
Yep, that's me. I moved back in with my mom at age just over 2 years ago 52 after more than 30 years of living on my own without parental support (other than modest cash gifts for birthdays & Christmas). Working a low pay job and no way I can afford to rent an apartment let alone buy a house. However, I do have retirement savings, just not ready to tap it yet. I've probably got 1 more year to go before I"m in a financial position to rent my own place or to buy something.
@mysticaltyger2009 good for you! Just having retirement savings will put you so much further ahead than a lot of people right now. Your discipline will definitely pay off
@@Elizabeth_lowkeyluxuries Thanks. I've always been a frugal weirdo compared to the norm. I can't wait to leave the work force, so saving is easy for me.
Our kids never left home since the day we adopted them. Our oldest passed away when he was just 1 year old, our second one died due to diabetes during a road trip, our third one had a cancer and passed away in my arms, our last one is now a senior and have back problems that I have to carry him every now and then. After all these years, we have been so blessed to have these four legged (dogs) companions with us. Thank you for letting us share.
@j.l.salayao8055 that's the hardest part is letting them go ❤️. I'm positive they'll all be greeting us in heaven one day ❤️
We own a home, but it’s hard to do upgrades. It’s frustrating because we have constant medical bills…I mean CONSTANT. 25% of our income goes to medical. We are ALWAYS in medical debt. Medical, not cars, or college, or credit card payments. It’s so discouraging.
Medical debt is the symptom. Your poor health is the problem
@@siva47931 wow, yeah. they should just get rid of their health issues, what a novel idea
@@siva47931it could be chronic but that's some terrible insurance you'd think not even Obamacare plans would be that bad, most plans I've ever seen cap your overall spending at around $10k per year
People have all these advanced degrees and cannot think elementary thoughts. Too much debt is such a stressor.
Too much debt is a stressor, but so is getting shafted by the corrupt system that the boomers like Dave have built. The social contract is broken and housing has become unaffordable for many more people in recent years. This is the kind of trend that breeds resentment, anger, and may be the cause of actual civil unrest and conflict if it continues on the same path.
VA loans do not have the same fees for disabled veterans as for those without service-connected disabilities. Most vets have (or at least would qualify for) some level of service-connected disability. If you're a vet out there, and you aren't yet service-connected, go see your local VSO (veteran services officer), which is FREE, to get your claim going or to be re-evaluated.
Remember in 2021 they told you not to buy a home and keep renting? Now your rent is up 20%-30% and homes are up 40% and interest rates are up 100% 🤣🤣🤣🤣
“By 2030 you will own nothing and be happy” WEF
Who is “they” that told you not to invest in home?
@@TheUncommonKIBBLESmaybe you need to go watch some videos from 2021 where they tell everyone NOT to buy a home unless it is
1) a 15 yr fixed mortgage
2) less than 25% of take home income
3) have at least a 20% downpayment
4) pay more in closing costs with manual underwriting
🤣🤣🤣🤣
@@TheUncommonKIBBLESluminati and such 😂
“Pssshhh that’s just some conspiracy theory!”
@@TheUncommonKIBBLESseems like you haven’t followed Ramsey very long. People who stuck to his rules in 2021 who didn’t buy a house when they could have afforded it is definitely worse off now.
The biggest stress is living in NJ where the politicians will find every excuse to raise your property taxes based on the increase in home value, yet wages do not keep up.
I put down 9% and got out of PMI due to great credit score. Credit score is very beneficial is some cases
Whoa, I didn’t know that was an option! What’s your credit score? And did you have to ask for them to remove the PMI, or did they just “automatically” remove it based on your score?
@@voidfroze 760ish. They did it automatically. I was talking through the numbers with the mortgage lender and I asked about the PMI, and they notified me they placed me into a conventional loan rather than FHA since my credit score was good. It may have helped that I took their Home Buying course as well. but they only mentioned the credit score. Either way PMI is not mandatory and its negotiable if you do it the right way.
