All thanks to The Almighty algorithm for accepting Graham as an obedient disciple who uploads everyday on the most relevant topics of money markets and implements the order of *Like button* - the Almighty’s loved offering 😉
Wife and I were looking at new homes and buying a home at 470k would be cheaper than staying in our 300k condo at our current interest rate. It's unreal.
I love that you speak so clearly that even when I speed up your videos to 2x, I can still understand every word you’re saying. I appreciate it so much lol thank u!
Even if the market drops, I'm almost 100% positive Graham would still be positive equity on his properties when comparing to his purchase price, and DEFINITELY when comparing to his remaining mortgage amounts.
@@GrahamStephan I'm so glad you finally became an Angel Investor - I advise/invest in several tech startups and it's a great way to make a positive impact on the world! Hope to see you soon at a Silicon Valley event haha!
@@whatta7793 If the market crashes, he may be over leveraged on debt and would have to cover using his cash rather than the rental income (assuming he could lose tenants).
My wife and I bought during the hype of covid(June)in Santa Clara county.. My wife and I are county workers so we went from the end of the line from your typical bidding war to the front line bc we had job security. We had no competition while placing our bid for the house. We were the only offer which I could not believe! It’s all about timing!
Hi Graham, I’m a 15 year old teen from Germany and I’ve been smashing the like buttons and have been a subscriber for 2 years now. I love your content and awesome advice on finances, real estate, life and more. Sending best regards from Germany😉 Stay safe guys
Millennials licking their lips, hoping to get in on some cheap real estate if it does crash... Housing is nuts in my area right now so I'm eagerly paying attention to this situation.
Lets see what happens, it's been so competitive lately - eventually, all the would-be buyers will have bought, and more inventory should come on the market to ease things up
@CashFlow 101 As I mentioned in the previous comment, I will be going into a single family home. Fix it up, rent it out in about 2-3 years, and do the same again.
@@alanwolensky Agreed I'm currently in this situation, sold my home in July, in a rental right now will buy again early next year as I'm currently negotiating a live in flip with the rental property I'm in now, the landlord wants to sell it to me, but it needs some TLC.
4:25 - take the $300K house and instantly refinance. Who would stay in that loan? (I know this defies your unstated premise, but there's a point.) I'd rather buy in a market experiencing higher interest because that will depress prices (the one thing you can't alter later by refinancing). As interest rates drop, home value rise AND you also get to refinance your initially higher interest loans to further improve your situation. Now is the worst time to buy - best time to sell. High prices driven both by availability and interest rates.
So true about San Diego. It’s a joke here. Everyone born here becomes disheartened how imposible it is to buy a house in our own land that they feel resentment and start to hate it here. Almost all of the young people I know want to move to Arizona, Texas or Las Vegas.
@Kevin Schmidt I don't know what job you work but you don't make 60% lol. More like 90% with housing prices 60% as expensive. With the money you save, you can afford to crank up the AC and fly to any beach you want on the weekends and still come out ahead. I lived in San Diego for 4 years and maybe went to the beach 20 times. Miss the nice weather though.
@Kevin Schmidt to be fair, I live far away from the beach. I live in the eastern part of SD. it’s 93 degrees every day and because it’s a decent middle class neighborhood, all homes are over 900k and my parents pay extremely high property taxes and Mello Roos fees. Without the benefit of nice weather
This is crazy to me, I recently started studying to become a real estate agent, I'm about a quarter through my online course. I've been noticing it more often now when people use real estate terms, such as Freddie Mac and Fannie Mae, aswell as someone else's video the other day, they mention HELOC's. Its weird how much Im already picking up. Very excited for the future!
I always watch Graham and MeetKevin at 2x speed, and I love that they both enunciated and explain well enough that you can still understand it all. Plus watching Graham's hand movements at 2x speed is amusing
Unfortunately, the real estate market is mostly driven by location, and supply and demand. If there is demand in an area, and not enough supply, there WILL NOT be a crash, regardless of where interest rates are, or the overall price. It’s better to just get into the market sooner than later rather than sitting on your hands and not doing anything.
I'm in the military and am currently buying in a military town due to the extremely low interests rates. Demand here has only been going up and the area has been rapidly growing. I will be able to rent my home out for 1600 a month with a total payment (including taxes, HOA, and insurance) only at 1250 a month.
@@ucmjustice2932 I was in the military. why dont you stay in the barracks? Its rent free and the chow hall is right there, I saved money that way. didnt need a car overseas, gym, bank, nco club all there
leverage is a double edged sword and real estate with a traditional mortgage is at 4x your down payment.. if you lever and it moves in your favor, you can compound at 35%+ a year such as in 2012, but if you do it incorrectly, you'll lose everything. sometimes waiting isnt such a bad idea.
Great analysis on this, I'm wrapping up closing on an LA property now that I was able to snag under asking price. If prices and/or rates do in fact drop in 2021, I'll be waiting to grab another deal that will make me some money. 2020 started out rough, but this last half of the year has been amazing for building wealth in the years to come!
Big supply issue here in Phoenix... that has caused prices to soar and locally will likely continue to soar as people flee the larger cities looking for a place like Phoenix with better taxes, cheaper real estate, plenty of jobs, and less bureaucracy.
Graham, I want to give my thanks and appreciation. For the first time in my life, I've been following a plan to be free of consumer debt by the end of next month. I'll be building a substantial emergency fund for the first time in my life, and I'll start investing in index funds to secure my future. Nothing but gratitude and good fortune for you!
Im a realtor, and that explanation with the data points is more concise and clearer than ony other real estate guru I've heard before, in a good long while.
Phoenix real estate is getting crazy expensive! My landlord was asking a 60% increase when my year-lease was up in central phoenix this past spring. Luckily was moving out of state so I didn't have to go through with that increase!
