As a full time RN in Deep South Texas, $10,000 down payment & 25% of my take home pay only affords me a 1 bedroom condo. As much as I would like to just keep it at 25%, it’s very unrealistic right now to get a house with that percentage.
While going with a higher downpayment will lower the monthly mortgage payment a bit, but not significantly enough unless you are talking about a huge downpayment. Currently, it’s a bad idea to do the 15 year mortgage. If you are looking at putting $10k down, you are likely looking at doing a FHA loan, depending on what your income and other debts and payments may be, you could go for the 30 year mortgage. That might be your best bet. But I should say that you will want to go into the mortgage with as little debt as possible.
There is a shortage of starter homes. Go and look and you will find the only thing they are building are the McMansions. Nothing in the $100-250k range is being built right now. Builders make far more profit selling the big homes with the larger price tag.
They can build all these crappy homes they want, nobody is paying 600k for 1000 sq ft that looks identical to your 500 neighbors and are all built with toothpicks and corporate timelines
Yes, we live in the Columbus OH area and new subdivisions are popping up everywhere all the time. But they're at min price of high 300s to mid 400s and they all look the same. My husband is an architect and the stories he tells me, which are common place... the amount of short cuts that are being made to get these houses on the market at lighting speed... it's shocking. I would rather rent and save longer than spend half a million on a cheap/poorly built house! The overwhelming majority are in HOAs which further limits individuality and increases monthly expenses. No thanks.
Don't simply retire from something; have something to retire to. Start saving, keep saving, and stick to investments. Building wealth involves establishing routines, like consistently setting aside funds at regular intervals for smart investments.
Selling a home in my area is generally fast. normally there is a bidding war and the house is under contract in less than 14 days. The 2.5-3% interest rate though is the biggest reason nobody wants to sell. The thing most people don’t realize is that 6.5% is actually close to the average until the Great Recession happened
I liked the way you focused on how the home construction market is not keeping up with demand. The US Congress & State & Local governments could fix this by making it a priority. But it looks like they don't want to! Gee, I wonder if BlackRock type hedge funds have something to do with this? If investors fled the market, we would not see home prices go up as fast. The way to get investors to flee the market is to increase home construction up to robust, healthy levels. I think the takeaway here is that people need to understand that sky-high home & rent prices are the result of policy decisions made by all levels of government. I was a teenager in the 1970's and homes were much more affordable back then. In my home town, the old, Gilded Age mansions were either converted into offices or apartments. Homes were smaller and more functional. There use to be 1200 sq-ft Ranch style homes made on a single 1/10 of an acre lot with no Home Owner's Association. The good old days! And people never realized how good they had it. Homes were looked at as a basic commodity and not investment vehicles. If you want blame, follow the money, the current policy benefits Wall Street Hedge Funds & big Banks at the expense of the average person. After almost 50 years of Neo-Liberal-Reagan-Roll-Back-The-New-Deal policies has led us to the current situation. Average people have been getting attacked on all fronts: Jobs, Housing, Medical & Education costs have all been massively tilted towards Wall Street priorities. Seems like the most radical thing voters have done is vote for Trump--good luck with that! The USA is increasingly a bad place to live and where this all ends is not known by anybody.
How has services like Airbnb and Vrbo affected the housing market? I feel like there are a significant amount of houses being purchased to rent, not for a primary residence.
One thing I find annoying is when older people who bought (or inherited) a house long ago condescend to me anout not owning a house myself. It's a different world.
1) American zoning laws. Most cities where most jobs are have restrictive zoning and land use laws that prohibit building more housing, different types of housing, and housing near jobs and amenities. What started in the early 1900s as “don’t build a coal plant next to a kindergarten” has now become “it’s illegal to build anything other than a cookie cutter plywood house with X parking spots, X square feet of lot size, and X number of feet from the street AND it’s also illegal to build housing near jobs or have proximate access to amenities in and near residential areas.” This creates an artificial restriction on supply and prices increase accordingly. George, you’ve mentioned you and your wife purchased a townhome. Townhomes are illegal to build in most residential areas in most American cities. Starter homes also don’t exist anymore, because zoning makes building expensive and limited, so developers target the higher income segment of the market. 2) Housing treated as an investment security rather than a necessary good. Whether it’s Blackrock or individuals, the housing market is predicated on ever-Inflating prices. People sink their life savings and leverage themselves up to their neck to buy homes so they need prices to inflate over time to make that payoff. This results in people who already own naturally opposing more housing construction since an increase in supply could dampen their own evaluations. A case of “it’s better for other people to be priced out than acknowledge that maybe my home which has tripled in value over the last few years is potentially overvalued and inflated.” 3) Short term rentals. Large chunks of the housing market in desirable places has been converted into Airbnbs and other forms of vacation rentals. This further cuts into the supply driving up costs. Want to start fixing the market? - Reform outdated and restrictive zoning laws. Many of these laws were passed to keep neighbourhoods de facto segregated by making housing more expensive. - Prohibit investment banks from purchasing and holding housing stock. - Regulate short term rentals to ensure they aren’t reducing housing supply for families and people who’d like to live and work in a community.