Weird I never thought about it but we put down 10% and didn't have to pay PMI and I never questioned it because previously I always used my VA, but I have a credit score around 810. Yes I'm that person that puts everything on credit card and pays it of every couple weeks. And I don't even have one with miles,lol guess I'm missing out
@@TheDjcarter1966 VA loan exempts you from PMI.
@@TheDjcarter1966 agreed with you. Credit works in favor of those who are smart with their cards.
I live in the DMV area a mortgage 25% of my income would be $1400 a month. There is absolutely nowhere I could live for that even with 20% down.
Factor in moving costs.
Followed the Ramsey rules for home purchase other than 15 year...could get into that....but couldn't be happier. Some people have bigger houses but we have a life lol.
Renting is now cheaper than home buying. He is right. Invest rest retire rich live rich and give back generosity
As long as you can afford your mortgage, you’ll feel richer as a homeowner
Thank you I needed to hear this, I’ve felt like a failure the last year for not being able to afford a house. I make around 320k a year and here in South Florida the housing is crazy. 500k studios.
Would y'all agree that $4800/month is pretty decent take-home pay? Because with today's interest rates and Dave's math, that'll set your budget at about $170k. What even is that today?? A 2-bedroom shack out in the country??
Yeah Dave’s advice doesn’t work in today’s environment.
That’s why most homeowners are dual income.
I have a question/comment. My current house is a conventional loan but, the first home I bought back in 2002 I used a VA loan. Near the end of this video it was said that you pay more in interest and fees by doing a VA or FHA loan. Again, my first house loan was back in 2002 and I think my interest rate was gong to be 7.6 but the VA loan dropped it to 6.8. Back then you got close to a percent discount. Has that changed? Also, back then I was shown that some fees were waved and after talking to people that bought houses around that time it seemed like I payed less than non VA home buyers. So, my question is, have things changed with VA loans or was that statement incorrect? I will also add that, to my knowledge, the VA loan is the only loan out there to where you don't pay PMI if you didn't have 20% to put down on the house so I would have to think that is a plus. I listen to and watch Dave Ramsey all the time so I was just curious if VA loans have changed or if that the comment at the end of this clip wasn't correct. Thanks!
A 15yr fixed is still out of touch Dave. If I get a $300k house and put 20%, I’d need to take home $12,400 per month to afford the mortgage with taxes and fees. That’s a $150k per year take home. How is a first time buyer supposed to do that?
Your math isn't tracking. I am getting a little over 2k a month on mortgage, you could float that with an income of 5k per month.
Dave’s plan works. I have worked the baby steps two separate occasions gotten out of debt and saved a large emergency fund.
However, I would like to ask Dave if he would ever adjust the baby steps to reflect a more current economic time. Home prices are going up very fast I believe in 10 years the average price for a home will be 750 K to $1 million. Should people Invest more than the 15% to keep up with inflation
He’s right about that once I got out of debt. My life became a lot less stressful and I feel free. The less payments you have the less you have to worry about on a monthly basis and you can focus your attention more on the things you actually want to.
The prices cannot rise infinitely, at some point the demand will just drop hard and with that, the prices will eventually fall. Nobody is earning enough to afford all these houses.
It would be nice if home prices stop increasing @@Asto508 but the prices will continue to rise not as rapid as they have but every year they will consistently get slightly higher and higher. In 10 to 12 years, the prices of homes will double not to mention more money will be printed reducing the value of that money.
Not to mention, a large portion of homes in America are currently owned by a few big corporations That buy those houses as write off
To follow the 15y 25% rule anywhere within about 100 miles of where I live, I would need an income of roughly $300k AFTER taxes. That's a standard SFH from, say, the 1960s or 70s. Likely very dated on the inside. $300k/year.
yep that's one of the areas Dave's advice is woefully out of touch on
I need an answer - my one conundrum. I have recently divorced and sold my house because I had to because of the divorce. I am now living with my partner and pay $300 a month rent towards his townhouse. I have $350,000 in the bank collecting interest at four point, 5%. But I feel very vulnerable because we are both page 67 and I do not own a house. He is not willing to work with me and move. Do I stay put? I am collecting Social Security and interest Said money please advise. Thank you at least I should buy some land, even though it will be far away from where I would rather live.