Yup in my zip code in Phoenix you can't get any house whatsoever for under 500K and I paid $390 for 4,000 sqft good neighborhood, perfect condition in 2011. Mine now worth north of 800K
Not sure if you'll even see this, but thanks for the content you make Graham. As the oldest of 8 coming from a cycle of poverty & debt, it's really helpful to have all the info you put out. I use your videos to try and teach my siblings about financial literacy and independence; and my 17 y/o sister is talking about starting a Roth IRA because of it. I'm 27 and wish I had the info I have now when I was her age, but it's helping me build a better future for my family.
I was there to see the opposite. When Paul Volcker raised interest rates to combat inflation in the early 1980's. You could buy buy property at a large discount if you could pay cash. Remember that for 30 years from now when interest rates are sky high. Have cash.
Yes but that could be a long time you're losing more money in interest when you could immediately be saving more. But on the flipside when you refinance later the 300k house might go up in value where as the 450k house is already pretty pricey might not go up more in value. If the 300k house goes up in value you've gained equity just by owning it... and may get a lower interest rate eventually.
Graham, I love your videos and wanted to suggest you maybe doing a rags to riches series where you do a story time (or interview) about some well known and non-well known successful people that have worked their way up by being smart with their money. I think it’d be so inspiring and a really positive thing to showcase in contrast (but not instead of) to the housing/stock market collapse.
I sold my investment apartment. Had to drop the price as well. Still grateful to get rid of it. Renting an apartment out is such a pain these days. Tenants ruin everything.
It's booming here in the UK because of government incentives 🙄 It's very worrying that people might buy at the wrong time and end up in negative equity! 😬
It's relatively safe because the banks pulled out the 95% and 90% LTV mortgages. So only if the market drops like 20% , they will end up in that situation. Also Keep in mind not all towns in UK have reached the 2006-07 peak price but the wages have gone up in that period, so houses in some areas are already undervalued.
As a potential buyer next year, I'm ready for that drop lol but I do hope sellers still make a profit off sales, real estate means a lot to a lot of people.
Was going to buy earlier this year but due to the insanity I held off. I'm waiting for things to either drop or things to settle. whichever comes first. I know homes are way overvalued right now. In the meantime I'm investing into my own business and some long term stock market buys. Thanks for all the information Graham
What’s happens if banks stop lending cause there is a banking crisis. You missed the elephant in the room. What’s your 1 million dollar house worth without a 30 year mortgage at 2%? Significantly less than you might think.
The prey on people who don't understand the tech to charge them a bunch of fees. Maybe even scam them into thinking they lost money due to bad luck as people who invest in crypto without understanding are just gambling anyways. At least that's how I suspect these scammers are getting the money
While I think crypto is legit (the legit projects and big coins like BTC & ETH) It's totally new so new people can't distinguish between real & fake if they never really went to read & look into it So I don't know which comments exactly you mean but I often see the fake comments that start normal but end: "That shouldn't be a problem to you if you've heard about a professional like Mr Manuel grey, he's really the best i can speak of so far.." This professional, xyz name, number xyz, facebook, telegram etc. They basically just want you to send them money OR buy crypto and then send them the crypto you just bought so they can "manage" it (e.g. run away with your money) Or they are paid groups: You pay them money regularly to get into a group that should tell you when to buy or sell (total BS, because they already earn money from members so they don't have to care if you lose or win) TL;DR It's still new and most people don't know more about it than once reading about it in the newspaper So it's easy to scam them
I have pivoted myself. Out of our 9 investment properties we sold off the 4 that were performing the worst. Used half of that money to pay off all debts except debt on our primary which we refied from a 15 year to a 10 year. The other half we put in the back for if/when either stocks or real estate comes back to normalcy in which case we go shopping. However if we are wrong it is okay we still have 5 rental units with 3k a month cashflow once we have the final one rented out. With no debts on them...
Same experience in NZ, a combination of low interest rates, low deposit rates, inflated stock prices, low number of listings , lack of land and expensive build costs - and high demand caused by immigration (kiwi's returning home) all make for a very powerful push upwards on prices. All the indicators are full on for price rises - never in our history has it been so.
Bigtruckseriesreview Motorsports not really. Foreigners coming in, and many locals are leaving because of high prices of living. So it’s really the other way around.
This never happened in my area. Prices are almost 10% or higher this month and its ridiculous, homes are going 10k over asking because its a sellers market and its terrible. Ive lost 4 houses already because of 7+ bids on a home. I even went after a HUD home that needed way to much work with no luck.
Perfect summary! Perfect. I’m a Real Estate agent in GA. This is the type of information clients need. Short, clear, and accurate. I would love to share this with clients but the “smashing the like button” type humor is not very conducive for that use. I know I have the ability to remake the video to make it more shareable in that setting...but I hate the idea of being a complete rip off. Have you ever considered tailoring/editing some of your content for different audiences?
I remember my Relator from 2006 was sending me emails about her Tuberware parties in 2010. She also spammed asking if I had any gold jewelry I wanted to sell. Hope you are saving your commissions.
Please don't move to Texas. I'm trying to buy a 🏠. These bidding wars out here are crazy right now. Houses selling in less than a week from being listed.
I was thinking of moving to Texas cause it checks all my boxes but I just feel like it's going to be the new CA in 5-10 years you have illegals coming from the south and liberals fleeing from all over the country.
@@endlessslumber441 I would agree just looking at Austin. It's rapidly becoming unaffordable to live there in comparison to the rest of the state and there is an emerging homeless problem. I used to love that city but it doesn't resemble what it was just 3 years ago.