I find issue with the fact that *most* of new build homes are all 3000+ sf mini mansions that are all 5, 6, 7 even 800 thousand dollars in some areas. The idea of finding that "starter home" is gone now.
The destruction of smaller state banks from the 2008 crash have limited independent developers and builders because the bigger banks don’t want that risk.
No, it’s that large and expensive homes are far more profitable than smaller starter homes so the builders are building the houses they make the most profit on. This is capitalism in action.
@@latimer442 True, but the cure for that is a bigger down payment. It's a lot easier to manage a high interest rate and a low purchase price rather than a high purchase price with a low (or average) interest rate.
This is a thought-provoking video! The insights are really eye-opening. It’s crucial to stay informed about these changes, especially with how they impact so many lives. Thanks for breaking it down!
One of the other problems with new build homes are they are garbage. All the materials used are so cheap & it's built so quickly & just not good. My friend bought a new built to own home & the builder didn't even want to out moulding in the closets because "nobody is going to see it anyway" 🤦♀️🤦♀️🤦♀️ but still want you to pay 500k for it
You realize that housing will never be cheap again. We don't have the supply, labor, technical skills or political will to overcome that level of deficiency. We are also building the wrong kind of homes. High density, when people want houses. This increases house prices.
The old rules for home buying no longer work for the average American. It may be up to parents to pay off their homes and pass it to their kids in order for them to own homes.
You're actually 100% correct. If you don't insulate your money intergenerationally now in America your family will become peasants. Hopefully your family isn't a bunch of self centered boomers. 😊
McMansions are too big. Americans do not have enough roomates or children to use all those rooms. How many remote offices, garages and man caves do you need? If you want to save money buy tiny, go multigenerational or get roomates.
With all the fires in the California.. I wish some could explain what’s going on home insurance.. it’s a rabbit hole and no one answers the ?????s what how and why …all this happens and what dose this means to us … a vd on this would be great 👍..
I got completely debt free except for my house last year. I just saw my 1098 for my house from last year, $16K+ paid in interest. My new goal is to put $60K a year towards the principal and have it paid off by Jan 2029. 24 years early.
A key factor often overlooked is that over 25% of new homes are being acquired by investors, rather than individuals seeking primary residences. Even if Baby Boomers decide to offload their properties or more housing stock enters the market, it won’t alleviate the underlying issue. Wealthy investors will continue to absorb the available inventory, which will keep home prices elevated.
There's also a lack of discussion about the role that major financial institutions-banks, private equity firms, and giants like BlackRock-played by purchasing properties post-2008, treating them as investment assets. It's impossible to fully understand the current housing crisis without acknowledging this trend. Additionally, larger luxury properties are inherently more profitable than smaller, more affordable homes, leading developers to prioritize luxury developments for higher returns.
While I anticipate a future decrease in home prices, I currently recommend diversifying investments away from real estate. Shifting capital into the financial markets or commodities like gold is a safer bet given the current high mortgage rates, recession indicators, and tightened lending standards. Housing prices might need to correct by 40-50% before the market stabilizes. In uncertain times like these, getting independent financial advice from a market-savvy expert is essential.
I consistently recommend Rebecca Lynne Buie as my top choice. She is well-known for her expertise in financial markets and has an impressive track record. I highly endorse her services.
Thank you for sharing your thoughts. I’m glad to have been of help, and I hope you find Rebecca Lynne Buie’s expertise valuable. Investing is a passion of mine as well, and I wish you success in safeguarding and growing your portfolio. God's blessings to you!
I've been an investor in Apple, gold, housing market as well because I strongly believe in them, I've always believed in the stock but now I don't know if to re-distribute my portfolio and put some money in Nvidia or Tesla especially now that we are experiencing a market correction
Both stocks have a long term potential, The most important thing is the ratio of the distribution based on the financials of each company. There are many other companies that are also doing well. You could just hire a financial advisor to guide you. A financial advisor really does help me do the distribution even between different asset classes. I don't even understand technical financial terms much. I just know I make really good profit, and I don't have to stress myself a lot
I've got similar problems and I have also considered using an FA but I don't know how to go about it. Please, what are the steps for getting one? Like a really good one
Why would I give up my 3.1% interest rate? The houses available are insanely expensive dumps that haven't had any work done in 20 years. I'd pay $600 more if I had today's rate on the same house.