I purchased my home years ago. Put down 3 percent. Paid my house off in 14 years. Today, it's worth 700k. If I listen to this guy I would have missed that opportunity
I bought my "forever" home in 1996. I knew my kids would grow and leave but I wanted them to return to a location that contained a childhood full of happy memories. I sold that house because we wanted to be close to our grandchild and give our grandchild memories of us.
$300,000 loan at today's interest rate is a $2670 payment on a 15yr, before you even get to insurance and property tax. $10,680/mo is what he says you need, and it's over $200k/yr gross. For a house below the average house price. Dave doesn't know how to do math. He literally just doesn't know how to do math. It's no wonder he went bankrupt.
So you’re not wrong on the math, but as a Ramsey team member who is also licensed for mortgages Dave’s information is sound and mathematical. Ideally Dave would say pay cash by saving up and investing over time. Saving $1,500 a month and investing it over a period of 10 years will get you that home in cash or a very small payment. It’s difficult to convince someone to save up for that long which is why he is okay with mortgages in general. If you save up enough to bring the payments down to be in that 25% net range (difficult but doable, 25% gross wouldn’t be terrible either) you are in a great position to pay off the home early which is consistent with his baby steps and teaching.
@RonnieMate Save 1,500 a month? You believe that the everyday average person is able to save that much money a month in thie environment?
@@RonnieMate Except Dave also talks about how important homeownership is in order to "lock in" your housing expense. He says things like, "house prices are not going to come down," as a reason to buy sooner rather than later. For the record, that's financially sound advice. Saving for ten years means essentially paying off someone else's entire mortgage before you even start on your own. You're also making a lot of assumptions about investment returns over the next ten years - it's 100% plausible that stock investments lose money over the next ten years AND that home prices continue to rise. For someone whose financial philosophy is entirely built around risk aversion, that's an incredibly risky approach.
@@Undefined14 But you need to deduct rent though? if you stay in the house, means you aren't renting from someone else. Probably still be more expensive than renting, but you have equity in it, not helping someone else pay off their house.
For me I think it's just a lot of people have lifestyle creep problem. simple math would be if you see someone can live with 30k, why can't you? especially if your take home pay is more than that. and if your take home pay is 74k, live like 30k for 2 years, and you have 88k.
@@RonnieMate Average home price in the US is 495,100. average household income in the US is74,580. an average household would need a 65% down payment to buy an average house while having a 15 year fixed rate take up less than 25% of their income. that is 320,000 in net worth before you think of buying an average home. 65-74 year olds are the only age group in America with a median net worth more than 320,000, with 410,000, but having only 90,000 in investable assets and social security isn't exactly a great place to be for retirement age.
difficult and tough is an understatement for the average family.
PMI is not nearly that much IF you have good credit. I’m paying about $15/month per $100k borrowed on my mortgage.
House prices in the UK are even worse. You can expect to pay between $250,000 - $400,000 for a 1000square foot home. And average wages are only $40k. To get something that's a 15 year mortgage and 25% of you're income you're looking at a 200 square foot flat or living somewhere where there's no jobs.
I actually worked out 25% of my income as an electrician with a diploma would pay for an 8x6 brick built shed based purely on the square footage. Most average newish 3 beds around here are £500k now. Even a 1930's 3 bed semi is £425k and that's still a doer upper
I live in a village outside Coventry, the 3bed semidetached was £209k in 2019 with a 20% deposit. It’s quiet, it’s clean and the neighbours are nice.
I work in the automotive industry and it is possible.