Whats funny is here in vegas during the peak of covid half the city wasnt working , the strip was closed no one was there , houses prices went up new builds popped up all over the city , and still going And i couldnt qualify for a house
When everyone jumps into the pool the water level rises to the point where it overflows. But when they all leave the water level drops significantly. The same applies to stocks and real estate
After 10 years, the $300k house at 6% will have $243k remaining principal balance. The identical but more expensive home will carry a balance of $314k in 2030. So while Graham’s argument is valid if you paid the loan to maturity (due to a pre-payment penalty perhaps) - if you refinance or sell the property within 27 years, the identical, less expensive home is a savvier choice. Really inspired by your work ethic Graham, keep it up! Great video, I’m just nitpicking :)
Here''s the thing, if people are getting into bidding wars to buy houses, they're practically begging to go underwater when home values normalize. There's good advice here but it's all made under the assumption that homeowners have enough equity. The people who snapped up homes after the last housing crash will have equity but the people likely to be watching this video won't.
Signed up for Morning Brew two weeks ago (because of Graham) and now everything Graham says is old news.... but I keep watching because he's so darn entertaining.
One thing to note is that it isn't just people not wanting to sell their houses because of COVID that is going to keep inventory low. Right now we are in the middle of a massive labor shortage for trade skills as well as a massive lumber shortage. Prices for a 2x4 have gone from a couple bucks to 6, 8, and as high as 10 dollars. This will slow down and delay the starts of new construction which in turn keeps supply down. Once lumber shortages are resolved you are still going to have a big lag in getting construction completed because there simply won't be enough people with the skills to do the construction.
Mulan is one of those films I won't watch even if I'm paid to do so 🤠 Anyway, always appreciate the timely breakdown! I suppose it's pretty reassuring for homeowners and real estate investors for the most part! It would be wise to keep a close eye on the local markets!
Thanks for the great videos, but i have a request for a future video: The top 10 most important "things" to start a business ( generally for any business) - How important is a financial planner/accountant. Given your business experience, i think this would be a great video.
Gram: The world is going to end !!! Me: “ clicks on video” Gram: Smash the like button, the world probably isn’t going to end; but it could, but probably not. Then end
No kidding, this dude has been predicting the end of the world every day for at least 2 years, particularly when there are big stock market movements. It's all click bait
All time highs, Millions of people can't afford to pay. Either those folks come up with cash after foreberance ends or there will be a drop. Maybe their rich uncle's will die.
Liking the new music you're using during the little quibs that you always put in. Lovin the vids as always, and where is your glass of 20 cent iced coffee?
0% is a cool goal. In France we get below 1% interest rate (for a 20y fixed rate mortgage) when we borrow money (i did, anyway). But keep in mind that the lower the rate, the higher the price. So only buy stuff that is 30% marked down, because that's what's gonna happen soon. 30% drop. This kind of thing only happens when the system knows that the prices are about to drop without help.
I'm waiting to close on a house I'm selling. The buyers offered over asking and are paying to have the furnace replaced. Our jaws dropped when they said they would replace the furnace!
Here in Boise, Idaho, we are in the middle of HUGE housing shortage. Not enough rentals, not enough houses for sale, more and more and more people moving here. I don't think we're at risk of a downturn here. At worst, the prices might stop climbing so fast.
Waiting, waiting, waiting. Some day I’ll be able to buy a house. In the meantime, hoping my stock portfolio growth outpaces real estate market appreciation so I can reach the down payment I need.
He pretty much told you prices are not going to drop because 1) low interest rate, 2) low inventory, 3) homeowners have equity so they will sell if needed. Millennials are getting older and they are buying. In addition, a home is more important than ever. RE is not like the stock market. It is stable and over time, it goes up in value.
Graham some food for thought , what increases inflation is lending not interest rates. Just check this out: if interest rates are low, retail banks implement tighter lending conditions, higher risk, lower return, less lending.. With less lending the monetary system contracts and this is deflationary not inflationary. On the other hand if interest rates are high, retail banks naturally run more risks because the benefit is higher and this leads to an increase in lending, meaning that the monetary system expands leading to inflation. Thanks for the amazing content.
Looking to buy my first house and someone has FINALLY been able to explain what the heck is going on in the housing market when I thought it would be quite different when I began my search...hardly any houses and they are gone within hours of being posted for sale! I was worried about paying more for a house because of it, but I will revel in the low interest rate I've been approved for!
Why not go into crypto it’d tend to rise and fall, but still depends on which your investing in whether bitcoin, ethereum or even those little crypto they will tend to have a high a value as the year goes by
Bitcoin has a high rate, unless you talking about trading with it. Like not buying and keeping it in your wallet and waiting for it to inflate...1btc equals about 13,105$...só unless you intend trading with it friend, you can earn from it. Or you got cash to buy in large quantity and sell again
Hey @@GrahamStephan I'm 11 and for last Christmas when I was asked what I wanted I said 100 bucks in the stock market (I get what I make in cash for those wondering)
Hey Graham, I am experiencing a very different situation here in Montana. The housing market is BOOMING and people, from the West Coast especially, are buying up homes here, very often not only paying more than the majorly inflated asking prices, but buying sight unseen with NO CONTINGENCIES! It is INSANE! I am in the process of buying the home I have been renting for the past 3 years, mainly because if I don't, I will soon not be able to afford a home in this area. Also, there are hardly ANY RENTALS here available! I mean like zero! So, if I did not buy this house, I really would have no place to live. I would have to move out of state or to Eastern MT, which is not a place I wan't to live. So, this house I am buying is now $80,000 higher than it would have sold for this past January. Thanks for another great video!
I been a realtor for over 53 years and this is disaster on the way. I had banks accept 30 or 40 % of their mortgage losses just to get out of properties. My clients were bottomless pockets for deals.
@@claudiagarciacabrera-prant6251 Big Investors currently are buying by getting bank lists published weekly on foreclosure at their bank which legally has to get their money back if they can. In both cities South Beach FL> and Houston Galleria I would look at the condo or home or hotel and then offer the bank what I wanted to pay. Example a 300,000 condo sale price mortgage 210,000 default I look at unit see it needs 20,000 update for kitchen 10,000 painting and I then may offer the bank not the 210 they ask but 120,000. many times they then say 160,000 I go up to 140 and they agree. They write loss off in taxes anyway. This next 6 months should bring so many that they happy with 35% to 45 % of the price and glad to get out. ZZEven at 50% you get a great investment.