How is anyone supposed to buy a home with 20% down & 25% of after tax on a 15-year when the average home price is 6-8x average annual income and rent is high
You have to live somewhere super cheap and/or make a lot of money. Which is easier said than done. Cheap areas tend to be cheap because they are not a good area economically or emotionally for most people to reside. Overall, it’s best to ditch the Ramsey home buying advice in today’s market if it’s absurd and focus on other plans that are feasible. House hacking a great option to consider to raise your income. Especially if you have someone who can co-sign to permit you to qualify for a large home or multi family property which is ideal for house hacking. A 30 year fixed rate isn’t the end of the world if you can’t quality or keeping housing at a controllable percentage of your income on a 15 year fixed. It’s possible later to refinance to a 15 year fixed instead, or just make extra payments towards the principal. You want to invest 15% or more in stocks as a first priority over paying off a home fast. It’s also not the worst idea in many places to rent and invest even more aggressively and plan to buy a home with cash at 59.5 years old when you can withdraw retirement money tax free. It is smart to put a good down payment around 20% or more, avoid an adjustable rate, and keep your housing costs at under 35% and preferably under 30%. Remember that housing isn’t just the mortgage. Add 25%-50% extra to the mortgage to get a more accurate idea of the true cost of ownership.
You don't even need to invest the difference. You just need a managable monthy house payment and you can still invest some, spend 30 years paying off your house, and retire comfortably.
Congratulations on hitting the 200k milestone! That's an incredible growth from 14k in just a few months - what strategies or investments did you implement to achieve this remarkable success?
Hello, how did you achieve such biweekly returns? I'm a newbie and I've lost a lot of money investing on my own. Please how do I go about it, the year is almost coming to an end, how can I make profit?
As a beginner, it is essential that you have a mentor to help you stay accountable. In my case, Elizabeth Marie Hawley has guided me for months and I highly recommend her. I focus on her. To be honest, I'm almost hesitant to let someone take charge of growing my finances, but I'm so glad I did.
I'm desperate to turn my finances around. I've been working three jobs just to pay off debt. Can someone please share contact or information? I need her help.🙏
Just signed a lease on a new place that’s about 1k less than the mortgage for the same units would be. Still expensive (still with Dave’s guide lines for my income) but if I invest the difference I don’t see how it’s a bad decision. Just rent it’s not the end of the world. I can’t see anything changing in the future my plan is to stock up money until I can move somewhere cheaper and buy a house in cash when I can in the middle of nowhere. I don’t see the benefit of buying a home now you will have to significantly sacrifice you quality of life to make it work, (if you don’t already have massive equity in a home already, or make a .05% income).
The investor problem is the key issue. There are several options to fix this - one would be limiting 1031 sales for tax payers to one transaction every 5-10 years.
At some point you gotta admit your guys old antiquated rules for mortgages are out of touch with the times. George until you guys can change your stance on 15 year mortgages, you’re going to be encouraging people to take on higher monthly debt payments which is much more dangerous than a 30 year mortgage. Until you guys change your stance you’re just flat out not experts. Get a 30 year mortgage that’s under 25% of your net monthly income is the answer. I mean at a minimum you can get a 30 year and encourage people to pay it off early. That’s clearly the smarter play.
Careful, George. Papa Dave isn’t going to like you telling the truth about home prices, which really shows how out of touch his 20% down, 25% of income for a fixed rate 15-year mortgage is.
We've been trying to buy in a Midwest city suburb for 8 months. The only way to win a decent home is to waive inspections and pay at least 20k over list. It's insane. Oh and there's no way you can do a contingent on the sale of your house offer.
fear a housing crash due to people buying homes above asking prices with little equity. If prices drop, affordability and potential foreclosures may arise, worsened by future layoffs and rising living costs. I want to invest more than $300k, but I'm not sure on how to mitigate risk.
Consider recommendation from real estate to other reliable investments like stock, crypto or precious metals . Severe recessions offer market buying opportunities with caution, as volatility can yield short-term trading prospects. Not financial advice, but it may be wise to invest, as cash isn't ideal in this period.
It's often true that people underestimate the importance of financial advisors until they feel the negative effects of emotional decision-making. I remember a few summers ago, after a tough divorce, when I needed a boost for my struggling business. I researched and found a licensed advisor who diligently helped grow my reserves despite inflation. Consequently, my reserves increased from $275k to around $750k.
this is definitely considerable! think you could suggest any professional/advisors i can get on the phone with? i'm in dire need of proper portfolio allocation
Well, there are a few out there who know what they are doing. I tried a few in the past years, but I’ve been with “Jessica Dawn Walters” for the last five years or so, and her returns have been pretty much amazing.
Thanks for sharing, 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 e-mail shortly.
As an investment enthusiast, I often wonder how top-level investors are able to become millionaires through investing. I have a significant amount of capital to start with, but I'm unsure about the strategies and direct I should take to help me generate substantial profits like some people are this season.
I’m not in a position to offer financial advice, but given the significant amount of capital you're working with, it would be wise to consult a financial advisor who can guide you in developing a strategy tailored to your goals and risk tolerance.
I'd dump everything you can into the S&P 500. Sit and wait for a couple decades and you're in the millions. There's no quick way to wealth like that, especially from investing. It's a long game.