In 2021 we had a baby and we choose to raise our little one ourselves, so my wife quit her job 3years ago.
We don’t have car payments, I fix almost everything car related or house related.
We don’t have credit cards either.
We don’t have any other loans.
We keep track of our expenses on a monthly basis and we budget for any expense.
We will go on holiday soon, a camping holiday on the beach, and probably another camping holiday in September.
It is possible to live on a single income but it’s a mindset, it’s a way of life, we don’t buy brand, we buy what we need mostly and not what we want.
I’ve recently fitted a towbar and the wiring harness by myself, plastered the house, fitted hardwood flooring, re-roofed an extension, fitted a new timing belt and water pump on one of the two cars.
It’s hard work but it is very enjoyable when you see the results.
@@Florin_Bolocan I really depends on what the single income is through to whether it's possible or not. And it's easy not not to have a car payment I bought my car over 10 years ago cash. Maintain it myself knowone ever needs a credit card. I actually took a towbar off and sold it for £70 so that was good.
Hi Chris, after pension contribution we live as described above, on about £47-48k gross per year, single income.
I’m paying alimony for my first son and I’m the sole provider for my wife and my second son.
Mortgage is £600 and will raise to about £850, no car payments (both cars are paid off), no loans, no credit cards, we plan the shopping for groceries, and more measures to make sure it’s possible.
We are boring but I would rather be boring than broke.
My mom was recently diagnosed with kidney cancer and my brother and I we will pay for her surgery (7500 euro) that is only possible because we have the emergency fund that Dave talks about.
I’m happy to help or to have a chat with you. I’m also willing to learn from others.
Thank you for your patience in reading these messages.
@@Florin_Bolocan not that unrealistic if you rented that place it would probably be more like £1500 a month and them the single income would be a struggle. £600 mortgage sound like a dream now. I think we're boring and broke. Hope your mom gets through the kidney cancer and gets back to good health. Thanks for letting me know the details. All our incomes and outgoing are different and everyone has different wants that's a good thing really.
As life progresses I find myself more and more aligned with Dave. I have no debt outside of my personal residence and a few rental properties. My financial goals now are to pay off the rental properties ASAP and then my personal residence.
Then I'll snow ball that money in to purchasing more rental real estate.
I bought a house in 2020 with 2 car loans. Now the car loans are paid off and I’m glad I didn’t wait to pay them off first before buying a house.
Just paid off my car a year early - taking that payment and paying down several credit cards. Am working to pay off the lowest balance in 6 months and then taking that payment and the old car payment and paying off the last card in 8 months after that. I pay cash now for everything - still adding to my emergency fund - if I don't have cash to buy something, I wait until I do without having to tap into savings. Dave's system works.
I don’t care I’m happy debt free with no house and running up the bag. I will buy a house when I can buy the whole thing out right
That's the only way to buy a house!
I’m a first time home buyer. If I can only choose between a 15 year fixed or a payment that is 25% of my take home pay which is most important?
My income will go up so I’m thinking 15 year fixed and just be house poor for a while.
What do you think?
I did the formula. The ONLY reason i was able to do it is because i was so lucky to find the NACA program. No closing costs, no pmi, rates fixed and always below prime.
They underwrite the mortgage... .. so no credit score needed... perfect program while doing the baby steps.
They hold you accountable in the babysteps
I couldnt have done it without an affordable mortgage----- houses are expensive enough
Me 2
Prices of houses can be brutal combined with interest rates. I have no debt, 20% down payment and dont care for a large home as long as its well built. Nearly nothing in the area I can afford. If interest rates drop to 2-3% then it would be easy to do but at 6-7% its very difficult and not worth it for me. Canada has terrible interest rate plans. Its 3 or 5 year fixed or fully variable. Very rare to get a 15 year fixed sadly.
Most people buy the house they want, not the house they can afford.