You’ve been growing like crazy man last time I seen your sub count you were at 250k congrats you deserve it !!
Appreciate it!! :) it's been growing like crazy lately!
All thanks to The Almighty algorithm for accepting Graham as an obedient disciple who uploads everyday on the most relevant topics of money markets and implements the order of *Like button* - the Almighty’s loved offering 😉
Congratulations!
I know 🧚🏼 legit so proud of him!! I’ve been a subscriber for about 2ish years now ☀️✨🏝 his stage presentation and editing is tops 🤗
Alexa Kiss He’s great 👍🏻
Can we just appreciate that Graham never “under-does” the thumbnails.
I always give it a 10/10 effort!
Wife and I were looking at new homes and buying a home at 470k would be cheaper than staying in our 300k condo at our current interest rate. It's unreal.
Why not refinance?
@@HenryPaulThe3rd good question
Is it taking in consideration taxes and house insurance?
Roe Jogan Roe????
Joe Rogan Ah, my old nemesis. Knew I’d run into you in the comments eventually
I love that you speak so clearly that even when I speed up your videos to 2x, I can still understand every word you’re saying. I appreciate it so much lol thank u!
I do the saaaaame :D
We can’t sit around and be worried about a fall of the markets every year! We just need to move forward
Whut people have been saying that we are going to have another crash even during the middle of the last crash.
I hope so I can finally get a home 🙏🏻🙏🏻🙏🏻🙏🏻🙏🏻🙏🏻🙏🏻 if there is a crash
Kevin O'Leary warned you about keeping your net worth in real estate ... Yotta diversify into other asset classes! 😂
YOTTA START A VC FIRM
Haha, clever ;)
Even if the market drops, I'm almost 100% positive Graham would still be positive equity on his properties when comparing to his purchase price, and DEFINITELY when comparing to his remaining mortgage amounts.
@@GrahamStephan I'm so glad you finally became an Angel Investor - I advise/invest in several tech startups and it's a great way to make a positive impact on the world! Hope to see you soon at a Silicon Valley event haha!
@@whatta7793 If the market crashes, he may be over leveraged on debt and would have to cover using his cash rather than the rental income (assuming he could lose tenants).
First I have to shave.. now this wtf
No!!! The beard looks nice on you!
I won't stop commenting until you shave your eyebrows next
.... here I am thinking people will forget 🤦🏻♂️
eyebrows are next
Ungag me on your channel
Kevin.. don’t get mad cause I call out your liberal poo
My wife and I bought during the hype of covid(June)in Santa Clara county.. My wife and I are county workers so we went from the end of the line from your typical bidding war to the front line bc we had job security. We had no competition while placing our bid for the house. We were the only offer which I could not believe! It’s all about timing!
I love Morning Brew! Simple, funny, and to the point on great news. Thanks for turning me on to them!
My house value has gone up 50% in 4 years. I am cashing out
Home equity loan and buy a duplex.
@@koolier6338 , hmm... then you'll have TWO asset fluctuations compounding during the next cycle.
Hi Graham, I’m a 15 year old teen from
Germany and I’ve been smashing the like buttons and have been a subscriber for 2 years now. I love your content and awesome advice on finances, real estate, life and more.
Sending best regards from Germany😉
Stay safe guys
Ah thanks so much! That means a lot to hear!
Graham Stephan to read not to hear
At 15 with this baseline knowledge you’re going to be crushing it soon!
Graham videos in 10 years: *drinking 20 cent iced coffee on my 100 million dollar yacht*
He would never be able to by a 1 million dollar yacht just on principal! I don’t think he would even enjoy it!
I could see MAYBE a nice piece of art...but a big yacht? The overhead is crazyyyy expensive.
@@GrahamStephan screw the piece of art, i wanna see that fish tank wall haha
... on one of his new rich friends yachts
@@GrahamStephan And art appreciates.
Millennials licking their lips, hoping to get in on some cheap real estate if it does crash...
Housing is nuts in my area right now so I'm eagerly paying attention to this situation.
Lets see what happens, it's been so competitive lately - eventually, all the would-be buyers will have bought, and more inventory should come on the market to ease things up
Graham Stephan makes sense! Appreciate your insight.
😂 Gen Z already ahead of the game
MLM -Millennial Lives Matter too
I went viral in 2016 for saying this in the news lol... I gave it waiting for it... I found a better way...
Prices increased DRAMATICALLY in under a year, and my wife and I are getting out while the prices are hot.
Agreed, this last year has been crazy
@CashFlow 101 As I mentioned in the previous comment, I will be going into a single family home. Fix it up, rent it out in about 2-3 years, and do the same again.
Alan Wolensky II ur better off selling and renting and waiting a year or two.
@@alanwolensky Agreed I'm currently in this situation, sold my home in July, in a rental right now will buy again early next year as I'm currently negotiating a live in flip with the rental property I'm in now, the landlord wants to sell it to me, but it needs some TLC.
@@ruanorafa but what if prices continue to climb? Then he is screwed
There's always a loose, loose situation in real estate. When houses are down, interest rates are high. When houses are high, interest rates are low.
Which would you recommend for a first time home buyer?
4:25 - take the $300K house and instantly refinance. Who would stay in that loan? (I know this defies your unstated premise, but there's a point.) I'd rather buy in a market experiencing higher interest because that will depress prices (the one thing you can't alter later by refinancing). As interest rates drop, home value rise AND you also get to refinance your initially higher interest loans to further improve your situation. Now is the worst time to buy - best time to sell. High prices driven both by availability and interest rates.