Yea its hard to watch all the Ramsey crew dig their heels deep in to the whole 25% of your take home pay notion... I am a mechanical engineer, I would have to save up $100,000 (which would take a long time while I am wasting time paying rent) to then put a 50% deposit down on a $200,000 house (basically nonexistent where I live, unless I buy something with potential for major issues) in order to stay under 25% of my take home on a 15 year. Is it really the best approach to wait 5-6 years to buy until I have $100,000 saved? By then I will have sank another 100k in rent, plus, the $200,000 house will now be 250k... I know you have to maintain a brand and this is a "proven strategy" but I'm having a hard time seeing how this is a better idea than just buying sooner and getting a 30 year that is actually livable (275K) and is more like 35% of take home.
Same, I met Elizabeth stark last year for the first time at a conference in Wilshire, after then my Life has changed for good.God bless Elizabeth stark
As an investment enthusiast, I often wonder how top-level investors are able to become millionaires through investing. I have a significant amount of capital to start with, but I'm unsure about the strategies and direct I should take to help me generate substantial profits like some people are this season.
I’m not in a position to offer financial advice, but given the significant amount of capital you're working with, it would be wise to consult a financial advisor who can guide you in developing a strategy tailored to your goals and risk tolerance.
As an investment enthusiast, I often wonder how top-level investors are able to become millionaires through investing. I have a significant amount of capital to start with, but I'm unsure about the strategies and direction I should take to help me generate substantial profits like some people are this season.
I’m not in a position to offer financial advice, but given the significant amount of capital you're working with, it would be wise to consult a financial advisor who can guide you in developing a strategy tailored to your goals and risk tolerance.
The truth is, the role of an investment advisor can often be overlooked but should never be underestimated. After facing a significant portfolio loss in 2020 during the COVID pandemic while trying to manage my investments on my own, I decided to reach out to an investment advisor. At that time, I had about $126K left in my portfolio. Now, without having to lift a finger, I'm semi-retired, working only 7.5 hours a week, and I'm just 15% short of my $1 million retirement goal thanks to my subsequent investments.
My CFA is ASHLEY GARNER ABBOTT, a renowned figure in her line of work. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market. To be honest, I almost didn't buy the idea of letting someone handle growing my finance, but so glad I did
Thank you so much for the suggestion! I really needed it. I looked her up on Google and explored her website; she has an impressive background in investments. I've sent her an email, and I hope to hear back from her soon!
As a full time RN in Deep South Texas,
$10,000 down payment & 25% of my take home pay only affords me a 1 bedroom condo.
As much as I would like to just keep it at 25%, it’s very unrealistic right now to get a house with that percentage.
The Ramsey guide for home buying is unrealistic
Put more down then $10,000 maybe?
While going with a higher downpayment will lower the monthly mortgage payment a bit, but not significantly enough unless you are talking about a huge downpayment. Currently, it’s a bad idea to do the 15 year mortgage. If you are looking at putting $10k down, you are likely looking at doing a FHA loan, depending on what your income and other debts and payments may be, you could go for the 30 year mortgage. That might be your best bet.
But I should say that you will want to go into the mortgage with as little debt as possible.
Before navigating the housing market, we need to navigate the spam/scams in the comments section lol
Blackrock, Vanguard, StateStreet liked this video.
Voo and chill
There is no shortage of new build homes. There is a shortage of new build homes not being gobbled up by conglomerates wanting to rent them out.
The builders are definitely sandbagging. Why build more when they control the supply which controls the prices they can sell them for?
@@Chad-qe6yvyou mean that the free market isn't solving all problems.😮
@@admiralmurat2777 it's only a problem to the people that don't want to work harder to get a house.
There is a shortage of starter homes. Go and look and you will find the only thing they are building are the McMansions. Nothing in the $100-250k range is being built right now. Builders make far more profit selling the big homes with the larger price tag.
I will ALWAYS listen to Bon Iver in a dimly lit corner 😂 Bring on “Perth” and “Holocene”
They can build all these crappy homes they want, nobody is paying 600k for 1000 sq ft that looks identical to your 500 neighbors and are all built with toothpicks and corporate timelines
Yes, we live in the Columbus OH area and new subdivisions are popping up everywhere all the time. But they're at min price of high 300s to mid 400s and they all look the same. My husband is an architect and the stories he tells me, which are common place... the amount of short cuts that are being made to get these houses on the market at lighting speed... it's shocking. I would rather rent and save longer than spend half a million on a cheap/poorly built house! The overwhelming majority are in HOAs which further limits individuality and increases monthly expenses. No thanks.
Don't simply retire from something; have something to retire to. Start saving, keep saving, and stick to investments.
Building wealth involves establishing routines, like consistently setting aside funds at regular intervals for smart investments.
Selling a home in my area is generally fast. normally there is a bidding war and the house is under contract in less than 14 days.
The 2.5-3% interest rate though is the biggest reason nobody wants to sell. The thing most people don’t realize is that 6.5% is actually close to the average until the Great Recession happened
Hmm. “Moving up” in a realistic fashion would double my mortgage payment. I’ve done the math. It sucks and I won’t sell unless I have to. Sad.