Thats the biggest issue right there
Absolutely. And that's the problem
The house they can afford doesn't exist or is in the hood. Median income is allegedly 67k a year. 1395 a month mortgage before all the add ons, according to Dave's plan. Where exactly is that again? I am master carpenter barely making more than that lately so be careful before you insult other hard working Americans. That is a thing on this page.
@@SuperEddietv Don’t insult hardworking Americans who save and sacrifice and pull it off. My husband was making 80k/yr in 2022 when we bought our $250k house, NOT in the hood and NOT in out in the country either, actually in the one of the fastest growing safest cities in Ohio. We put $75k down. It’s an ugly home, everything is old, and we are slowly saving and cash flowing the improvements over time. I have the oldest uglies home of all our peers but we’re no doubt in the best financial place and I’m a stay at home mom.
@@haley2542 I've made less than that, 3 years running and the lowest house for me and my tools is in the 400 range here in central Florida. I had 50k down for a house 5 years ago....meaningless. We've barely crawled out of the hole from the last depression in 08 and they toppled the economy again. At 58, I work harder than any crew of 4 illegals, just to do what I do and it is washing away, dipping into my down payment and by the end of the year, I will probably be into an emergency fund......at this rate. Right now, as I type, The median home price in my county is 384K, depending who you follow. It is an insult to blue collar Americans and Americans who make the median. According to Dave's plan, the mortgage for these majority of Americans is 1288.46. Where is that at? Rents top $2000 here with the average being about 2350. That is for an apartment as there are no houses available and I rent 2 warehouses on top of that to house all the tools I use. Master Craftsman is meaningless here mostly now because of illegals and penny pinching. Kudo's on the stay at home mom. Total respect for that.
I had a pipe leak the first week i moved into my house. Emergency funds are a thing for a reason!
Why would you do a 15 year mortgage? Why not 30? You can always pay more into it but you cab never pay less. If you lose you job or have an issue that prevents you from earning an income then you're much better off being able to lower that mortgage payment to the 30 year rate, otherwise paying like it is a 15 or 10 year mortgage
Exactly. For a guy that is always talking about risk how about the risk of having that payment being so much higher in an emergency.
@@darrengeorgetown6758because it guarantees you save thousands in interest over the term of the loan, which is why it also comes with the 25% rule. You can’t leave out the obvious risk management part of it.
@@smizzzy1240which is why you pay it down like a 15. If a job loss happens it's not as painful as you can then pay it as a 30 until the emergency is over. Best of both worlds
Because you save thousands in interest and the payment isn't that much higher. Also relives you of the discipline factor of having to consciously make double (or more) principal payments. It's the very same discipline trick as cutting up your credit cards. If you just know your world is going to cave in on you, then it will.
@@darrengeorgetown6758 Sounds great in theory, but in the real world nobody has the discipline to do that.
I have owned 2 homes. At age 25, I was house poor with my first home in Los Angeles, for a few years. I lived there 30 years then retired and moved to TX. I bought my current home in TX for cash. I downsized to a house twice as big with woods. That was 19 years ago. I don't know what a forever home is but I could afford it if I found it.
I bought my home in 2018 and thought I was getting shafted. My mortgage payment is about $3,000 a month. This is 30-year fixed rate and no, I don't take home $12,000 a month. Now you can't get a 30-year mortgage on a home for under $5,000 a month unless the house is unlivable/condemned and NOBODY in the middle class that I know takes home $20,000 a month. This is all with 20% down. Therefore, buying a home is no longer for the middle class. Unless you're willing to live on beans and rice for some time and accept being a slave to your mortgage for a while, pay down the principle and eventually refinance to make the payment manageable. Hell, just property taxes over here would be $1,000 a month on the low end if you divided it up that way.
This has all been planned by the World Economic Forum. In 2016 they said "You will own nothing and be happy". Of course, what they meant was THEY will be happy when we all own nothing. The situation we have in the United States is not unique. It's worse in Canada, Australia, New Zealand, and some other countries.