So true about San Diego. It’s a joke here. Everyone born here becomes disheartened how imposible it is to buy a house in our own land that they feel resentment and start to hate it here. Almost all of the young people I know want to move to Arizona, Texas or Las Vegas.
@Kevin Schmidt I don't know what job you work but you don't make 60% lol. More like 90% with housing prices 60% as expensive. With the money you save, you can afford to crank up the AC and fly to any beach you want on the weekends and still come out ahead. I lived in San Diego for 4 years and maybe went to the beach 20 times. Miss the nice weather though.
COme to Vegas!! I love what Cali peeps are doing to my property value!!
David yang the damage is already done! This is the start of the next rise in real estate for areas Cali peeps are leaving for!
Lmao! No all my renters are paying in full and on time. I’ll be buying foreclosures and just making my pockets deeper!
@Kevin Schmidt to be fair, I live far away from the beach. I live in the eastern part of SD. it’s 93 degrees every day and because it’s a decent middle class neighborhood, all homes are over 900k and my parents pay extremely high property taxes and Mello Roos fees. Without the benefit of nice weather
Graham: Uploads a video
Everyone: *hippity hoppity the comment section is my property*
everyone gets first ;)
Too bad property values are dropping! ;)
🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣
Laughing is contagious
Crypto trading is a very lucrative way of making money online now.
This is crazy to me, I recently started studying to become a real estate agent, I'm about a quarter through my online course. I've been noticing it more often now when people use real estate terms, such as Freddie Mac and Fannie Mae, aswell as someone else's video the other day, they mention HELOC's. Its weird how much Im already picking up. Very excited for the future!
I always watch Graham and MeetKevin at 2x speed, and I love that they both enunciated and explain well enough that you can still understand it all. Plus watching Graham's hand movements at 2x speed is amusing
Unfortunately, the real estate market is mostly driven by location, and supply and demand. If there is demand in an area, and not enough supply, there WILL NOT be a crash, regardless of where interest rates are, or the overall price. It’s better to just get into the market sooner than later rather than sitting on your hands and not doing anything.
why is it 'unfortunate'? is there a better way that real estate should be driven? but I agree w you that its best to get in early
I'm in the military and am currently buying in a military town due to the extremely low interests rates. Demand here has only been going up and the area has been rapidly growing. I will be able to rent my home out for 1600 a month with a total payment (including taxes, HOA, and insurance) only at 1250 a month.
@@ucmjustice2932 I was in the military. why dont you stay in the barracks? Its rent free and the chow hall is right there, I saved money that way. didnt need a car overseas, gym, bank, nco club all there
leverage is a double edged sword and real estate with a traditional mortgage is at 4x your down payment.. if you lever and it moves in your favor, you can compound at 35%+ a year such as in 2012, but if you do it incorrectly, you'll lose everything. sometimes waiting isnt such a bad idea.
@@6955beniegn I'm married and have been renting for the past few years.
I made sure to like the video before hearing anything as I assumed it would be mandatory.
hah thanks :)
Read your comment and did the same.😅
So annoying.
I do the same every video💯💯
hahaha! How many ways can a man ask you to smash that button...
Great analysis on this, I'm wrapping up closing on an LA property now that I was able to snag under asking price. If prices and/or rates do in fact drop in 2021, I'll be waiting to grab another deal that will make me some money. 2020 started out rough, but this last half of the year has been amazing for building wealth in the years to come!
Big supply issue here in Phoenix... that has caused prices to soar and locally will likely continue to soar as people flee the larger cities looking for a place like Phoenix with better taxes, cheaper real estate, plenty of jobs, and less bureaucracy.
Agreed - Phoenix is on the top of my list!
I appreciate you writing out the entire content info in the info box! I skip the video and just go straight to reading.
“Toilet paper just happened to houses.” - Graham Stephan 2020
20 cent iced coffee is turning his brain into Mush maybe he should've went to Starbucks xd
Crypto trading is a very lucrative of making money online at the moment
I've got this little interest in Bitcoin maybe I'll give it a try
Well with the crypto currency market favourable as it's Investing now wouldn't be a bad choice tho.
Remember some precious metals.
Graham, I want to give my thanks and appreciation. For the first time in my life, I've been following a plan to be free of consumer debt by the end of next month. I'll be building a substantial emergency fund for the first time in my life, and I'll start investing in index funds to secure my future. Nothing but gratitude and good fortune for you!
well done!! so happy to help!!
I’ve owned and invested in real estate for 21 yrs, this all non sense, buy good deals, have equity in deals, your fine.
Please can you tell me house prices going down next year or not
Jamil Hasan he just said no
Graham: real estate is about to crash
Me: can’t wait to deploy my cash and make a lot of money 😃😄
NICEEEE
Yeah😁
Reserves looking like a snaccccc
Foundations Of Knowledge. Maybe in 2 years. Not anytime soon as long as government keeps intervening.
David H true
Low interest is the time to get in, it will stay like that for years. Thanks for sharing!
Im a realtor, and that explanation with the data points is more concise and clearer than ony other real estate guru I've heard before, in a good long while.
hes got good energy like breathe of fresh air
Phoenix real estate is getting crazy expensive! My landlord was asking a 60% increase when my year-lease was up in central phoenix this past spring. Luckily was moving out of state so I didn't have to go through with that increase!
Yup in my zip code in Phoenix you can't get any house whatsoever for under 500K and I paid $390 for 4,000 sqft good neighborhood, perfect condition in 2011. Mine now worth north of 800K
I don’t see this as something that could be sustainable but we’ll see how it turns out
Not sure if you'll even see this, but thanks for the content you make Graham. As the oldest of 8 coming from a cycle of poverty & debt, it's really helpful to have all the info you put out. I use your videos to try and teach my siblings about financial literacy and independence; and my 17 y/o sister is talking about starting a Roth IRA because of it. I'm 27 and wish I had the info I have now when I was her age, but it's helping me build a better future for my family.