I liked the way you focused on how the home construction market is not keeping up with demand. The US Congress & State & Local governments could fix this by making it a priority. But it looks like they don't want to! Gee, I wonder if BlackRock type hedge funds have something to do with this? If investors fled the market, we would not see home prices go up as fast. The way to get investors to flee the market is to increase home construction up to robust, healthy levels. I think the takeaway here is that people need to understand that sky-high home & rent prices are the result of policy decisions made by all levels of government.
I was a teenager in the 1970's and homes were much more affordable back then. In my home town, the old, Gilded Age mansions were either converted into offices or apartments. Homes were smaller and more functional. There use to be 1200 sq-ft Ranch style homes made on a single 1/10 of an acre lot with no Home Owner's Association. The good old days! And people never realized how good they had it. Homes were looked at as a basic commodity and not investment vehicles.
If you want blame, follow the money, the current policy benefits Wall Street Hedge Funds & big Banks at the expense of the average person. After almost 50 years of Neo-Liberal-Reagan-Roll-Back-The-New-Deal policies has led us to the current situation. Average people have been getting attacked on all fronts: Jobs, Housing, Medical & Education costs have all been massively tilted towards Wall Street priorities. Seems like the most radical thing voters have done is vote for Trump--good luck with that! The USA is increasingly a bad place to live and where this all ends is not known by anybody.
How has services like Airbnb and Vrbo affected the housing market? I feel like there are a significant amount of houses being purchased to rent, not for a primary residence.
Rates are back over 7%.
One thing I find annoying is when older people who bought (or inherited) a house long ago condescend to me anout not owning a house myself. It's a different world.
Work harder
If you didn't buy so much starbucks, maybe you could buy a house
10 years from now all those boomers will be in retirement homes and the market will be flooded. Houses will be cheap.
@@thisisfun887 o, their kids will have the homes and will be renting those houses.
“Interest rates were 20% when I first bought my house”
Yeah and you bought the house for $30k
1) American zoning laws. Most cities where most jobs are have restrictive zoning and land use laws that prohibit building more housing, different types of housing, and housing near jobs and amenities. What started in the early 1900s as “don’t build a coal plant next to a kindergarten” has now become “it’s illegal to build anything other than a cookie cutter plywood house with X parking spots, X square feet of lot size, and X number of feet from the street AND it’s also illegal to build housing near jobs or have proximate access to amenities in and near residential areas.” This creates an artificial restriction on supply and prices increase accordingly.
George, you’ve mentioned you and your wife purchased a townhome. Townhomes are illegal to build in most residential areas in most American cities. Starter homes also don’t exist anymore, because zoning makes building expensive and limited, so developers target the higher income segment of the market.
2) Housing treated as an investment security rather than a necessary good. Whether it’s Blackrock or individuals, the housing market is predicated on ever-Inflating prices. People sink their life savings and leverage themselves up to their neck to buy homes so they need prices to inflate over time to make that payoff. This results in people who already own naturally opposing more housing construction since an increase in supply could dampen their own evaluations. A case of “it’s better for other people to be priced out than acknowledge that maybe my home which has tripled in value over the last few years is potentially overvalued and inflated.”
3) Short term rentals. Large chunks of the housing market in desirable places has been converted into Airbnbs and other forms of vacation rentals. This further cuts into the supply driving up costs.
Want to start fixing the market?
- Reform outdated and restrictive zoning laws. Many of these laws were passed to keep neighbourhoods de facto segregated by making housing more expensive.
- Prohibit investment banks from purchasing and holding housing stock.
- Regulate short term rentals to ensure they aren’t reducing housing supply for families and people who’d like to live and work in a community.
I find issue with the fact that *most* of new build homes are all 3000+ sf mini mansions that are all 5, 6, 7 even 800 thousand dollars in some areas. The idea of finding that "starter home" is gone now.
That roast about being enough lol. Yes! Stop bragging about it you are enough lol
The destruction of smaller state banks from the 2008 crash have limited independent developers and builders because the bigger banks don’t want that risk.
No, it’s that large and expensive homes are far more profitable than smaller starter homes so the builders are building the houses they make the most profit on. This is capitalism in action.
I think it was in the early 80s, we had a 16% mortgage.
16% on a 150k house is cute
@@aadarshviswanathan2825 Depends on where you live, I guess. 16% on 150k is more than my current mortgage payment.
@@aadarshviswanathan2825 that's equal to 380k today. What is your point? 16% today on a 380k house would be wild. That's the equivalent.
@@latimer442 can remember the exact amount, but I think the loan was in excess of 200k. The builder did do a 3,2,1 buy down.
@@latimer442 True, but the cure for that is a bigger down payment. It's a lot easier to manage a high interest rate and a low purchase price rather than a high purchase price with a low (or average) interest rate.
This is a thought-provoking video! The insights are really eye-opening. It’s crucial to stay informed about these changes, especially with how they impact so many lives. Thanks for breaking it down!
Just watched your video,What’s the main objective behind your efforts, and are there any unique projects shaping the future?
Is this platform as groundbreaking for remote work as it claims to be, or is it too good to be true?