We bought our first home February of 2023. A 135 year old home, in a rural area for $200k. It’s big enough for future kids (we have just one now). My husband has worked remotely for his company always (going on 3 years). We are just praying that we can stay in this house for a long long time. It is the perfect amount of liveable and fixer upper.
The problem with buying a less expensive house and you have children, is that your children will almost always be going to an inferior school. At least it’s that way in Oklahoma. Now apartments are flooding our area so folks can get their kids in a good school district.
True in most places. Another reason why home schooling needs to expand. The schools are lousy even in many middle class areas. Not to mention the garbage ideology taught in many of them. (I'm gay myself but don't like a lot of what is being pushed in the schools).
Dave nailed it on the water heater will go out next week. For us, it was 3 weeks after we moved in. Thing started GUSHING water. $1,200 for a new one. Thankfully, I was already Baby Step 7 Debt Free, so I wrote the plumber a check the minute they finished work and we enjoyed our nice new water heater!
What's crazy is the heater that failed was only about 4 years old.... one year beyond the 3-year warranty. But other than that it looks nice and worked well. No evidence it was about to fail.
Totally Agree with Dave: heaven (Jesus) is my home. I am single income on a clerk salary living in California. No family. No government assistance. I bought a house away from LA and take the train to work. I lived like a broke college student and paid off the mortgage. Today, I am debt free net worth > $1 million. Anyone living in USA can do anything if you CHOOSE to get out of debt. You many not buy the house you want in the location that you want, but there's so much opportunity everywhere if you just be openminded. Since being debt free, the bank is now paying me $1000 monthly on my HYSA. I am no longer a slave to the bank paying them interest. The banks are paying ME interest!! That's why Dave preaches so strongly about being debt free. People open your eyes and listen to wise counsel. If you are in debt, you have been brainwashed by society's norm is a life of poverty and stress.
Unfortunately, waiting to get 20% down like Dave said, has cost me hundreds of thousands on house appreciation and interest cost because I missed on the low rates. Now I'm paying a 6.5% mortgage and a way more expensive house. Everything else Dave says is solid including this but the 20% was bad in these economic times.
Dave is a math guy tho take the cost of an average house monthly payment on 15 year note 20% down find out how much income it takes to buy a 400k home it's about 150k a year 10% of people make that to 90% of people can't buy a home under your rule and they shouldn't but 90%.
Re: PMI. Revist that fee each year because you do hit a point where you can drop it.
Prices have gone sky high, companies have been buying up properties that have made prices go up, wages haven’t kept up…..yet it’s the people’s fault they can’t afford a home according to Dave. Of course a real estate guy isn’t going to blame the factors that caused the increase in prices.
And we have a president who loves to spend and spend and spend driving up inflation, so the Fed had to more than double the interest rate to cool off all that spending.
@@dmoney8373 It was Trump’s spending that did it. He added 8 trillion to the deficit
German here. Our financial rule always was to have at least 1/3 of the house's total cost in cash before you get a mortgage, and of course you'll need to get a PMI in case you loose your source of income. Typical mortgages were 20-30years, fixed rate.
That was solid, reliable, and worked 99% of the time.
Since we've adopted "the American way" of living & spending way above our income, things of course have turned sour, like in the US, too. And not only in the past 3 years!
Pretty simple. You need more cash to put down now. Like, a LOT more. It will just take longer to get to whatever house you want.
Yeah, just need to put that 60% down so you can fit into a 15 year mortgage, lol
@@thedopplereffect00 EXACTLY lol
I live in Colorado where the average home cost is $550,000. I transfered to a new postion in my company that requires travel. This allowed me to look in other states for a house. I am closing on a modest house in Kansas, the mortgage payment will be 10% of my income and I can have it payed off in 10 years.
Dave is great for getting out of debt advice, but is still 2-3 decades behind in buying a home advice.
And your suggestion is ?