I was there to see the opposite. When Paul Volcker raised interest rates to combat inflation in the early 1980's. You could buy buy property at a large discount if you could pay cash. Remember that for 30 years from now when interest rates are sky high. Have cash.
Damn, i thought Graham finally got sponsored by a coffee brand but it was just a newsletter. Smash like for Graham to get free coffee.
I did one coffee company in the past, they were really good!
Graham Stephan what was the name of the coffee company, please?
@@GrahamStephan oh! Must have missed that. That's a tick off the bucket list.
"TOILET PAPER JUST HAPPENED TO HOUSES!" I NEED A T SHIRT WITH THAT ON IT! 🤣 LMAO
Even you buy the $300, with higher rate it’s better in my opinion since interest rate can go down later again !
Yes but that could be a long time you're losing more money in interest when you could immediately be saving more. But on the flipside when you refinance later the 300k house might go up in value where as the 450k house is already pretty pricey might not go up more in value. If the 300k house goes up in value you've gained equity just by owning it... and may get a lower interest rate eventually.
Graham, I love your videos and wanted to suggest you maybe doing a rags to riches series where you do a story time (or interview) about some well known and non-well known successful people that have worked their way up by being smart with their money. I think it’d be so inspiring and a really positive thing to showcase in contrast (but not instead of) to the housing/stock market collapse.
I sold my investment apartment. Had to drop the price as well. Still grateful to get rid of it. Renting an apartment out is such a pain these days. Tenants ruin everything.
What happened? Can you tell me your experience I have been thinking about doing this
It's booming here in the UK because of government incentives 🙄 It's very worrying that people might buy at the wrong time and end up in negative equity! 😬
yikes :O
Bahahahaha that will be hilarious!!!!
Same in the US with low interest rates. Seems crazy to buy now.
It is a guarantee they will.
It's relatively safe because the banks pulled out the 95% and 90% LTV mortgages. So only if the market drops like 20% , they will end up in that situation. Also Keep in mind not all towns in UK have reached the 2006-07 peak price but the wages have gone up in that period, so houses in some areas are already undervalued.
As a potential buyer next year, I'm ready for that drop lol but I do hope sellers still make a profit off sales, real estate means a lot to a lot of people.
Oh shut up! It's up 9% just this year honestly the most it would drop is 5%
Watching “Selling Sunset” on Netflix and I’m like... Graham Stephan!!!
There is a MASSIVE house shortage. Most superb towns in Massachusetts have has than two houses total for sale on Zillow. It’s insane
Same as NH. Crazy RE market.
Real estate is crazy here in Arizona
Was going to buy earlier this year but due to the insanity I held off. I'm waiting for things to either drop or things to settle. whichever comes first. I know homes are way overvalued right now. In the meantime I'm investing into my own business and some long term stock market buys. Thanks for all the information Graham
Smash the like button so Meet Kevin can shave his eyebrows
smashed!!
Smashed for the algorithm...and also for the eyebrows thing 😝
Looool
Are you sure? Or you are just joking? Whole bunch of people and I just smash the like button!
We will see if you are trustworthy or not, haha.
What’s happens if banks stop lending cause there is a banking crisis. You missed the elephant in the room.
What’s your 1 million dollar house worth without a 30 year mortgage at 2%? Significantly less than you might think.
real estate in my area is literally sky rocketing
yep! so many areas are going nuts!
I really appreciate all your videos. Thank you for all of your knowledge and research to make us viewers more informed.
I had to pause the video to laugh "meteor hits earth; real estate prices soar"
Is there some kind of crypto MLM/pyramid scheme going on? What’s up with all these bot-like “invest in crypto” comments?
The prey on people who don't understand the tech to charge them a bunch of fees. Maybe even scam them into thinking they lost money due to bad luck as people who invest in crypto without understanding are just gambling anyways. At least that's how I suspect these scammers are getting the money
While I think crypto is legit (the legit projects and big coins like BTC & ETH)
It's totally new so new people can't distinguish between real & fake if they never really went to read & look into it
So I don't know which comments exactly you mean but I often see the fake comments that start normal but end:
"That shouldn't be a problem to you if you've heard about a professional like Mr Manuel grey, he's really the best i can speak of so far.."
This professional, xyz name, number xyz, facebook, telegram etc.
They basically just want you to send them money OR buy crypto and then send them the crypto you just bought so they can "manage" it (e.g. run away with your money)
Or they are paid groups: You pay them money regularly to get into a group that should tell you when to buy or sell (total BS, because they already earn money from members so they don't have to care if you lose or win)
TL;DR
It's still new and most people don't know more about it than once reading about it in the newspaper
So it's easy to scam them
Its a fucking bubble!
@@chrism3933 Thank you!
I “smashed” the like button because he pitched it so well. I couldn’t say no
I was reading your comment the exact same time he pitched it! Lol made it even better
I have pivoted myself. Out of our 9 investment properties we sold off the 4 that were performing the worst. Used half of that money to pay off all debts except debt on our primary which we refied from a 15 year to a 10 year.
The other half we put in the back for if/when either stocks or real estate comes back to normalcy in which case we go shopping.
However if we are wrong it is okay we still have 5 rental units with 3k a month cashflow once we have the final one rented out. With no debts on them...
The way you combine the content is nice bro .. I never skipped a bit
so everyone at the same time just said "let's go TP the entire housing market"
hah!
if everyone panic sells we gonna have a shitty situation 💩
A 4% interest rate difference is huge, the real difference is more like 1.5% in the market today.
*I'm going to wait and see what the market does within the next year or two before looking at buying.*
Same experience in NZ, a combination of low interest rates, low deposit rates, inflated stock prices, low number of listings , lack of land and expensive build costs - and high demand caused by immigration (kiwi's returning home) all make for a very powerful push upwards on prices. All the indicators are full on for price rises - never in our history has it been so.