Just read they are remote company hiring laborers and office workers. They offer unrefined oil at great prices while focusing on quality
One of the other problems with new build homes are they are garbage. All the materials used are so cheap & it's built so quickly & just not good. My friend bought a new built to own home & the builder didn't even want to out moulding in the closets because "nobody is going to see it anyway" 🤦♀️🤦♀️🤦♀️ but still want you to pay 500k for it
Nice work Kamel toe
You realize that housing will never be cheap again. We don't have the supply, labor, technical skills or political will to overcome that level of deficiency. We are also building the wrong kind of homes. High density, when people want houses. This increases house prices.
The old rules for home buying no longer work for the average American. It may be up to parents to pay off their homes and pass it to their kids in order for them to own homes.
You're actually 100% correct. If you don't insulate your money intergenerationally now in America your family will become peasants. Hopefully your family isn't a bunch of self centered boomers. 😊
McMansions are too big. Americans do not have enough roomates or children to use all those rooms. How many remote offices, garages and man caves do you need? If you want to save money buy tiny, go multigenerational or get roomates.
Good Video
I’m at 5.75% on my home. I’m not selling for a while.
With all the fires in the California.. I wish some could explain what’s going on home insurance.. it’s a rabbit hole and no one answers the ?????s what how and why …all this happens and what dose this means to us … a vd on this would be great 👍..
Great video George! The housing market is so crazy now. Thanks for bringing some insight to the situation!
I got completely debt free except for my house last year. I just saw my 1098 for my house from last year, $16K+ paid in interest. My new goal is to put $60K a year towards the principal and have it paid off by Jan 2029. 24 years early.
Damn you're balling great job. How much are you doing to investments during this phase?
@ Thank you. I’m not investing in anything at this time, except for the house. I just have a good income at the moment.
A key factor often overlooked is that over 25% of new homes are being acquired by investors, rather than individuals seeking primary residences. Even if Baby Boomers decide to offload their properties or more housing stock enters the market, it won’t alleviate the underlying issue. Wealthy investors will continue to absorb the available inventory, which will keep home prices elevated.
There's also a lack of discussion about the role that major financial institutions-banks, private equity firms, and giants like BlackRock-played by purchasing properties post-2008, treating them as investment assets. It's impossible to fully understand the current housing crisis without acknowledging this trend. Additionally, larger luxury properties are inherently more profitable than smaller, more affordable homes, leading developers to prioritize luxury developments for higher returns.
While I anticipate a future decrease in home prices, I currently recommend diversifying investments away from real estate. Shifting capital into the financial markets or commodities like gold is a safer bet given the current high mortgage rates, recession indicators, and tightened lending standards. Housing prices might need to correct by 40-50% before the market stabilizes. In uncertain times like these, getting independent financial advice from a market-savvy expert is essential.
How can I find a trusted financial planner like yours?
I consistently recommend Rebecca Lynne Buie as my top choice. She is well-known for her expertise in financial markets and has an impressive track record. I highly endorse her services.
Thank you for sharing your thoughts. I’m glad to have been of help, and I hope you find Rebecca Lynne Buie’s expertise valuable. Investing is a passion of mine as well, and I wish you success in safeguarding and growing your portfolio. God's blessings to you!
7% of 250k is way different than 7% of 450k so it’s not the same 7% today as it was 20years ago..
Is building a house smart? if it is still within dave ramseys rules.
Problem No 5: Razing mega cities
And bread was 5 cents 100 years ago.
I've been an investor in Apple, gold, housing market as well because I strongly believe in them, I've always believed in the stock but now I don't know if to re-distribute my portfolio and put some money in Nvidia or Tesla especially now that we are experiencing a market correction
Both stocks have a long term potential, The most important thing is the ratio of the distribution based on the financials of each company. There are many other companies that are also doing well. You could just hire a financial advisor to guide you. A financial advisor really does help me do the distribution even between different asset classes. I don't even understand technical financial terms much. I just know I make really good profit, and I don't have to stress myself a lot
I've got similar problems and I have also considered using an FA but I don't know how to go about it. Please, what are the steps for getting one? Like a really good one
My financial adviser is Gabriel Alberto William , he is not just a broker, he is a financial adviser that gives advice on any financial matters
I just google the name and found his website and I'm really impressed with his credentials; I have set up an appointment with him
Why would I give up my 3.1% interest rate? The houses available are insanely expensive dumps that haven't had any work done in 20 years.
I'd pay $600 more if I had today's rate on the same house.
100% 🎉
If you aint buy before summer of 2022. You're cooked 99% of the time.
It's funny how broken down, tiny, trashy houses in bad Los Angeles neighborhoods with vandalism everwhere are on market for a million dollars 😂
How is anyone supposed to buy a home with 20% down & 25% of after tax on a 15-year when the average home price is 6-8x average annual income and rent is high
The Dave Ramsey tree is delusional when it comes to everyday citizens.
The Ramsey guide for home buying is unrealistic
Just get a side hustle bro ! 😂
@@rodneyarceneaux116 “just work more”
You have to live somewhere super cheap and/or make a lot of money. Which is easier said than done. Cheap areas tend to be cheap because they are not a good area economically or emotionally for most people to reside.