“If you can’t afford it, don’t buy it” is the old-fashioned out-of-style advice these days?
My father bought our first house in 1964 with 500$ down, total value maybe 10 thousand
That same house recently sold for 575 thousand
You want a house today, either make big money or save big time
The average income in 1964 was $6900.
Rent is the most you'll pay per month. Mortgage is the least you'll pay per month. If you buy a house, be financially prepared for everything that can and will go wrong.
Bingo
My rent doesn’t include utilities
@@sarah345 But presumably, it doesn't include roof repairs, boiler replacements or mending pipes.
@@pneron2032 Im just about to buy something, and the mortgage and property taxes together are cheaper than my rent plus it comes with a 1 year warranty on all that stuff. And the place I’m buying also doesn’t come with a drug dealer in my basement and windows that don’t work and will never be fixed. There’s a lot of downsides to the loss of control that, to me, are worth the cost of repairs.
@@pneron2032 and my current place charges me rental and insurance on my boiler. So that’s basically maintenance costs
I make $150k a year... we are moving. Was looking for houses. There is no inventory so prices are outrageous.
A crappy 40 year old shack on a few acres costs $400k.
15 year mortgage is $3700 a month. No friggin way am I signing up for that, for a crap hole.
I'm renting for now ($1100 month) buying land and building my own place.
Can buy a real nice 20 acres for less than $100k and spend $150k on materials for a nice house. In this screwed up market would be listed for $600k or more.
We're saving cash like crazy.
I think we'll be able to cash flow most of the build if we don't go overboard with the land purchase.
Where we live in Ontario you are looking at a million for a dump starter home no garage and NOT detached. That's what my boy's are looking at . My middle son has more then 6 figures saved and no debt..he still doesn't want to buy a dump for a million ... and tye up all his cash. He's single no kids.
Tell him to read the Millennial Revolution blog. They are Canadians who saved a ton of money and retired by moving to cheaper locales.
Bought my home in late 2008 for $196k. The bank told me I qualified for quite a bit more, but I was a "bad borrower" and didn't listen. Refied a couple times to my current 2.99%. My income from time of purchase to now is 2 1/2 times more. Had people over the years tell me I need to sell my small house and get something much larger and fancier because (according to them) I could afford it. I said no, this is my home and I love it. Small, economical and has what I need. This allowed me over the last 10 years to max my 401k and put money into other investments. I recently worked out a plan to get rid of the remaining balance of the mortgage in roughly 5yrs, becoming debt free. People today need to scale back their expectations with home buying. Stop complaining that home prices are too high. Complaining doesn't solve anything. Plenty of homes in my area for sale at or just over $200k.
One thing Ramsey will have trouble admitting is his College/House purchasing advice is in need of updating. Nothing stays the same. It’s not that he’s wrong, but he has an opportunity to really help people by considering that 20% down and 15 years is ridiculous in 2024.
He does (and always has), allowed a first-time buyer to put down less than 20%, as low as 10%. But he explains the tradeoffs.
And, just keep in mind that his advice also looked "ridiculous" in 2006-2008, but those who listened and didn't believe the "it's different this time" were rewarded with much more affordable prices within a few years.
I built a home between 2014 and 2016. I still live in it, I don't think I could afford to build the same house today between interest rates and cost of materials and labor. I probably couldn't afford to buy it if it were for sale today.
That PMI value is such a lie from him its not even funny. When I refinanced I had only about 10% equity in my home that I had originally put 5 down. Good Credit scores, another thing Ramsey doesn't believe in, highly influences your PMI. I had around 30 a month PMI with a loan balance over 200K as a result from having a 800+ credit score.
Bought my house in 2018. Each payment was a struggle. After 6 years of increasing my salary, I'm very comfortable and dont have to think twice about payments.
That said, if I didnt already have this house, I couldnt afford one now.
Interest and taxes have increased like crazy in the last 6 years where I am..