I loveeee morning brew so much!! I’ve been reading their newsletter for over a year now!
I just closed today on a townhouse. 😁
Congrats! Investment or house hack?
We close 23rd at 2.375 %
@@AntwanAhmed Just for me to live in. 2 beds 2 baths. Tired of renting, you know. hehe
Congrats. It’ll be worth Double x2 in 10-15 years. You beat the market.
Congratulations!
I don’t think Hawai’i real estate prices are ever going down.
Bigtruckseriesreview Motorsports not really. Foreigners coming in, and many locals are leaving because of high prices of living. So it’s really the other way around.
I saw a house for 450 k but it needs work
Although you can buy a house in Hawaii, you can never buy the land under the house UNLESS you are a native Hawiian.
Rick J that’s not true
The houses get cheaper but the land does not. Since the house is worth almost nothing compared to the land yeah I think you are right.
“But Graham! What happens when government printing currency stops and businesses have to let go of a few % of their team”
As long as u buy something u can afford u are a winner. Prices may go down or up but what is expensive for one isn't expensive for another one!
This never happened in my area. Prices are almost 10% or higher this month and its ridiculous, homes are going 10k over asking because its a sellers market and its terrible. Ive lost 4 houses already because of 7+ bids on a home. I even went after a HUD home that needed way to much work with no luck.
Graham, work magic in your crystal ball and make this hold out! I have to list a property in the next week 😩
Good timing now for sellers!
I’ll buy it!
Where are you located?
@@GrahamStephan good to hear!
@@PlateInStock the property is in Atlanta, GA!
Perfect summary! Perfect.
I’m a Real Estate agent in GA. This is the type of information clients need. Short, clear, and accurate. I would love to share this with clients but the “smashing the like button” type humor is not very conducive for that use. I know I have the ability to remake the video to make it more shareable in that setting...but I hate the idea of being a complete rip off. Have you ever considered tailoring/editing some of your content for different audiences?
I remember my Relator from 2006 was sending me emails about her Tuberware parties in 2010. She also spammed asking if I had any gold jewelry I wanted to sell. Hope you are saving your commissions.
Paul Clinton I appreciate the support man! Being that you no longer have an agent....Happy to help you in any way that I can.
Please don't move to Texas. I'm trying to buy a 🏠. These bidding wars out here are crazy right now. Houses selling in less than a week from being listed.
I live in Texas too. What's happening here is crazy.
We are on the same boat!
I was thinking of moving to Texas cause it checks all my boxes but I just feel like it's going to be the new CA in 5-10 years you have illegals coming from the south and liberals fleeing from all over the country.
@@endlessslumber441 I would agree just looking at Austin. It's rapidly becoming unaffordable to live there in comparison to the rest of the state and there is an emerging homeless problem. I used to love that city but it doesn't resemble what it was just 3 years ago.
Whats funny is here in vegas during the peak of covid half the city wasnt working , the strip was closed no one was there , houses prices went up new builds popped up all over the city , and still going
And i couldnt qualify for a house
When everyone jumps into the pool the water level rises to the point where it overflows. But when they all leave the water level drops significantly. The same applies to stocks and real estate
yep!
Graham: Drops a new video
Me who happened to arrive early: *Pretends to have watched the full video already*
:P
LOL 😂 so you’re the “first” guy
After 10 years, the $300k house at 6% will have $243k remaining principal balance. The identical but more expensive home will carry a balance of $314k in 2030. So while Graham’s argument is valid if you paid the loan to maturity (due to a pre-payment penalty perhaps) - if you refinance or sell the property within 27 years, the identical, less expensive home is a savvier choice.
Really inspired by your work ethic Graham, keep it up! Great video, I’m just nitpicking :)
Except, you will likely be able to refi the 6 percent down at some point.
Here''s the thing, if people are getting into bidding wars to buy houses, they're practically begging to go underwater when home values normalize. There's good advice here but it's all made under the assumption that homeowners have enough equity. The people who snapped up homes after the last housing crash will have equity but the people likely to be watching this video won't.
Signed up for Morning Brew two weeks ago (because of Graham) and now everything Graham says is old news.... but I keep watching because he's so darn entertaining.
One thing to note is that it isn't just people not wanting to sell their houses because of COVID that is going to keep inventory low. Right now we are in the middle of a massive labor shortage for trade skills as well as a massive lumber shortage. Prices for a 2x4 have gone from a couple bucks to 6, 8, and as high as 10 dollars. This will slow down and delay the starts of new construction which in turn keeps supply down. Once lumber shortages are resolved you are still going to have a big lag in getting construction completed because there simply won't be enough people with the skills to do the construction.
I didn’t get an ad before the video... how will graham pay for his 20 cent iced coffee!!!
OH NO
Mulan is one of those films I won't watch even if I'm paid to do so 🤠 Anyway, always appreciate the timely breakdown! I suppose it's pretty reassuring for homeowners and real estate investors for the most part! It would be wise to keep a close eye on the local markets!
Impossible, lumber costs has skyrocketed recently. Inventory at a all time low.
Multifamily residences are going up like crazy, which is why lumber is probably skyrocketing.
Thanks for the great videos, but i have a request for a future video: The top 10 most important "things" to start a business ( generally for any business) - How important is a financial planner/accountant. Given your business experience, i think this would be a great video.
Just got outbid on a house (had 13 offers) by over 20K listing price, waived contingencies, and 21 days to close. Real estate in NorCal is intense.
wowwww
oh wow, I'm early! hi, I saw u in selling sunset in Netflix
hey thanks!! good eye!
How did I not notice this? Which season and episode? Great show 👍
Gram: The world is going to end !!!
Me: “ clicks on video”
Gram: Smash the like button, the world probably isn’t going to end; but it could, but probably not. Then end
No kidding, this dude has been predicting the end of the world every day for at least 2 years, particularly when there are big stock market movements. It's all click bait
would you have clicked if the title was "housing prices will probably be fine".