Overall, it’s best to ditch the Ramsey home buying advice in today’s market if it’s absurd and focus on other plans that are feasible. House hacking a great option to consider to raise your income. Especially if you have someone who can co-sign to permit you to qualify for a large home or multi family property which is ideal for house hacking. A 30 year fixed rate isn’t the end of the world if you can’t quality or keeping housing at a controllable percentage of your income on a 15 year fixed. It’s possible later to refinance to a 15 year fixed instead, or just make extra payments towards the principal. You want to invest 15% or more in stocks as a first priority over paying off a home fast.
It’s also not the worst idea in many places to rent and invest even more aggressively and plan to buy a home with cash at 59.5 years old when you can withdraw retirement money tax free.
It is smart to put a good down payment around 20% or more, avoid an adjustable rate, and keep your housing costs at under 35% and preferably under 30%. Remember that housing isn’t just the mortgage. Add 25%-50% extra to the mortgage to get a more accurate idea of the true cost of ownership.
Go 30 year and invest the difference. Forcing a 15 year is absolutely batshit
To each his own, that's what I'll do, but I understand why they recommend 15 to force the payoff
You don't even need to invest the difference. You just need a managable monthy house payment and you can still invest some, spend 30 years paying off your house, and retire comfortably.
Hit 200k today. I'm really grateful for all the knowledge and nuggets you had thrown my way over the last months. Started with 14k in June 2024
Congratulations on hitting the 200k milestone! That's an incredible growth from 14k in just a few months - what strategies or investments did you implement to achieve this remarkable success?
Hello, how did you achieve such biweekly returns? I'm a newbie and I've lost a lot of money investing on my own. Please how do I go about it, the year is almost coming to an end, how can I make profit?
As a beginner, it is essential that you have a mentor to help you stay accountable. In my case, Elizabeth Marie Hawley has guided me for months and I highly recommend her. I focus on her. To be honest, I'm almost hesitant to let someone take charge of growing my finances, but I'm so glad I did.
I'm desperate to turn my finances around. I've been working three jobs just to pay off debt. Can someone please share contact or information? I need her help.🙏
I'm also interested in learning more about Elizabeth's services. Can you share more about your experience?"
When is grandpa not flirting with the free sample lady 😂
lololol 25%
Just signed a lease on a new place that’s about 1k less than the mortgage for the same units would be. Still expensive (still with Dave’s guide lines for my income) but if I invest the difference I don’t see how it’s a bad decision. Just rent it’s not the end of the world. I can’t see anything changing in the future my plan is to stock up money until I can move somewhere cheaper and buy a house in cash when I can in the middle of nowhere. I don’t see the benefit of buying a home now you will have to significantly sacrifice you quality of life to make it work, (if you don’t already have massive equity in a home already, or make a .05% income).
The investor problem is the key issue. There are several options to fix this - one would be limiting 1031 sales for tax payers to one transaction every 5-10 years.
At some point you gotta admit your guys old antiquated rules for mortgages are out of touch with the times. George until you guys can change your stance on 15 year mortgages, you’re going to be encouraging people to take on higher monthly debt payments which is much more dangerous than a 30 year mortgage. Until you guys change your stance you’re just flat out not experts. Get a 30 year mortgage that’s under 25% of your net monthly income is the answer. I mean at a minimum you can get a 30 year and encourage people to pay it off early. That’s clearly the smarter play.
This is why a lot of people are building tiny homes instead 😶
I'm favoured, $33K every week! I can now give back to the locals in my community and also support God's work and the church. God bless America.
As a beginner what do I need to do? How can I invest, on which platform? If you know any please share.
Wow that's huge, how do you earn that much?
I'm 37 years old and I've been looking for ways to be successful, please how??
Yeah, 253k from Jessica Ramos, looking up to acquire a new House, blessings??
I thank Jessica Ramos who has always been there to help me with detailed analysis and recommendations that I would not have had access to otherwise.
I started my trade int with $5000, and in the space of one month I got credited with $22,000.
It remains my biggest win for the year 2024
Careful, George. Papa Dave isn’t going to like you telling the truth about home prices, which really shows how out of touch his 20% down, 25% of income for a fixed rate 15-year mortgage is.
Binance infinity ETH bug right now
I just made a video to show that\
We've been trying to buy in a Midwest city suburb for 8 months. The only way to win a decent home is to waive inspections and pay at least 20k over list. It's insane. Oh and there's no way you can do a contingent on the sale of your house offer.
The left.
I hope laws are passed to keep institutional investors out of single family homes. That is a killer.
Complaining about monopolies and big investors buying what they want. Since when did Ramsey become a communist company 🤣🤣🤣
I make $115,000k a year and Ramsey says I can only afford a $174,000 house lmaooooooooooo
What if its less than 2.5%?
As always, your mortgage advice sucks, George.
fear a housing crash due to people buying homes above asking prices with little equity. If prices drop, affordability and potential foreclosures may arise, worsened by future layoffs and rising living costs. I want to invest more than $300k, but I'm not sure on how to mitigate risk.