So what you're saying is, " it's a great time to buy". Heard that in 2005.
All time highs, Millions of people can't afford to pay. Either those folks come up with cash after foreberance ends or there will be a drop. Maybe their rich uncle's will die.
@@paulclinton6414 Or... they will extend the forbearance and the bubble will continue.
Liking the new music you're using during the little quibs that you always put in. Lovin the vids as always, and where is your glass of 20 cent iced coffee?
0% is a cool goal. In France we get below 1% interest rate (for a 20y fixed rate mortgage) when we borrow money (i did, anyway). But keep in mind that the lower the rate, the higher the price. So only buy stuff that is 30% marked down, because that's what's gonna happen soon. 30% drop. This kind of thing only happens when the system knows that the prices are about to drop without help.
i was surprised 42% of homes are owned free and clear, would have expected it to be much less, thanks for another great video Graham!
thanks!! me, too - but a lot of real estate was bought a long time ago and paid off!
Wish real estate didn’t require so much management! 😭
If it’s fruitful there’s work involved 😌😌
Graham: interest Rates will never be negative
EU: fool
I'm waiting to close on a house I'm selling. The buyers offered over asking and are paying to have the furnace replaced. Our jaws dropped when they said they would replace the furnace!
Seller market! Timing is everything.
Here in Boise, Idaho, we are in the middle of HUGE housing shortage. Not enough rentals, not enough houses for sale, more and more and more people moving here. I don't think we're at risk of a downturn here. At worst, the prices might stop climbing so fast.
Waiting, waiting, waiting. Some day I’ll be able to buy a house. In the meantime, hoping my stock portfolio growth outpaces real estate market appreciation so I can reach the down payment I need.
Gotta get out of renting and own you’re own residence! Plenty of ways to creatively finance your own residence!
I just bought a condo in Canada and clicked so fast in this video to see if I had made a mistake
Nope!
*Well when prices drop*
We go shopping
YEP!
He pretty much told you prices are not going to drop because 1) low interest rate, 2) low inventory, 3) homeowners have equity so they will sell if needed. Millennials are getting older and they are buying. In addition, a home is more important than ever. RE is not like the stock market. It is stable and over time, it goes up in value.
Lol
Graham some food for thought
, what increases inflation is lending not interest rates. Just check this out: if interest rates are low, retail banks implement tighter lending conditions, higher risk, lower return, less lending.. With less lending the monetary system contracts and this is deflationary not inflationary. On the other hand if interest rates are high, retail banks naturally run more risks because the benefit is higher and this leads to an increase in lending, meaning that the monetary system expands leading to inflation. Thanks for the amazing content.
Looking to buy my first house and someone has FINALLY been able to explain what the heck is going on in the housing market when I thought it would be quite different when I began my search...hardly any houses and they are gone within hours of being posted for sale! I was worried about paying more for a house because of it, but I will revel in the low interest rate I've been approved for!
That’s why keeping all your shares in the real estate sector....😂😂😂, you gotta diversify why not think about it.
I'm starting to!
Graham Stephan so which do you have in mind now???
Rent is too damn high😭😭😭😭😭🚶♂️🚶♂️🚶♂️🚶♂️
Why not go into crypto it’d tend to rise and fall, but still depends on which your investing in whether bitcoin, ethereum or even those little crypto they will tend to have a high a value as the year goes by
Bitcoin has a high rate, unless you talking about trading with it. Like not buying and keeping it in your wallet and waiting for it to inflate...1btc equals about 13,105$...só unless you intend trading with it friend, you can earn from it. Or you got cash to buy in large quantity and sell again
TBH.... Those who are still unemployed are those who probably can't even afford to buy a house right now anyways.
True
I paid off all my debt and saved 7K (3k in the stock market) because im unemployed...covid was a blessing for me
Just like my stocks, I think I'll buy and hold. Especially here in a growing market.
Agreed!
Hey @@GrahamStephan I'm 11 and for last Christmas when I was asked what I wanted I said 100 bucks in the stock market (I get what I make in cash for those wondering)
Dr. Delirious have you made any money
Dr. Delirious that is a good idea
@@muchclutch4906 yeah I'm up 40%
Hey Graham, I am experiencing a very different situation here in Montana. The housing market is BOOMING and people, from the West Coast especially, are buying up homes here, very often not only paying more than the majorly inflated asking prices, but buying sight unseen with NO CONTINGENCIES! It is INSANE! I am in the process of buying the home I have been renting for the past 3 years, mainly because if I don't, I will soon not be able to afford a home in this area. Also, there are hardly ANY RENTALS here available! I mean like zero! So, if I did not buy this house, I really would have no place to live. I would have to move out of state or to Eastern MT, which is not a place I wan't to live. So, this house I am buying is now $80,000 higher than it would have sold for this past January. Thanks for another great video!
I been a realtor for over 53 years and this is disaster on the way.
I had banks accept 30 or 40 % of their mortgage losses just to get out of
properties. My clients were bottomless pockets for deals.
Wow what area are you talking about ?
Thank you for sharing
@@claudiagarciacabrera-prant6251 Big Investors currently are buying by getting bank lists published weekly on foreclosure at their bank which legally has to get their money back if they can.
In both cities South Beach FL> and Houston Galleria I would look at the condo or home or hotel and then offer the bank what I wanted to pay.
Example a 300,000 condo sale price
mortgage 210,000 default
I look at unit see it needs 20,000 update for kitchen 10,000 painting and I then may offer the bank
not the 210 they ask but 120,000.
many times they then say 160,000
I go up to 140 and they agree.
They write loss off in taxes anyway.
This next 6 months should bring so many
that they happy with 35% to 45 % of the price and glad to get out.
ZZEven at 50% you get a great investment.