Consider recommendation from real estate to other reliable investments like stock, crypto or precious metals . Severe recessions offer market buying opportunities with caution, as volatility can yield short-term trading prospects. Not financial advice, but it may be wise to invest, as cash isn't ideal in this period.
It's often true that people underestimate the importance of financial advisors until they feel the negative effects of emotional decision-making. I remember a few summers ago, after a tough divorce, when I needed a boost for my struggling business. I researched and found a licensed advisor who diligently helped grow my reserves despite inflation. Consequently, my reserves increased from $275k to around $750k.
this is definitely considerable! think you could suggest any professional/advisors i can get on the phone with? i'm in dire need of proper portfolio allocation
Well, there are a few out there who know what they are doing. I tried a few in the past years, but I’ve been with “Jessica Dawn Walters” for the last five years or so, and her returns have been pretty much amazing.
Thanks for sharing, 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 e-mail shortly.
As an investment enthusiast, I often wonder how top-level investors are able to become millionaires through investing. I have a significant amount of capital to start with, but I'm unsure about the strategies and direct I should take to help me generate substantial profits like some people are this season.
I’m not in a position to offer financial advice, but given the significant amount of capital you're working with, it would be wise to consult a financial advisor who can guide you in developing a strategy tailored to your goals and risk tolerance.
I'd dump everything you can into the S&P 500. Sit and wait for a couple decades and you're in the millions. There's no quick way to wealth like that, especially from investing. It's a long game.
Very informative, but George is just not funny. At least half of the attempts at humor are cringe.
Yea its hard to watch all the Ramsey crew dig their heels deep in to the whole 25% of your take home pay notion... I am a mechanical engineer, I would have to save up $100,000 (which would take a long time while I am wasting time paying rent) to then put a 50% deposit down on a $200,000 house (basically nonexistent where I live, unless I buy something with potential for major issues) in order to stay under 25% of my take home on a 15 year.
Is it really the best approach to wait 5-6 years to buy until I have $100,000 saved? By then I will have sank another 100k in rent, plus, the $200,000 house will now be 250k...
I know you have to maintain a brand and this is a "proven strategy" but I'm having a hard time seeing how this is a better idea than just buying sooner and getting a 30 year that is actually livable (275K) and is more like 35% of take home.
Get a roommate
Thank you Lord Jesus for the gift of life and blessings to me and my family $14,120.47 weekly profit Our lord Jesus have lifted up my Life!!!🙏❤️❤️
I'm 37 and have been looking for ways to be successful, please how??
Sure, the investment-advisor that guides me is..
Elizabeth stark
Same, I met Elizabeth stark last year for the first time at a conference in Wilshire, after then my Life has changed for good.God bless Elizabeth stark
Her services is the best, I got a brand new Lambo last week and paid off my mortgage loan thanks to her wonderful services!
Your videos always lift my spirits and make me smile. Thank you for your ability to share positivity and joy!🛞🦮🐼
Ye I had a 15% mortgage 40 years ago yea Jim you had 15% on a 100k house…
Now lets adjust wages properly for inflation. You had it better off back then.
Is there a Video on how math on 15 year mortage vs 30 year and investing is better?
10:38 I’d rather be crazy than lazy! Keep spreading the good word George 🫡
Keep surprising us with your wonderful ideas. Your videos are a real inspiration.🦮🎃⛱
As an investment enthusiast, I often wonder how top-level investors are able to become millionaires through investing. I have a significant amount of capital to start with, but I'm unsure about the strategies and direct I should take to help me generate substantial profits like some people are this season.
I’m not in a position to offer financial advice, but given the significant amount of capital you're working with, it would be wise to consult a financial advisor who can guide you in developing a strategy tailored to your goals and risk tolerance.
As an investment enthusiast, I often wonder how top-level investors are able to become millionaires through investing. I have a significant amount of capital to start with, but I'm unsure about the strategies and direction I should take to help me generate substantial profits like some people are this season.
I’m not in a position to offer financial advice, but given the significant amount of capital you're working with, it would be wise to consult a financial advisor who can guide you in developing a strategy tailored to your goals and risk tolerance.
The truth is, the role of an investment advisor can often be overlooked but should never be underestimated. After facing a significant portfolio loss in 2020 during the COVID pandemic while trying to manage my investments on my own, I decided to reach out to an investment advisor. At that time, I had about $126K left in my portfolio. Now, without having to lift a finger, I'm semi-retired, working only 7.5 hours a week, and I'm just 15% short of my $1 million retirement goal thanks to my subsequent investments.
This is incredible. Could you recommend who you work with? I really could use some help at this moment.
My CFA is ASHLEY GARNER ABBOTT, a renowned figure in her line of work. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market. To be honest, I almost didn't buy the idea of letting someone handle growing my finance, but so glad I did
Thank you so much for the suggestion! I really needed it. I looked her up on Google and explored her website; she has an impressive background in investments. I've sent her an email, and I hope to hear back from her soon!